New Mortgage Launch: AM Rental Coverage Plus

New Mortgage Launch - International Mortgage

We absolutely LOVE the unique advantages the U.S. mortgage market has to offer over any other country. However, we get even more excited when we launch a new mortgage loan program such as the AM Rental Coverage Plus! 

As a company, we focus on providing our foreign national and U.S. expat clients with the most comprehensive mortgage programs available. America Mortgages wants to be your long-term partner on your real estate investment journey. Whether you’re looking to refinance an existing U.S. property or build a real estate portfolio for retirement or legacy, we are with you every step of the way. 

Before introducing AM Rental Coverage Plus, let’s break down the advantages America Mortgages currently offers to their clients;

  • No age restrictions on loan tenure: Maximize your yield potential with 30–40-year amortization. Regardless of whether you are 19 or 99, you can qualify for the longest tenure possible. (This is a U.S. government anti-discrimination policy)

  • No limit on the number of properties owned with maximum LTV financing: We understand building a real estate portfolio requires leverage. America Mortgages’ loan programs allow you to obtain the maximum LTV available regardless of the number of properties owned.

  • 40-year loan program with 10-year fixed interest only: America Mortgages features a 40-year amortization on many of our loans. The 10-year interest-only option is a fantastic way to lock in a long-term fixed rate with the flexibility to keep it for 40-years without seeing any adjustment in rate. Rates go up, your payment remains the same. Rates go down; refinance into a lower rate or stay with the comfortable payment you have locked in. It’s that flexible!

  • Refinance when rates go down: When rates decrease, your America Mortgages loan officer will analyze the lower rate options and present a clear and concise proposal that shows a breakeven point for any costs incurred in the refinance. 

  • Loan programs in all 50 U.S. states: Our loan programs are available in every city and state. Want to buy a condo on the beach in Waikiki, Hawaii, or refinance a single-family home in Houston, Texas — We have loan programs.

  • No U.S. credit required: Our loan programs do not require the borrower to have U.S. credit. We’re able to use your home country credit if available. If you don’t have a credit reporting agency in your home country, no problem – speak with one of our U.S. loan officers for an exception. We do it all the time.

  • U.S. expat loans with no W2 and foreign earned income: Are you a U.S. expat and feeling the frustration of no W2 or foreign earned income? These are not problems for America Mortgages. For U.S. expats, we make it as easy as if you were living and working in the U.S. and walking into your local bank. There is no premium in pricing, and it’s truly that easy.

  • Free pre-approval letters in 72 hours: The first thing we recommend for anyone looking to purchase a property is to get pre-approved. This is for a couple of reasons: 1) You should fully understand and be comfortable with the mortgage loan term and tenure you’re obtaining 2) You will need a pre-approval rate before any offer on U.S. property will be taken seriously. Don’t have a realtor? No problem: our comprehensive and complimentary realtor referral program can place you with a vetted and qualified realtor all around the U.S.

Now to the exciting part…AM Rental Coverage Plus!

America Mortgages has common sense underwriting loan programs, including loan programs that allow our clients to qualify only on the rental income of the property and not personal income. This is how commercial cash-flowing mortgages have been underwritten for years, and it makes perfect sense. The property is being purchased as an investment, and the rent from this investment will be used to pay the monthly mortgage debt. The standard ratio has been 1:1. This means if the rental income is sufficient to cover the mortgage payment, taxes, and insurance on a one-to-one basis, the loan qualifies. This is fantastic. However, this doesn’t take into consideration that mortgage rates tend to be fixed, and rental rates increase. Until now …

Introducing AM Rental Coverage Plus, which allows you to qualify on a 0.75:1 ratio. In simple terms, as long as the rent covers 75% of the mortgage payment, taxes, and insurance, the loan qualifies. It just makes sense!

Here's a simple example:

Rent: $750/month

Mortgage payment (tax, insurance) $1,000/month

Ratio: .75:1 (75% rental coverage)

Approved: YES!

For more information on the AM Rental Coverage Plus loan program, as well as our other America Mortgages loan programs, please email [email protected] or schedule an appointment to speak with one of our U.S. loan officers today.

America Mortgages only works with foreign nationals and U.S. expat investors; this is all we do, and no one does it better. Whether you're a seasoned investor or just starting to build your portfolio, our loan programs open doors previously closed to many. Seize this opportunity and discover how America Mortgages can be your steadfast partner in realizing your real estate dreams. Contact us today to learn more and embark on your journey to financial success.

Top 5 U.S. Record-Smashing Luxury Home Sales of 2023

Despite the overall decline in home sales in 2023 due to increased interest rates, high-net-worth U.S. real estate investors remained active in the luxury market. In the third quarter of 2023, the luxury market outpaced the mainstream market, growing three times faster. According to Jason Aleem, Redfin's Senior Vice President of Real Estate Operations, paying cash “helped wealthy buyers weather the storm of high mortgage rates.” A recent Redfin report noted that 42.5% of luxury homes sold in the third quarter of 2023 were purchased outright in cash, “others are choosing to take on a higher rate and refinance later - an expensive option that isn’t feasible for a lot of lower-income consumers,” Aleem explained. 

We’ve compiled the top 5 record-smashing luxury sales based on Jonathan Miller, President and CEO of appraiser Miller Samuel’s annual list.

Notably, 2 of the 5 properties were located in Palm Beach, Florida. This highlights Palm Beach County in South Florida as a consistent and attractive investment destination for luxury property investors. The real estate market in the region is robust, with luxury properties demonstrating a history of appreciation over time.

1. $190 million - 27712 Pacific Coast Highway, Malibu, California

Source: Zillow

Beyoncé and Jay-Z set a new record in California real estate with their recent purchase. The property, designed by Tadao Ando, includes 7 bedrooms and 11 bathrooms, sits on 8 acres, and features a private beach and an infinity pool overlooking the Pacific Ocean.

2. $170 million - 589 North Country Road, Palm Beach, Florida

Source: Addison Development Group

The property, spanning 24,131 square feet, boasts 8 bedrooms and 12 bathrooms. Situated on 1.6 acres, it includes 150 feet of direct oceanfront. This off-market sale involved Robert Stiller, founder of Green Mountain Coffee Roasters, and luxury car dealer Michael Cantanucci. Stiller and his wife reportedly purchased this property for $25 million a decade ago, illustrating South Florida’s remarkable property appreciation.  

3. $155 million - 1495 North Ocean Boulevard, Palm Beach, Florida

Source: Zillow

Estée Lauder cosmetics founder William Lauder purchased this 2.7-acre oceanfront property in an off-market sale from the widow of Rush Limbaugh. The property has 5 bedrooms, 20 bathrooms and 4 guest houses, with approximately 250 feet of ocean frontage and direct access to the beach. Limbaugh had initially purchased the property in 1998 for $3.9 million, serving as a testament to South Florida’s property value appreciation. 

4. $138.8 million - 499 Indian Field Road, Greenwich, Connecticut 

Source: Sotheby's International Realty

Hedge fund billionaire Ray Dalio acquired the 50-acre property, boasting 8 bedrooms and 10 bathrooms. With nearly a mile of waterfront offering views of Long Island Sound, the property includes luxury amenities like a 75-foot heated swimming pool, tennis court, and two private beaches.

5. $112.5 million - 700 Meadow Lane, Southampton, New York

Source: Trulia

Nestled on 8 acres between the Atlantic Ocean and Shinnecock Bay, this 15,521-square-foot property boasts 500 feet of ocean frontage, offering stunning water views from every room. With 11 bedrooms and 12 bathrooms, it includes amenities like a private boardwalk to the beach, an indoor gym, and basketball and tennis courts. 

America Mortgages – HNW Foreign National and U.S. Expat Mortgage Experts

At America Mortgages, we specialize in assisting foreign nationals and U.S. expat investors in securing financing for luxury real estate ventures in the U.S. Our commitment to streamlining the financing process for foreign nationals and U.S. expats sets us apart. For our high-net-worth clients, we provide flexible lending options, including fixed interest-only loans and loans with non-traditional income documentation - suitable for entrepreneurs and business owners.

Join us in exploring the robust luxury real estate market with practical solutions tailored to your financial goals. Visit www.gmg.asia or reach out to us at [email protected] to steer your real estate journey.

How Can Singaporeans Obtain a U.S. Mortgage?

Singapore Mortgages

Singapore is known for academics and education, with many high school graduates attending the best universities in the world!

Similarly, the U.S. is known for having most of the top global universities.

Singapore currently has 21,666 students studying abroad, according to UNESCO, and according to a recent Open Door report, Singapore had 3,901 students studying in the U.S. – a record number!

A typical Asian family will want to explore owning a property near the university the child will be attending – as a place to stay when visiting or if the student prefers not to stay in the dormitory.

After graduating, the property’s value often goes up. It might be enough to pay for college, or parents might choose to give the property to their child if they plan to work in the U.S. before returning home. This allows the child to build credit, something very important in the U.S.

However, not many can pay for a home with cash and just give up when they assume that obtaining a mortgage is not available. 

Contrary to what you may think…..

  • You CAN get a mortgage as a non-U.S. citizen or Expat living in Singapore
  • You DO NOT need U.S. credit or residency
  • You CAN QUALIFY based on your Singapore income OR by using the rental income of the U.S. investment property   
  • You CAN get market-interest rate mortgages while living in Singapore 
  • You CAN sign the closing documents at the embassy on Napier Road

Actually, we are the world’s first and only U.S.-based mortgage broker with offices in Singapore, right on Telok Ayer. Come visit us for coffee! 

Let us guide you through this process from: 

  • Introducing you to a realtor
  • Helping you screen for the best locations to buy
  • Setting up your LLC
  • Discussing the benefits of using an LLC
  • Introducing you to a property manager

[Must Sign Up!] A Singapore Couple’s Path to Financial Freedom through U.S. Real Estate Investing! 

Meet Han and Tracy, an incredible couple from Singapore who made a bold move – they left behind their regular 9-5 jobs after successfully diving into the world of U.S. real estate. Now, proud owners of 12 cash-flowing properties, achieved through strategic moves in just three years, they’re here to share their story.

Register for our exclusive webinar “Singapore Couple’s Journey to Financial Freedom through U.S. Real Estate Investing,” on January 18th at 6:30 PM SGT. Join Han and Tracy as they unravel the details of their transformative journey. Learn the secrets of how this dynamic duo achieved financial freedom through their savvy investments in U.S. real estate. Don’t miss out—reserve your spot now!

AM Student+ 

Investing in your child’s future just got easier. America Mortgages’ Student+ loan program removes the financial barrier for parents who want to purchase a property in the U.S. for their children’s education. This innovative program allows parents to qualify for a loan using the projected rental income of the property, eliminating the need for a U.S. credit history. This means that even parents who are new to the U.S. can provide their children with a safe and comfortable place to live while they study.  

With America Mortgages’ Student+ loan program, parents can invest in their children’s future and build wealth at the same time. The program’s flexible terms and competitive rates make it an attractive option for investors. Contact us today to learn more about this unique program and start investing in your child’s bright future.

[email protected]

A Secret Strategy Top Real Estate Investors Use

International Mortgage

A secret many wealthy U.S. real estate investors use is the practice of holding properties within an LLC. 

Using an LLC to hold real estate for investments has almost become a given with many tax benefits, liability protection, and acceptance by lenders. If you think about it, any company earns revenue, and in this case, LLC’s revenue comes from the rental income of the property. Also, like any company, you have operating expenses related to running the company (your company-related tax deductions) – more on this later. 

In this article, we’ll break down how an LLC operates and dive into the advantages of opting for an LLC when dealing with rental properties.

Opening an LLC

An LLC not only shields you from liabilities but also brings in tax advantages. This offers a seamless and flexible approach to handling your investment efficiently.      

Process: 

  1. Choose a State:
    Decide in which U.S. state you want to establish your LLC. Each state has its own rules and regulations regarding LLC formation.
  2. Name Your LLC:
    Choose a unique and compliant name for your LLC. It should comply with the naming rules of the state.
  3. File Articles of Organization:
    Submit the required paperwork, usually called the Articles of Organization, to the appropriate state agency. This is often the Secretary of State’s office.
  4. Operating Agreement:
    While not always required, it’s advisable to create an operating agreement that outlines the structure and operation of your LLC.
  5. Obtain an EIN:
    Apply for an Employer Identification Number (EIN) from the IRS. This is like a Social Security Number for your LLC and is necessary for tax purposes. 
  6. Bank Account:
    Once your LLC is approved, you can open a business bank account. While banks do not help in the formation of the LLC, they are crucial for managing your LLC’s finances.

The benefits of using an LLC to hold a rental property

  1. Single or Multiple Members Allowed
    An LLC allows for flexibility in membership, accommodating either a single member or an unlimited number in a multi-member LLC. This flexibility enables individual investors to enjoy an LLC’s benefits and protections. However, if the LLC is treated as an S-Corporation for tax purposes, there is a 100-member limit.
  2. Pass-Through Entity for Tax Purposes
    An LLC is treated as a pass-through entity for tax purposes, meaning profits or losses flow through to each member based on their ownership percentage. Members report income or loss on individual tax returns and pay taxes based on personal income tax rates.
  3. Flexible Pass-Through Structure
    While LLC profits and losses are generally distributed based on ownership percentages, members can agree to a different allocation in the operating agreement. For instance, a member in a higher tax bracket might seek a larger percentage of the depreciation expense for a more substantial tax write-off.
  4. Management Flexibility
    The operating agreement of an LLC can be tailored to allow management flexibility. For example, one member with property management expertise may handle daily property details, or the operating agreement may mandate that all members vote on significant decisions like refinancing or sale of the property.
  5. One LLC for Each Rental Property
    Many investors opt to establish a separate LLC for each rental property they own. This adds an extra layer of protection by isolating potential claims against one property from the entire real estate portfolio for those with multiple rental properties. 
  6. Contribution of Personal Assets
    Members have the option to contribute personal assets, such as real property or funding, to an LLC. The LLC can also pay reasonable interest to members for loans until the borrowed money is fully repaid.
  7. Easy Transfer of LLC Interests
    Shares in an LLC may be sold or transferred to new members based on the terms outlined in the operating agreement. Real estate held under an LLC can remain within the LLC’s control even when under new members.
  8. Professional and Business-Like Image
    Holding rental property under an LLC provides real estate investors with a more professional business appearance. This could enhance credibility with tenants, lenders, and vendors.
  9. Inexpensive and Straightforward Formation
    Depending on the state forming an LLC can be a relatively simple and cost-effective process, from $50 to a few thousand, depending on the state. 

Certain states impose a minimum annual LLC tax, require annual reporting fees, and may necessitate payment of registered agent fees to an agent for service of process in the state where the property is located.

Choosing an LLC to hold a rental property can shield an investor’s personal assets in case of a lawsuit. Typically, in a legal dispute, only the business assets would be at risk, offering a protective barrier for personal belongings.

What is the best state to form an LLC in? 

While forming an LLC in your home state is typically advantageous, there are exceptions for non-residents and specific LLCs. Non-U.S. residents have the flexibility to choose any state, with Wyoming and Delaware being recommended options. For real estate LLCs, the “home state rule” doesn’t apply. According to doola.com, Delaware provides business owner anonymity, as it doesn’t require the owner’s name on entity formation documents. Wyoming allows listing a “nominee” as the LLC owner for added privacy.

Pre-Approval Process

Launch your U.S. real estate investment journey confidently with America Mortgages’ 72-hour pre-approval process. Our team simplifies required documentation and timeframes, providing solid assurance. House shopping is much easier when you have an official lender pre-approval.

Tax Considerations

Effortlessly navigate tax complexities with America Mortgages’ tax partners. Understand all the tricks that billionaire real estate investors use to minimize tax liability and maximize profit potential. Consult with our tax professionals for an optimized strategy.

Property Management

Ensure remote property maintenance with America Mortgages’ property management partners. Our team connects you with reliable day-to-day management, offering peace of mind even when you’re not physically present.

Legal Assistance

For smooth transactions as a foreign investor, legal advice is crucial. America Mortgages connects you with experienced professionals for essential guidance.

Property Insurance

Protect your property with suitable insurance through America Mortgages’ trusted partners. Obtain the right coverage for a well-structured risk management strategy, ensuring peace of mind for your investment.

Stay Informed

Stay updated on U.S. real estate changes and regulations affecting foreign investors. Continuous education is essential for informed decision-making and adapting to evolving market conditions.

Navigate your U.S. real estate investment journey with America Mortgages. Together with our partners, we provide comprehensive support from swift LLC formation and a 48-hour pre-approval process to tax expertise and reliable property management. Let us guide you in developing clear exit strategies and staying informed about market changes. Trust America Mortgages for a seamless and informed U.S. real estate investment experience. Contact us today at [email protected] for a seamless investment experience.

www.gmg.asia

Canadian Real Estate Outlook for 2024

Australia Mortgage Rates

Did you know we have a very active Canadian mortgage business with teams based in Vancouver, Calgary, and Toronto?

Here is an updated copy of our GMG Canada Loan Program

Canadian Real Estate Outlook for 2024…eh!

Like its southern neighbor, we've watched the Bank of Canada hike up their benchmark interest rate. Now, there's talk that maybe, just maybe, the housing market's rough ride could smooth out in 2024. But predicting exactly when this will happen and how strong the rebound will be isn't easy. It's got a lot of us on the edge of our seats, wondering if it's the right time to jump into the market.

The central bank's rate is like the heartbeat of Canada's housing market. If the predictions are right and we see interest rate cuts in 2024, it could be a break for those itching to buy a home. But it's not all sunshine and rainbows yet. Despite the Bank of Canada hitting a pause on rate hikes for a bit, a survey by Ipsos for Global News found that a whopping 73% of Canadians feel locked out of the housing market because of these high rates. It's especially tough for millennials and folks in British Columbia and Quebec.

Darrell Bricker at Ipsos Global pointed out to Global News that while these high borrowing costs are a barrier, they might also nudge some sellers who can't keep up with their mortgage payments to sell.

As for the 2024 housing market, Robert Hogue from RBC thinks we might see some action before the busy spring season. But high borrowing costs could keep a lid on things in the first half of the year. If mortgage rates tied to bonds start to dip, we might see some buyers, especially investors, jumping in.

Hogue doesn't think sellers will flood the market, even though a lot of folks will have their mortgage terms ending. He believes the mortgage stress test should help prevent a wave of forced sales. He's expecting a bit of a boost in demand if we see interest rate cuts, but nothing crazy until borrowing costs really start to drop.

Over at Royal LePage, they're also predicting a pick-up in sales and prices in the second half of 2024. They even think home prices could get close to their pandemic peak by the end of the year.

Phil Soper from Royal LePage says there's a lot of pent-up demand. A drop in interest rates could be the sign people are waiting for to feel confident that the price of the home they buy today won't drop tomorrow.

But it's not just about buying. The rental market has been through the wringer, too. Even though overall inflation has cooled down, the cost of shelter remains high. There's some hope that if borrowing costs ease up, it might also take some pressure off the rental market, as more renters might buy homes and free up rental units.

But don't expect miracles in affordability. Housing affordability hit a 41-year low in 2023, but there's been a slight reversal recently, with home prices dropping in some areas. However, a big factor in whether housing becomes more affordable is the supply. We need a lot more houses to meet the demand, especially with Canada's immigration levels.

The federal government has plans to boost home construction, but even with that, it might not be enough to keep up with the demand and make housing truly affordable.

To sum it up, 2024 is shaping up to be a crucial year for the Canadian housing market. There are a lot of promises and proposals floating around, and it's time to see if they actually pan out. We're all waiting to see if this is the year things start to turn around in the housing world.

[email protected]

What just happened? + How to bet alongside Blackstone!

Bridge Loan Mortgage

What a year it’s been and the resiliency of asset markets in the face of everything that was thrown at it was truly amazing!   

We are living through unprecedented times with technology and crypto experiencing another bull market, U.S. elections in 2024, and potential rate cuts around the world. Could we be “back to the races” again this year?

One exercise that we all do at the beginning of the year is to adjust our personal investment portfolio to reflect what we expect to unfold in the world over the short, medium, and long term.

For many, including myself, that means increasing the allocation to crypto and U.S. real estate investments.

The simple key to making long-term money is to create a portfolio of non-correlated investments, and there is no better time to increase your U.S. real estate investment exposure.

Our goal in 2024 is to bring more education, experience, and strategies to our client's real estate investing.

We are living through unprecedented times, and we want to be there for you on your journey as an international real estate investor.

Message me if you want to know what I recommend as your real estate exposure vs. your overall portfolio.

U.S. Real Estate Market - What Just Happened?!

In a year that saw:

  • 10-year Treasury yields at 5%
  • 30-year mortgage rates at 7-8%
  • Inflation as high as 6.5% 

How did:

  • Home prices rise across the country; in some metro areas 10-15%
  • S&P +25%; Nasdaq +55%

How did everyone get it wrong?  

In hindsight, it is clear to me that the extent of the positive impact of various layers of government stimulus going back to COVID (including the Fed’s BTFP) was severely misunderstood and underappreciated.  

Now, with inflation and employment (Fed’s dual mandate) seemingly under control, most of the world now expects around a 75 bps cut in Fed Funds rates (echoed by the Fed’s new dot plot).  

Hat’s off to our GMG Research team, which mid-2022 called for a supportive U.S. property market in 2023, but never did we expect a rising market to this extent.   

Our thesis was simple - it was based on the fact that: 

  • 24% of homeowners have their mortgages < 3%
  • 63% are locked-in < 4% and 
  • 83% of homeowners have mortgages < 5%
  • Severe lack of supply 

Existing Homes

In any marketplace, you need supply and demand. For U.S. real estate, the supply is Existing Homes and New Homes. Existing Home Sales are about 90% of Total Home Sales in the U.S.

Given that 83% of existing homeowners have a mortgage < 5%, they would have to be under financial stress to sell, given their new mortgage would cost 7-8%. As you can imagine, Existing Home Sales is at a 13-year low!    

New Homes

It’s widely known that there is a major shortage of homes in the U.S.; between 3-6M units, depending on what you read.

Lack of Homebuilder Motivation

With higher borrowing costs, higher commodity prices, and higher wages - there is no financial motivation for homebuilders to increase their development, given the lower margin potential from higher costs.  

More importantly, demand and affordability will be dampened by higher-for-longer mortgage rates. 

Remember, the large homebuilders are all publicly traded companies with CEOs compensated on share price performance. 

Higher profit => Higher EPS => Lower PE => Institutional Buying => Higher share prices => Higher CEO bonuses!

Sun Belt is Rising!

Elsewhere, the national reshoring of manufacturing is happening; it's happening now, and it's happening fast!

States like Georgia, Texas, and Florida are experiencing an unprecedented influx of employment seekers to match the growing opportunities.

Between January 2020 and January 2023, rents for a two-bed detached home increased about 44% in Tampa, Florida, 43% in Phoenix, and 35% near Atlanta. 

Why is this important for you (international property investor)?

Many Americans will not be able to afford a mortgage even if rates fall to 5-6%, so they will have to rent.

In the states mentioned above, we are seeing gross rental yields of 12% already!

I have no doubt that rental yields in these states will be 15% sooner than we think.  

You know who else knows this?

Wall Street, aka Private Equity (aka Blackstone and its pals)

Single-family homes are the next big institutional investment opportunity given its sheer scale and for the reasons I mentioned above.  

There have been many articles published this year about how institutions may own up to 40-60% of single-family home supply by 2030!

Hear Bobby Kennedy Jr’s speech on this

As an investment banker for over 20 years with Blackstone as its client, I can assure you if there is money to be made, they are going to make it!

The Perfect Storm to Invest in U.S. Real Estate

  • Extremely supportive supply demand
  • Low-entry price point
  • Ease of transaction
  • High leverage (even for foreign nationals living overseas)
  • Tailwind of institutional buying and 
  • Plenty of ways to maximize cash flow (lower tax)

Home prices will certainly go higher, given the expectation of lower rates in 2024!

If you are interested in taking your first step in owning a U.S. real estate investment property, send me a private message, and I can walk you through the entire process:

  • How to find the right city to invest in
  • Which cities have the highest rental yield
  • Setting up an LLC and bank account
  • U.S. tax specialist specializing in international investors
  • Property manager
  • Realtor….and, of course,
  • Financing for foreign nationals or expats living overseas

2023 In Review

Bank stuff…

Silicon Valley Bank was put into receivership after it failed to raise needed capital. SVB’s closure was the largest bank failure in U.S. history since the 2008 financial crisis. This led to the collapse of cryptocurrency-focused Silvergate Bank and Signature Bank as well.

The implosion of these three small-to-mid-sized U.S. banks ignited contagion fears across the globe in the months that followed, prompting the Federal Reserve to set up a US$12B emergency lending program - known as the Bank Term Funding Program (BTFP). More on this later.  

The programme couldn’t save First Republic Bank from closing down and was ultimately sold to JPMorgan Chase. 

This was just an amuse-bouche for what happened next as Credit Suisse collapsed with UBS paying only CHF 3B to save the company, a deal brokered by the Swiss government. Google “AT1 bonds,” and the story gets even crazier. 

Crypto stuff…

  • January - BTC $16,000; ETH $1606; SOL $9.9
  • February - Kraken shuts down
  • March - SVB collapses; Arbitum launches ARB token
  • April - ARK refiles Bitcoin ETF
  • May - DOJ investigation on Binance for Russia sanctions
  • June - SEC sues Binance CEO; Blackrock files for spot Bitcoin ETF; Fidelity, Wisdom Tree, VanEck refiles Bitcoin ETV
  • July - Blackrock CEO says BTC “could revolutionize finance”; Ripple won ruling
  • August - Paypal launches stablecoin, Grayscale wins lawsuit with SEC, 
  • September - Nomura launches Bitcoin fund
  • October - 1st ETH futures ETF launched
  • November - SBF found guilty; Blackrock files for spot Ethereum ETF; Binance settles lawsuit and CEO steps down
  • December - BTC $40,000; ETH $2,396; SOL $105 

Bad actors were removed, Binance settled, Ripple won, Bitcoin spot ETF (only a matter of time), and MicroStrategy bought $600M of BTC at $42K last night!

AI stuff…

It’s mind-boggling that ChatGPT reached 100 million users in just 2 months after launch. Just guessing here, but it must be the fastest adoption of any form of technology, language, or service in the history of humankind. The scary thing is that it’s only getting started. It’s now a necessary tool for nearly all organizations (ChatGPT is writing this now…just kidding).

An event prescient of things to come was the Hollywood strike, which, at the core, was about protecting Hollywood jobs from AI. The delay of Dune 2 till March 2024 was the biggest disappointment to me personally. 

Nvidia, the only company that is able to make chips capable of crunching AI’s large language models, saw its stock +200%. The rest of the tech incumbents went along for the ride: Meta +250%, Tesla +100%, Google, and Microsoft, both +50%+. 

Fun stuff….

  • Taylor Swift’s x ERAs tour is generating more GDP than many small countries. I’m a massive Swiftie, so bummed I couldn't get tickets.
  • Taylor Swift x Travis Kelce
  • Barbie x Oppenheimer
  • Coronation of King Charles III and Camilla

Sad stuff…

  • Hamas and Israel
  • Hawaii forest fires
  • Titan x Titanic
  • Matthew Perry, Tina Turner, Sinead O’Conner

Crazy stuff…

  • Twitter rebrands to X
  • George Santos gets expelled from the House of Representatives
  • Kevin McCarthy gets ousted as Speaker of the House
  • Torrential rain flooded Burning Man (I was supposed to go)
  • The Cricket World Cup breaches 1 trillion viewing minutes globally
  • Watching Harvard and UPenn botch their response to the ME events
  • Ozempic, a diabetes drug popular with Hollywood actors to lose weight, became mainstream to the point its manufacturer, Novo Nordisc, was the largest market cap stock in Europe, larger than LVMH!
  • Even crazier, General Mills had to research the impact Ozempic had on their business, given the potential lack of calorie consumption.

Sports stuff…

  • Messi-mania goes nuclear in Miami
  • Inter Miami is the most searched sports team on Google
  • Lebron surpassing Kareem in most points scored
  • South Africa wins the Rugby World Cup
  • Australia wins the Cricket World Cup

Update of our Global Financing Capabilities

  • International Residential Mortgages
    U.S.,  Canada,  Mexico,  U.K.,  France,  Spain,  Portugal,  Italy,  Dubai,  Singapore,  Japan,  Thailand,  Australia
  • International Asset-backed (Bridging) Loans
    U.S.,  Canada,  U.K.,  Singapore,  Thailand,  Philippines,  Australia
  • Asian Real Estate Structured Debt Financing
    Most of Asia
  • Listed Share Financing
    Most of Asia and the U.K.

I want to thank all our stakeholders for joining us on our journey to disrupt how international investors secure financing for global real estate investments.  

We wish you abundant health, wealth, and happiness in 2024!

Happy Hunting!

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What to Expect in 2024 [U.S. Real Estate]

As we usher in 2024, a world of exciting opportunities awaits in the U.S. real estate market, particularly for foreign nationals and U.S. expats seeking to make strategic investments.

What to Expect in 2024

Zillow.com predicts the prices of homes in the United States will increase by 6.5% from July 2023 to July 2024. This increase is based on rates remaining relatively unchanged. The prediction suggests that the value of homes is likely to increase, mainly due to the lack of inventory and owner-occupied buyers waiting for interest rates to decrease. What will happen to property prices if interest rates decrease? 

The housing market is constantly changing, subtly shifting over time. For those investors with a keen eye, there's an opportunity to discover a unique and profitable niche. The current state of real estate, marked by a standoff between buyers and sellers due to high mortgage rates, creates an environment where savvy investors can make strategic moves. Suzanne Miller from Empire State Properties notes that despite the rising home prices, many potential buyers are holding back due to these higher mortgage rates.

In line with Bank of America's 2023 Homebuyer Insights Report, this shift in the market is already underway. In October, nearly 40% of those looking to purchase homes expressed their determination to proceed with house hunting, showing little regard for waiting until conditions improve. This contrasts sharply with the sentiment observed just six months prior, where only 15% of potential homebuyers demonstrated a similar eagerness to move forward.

Renowned real estate expert Barbara Corcoran anticipates a significant market shift when interest rates drop. "The minute those interest rates come down, all hell's going to break loose, and the prices are going to go through the roof," she said. "Right now, sellers are staying put. But they're not going to stay put if interest rates go down by two points. 

"It's going to be a signal for everybody to come back out and buy like crazy, and the house prices [will likely] go up by 20%," she said. "We could have COVID [market] all over again."

Advantage for International Investors

International investors have a clear advantage. The National Association of Realtors reports a 9.6% decline in annual foreign investment in U.S. existing home sales, totaling $53.3 billion. This decline, along with the lack of owner-occupied buyers sitting on the sidelines, means less competition, making it an excellent time to get into the U.S. real estate landscape.

Rental Opportunities

Understanding the opportunities for profitable investments, overseas investors should consider exploring rental options and the potential returns they offer. As home prices rise and available properties become scarce, there are numerous possibilities for U.S. investment properties with high potential returns.

The latest report from ApartmentLists highlights cities that have experienced the most significant growth in the past 12 months. Leading the list are Indianapolis (+6%), Columbus, OH (+6%), Oklahoma City (+6%), Hartford (+5%), Chicago (+6%), and Cincinnati (+6%). Since the start of the pandemic, Tucson, AZ, has seen a substantial 37% increase in rents, while Tampa, Florida, has also seen significant rent growth, up by 39%.

Wallethub also compiled a comprehensive list of cities with thriving real estate markets and high buyer demand:

Seize the Opportunities with America Mortgages

As we navigate 2024, whether you're a seasoned investor or just entering the world of real estate, now is the time to act. Our team is ready to guide you through your journey, ensuring that you not only invest but thrive in the ever-evolving real estate landscape.

Our 100%-owned subsidiary, America Mortgages, focuses only on providing U.S. mortgage financing for foreign nationals, non-residents, and U.S. expats. 100% of our clients fit that profile, and no one does it better. 

Reach out to us now to schedule a commitment-free consultation with one of our U.S. mortgage loan officers based worldwide; simply use this 24/7 calendar link to book an appointment.

www.americamortgages.com

40-Year High

International Mortgage Broker UK

Between 2022-2023, the U.S. hosted over 1,000,000 international students, +12% from the previous year, the fastest growth rate in more than 40 years! (The Open Doors® 2023 Report on International Educational Exchange, Nov 13)

Let me repeat this…

The U.S. saw a 40-year high growth rate in international students attending U.S. universities between 2022-2023!

What was also interesting was Singapore (our headquarters) and India saw record numbers of students attending U.S. colleges. 

Did you know…

We created the world’s first U.S. mortgage, which allows your child to be the tenant, AM Student+.

Education

From our client surveys, Education was given as a key reason for their U.S. real estate investments. 

Most of the time, the objective of owning real estate to earn income almost always comes down to "could I live there one day"? 

A popular strategy for our clients is to purchase an investment property "in anticipation” of sending their child to college, set up a base in that city, and earn rental income along the way.  

Then upon college acceptance, the parents can live in the property when visiting and rent it out when it's not in use. 

Upon graduation, the price appreciation may even pay for college if they decide to sell. 

Another popular option, if the child stays in the U.S. for work, is to transfer the property to the child's name as a "graduation gift" to help build up their credit profile and/or earn rental income. Why high schools? 

Here are the following “Education-related” reports - there is plenty of good information here - including the best Public and Private high schools in California, Texas, Florida, and New York:

1. Top U.S. High Schools Property Investment Guide eBook

2. Buyers Guide to California - Education drives prices and rents

3. Buyers Guide to California - Demographics

Here is a list of our partners that can help with your U.S. real estate investment decision:

If you have any questions, please feel free to reach out to me directly at [email protected] or my personal mobile +65 9773-0273. 

www.gmg.asia

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