{"id":8815,"date":"2009-06-08T11:00:46","date_gmt":"2009-06-08T18:00:46","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8815"},"modified":"2009-06-08T13:37:51","modified_gmt":"2009-06-08T20:37:51","slug":"8815","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8815\/8815\/","title":{"rendered":"The mortgage situation for nonresident buyers"},"content":{"rendered":"

Tom Vanderwall chimes in here on BHB regularly and helpfully about the mortgage situation. I look forward to his interpretation of the spins we get from DJ Bernake and crew.<\/p>\n

I handle foreign real estate transactions and here’s what I’m seeing right now. What follows is all buyer-side stuff, because of course they’re the ones looking for financing.<\/p>\n

War story. (In progress).<\/p>\n

I have a buyer from the Middle East. Extremely solid person, extremely *ahem* solid balance sheet. Wants to buy a house in the $5 million range. No one that I have found (and I have tried mortgage brokers from Florida to California) can put an offer on the table for a sane mortgage. Even at 50% loan-to-value.<\/p>\n

He banks with one of the brand name international banks and ordinarily you’d think that they would do something for him, if only to protect their customer relationship. (Considering the other business the bank gets from him and the family business, you’d think . . . .) But no.<\/p>\n

So we keep looking. Most likely solution is either an all cash purchase or my buyer will do a margin loan against an investment account outside the U.S.<\/p>\n

War story. (In progress).<\/p>\n

Family from outside the U.S. is busily buying up rental properties by the handful somewhere in a State that isn’t touched by ocean. Let’s just leave it vague like that. Putting in enough money so the properties will be cash flow positive. Can’t get a single lender interested in taking a look at the portfolio of properties. At any “reasonably close to market” terms.<\/p>\n

Again they will leverage offshore assets, borrowing short term. They’re buying all cash, basically lending to themselves (via a nifty “Bank of Me” structure I set up for them), and hoping that in 6 – 12 months they can find a bank that is willing to look at lending against 25 properties all cash flow positive.<\/p>\n

War story. (In progress).<\/p>\n

Right now. East Coast. Condo purchase, around a quarter million. Same thing.<\/p>\n

War story. (In progress). Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tom Vanderwall chimes in here on BHB regularly and helpfully about the mortgage situation. I look forward to his interpretation of the spins we get from DJ Bernake and crew. I handle foreign real estate transactions and here’s what I’m seeing right now. What follows is all buyer-side stuff, because of course they’re the ones […]<\/p>\n","protected":false},"author":53,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-8815","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1745,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1745\/can-i-still-get-a-mortgage-in-todays-lending-markets-with-cold-hard-cash-and-great-credit-certainly-otherwise\/","url_meta":{"origin":8815,"position":0},"title":"Can I Still Get a Mortgage in Today’s Lending Markets? With Cold Hard Cash and Great Credit, Certainly; Otherwise…","author":"Cooksquared","date":"August 4, 2007","format":false,"excerpt":"On Friday, August 3rd American Home Mortgage officially closed its doors. That same week Standard & Poor's cut its outlook on Bear Stearns from stable to negative amid fears of firm wide exposure to subprime lending and the leverage finance market. If all that were not bad enough, the leveraged\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2485,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2485\/buying-countrywide-why-bank-of-america-is-the-wrong-buyer\/","url_meta":{"origin":8815,"position":1},"title":"Buying Countrywide: Why Bank of America is the WRONG Buyer","author":"Brian Brady","date":"January 11, 2008","format":false,"excerpt":"Countrywide (CFC) has been acquired by Bank of America. This should come as no surprise to Bloodhound readers; we discovered the weakness at CFC last Spring and speculated about the price last Summer. Robert Kerr, Matt Heaton, and Bob Wilson, all Bloodhound readers, tipped me off to conjecture, asked all\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1964,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1964\/can-the-nar-improve-a-buyers-financing-experience\/","url_meta":{"origin":8815,"position":2},"title":"Can the NAR Improve a Buyer’s Financing Experience?","author":"Brian Brady","date":"September 23, 2007","format":false,"excerpt":"Realtors have to stop complaining about the sorry status of the lending industry. Why? They have the power to make a difference but refuse to take action. I have often heard the Realtors' cry for licensing of loan originators and a plea for lending advisers to adopt a fiduciary capacity\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13382,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13382\/rule-of-law-and-all-that-the-foreclosure-mess\/","url_meta":{"origin":8815,"position":3},"title":"Rule of Law and All That: The Foreclosure Mess","author":"Damon Chetson","date":"October 17, 2010","format":false,"excerpt":"Suffice to say, I take a different view of the current foreclosure - robo-signer - problem now confronting the mortgage industry. Where Greg calls the banks' fraud upon the court \"procedural laxities,\" I say the banks are committing, wait for it, \"frauds upon the court.\" Greg does a neat rhetorical\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16296,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16296\/can-bernanke-keep-mortgage-rates-this-low-into-2015\/","url_meta":{"origin":8815,"position":4},"title":"Can Bernanke Keep Mortgage Rates This Low Into 2015?","author":"Brian Brady","date":"April 1, 2013","format":false,"excerpt":"I've been a vocal critic of Ben Bernanke.\u00a0 I thought his Quantitative Easing schemes would eventually create a bubble in the Treasury and mortgage-bond markets.\u00a0 Bernanke has committed to keeping rates low for another 18-24 months. I was wrong.\u00a0 I violated the first rule of market prognostication (from the late\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2967,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2967\/a-bourse-is-a-bourse-and-zillow-mortgage-is-a-marketplace-and-never-the-twain-shall-meet\/","url_meta":{"origin":8815,"position":5},"title":"A Bourse is a Bourse and Zillow Mortgage is a Marketplace and Never the Twain Shall Meet","author":"Sean Purcell","date":"April 15, 2008","format":false,"excerpt":"Bourse is a funny word isn\u2019t it?\u00a0 What exactly does it mean and why do people keep referring to the Zillow Mortgage Marketplace as a Bourse? Bourse: \\\u02c8burs\\ Function: noun Etymology: Middle French, literally, purse, from Medieval Latin bursa \u2014 more at purse Date: 1597 1:\u00a0exchange 5a; specifically :\u00a0a European\u2026","rel":"","context":"In "Zillow.com"","block_context":{"text":"Zillow.com","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/zillowcom\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8815"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8815\/revisions"}],"predecessor-version":[{"id":8817,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8815\/revisions\/8817"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}