Tag: Canadian

Canadian businessman picks Florida for high rental yield

The Client

Our client purchased a 4-bedroom single-family home in Florida, intending to fix and flip it. Being a Foreign National made it difficult for him to find a lender who would finance a fix-and-flip property.

How We Helped

His lack of U.S. credit made it hard for him to find a bank to lend to him. Using AM Fix-’N’-Flip program for Foreign Nationals, we were able to use his local credit, and the client was able to get a loan amount based on the ARV. Within a month, the deal was closed. (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountARVRate
Canadian Citizen $750,000 $487,500 65% 7.25%
Term Address Property TypePurposeLoan Type
18 Months Orlando, Florida Single-Family Home Fix-and-Flip Residential
Nationality Canadian Citizen
Property Value$750,000
Loan Amount$487,500
ARV65%
Rate7.25%
Term18 Months
State Orlando, Florida
Property TypeSingle-Family Home
Purpose Fix-and-Flip
Loan TypeResidential
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Canadian Professor purchases Fix-and-Flip property in Texas

The Client

Our client was a university professor living in Canada. He found a property in Texas that needed some repairs and wanted to take advantage of the low purchase price with the intention to ‘Flip’ it. The property being situated in a good neighborhood within close proximities to good schools and several amenities, convinced our client that he could successfully flip it.

How We Helped

Being a Foreign National caused several problems for our client as banks could not lend to him. After several rejections, our client was referred to us by a lender. Using AM Fix-‘N’-Flip loan program, our client purchased the property for $200,000, and we were able to secure a short-term loan amount of $195,000 based on the after-repair-value (ARV). (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountARVRate
Canadian Citizen $200,000 $195,500 65% 8.25%
Term Address Property TypePurposeLoan Type
18 Months Fort Worth, Texas Single-Family Home Fix-and-Flip Residential
Nationality Canada Citizen
Property Value$200,000
Loan Amount$195,000
ARV65%
Rate8.25%
Term18 Months
State Fort Worth, Texas
Property TypeSingle-Family Home
Purpose Fix-and-Flip
Loan TypeResidential
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Canadian doctor in Vancouver buys condo in Atlanta for rental income using 1031 Exchange.

mortgage broker

The Client

Our client from Australia came to us online and wanted to look for low-cost residential housing to earn investment income. They like the Midwest cities due to their low entry point.

How We Helped

Given the capital tax implications of selling, we suggested using a Tax Program called “1031 Exchange,” which allows property owners to swap one investment property into a more expensive one, which allows capital gains taxes to be deferred. They reviewed this option with their tax advisor and were able to roll the gains into the new purchase allowing them to buy a nicer property located in a better school district that equated to higher rental yields.

We found the client a very competitive foreign national mortgage, and they were able to take advantage of this Tax Incentive. (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Canada Citizen $480,000 $264,000 55% 4.750%
Term Address Property TypePurposeLoan Type
5/1 ARM Atlanta, Georgia Single-Family Home Purchase Residential
Nationality Canada Citizen
Property Value$480,000
Loan Amount$264,000
LTV55%
Rate4.750%
Term5/1 ARM
State Atlanta, Georgia
Property TypeSingle-Family Home
Purpose Purchase
Loan TypeResidential
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Canadian investment fund purchases hotel in Texas.

mortgage for overseas property

The Client

Our client was referred to by a developer in Houston, Texas who we worked with previously. The client is a Canadian real estate investment company looking to purchase a hotel as well as in Houston, Texas. Due to the covid-19 impact on the hotel industry, the borrower was able to secure a very competitive price on a non-flagged hotel property in the U.S.

How We Helped

Due to Covid-19, almost all lenders are on pause with hospitality finance requests, due to the inherent risk of the hotel industry and travel being shut down/limited around the world.

Our client was able to utilize a Bridge Loan to secure the purchase of the property. Once the Covid situation improves and travel opens back up, the borrower will refinance with a traditional longer term commercial loan. With the discounted purchase price, the more costly bridge loan for a few years made sense. (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Canada-based
Investment Company		 $3,100,000 $1,550,000 50% 8.99%
Term StateProperty TypePurposeLoan Type
2 years with
possible extensions		Houston, TexasHotel –
Non-Flagged		PurchaseBridge
NationalityCanada-based Investment
Property Value$3,100,000
Loan Amount$1,550,000
LTV50%
Rate8.99%
Term2 years with possible extensions
StateHouston, Texas
Property TypeHotel – Non-Flagged
PurposePurchase
Loan TypeBridge
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Canadian real estate investors eye California for higher-yield returns.

mortgage broker

The Client

Our client is a Canadian attorney and real estate investor looking to shift his real estate portfolio for multi-family U.S. property in California for retirement income. The property is a three multi-unit home in Venice Beach (2) and Long Beach (1), California, with net yields of 16%.

How We Helped

To secure the yield needed, the client required a mortgage below 5%.

Although the client earned excellent income and was an experienced real estate investor, the lack of U.S. credit created issues each time he approached a California bank or broker for financing.

As AMFNLite Program allows the borrower to use a “local” credit report,  it solved the issue of not having U.S. credit. The rate required was merely an adjustment in LTV, giving the borrower a fixed rate on each property below 5%. (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Canada Citizen $4,200,000 $2,500,000 60% 4.35%
Term Address Property TypePurposeLoan Type
3/1 ARM Venice Beach, California Single-Family Home Purchase Residential
Nationality Canada Citizen
Property Value$4,200,000
Loan Amount$2,500,000
LTV60%
Rate4.35%
Term3/1 ARM
Address Venice Beach, California
Property TypeSingle-Family Home
Purpose Purchase
Loan TypeResidential
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