Amazines Free Article Archive
www.amazines.com - Tuesday, December 18, 2018
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133273)
 Advice (160779)
 Affiliate Programs (34733)
 Art and Culture (73646)
 Automotive (145552)
 Blogs (75006)
 Boating (9841)
 Books (17129)
 Buddhism (4122)
 Business (1328036)
 Business News (426289)
 Business Opportunities (366242)
 Camping (10949)
 Career (72751)
 Christianity (15837)
 Collecting (11636)
 Communication (115049)
 Computers (241942)
 Construction (38971)
 Consumer (49647)
 Cooking (17059)
 Copywriting (6567)
 Crafts (18210)
 Cuisine (7536)
 Current Affairs (20373)
 Dating (45770)
 EBooks (19684)
 E-Commerce (48190)
 Education (185126)
 Electronics (83432)
 Email (6389)
 Entertainment (159790)
 Environment (28929)
 Ezine (3038)
 Ezine Publishing (5443)
 Ezine Sites (1552)
 Family & Parenting (110884)
 Fashion & Cosmetics (196375)
 Female Entrepreneurs (11840)
 Feng Shui (130)
 Finance & Investment (310216)
 Fitness (105830)
 Food & Beverages (62821)
 Free Web Resources (7936)
 Gambling (30211)
 Gardening (25064)
 Government (10517)
 Health (629062)
 Hinduism (2165)
 Hobbies (44026)
 Home Business (91542)
 Home Improvement (251226)
 Home Repair (46099)
 Humor (4806)
 Import - Export (5444)
 Insurance (45093)
 Interior Design (29541)
 International Property (3485)
 Internet (190953)
 Internet Marketing (146283)
 Investment (22822)
 Islam (1168)
 Judaism (1357)
 Law (80450)
 Link Popularity (4592)
 Manufacturing (20811)
 Marketing (98729)
 MLM (14136)
 Motivation (18211)
 Music (26997)
 New to the Internet (9475)
 Non-Profit Organizations (4048)
 Online Shopping (129604)
 Organizing (7798)
 Party Ideas (11855)
 Pets (38083)
 Poetry (2234)
 Press Release (12667)
 Public Speaking (5620)
 Publishing (7522)
 Quotes (2407)
 Real Estate (126602)
 Recreation & Leisure (95240)
 Relationships (87434)
 Research (16154)
 Sales (80293)
 Science & Technology (110127)
 Search Engines (23445)
 Self Improvement (153071)
 Seniors (6222)
 Sexuality (35939)
 Small Business (49277)
 Software (82922)
 Spiritual (23461)
 Sports (116459)
 Tax (7658)
 Telecommuting (34074)
 Travel & Tourism (306928)
 UK Property Investment (3117)
 Video Games (13420)
 Web Traffic (11723)
 Website Design (56785)
 Website Promotion (36556)
 World News (1000+)
 Writing (35758)
Author Spotlight
ALFRED MEARS

Former English Teacher; Musician (20+ years); Freelance Writer ...more
ANISH SAH

My Name is Anish Sah, I am an Internet Marketing and SEO Expert, Social Media Guru and young Entrepr...more
PHILIP MODY

A. BOOK PUBLISHED: Title of Book Publisher ISBN & Year Status of Publisher 1. Role of Ginger...more
MILECIA MCG

Hey there. I've been programming in some way, shape, or form for the past decade. My background is i...more
R JONES

Free Lance writer on a number of subjects. Retired from worldwide service in the US Marines, and ha...more


Foreign Investment in U.S. Real Estate by Flavia Santibanez





Article Author Biography
Foreign Investment in U.S. Real Estate by
Article Posted: 10/25/2017
Article Views: 766
Articles Written: 6
Word Count: 1165
Article Votes: 0
AddThis Social Bookmark Button

Foreign Investment in U.S. Real Estate


 
Finance & Investment,International Property,Real Estate
Landmines versus Gold Mines

I have been the subject of numerous articles in foreign real estate industry trade magazines that have placed an emphasis on our financing program which was refined and implemented in 2013. And why not? After a while, most foreign investors give up on financing because US lenders won’t touch them unless it is with a garbage loan NOT worth a hill of beans. But we have set the new standard and want to renew your trust in foreign investment in U.S. real estate.

In almost every one of these articles I state that “Atlas is the ONLY Company that provides internally underwritten 30 year fixed rate loans for foreign investment in U.S. real estate”; So let’s examine what I mean by making this claim. I believe it is an important dialogue to have because I have seen some predatory loan products out there and have heard more than a few horror stories from foreign investors who either did not understand what they were getting involved with, or did understand and chose to roll the dice. Let’s look and get a better idea of the loan products available for out of country investors and where these products might be detrimental to the investment benchmarks investors hope to achieve.

LANDMINE- The 3/1 and 5/1 ARM

I spoke with a small group of individual investors from Australia a few months back who had all found themselves in a pretty bad predicament. They had all obtained financing through a U.S. lender 3 years ago. They were given a rate of 8.25% on a 30 year note and they were satisfied with the returns based upon the rate and terms of the note. However, each year the debt service had increased and the yield had decreased. In fact, a number of properties were actually in a negative cash flow situation. That is because they did not understand the loan product they had signed for because the dirtiest detail was buried deep inside of the 40 page closing documents package. They had all signed on to a 3/1 ARM, or Adjustable Rate Mortgage and had no idea what they had gotten themselves into.

ARM’s and the adjusting interest rates are the equivalent of a drive-by colonoscopy. Where the rates readjust to, EVERY year for THREE years (or FIVE years if you’re on a 5/1) always go UP and never down. After all, does anyone think that banks are going into speculative long term loans without the deck stacked in their favor? There is a little known tool that banks use called LIBOR, or London Inter Bank Offer Rate. It is the benchmark rate that some of the world’s leading banks charge each other for short-term loans. It serves as the first step to calculating interest rates on various loans throughout the world and always go up. The “forces that be” can draw on any industry changes, anywhere on the planet, to adjust the LIBOR whether that is a downward change in the Venezuelan Sheet Metal industry or the Guano industry in the Galapagos. Either way, if you are on an ARM you are in trouble unless you have a LOT of yield and can afford to lose a large portion of it. Why take the risk with your foreign investment in U.S. real estate?

LANDMINE- Balloon Payments

I’d like to paint a picture. Let’s pretend that you are going to the store to pick up a gallon of milk at the end of the day. You go the counter and speak with the proprietor, and he says the milk costs $4.00. Now you have the $4.00 in your pocket or purse but the proprietor offers you an interesting proposal. He says “Let’s do this- give me $1.00 today. Then give me a nickel every month for the next three years. And then at the end of three years give me $3.00”

I cannot think of one person who would buy that gallon of milk under those circumstances, but believe it or not there are real estate investors that do this every day with real estate which, last time I checked, is considerably more expensive than a gallon of milk. It’s insane (or at least I think it is) but for some reason investors use these tools for long term investment properties and are happy to get the “loan”.

Balloon loans typically require a pretty hefty down payment and even considering this, are amortized at 20-30 years which means that for the life of the loan you will be paying interest on the loan amount and very little if any principal. At the end of the term when the balloon goes up you will be paying off the entire loan amount or darned close to it. Better to pay for the whole gallon of milk than to use this worthless loan product! Keep an eye out for these balloon payments if you’re thinking of foreign investment in U.S. real estate.

LANDMINE- 50%+ Down Payments

Okay, so…… This one is very easy. The industry standard here in the U.S. for loan fees is 2-4% origination fees (of the loan amount) and about $1500 in servicing/underwriting/doc prep/ fees + closing costs. When all is said and done you will actually be at around SIXTY-FIVE PERCENT!

And of course NONE of these scenarios above assist in providing for professional loan servicing, insurance escrows, or anything else.

I suppose I could do another “gallon of milk” parallel but I think we all get the idea here. Pay attention to fees when you’re considering foreign investment in U.S. real estate.

GOLD MINE- 30 year, fixed rate loans

As I had mentioned above the goal of Atlas Capital and Asset Management is, has been, and will continue to be in providing legitimate, 30 year loans to foreign investors from around the globe. At closing our investors have the security in knowing there will never be an adjustment in their rates and there will never come a day, before the expiration of the 30 year note, that the loan will be called.

We are the only company that is providing the same leveraging opportunities to foreign investors that American citizens get to enjoy. We have leveled the playing field foreign investors!

All underwriting takes place on the same desk where this article was written. There is no broker daisy chain where promises are made but never fulfilled.

We are your property provider, your lender, your property manager and a true partner for the next 30 years. We have as much skin in the game as our investors do so you know you not only have a US lender but a true partner for the long haul.

Please visit our website at the link below or email me to schedule a time to so we can further discuss your investment goals. I will be happy to answer any questions that you have about foreign investment in U.S. real estate.

Related Articles - foreign real estate industry, financing through a U.S. lender, foreign investment in U.S. real estate, ,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance

World News


STEPHEN BYE

Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more
LAURA JEEVES

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
STEVERT MCKENZIE

Stevert Mckenzie, Travel Enthusiast. ...more
GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
SUSAN FRIESEN

Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more
NANETTE VICTORIA

Nanette Victoria Spiritual Coach and Intuitive Guide (over 27 years experience) Spiritual Ministe...more
MICHAEL BRESCIANI

Rev Bresciani is the author of two Christian books. One book is an important and concisely written b...more
JAVIER VBOIX

For the time being just a newbie in the Insurance Industry but a quick learner, soon-to-be expert Ja...more
SANDY FISCHEL

Sandy Fischel is the marketing director at And Above All YOGA, a wholly owned division of The Fische...more
CHRISTOPHER EVANS

Christopher is based in the U.K. and is the author and founder of Critical Eye. ...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2018, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license