How to buy Residential Property in the USA as a Foreigner
I'm going to take you step-by-step through the buying process as an international investor.
In order to buy residential property you can use your legal name or the name of your LLC or Corporation. Click to Register your US LLC
If you use your legal name it will have to match what's on your passport and other Identification.
Options on purchasing Property
You can use a cash option or take a foreign national loan.
With the cash option you will be required to present proof of funds such as a bank letter/statement which contains the bank name, the bank's logo and the name of the account and the balance, preferably in the US currency.
This letter will be utilized to present an offer and to demonstrate to the seller that you are able, willing and ready to make the purchase.
With the foreign national loans there are several lenders in the United States that will work with some countries around the world.
This process usually takes about six days and typically will require between a thirty to fifty percent deposit from the lender with you having to finance the rest.
This is called a lease purchase. It's basically an agreement between the buyer and the seller and a real estate attorney. This option is not as popular and here is why:
Typically a seller may want to sell a property and obtain their money after closing right away. They don't want to have to wait with this option.
It's important as an international investor to work with a great team that will assist you through the entire process successfully.
You will need to find and decide what type of property you want to acquire with regards to the process e.g. a condominium, villa, a term home, or a single-family home.
Is it a new construction? Are you going to use it as a vacation home or a rental?
If you do use it as a rental, is it going to be for short term rental, meaning are you going to lease the property to tourists and vacationers or as a long term rental which is going to be rented out to locals for a longer time.
Once you identify the type of property, with the help of your real estate attorney, an offer will be submitted either with a proof of funds if you're buying with cash or with a pre-approval letter acquired from the bank where you applied for your foreign national loan.
When your offer is signed it becomes a fully
executed contract. As soon as it gets delivered to you, you are under contract and that is your first step closer to owning a piece of property in America.
Immediately after you are under contract, a deposit, if you're buying it cash, typically is
made, about ten percent of the sales price.
If you are buying the property under a foreign national loan, a property appraisal is required
containing all the specifics on the land.
Your Realtor lawyer can arrange homeowner's insurance which will protect you from fire, natural disasters, equipment malfunction and from law suits from tenants etc. Hiring a professional and reliable property management team will be well worth it.
If you don't have a tenant in place they will search for one, they will market the property, collect the rent and make sure it's deposited into your bank account, handle property taxes, take care of any repairs and so on as long as you provide them with all the specifics.
Acquiring property in the USA as a noncitizen is a lot more difficult to process but well worth it as a long term investment.
If you do use it as a rental, is it going to be for short term rental, meaning are you going to lease the property to tourists and vacationers or as a long term rental which is going to be rented out to locals for a longer time.
Once you identify the type of property, with the help of your real estate attorney, an offer will be submitted either with a proof of funds if you're buying with cash or with a pre-approval letter acquired from the bank where you applied for your foreign national loan.
When your offer is signed it becomes a fully
executed contract. As soon as it gets delivered to you, you are under contract and that is your first step closer to owning a piece of property in America.
Immediately after you are under contract, a deposit, if you're buying it cash, typically is
made, about ten percent of the sales price.
If you are buying the property under a foreign national loan, a property appraisal is required
containing all the specifics on the land.
Your Realtor lawyer can arrange homeowner's insurance which will protect you from fire, natural disasters, equipment malfunction and from law suits from tenants etc. Hiring a professional and reliable property management team will be well worth it.
If you don't have a tenant in place they will search for one, they will market the property, collect the rent and make sure it's deposited into your bank account, handle property taxes, take care of any repairs and so on as long as you provide them with all the specifics.
Acquiring property in the USA as a noncitizen is a lot more difficult to process but well worth it as a long term investment.
Please note
This blog does contain affiliate links so if you do decide to make a purchase we will receive a small commission. Thank you for your support.
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