Global Mortgage Group Funds Singapore Real Estate Bridging Loan in 72 Hours

global Mortgage Bridge Loan

Global Mortgage Group further cements its position as the leader in international real estate financing with best-in-class service and client satisfaction.

SINGAPORE, November 23, 2023 /EINPresswire.com/ — Global Mortgage Group, a leading international mortgage originator, has completed a Singapore real estate bridging loan in just 72 hours. This achievement highlights the company’s dedication to efficiency and responsiveness in managing complex financing transactions.

Global Mortgage Group was able to expedite the financing process without compromising on due diligence, demonstrating the company’s expertise in navigating the intricacies of the Singapore market.

Madel Tan, Director and Head of Singapore for Global Mortgage Group expressed enthusiasm about the achievement, stating, “We are thrilled to announce the completion of this real estate bridging loan in just 72 hours. This achievement reflects our team’s dedication to delivering expedited yet meticulously crafted financing solutions for our high-net-worth clients in Singapore.”

The successful closure of this real estate financing transaction reinforces Global Mortgage Group’s reputation as a reliable and efficient global mortgage provider. The company is recognized in the financial sector for its uncompromised integrity, personalized service, and commitment to exceeding client expectations.

Global Mortgage Group funded $400 million in Singapore bridging loans year to date, establishing them as the market leader, with a specific focus on high-value properties such as Good Class Bungalows, to name a few. The company continues to expand its lending options and global reach while consistently surpassing client expectations.

About Global Mortgage Group

Global Mortgage Group is a leading international mortgage originator that specializes in offering customized financial solutions for high-net-worth individuals and foreign investors. With a track record of successfully funding significant real estate transactions in Singapore and globally, Global Mortgage Group provides flexible and personalized mortgage options to meet the diverse needs of its clients worldwide.

For more information, please visit www.GMG.asia or get in touch with Madel Tan, Director and Head of Singapore, at +65 9634 5623 or email at madel.tan@gmg.asia.

How to use your home equity to access immediate cash flow for investments

Singapore Bridging Loans - Investments

Get immediate cash flow for investments through home equity!

As the clear leader in high-value bridging loans in Singapore, with numerous awards in recent years, we understand the benefits of bridging loans and how they can help local Singaporeans with their cash flow.

What is a bridging loan?

A bridging loan is an asset-based, short-term loan designed to “bridge” the gap between immediate financial needs and longer-term funding options. Singapore bridging loans have gained popularity as a quick and flexible solution for urgent financial requirements.  

Whether you are a property buyer, seeking real estate investments, or a business owner in need of quick capital, bridging loans offer easy and rapid access to funds. They are also referred to as bridge financing, swing loans, and caveat loans.

How do bridging loans work?

Bridging loans serve as a temporary financial solution, typically requiring repayment within a few months to a couple of years. These short-term loans are secured against valuable assets, such as real estate or other properties. Bridging loans offer a quick and versatile option for various needs.

In this case, we focus on using Singapore real estate as the asset to collateralize and access funding. 

Bridging loan case study:

Singapore businessman is offered an opportunity to purchase a hotel for $5M, a significant discount from the book value of $10M, but needs funding within 30 days!

The client contacted GMG to explore how to use their landed property as a liquidity tool to access cash flow.

  • Step 1. Assess the value of your Singapore real estate through an appraisal. For example, the property value in this case is $10M.
  • Step 2. Arrange a private loan for 70% of the appraised value. In this case, $10M x 70% = $7M loan amount.
  • Step 3. Any existing mortgage must be paid off first. For instance, say there is an existing mortgage with UOB for $2M: $7M loan amount – $2M existing mortgage = $5M net loan amount. 
  • Step 4. The client uses $5M to acquire the distressed hotel, immediately doubling its value to $10M: a 100% net asset value for the client!

How can you use a bridging loan?

  1. Property purchases: Bridging loans are commonly used in real estate transactions to secure dream homes while awaiting the sale of existing property, ensuring a seamless transition.
  2. Property development: Property developers use bridging loans to fund construction or renovation projects, enabling them to start promptly and capitalise on favourable market conditions
  3. Business expansions: Temporary bridging loans bridge cash flow gaps during business expansions and enable seizing growth opportunities
  4. Auction financing: Bridging loans can provide the solution for immediate funding that are required for auction purchases
  5. Opportunistic investments: Savvy investors use short-term bridging finance to take advantage of time-sensitive investment opportunities.

Why bridging loans?

Not only do bridging loans have a variety of potential uses, but they also offer unique benefits:

  • Immediate access to funds
  • Online application form
  • Flexible repayment options (including interest)
  • Increased liquidity
  • Minimal required documents
  • Smooth property transitions
  • Free loan assessment

How can GMG help?

GMG offers exclusive opportunities with bespoke bridging funds:

  • High loan-to-value (LTV) – funding of up to 75%, tailored to customers’ individual needs, which traditional banks tend to not consider
  • Ease of qualification – focus on qualification based on property value rather than personal financials (e.g., age, income, and Total Debt Servicing Ratio (TDSR)) unlike with a bank bridging loan
  • Speedy approval process – bridging loans are approved within 24 hours and funded in as quickly as 3 days.

GMG provides bridging funds not only within Singapore but also offers similar financing solutions in the United States, United Kingdom, France, Canada, Australia, Thailand, Philippines, and Hong Kong.

Unleashing On-Demand Liquidity: Real Estate Bridge Loans for Savvy Investors

Bridging Companies

In the fast-paced world of real estate investing, seizing opportunities and accessing immediate liquidity is paramount. Savvy investors understand the need for a financial solution that bridges the gap between the present and the future, allowing them to capitalize on lucrative investments, time-sensitive deals, and business expansion. Introducing real estate bridge loans – a powerful tool designed to provide experienced and sophisticated U.S. real estate investors with the flexibility and speed required to navigate the ever-changing landscape of property transactions. In this article, we explore why real estate bridge loans have evolved beyond the realm of Ultra High Net Worth individuals, becoming an excellent option for anyone seeking liquidity – a true game-changer in the market.

real estate

Here are some of the advantages of real estate bridge loans:  

    1. Speed and Certainty: Bridge loans can be approved and funded quickly, which is essential for investors who need to act quickly to seize an opportunity.
    2. Flexibility to optimize returns: The terms of a bridge loan can be tailored to the specific needs of the borrower, which gives investors more control over their financial strategy.
    3. Risk Mitigation and Overcoming Obstacles: Bridge loans can be used to acquire properties that do not meet the stringent criteria of traditional lenders, such as distressed assets or properties requiring significant renovations. This can help investors unlock hidden value and achieve their financial goals.
    4. Competitive advantage: Bridge loans can give investors a competitive advantage by allowing them to negotiate more effectively and secure desirable properties.
    5. Smooth transition and timing: Bridge loans can help investors align their financial strategies seamlessly, eliminating the need to wait for the sale of existing properties or long-term financing to materialize. In conclusion, real estate bridge loans are a powerful tool that can help investors achieve their financial goals.
    1.   

    They offer speed, flexibility, risk mitigation, a competitive advantage, and seamless transition. If you are an investor who needs quick access to liquidity, a real estate bridge loan may be the right option for you.

    America Mortgages is a leading provider of real estate bridge loans in the United States. They offer a variety of loan products to meet the specific needs of investors, and they are known for their fast and efficient approval process. America Mortgages is a member of Global Mortgages Group (GMG), a Singapore-based real estate financing firm with offices in 12 different countries. With their global reach and extensive experience, America Mortgages is the trusted partner for investors around the world. For more information, please visit www.AmericaMortgages.com or www.GMG.asia

    Secure Your Investments Anywhere with Fast Bridging Loans

    Fast bridging loans

    As the business world becomes increasingly dynamic and interconnected, the need for fast bridging loans is more important than ever. Whether you’re a U.S. expat, a global entrepreneur, or an international property investor, securing the funds you need to move quickly on new opportunities is crucial. This is where Global Mortgage Group comes in, offering fast bridging loans to help you finance your urgent projects or property purchases anywhere in the world. What makes it even better is that personal or company financials are not required.

    Why Choose Fast Bridging Loans?

    Bridging loans are a form of short-term financing designed to ‘bridge’ gaps in your cash flow. They can be a game-changer when it comes to seizing time-sensitive business opportunities, launching new projects, or investing in residential or commercial property abroad. A bridging loan could be the financial instrument allowing you to make your next big move.

    The Advantages of Fast Bridging Loans

    1. Speed: The major advantage of fast bridging loans is, as the name suggests, their speed. Traditional loan approval processes can take weeks or even months – time that you simply might not have when an opportunity arises. Bridging loans from Global Mortgage Group can be processed quickly, providing the funds you need in a short timeframe.

    2. Flexibility: Bridging loans provides the financial flexibility you need to act on opportunities as they arise. Whether you’re purchasing property, funding a new venture, or investing in a time-sensitive project, these loans offer a short-term solution that can be repaid once your primary financing is secured or the property is sold.

    3. Ease of Application: Applying for a fast bridging loan with Global Mortgage Group is simple, with no need for personal or company financials. This streamlined process eliminates the typical paperwork hurdles, allowing you to focus on what’s most important – your investment.

    4. Global Reach: As the name suggests, Global Mortgage Group has a truly global reach. Whether you’re looking to invest in the bustling metropolis of Tokyo, the coastal areas of France, or the luxury property market of London, fast-bridging loans can help finance your ventures no matter where they are.

    Conclusion

    In an increasingly globalized world, the ability to move swiftly on investment opportunities can make all the difference. Global Mortgage Group’s fast bridging loans offer a speedy, flexible, and simple solution for short-term financing needs.

    Whether you’re a U.S. expat looking to invest overseas or an international investor seeking to purchase commercial or residential property anywhere, fast-bridging loans could be the financial boost you need to secure your next project or property investment. 

    Get in touch with us today to learn more about the structures and options of fast bridging loans at hello@gmg.asia.

    www.gmg.asia

    Is There A Minimum Age To Obtain A U.S. Mortgage?

    financial success - Short Term Loans

    No matter your age, becoming a real estate investor is frequently regarded as one of the universal signs of financial success. Although technically, in the U.S., even though there is no upper age limit for mortgage approval, there may be some age-related home-buying considerations you should be aware of.

    What’s the maximum age to qualify for a mortgage?

    Some people may wonder if there are age restrictions because a mortgage is a legally binding agreement that enables you to spread out the cost of a home. According to the Centers for Disease Control and Prevention, the average life expectancy in the United States is 78.16, so could a lender forbid you from obtaining a 30-year mortgage, for instance, if you’re 75?

    What makes the U.S. a unique mortgage market? It is illegal for a mortgage lender to discriminate against you based on age, which is good news for real estate investors regardless of age. A lender cannot refuse you credit based on your age or any other factors, including your race, color, religion, national origin, sex, or marital status, according to the Equal Credit Opportunity Act (ECOA), which was created as a result of the Civil Rights Act of 1964. Even more, safeguards are provided by the Fair Housing Act of 1968, which makes it illegal to discriminate in any residential real estate transaction. This law covers both U.S. citizens and foreign national real estate investors.

    What is the takeaway; regardless if you are 19 or 99, you can still take advantage of a 30-year fixed mortgage. This gives the savvy investor absolute assurance of what their monthly mortgage payment is and likely the opportunity for higher yields. 

    What’s the minimum age to qualify for a mortgage?

    If you’re closer to high school graduation age than retirement, can age be a deterrent when it comes to getting a mortgage? Lenders can’t deny a mortgage application solely because of age, but states have laws determining the age at which a contract can be negotiated. However, in most U.S. states, at 18 years of age, you are able to sign a binding contract, such as a mortgage. What this means for non-resident U.S. investors is once you’re 18, and assuming you can qualify for a mortgage based on the lenders’ guidelines and requirements, the U.S. could be your first opportunity to become a real estate investor.

    Keep in mind, as a non-resident U.S. real estate investor, the minimum down payment is usually 25-30%. America Mortgages has mortgage loan programs for Foreign National Investors at 30% down payment and U.S. Expats at only 25% down payment. 

    What are the advantages of a 30-year fixed U.S. mortgage, regardless of your age?

    • Mortgage interest deducibility: One of the best tax benefits of U.S. real estate investing is that your mortgage interest is considered a business expense and, therefore, deductible when your property is being used as an investment/rental. 

    • Predictability: With a 30-year mortgage, you have the comfort and safety of knowing what your mortgage payment will be over the next 30 years. As rental prices increase over time, so will your yield. 

    • No limitations on refinancing: Although some investment mortgages may have short lock-in periods; in general, as long as the property qualifies, there are no restrictions on refinancing to a lower rate if interest rates decrease.

    Why America Mortgages

    At America Mortgages, we understand that the mortgage process can be confusing and overwhelming. That’s why we’re here to help. Our team of experienced mortgage professionals can guide you through the entire process, from pre-approval to closing. We work with a panel of vetted lenders that know foreign national and U.S. expat lending. This allows our team to find the best mortgage solutions for our clients, regardless of their age or financial status.

    We can also help you understand the different types of mortgages available, such as fixed-rate and adjustable-rate mortgages, and help you choose the best one for your needs. We make the mortgage process as easy and stress-free as possible, so you can focus on finding your dream home.

    In conclusion, there is no age limit for getting a mortgage in the U.S. At America Mortgages; we’re here to help you navigate the process and find the best mortgage options for your needs. Whether you’re a foreign national, U.S. expat, self-employed entrepreneur, or a salaried investor, we can help you achieve your homeownership goals. Contact us today to learn more at hello@americamortgages.com.

    Financial Success in Real Estate

    America’s Insane-Record-Smashing Luxury Home Sales of 2022

    Bridging Finance

    The United States is home to some of the world’s most luxurious and opulent properties. From sprawling estates in the heart of Los Angeles to oceanfront estates in New York, these homes are a testament to the extraordinary wealth and success of the individuals who own them. 

    According to Mansion Global, these are the 6 most expensive homes sold in America in 2022, and they are definitely a showcase of grandeur and opulence and represent the pinnacle of luxury living.

    1. $173 million mega-mansion, South Florida

    America

    Everyone is likely familiar with the Billionaire founder of Oracle, Larry Ellison; however, you may not be familiar with his home. This massive 16-acre luxury property in South Florida was sold for a smashing $173 million. The luxury mansion has a dock, two beach cottages, a pool, a seven-bedroom guest house, and a three-hole golf course.

    South Florida, especially in the Miami area, is a popular destination for luxury real estate investors, thanks to its warm weather, beautiful beaches, and diverse culture. The South Florida real estate market is strong, and luxury properties in the area have historically appreciated over time. 

    2. $106.87 Million Mansion, South Florida

    Bridge Mortgage- Luxury Home

    What’s the most that was ever paid for a home in Miami-Dade County? Records show Hedge fund guru, Ken Griffin, stole the record from himself. Last year, he set the previous all-time high when he dropped $75 million on a home on Star Island, a man-made island in Biscayne Bay. What will Ken do in 2023? 

    Griffen’s waterfront compound overlooking Biscayne Bay was sold for $106.875 million. The mansion features 12 bedrooms, an outdoor tennis court as well as 400 feet of water frontage.

    South Florida’s location on the Atlantic Ocean and Gulf of Mexico provides many opportunities to own waterfront properties with beautiful views and beach access.  

    3. The ONE, $126 Million Mega-Mansion, Los Angeles, California

    expensive homes sold in America

    Nile Naimi took 10 years to build what was supposed to be one of the most expensive luxury homes in the world, only to run into financial issues and have the property sold at auction. Although this amazing luxury home ran into problems, The One, a Bel-Air, Los Angeles, mega-mansion, was still sold for $126 million. The property features everything and anything including a jellyfish aquarium, a “Monaco-style” casino, and a 180-foot infinity pool.

    Los Angeles is known for its beautiful weather, diverse culture, and entertainment industry, which makes it an attractive destination for luxury real estate investors. Los Angeles is known for its high rental prices, making luxury properties profitable for investors.  

    4. $101 million – Pair of Apartments, Manhattan, New York

    Short Term Bridging Finance

    In the city that never sleeps, it should be no surprise that one of the most expensive properties sold in 2022 is in New York City. 

    Paul Allen, the late Microsoft co-founder owned a penthouse and another unit on the 11th floor. The pair of luxury apartments in the Upper East Side in Manhattan, New York, was sold for a whopping $101 million. Smashing the previous record! 

    5. $73.74 Million Penthouse, New York

    Property Bridging Loan

    Many luxury properties in New York City are located in prestigious neighbourhoods like the Upper East Side, Upper West Side, and Tribeca, which can add to their appeal and value.

    One of the most expensive homes sold in 2022 was a $73.74 million penthouse along billionaires’ row in New York. The property features a private saltwater swimming pool, cabana, a wraparound terrace, a primary suite with a private terrace and a hot tub, two walk-in closets, and an en-suite bathroom with a soaking tub.

    6. $34.5 Million Mansion, San Francisco, California

    Property Bridging Loan

    San Francisco is known for its high cost of living but also for its booming tech industry, cultural diversity, and beautiful surroundings. The city is a global centre of innovation and attracts a diverse range of people worldwide. This makes it an attractive destination for luxury real estate investors. 

    The Billionaire owner of Manchester United and the Tampa Bay Buccaneers dropped a cool $34.5 million on a Beaux-Arts mansion built in 1927 in San Francisco. The luxury eight-bedroom house was built by architect Arthur Brown Jr who also designed San Francisco’s City Hall.

    America Mortgage -HNW Foreign National and U.S. Expat Mortgage Experts

    The U.S. luxury real estate market has historically been resilient, with steady demand from both U.S. expats and international buyers. Luxury properties can command higher rental prices, providing investors with a steady stream of rental income and a potential appreciation in value. Luxury trophy properties can be found all around the U.S., from well-known neighbourhoods such as Beverly Hills, Bel Air, and Pacific Heights, to the glitzy avenues of New York, Boston, or Chicago. 

    America Mortgages are experts in helping foreign nationals and U.S. expat investors with luxury real estate financing in the U.S. Our expertise in handling foreign nationals’, and U.S. expats’ often unique financial and documentation needs make the mortgage application process more streamlined. We offer flexible lending options to our high-net-worth clients, such as fixed interest-only loans or loans with non-traditional income documentation – perfect for entrepreneurs, business owners, and HNW individuals. 

    Schedule a call today with one of our U.S. mortgage specialists to start your journey today! www.calendly.com/u-s-mortgages

    For more details, visit us at www.americamortgages.com or email us at hello@americamortgages.com.

    Looking for international mortgage loans globally, including the U.K., Australia, Canada, France, Portugal, Spain, Italy, Singapore, Hong Kong, Japan, Thailand, Philippines, Dubai, and other locations? Visit our parent company Global Mortgage Group (GMG), at www.gmg.asia

    Marry the Property, Date the Rate

    Invest in U.S. real estate - Bridge Loan

    What will the 2023 U.S. real estate market look like?

    Even a crystal ball or Nostradamus may have difficulties with this one. Ultimately, the outlook for the real estate market in 2023 will depend on a range of economic and market forces, and it is difficult to predict with certainty. The one certainty we can predict, as the market goes from a sellers-market to a buyers-market, is that there will be fantastic opportunities for investors with a long-term hold strategy. Low overall inventory and skyrocketing rental yields will keep demand strong for properties, which can lead to an appreciation in value over time. 

    For foreign nationals and U.S. expats looking to invest in U.S. real estate, now may be an excellent time to take advantage of these favourable market conditions. Although interest rates are higher in recent times, loan programs are more creative and aggressive, including 40-year fixed loan terms, which have given real estate investors higher yields than when the market was in a buying frenzy, and rates were sub 3%. 

    America Mortgages did their annual end-of-the-year group meeting of our loan officers around the world to gauge what clients are saying regarding their 2023 strategy. The best answer came from a client in Hong Kong that owns hundreds of U.S. rental properties, 387 to be exact. His advice is; “Instead of trying to time the market, it is generally a better strategy to focus on your own financial goals and needs when it comes to real estate investing. This may involve finding properties that meet your budget, your lifestyle or investing in real estate as part of a long-term financial plan. When people are unsure, it’s an opportunity for the rest” Mic drop! 

    Why invest in U.S. real estate?

    One of the main benefits of investing in U.S. real estate is the potential for long-term appreciation. As the value of a property increases over time, the investment can generate significant returns for investors. This is particularly true in markets with strong demand for housing, such as major cities like New York, San Antonio, and Los Angeles, or popular vacation destinations such as Hawaii, Las Vegas, and Florida.

       

        • Appreciation: Real estate prices can increase over time, which means that property investment could potentially appreciate in value.

        • Passive income: Renting out a property can provide a steady stream of passive income, which can be especially attractive for investors who don’t want to be actively involved in managing the property.

        • Diversification: Investing in real estate can help to diversify an investment portfolio, which can help to reduce risk.

        • Leverage: It is possible as a non-U.S. resident to purchase a property with a mortgage, which means that the investor can leverage the bank’s money to make the purchase. This can allow an investor to acquire a larger property or more properties than they might be able to afford with cash.

        • Tax benefits: There may be tax benefits to investing in real estate, such as the ability to write off certain expenses related to the property, such as mortgage interest, property taxes, and repairs.

      Marry the property. Date the rate. 

      Buying a property in the United States and refinancing when interest rates go down can be a smart financial move. The first step is to secure a property. Once you’ve completed the purchase, you may choose to consider refinancing when interest rates go down. Refinancing involves taking out a new mortgage to pay off your existing one, potentially at a lower interest rate, and releasing equity. This can help you potentially save money on your monthly mortgage payments and give you additional funds to purchase more property or use it towards other investments. 

      Opportunity cost: If an investor waits for the “perfect” time to enter the market, they may miss out on opportunities to make profits in the meantime.

      Yield. Yield. Yield. 

      Another advantage of investing in U.S. real estate is the ability to generate passive income through rental properties. By owning a property and renting it out to tenants, investors can receive regular income without actively working for it and the ability to use the property as a vacation home or place to retire. This can be a great way to diversify an investment portfolio and generate additional income streams.

      The demand for rental properties in the U.S. has been strong in recent years, and this trend is likely to continue in the coming years. Although not required, for foreign nationals and U.S. expats who have ties to the United States or simply want to have a presence in the country, owning a property can be a great way to establish roots for future endeavours, such as your children attending university.

      “Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.” – Russell Sage.

      AM Concierge Service

      If you’re looking to purchase property in the United States, America Mortgages’ concierge service is a free service that can provide valuable assistance throughout the process, such as finding a realtor and obtaining property insurance.

      The concierge service can help you navigate the complex process of purchasing property in the United States, from finding the right property to securing financing. Whether you’re a foreign national or a U.S. expat, the team at America Mortgages can help you navigate the unique challenges and opportunities that come with purchasing property in the U.S.

      As a multi-award-winning company, our only focus is providing U.S. mortgage financing for Foreign Nationals and U.S. Expats. 100% of our clients are living and earning their income abroad.

      If you are interested in learning more about investing in the U.S. and the services offered by America Mortgages, contact us at hello@americamortgages.com

      www.americamortgages.com

      What does JP Morgan and Blackstone’s multi-billion dollar U.S. real estate buying spree mean for you?

      JP Morgan - Term Financing

      More than $1 billion worth of single-family rentals will be acquired by JPMorgan Chase & Co.’s asset management division, while Blackstone is looking to invest $120 billion in real estate. Notably, most of Blackstone’s investment is in REITs. This is a sign that the current U.S. housing market hasn’t scared investors away from suburban housing.

      Here’s why you should care

      This move by JP Morgan and Blackstone is the most recent sign that big investors are resolute by the unstable real estate market.

      That’s why all investors, though particularly those looking to invest in U.S. real estate, should be very interested in JP Morgan & Blackstone’s real estate investment spree. Institutional investors have many advantages over retail investors. They have the backing of sometimes billions of dollars that allow them to accumulate properties at a high rate and profit from the rental income. They can also set the tone for the specific market by acquiring inventory where they believe rental yields will be the highest. 

      If you are curious about institutional buyers and how buying single-family homes affect average investors, this article discusses why institutional investors buy single-family homes and what it means for you this year.

      Coronavirus and real estate investing

      The Coronavirus pandemic changed how we live, work, and act in many different ways. For instance, most corporate jobs now come with remote-optional benefits that allow employees to work from anywhere – including their own homes. This means that the demand for housing is increasing and contributing to a major change in home ownership.

      Institutional investors continue buying real estate in major metropolitan areas such as Los Angeles, Dallas-Fort Worth, and New York City. In particular, institutional buyers target single-family homes, which now make up over 13% of the residential real estate market.

      U.S. housing market shortage

      How bad is the U.S. housing shortage? According to Nadia Evangelou, the Senior Economist of the National Association of Realtors, “There doesn’t appear to be an end in sight.” Despite rising interest rates, the current shortage will likely worsen to more than a 5.5 million home shortage. With developers pulling back due to market uncertainty, rental yields are expected to see all-time highs in many markets. Large investors such as JP Morgan and Blackstone see these as opportunities; perhaps so should you. 

      What does it mean to you as an individual investor?

      Institutional investors bought almost 25 percent of all single-family homes sold last year. So how can you compete with institutional investors in today’s market? Below are our top tips for competing with big investors today:

      Get pre-approved

      As a U.S. expat or foreign national, in order to compete with other buyers, one of the best ways is to get pre-approved for the mortgage before you start your home search. This shows the seller that you’ve had the foresight to get a mortgage in place prior to looking for a property. With America Mortgages, you can get pre-approved within 48 hours, there is no application fee or charge for pre-approval, and we approve over 97% of all applications. 

      Write a note to the seller 

      Although this may seem “quirky,” in some markets, intense competition forced buyers to do anything they could to stand out among sometimes dozens of other offers on the same home in 2021. Writing a handwritten note to the seller is one way that buyers try to compete with institutional investors by persuading the sellers to choose them over others.

      Work with a realtor that focuses on investment properties

      Just as it’s important to work with a mortgage company that understands clients living outside the U.S. buying investment property in the U.S., a realtor that understands this is crucial. These realtors know the properties with the best yield potential in neighbourhoods with the best tenant profile. America Mortgages’ Concierge Service is a free service created to put our clients in touch with vetted realtors in specific markets to assist with finding a property that matches their requirements. 

      Location. Location. Location. 

      It may be cliché, but location is key when buying properties. Following similar locations that large institutional investors are looking at, gives you similar insight without the team of researchers and analysts they employ. Homes in cities that have little room for expansion tend to be more valuable than in cities that have a lot of room. Factors such as accessibility and proximity to parks, schools, railways, and public transportation can increase property values and rental yields. 

      Tricks of the trade

      Knowing what works with an offer to purchase real estate is important. There are often clauses or requests that can be added to a contract to lessen the cost out of pocket for the buyer. As an example, seller concession is a common clause used by many U.S. real estate buyers but is not well-known to global real estate investors. If a seller concession is approved, the buyer can significantly reduce the cost out of pocket as the seller of the property will pay for a lot of the buyer’s closing costs. These funds can be used to “buy down” the interest rate, make required improvements to the property, or as simple as paying for the appraisal report. 

      Date the rate. Marry the property.

      The idea is relatively straightforward. You buy a home you really want, regardless of available financing terms.

      The mortgage rate you receive, even if it’s high today, isn’t your forever rate because you can always refinance down the road.

      There will always be a time to refinance in the future once mortgage rates go down again. The property, on the other hand, may not be available. It’s a buyer’s market now. Take advantage of it.

      Why work with America Mortgages?

      As a company, America Mortgages’ only focus is providing U.S. mortgage financing for U.S. expats and foreign nationals. 100% of our clients are living and working abroad but buying U.S. real estate. We know exactly what is required to ensure your mortgage journey is stress-free by qualifying 97% of our clients for a U.S. mortgage.

      Schedule a call with our U.S. mortgage specialist to determine your options today.

      Top 10 U.S. Cities with the Highest Rental Yield

      Mortgage Bridge Loan

      Cities across the U.S. have seen some of the highest rental yields to date. From 2020 to 2021, home sales prices rose approximately 20%. That’s great news for real estate investors that held property pre-pandemic, but with low inventory and rising rates forcing the owner-occupied borrowers out of the market, opportunities for high-yield U.S. investment properties are abundant. Here are the top 10 U.S. cities with the highest rental prices and most affordable properties.

      1. Houston, Texas 

      The lack of affordable single-family homes has created a demand for rental properties in Houston. Its strong job market makes it a solid play for investors of these types of properties. 

      Average Purchase Price: $496,930 

      Average price/sqft: $155 

      Average Rental Income: $3,455 

      2. Arlington, Texas 

      Arlington, a city in north Texas, is ranked 12 on the list of the top places in Texas to purchase a home, according to Policygenius. At $275,745, the average house value is 6% more than the national average, and its five-year growth rate is 63.6%. 

      Average Purchase Price: $493,700  

      Average price/sqft: $174 

      Average Rental Income: $3,035 

      3. Tampa, Florida 

      Investors were responsible for purchasing 25% of homes sold in Tampa in the summer of 2021. Average rents have had the highest spike in the country, and impressive job growth in white-color professions shows no signs of slowing.  

      Average Purchase Price: $508,725  

      Average price/sqft: $252.65 

      Average Rental Income: $3,004 

      4. San Antonio, Texas 

      San Antonio could be an excellent investment. The city boasts affordable property prices and excellent average rental yields per month. In 2020, approximately 40% of individuals looking to rent were out-of-city transplants, which has mostly stayed the same.

      Average Purchase Price: $514,975  

      Average price/sqft: $170.53 

      Average Rental Income: $2,951 

      5. Charlotte, North Carolina 

      Charlotte, North Carolina’s robust employment market, four-season climate, and proximity to the beach and mountains make it a top destination for real estate investors looking to earn rental income.  

      Average Purchase Price: $498,750

      Average price/sqft: $173 

      Average Rental Income: $2,796 

      6. Colorado Springs, Colorado 

      Colorado Springs is known to be one of the most substantial long-term real estate investments in the U.S. Since the last decade, Colorado Springs’ typical property prices have increased by around 143.7% based on Zillow’s Home Value Index.  

      Average Purchase Price: $487,475  

      Average price/sqft: $198 

      Average Rental Income: $2,770 

      7. Orlando, Florida 

      Home to Disney World, Universal, and a fantastic climate, 60 million people visit Orland every year. Some of the best beaches are a drive away, and the city is famous for its gold courses, nightlife, and shopping malls.  

      Average Purchase Price: $482,085  

      Average price/sqft: $235 

      Average Rental Income: $2,739 

      8. Cincinnati, Ohio 

      Cincinnati has long been regarded as an affordable city in general. In fact, Cincinnati was ranked as the 14th most affordable U.S. city to live in by U.S. News & World Reports in 2017. In addition to the generally low cost of living, Cincinnati real estate is more affordable than in many other major metropolitan areas. Cincinnati has become one of the go-to markets for out-of-state real estate investors looking to buy properties at a good price and still earn a reasonable rate of return, and prices have increased as a result. 

      Average Purchase Price: $474,750  

      Average price/sqft: $171 

      Average Rental Income: $2,734 

      9. Jacksonville, Florida 

      Jacksonville benefited from Florida’s decision to loosen pandemic restrictions more quickly than other states. The city has one of the highest-performing economies in the country and a dwindling unemployment rate.  

      Average Purchase Price: $501,850 

      Average price/sqft: $187 

      Average Rental Income: $2,564 

      10. Huntsville, Alabama 

      Listed as one of the top cities to purchase a rental property for cash flow in 2022, Huntsville is known for its rent growth value. Strong employment growth and low housing costs have led to equity growth of about 24%, 22% more than the national average. 

      Average Purchase Price: $487,250  

      Average price/sqft: $171 

      Average Rental Income: $2,436 

      If we assume the purchase price of each city’s house to be $500,000, here’s the rank based on the highest rental income: 

      Top 10 U.S. Cities

      With creative loan options offering fixed terms for interest-only loans, buying down of interest rates, and long-term capital appreciation, investing in U.S. cities with the highest rental income gives you significant short-term and long-term possibilities.

      Ready to reap the benefits of investing in the U.S.? 

      As a company, America Mortgages’ only focus is providing U.S. mortgage financing for U.S. expats and foreign nationals. We know exactly what is required to ensure that your mortgage journey is stress-free. We qualify 97% of our client’s for a U.S. mortgage. What are you waiting for? Schedule a call with our U.S. mortgage specialist to find out your mortgage options. hello@americamortgages.com 

      Go beyond ordinary banking. AM Real Estate Bridge Loan

      Bridge loan

      What are bridge loans?

      A bridge loan is a type of asset-based, short-term loan, typically taken out for a few months to a couple of years pending the arrangement of longer-term financing or an exit, such as the sale. It is used to ‘bridge’ the gap during times when financing is critical but not readily available. 

      Bridge loans let homebuyers take out a mortgage against their current home to make the down payment on their new home. A bridge loan may also be a suitable choice for you if you want to purchase a new home before your current house has sold. This financing structure may also be beneficial to businesses that need to cover operating costs while waiting for long-term funding.

      Introducing AM Bridge!

      AM Bridge: A liquidity tool once reserved for the wealthy is now available for everyone!

      Real Estate investors are often asset-rich but cash poor. On paper, their net worth may be significant, but their wealth can be tied up in real estate or other businesses. Accessing such funds might mean sacrificing a stake in their business or surrendering some influence over its future – neither of which may be appealing.

      It is not always the case that a real estate investor has a few hundred thousand dollars just sitting in the bank readily available to fund a property immediately. Even if they do, they may not wish to tie all their cash upon one property. In today’s market, the property that investors want could be in high demand and needs to be acted on quickly; these could be higher-yielding investments that need immediate funding. Having access to large sums of cash quickly and easily is what HNW investors have had at their disposal for decades. America Mortgages has now made this powerful liquidity tool available to everyone.

      How is it used?

      Here are some popular uses of “Bridging” Loans:

      – Filling the contingency sale of an old property before you can purchase the new property. You can take a Bridge Loan and use your old house as collateral for the loan. The proceeds can then be used to pay a down payment for the new house and cover the costs of the loan. In most cases, the lender will offer a bridge loan worth approximately 80% of both houses’ combined value.

      – To purchase based on the asset value of the new build so the borrower can meet the final payment before delivery.

      – For the initial purchase until entitlement or for refinancing after a cash purchase until entitlement. 

      – To purchase greenfield land to begin commercial development. Once certain stages of development have been completed, it’s easier to obtain traditional bank financing.

      – Cash-out Bridge Loan for short-term personal or business use.

      The Market

      The pandemic has created a boom in the bridge loan market in several ways. 

      Firstly, it has created an economic environment filled with uncertainties, and as a result, more businesses need capital as soon as possible and can’t afford to wait for a traditional loan. They will thus turn to bridge loans. 

      Secondly, cash is king these days. With the current value of the U.S. dollar, it may be time to look at accessing liquidity quickly and easily. Normally regardless of your current financial situation, a bridge loan gives you quick access to up to 70% of your property value with simple, easy-to-understand terms. 

      Thirdly, there has been an accelerated trend of people migrating to Sunbelt cities due to greater job opportunities. This has driven up rents in these cities – the Phoenix area had the biggest rent increase in July, up 27% from a year ago. Due to the profitability of the rental trade, more developers and businesses are looking to acquire multifamily rental units. Short-term commercial bridge loans will provide them with the needed flexibility to take on such assets while they look for permanent financing options. This will help businesses get their assets to perform at maximum potential. 

      The Problem

      When an American Mortgage bridge loan specialist gets a request for short-term financing, they ask three things;

      •  Where is the asset?
      •  What is the value and the outstanding debt?
      •  What situation are you trying to solve?

      Number 3 is the most crucial and often the hardest to rationalise. Even the wealthiest people have used short-term bridge financing to access liquidity even when “conventional” options are still possible. This is mainly due to the time and effort required to obtain long-term financing. Cash flow, credit issues, or asset use may prohibit a “conventional” bank loan. When time is a factor in a transaction, it is important to see the opportunity cost of not closing quickly or obtaining a simplified equity release. 

      Our Solution 

      Typically, the timeline for traditional bank loan processing from origination to closing is longer than most borrowers prefer for a time-sensitive funding solution or if the project lacks sufficient stable cash flow. The short-term nature of bridge loans generally allows alternative lenders to provide an approval decision and funding with greater speed than a more traditional lender. At America Mortgages, we’ve funded loans in as little as a couple of days since the initial contact. 

      To allow for such a speedy funding process, the sponsor’s expected property value and experience in executing the business plan are the determining factors in the decision-making process. For this reason, the loans are commonly non-recourse, which is another benefit to the borrower. 

      Bridge loans are often the preferred funding option for uses such as:

      – Highly structured transactions 

      – Discounted note payoffs

      – Lease-up stabilisation 

      – Redevelopment of existing properties

      – Repositioning of a tired or underperforming asset

      – Property acquisitions with a short closing timeline (or challenges on the property or sponsor)

      – Recapitalisations/Debt Restructuring or Partner Buyouts

      – Other uses on a case-by-case basis depending on borrowers’ specific funding needs, where traditional funding sources like banks or insurance companies will have a hard time approving such loan requests.

      – Lending to foreign nationals with a “same-as-cash” basis 

      Short-Term vs. Long-Term 

      Unlike short-term financing, longer-term financing is susceptible to the regulatory hurdles associated with securing long-term fixed-rate mortgages. This is why bridge loans are often provided by unregulated lenders, family offices, or in some cases, HNW investors. In addition to the regulatory scrutiny, banks or insurance companies require, the sponsor’s credit history and financial strength also take a front seat in the credit decision for long-term loans. Keep in mind America Mortgages will never work with “lend-to-own” investors and lenders. Our goal is to find you a solution that works with your situation with a long-term solution and exit from the bridge loan. 

      While bridge loans are the preferred option for many specific financing needs, several downsides come with short-term financing that is meant to fund projects. When assets need work, lenders will consider these higher risks and, therefore, charge higher interest rates. 

      Additionally, bridge lenders generally do not exceed 70%-85% of the property cost basis to limit their financial exposure. However, this leverage is higher than traditional lenders would advance for the same project. This is because bridge lenders rely on the sponsor to fix the issues, which made the property ineligible for long-term financing in the first place. This enables the asset to become stabilised and ready for exit through a sale or by refinancing the property through traditional channels.

      As a company America Mortgages’ only focus is to provide U.S. mortgage financing for foreign nationals and U.S. expats. 100% of our clients are working and living outside the U.S. For more information on AM Bridge, please send an email to hello@americamortgages.com.

      www.americamortgages.com