RG 008 - Financing Options for International Investors with Matthew Owens
I am chatting to Matthew Owens from OCG Properties about how international investors can obtain financing for their real estate investments, and we examine the benefits of turnkey properties. \n\nShow Notes:\nIn case you missed it, here are some of the highlights from our conversation with Matthew Owens from OCG Properties:\n\nAbout Matthew:\n-\tFounder of OCG Properties www.ocgproperties.com a company that specializes in acquiring cash flowing real estate investments for foreign investors. \n-\t Licensed CPA \n-\tSpecializes in value-add residential and multi family real estate investments \n-\tPurchased and renovated over 450 properties across the U.S.\n\nFun Fact:\nMatthew is recently a new dad, and this new responsibility has further inspired him to creating long term passive income to help him retire earlier and spend more time with his family. \n\nNuts and Bolts: \nTurnkey properties and financing options for international investors\n\n1.\tOCG properties produce \u2018turnkey\u2019 properties for their international clients. \na.\tFinding under market cash flowing properties (distressed or run down)\nb.\tComplete renovations to make theses properties \u2018rent-ready\u2019\nc.\tFind tenants to rent the properties (get signed rental agreements)\nd.\tHave their local property management team oversee the day to day operations \ne.\tThen OCG on-sells this \u2018turnkey\u2019 cash flowing property to their international investors; or form a joint ownership with their clients if needed.\n\n2.\tOCG saw the need to create a financing structure for international investors who want to buy U.S. real estate.\na.\tHow does it work?\nb.\tInternational investors are required to put down 50% of the purchase price (PP);\nc.\tOCG will sell one of their turnkey properties to the international investor with the remaining 50% of the (PP) as a loan;\nd.\tOCG Properties becomes the bank that lends the international investor the additional money they need to purchase the property;\ne.\tOCG will only lend on the properties they find and on sell (bringing the financing operation in-house);\n\n3.\tTypically U.S. lenders look at international investors as more risky as they are so far away; with OCG, they have already sourced the property, they know the quality of the investment so they are confident they can provide 50% financing to help international investors purchase a great cash flowing asset. \n\n4.\tHow do you qualify as international investor?\na.\t50% down in cash \u2013 bank statements proving investor have the required capital;\nb.\t2 years of foreign tax statements;\nc.\t3 months of recent pay stubs;\nd.\t1003 loan application (standard loan form here in the U.S. it\u2019s a summary of your income and expenses of your daily life);\n\n5.\tInternational Tax Treaties: OCG Properties will help international investors understand their countries tax treaty with the U.S. as there are certain withholding requirements \u2013 OCG will put you in contact with the best U.S. tax advisors that can help you understand what is involved; simple and easy! \n\nContact Information for Matthew and his team:\ninvest@ocgproperties.com\n+1 424-757-4680\nManhattan Beach, CA\n\nWho is ready to get carking on these deal?!\n \nReady, Aim, Fire! Happy Investing!