# Financing a New Construction Project with a Loan from an American Lender & a Real Deal Example - Noam Segal - Entrepreneur of the Week - Post 5+ 6 #EntrepreneuroftheWeek #RealEstate #Flips #BuyAndHold #BRRRR #Mortgage #Investors #RiskManagement #NewConstruction Hi everybody, Today I want to talk about getting a construction loan from an American lender.…
Market Overview 2019
Median Home Income:
Median House Price:
Median monthly rent:
Atlanta, nestled at the foot of the low mountains of the Appalachian Mountains, is the third largest metropolitan area in the southeast. Over the decades the metro area has experienced rapid population growth to suit the demand for new services created, many of them in particularly lucrative industries like manufacturing. Today Atlanta's growth has slowed slightly but there are still good investment opportunities if you know where to look. Continue reading and / or watch the video above for more information on this exciting real estate market.
Why invest here?
Atlanta has experienced significant job growth and recent population growth, both of which are good signs for a strong real estate market. For now, Atlanta still offers real estate income ™ around $ 138,000 (and in many cases much less) that will rent about 1% of the purchase price, and also has a high chance of being appreciated.
Trends and Statistics of Albuquerque 2018-2019
In this section you will learn about the key factors that will make Atlanta one of the most powerful real estate markets in 2018, including: Reasonableness, Cash Flow and Stock Growth Potential. Check out the housing, population and employment trends in Atlanta tabs to learn more.
Sources of information:
- Real Affiliate Data of a Real Wealth Network
- "The 1st best city to buy property for rent" - Internal businessman
- "# 3 The best city for young entrepreneurs" - Forbes
- "The 3 leading technological sticks of tomorrow" - Atlanta is restrained
- “# 4 Largest City in 2016” - CBS46
- "The 9th best place for business and career" - Forbes
- “# 13 Best Big City for Jobs” - Forbes
- "# 21 Largest American City" - MSN
Financing a New Construction Project with a Loan from an American Lender & a Real Deal Example - Noam Segal - Entrepreneur of the Week - Post 5
#EntrepreneuroftheWeek #RealEstate #Flips #BuyAndHold #BRRRR #Mortgage #Investors #RiskManagement #NewConstruction
Today I want to talk about getting a construction loan from an American lender.
Okay, so I'll start by saying that this is a really not a simple process for an entrepreneur who does not have an SSN or an American partner.
If you are able to find a body that is willing to give a foreign investor a construction loan, the lender will want to check on you both financially and in terms of real estate experience for you. This will directly affect the terms of the loan he will be willing to give you.
In addition the lender will also require to check with the operating contractor,
He will ask for:
• His company name
• Contractor's license
• Examples of projects he has carried out in the last two.
He will ask you for tax returns from previous years, your and your company's capital statement, a printout of your bank account and more.
After you go through this step you will need to view the project details:
• House data you want to build such as size, number of rooms, baths, parking and more
• Architectural plan of the house you will build.
• An orderly budget for all construction
• General insurance of the contractor
• BUILDER RISK specific insurance for the current project
• The lender will send an appraiser who will assess the value of the home after it is built.
After going through all this bureaucracy usually anyone who has over 20 percent in the company will need to sign the loan, if you are not in the US you will need to use a POA and apostille power of attorney or find an American notary in the country (there are a few).
The lender will never give you the full cost of the project usually between 70-80 percent and will require you to put your money first before he puts his money.
There is no doubt that the process can be exhausting and sometimes everything seems to fall apart (it happened to us several times especially during the Corona period due to bureaucratic matters) but when it succeeds it fundamentally changes the returns of the project.
Two other aspects that I really like to get loans for are:
• The lender is actually another layer of protection in my tests and usually the appraiser is pessimistic, we almost always sold well beyond his forecast. If the lender is willing to give money then the deal makes sense.
• The loan is never given in advance, the money you will receive is against the things actually done and the correlation to the budget you submitted to them. This is another way to monitor the contractor's progress.
In the photos - one of the projects I did with a loan from an American lender.
In my next post I will give a numerical example of a project taken with an American loan without investors.
Continue reading on our site:
my previous post I talked about conditions for getting a loan for entrepreneurs who do not have an SSN.
So as most of you know house prices have risen significantly and so have wood and various building materials.
Finding real improvement deals is not at all simple and within that also construction deals.
Today I will show you a real deal I made right at the beginning of Corona April 2020 and used a loan from an American private lender to carry out the construction.
The house is on a basement two stories above. House size 2634 SQ (without basement). There are 5 bedrooms and 3 bathrooms.
The price of the plot includes closing expenses - $ 61000
Construction price - $ 281500
Selling price - $ 420000
Brokerage expenses - $ 21000
Closing expenses (Tachles goes to the buyer's mortgage) - 3500
Total profit - $ 53000
Continue reading on our site:
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Known primarily for its annual balloon fiesta and as part of AMC's performance show "Breaking Bad," Albuquerque, New Mexico, is a metropolitan area rich in culture and naturally beautiful. Albuquerque is also one of the largest cities in the southwest of the city, with a diverse population and some of the leading high-tech research enterprises in the country, including National Sandia Laboratories, Intel and the University of New Mexico. At the same time, its cultural traditions continue to be an integral part of daily life in the city. With one foot in the past, one foot in the present and two eyes for the future, Albuquerque is a fascinating place to visit and an even better place to call home. (Source: (https://www.visitalbuquerque.org/about-abq/history/)
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Lior Lustig CEO - Overseas Investors Forum
Lior Lustig is an experienced real estate investor who has been active in the field in Israel and the United States since 2007. Lior has extensive experience in purchasing and managing single and multi-family properties.
Lior currently manages the Real Estate Investors Forum, which owns a brand and interest in the real estate field, the Facebook group and the "Real Estate Forum in the United States" website. Lior is versatile in a wide variety of investment markets in the United States and provides solutions to investors through the company.