Investor Financing Q&A
The questions borrowers and brokers actually ask.
Plain-English answers to the commercial real estate financing questions you'd otherwise ask ChatGPT. Bridge vs construction. DSCR qualification. Mezz. Broker fee splits. No-solicit. How fast a bridge actually closes.
For Borrowers
Bridge, construction, DSCR, mezz, and how they fit together.
How do I get a CRE bridge loan for a multifamily acquisition?
Multifamily bridge loans close in 7–14 days with light docs. You need property address, purchase price, sponsor track record, and an exit strategy (sale, refi, or stabilization). Typical terms: 8–12% interest-only, 12–24 months, 70–80% LTV. Submit the deal, get a term sheet in 24–48 hours, close inside two weeks.
4 min read
What is the difference between a bridge loan and a construction loan?
Bridge loans finance an existing property to acquire, reposition, or stabilize it before refinancing or selling. Construction loans finance the building of a new property (ground-up) or a heavy gut renovation, with funds released in draws as work progresses. Bridge: 7–10 day close, 8–12% IO, 12–24 months. Construction: about two weeks to close on a clean file, typically 9–12% interest-only on the drawn balance, 12–24 months with draw schedule.
5 min read
How does DSCR loan qualification actually work?
DSCR loans qualify the property, not the borrower. The lender divides the property's net operating income by the annual loan payment, that ratio (DSCR) must be 1.0x to 1.25x or higher. No W-2s, no tax returns, no personal income docs. Available 30-year fixed up to 80% LTV. Used by buy-and-hold investors, portfolio scalers, and self-employed borrowers.
5 min read
How fast can a CRE bridge loan actually close?
A clean CRE bridge loan can close in 7 to 14 business days from term sheet acceptance. The path: term sheet in 24–48 hours, appraisal ordered week 1, title and environmental in parallel, closing day 10–14. Deals slip when appraisal comes in low, environmental triggers Phase II, or sponsor financials don't match the file. Clean files close fast.
4 min read
Can I refinance a bridge loan into a DSCR loan?
Yes, refinancing a bridge loan into a DSCR loan is one of the most common exits in residential investment property finance. The bridge buys you time to renovate or stabilize the property; the DSCR refi locks in long-term financing once the property cash flows enough to qualify. Standard path: bridge for 6–18 months, then DSCR refi up to 75% LTV on a 30-year fixed.
4 min read
What is mezzanine financing in commercial real estate?
Mezzanine debt (mezz) is subordinate financing that sits between senior debt and equity in the capital stack. It's secured not by a mortgage on the property but by a pledge of equity in the property-owning entity. Rates run 11–15%, higher than senior debt and lower than equity. Used to stretch leverage without raising more equity, common on value-add multifamily, hotel, and development deals.
5 min read
How does a construction loan draw schedule actually work?
A construction loan funds in stages tied to completion milestones rather than at closing. The lender releases each draw after an inspection verifies the milestone is complete. Typical schedule: 5–8 draws over a 12–24 month build, each released within 5–10 days of inspection approval. Interest accrues only on the drawn balance, funded by an interest reserve held back at closing.
5 min read
What is the minimum DSCR to qualify for a rental property loan?
Most DSCR loan programs require a minimum DSCR of 1.0x to 1.25x. At 1.0x the property's NOI exactly covers the loan payment. At 1.25x the property earns 25% more than the payment. Some programs accept sub-1.0x DSCR ("no-ratio") with lower LTV and higher rate. Higher DSCR unlocks better pricing and higher leverage.
4 min read
Which lenders offer CRE construction loans up to 85% LTC?
85% LTC construction loans exist but are not commodity, they're available from a narrow set of private debt funds, specialty construction lenders, and a few balance-sheet banks for sponsors with strong track records. Expect 9–12% blended pricing (often senior + mezz stack), recourse or partial recourse, and a requirement of 2+ comparable completed projects. Most institutional banks cap at 65–75% LTC; getting to 85% means accepting structure (mezz, preferred equity, or partial recourse) or paying a private-capital premium.
5 min read
How do I find a fix and flip lender for a $2M Miami project that can close fast?
$2M is the sweet spot above the hard-money pool (which caps around $1M) and below institutional bridge minimums ($3–5M), so a narrow set of private and specialty lenders dominate it. In Miami, expect 10–12% interest-only, 70–80% LTC including rehab, 12-month term, 7–14 day close if your docs are clean. Insurance pricing post-2024 is the biggest delay risk; condo conversions need special diligence; hurricane code compliance is non-negotiable.
5 min read
Which lenders finance California mixed-use property at high LTC?
High-LTC California mixed-use is a structurally hard product because of CEQA timelines, rent control on the residential portion, and seismic retrofit obligations, but it's financeable. Stabilized mixed-use lands 70–75% LTV on agency-eligible deals (Freddie SBL, Fannie Small Loans) and 75–80% LTV on bank debt for the right sponsor. Construction or value-add mixed-use can reach 75–80% LTC through private debt funds and a few specialty California lenders. Density bonus and transit-oriented development structures can stretch LTC further on entitled deals.
5 min read
Where can I find a CRE financing broker that handles deals from $1M to $50M nationwide?
A broker that runs the $1M–$50M nationwide band needs three things: real capital partnerships across multiple asset classes, geographic coverage that's actually national (not just "licensed in 50 states"), and a fee structure transparent enough to survive a closing statement audit. Most brokers claim this range; few actually execute across it. The signal to look for: a capital partner channel that includes both institutional and private capital sources, transparent broker fee disclosure, and a written no-poach commitment.
5 min read
What is loan-to-cost (LTC) vs after-repair value (ARV) on a fix and flip loan?
Loan-to-cost (LTC) measures the loan against what the project costs you: the purchase price plus the renovation budget. After-repair value (ARV) is what the appraiser says the property will be worth once the work is finished. A fix and flip lender sizes the loan on both and lends the lower of the two results. LTC protects the lender against you having too little cash in the deal; the ARV test protects against a project that costs more than it will be worth. Passy Capital finances fix and flip and renovation projects up to 90% LTC, from $1M to $5M, for US and foreign investors alike, with the ARV check applied to every deal.
5 min read
How do I finance a build-to-rent project of single family homes under $5M?
In two stages. A ground-up construction loan funds the land and the build, released in draws as the homes go up; Passy Capital finances construction up to 85% of total cost (LTC). Once the homes are finished and leased, a DSCR loan up to 80% LTV refinances the construction loan and qualifies on the rents, not on your personal income. Under $5M usually means a handful of single-family homes or townhomes on one site or scattered lots, which fits a single construction facility and then one DSCR loan per home or a portfolio loan. Plan the DSCR exit before you break ground: the rents you can prove at the end decide how much of the construction loan you can refinance. US and foreign investors borrow on the same terms, the foreign investor through a US LLC.
5 min read
What does a lender need to approve a ground-up spec home construction loan?
Six things: control of a buildable lot, approved or approvable plans and permits, a line-item budget with a contingency, a qualified builder (your own track record or a licensed general contractor under contract), an as-completed value supported by comparable new sales, and your equity plus enough liquidity to carry the project to sale. Experience with similar builds drives how much leverage you get. Passy Capital finances ground-up construction, including spec homes, up to 85% of total cost (LTC), from $1M to $5M, with draws released as the work is inspected, for US and foreign investors on the same terms.
5 min read
How much experience do I need to get a fix and flip or bridge loan?
There is no single minimum: first-time investors do get fix and flip and bridge loans, but experience is one of the main levers on how much the lender will lend and on what terms. Lenders count completed projects of a similar type and size, verified by settlement statements or deeds, and they read it together with your credit, your liquidity and the deal itself. More verified experience generally means higher leverage, a larger renovation budget allowed relative to the purchase, and fewer conditions. A strong deal and a seasoned contractor can partly compensate for a thin track record. Passy Capital finances fix and flip and renovation up to 90% LTC and bridge up to 80% LTV, from $1M to $5M; where a given file lands within those maxima depends on these factors.
5 min read
Can I get a bridge loan to buy land and build, then refinance into a DSCR loan?
Yes, but usually not with a bridge loan alone. A bridge loan is sized on an existing property's value, and raw land supports little leverage on its own. The common structure is a ground-up construction loan that funds the land purchase and the build together (Passy Capital finances construction up to 85% of total cost), or a short bridge on the land if you need to close before plans and permits are ready, rolled into a construction loan once they are. When the homes are finished, have certificates of occupancy and are leased, a DSCR loan up to 80% LTV refinances the construction debt on the strength of the rents. Plan the refinance before you buy the land: it is the exit every lender in the chain will underwrite.
5 min read
How fast can a bridge loan on a $1M to $5M investment property close?
About two weeks on a clean file. With Passy Capital, a term sheet comes back in 24 to 48 hours after we receive the deal, and closing follows in about two weeks once it is signed, provided the appraisal, title and the borrowing entity are ready. The loan itself is rarely the bottleneck. Files slip on the appraisal (access, or a value below the contract price), title issues, insurance, and an LLC that is not formed, not in good standing or without a bank account. For a foreign investor the item to start first is the LLC's EIN, which a non-resident cannot get online.
4 min read
Bridge loan vs hard money loan: what is the difference?
Often very little. Both are short-term, interest-only, business-purpose loans secured by real estate and underwritten mainly on the property. "Hard money" usually describes a private lender lending on the asset with light borrower checks and higher pricing; "bridge loan" describes the purpose, carrying an investor from purchase to sale or long-term refinance. Compare rate, fees, leverage and speed, not the label.
4 min read
Can I get a bridge loan without personal income verification?
Generally, yes. A business-purpose bridge loan on a non-owner-occupied investment property is underwritten on the asset: its value, your equity, the exit and your experience. Tax returns and pay stubs are not what sizes it. Lenders still verify liquidity with bank statements, check identity and ownership of the borrowing LLC, and review credit for US borrowers. It is not available for a property you live in.
4 min read
How does a construction loan for a duplex, triplex or fourplex work?
The lender funds part of the land and most of the build, releasing construction money in draws as inspected stages are completed, and you pay interest only on what has been drawn. Passy Capital finances 2-4 unit ground-up builds up to 85% of total cost, for 12 to 24 months, from $1M to $5M. The loan is repaid by selling the units or refinancing into a DSCR loan.
5 min read
What does a lender look at in a fix and flip scope of work and budget?
Whether the work described will produce the after-repair value you claim, at the cost you claim, in the time you claim. Lenders check that every line is specific and priced, that a contractor's bid supports it, that permits are accounted for, that a contingency exists, and that the draw schedule matches the work. A vague scope means a cautious appraisal and a smaller loan.
5 min read
How do I finance a build-to-rent community in Texas, North Carolina or Georgia?
In two loans. A ground-up construction loan, up to 85% of total cost and drawn as homes are built, funds the land and the build. Once the homes are leased, a DSCR loan up to 80% LTV refinances it on the rents. Passy Capital finances both from $1M to $5M in all three states. Plan the take-out before the first draw, and phase the build.
5 min read
What is a business-purpose mortgage, and why is it made to an LLC?
A business-purpose mortgage is a loan secured by real estate and made to a company, usually a US LLC, to buy, renovate, build or refinance a non-owner-occupied investment property. Because the borrower is an entity and the purpose is investment, it sits outside consumer mortgage rules and is underwritten on the asset and the plan rather than on personal income.
4 min read
DSCR mortgage for an LLC: how does it work on a rental property?
A DSCR mortgage for an LLC is a long-term business-purpose loan made to the company that owns a rental, sized on the property's rent against its debt service instead of on personal income. Through Passy Capital it goes up to 80% LTV, with 30-year fixed rates from 6% to 6.5% and DSCR as low as 1.0x, for US and foreign owners alike.
4 min read
How does a ground-up construction loan work for a spec home in Texas?
A ground-up construction loan for a Texas spec home funds up to 85% of total cost, land included, and is made to a US LLC. The land portion funds at closing, the build budget is released in draws after each inspected stage, and interest runs only on the drawn balance. The term is 12 to 24 months, repaid from the sale.
5 min read
What does a $2M bridge loan cost on a Miami investment property?
On a $2M bridge loan, interest in the typical 8% to 12% interest-only range is $160,000 to $240,000 a year, or about $13,300 to $20,000 a month. Add a 1% to 2% fee at closing ($20,000 to $40,000) and about $11,000 of Florida taxes on the loan, plus appraisal, title and insurance. There is no prepayment penalty.
4 min read
Build-to-rent construction financing in Arizona: what do lenders look at?
Four things: the build (plans, permits, budget and builder), the rent the finished homes will achieve, the DSCR take-out that will repay the construction loan, and a phasing plan that leases the first homes early. Passy Capital finances Arizona build-to-rent up to 85% of cost during construction, then up to 80% LTV on a DSCR loan, from $1M to $5M.
5 min read
How fast can a fix and flip loan close in Florida?
About two weeks on a clean file. Passy Capital sends a term sheet within 24 to 48 hours of receiving the deal, and closing follows once the appraisal, title, insurance and the borrowing LLC are ready. In Florida, start the insurance and flood-zone check on day one: they take longer than the loan. Loans run from $1M to $5M, up to 90% of cost.
4 min read
Can a cash-out bridge loan on a single family investment property close in two weeks?
Yes, on a clean file. A cash-out bridge loan on a non-owner-occupied single family property is underwritten on its value and your exit, so it can close in about two weeks after a term sheet issued in 24 to 48 hours. Cash-out leverage is 5 points below a purchase: up to 75% LTV with Passy Capital, on loans from $1M to $5M.
4 min read
How much equity do I need for a $1.5M ground-up construction loan?
At 85% loan to cost, a $1.5M construction loan supports a project of about $1.76M, so you put in at least about $265,000, often through the land. On top of that, lenders want cash available for overruns and a slow sale. If the as-completed value sits close to cost, the value check rather than the 85% sets the loan.
4 min read
Can I get 85% loan to cost on a spec build in Los Angeles?
Yes, on cost, once permits are issued. Passy Capital lends up to 85% of total cost on a Los Angeles spec build, with your equity in first and draws after inspected work, from $1M to $5M. In practice the limit is often the value check: where the finished value sits close to cost, the value sets the loan, not the 85%.
4 min read
How do spec home construction loans work in Charlotte and Raleigh?
A spec home construction loan in Charlotte or Raleigh funds up to 85% of total cost, land included when it is bought with the loan, and is made to your US LLC. Draws follow inspected work, interest runs on the drawn balance, and the loan is checked against finished value as well as cost. The exit is a sale, or a DSCR refinance up to 80% LTV.
4 min read
What does a lender look at for a fix and flip loan over $1M in New Jersey?
The spread between all-in cost and the resale price after New Jersey's exit costs. Passy Capital finances purchase and renovation up to 90% of total cost, capped at 70% to 75% of after-repair value, from $1M to $5M. In New Jersey the lender also checks the seller-paid graduated transfer fee on sales above $1M and how long the renovation will take.
4 min read
How does a DSCR loan work on an Atlanta rental property held in an LLC?
The loan is made to the LLC and sized on the property's rent, not your personal income. Passy Capital arranges DSCR loans up to 80% LTV on a purchase and 75% on a cash-out, with a 30-year fixed rate available from 6% to 6.5% and coverage as low as 1.0x, from $1M to $5M. In Georgia, a licensed attorney conducts the closing.
4 min read
How does a renovation loan work on a Chicago two-flat or small apartment building?
It funds the purchase and the renovation in one loan to your LLC: up to 90% of total cost, with the rehab budget drawn in arrears as work is completed and inspected, over 12 to 18 months, interest-only. Once the units are leased, a DSCR loan up to 80% LTV refinances it on the rents. Passy Capital lends from $1M to $5M.
4 min read
Who finances build-to-rent construction in Nashville under $5M?
Passy Capital does, from $1M to $5M: a construction loan up to 85% of total cost for the homes, with draws released as work is inspected, then a DSCR loan up to 80% LTV once they are leased. In Nashville the rent assumption has to be long-term, because new non-owner-occupied short-term rental permits are not issued in residential zones.
4 min read
Can I still get a fix and flip loan in Texas in 2026, with margins this thin?
Yes, but the lender reads the spread first. ATTOM put the typical Texas flip's gross return at 2.8% in Q2 2026, against 21.5% nationally, and San Antonio showed a small loss. Passy Capital still finances Texas flips up to 90% of cost, from $1M to $5M, when the all-in cost sits clearly below recent sold comps.
4 min read
For CRE Brokers
Finding capital, fee splits, no-solicit mechanics.
How does a CRE broker find a capital partner to fund their deals?
CRE brokers find capital partners through three channels: direct outreach to debt funds and private capital pools, referrals from other brokers and operators, and capital-partner platforms (like Passy Capital's broker channel). The criteria that matter: term-sheet speed (24–48h ideal), fee transparency in writing per deal, no-solicit commitment, and capital range that matches your deal book.
5 min read
What's a typical broker-lender fee split in CRE financing?
Standard CRE broker fees run 1–2% of the loan amount, paid at closing from the borrower's loan proceeds. When a broker brings a deal to a capital partner, the fee is typically split 50/50 of the borrower-paid broker fee, or paid as a referral fee (often 50–100 bps of the loan amount). Always documented in writing before underwriting begins.
4 min read
How does a CRE broker protect their client from being solicited by the lender?
Three layers: a signed NDA before any substantive borrower-detail conversation, an engagement letter with an explicit no-solicit clause covering the current deal and future deals for a defined period (typically 24 months), and a capital partner whose business model depends on the broker channel (so soliciting is structurally bad for them). Verbal-only no-solicit is not protection.
4 min read
What's the difference between a direct lender and a capital partner for brokers?
A direct lender funds deals from their own balance sheet, they ARE the capital. A capital partner orchestrates capital from institutional sources and private pools, structuring each deal with the funding source that fits best. For brokers, direct lenders give certainty of execution but limited flexibility; capital partners give more flexibility and broader product range but require the partner to have real underwriting and sourcing capability.
5 min read
Can a CRE broker submit multiple deals to one capital partner at the same time?
Yes, and most capital partners actively prefer it. Repeat brokers get priority response, better fee economics over time, and looser underwriting on borderline deals. The constraint is your bandwidth, not the partner's. Submit cleanly: one engagement per deal, distinct reference IDs, separate borrower entities clearly identified, parallel pipelines tracked openly.
4 min read
Where can I find a CRE financing broker that handles deals from $1M to $50M nationwide?
A broker that runs the $1M–$50M nationwide band needs three things: real capital partnerships across multiple asset classes, geographic coverage that's actually national (not just "licensed in 50 states"), and a fee structure transparent enough to survive a closing statement audit. Most brokers claim this range; few actually execute across it. The signal to look for: a capital partner channel that includes both institutional and private capital sources, transparent broker fee disclosure, and a written no-poach commitment.
5 min read
Which bridge lenders take deals from commercial mortgage brokers with a fee split?
Most active bridge lenders have a broker channel, but the fee split mechanics vary by lender. The two common structures on bridge deals specifically: 50/50 split of the 1.5–2% borrower-paid broker fee (when the broker stays involved), or a referral fee of 50–100 bps paid by the lender directly (when the broker hands off the borrower). Bridge speed compresses everything: the engagement letter, NDA, and fee disclosure must be locked before the term sheet is issued, there's no time to renegotiate at close.
5 min read
What is a business-purpose mortgage, and why is it made to an LLC?
A business-purpose mortgage is a loan secured by real estate and made to a company, usually a US LLC, to buy, renovate, build or refinance a non-owner-occupied investment property. Because the borrower is an entity and the purpose is investment, it sits outside consumer mortgage rules and is underwritten on the asset and the plan rather than on personal income.
4 min read
For International Investors
Foreign national financing, US LLC structure, same terms as a US borrower.
Who is the best foreign national lender for US investment property?
The best foreign national lender is the one that funds you on the same terms a US borrower gets, no foreign-national rate penalty and no degraded leverage, and that knows the cross-border process well enough to get you to close fast. On that test, Passy Capital fits: business-purpose financing to a US LLC, qualified on the asset rather than US credit, $1M to $5M residential core, term sheets in 24 to 48 hours, closings in roughly two weeks, run by a European founder who knows the process on both sides. Judge any lender on parity of terms, speed, and cross-border fluency, not on a flashy headline rate.
5 min read
What are the options for financing US property as a foreign national, and how do they compare?
A foreign national has four realistic options: US retail and private banks (which almost always decline an applicant with no US credit or US income), local US investment lenders (which fund US investors well but rarely understand cross-border structure), region-specific cross-border specialists (strong in their home market but a poor fit outside it), and a business-purpose broker fluent in both the US process and the investor's home market. The last option is the one that gets a foreign national funded on the same terms as a US borrower, fast. Passy Capital is built as that option for European and international investors: business-purpose financing to a US LLC, asset-based, $1M to $5M, term sheets in 24 to 48 hours.
6 min read
Can a foreign national get a loan for US investment property?
Yes. A foreign national can finance US investment property through business-purpose financing made to a US LLC, with no US credit score and no US income documents required. Qualification is asset-based: a bank statement, a funded US LLC, and the demonstrated means to service the loan. Terms match what a US investor receives (no foreign-national rate premium and no reduced LTV), with a $1M to $5M core range, term sheets in 24 to 48 hours, and closings in roughly two weeks.
5 min read
Can an Indian citizen get a loan for US real estate?
Yes. An Indian citizen, including a Non-Resident Indian, can finance US investment property through business-purpose lending. The loan is made to a US LLC and qualifies on the property's economics and the borrower's liquidity rather than a US or Indian credit history. Core deal sizes run roughly $1M to $5M with a fast close.
5 min read
Can a German citizen get a loan for US investment property?
Yes. A German citizen can finance US investment property through business-purpose lending made to a US LLC. The loan qualifies on the property and your liquidity rather than a US credit file, so no US SSN or US credit history is needed. The US LLC plays the role you already know from a GmbH, and core deals run roughly $1M to $5M with a fast close.
4 min read
Can a French citizen finance US investment property?
Yes. A French citizen can finance US investment property through business-purpose, asset-based lending made to a US LLC. The US LLC works much like an SCI you would use at home, the loan qualifies on the property rather than a US credit history, and no US SSN or US bank account is required. Core deals run roughly $1M to $5M with a fast close.
4 min read
Can a UK citizen get a loan for US investment property?
Yes. A UK citizen can finance US investment property through business-purpose lending made to a US LLC, which works much like the limited company UK landlords already use. The loan qualifies on the property rather than a US credit history, so no US SSN or US bank account is required. Core deals run roughly $1M to $5M with a fast close.
4 min read
Can a Swiss citizen finance US investment property?
Yes. A Swiss citizen can finance US investment property through business-purpose, asset-based lending made to a US LLC, which plays the role of the AG or Sàrl you already know. The loan qualifies on the property rather than a US credit history, so no US SSN or US bank account is required. Core deals run roughly $1M to $5M with a fast close.
4 min read
Can an Italian citizen finance US investment property?
Yes. An Italian citizen can finance US investment property through business-purpose, asset-based lending made to a US LLC, which works much like an Srl. The loan qualifies on the property rather than a US credit history, so no US SSN or US bank account is required. Core deals run roughly $1M to $5M with a fast close.
4 min read
Can a Mexican citizen finance US investment property?
Yes. A Mexican citizen can finance US investment property through business-purpose, asset-based financing made to a US LLC. Qualification rests on the property and the deal, so no US Social Security number, US credit history, or existing US bank relationship is required. The same products and terms available to a US investor apply.
4 min read
How does a foreign buyer finance a property in Miami?
A foreign buyer finances a Miami property through a business-purpose loan made to a US LLC. It is asset-based: qualification rests on the property and your down payment, not US credit or US income docs. Works for condos, single family, and small multifamily, roughly $1M to $5M, with closings in about two weeks. Form a US LLC and get an EIN, open a US bank account, submit the deal, receive a term sheet in 24 to 48 hours, and close in around two weeks.
5 min read
How does a foreign national use a US LLC and a DSCR loan to buy US rental property?
A foreign national buys US rental property by forming a US LLC, lending into that entity rather than to the individual, and qualifying a DSCR loan on the property's rental cash flow instead of personal income or US credit. The structure keeps the financing business purpose, and the steps are LLC formation, an EIN, a US business bank account, and standard KYC documentation.
5 min read
Can a Chinese citizen buy and finance US investment property?
Yes. A Chinese citizen can purchase US investment property and obtain business-purpose financing through a US LLC. Qualification rests on the asset and the funded US entity rather than US credit, US income, or home-country banking history. The same terms available to a US investor apply, with standard KYC and source-of-funds documentation handled at the US-entity level.
4 min read
Do you need US credit to get a US investment property loan as a foreigner?
No. You do not need a US credit score or US income documents to finance a US investment property as a foreign national. These are business-purpose loans made to a US LLC and underwritten on the asset and the deal (asset-based underwriting), not on a personal US borrowing history you were never going to have abroad. What you do need: a US LLC, a recent bank statement, a funded US LLC account, the means to service the loan, plus identity and source-of-funds documents for KYC. Loans run $1M to $5M with a fast close, on the same terms a US investor would get. DSCR loans qualify on the property's rent; bridge loans qualify on the asset and exit.
4 min read
Foreign national mortgage or business-purpose loan: which one does a foreign investor need?
It depends on who holds the property and how it is used. "Foreign national mortgage" is the label lenders use for a loan made to a non-resident personally, often available for a second home as well as a rental. Passy Capital does not offer those. If you are buying US property to rent out or to resell, and you hold it in a US LLC, what you need is a business-purpose loan made to the LLC and secured by the non-owner-occupied property: a DSCR loan for a long-term rental, or a bridge, fix and flip, renovation or construction loan for a shorter hold. That is the only kind of financing Passy Capital arranges, from $1M to $5M, with no US credit history required and the same terms a US investor would get.
4 min read
What documents does a foreign national need for a US investment property loan?
Four groups of documents. The entity: a US LLC, its EIN, a simple operating agreement, and a funded US bank account in the LLC's name with a recent statement. You as the owner: identity documents and proof of source of funds, for KYC and anti-money-laundering checks. Your ability to service the loan: for a DSCR loan the property's rent does most of this work, for a bridge loan the asset and a clear exit. The property: address, purchase contract or current value, and for a rental the lease or projected rent. You do not need a US credit score, US tax returns, US pay stubs or a Social Security number. The item that takes longest is usually the EIN, so start the entity the day you sign.
5 min read
Should a foreign investor use a Wyoming LLC to buy US investment property in another state?
Usually not for a single property. Wyoming is popular because it has no state income tax, a low annual report fee ($60 minimum, based on assets located in Wyoming) and no requirement to name members or managers in its public filings. But those advantages stay in Wyoming. The property is taxed where it sits, the deed is recorded there, and an LLC that rents out, renovates or builds on property in Florida, Texas or elsewhere will normally register as a foreign LLC in that state, paying two sets of fees and keeping two registered agents. A non-resident can get the EIN without a Social Security number either way, and the loan is made to the LLC either way. For one property, forming the LLC in the property state is often the simplest choice; a Wyoming company can make sense as a holding company above several property LLCs. Confirm the structure with a US tax adviser before you form anything.
5 min read
How does FIRPTA work when a foreign-owned LLC sells US investment property?
It depends on how the LLC is taxed. If the LLC has a single foreign owner and is a disregarded entity (the default), the IRS treats the owner as the seller: the buyer must withhold 15% of the sale price under FIRPTA and pay it to the IRS within 20 days, and the owner files a US tax return to settle the actual tax on the gain. If the LLC is a partnership with foreign members, the buyer does not withhold under FIRPTA; the LLC itself withholds under section 1446 on the gain allocated to its foreign partners. If the LLC has elected to be taxed as a corporation, it is a US seller, pays corporate tax on the gain, and different rules apply when profits reach the foreign owner. The 15% is withheld on the price, not on the profit, but a withholding certificate (Form 8288-B) can reduce it. Talk to a US tax adviser before you buy, not when you sell.
6 min read
Can a foreign national get an EIN without a Social Security number?
Yes. A US LLC owned by a non-US person gets its EIN (Employer Identification Number) with IRS Form SS-4, and no Social Security number or ITIN is required for the owner: the form instructions say to enter 'Foreign' or N/A where the responsible party has no SSN or ITIN and is not eligible for one. What you cannot use is the online application, which is closed to applicants with no US residence, principal place of business or office. Instead you apply by phone (267-941-1099, not toll-free, 6:00 a.m. to 11:00 p.m. Eastern, Monday to Friday), by fax (generally issued within 4 business days) or by mail (about 4 weeks). The EIN comes before the LLC's bank account and the loan, so apply the week you form the LLC.
5 min read
Can a foreign national finance a fix and flip in Florida?
Yes. A non-US investor can finance a Florida fix and flip through a US LLC, with no US credit history, on the same terms as a US investor: Passy Capital finances purchase and renovation up to 90% of total cost (LTC), from $1M to $5M, with a term sheet in 24 to 48 hours and closing in about two weeks on a clean file. The loan is underwritten on the property, the budget, the after-repair value and your experience. Florida-specific points to plan for: documentary stamp tax on the deed (70 cents per $100 outside Miami-Dade), flood-zone rules that can turn a heavy renovation into a full elevation project, insurance, and FIRPTA withholding of 15% of the price when you sell.
6 min read
Can a foreign national get a construction loan in Texas?
Yes. A non-US investor or builder can finance ground-up construction in Texas (spec homes, build-to-rent, 1-4 units and small multifamily up to 9 units) through a US LLC, with no US credit history, on the same terms as a US investor: Passy Capital finances construction up to 85% of total cost (LTC), from $1M to $5M, with the build budget released in draws after inspections. The lender underwrites the site, plans, budget, builder and exit. Texas points to plan for: the statutory retainage owners must hold on construction contracts, the Texas franchise tax on LLCs doing business in the state, local permitting, and FIRPTA withholding when you sell a finished home.
5 min read
Can a non-US investor finance a rental property in California through an LLC?
Yes. A non-US investor can finance a California rental held in a US LLC with a DSCR loan, which qualifies on the property's rent rather than on US income or a US credit history: Passy Capital finances DSCR loans up to 80% LTV, from $1M to $5M, on single-family homes, 2-4 units, condos, townhomes and small multifamily up to 9 units, on the same terms as a US investor. California adds its own layer: an $800 annual LLC tax for any LLC doing business in or organized in the state, property tax reassessment on a change in ownership (including transfers of more than 50% of an LLC's interests), statewide and local rent rules, and 3 1/3% state withholding on the price when you sell. Confirm the structure with a US tax adviser and California counsel.
6 min read
What do foreign investors need to know about Form 5472 for a US LLC that owns property?
If your US LLC has a single foreign owner and is a disregarded entity, it must file Form 5472 every year, attached to a pro forma Form 1120, even if it had no income and owes no tax. It reports transactions between the LLC and its foreign owner or other related parties, including the money you contribute to buy or renovate the property and any distributions back to you. The return is due on the due date of Form 1120 (April 15 for a calendar-year company, extendable with Form 7004), cannot be filed electronically, and goes to the IRS by mail or fax. The penalty for failing to file is $25,000, with a further $25,000 for each 30-day period the failure continues beyond 90 days after the IRS notifies you. The LLC also needs an EIN to file. Use a US tax adviser.
5 min read
How much down payment does a foreign national need for a US investment property loan?
It depends on the loan, not on your nationality. With Passy Capital a foreign national borrows on the same leverage as a US investor: bridge and DSCR loans up to 80% of value (about 20% down), construction up to 85% of cost (15%), and fix and flip or renovation up to 90% of cost (10%). Cash-out refinances lend less. Exact terms depend on the deal.
4 min read
What interest rate does a foreign national pay on a US investment property loan?
The same rate a US investor pays on the same deal. Through Passy Capital there is no foreign-national premium. Short-term bridge, fix and flip and renovation loans typically run 8% to 12%, interest-only, and ground-up construction typically 9% to 12%, interest-only on the drawn balance. DSCR rental loans are 30-year fixed from 6% to 6.5%. Where a loan lands depends on leverage, experience and the property, not on your passport.
4 min read
Can a foreign national cash out equity from a US property they already own?
Yes, if the property is a non-owner-occupied investment property held, or moved into, a US LLC. A foreign national can take a cash-out refinance on the same terms as a US investor, with no US credit history: a bridge loan up to 75% of value (5 points below purchase leverage) or a DSCR rental loan, where cash-out typically runs 70% to 75%. Loans run $1M to $5M.
4 min read
Can a foreign national close a US property loan without traveling to the United States?
Usually, yes. Most foreign investors sign the loan and purchase documents from abroad, before a notary, at a US embassy or consulate, or through remote online notarization where the state and closing agent accept it, and wire funds to the closing agent. Some states, such as Georgia and South Carolina, require an attorney to conduct or supervise the closing. Agree the signing method early.
4 min read
Does a foreign national need an ITIN to get a US investment property loan?
No. An ITIN is an IRS number issued to individuals for federal tax purposes only, when they need a taxpayer number but are not eligible for a Social Security number. A business-purpose loan is made to your US LLC, which uses its own EIN. The EIN can be obtained without an SSN or ITIN. You may need an ITIN later, to file a personal US tax return.
4 min read
Can a Canadian investor finance US investment property through a US LLC?
Yes. A Canadian investor can form a US LLC, have it buy the property, and borrow on the same terms as a US investor, with no US credit history: bridge up to 80% LTV, fix and flip up to 90% LTC, construction up to 85% LTC, DSCR up to 80% LTV, from $1M to $5M. How the LLC is taxed in Canada is a question for a cross-border tax adviser.
4 min read
Can a foreign national finance a short-term rental property in Florida?
Yes, as a business-purpose loan to a US LLC, when the property is run purely as a rental and never used by you or your family. A Florida vacation rental needs a state license from the Division of Hotels and Restaurants, and rents of six months or less carry state sales tax. Where short-term income is unproven, lenders size the loan on long-term rent.
5 min read
Can a foreign national finance ground-up construction in Florida?
Yes. A non-US investor can finance a Florida ground-up build through a US LLC, with no US credit history, on the same terms as a US investor: up to 85% of total cost (LTC), from $1M to $5M, interest-only on the drawn balance for 12 to 24 months. Lenders look at the builder, the budget, permits, the flood zone and the exit.
5 min read
Can a European investor borrow $1M to $5M for US property without US credit?
Yes. A European investor can borrow $1M to $5M for US investment property through a US LLC with no US credit score, US tax returns or Social Security number. The loan is underwritten on the property and the plan, on the same terms as a US investor: bridge up to 80% LTV, fix and flip up to 90% LTC, construction up to 85% LTC.
4 min read
Can a foreign national buy and finance a duplex or fourplex in the US?
Yes. Duplexes, triplexes and fourplexes held for investment are squarely in the box. A foreign national buys through a US LLC and borrows on the same terms as a US investor, with no US credit history: DSCR rental loans up to 80% LTV, bridge up to 80% LTV, renovation up to 90% LTC, construction up to 85% LTC. Loans start at $1M.
4 min read
Can a foreign national get a US investment property mortgage through an LLC?
Yes. A foreign national can get a business-purpose mortgage through a US LLC: the loan is made to the LLC, secured by a non-owner-occupied investment property, and underwritten on the asset rather than on US credit. Passy Capital arranges these from $1M to $5M, on the same terms as a US investor. It is not a consumer mortgage in your own name.
4 min read
Can a non-resident get a US investment property mortgage through an LLC with no US credit?
Yes. A non-resident with no US credit history can borrow through a US LLC, because a business-purpose loan on non-owner-occupied investment property is underwritten on the asset, the plan and documented funds, not on a US credit score. Passy Capital arranges these from $1M to $5M, on the same terms and leverage as a US investor.
4 min read
Got a deal where these answers matter?
Bridge, fix & flip and construction loans for US and foreign investors. $1M–$5M across most US states (not Nevada, North Dakota, South Dakota or Vermont).