RG 008 – Financing Options for International Investors with Matthew Owens
In case you missed it, here are some of the highlights from our conversation with Matthew Owens from OCG Properties:
- Founder of OCG Properties www.ocgproperties.com a company that specializes in acquiring cash flowing real estate investments for foreign investors.
- Licensed CPA
- Specializes in value-add residential and multi family real estate investments
- Purchased and renovated over 450 properties across the U.S.
Matthew 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.
Nuts and Bolts:
Turnkey properties and financing options for international investors
- OCG properties produce ‘turnkey’ properties for their international clients.
- Finding under market cash flowing properties (distressed or run down)
- Complete renovations to make theses properties ‘rent-ready’
- Find tenants to rent the properties (get signed rental agreements)
- Local property management team oversee the day to day operations
- Then OCG on-sells this ‘turnkey’ cash flowing property to their international investors; or form a joint ownership with their clients if needed
- OCG saw the need to create a financing structure for their international investors who want to buy U.S. real estate. How does it work?
- International investors are required to put down 50% of the purchase price (PP);
- OCG will sell one of their turnkey properties to the international investor with the remaining 50% of the (PP) as a loan;
- OCG Properties becomes the bank that lends the international investor the additional money they need to purchase the property;
- OCG will only lend on the properties they find and on sell (bringing the financing operation in-house);
- Typically 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.
- How do you qualify as international investor?
- 50% down in cash – bank statements proving investor have the required capital;
- 2 years of foreign tax statements;
- 3 months of recent pay stubs;
- 1003 loan application (standard loan form here in the U.S. it’s a summary of your income and expenses of your daily life);
- International Tax Treaties: OCG Properties will help international investors understand their countries tax treaty with the U.S. as there are certain withholding requirements – OCG will put you in contact with the best U.S. tax advisors that can help you understand what is involved; simple and easy!
Contact Information for Matthew and his team:
Manhattan Beach, CA
Who is ready to get carking on these deal?!
Ready, Aim, Fire!