Dallas Investment Strategy Blog
We will talk about portfolio and refinancing strategy for foreign nationals briefly. I have quite a large number of international investors who are investing in Dallas. These are what they normally do as many of them invest in multiple properties.
Step 1: Buy with cash or with loans obtained overseas
For instance, I have clients who refinanced their properties in Australia and Canada, then invest several properties in Dallas first using the funds from their home country.
Step 2: Improve the properties
They will then improve the properties through repairs and renovations.
Step 3: Lease out properties
They will then lease out these properties as soon as possible through property management company.
Step 4: Refinance once properties are leased out
There are several lenders that do provide loans to foreign nationals owned LLCs or foreign national investors, one of the criteria is portfolio must be maintained at around 80% to 90% occupancy rate, and LTV is usually between 50% to 70%.
Step 5: Use proceeds (Cashout) refinanced portion and buy more properties
They then reinvest the proceeds into the property market – these are usually Term Loans so interest will start from the day the loan is closed, so there is an urgency to produce more cashflow and not waiting around.
Step 6: Repeat the same process and expand the portfolio
They will repeat the process and expand the portfolio further – typically, my clients do diversify their properties, so they will use the funds to acquire more properties in different areas or in some cases, diversify into different types of assets as well.