Financial Services Partnerships with Milo
By Milo • 8/19/2021
Have your international clients expressed having trouble securing US real estate financing, despite their high net worth? If so, they’re not alone. Off-shore clients regularly struggle to gain U.S. real estate financing access, regardless of high net worth. There are more than 35 million millionaire global consumers, yet 58% of foreigners annually can’t purchase real estate (couldn’t obtain financing or couldn’t move their money).
At Milo, we know this struggle all too well. Milo was born out of the simple belief that everyone should have access to the right financial products. As foreigners in the U.S., we understood that this was not the case – we were being left behind.
Traditional banks neglected us, lenders avoided us entirely, and others simply wasted our time. This struggle and frustration compelled us to create a company that has global consumers’ unique situations and needs at its very core.
We wanted to begin with a product that any foreigner who owns US real estate could finally access. The loan process needed to be fast, simple, transparent — and all online. We realized early on that we could help our customers increase their overall net worth, once they could access their illiquid assets.
As a financial advisor, you likely have heard this story, as well. You probably hear time and time again from your international clients how they are struggling to find a mortgage loan, despite being qualified. Regardless of their qualifications, international investors are continually excluded from financial lending systems. But what can you do about it?
This is where our financial services partnerships come into play. There is tremendous opportunity for financial advisors to help this under-served market segment. $2 trillion in US residential real estate is owned by foreigners — and 70% of this real estate was purchased with cash, which translates to $1.3 trillion of trapped equity.
This quality customer segment has been inadvertently punished by the limitations of the US financial system. Despite their high net worth, these consumers can’t qualify for traditional agency loans, usually do to factors such as no social security number, no established credit history in the US, an offshore income source, no US residency or citizenship and more. This forces these investors to either purchase with cash or to take a private lender offer — often at predatory rates as high as 15%. And even if they try to secure financing at a traditional bank, it usually takes months of paperwork and most of the time still ends with a denial.
Milo is Reinventing Finance for International Investors
Milo has created an all-digital home lending product that is tailored to the foreign national investor. No catch — just great value.
Milo is home to a lending product specifically created for foreign nationals, allowing international clients to qualify for a US mortgage with Milo even when there is no social security number (SSN), no credit history, and no US income source. All your clients need is a passport and visa. To date, we’ve been able to approve nearly 90% of applicants.
We also offer fair and competitive rates, allowing your clients to obtain a US investment loan at rates that are very close to a US citizen. We’ve been able to provide loans to our customers at 4%, when alternative lenders offer predatory rates that can reach 10-15%.
We offer digital remote closings, allowing us to perform the entire closing remotely from their home country, which means your clients don’t have to go to the trouble of planning a trip to the US and then finding their way in a strange city.
We give our customers extensive coverage, allowing them to obtain an investment property loan anywhere in the US. They can be a citizen of any country that the US supports doing business with.
We also allow corporate or individual ownership, giving your clients flexibility. They can obtain an investment property loan either as an individual investor or under a business entity.
What Does This Mean for You?
Milo is a great option for your clients, but what does it mean for you as a financial advisor? Having a good mortgage solution for your foreign national clients can help increase your AUM, strengthen existing relationships, and also acquire new ones, all while mitigating the risk of losing your current AUM or losing FN clients to other wealth management providers.
By partnering with Milo, you can increase AUM from properties paid in cash and strengthen your relationships with high net worth customers, which translates to larger loans. You can also offer a full menu of financing options for any state, including new purchase, refinancing, and cash-out refinancing.
There are also risks involved by not having a mortgage option to offer to your clients. Without this option, you run the risk of low client satisfaction and losing AUM when making real estate transactions in the US. You are also missing out on new clients due to the lack of a mortgage loan offering, and possibly losing your existing clients to other wealth management institutions that can provide the service.
Milo is Ready to Serve You and Your Clients
We are ready to support you and your clients to help them realize their US real estate investment goals. So what are you waiting for? You can get started in your financial services partnership with Milo in three easy steps:
At Milo, we are reimagining finance for global consumers by offering mortgage loans for international clients. We act with these consumers’ unique situations and circumstances in mind, first and foremost. Give us a call or email our partnership team to find out how to work together to help you better serve your clients.