How many times have your transactions been stopped midway due to funding issues?
We know it’s probably many, many times. If you work with international clients, it may be more times than you’d like to recount.
Zeroing In on a Big Problem: Barriers to Funding for International Clients
According to NAR’s 2020 Profile of International Transactions in U.S. Residential Real Estate, one of the leading factors that prevented international clients from completing their purchases was a lack of financing.
In 2020, 34% of international buyers could not obtain financing for their real estate deals. This is 8% more buyers than 2019’s rate of 26%. The numbers don’t lie. This trend is getting worse, not better.
You’re likely well aware of this issue. Foreign nationals have had to jump through hoops to finance their U.S. investments for too long.
Your international clients face so many barriers just to secure the loan to complete their deal with you. They’re asked to travel abroad for bank visits – sometimes multiple. They’re asked to provide social security numbers or U.S. tax returns, which they don’t always have.
As things are, this client demographic is excluded from financing support.
How This Affects Real Estate Businesses
Realtors this is your problem, too.
The truth is, it’s not just the client who’s depending on your client’s loans to close the deal. And, as you know better than anyone, the deal needs to close for you to get paid your commission.
Foreign investment in the housing market is a continual source of deals for realtors and developers. In 2018, international investors spent $127 billion in residential real estate. In 2019, foreign investment accounted for $78 billion in U.S. real estate sales. In 2020, even with the pandemic, it generated $74 billion.
When the average price point for foreign buyers is also typically above the national average, it’s impossible to ignore this area of your business.
Your international clients are looking for a solution to their mortgage woes. Sure, they can pay for the deal in cash, but that’s not always in their best interest. If your international clients were able to gain the funding they needed with a lender suited for them, you would have a faster closing and your client would be able to close not one but two deals with you.
That means everyone gets the outcomes they’re looking for. Your client gets the asset they want, you get paid, and everyone is satisfied.
Stop Letting your Deals Fall Apart
The more deals that move to closing, the more successful realtors and developers are.
Unfortunately, there are some factors that influence a transaction that are not in your control. Even if your clients are deal-ready, funding issues can keep a deal from ever moving forward. That means your business is relying upon external factors- which can greatly inhibit growth.
In this situation, Milo is here to partner with realtors and developers to be a solution to the challenges that they cannot solve on their own.
Partnering with innovative problem-solvers in the industry can take your business model to the next level. If you know trusted and reliable solutions to the problems your clients face, you can provide them with the answers they’re seeking.
Meet Milo, your Transaction’s Best Funding Solution
Realtors and developers who partner with Milo have a better chance at getting the deal to the closing table. We’ve worked with realtors in Florida and California that have appreciated our solutions – so much so that we’ve created a long-term relationship with them.
Milo is an innovative digital bank solution that can help your foreign national clients secure financing for residential real estate investments.
Referring Milo as a financing solution to your international clients improves the experience that they have working with you. This is because realtors and developers who work with Milo understand the trouble that foreign nationals have with getting a mortgage, and can provide a viable solution.
This is crucial because we’re breaking ground in the industry. Milo is competitive, fast, and comfortable – but many of your clients may not even know that this digital process even exists.
Working with Milo allows real estate professionals to create a long-term relationship based on trust. Your international clients will be coming back again and again.
The Benefits of Milo for U.S Mortgages
Milo gives financially-sound international clients the opportunity to invest in U.S real estate without having to pay crazy fees, schedule bank visits, or wait forever.
Even more critical, Milo is transparent.
We never make false promises or lead your clients on. There will never be sudden surprises or last-minute backing out of a deal. We say what we mean and we mean what we say.
Milo is dependable. We know that your international clients have had bad past experiences with securing financing, but we’re here to help them.
Currently, Milo is offering new purchase, refinance and cash-out refinance programs for investment properties in the U.S. We make it quick, easy, and comfortable for you and your international clients.
Milo Compared to Other Funding Options.
Milo is more flexible, better to leverage and more strategic. Rather than having their money locked into one asset, getting financed with Milo allows them to invest in other avenues, including other properties, to increase their wealth.
Milo offers comparable interest rates, without the long timeline, difficult process, and necessity to visit. Milo’s fully-digital process allows borrowers to move from pre-approval to closing without ever traveling to the U.S. Milo loans are 3 times faster than banks.
- Compared to Hard Money Lenders:
Milo offers speed without the short terms and high interest rates. Milo’s average timeline is 4 weeks with 4-6% interest rates.
Milo upends traditional lending options on every front. It’s never been easier for your international clients (and you) to move a deal to closing.
Get in Contact with Milo
All realtors and developers want their real estate deals to go through. Finally, we have a solution to this chronic financing problem.
Milo is a digital banking solutions that offers favorable rates and a quick mortgage process. Most importantly, we carry the deal through to the end – and we do it fast.
If you’re interested in getting your clients in contact with a Milo representative, refer them here. We’re eager to help them realize their residential investment goals.