Intesting in properties overseas - Posted by Dimitris

Posted by James Strange on August 26, 2003 at 18:26:45:

Most US banks do not lend overseas. But some do but the lending criteria is not going to be the same as it is here.

You best bet may be to find a US bank doing business in the same location where you plan to invest.

James Strange

Intesting in properties overseas - Posted by Dimitris

Posted by Dimitris on August 26, 2003 at 15:40:30:

Hello. I and a small number of individuals are thinking of pooling
some money together to invest in some properties in Europe. Can
people point me to some resources (information, lawyers) that will
help us form the right entity for this kind of an investment? Also,
any information on financing for overseas properties will be welcome.
Do banks in the US provide mortages for overseas properties? If yes,
which ones. Is it best to seek financing with local banks?

Thank you in advance for any information.


Re: Intesting in properties overseas - Posted by RobH_WA

Posted by RobH_WA on August 26, 2003 at 23:30:27:


I would strongly urge you to get your loan(s) denominated in the currency in which the asset(s) are based. You have only to look at the USD/Euro FX rates over the last few years to see what exchange risk can do. Managing an overseas investment is difficult enough without adding FX risk.

This may be done through a US bank if they have retail operations in that country. However, there is no guarantee that they will be competitive on rates. If you want to deal with a US bank rather than local lenders I suggest you start inquiries with Citi, as my guess is they have the widest European network.

In terms of entity I would also suggest something appropriate for local conditions. If the asset is based in Greece use a vehicle that conforms to Greek law and practice.

Lastly, question everything. Dont assume that loans are made for 15 or 30 years. Dont assume that fixed rates are available. Learn the tax implications (US and local). Etc, etc, etc

For any further assistance I suggest you will have to identify which country you are looking at.

Good luck.