Opening a US Bank Account & buying property in the USA

If you're in the process of immigrating to the USA, or even just considering this, then you really don't want to ignore this message.

PLANNING AHEAD :

Getting a visa to live and work in the USA is only the first step. (And if you need help in understanding the different visas, from B1/B1 to EB-5 we can help you here as well). The second step is just as important -- having a good credit score -- a measure of your fiscal character and financial responsibility. Without a good credit score, you're a high-risk tourist and will have to pay cash for everything. And pay more for everything -- a bigger deposit when renting a home, a bigger deposit and higher interest rates when buying a car, more expensive health-insurance, more expensive cell-phone contracts, no credit card, the list is endless. The dichotomy is that you cannot get credit without a credit score and you cannot get a credit score without having debt. Bottom line -- not having a credit score when you get here will cost you. Big time.

This happened to us when we immigrated to the USA. We could not get a mortgage and we found that renting a home is more expensive than actually buying that home. And it took us two years of paying cash and high interest rates before we saw the light -- the importance of building a credit score BEFORE you arrive. We've shared this with our clients and they are seeing huge financial gains and impressive credit scores within just a few months of arriving in the USA .

HERE'S HOW IT WORKS :

1. You need a US bank account (and we can help you get this without you even having to come to the USA.)
2. Then you start funding this bank account with about 40 percent of your budgeted property purchase price.
3. We'll find you a good rentable investment home and find you a US mortgage lender that will give you a US mortgage for about 65 to 70 percent of the property purchase price.
4. We'll guide you through the property closing and once you own the property, we'll find you a tenant to rent the property (with a rental sufficient to cover capital, interest, rates & taxes).
5. And we'll manage the property for you.

1. You'll have a Dollar hedge against fluctuations in your home currency exchange rate.
2. With a 10-million housing shortage in the USA, property values are rising rapidly, as are rental prices. (In Charlotte NC, we're seeing property prices increasing by 15 to 20 percent per year).
3. Mortgage interest is tax-deductible from personal income-tax.
4. Your mortgage account is establishing a history of on-time payments. When you get here and can link your Social Security number to this account, its history becomes yours,  retroactively, and you start out with a good credit score. And this opens the door to a credit card, auto-finance, lower interest rates and lower insurance costs.
5. Most importantly, it's a wealth-generating opportunity with an excellent return-on-investment. (Here's an actual example from one of our clients, "H", who purchased a town-house for $300k with a $100k down-payment and a rental tenant covering capital, interest, rates & taxes and HOA payments. In the first year, 2019, the property increased in value by 20 percent. That's $60k. But remember, "H" only paid $100k for the property, since the tenant is paying for the $200k mortgage. So, in effect, "H" saw a 60 percent return on his $100k investment. In 2020, another 20 percent increase in his property value. And another 20 percent increase in 2021. And 2022 is looking at an 18 percent increase. And if this is not enough, look what happened to the Turkish Lira/Dollar exchange rate over the same period - 8:1 a year ago, 18:1 today.)

BUYING OPTIONS :

The challenge for some people is finding the down-payment. (Getting the bank account is easy -- we do this for you.) Realistically-speaking, you need about $100k in your bank account to cover the down-payment, closing costs, preparing the property for tenant-occupancy and a buffer for unforeseen repairs and miscellaneous costs. $100k might be a push, so we sat down with lenders and found a solution. Traditionally, the buyer will be the Borrower on the mortgage loan. If it's a married couple or a parent helping a child, you might have a Borrower and a Co-Borrower. Less common is where you might have Borrower/Borrower loans where the Borrowers are jointly and severally responsible for the loan. And lenders will allow up to FOUR Borrowers to sign the mortgage loan agreement, appear on the property title deed, and most importantly, EACH OF THE BORROWERS WILL BE ESTABLISHING THEIR OWN CREDIT SCORE HISTORY.  In short, it's now possible for a group of up to 4 people to jointly buy an investment property in the USA with as little as $25k each and individually establish their own credit score and earn a solid return-on-investment. (There are limits to these Borrower/Borrower loans -- no family. So parents and their adult children cannot do this. But two married couples can. Or 2 to 4 friends.)

TALK TO US NOW :

If any of this appeals to you, you should talk with us NOW. Don't wait until you arrive in the USA -- by then it's too late. The strength of this program lies in the mortgage loan history -- the longer the history, the better the credit score.

But it all starts with getting that US bank account. The first pillar of your Exit Strategy -- if you're thinking about leaving your country at anytime in the future, where will you go and how will you do so? If it's the USA, you'll need a US bank account with funds, you'll need a US visa, and you'll need a home-asset. And this is why PathwayUSA should be your very first call.

Good luck from Bruce and Dianne Stewart in Charlotte, North Carolina.
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