Frequently Asked Questions
Q: How long have you been providing financing in Arizona for Canadians?
A: 2012 brought Express Capital Mortgage into a breakout year in providing “Foreign National financing” as it is referred to in the US. It has been quite a journey over the last tow years garnering attention from banks to lend within this “niche”. This has been a work in progress for a long time. Our persistence and hard work has paid off. It has been our focus at Express Capital to assist various banks and lenders developing loan programs that make sense for Canadian investors. It is still a market segment that is quite under served and in the past it has left real estate investors from Canada left with paying cash for property acquisition.
Q: How would you compare to your financing that you provide in Arizona to what is available in Canada?
A: It really makes sense for us to educate our borrowers about the lending here now compared to what it was in 2010. It all began when we facilitated some private money financing for some Canadians at a whopping 12-14% interest rates. That type of financing was the only alternative since the banking crisis in the US that has plagued our marketplace. Truth is, that Foreign National financing has truly only been re-invented inside the last year so and with any new product it is constantly changing.
Q: What makes Express Capital Mortgage different that any other mortgage company providing this type of financing?
A: There is no other mortgage company here that we are aware of that utilizes ALL known sources of Canadian financing. We place our borrowers with the proper loan product that works best for them. We have observed real estate agents that literally hand out a list of known retail banks that have rumored to have a program in place. Our service is to place you with the best financing based on your scenario at any given time. We constantly update changes in programs with our various funding sources.
Q: What types of properties do you finance?
A: Although we can arrange loans for second/vacation homes our specialty is the ability to deliver funding on Residential and Commercial
Q: Describe your most common borrower?
A: We see a lot of investors who have been paying cash for properties over the last few years. Because they own one or more properties free and clear of any liens, we can go in and leverage these and use the cash to buy additional properties. These investors are finding out they can utilize the leveraging ability to increase their buying power in this market. They understand that this is the time to buy.
Q: How much can these Canadian Investors expect to borrow against their property?
A: Right now they can expect to borrow anywhere from 50% to 65% of the appraised value of the property. The reason for that variance is for a few reasons. One reason is that the lending institutions are evaluating these loan packages on a case by case basis. They consider all the qualifying factors together (income, net worth, property condition, location, etc). Also, rates and terms vary based on the loan to value as well. It is really had to publish this since it is always changing. The last thing we want to do is put out information that can become obsolete very quickly.
Q: How do these investors contact you and get the process started?
A: The best way is to call us directly and talk about your investment strategy or plan. It is important that we understand what you want to accomplish. After we gather all the facts about your scenario we coordinate with you the documents we need to support the information.
Q: Why can’t these investors contact your banks directly?
A: We get asked this question a lot and it kind of defeats the purpose of our service. I suppose there are some lenders that an investor could contact directly while most others only work with us on a wholesale basis. There are specific individuals within these organizations that we have helped create these programs with. Anyone outside this person may not be aware of the special offerings to Canadians. We carefully prepare and submit these loan packages and submit them to the lender with the best fit. This includes using all available supporting documentation. There are some details that we may not want to leave out that may be the difference in getting our borrowers a better rate and perhaps less fees than going directly to the bank on your own. When presenting your loan scenario to the bank we help you put your “best foot forward”.
Q: Can I get pre-qualified to purchase a property?
A: Absolutely! We do our diligence to pre-qualify you as a borrower or guarantor of the loan even though you may not have a property yet?
Q: Can I finance property using an entity like an LLP, LLLP, or LLC?
A: Yes, you can finance in an entity or in your individual name. Many of our borrowers have already received advice from a trusted advisor on the best way to acquire title.
Q: What if a new buyer wants to move forward but I am new to investing in the USA real estate market. Where do I start?
A: If you would like to finance a property you have started at the right place. Financing aside, we work with a network of various referral partners. These are professionals local to Arizona that provide services such as tax advice, legal advice, actual inventory of property, property management, etc. We would be happy to facilitate contact between you and our trusted local connections.
Q: What are the fees for your services? Is there anything required up front?
A: Our fees are disclosed to you in the beginning of the process and usually include those of other 3rd party services. We remain competitive and are actually close to what you would expect on a similar transaction in Canada. With the exception of certain fees that may be required up front on certain commercial properties, there are no up front fees associated with the residential loans. Appraisers on these properties need to get paid up front but that is outside of Express Capital.
Q: How long do these transactions take to complete?
A: You can expect around a 30 day processing period. If there is a special circumstance where you require a faster closing we have some other options.
Q: Right now it is very competitive out there with many investors being awarded contracts because they have cash. Can I pay cash for a property and obtain a loan quickly afterwards.
A: Yes, in fact it makes it easier for us if you pay cash. It gives you the ability to clean up the property and administer any necessary repairs. It also gives you the ability to get the property rented. Both of these make a difference with a lender in reducing risk.
Q: Can an investor finance a portfolio of single family rentals?
A: Yes, as a matter of fact there are options that involve to collateralizing an entire portfolio of properties in one loan. This involves recent capabilities in obtaining credit lines against property.
Q: Can you finance property outside of Arizona?
A: We have the capability of working with all scenarios. One of our strongest traits as a company is our ability to adapt to the market and client needs.