International

Don’t let funding issues derail international deals

Rules for mortgages, transfer of funds complicate transactions involving offshore clients

In a previous article, I explored some factors that shape the expectations of Chinese clients when investing in real estate, and reviewed a few "rules of thumb" for capturing and nurturing business with this market segment. As a follow-up, I want to explore a few of the most common financing challenges that our Chinese clients -- as well as other offshore investors -- have when buying property in North America. Having an understanding of these hurdles will help you prevent them from becoming major impediments to your clients achieving their goals. Regardless of how deep-pocketed they may be, Chinese clients who require (or desire) financing for a residential or commercial real estate investment will face more stringent prequalifying criteria. It is important to educate your offshore clients that they will not be able to access the high-ratio mortgages they read about in the news. Noncitizen residents will require a larger down payment to obtain a mortgage; in North America, it...