Loans USA – The Story

Loans USA was created out of complete necessity.

You see, becoming a property owner in Australia is tough. Creating a portfolio of property in
Australia is even tougher especially considering the current banking regime.

Why? Because each and every month you need to cash-flow the investment until such time as the rent covers the outgoings. If the property is your home, there is no rent so you need even more cash to meet the ongoing repayments.

As a long term property investor myself, I know too well how difficult it can be to find an investment property in Australia today that is cash flow positive. Sure, fifteen years ago there were plenty of cash flow positive properties up in Queensland, Tasmania and even some in Victoria, or maybe out in little rural or mining towns where the future is very uncertain and their economies are not stable. Today, it’s a completely different story.

Many of my clients in Australia (myself included) wanted to diversify away from only negatively geared properties in their portfolio. More and more people are becoming frustrated with the limited viable options in the Australian property market which is rapidly getting worse as housing affordability continues to decrease.

As a result, I started researching the USA property market in 2008 when the Australian dollar was very high and the USA property market had taken a dramatic downturn. At that time however I found it very difficult to find professional people to help me in the US and there were no specialists operating from Australia who were credible. I found it all too hard and then the Australian dollar dropped so I lost interest.

Then in late 2009 when the Australian dollar increased again, I started my research all over again, but this time came across a multitude of options. After careful research I found a professional property advocacy company which provided a complete turn key system to purchasing and tenanting property in the USA. This is how I purchased my first USA property using cash.

However as my goal was to purchase numerous property’s over the next few years whilst the USA property market was depressed I knew eventually I would run out of cash. I wanted to take advantage of leverage and hence I had to explore what finance strategies if any were available (to build the portfolio as quickly as possible).

After my first two USA property purchases I asked the question, why aren’t there any finance option’s available when buying USA property? The answer was loud and clear. There was no USA finance available to foreigners. I knew there had to be options and hence began my quest to change this way of thinking.

From early 2010 I began to again heavily research the USA finance market. Considering the time differences between the USA and Australia the reality was that I have spent hundreds of hours on the phone to USA financiers in the middle of the night (Australian time) and have also travelled to the USA now several times to meet many of my lenders face to face to solidify the relationship. I have gone to this considerable effort because I need these chosen lenders to clearly understand what type of finance my clients need and also what type of clients are looking at USA financing options. The lenders are very risk averse at present and need to be very reassured that any new client, especially foreigners with no overseas credit history, is worth the risk.  The result of this hard work and sleepless nights is that I have created a finance network in the USA that produces the results my clients are looking for.

Loans Australia is the sister company to Loans USA (with myself as Director of both companies). Whereas Loans USA organizes USA finance for USA property purchases, Loans Australia specializes in creative financing strategies for Australian property owners who want strategic financing solutions for ongoing property acquisitions. As like-minded property investors we go beyond constrained mortgage options and conventional thinking, which has led the business to become the success it is today.

The two companies will work hand in hand with each other to create the best outcome for you. That is, Loans Australia can review and optimize your ‘Australian’ finance situation and Loans USA will seek out a USA financier to reduce the ‘cash’ component required to purchase USA property.  Loans Australia has an ASIC licence and Loans USA is a credit representative of USA Financial services. We are both fully qualified and to help you further in your financing endeavours.

Together you will be benefiting from leverage with the potential to still be cash flow positive (that is, income will be greater than all the combined property expenses including interest on the loan).

Strategic thinking is the key to moving forward when it comes to property acquisitions. Planning ahead can pay huge dividends to your end result and allows you to capitalize on opportunities as they arise. This is the thinking we take into the USA property market. You need to have a plan to successfully invest. Do you want 1 property or 10 properties? Are you looking for the long term investment or a short term option? Can you use equity available in your home here in Australia to lever your buying power in the USA? What are your options for moving forward?

These are the questions we deal with on a daily basis and why we are the professionals you should choose to deal with.

Helping you grow,
Stephen McClatchie

Founder and Managing Director

Contact Us

Workshop Registration
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you comprehensive insight into
purchasing and financing property
in the USA.

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Insightful video Interview with Stephen
McClatchie, Founder & Managing
Director of Loans USA Click here to view