How to Invest in the US Real Estate as a Foreigner

Real Estate Technology


Under open economy legislation, foreigners can purchase real estate in the United States regardless if it is for residential or commercial purposes. Foreigners also do not have to apply for U.S. citizenship or marry a U.S. citizen. However, there are two important things that foreigners must consider before investing in U.S. real estate: financing and language barriers. 

Financing the Real Estate Investment 

This is the first consideration that any investor should not overlook. Real estate costs a significant amount of money, which will not be a problem for a foreign investor who has the financial capability to do so. 

However, those with smaller financial capabilities may find it challenging to get mortgages from banks or loans from other lenders to finance their real estate investment. 

The two biggest reasons why foreigners may find it hard to find an entity to lend them money, is because banks and other lenders do not want to loan money to those who have not previously paid any taxes in the U.S. and have no legal or personal ties to the country. These two reasons pose a huge risk for banks and other lenders, which would make it almost impossible to convince them to lend money to foreigners. 

However, foreigners may submit documents to justify that they are a risk worth taking for. Some banks or lenders may be convinced to lend money if they would be given credible assurance or incontestable proof of profitability from the foreigners.

The Language Used in the Real Estate Documents

Since the real estate properties would be in U.S. territory, it is only logical that the legal documents relevant to it would be in the English language. Foreigners might have difficulty understanding real-estate documents on their own, and they may resort to hiring additional English-proficient lawyers to handle real-estate documents such as: 

  • Letter of intent 

  • Real estate purchase agreement

  • Contract for deed 

  • Real estate due diligence report 

  • Mortgage agreement

According to, availing professional translation services for real estate documents is cost-efficient, quick, and effective. 

By using translation services, foreigners can also retain their existing legal counsels and then have them review the translated documents.

Comments (3)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Great post, and we are seeing many potential buyers from other countries wanting to invest.

Aug 24, 2020 09:11 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I believe though that when this Investment is sold by a non citizen, the Cllsing Co. Must Escrow 10% of the proceeds .

Oct 17, 2020 05:37 AM