Investment Mortgage

Increase Your International AUM with Milo’s Direct Home Lending

By Milo

April 21, 2021 4 min read

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Increase Your International AUM with Milo’s Direct Home Lending

The best financial advisors know when to find better solutions through innovation.

Financial advisors are the trusted sources of insight for their international clients. That means being up to speed with the latest industry trends, developments, and changes.

When your clients come to you with a problem, it’s up to you to formulate a creative strategy that lessens their pain and multiply their rewards.

Milo is spearheading the way foreign nationals invest in the U.S. by developing a new way to issue U.S. home loans. It’s never been easier to finance U.S. residential real estate investments than with Milo’s digital process.

Here’s what financial advisors need to know about Milo.

The Problem with U.S. Property Purchases for Foreign Buyers

We know that your international clients have historically used cash to invest in residential properties in the U.S. market.

NAR’s 2020 Profile of International Transactions in U.S. Residential Real Estate, reveals just how widespread this problem is. In 2020, 39% of foreign buyer transactions were purchased without a loan.

According to the report, international buyers are more likely to purchase without a loan than resident buyers (US permanent and non permanent residents). This is because the last group has an easier time securing financing for their investments. 59% of international buyers made an all-cash purchase, compared to 27% of foreign resident buyers.

Even though foreign buyers purchase substantial amounts of resident real estate in the U.S. – totaling $74 billion worth of homes in 2020 alone – international clients are not offered the experience they deserve.

Systematic problems make it hard for foreign buyers to invest in U.S. real estate. As a result, the customer pays for their purchase in cash- and as a seasoned professional, you know that cash-buying is not a good investment idea.

This issue is precisely the problem that Milo was created to solve. Instead of dealing with the traditional issues, show your clients that there is another way to invest with Milo.

Introduce your International Clients to Milo

Milo is providing financial advisors with added value that they can translate to their clients. Advisors are able to grow their assets under management (AUM) while strengthening existing relationships (and forging new ones) with high net worth international clients.

Here are a few benefits:

Strengthening Relationships with HNW Clients Referring the international clients you work with to Milo’s digital lending solution, not only helps them make the most of their real estate goals but also benefits your business.

By giving them access to an easier and more accommodating lending platform, investors will appreciate how simple it is to work with you – especially compared to stressful experiences with the financing options they’ve likely faced in the past.

By providing a full menu of financing options for any state – including new purchase, refinance, and cash-out – Milo can help you tailor solutions that fit your client’s needs. This also minimizes the risk of losing clients to other wealth management providers.

Growing your AUM By improving the way your international clients navigate their transactions, they’ll be more likely to do business with you – and even expand the assets you manage. Milo is a direct lender, that fully funds the loan, and our system offers seamless transparency.

When your clients leverage their property with a Cash-Out Refinance loan, it frees up their capital for future or multiple investments, thus potentially increasing their returns and growing your portfolio.

Not losing AUM Financial Advisors have all experienced a client buying properties in the U.S. It’s important to have an option to finance that purchase and not loose assets under management.

Here are three reasons why financial advisors should recommend Milo to their international investors clients:

Milo Solves the Problems International Buyers Face

Milo brings your investor clients the best benefits, service, and experience on the market. Milo offers the speed of a private lender and the affordable interest rates of a bank.

Traditional lending sources give international clients a hard time. Here’s a glimpse:

Cash buying might be a simple and straightforward solution to investing. But, it also means that there is a lot of capital trapped in real estate. Cash buyers are typically burdened by the difficult lending process, so they invest in cash instead. However, their investment is trapped and they can’t move it easily.

Big banks have time-consuming and complicated processes. Banks require visits and documents that international clients may not have. It also takes on average 3 months to close a loan.

Hard money lenders are fast, but their high interest rates and short terms aren’t the ideal circumstances for international buyers.

While these three funding options aren’t serving your clients the ease, simplicity, and convenience they deserve, Milo is different. Milo was created with these hardships in mind, and our solution is reinventing how international buyers get funding.

Lending with Milo is Fast

Whether an international buyer is looking for a new mortgage or approaching a refinance to get a cash out of their equity, working with Milo is always fast.

Getting pre-approved with Milo only takes 10 minutes – and 89% of borrowers who apply for Milo so far have gotten approved. On average, Milo’s digital lending solution is 3 times faster than a traditional bank. That’s because we don’t require bank visits, necessitate travel, or spend time creating barriers for our international buyers. Our digital lending model lets our customers apply and receive their loans without having to jump through unnecessary hoops.

Milo’s process is transparent and seamless, letting loans close in weeks, not months.

Milo Creates a Comfortable Experience

Milo is a digital banking and lending platform empowering foreign clients to access U.S markets and unlock what’s possible. Since the process is conducted fully online, it’s possible to go from pre-approval to closing without your international client ever having to travel to the U.S.

It’s never been easier for your clients to finance their U.S. home loans. Visit our website to learn more about Milo’s services.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.


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