Private Lenders Unlock US Real Estate for Foreign National Investors

BALTIMORE, MD – February 25, 2026 – By Anthony Hughes

A recent $1.12 million deal for a 19-unit apartment building in Baltimore has cast a spotlight on a crucial, and often challenging, corner of the American real estate market: foreign national investment. The transaction, financed by direct private lender Kennedy Funding for an Ethiopian-led company, Cityana International Business, LLC, underscores a growing trend where private capital is stepping in to bridge financing gaps left open by conventional banks.

The borrower, headed by Sisay Menji Assena, successfully acquired the garden-style apartment complex at 1214 Walker Avenue in northeast Baltimore. The deal was notable not just for its success, but for the obstacles it overcame. For many foreign nationals, securing financing from traditional U.S. lenders is a labyrinth of regulatory hurdles and stringent requirements, often making timely acquisitions nearly impossible. This transaction serves as a case study in how alternative lenders are becoming essential facilitators for global capital flowing into local U.S. communities.

A Resurgence in Global Interest

The deal comes amid a significant rebound in foreign investment in U.S. real estate. After a notable dip, recent industry data reveals a powerful resurgence, with foreign buyers investing an estimated $56 billion in U.S. residential properties between April 2024 and March 2025. This represents a staggering 33.2% increase from the prior year and marks the first annual rise in such investment since 2017.

Investors from around the globe are increasingly drawn to the perceived stability and security of the U.S. property market, especially when compared to volatility in their home countries. Multi-family properties, like the one acquired in Baltimore, are a particularly attractive asset class. They offer consistent income streams driven by persistent housing demand across the United States. With the U.S. multi-family market representing a dominant share of the world's institutional-grade residential stock, it remains a prime target for international investors seeking to diversify their portfolios and secure long-term, tangible assets.

The Regulatory Maze for International Buyers

The primary driver pushing investors like Cityana International Business toward private lenders is the complex and often prohibitive environment of traditional banking. U.S. banks operate under a strict regulatory framework that creates significant barriers for non-resident borrowers.

Chief among these are the rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, including provisions under the Bank Secrecy Act and the Patriot Act. Verifying a foreign national's identity, source of wealth, and financial history across different legal and financial systems is a time-consuming and high-risk endeavor for banks. Furthermore, most foreign investors lack a U.S. credit history or a FICO score, a fundamental metric in conventional underwriting. Evaluating foreign credit reports and translating extensive financial documentation adds layers of complexity and cost that many institutions are unwilling to bear.

“This deal reflects what we do every day — finance transactions that conventional lenders are not equipped to handle,” said Edwin Urrego, the executive loan officer at Kennedy Funding who originated the transaction. “Foreign national borrowers frequently face additional scrutiny and delays. We were able to focus on the strength of the asset, the occupancy level, and the borrower's equity contribution to structure a solution that worked.”

The Asset-Centric Lending Model

This is where the private lending model diverges sharply from its traditional counterpart. Instead of focusing primarily on the borrower's profile, direct private lenders like Kennedy Funding prioritize the quality and viability of the underlying real estate asset. This asset-centric approach enables them to make decisions with speed and flexibility that are unheard of in the conventional banking world.

In the Baltimore transaction, several key factors made the deal attractive from an asset-based perspective. First, the property was approximately 95% occupied at the time of closing, demonstrating its stability and consistent cash flow. Second, the borrower contributed a substantial 45% in cash equity, a significant commitment that reduces the lender's risk and signals strong confidence in the investment. Kennedy Funding provided the remaining 55% of the capital needed to complete the purchase.

This philosophy allows lenders to bypass the bureaucratic red tape of loan committees and lend their own capital directly. Kennedy Funding President and CEO Kevin Wolfer explained that his firm’s decisions are driven by the real estate itself.

“We look at the complete picture,” said Wolfer. “In this case, the property was 95% occupied, and the borrower brought substantial cash equity. Our role is to recognize opportunity and provide capital when the opportunity works — even if the borrower doesn't fit a conventional banking model.”

Baltimore's Quiet Appeal for Global Capital

While major gateway cities like New York and Los Angeles have long been magnets for foreign capital, this deal highlights the growing appeal of secondary markets like Baltimore. Located in the Idlewood area, the 19-unit complex—comprising twelve two-bedroom units and six one-bedroom units—sits within a stabilized residential neighborhood with strong housing demand.

Baltimore offers a compelling value proposition for investors. Its real estate is relatively affordable compared to other major East Coast metropolitan areas, while its economy is anchored by resilient sectors like healthcare and technology. Ongoing revitalization projects continue to improve the city’s urban fabric, attracting both residents and investors.

The acquisition on Walker Avenue is a tangible example of this dynamic at play. It represents a strategic investment in an income-producing asset within a stable community, a formula that resonates with savvy international investors looking for sustainable growth outside of overheated primary markets. This single transaction, facilitated by a nimble private lender, is a microcosm of the larger economic forces shaping real estate finance, demonstrating how global capital finds its way into American neighborhoods when the right financial partnerships are in place.