Investing from Canada

[Munjal Adhvaryu]

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

[Nicholas L.]

@Munjal Adhvaryu

are you able to travel in person to your target market to build a team and look at properties?

if not... i'd say stay local to Canada 

'cash flow' is very, very tough right now with interest rates and prices both high

[Munjal Adhvaryu]

Hi Nicholas,

I can travel in-person but only up to a certain extent. 

Thank you for your response

[Cody Neustaedter]

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

Hi Munjal! Not to say that you can't jump to long distance investing right away but if you don't have any experience I would try to at least invest in one property within a 1-2 hour drive from where you live. I also recommend self-managing this property so that you can get that experience. After the first property if you still enjoy REI, you will be better informed for long distance investing and how to hire a full team. Agents, lenders, contractors, property managers, are all crucial to your success.

[Maz Pardhan]

Hi Munjal, I’m also a Canadian investor, investing in the US for cash flow. The. CAshflow in certain markets kills anything in Canada which is probably why you’re looking. The turnkey method is ideal as they handle everything. I’ve been investing in Detroit for several years and along with cash flow property values have started to increase significantly. With all that said you need to find a trustworthy organization to deal with, this is key to everything as you really need someone to look after the renovations and management. 

Navigating the ownership structure is actually straightforward and inexpensive as well. Dm me if you have any specific questions or need resource references. 

[Patricia Steiner]

I have many out of market/state/country investor clients (and I also do out-of-state investing for my own portfolio) who self-manage their properties which is the best way to maximize cash flow and retain control of your investment. You'll need a realtor/broker who specializes in investment properties in order to not only acquire the right property in the right market but to gain introductions to vetted contractors and resources.  You'll also need to be well-versed in the Landlord-Tenant Laws of the state you purchase in as well as resources for tenant screening and contracts.  Buying a property is easy...it's the rest that takes it from a cash outlay to a cash inflow experience. 

Hope this helps...and you can do this.  

Best...

[Munjal Adhvaryu]

Quote from @Patricia Steiner:

I have many out of market/state/country investor clients (and I also do out-of-state investing for my own portfolio) who self-manage their properties which is the best way to maximize cash flow and retain control of your investment. You'll need a realtor/broker who specializes in investment properties in order to not only acquire the right property in the right market but to gain introductions to vetted contractors and resources.  You'll also need to be well-versed in the Landlord-Tenant Laws of the state you purchase in as well as resources for tenant screening and contracts.  Buying a property is easy...it's the rest that takes it from a cash outlay to a cash inflow experience. 

Hope this helps...and you can do this.  

Best...

 Hi Patricia,

It totally makes sense. Thank you for your advice!

[Munjal Adhvaryu]

Quote from @Maz Pardhan:

Hi Munjal, I’m also a Canadian investor, investing in the US for cash flow. The. CAshflow in certain markets kills anything in Canada which is probably why you’re looking. The turnkey method is ideal as they handle everything. I’ve been investing in Detroit for several years and along with cash flow property values have started to increase significantly. With all that said you need to find a trustworthy organization to deal with, this is key to everything as you really need someone to look after the renovations and management. 

Navigating the ownership structure is actually straightforward and inexpensive as well. Dm me if you have any specific questions or need resource references. 

 Hi Maz, can you recommend any turnkey dealers?

Thank you

Munjal

[Maz Pardhan]

I’ll dm you with contact details  for all of my deals, where they  source the property , provide  rehab estimates , arrange for renovation and manage them, as well get tenants in place. 

Quote from @Munjal Adhvaryu:

Quote from @Maz Pardhan:

Hi Munjal, I’m also a Canadian investor, investing in the US for cash flow. The. CAshflow in certain markets kills anything in Canada which is probably why you’re looking. The turnkey method is ideal as they handle everything. I’ve been investing in Detroit for several years and along with cash flow property values have started to increase significantly. With all that said you need to find a trustworthy organization to deal with, this is key to everything as you really need someone to look after the renovations and management. 

Navigating the ownership structure is actually straightforward and inexpensive as well. Dm me if you have any specific questions or need resource references. 

 Hi Maz, can you recommend any turnkey dealers?

Thank you

Munjal

[Drew Sygit]

@Munjal Adhvaryu we have a lot of Canadians investing in Detroit because there's only a river separating the USA and Canada.

So, we're very familiar wth LLC and tax requirements for foreign investors.

PM us for more info.

[Taz Zettergren]

@Munjal Adhvaryu welcome to the forums Munjal! I work with hundreds of out of state clients and a few dozen that are out of the country that include a few in Canada. Most of our clients prefer the middle/southern part of the country because the price points are much easier and the laws are landlord friendly. 

Feel free to reach out if you have any questions, I'd be happy to assist. Best of luck investing! 

[Zeke Liston]

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

 That's great Munjal, do you have a specific area that you're hoping to invest in? That would be a good starting point. Once you've identified the city you want to invest in, I would start building your CORE 4. 

[Munjal Adhvaryu]

Quote from @Zeke Liston:

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

 That's great Munjal, do you have a specific area that you're hoping to invest in? That would be a good starting point. Once you've identified the city you want to invest in, I would start building your CORE 4. 

I haven't as I don't really know and/or understand US real estate landscape. From the forum, I am hearing Cleveland, Columbus, Detroit, Florida (NW and SW). I am assuming these markets are poised for a significant growth in future. Again, I don't know anything about these markets :)

[Munjal Adhvaryu]

Quote from @Taz Zettergren:

@Munjal Adhvaryu welcome to the forums Munjal! I work with hundreds of out of state clients and a few dozen that are out of the country that include a few in Canada. Most of our clients prefer the middle/southern part of the country because the price points are much easier and the laws are landlord friendly. 

Feel free to reach out if you have any questions, I'd be happy to assist. Best of luck investing! 

Hi Taz, 

This is exactly what I am learning in my 1 week of research about US real estate market :)

I am starting to feel that Central and Northern Ohio + Detroit and Southern states are places to go. 

[Joshua Janus]

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

 Cleveland, Ohio!

[Alfath Ahmed]

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

I started my real estate journey by house-hacking a duplex in Southern Orchards next to Nationwide Children's Hospital. From there, I shifted my focus to scaling while recycling my capital. So, I decided to use the BRRRR strategy by finding amazing deals off-market by cold-calling. I built my team of sub-contractors and now I focus primarily on mid-sized multi-family.

I started my real estate journey by house-hacking a duplex in Southern Orchards next to Nationwide Children's Hospital. From there, I shifted my focus to scaling while recycling my capital. So, I decided to use the BRRRR strategy by finding amazing deals off-market by cold-calling. I built my team of sub-contractors and now I focus primarily on mid-sized multi-family.

[Jessica Larson]

Many Canadians invest in the Cleveland market because of the cashflow opportunities here! If you have a good team to be your boots on the ground, they will be able to assist you and walk you through the process. Would love to chat!

[Michael Smythe]

@Munjal Adhvaryu 

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

[Jimmy Lieu]

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

Hey Munjal, I'd recommend that you look into Columbus Ohio. I like Columbus Ohio because I see it being one of the biggest metropolitan cities in the next 10-20 years, all signs are pointing here! Population is growing aggressively and jobs are moving here especially with major employers like Intel, Google, Amazon, Nationwide, etc. On top of that, you have one of the biggest and best universities in the world here with Ohio State University. The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here. On top of that, you get great appreciation and very landlord friendly laws. Tons of investors are buying Columbus up! As an investor and agent here, let me know if you have any questions or want to connect

[Bob Stevens]

Quote from @Munjal Adhvaryu:

Hello all, 

Trying to get into US Real-estate market from Canada. 

I do not have any real estate investing experience.

Interested in Cash flow properties. 

Where can I start? 

Turnkey services is also something that I am willing to look into. 

Any help would be super appreciated.

Thank you

 Do you have about 100k? You do not have any choice but to pay cash. I know many that have purchased and are still buying in the Cleveland markets, 

Good luck 

[Simon Ashbaugh]

Hey Munjal, you should check out Cleveland OH. The city offers a strong rental market and with affordability as well as a median home price below the national average, the city stands out as an attractive option.