Canadian looking to build US network and start investing

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Canadian looking to build US network and start investing

Marci Matejcek
Real Estate Agent · Ontario, Canada · Member since 2020 · 21 posts · 9 votes

Hello, I want to shift my focus from investing in Canada to the US. I can't compete in this market here and I want to get started asap on increasing my investment portfolio. I'm wondering where the best markets are to invest, for a beginner - looking for turnkey properties at the moment. I also need a Realtor and/or wholesaler that I can trust to advise me and work with me, as well as a lender and an accountant and lawyer to get my business started up. I have a big why, I am dedicated to making this work, but I need a community in place because I know I can't do this alone. 


I am a Realtor in Ontario Canada and have a small investment portfolio here, so I am somewhat experienced but there is a lot I still need to learn about the US. 

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Brian Hosier
Investor · Port Coquitlam, BC · Member since 2013 · 203 posts · 119 votes
5y

Hi @Marci Matejcek and congrats on making the decision to expand your search into the US. One caution is the risk of double taxation once you scale your business. I'm not an accountant but it's in your interest to setup the right entities such as a limited partnership, holding company, etc., rather than just an LLC. If you're goal is to eventually create a large portfolio in the US, as a Canadian living in Canada, the business structure is more complicated if you want to minimize taxes.

Regarding "you can't compete in this market here", there are many cash flowing markets in Canada. I agree that the GTA is crazy but if you're willing to consider longer distances, or out of province, there are deals to be found. I have a few friends investing in the Maritimes and they have prices like what you would find in the US - e.g. SFH for 100k or less.

I invest in turnkey in Saskatchewan and they have some good deals there with great cash flow. If you want to get more details, just message me. Good luck with your real estate investing. 

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  • Melanie Dupuis
    Investor · North Bay, Ontario · Member since 2019 · 221 posts · 99 votes
    5y

    Hey @Marci Matejcek, we are also looking at starting to invest in America. I do know however there are still a lot of markets you could make great cashflow on here in Canada.

    1Reply
  • Kwame Amoako
    Real Estate Agent · Columbus, OH · Member since 2019 · 82 posts · 133 votes
    5y

    Hey, @Marci Matejcek 

    You should consider looking at Columbus, Ohio. We have a great mix of cashflow and appreciation, coupled with amazing population growth and a diverse economy.  

    2Reply
  • Brian Hosier
    Investor · Port Coquitlam, BC · Member since 2013 · 203 posts · 119 votes
    5y

    Hi @Marci Matejcek and congrats on making the decision to expand your search into the US. One caution is the risk of double taxation once you scale your business. I'm not an accountant but it's in your interest to setup the right entities such as a limited partnership, holding company, etc., rather than just an LLC. If you're goal is to eventually create a large portfolio in the US, as a Canadian living in Canada, the business structure is more complicated if you want to minimize taxes.

    Regarding "you can't compete in this market here", there are many cash flowing markets in Canada. I agree that the GTA is crazy but if you're willing to consider longer distances, or out of province, there are deals to be found. I have a few friends investing in the Maritimes and they have prices like what you would find in the US - e.g. SFH for 100k or less.

    I invest in turnkey in Saskatchewan and they have some good deals there with great cash flow. If you want to get more details, just message me. Good luck with your real estate investing. 

    7Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Marci Matejcek:

    Hello, I want to shift my focus from investing in Canada to the US. I can't compete in this market here and I want to get started asap on increasing my investment portfolio. I'm wondering where the best markets are to invest, for a beginner - looking for turnkey properties at the moment. I also need a Realtor and/or wholesaler that I can trust to advise me and work with me, as well as a lender and an accountant and lawyer to get my business started up. I have a big why, I am dedicated to making this work, but I need a community in place because I know I can't do this alone. 


    I am a Realtor in Ontario Canada and have a small investment portfolio here, so I am somewhat experienced but there is a lot I still need to learn about the US. 

     Have you looked into OOS investing in Columbus, Ohio? I know a lot of investors that have gotten their start here.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Marci Matejcek:

    Hello, I want to shift my focus from investing in Canada to the US. I can't compete in this market here and I want to get started asap on increasing my investment portfolio. I'm wondering where the best markets are to invest, for a beginner - looking for turnkey properties at the moment. I also need a Realtor and/or wholesaler that I can trust to advise me and work with me, as well as a lender and an accountant and lawyer to get my business started up. I have a big why, I am dedicated to making this work, but I need a community in place because I know I can't do this alone. 


    I am a Realtor in Ontario Canada and have a small investment portfolio here, so I am somewhat experienced but there is a lot I still need to learn about the US. 

     I second Columbus, OH.

    1Reply
  • Ty Kashmiry
    Flipper/Rehabber · Powell Ohio · Member since 2020 · 37 posts · 27 votes
    5y

    Columbus Ohio is where its at !!!

    2Reply
  • Michael J Morris
    Rental Property Investor · Phoenix, AZ · Member since 2019 · 7 posts · 1 vote
    5y

    @Brian Hosier: I was under the impression that a canadian would only get double taxation if they convert their USD rental income back into CND. If you get an ITIN in the US and leave your cashflow from your property in US funds, wouldn't you only get taxed by the state where your rental is located?

    1Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    5y

    @Michael J Morris

    Avoiding double taxation is not that complicated.. you can figure it out by watching YouTube videos but professional advice is always recommended

    0Reply
  • Frank Deluca
    Developer · Toronto, Ontario Canada · Member since 2018 · 6 posts · 3 votes
    5y

    I would strongly suggest that you seek out a dual-licensed CA for the US and Canada.. LinkedIN is a great source.. Do this before you start shopping.. it will impact how you set up your deal... It is not complicated if you have your end game clear.. Otherwise, I can guarantee you will find yourself having invested a lot of time.. then money only to learn you are about to be pickpocketed by CRA and the IRS.  Also as a side note... be careful with multifamily as we roll into 2021 - COVID has impacted this market and cashflows might not be as free-flowing as they were in the pre COVID days.. TO LEARN MORE

    1Reply
  • Johnson Yu
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    Hey @Marci Matejcek, I am in the same boat as you looking to invest in the US market as a Canadian. Some great recourses to get educated that I would recommend are "A Canadian investing in the USA" podcast hosted by Glen. He gives out super good information for free. Here is the link: https://podcasts.apple.com/ca/... I would recommend listening to episode 100 as he sums up all the basics. I would also look for landlord friendly sates that favour landlords if you are planning on buy and hold. 

    Another great resource is to get started in turnkey in the US is James at US properties, they do turnkey properties that cashflow in Detroit, Michigan, I can connect you guys too!

    Regarding the taxation issue, I second @Frank Deluca on that, you want to get someone experienced in this issue, I am going on a call with a cross border CPA who was recommended by an investor on Biggerpockets. I can pass along your information to him if you'd like! Let me know!

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    @Marci Matejcek Detroit Michigan!

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
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    0Reply
  • Brent Maxwell
    Real Estate Agent · Detroit, MI · Member since 2016 · 82 posts · 52 votes
    5y
    Originally posted by @Drew Sygit:

    @Marci Matejcek Detroit Michigan!

    Drew is a great guy to know in Detroit. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    @Brent Maxwell is a big guy to know too:)

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
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  • Kevin Mercado
    Toronto, Ontario Canada · Member since 2021 · 9 posts · 3 votes
    4y

    Hi Marci - fellow canadian here based in Toronto, just checking in if you've had any progress? I'm literally in the same boat and have started to realize that there just seems to be more opps. in the states as our market has no signs of slow-down + leverage seems better in the US due to the pricing differences. Looking to connect with you if you had made any progress / and definitely looking forward for partners /learning more

    0Reply
  • Melanie Dupuis
    Investor · North Bay, Ontario · Member since 2019 · 221 posts · 99 votes
    4y

    @Marci Matejcek are you still looking to invest in the US?

    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 994 posts · 1k+ votes
    4y

    Hello Marci, 

    A few comments.

    Rather than tell you a "good" investment location, I will provide the criteria for a good investment location. I recommend selecting a location that best meets the following criteria.

    • Appreciation - The number one criteria in location selection is appreciation. Inflation is constantly eroding buying power; each year, it costs more to buy the same set of goods. If you buy in a location where prices and rents are rising faster than the inflation rate, you will be able to buy the same set of goods because you will have the additional dollars you need from increased rents. When you are evaluating appreciation, ignore the COVID period. During the last year+, locations with low appreciation rates suddenly started performing. This is a blip and not a long-term change. If you buy in a location where prices and rents are increasing below the inflation rate, the amount of goods you can buy will decline over time.
    • Population Size - Greater than 1 million. Small towns may rely too much on a single business or market segment.
    • Population Growth - If people are moving into a location, many things have to be right. I would not invest in any location where the population is stagnant or declining.
    • Crime - People and companies will not move to locations perceived as dangerous. One source of cities to avoid is Neighborhood Scout's 100 most dangerous cities. Avoid any city on this list.
    • Disaster Risk - Some parts of the country are more prone to natural disasters. The best indicator for natural disaster probability is homeowners insurance cost. I would avoid states with high insurance rates. Note, even if insurance pays for all the damage your property suffers, you still lose. When a significant disaster occurs, people and jobs move to locations where they can make money today. The location may take years to recover, or it may never recover. ValuePenguin is a good source for the relative cost of insurance by state.
    • Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return. Select a location with relatively low operational costs. Operational costs are a direct hit on profitability.

    On needing an existing investment team - you are correct.

    If you needed surgery, you would not start medical school. Also, not just any doctor will do. You want a surgeon that specializes in the kind of surgery you need, not a general practitioner. The same is true with real estate investing. You want to work with an investment team that already has the skills and contacts. Good investment teams are hard to find. The place to start is with an investment Realtor. Know that even in a large metro area, there is likely only one or at most two investment Realtors while there will be thousands of residential Realtors. While finding an investment Realtor may take time, the cost, risk, and time savings will be worth it. See the image below for the range of skills you need to be successful.

    If you chose a good investment location and find a local investment team, you should do well.

    ...Eric 

    [email protected]702-358-8884
    FERNWOOD Team, KW VIP Realty520 Reviews
    WebsiteView Page
    0Reply
  • Kevin Mercado
    Toronto, Ontario Canada · Member since 2021 · 9 posts · 3 votes
    4y

    @Melanie Dupuis I'm not sure if this thread is still active, but I did get a notification on your response; I'm definitely still interested. looking for partners on getting into this.

    0Reply
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