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Updated over 7 years ago on . Most recent reply

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Zachary Derksen
  • Winnipeg, MB
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Canadians investing in the US!?

Zachary Derksen
  • Winnipeg, MB
Posted

Hey there everyone!

My name is Zach, and I'm a newb to BP. My brother and I are Canadians (dual citizens actually, but born and raised in Canada), currently own two rental condos in Florida (without a mortgage on them), and are looking to sell them and use the money as a downpayment to buy a multifamily unit in Texas. We just started looking around at different financing options, but it seems like there are massive limits for Canadians trying to get a US mortgage. So I suppose I have a couple questions for whoever happens to see this post and knows a thing or two about Canadians investing in US real estate!

- Are there lenders that give mortgages for Canadians looking to buy commercial property in the US?

- What are generally the best options for creating a corporate structure for a Canadian investing in Texas?

- What is other general advise for someone in my position?

Hope to hear back from someone!

Zach

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Joel Owens
  • Real Estate Broker
  • Canton, GA
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Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied

Hi Zach,

There are some options.

What kind of money down and loan size are we talking??

If it's a small loan you would benefit more from TD bank or RBC bank that are from Canada but lend in certain states here where they have branches to Canadians at favorable terms.

The local banks for foreigners have some foreign national programs but they want more than the traditional 25% down which after exchange rates for money and the international tax treaty offset kills cash on cash returns. The local banks have the regulators on them and really want a relationship with a local investor here in the states. Some of my other foreign clients I have called over 100 banks for them to see what was available. It's very limited for foreigners but there are some loans.

If you go larger in deal size for commercial I have CMBS lenders for clients that will lend at regular down payment 25% and rates to foreigners. Certain countries that have no tax returns or are known for money laundering and terrorist activity they will not touch but Canada is not one of them they mention. The minimum loan size is generally 2 million and up so 500k down at 25% and they want to see another 200k liquid for reserves after down payment. You will need about another 50k or so for due diligence and closing costs and lender legal with a 1% origination fee.

Hope it helps.

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