Canadian Investor looking for best method to invest in the US

[Daniel Strange-Dedier]

I am a Canadian investor who is looking to purchase my first turnkey property in the next couple of months.

As I am a Canadian resident, who is looking to build out my real estate portfolio.
For tax purposes, I was thinking to form a American LLC, and have the LLC own and hold my properties (as I would like to accumulate at least 10), and reinvest the cash flow from the home, into buying more properties.

I wouldn’t begin to pay myself until I have adequate cash flow. Not sure if this will be the best idea for Tax purposes, and financing purposes, as I would need financing on any properties I buy. I can provide 20% of purchase cost.

I know, as a Canadian owning the property directly, I would be subject to a 30% foreign real estate tax, or something along those lines. Therefor I hypothesize that forming an American LLC for the properties, and owning that LLC would be the most advantageous.

Please let me know if you have any insight, as I would like to begin purchasing property within the next couple months.

Thanks,
Daniel Strange-Dedier

[Daniel Strange-Dedier]

Originally posted by @Jason Shackleton:

Hey @Daniel Strange-Dedier I'm a Canadian investor too from Oshawa. Forming a US LLC is a smart move. I have a lender that will lend to Canadians investing in the US. This is private money but options are definetly limited for foreign buyers.

Good Luck! 

Woah small world, I'm also from Oshawa! What are the terms of your lender? Currently can get financing at 7% interest, and 40% down, if I formed a American LLC,

would enjoy talking more, thanks for the reply!