Finding Deals In The US As A Canadian Investor?
Ottawa, ON · Member since 2023 · 111 posts · 32 votes
Finding Deals In The US As A Canadian Investor?
Most Popular Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes@Sam Chicquen many Canadians invest in the US. I would think if you joined a local REI Association in Ottawa, you would even meet several people with similar goals? I lived in Canada a long time ago and bought a house in California-as a Canadian. It is done every day. Lots of Canadians own MF in the US and I will bet they have all had to build their teams along the way too. I hope some folks will respond to this thread. But still find a local REI as well. Do some searches here on the site too. It does get covered a fair bit. All the best!
25 Replies
- Realtor · OK · Member since 2020 · 139 posts · 165 votes3y
Interesting question, I always wondered if it was harder for non-US Citizens to purchase/manage real estate here in the states. My first suggestion would be to find a point of contact that can give the basic process for any hoops you can expect like another Canadian investor or U.S. based agent close to the border that works with clients from Canada. Once you get that it would be the standard process of figuring out your buying criteria and sending it. @Spencer Riche may be able to give you some solid advice too!
- 3yBjorn AhlbladPro MemberInvestor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
@Sam Chicquen many Canadians invest in the US. I would think if you joined a local REI Association in Ottawa, you would even meet several people with similar goals? I lived in Canada a long time ago and bought a house in California-as a Canadian. It is done every day. Lots of Canadians own MF in the US and I will bet they have all had to build their teams along the way too. I hope some folks will respond to this thread. But still find a local REI as well. Do some searches here on the site too. It does get covered a fair bit. All the best!
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
Ive been a great resource for my international partners here in my market. would love to connect....
- 3yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Plenty of our clients live abroad. I'd say attorney is your top concern, be aware of FIRPTA when selling, otherwise commercial deals are nearly identical. Lender and local partner are probably top 1-2 needs.
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Kevin Pillow:
Interesting question, I always wondered if it was harder for non-US Citizens to purchase/manage real estate here in the states. My first suggestion would be to find a point of contact that can give the basic process for any hoops you can expect like another Canadian investor or U.S. based agent close to the border that works with clients from Canada. Once you get that it would be the standard process of figuring out your buying criteria and sending it. @Spencer Riche may be able to give you some solid advice too!
@Kevin Pillow Thanks for the advice! I really appreciate it.
I'll DM Spencer Rich and see what knowledge he has to share! One more question for you, do you personally work with any foreign investors? Canadians specifically?
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Bjorn Ahlblad:
@Sam Chicquen many Canadians invest in the US. I would think if you joined a local REI Association in Ottawa, you would even meet several people with similar goals? I lived in Canada a long time ago and bought a house in California-as a Canadian. It is done every day. Lots of Canadians own MF in the US and I will bet they have all had to build their teams along the way too. I hope some folks will respond to this thread. But still find a local REI as well. Do some searches here on the site too. It does get covered a fair bit. All the best!
Hey @Bjorn Ahlblad I'm not sure if you remember me, but you gave me advice a while back and I took it! I'm currently a member of "OREIO" in Ottawa and since we last spoke i've learnt a lot more! I went to my first meetup last Wednesday. Again, I really appreciate you answering this thread! Thanks for the advice, and your time.
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote fro@Kerry Noble Jr:
Ive been a great resource for my international partners here in my market. would love to connect....
Thanks for replying!
Me too! I'll send you a DM right now.
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Ronald Rohde:
Plenty of our clients live abroad. I'd say attorney is your top concern, be aware of FIRPTA when selling, otherwise commercial deals are nearly identical. Lender and local partner are probably top 1-2 needs.
I appreciate the response thank you.
Really good information, i'll definitely look into that! Any chance I could DM you to chat?
- Investor · Ottawa, Ontario · Member since 2014 · 47 posts · 17 votes3y
If you were starting from scratch ......
First, it's essential to establish credibility and showcase your investment criteria. You can achieve this by reaching out to brokers and presenting them with your investment requirements and qualifications.
In addition to contacting brokers, I would highly recommend finding a US partner who can provide local expertise and have a physical presence in the market. Having a partner "on the ground" can significantly expedite the process and open doors to opportunities that might otherwise be challenging to access.
By partnering with someone who understands the local market, you can benefit from their knowledge of neighborhoods, property values, and potential investment opportunities. They can also assist in building relationships with local service providers, contractors, property managers, and other professionals necessary for successful multi-family property investing.
With a combination of establishing credibility with brokers and leveraging the expertise of a US partner, you can increase your chances of finding suitable multi-family investment opportunities and build a reliable team to support your investment endeavors.
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Mathieu Laquerre:
If you were starting from scratch ......
First, it's essential to establish credibility and showcase your investment criteria. You can achieve this by reaching out to brokers and presenting them with your investment requirements and qualifications.
In addition to contacting brokers, I would highly recommend finding a US partner who can provide local expertise and have a physical presence in the market. Having a partner "on the ground" can significantly expedite the process and open doors to opportunities that might otherwise be challenging to access.
By partnering with someone who understands the local market, you can benefit from their knowledge of neighborhoods, property values, and potential investment opportunities. They can also assist in building relationships with local service providers, contractors, property managers, and other professionals necessary for successful multi-family property investing.
With a combination of establishing credibility with brokers and leveraging the expertise of a US partner, you can increase your chances of finding suitable multi-family investment opportunities and build a reliable team to support your investment endeavors.
Thank you for the valuable advice! Starting from scratch can be daunting, but I understand the importance of building credibility and showcasing my investment criteria. Reaching out to brokers and presenting my requirements and qualifications sounds like a great way to establish myself in the market.
Finding a US partner with local expertise seems like a smart move, I see the value in partnering with someone who knows the neighborhoods, property values, and potential investment opportunities.
Overall, I appreciate the guidance and will start working on implementing these strategies right away. Would it be possibly for me to contact you and connect?
- Investor · Ottawa, Ontario · Member since 2014 · 47 posts · 17 votes3y
My pleasure feel free to reach out anytime
- Rental Property Investor · Saint-Hubert, Québec · Member since 2017 · 70 posts · 44 votes3y
As a fellow Canadian who has invested in the US, I'd say your first hurdle will be to find a lender that will lend to you cross border.
You can try the big Canadian banks with US branches but from my experience they only seem to lend for vacation properties in certain states (Florida should be easy peasy for such a property with the amount of snowbirds out there).
I haven't found any lenders who would finance an investment property held by a Canadian that lives in Canada (they will lend to you if you're a Canadian living in the US).
Also not all insurance companies will want to cover your investment property as a Canadian without any residence in the states. Oddly enough though, I was able to get coverage with liberty mutual when I had my duplex in NY state.
And then, as it has been mentioned before, another important thing you'll need is someone you can trust that will be your boots on the ground.
And to top it all off, you'll need an accountant that deals with cross border tax for your investment property. The tax implications are huge when you sell your building (they withhold 10% or so of the selling price at closing to make your you pay the IRS).
For all these reasons, I decided to exit my US investments as I found it was too hard to scale with no lending partners.
If you manage to find a lender, let me know because price wise the US is much more interesting than Canada.
Best of luck!
- 3yMatthew DrouinPro MemberDeveloper · Rochester, NY · Member since 2016 · 406 posts · 339 votes
@Sam Chicquen
You wouldn’t be the first Canadian to invest in the US and certainly not the last.
I’ve heard cash flow is virtually a myth in Canadian real estate.
One BP member recommended reaching out to brokers. Agreed. However…
I would try to identify one or two markets in the US that are going to meet your criteria first. And then decide to really commit and start drilling deep into that market.
Now, this is not a life sentence to that market but you are going to have to make a concerted effort to turning over some stones and building relationships in that market.
The reason why is the best, most knowledgeable brokers on investment properties are going to be very busy. I used to be a RE broker for 16 years before I retired from that business.
I would get calls all the time from out of town and even international buyers. I learned very quickly that 99% of the time, they were going to be a colossal waste of time.
So I decided that I was going to have three major tests before I decided to spend more than 30 min with them:
1.) Do they have the financial means with which to buy something that meets their criteria?
2.) Does their online presence make them look like they have their proverbial 💩 together?
3.) Have they physically visited our market? Like actually taken a trip here?
Number 3 is important for several different reasons. I only want to work with smart investors. Those who are educated decisive and committed. Would I really invest a significant chunk of my wealth without actually being familiar with how the market feels? Also it shows to me, serious commitment which means that even if this person is just starting out, they are willing to waste some valuable time if this doesn’t work out.
Either way if Rochester NY is a market you are considering, come visit our REIA. We meet several times a month so there are several opportunities to walk the market and meet some local pros!
- 3yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Quote from @Sam Chicquen:
Quote from @Ronald Rohde:
Plenty of our clients live abroad. I'd say attorney is your top concern, be aware of FIRPTA when selling, otherwise commercial deals are nearly identical. Lender and local partner are probably top 1-2 needs.
I appreciate the response thank you.
Really good information, i'll definitely look into that! Any chance I could DM you to chat?
Sure you can DM, but I prefer posting questions here. That way everyone can benefit from your Question and the answer.
- 3yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
don't.
stay local.
- Realtor · OK · Member since 2020 · 139 posts · 165 votes3y
Quote from @Sam Chicquen:
Quote from @Kevin Pillow:
Interesting question, I always wondered if it was harder for non-US Citizens to purchase/manage real estate here in the states. My first suggestion would be to find a point of contact that can give the basic process for any hoops you can expect like another Canadian investor or U.S. based agent close to the border that works with clients from Canada. Once you get that it would be the standard process of figuring out your buying criteria and sending it. @Spencer Riche may be able to give you some solid advice too!
@Kevin Pillow Thanks for the advice! I really appreciate it.
I'll DM Spencer Rich and see what knowledge he has to share! One more question for you, do you personally work with any foreign investors? Canadians specifically?
No, I haven't had the chance but Florida passed a new law making it hard for citizens of countries like China, Russia and North Korea to buy property/land in certain areas. If I get the chance to help a foreign buyer I would most likely team up with an agent on my team who has done so before. @Matt "Roar" Gardner is certified to work with foreign buyers.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
First, conduct thorough research on market trends and property prices. Second, network with real estate professionals to gain valuable insights and connections. Third, find a specialized Texas agent to guide you through the process. Fourth, assemble a team of experts, including an attorney, accountant, and inspector. Fifth, explore financing options through a mortgage broker. Sixth, perform diligent property evaluations. Finally, consider professional property management to ensure smooth operations.
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Frederic Babeux:
As a fellow Canadian who has invested in the US, I'd say your first hurdle will be to find a lender that will lend to you cross border.
You can try the big Canadian banks with US branches but from my experience they only seem to lend for vacation properties in certain states (Florida should be easy peasy for such a property with the amount of snowbirds out there).
I haven't found any lenders who would finance an investment property held by a Canadian that lives in Canada (they will lend to you if you're a Canadian living in the US).
Also not all insurance companies will want to cover your investment property as a Canadian without any residence in the states. Oddly enough though, I was able to get coverage with liberty mutual when I had my duplex in NY state.
And then, as it has been mentioned before, another important thing you'll need is someone you can trust that will be your boots on the ground.
And to top it all off, you'll need an accountant that deals with cross border tax for your investment property. The tax implications are huge when you sell your building (they withhold 10% or so of the selling price at closing to make your you pay the IRS).
For all these reasons, I decided to exit my US investments as I found it was too hard to scale with no lending partners.
If you manage to find a lender, let me know because price wise the US is much more interesting than Canada.
Best of luck!
Thank you for providing valuable information. I am diligently taking notes to create a comprehensive plan for execution. I will certainly keep you informed when I come across a lender who is comfortable with cross-border lending.You mentioned your prior experience in investing in the United States. I am curious if you utilized personal capital for property purchases. If you are amenable, I would greatly appreciate the opportunity to schedule a phone call or arrange a meeting over lunch to discuss your experiences further.
Additionally, if you are aware of any Canadian investors who have successfully invested in the USA, I would be grateful for any contact information you could share.
Thank you once again for your help, and I look forward to the possibility of further discussions.
Thank you for providing valuable information. I am diligently taking notes to create a comprehensive plan for execution. I will certainly keep you informed when I come across a lender who is comfortable with cross-border lending.You mentioned your prior experience in investing in the United States. I am curious if you utilized personal capital for property purchases. If you are amenable, I would greatly appreciate the opportunity to schedule a phone call or arrange a meeting over lunch to discuss your experiences further.
Additionally, if you are aware of any Canadian investors who have successfully invested in the USA, I would be grateful for any contact information you could share.
Thank you once again for your help, and I look forward to the possibility of further discussions.
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Matthew Drouin:
@Sam Chicquen
You wouldn’t be the first Canadian to invest in the US and certainly not the last.
I’ve heard cash flow is virtually a myth in Canadian real estate.
One BP member recommended reaching out to brokers. Agreed. However…
I would try to identify one or two markets in the US that are going to meet your criteria first. And then decide to really commit and start drilling deep into that market.
Now, this is not a life sentence to that market but you are going to have to make a concerted effort to turning over some stones and building relationships in that market.
The reason why is the best, most knowledgeable brokers on investment properties are going to be very busy. I used to be a RE broker for 16 years before I retired from that business.
I would get calls all the time from out of town and even international buyers. I learned very quickly that 99% of the time, they were going to be a colossal waste of time.
So I decided that I was going to have three major tests before I decided to spend more than 30 min with them:
1.) Do they have the financial means with which to buy something that meets their criteria?
2.) Does their online presence make them look like they have their proverbial 💩 together?
3.) Have they physically visited our market? Like actually taken a trip here?
Number 3 is important for several different reasons. I only want to work with smart investors. Those who are educated decisive and committed. Would I really invest a significant chunk of my wealth without actually being familiar with how the market feels? Also it shows to me, serious commitment which means that even if this person is just starting out, they are willing to waste some valuable time if this doesn’t work out.
Either way if Rochester NY is a market you are considering, come visit our REIA. We meet several times a month so there are several opportunities to walk the market and meet some local pros!
Thank you for sharing your insights on Canadian investors in the US and you're experience as a former real estate broker. It's reassuring to know that many Canadians have successfully invested in the US market, and I'm looking forward to joining their ranks.
Your advice on identifying specific US markets that align with my criteria and dedicating effort to build relationships makes a lot of sense. I understand the importance of demonstrating my financial capacity, maintaining a professional online presence, and physically visiting the markets I'm considering to work with knowledgeable brokers like yourself.
I appreciate your invitation to attend your REIA meetings. I believe networking and gaining insights from local professionals will be invaluable in my investment journey.
I'll make sure to conduct thorough research and be well-prepared before reaching out to brokers, ensuring that I meet the criteria you've outlined. Thank you again for your valuable advice.
I've been contemplating the idea of investing in New York as it's conveniently close to the border, allowing me to drive down there for potential opportunities. Building a professional relationship with you would be awesome. I hope that one day we can explore potential collaboration together!
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Kevin Pillow:
Quote from @Sam Chicquen:
Quote from @Kevin Pillow:
Interesting question, I always wondered if it was harder for non-US Citizens to purchase/manage real estate here in the states. My first suggestion would be to find a point of contact that can give the basic process for any hoops you can expect like another Canadian investor or U.S. based agent close to the border that works with clients from Canada. Once you get that it would be the standard process of figuring out your buying criteria and sending it. @Spencer Riche may be able to give you some solid advice too!
@Kevin Pillow Thanks for the advice! I really appreciate it.
I'll DM Spencer Rich and see what knowledge he has to share! One more question for you, do you personally work with any foreign investors? Canadians specifically?
No, I haven't had the chance but Florida passed a new law making it hard for citizens of countries like China, Russia and North Korea to buy property/land in certain areas. If I get the chance to help a foreign buyer I would most likely team up with an agent on my team who has done so before. @Matt "Roar" Gardner is certified to work with foreign buyers.
That's unfortunate, seems like there's been a lot of road barriers in the past few years.. Especially here in Canada!
I'll DM him right now and see if his up for a few questions!
Again thank you for your time Kevin, I'm hoping we can someday work together or stay in contact!
- 3yMatthew DrouinPro MemberDeveloper · Rochester, NY · Member since 2016 · 406 posts · 339 votes
Sam, no problem. Glad to help! Let me know if you are planning a visit and I'll plug you in!
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Nicholas L.:
don't.
stay local.
I'd love to hear your point of view and insights. Why would you recommend local?
- Ottawa, ON · Member since 2023 · 111 posts · 32 votes3y
Quote from @Jay Thomas:
First, conduct thorough research on market trends and property prices. Second, network with real estate professionals to gain valuable insights and connections. Third, find a specialized Texas agent to guide you through the process. Fourth, assemble a team of experts, including an attorney, accountant, and inspector. Fifth, explore financing options through a mortgage broker. Sixth, perform diligent property evaluations. Finally, consider professional property management to ensure smooth operations.
Thank you for generously sharing your knowledge it is highly appreciated! I will certainly take all this valuable information on board and make sure to jot it down. Currently, I am in the process of creating a comprehensive plan, and your insights will undoubtedly be included in it.
I have a question for you as well: have you had personal experience working with Canadian real estate investors? Your firsthand experience could offer further insights that I would find incredibly beneficial.
- 3yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
there's just no substitute for being in-person and hands-on. when you're remote / thousands of miles away it's much harder to build a network, look at properties in person, get to know an area, supervise or manage a rehab, get a project off the ground, etc.
- 3yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Contact PMs & Agents to find two that will work together on your behalf.
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