How to take my business from CAN to USA?

[Guillaume D.]

Hello everyone. I am a full-time real estate investor in Montreal, Canada. I have been able to go from a full-time job, to full-time real estate in about 18 months at the age of 27. I have concluded 12 transactions over the last 12 months. Business is good!

However, I want to bring my business to the US West Coast. This is my main objective and has been for a while now. 

Any of you have any experience on the learnings needed to make the move from CAN to USA? I'm starting from scratch here in terms of the US market, laws, taxes implications, etc.

Thanks a lot for the support!

[Stephen Preston]

Hi, I am Canadian and invest exclusively in the USA. Have flipped over 20 houses in the last 2 years and added 8 to my long-term hold portfolio. I have a good enough team down in Texas now where I can buy, renovate and flip a house without ever seeing it in person - this took a while to build though.

A few considerations:

1. Make sure to get a good cross border accountant. In the beginning, I was fined $10,000 from the IRS for not filing the proper forms in my first year of operations (I was using an American CPA who didnt know foreigners had to file this form) and luckily I found a good accountant who challenged this fine and got it forgiven. Trust me when I say its better to start out with the correct structure and team in place before you make the leap.

2. Speaking of correct structure, there are many options available to you. LLC, C Corp, LP etc. There is no one size fits all and depending on what you want to accomplish (flip and bring cash back to canada, leave funds in USA) and the volume you plan on doing will determine the right structure for you.

I started with an LLC 7 years ago based on advice from someone who didnt really know what they were talking about. LLC's are not recognized by the CRA and can lead to double taxation. I now use a C corp in Texas (owned by my Alberta Corp) and Texas Limited Partnerships.

3. If you are planning on buying and holding a good property management company is so VITAL. This is one thing I was able to get right from the start. I found a real estate investor who was starting a property management company - we spoke the same language and I gave him a shot. His company has done a phenomenal job managing my properties and that has had such an impact on my business - knowing that someone has my back and is watching over my properties. They are now one of the fastest growing property management companies in Houston.

Anyways, I could go on and on. Let me know if there is anything specific I can help you with. You are making a great decision to get involved in USA real estate.