Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago on . Most recent reply

Account Closed
  • Calgary, Alberta
1
Votes |
17
Posts

Canadian looking for info on setting up US corporation for REI

Account Closed
  • Calgary, Alberta
Posted

Hey Everyone,

I am a Calgary resident, Canadian citizen looking for primary resources on the limitations of US real estate investing as a Canadian. My plan is to set up a C Corporation in the state I'm most interested in investing in (looks like Montana at this point). I am looking for credible sources on the following topics:

1) The cost of setting up a C Corp in Montana

2) US rules about foreign nationals owning a US C Corp to do business (my research can only go so far when looking at what C Corporations can do, but I'm sure there are limitations because the owner and president would be a Canadian citizen)

3) How C Corporations can get a mortgage, rules around Private Money investing (in Canada they are pretty strict), rules around Hard Money Investing.

4) Double taxation with Corporations.

5) Anything else you think I should know about this particular situation, or even if you live in Montana, give me a shout!

I'm looking to a lot of research upfront and make sure I have a relatively solid plan of attack before I hire a Cross-Border specialist for $100 an hour. I am starting to analyze deals, but getting financing as a Corp will be difficult. What bank will take me with no assets?

Most Popular Reply

User Stats

95
Posts
42
Votes
Mazen Al Ashkar
  • Real Estate Investor
  • Montreal, Quebec
42
Votes |
95
Posts
Mazen Al Ashkar
  • Real Estate Investor
  • Montreal, Quebec
Replied

@Account Closed provided massive value but one thing i would add is to consider shifting your focus more on getting started than nailing down the right structure with all the combinations for taxes, etc... 

You mentioned 2 things that caught my attention. 

1) You can get great deals (I'm assuming you can qualify/quantify a good deal) 

2) You have excellent credit in Canada, can you not take a line of credit from Canada to finance and then refi in the US after seasoning with solid rents?

Personally, i setup a LP with 1% General partner being a LLC for liability protection. This way i avoid double taxation on the 99% of the partnership and 1% of LLC, i just have to eat it.

Again, i think you can get started much sooner thank you think if you just focus on the 80/20. 

Hope this helps

Loading replies...