Buying all cash US foreclosures as a Canadian
New to Real Estate · Vancouver, British Columbia · Member since 2022 · 157 posts · 86 votes
The market I had chose to invest in Canada (around halifax) is seeing a bit of a shift. With rates continuing to go up and putting downward pressure on this market, I do not want to rush into a deal unless it absolutely makes sense. In the meantime I have been looking at foreclosure listings in a few states and it seems like you can get some great deals with all cash. Realistically I could put around 100k into the deal all cash. My thought process is this, buy an SFH 80k, reno hold, and rent. When the rates start to shift (my guess in a few years) refinance and reinvest.
Does anyone on here have any experience or insight on this route?
I do understand I may have to set up a corporate structure for tax/legal purposes. The next step would be to talk to a cross border accountant and lawyer. But would Love to here anyones experience doing this, if its even possible.
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Hi @Gurjot Grewal, I have not seen this done on foreclosures but I do not see any reason why this would not work.
Those homes likely will experience more cash flow but less appreciation. If that is your goal is cash flow, this could be a good strategy.
If you care more about wealth, you could buy a $200-300k house at auction and do a cash-out refinance for $100-150k. Your cash flow would not be as good but you will be in better properties in better areas.
Hope this helps! Let me know if I can be of any assistance.
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Thanks for the reply Ron. Did you make these purchases all cash or were you able to get financing in florida ?
Hi @Gurjot Grewal, I have not seen this done on foreclosures but I do not see any reason why this would not work.
Those homes likely will experience more cash flow but less appreciation. If that is your goal is cash flow, this could be a good strategy.
If you care more about wealth, you could buy a $200-300k house at auction and do a cash-out refinance for $100-150k. Your cash flow would not be as good but you will be in better properties in better areas.
Hope this helps! Let me know if I can be of any assistance.
Thanks for the information! My goal at the moment is cash flow. Im hoping to transition into a part time position at my current job if I can get enough cash flow. Sounds promising ill dig deeper into this!
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Thanks for the reply Ron. Did you make these purchases all cash or were you able to get financing in florida ?
Mine were all cash purchases.
The market I had chose to invest in Canada (around halifax) is seeing a bit of a shift. With rates continuing to go up and putting downward pressure on this market, I do not want to rush into a deal unless it absolutely makes sense. In the meantime I have been looking at foreclosure listings in a few states and it seems like you can get some great deals with all cash. Realistically I could put around 100k into the deal all cash. My thought process is this, buy an SFH 80k, reno hold, and rent. When the rates start to shift (my guess in a few years) refinance and reinvest.
Does anyone on here have any experience or insight on this route?
I do understand I may have to set up a corporate structure for tax/legal purposes. The next step would be to talk to a cross border accountant and lawyer. But would Love to here anyones experience doing this, if its even possible.
I started buying foreclosures in the US in 2013. However I would not recommend this as a start-out strategy if you have never purchased in the US before. You'd be hard pressed in any event to find a deal on a foreclosure as they are at their all-time lows and are getting bid up into the stratosphere.
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Hello Roy,
If you don't mind, can I ask a question? For the properties you still hold in the US, did you refinance them and take out the equity? I have bought a rental property in US too in 2012, still holding it. The house has quite a lot equity in it now. However, I could not find a bank in the US to let me refinance it because I am not in the US. Same here in Canada, the banks also can't do refinancing for US property. I still don't want to sell it now since I need to pay a lot of tax on it. Thanks a lot in advance!
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Hello Roy,
If you don't mind, can I ask a question? For the properties you still hold in the US, did you refinance them and take out the equity? I have bought a rental property in US too in 2012, still holding it. The house has quite a lot equity in it now. However, I could not find a bank in the US to let me refinance it because I am not in the US. Same here in Canada, the banks also can't do refinancing for US property. I still don't want to sell it now since I need to pay a lot of tax on it. Thanks a lot in advance!
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Hello Roy,
If you don't mind, can I ask a question? For the properties you still hold in the US, did you refinance them and take out the equity? I have bought a rental property in US too in 2012, still holding it. The house has quite a lot equity in it now. However, I could not find a bank in the US to let me refinance it because I am not in the US. Same here in Canada, the banks also can't do refinancing for US property. I still don't want to sell it now since I need to pay a lot of tax on it. Thanks a lot in advance!
Thank you very much for the information. I will check it out.
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Hello Roy,
If you don't mind, can I ask a question? For the properties you still hold in the US, did you refinance them and take out the equity? I have bought a rental property in US too in 2012, still holding it. The house has quite a lot equity in it now. However, I could not find a bank in the US to let me refinance it because I am not in the US. Same here in Canada, the banks also can't do refinancing for US property. I still don't want to sell it now since I need to pay a lot of tax on it. Thanks a lot in advance!
Hi Sam: It is difficult to get a refinance. There are companies that will do it that are not banks yet they charge a lot. You might be better to just keep the cashflow going on it and invest it as it comes in.
I bought three homes in the USA - one each year of 2009, 2010 and 2011. Each was approximately $80,000. I sold one of them last year for $200,000. It was good for cash flow while I owned it yet the price did not go nearly as high as what I owned here in Kitchener, Ontario.
These homes are in Davenport, Florida - 10 minutes to Disney World. The Government in the USA keeps a percentage of any sale and any rent - the accountant will verify the exact amounts for you.
Best Wishes
Hello Roy,
If you don't mind, can I ask a question? For the properties you still hold in the US, did you refinance them and take out the equity? I have bought a rental property in US too in 2012, still holding it. The house has quite a lot equity in it now. However, I could not find a bank in the US to let me refinance it because I am not in the US. Same here in Canada, the banks also can't do refinancing for US property. I still don't want to sell it now since I need to pay a lot of tax on it. Thanks a lot in advance!
Hi Sam: It is difficult to get a refinance. There are companies that will do it that are not banks yet they charge a lot. You might be better to just keep the cashflow going on it and invest it as it comes in.