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Updated over 6 years ago on . Most recent reply

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Adam Godfrey
  • New to Real Estate
  • Kitchener, Ontario
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Investing In the Statesd

Adam Godfrey
  • New to Real Estate
  • Kitchener, Ontario
Posted

I have taken an interest in investing in the states and would like to learn from any investors that currently do so. I am aware of the 1031 exchange and the cheaper prices but is it really worth it vs investing in Canada. Looking for any pros and cons on investing in the states and information on what it would take to set up and manage a portfolio in the states.

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Chad U.
  • Investor
  • Boca Raton, FL
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Chad U.
  • Investor
  • Boca Raton, FL
Replied
Originally posted by @Adam Godfrey:

I have taken an interest in investing in the states and would like to learn from any investors that currently do so. I am aware of the 1031 exchange and the cheaper prices but is it really worth it vs investing in Canada. Looking for any pros and cons on investing in the states and information on what it would take to set up and manage a portfolio in the states.

 I've been investing in the US since 2013.  Here is brief synopsis of my experience.  

Pros:

  • cheaper prices meaning you can actually find properties that cashflow
  • 1031 exchange as you mention above
  • tons of inventory if you look in the right places
  • a lot more value-add opportunities
  • overall returns are significantly higher in many areas than can be achieved in many parts of Canada

Cons:

  • Setting up and maintaining your holding entity(ies)
  • Tax implications
  • not being local to your assets
  • US/CAD dollar swings

Hope that helps a bit.

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