All Forum Posts by: Brandon Foster

I see it here for $79. He talked about doing Gator 2.0 where you just refer someone to their website/team/lender and you split the profits 50/50. So you don't need to use your own money. This makes a lot of sense to just do it on the side as a referral and not risk any of your own capital it sounds like.

1 Vote

Quote from @Doug Smith:

We partner with non-US citizens all the time and there are certainly advantages to it, but I did want to mention something I saw in your post. What type of loan is at 12% with 3%-5% in points? If that is a for a bridge loan, fix-n-flip, or ground-up investor construction, that's about where those loans are at right now. The fees might be a bit high, but he rate is pretty much dead on for that type of loan. Keep in mind that as of this second, the Wall Street Journal Prime Rate is 8.25%. Banks are borrowing from the Federal Home Loan Bank at 5.00% to 5.25% and the average 30-year fixed rate in the US for an owner-occupied primary residence single-family home is 6.9% according to Mortgage News Daily. Non-owner occupied investment longer-term rentals are going to fetch a risk premium of 1% to 1.5% above that...or around 8% - 8.25%. Couple with it the construction risk factor and that rate is about in line with where a flip would be. I know it's not what you asked, but I thought I would ask the clarifying question "what type of loan are you speaking about?"

I'm just speaking of a regular purchase loan or cash out refi. I've spoken to probably 12 different lenders and this is what I have seen. HSBC wanted us to sit 75K USD or 2 years expenses whichever was greater in their bank then they would loan 60%LTV on 1-4 units. Most have a minimum loan amount of 100K as well.

We currently have a mixed use building 2 commercial with 4 residential units and a duplex on the US side in NY State. We are looking to expand into FL and OH. With a focus on multifamily properties.

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Quote from @Andrew Postell:

@Brandon Foster just make sure that the financing involved is ok with you partnering. Depending on the loan type, many will have issues with this type of a structure.

True, we could have a JV agreement on the side maybe

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Hey, does it make sense to partner with a US person in order to get access to better and cheaper lending products in the US from what I seen the interest rates currently 8-12% and 3-5% loan fee is crazy and a huge disadvantage for Canadians. Would it make sense to partner with a US and just have them as a qualifying partner on the deal? Either pay them a set fee or % of equity or cashflow.

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Quote from @Jonathan Leblond:

Hi Omar, it is indeed very complicated and it took me a long time to figure it out. I spoke with many CPA until I understood enough to be able to challenge them and ask good questions. Then the right path for my needs was clear and I was able to set the proper entities. It is indeed important to set it right for tax, estate and liability. For a relatively reasonable cost https://madanca.com/ can answer all your questions and give you a clear path. Also https://www.uhyvictor.com/ and some other in Montreal I could provide if those are not sufficient.

Do you also have any referrals for lenders?

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Hey, how did everyone make out? I'm looking to find some US lenders as well if anyone has any recommendations let me know :)

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Hey, I am wondering if anyone is doing cross border investing as a Canadian investing in US real estate and instead of making a separate structure for each property especially the lower cost ones as the cost to set up would make the deals pointless. Does anyone have a joint venture agreement they are using to partner with other Canadians and how does this work for their taxes?

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Awesome let me know how it goes and if you need help analyzing properties.

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Good day!

I am new to the forums. I am currently house hacking a duplex in Brockville Ontario. Anyone else from the area?

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All Forum Posts by: Brandon Foster

Brandon Foster has started 3 posts and replied 9 times.

Post: Pace Morby Gator Method Course Review

Post: Canadian investing in US does it make sense to partner with a US person for mortgages

Post: Canadian investing in US does it make sense to partner with a US person for mortgages

Post: Canadian investing in US does it make sense to partner with a US person for mortgages

Post: cross-border tax structure - CAN-USA

Post: US investment mortgage for Canadians

Post: Canadian investing in US with JV agreements

Post: Brockville & Prescott Ontario Canada

Post: Brockville & Prescott Ontario Canada