All Forum Posts by: Danny Gonzalez

Hey Lindsay,

That's awesome that you care for your son and want to ask for advice to help him. As someone who went to college and then got into real estate shortly thereafter, I think an emphasis on communication and accounting would be what I would recommend to focus on.

I wouldn't do a general business tract as it's too broad, too theoretical to be helpful in the long run. Real estate is all communication. Whether you're on the realty side or on the PM side or even in the development side, if you can't communicate well, he won't be able to fulfill his potential. Accounting is also important as he will need to have the knowledge on how to read P&L's and balance accounts. I'd also look into his specific college/university and see if they have a business major that concentrates on real estate.

I wish you both success!

0 Votes

Hey Natasha,

That's awesome that you want to invest in the states! I'm not a CPA but I have worked with a lot of out of the country investors over the years. Here's an overview as well as my understanding of the tax implications.

I'll start with the US Tax implications:

As a foreign investor, you’ll be subject to U.S. federal income tax on the income generated by your U.S. real estate investments. This includes rental income, which is typically taxed at a flat rate of 30% unless you elect to treat the income as "effectively connected" to a U.S. trade or business, which allows for graduated tax rates and deductions. You'll be able to write off the expenses and interest, but there is a tax on the profit from the real estate.

State Taxes: Some states also impose state income taxes on rental income and capital gains from the sale of property. The rate varies depending on the state in which the property is located so I can't give you specifics without having more information.

Capital Gains Tax: When you sell a U.S. property, you may be subject to U.S. capital gains tax on any profit. The rate typically ranges from 15% to 20% for long-term capital gains, with an additional 3.8% Net Investment Income Tax (NIIT) potentially applying.

OK, lets chat about the Canadian side. To my understanding:

Worldwide Income: As a Canadian resident, you are required to report and pay taxes on your worldwide income, including income earned from U.S. real estate. This means rental income, dividends, and capital gains from U.S. investments must be reported on your Canadian tax return.

Foreign Tax Credit: The good news is that Canada has a tax treaty with the U.S. to prevent double taxation. You can generally claim a foreign tax credit on your Canadian tax return for the U.S. taxes paid, reducing your Canadian tax liability by the amount of tax paid in the U.S.

Capital Gains: Canada taxes capital gains at a rate of 50% of the gain. You will need to report this on your Canadian tax return, but you can offset it with the foreign tax credit for any U.S. taxes paid.

A few other points to mention, a lot of the specifics here also depend on your legal structure e.g. LLC, sole member, direct investor, etc. There are a lot of attorneys/tax professionals that are familiar with Canadians investing in the states, so reach out to them and they'll be able to walk you through the process. If I can help with anything else, don't hesitate to reach out.

TL;DR: You will likely need to pay taxes in both the U.S. and Canada, but the Canada-U.S. tax treaty provides mechanisms to avoid double taxation.

Much success!

DG

1 Vote

Calgary, Alberta

Hey Steve,

Congrats on starting this journey of real estate investing! Its great to hear you're going the direct to seller route, its by far the method with the highest margins. I've had the best success cold calling, but I know direct mailers work well too if you're sending a lot. Be sure you're responding to them right away when they reach out to you, as well as have a great follow up sequence in place. It's rare that sellers want to sell today, but if you follow up with them, when they are ready, you'll be the person they work with. The fortune is in the follow up!

I'm not in the Jacksonville market but let me know if there is anything I can do to help you out along the way. Much success!

2 Votes

Jacksonville, Florida

How long did this project take you? That's awesome that you were able to get it through the finish line and make a good profit. I've never walked a property with a city inspector prior to closing, but I see the logic there... might have to do that on my next flip to expedite the permits down the road.

Good stuff man!

0 Votes

Hey BiggerPockets Community!

I’m excited to be here and connect with like-minded investors who are passionate about building wealth through real estate. My focus is simple: helping out-of-state investors like you unlock the full potential of the Birmingham market. Whether you're diving into BRRRRs, flips, buy-and-holds, or turnkey properties, my team and I are here to ensure your success.

What sets us apart? We provide everything you need to build generational wealth under one roof—property management, construction, experienced agents, and connections to top lenders. This means you can focus on growing your portfolio with confidence, knowing that every aspect of your investment is being handled by experts.

As for my experience, I've been in the industry for over 10 years. We manage 300+ units, I've flipped over 75+ houses in the past 3 years, and I currently own 28 long term rentals. Ultimately though, this is not about me, I'm here to help you achieve your goals. If you're looking to tap into Birmingham’s lucrative real estate opportunities, let’s connect. I'm more than happy to share insights, answer questions, or discuss strategies tailored to your investment needs.

Looking forward to building wealth together!

Thanks,

0 Votes

Birmingham, Alabama

All Forum Posts by: Danny Gonzalez

Danny Gonzalez has started 2 posts and replied 75 times.

Post: Major for college?

Post: Learning about investing! Canadian trying to invest in US real estate

Post: New investors in Jacksonville area

Post: Fix & Flip

Post: Unlock Birmingham's Real Estate Potential: Your One-Stop Solution for Out-of-State In