All Forum Posts by: Eric Delcol

@Mike M.

I researched this about a year ago prior to inversion.

For certain, it means short term rates pay higher than long term. That in itself is unsustainable so something will change.

Some predict that it is an indication of recession - however, per IBD, the last 8 times this has occurred 4 times resulted in recession, 2 times the market remained flat for over several years, and 2 times the market continued with a bull run.

A predictor that SOMETHING will change - yes. A crystal ball it is not.

Congrats on your decision to branch out to the US.

RBC, TD, and BMO will finance US properties using your Canadian credit.

But for AZ, TX and NV only RBC or BMO.

Prepare for a high down payment - budget for at least 25%.

Originally posted by @Malgorzata Sadowska:

@Glauber Barcelo - just messaged you with an excellent option).

@Malgorzata Sadowska

Can you also send me your contact please because we are looking for a new broker.

Looking forward to seeing everyone after a few months hiatus! 

@Steve Basra

Come to Larry's meetup - Canadians who invest in the US.  The next one is this Monday:

https://www.biggerpockets.com/forums/521/topics/644340-toronto-meetup-for-investors-in-us-real-estate-mon-dec-10-2018

To answer your questions:

"1. What would be a good state to start investing in? I live just north of Toronto, Ontario."

The one that you are most knowledgable about.

"2. What type of property would be good to start with?"

Single family houses with an HOA or condos are a good place to start as that takes your hands off some of the general maintenance.

"3. Should I register an LLC? What state would be best?"

This is about as loaded a question as 'what kind of car should I buy'. It depends on your situation, but most likely you'll want to avoid an LLC as a Canadian citizen. There are other structures that are better for most situations.

"4. Who finances Canadian Buyers?"

RBC, TD, and BMO have sister companies in the US that will use your Canadian credit to finance your US property.

Looking forward to seeing everyone after a few months hiatus!

@Ramon Garo I’ve found the best realtors for you are the ones that want your business. Find someone who deals mostly with what you’re looking to buy / sell. If your potential agent deals in million + mansions and you’re looking for a $100K 1 bedroom condo - than it’s probably not a match. But if their main source of leads is from 1-2 bed condos in your price range, you probably found a good pairing.

@Mike Palikij Its tough to find someone posting honest numbers. Personally I don’t pay attention to ANY numbers a potential seller / wholesaler is touting except for the price and even that can be debated. It’s all just marketing.

@Alex Shin

Here's two sources, one from a renter's perspective one from a landlord's perspective:

https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters/

http://www.landlordstation.com/blog/top-landlord-friendly-states/

@Ramsey Rimkeit

"We have no debts and have some money saved as well as a bit of inheritance."

That's a good start.

"What do you recommend doing to get good credit and how long will it take before I can qualify for a mortgage? Is one year unrealistic?"

I'm assuming you know the basics of paying in full, on time, etc.

Here's a few things that will help fast track to establishing credit 

-Get an auto loan / a secured loan.  Auto loans are given high regard from a creditors perspective.

-As soon as you can get two unsecured credit cards.  

For the first card, put a small monthly recurring transaction on it - like your Netflix subscription, and setup auto payments so the balance zeros out every month.  

For the second card, also use it every month and do not exceed 30% credit utilization (e.g. if you have a $10,000 limit keep your balance below $3,000).

One year may not be enough time.  It typically takes 2 years to establish good credit.

However, talk to several lenders.  Try a credit union if the big banks don't offer what you're looking for.  If you have a large enough down payment you may be able to get something right away.  Some lenders will consider credit you established abroad.  Ask and see if this is something they can take into consideration.

Depending on how soon you want to close, you may also find luck with a hard money lender who deals with people who are just establishing credit.