All Forum Posts by: Account Closed

From Calgary here, so don't know a ton about the Edmonton market, but it does seem like those rents are low. I'm not shocked at the asking price, but its a big pill to swallow. What COCR/Cap rate would you be looking at for this? Tough to get a high rate.

@Nathan Wiebe

What has been your progress so far? I’ve come to terms with the fact that I’ll be double taxed. I see the US-Canada currency exchange as a way to counteract that. Plus dividend taxes are 15% (right?). I just have the view of yes, I’ll be taxed, but wouldn’t it be better to have the net income than no income at all? Besides, I would not withdraw anything for a long time. 

I guess it’s just a matter of figuring out what structure makes the most sense. Based on what the guys above said we would need at least a down payment to get the first one started, then build credibility to make it bigger. 

I was looking at a 15 unit section that was listed for $500, and I thought you could only get one house for that price up here...

Oh question, what do people generally think of Section 8? That 15 unit is section 8 and I was researching it. 

@Chad U.

Could you explain the repatriation rule? 

I need to learn what requirements the bank would have to refi something like that. Technically the property would be under my title, but it's mostly financed by another lender. How does the bank take HML's into consideration when looking at a refi? Do they even look at it if I own it?

@Chad U. would these be for flips that you cash out for to pay the HML loan back?

I don't know what HML means @Chad U.

@Chad U.

I do genuinely appreciate your advice. Did you move from Canada to Florida and then start REI?

Let’s say I get 35% down, hard money loans for the 65%, what has your experience been with refi’s with an asset you own, then going to the banks with the financials? Hard money isn’t for forever, and I would want to make sure I could get a refi once I needed it. 

@Chad U.

So the only possible way to get started is to have a minimum 35% down... 

Just to clarify, you’re saying to get a hard money loan I would need to prove to them that I have US investing experience. 

How long do I have to be in the house to ‘occupy’ it? I’m not moving to the US, and if I pass on while having the property in my name that could leave me in some big trouble later with Estate taxes. 

I would get legal advice before I did anything. I just know that LLC's aren't recognized by the CRA, so that's useless, and I don't want the risk of putting it in my personal name

@Greg Downey

I have great personal credit, would that help even though I wouldn’t be able to put a lot of money up? 

I don’t have problems going with a partner, curious how that would work using a Corp?

I would definitely find the deals and put them under contract subject to financing, it’s just finding the financing that I’m trying to figure out. 

What has been your experience as a lender for similar scenarios that are approved?

@Greg Downey

What would you recommend for someone that can’t pull together that 20% down? 

I’ve been mulling over using hard money lenders for a portion, and potentially write the seller a lease option/note/as-is with option to purchase layer... 

I would need close to 100% financing to get started, and I’m not sure what the rules are around private investors, do you know where I could look to find more information on the US rules?

@Anthony Wienke because LLC's aren't recognized by the CRA and we have even more that we would be liable for as a Canadian, vs using a corporation. There's big rules about estate taxes that are important to avoid.

Hey Everyone,

I am a Calgary resident, Canadian citizen looking for primary resources on the limitations of US real estate investing as a Canadian. My plan is to set up a C Corporation in the state I'm most interested in investing in (looks like Montana at this point). I am looking for credible sources on the following topics:

1) The cost of setting up a C Corp in Montana

2) US rules about foreign nationals owning a US C Corp to do business (my research can only go so far when looking at what C Corporations can do, but I'm sure there are limitations because the owner and president would be a Canadian citizen)

3) How C Corporations can get a mortgage, rules around Private Money investing (in Canada they are pretty strict), rules around Hard Money Investing.

4) Double taxation with Corporations.

5) Anything else you think I should know about this particular situation, or even if you live in Montana, give me a shout!

I'm looking to a lot of research upfront and make sure I have a relatively solid plan of attack before I hire a Cross-Border specialist for $100 an hour. I am starting to analyze deals, but getting financing as a Corp will be difficult. What bank will take me with no assets?