All Forum Posts by: Larry Smet

Logan Square is really hot right now - don't forget to ask  your agent to find out what the 2-flat sold for after it closes since it could be significantly more than the list.  That way you'll start to build up local knowledge of prices in the area.

Best of luck

Larry

Hi Eric - Canadians typically can't get 25 year financing on residential investments so that's definitely NOT an advantage. Financing is very difficult to get for non-commercial deals.... And can be challenging even for commercial deals. That's probably why it wasn't mentioned. ;) 

Hi @Saira Khan, I've been investing in the Chicago market from Toronto for the last several years so drop me a line if you want and we can discuss what it's like investing there from the GTA.

Btw, I second everything that @Nick Patterson mentions above - he's right on.

Hey Jay - you forgot us Canadians (the #1 foreign buyer of US real estate)! 

I'm trying to do my fair share.  :)

You shouldn't get double-taxed as long as you're not using an LLC. I would recommend using a US entity but another type (e.g., a corporation or LLLP) but it depends on your goals - always need to check with attorney/cross-border accountant.

You forgot a few benefits of investing in the US:

- significantly lower acquisition and rehab prices than in major Canadian markets (remember, I live in Toronto - I'm not sure how the Winnipeg market is)

- far superior access to information - in the US everything is an open-book which is really helpful

Hi @Farhad Shir - if you're a Canadian investing in the US (or an American, for that matter), I wouldn't recommend that you invest under your own name - my understanding is it would open up your personal assets to any liability related to your investment.  You need the advice of a cross-border accountant - a professional that understands US and Canadian accounting and how they interact.  Please PM me and I can let you know who I use (one of the two partners works out of Calgary, actually).  There are other threads on cross-border accounting on BP that also give some recommendations of accountants that others use for their cross-border investing.

I would strongly recommend consulting an business attorney knowledgeable in cross-border entity creation as well that can help guide you regarding the pros and cons of operating as an entity.

Business trips are absolutely tax deductible as long as the expenses are reasonable (see Amanda Han's recent book - it's a good primer on real estate taxes).

Hey Michael - you can add me to the list too. I've been flipping in Chicago for the last several years. Let me know if you'd like to chat 

Another vote for move in fees.  It keeps it simple, reduces the legal liability of making a mistake with a SD and yields a nice initial bump to cash flow (especially nice if the property didn't have tenants due to rehab, etc.). 

Thanks to @john Casmon for bumping this thread and for @drew Millard for sharing his 2000 door analytics. (sorry @ function not working on my phone) 

Good thread @Cal C.

Another vote for training, like @Edgar U. and @Carrie Anderson talked about. A helpful hint here is to record a video of your training on your computer so you can not only show your VA what you're referencing or wanting them to do but you start to build a library of training videos for future VAs. VAs love this as well because if they forget a detail they can go back to the video to quickly review instead of asking you again (or worse, guessing and getting it wrong).

I've used my VA to analyze deals, update my website and help me keeping track of accounting and balancing/verifying my bank statement against expenses each month (or at the end of the year). IMO, VAs are great for anything repetitive that you've been doing - especially if it seems like a waste of your time/ability or it's something you hate! :) Don't forget to check their work however - it's easy for mistakes to creep in.

I got my VA through Odesk (now called Upwork) and pay her about $4.50 per hour. She's based in the Phillipines. I don't use her full time and the number of hours varies each week.

Don't forget to come back to this thread and give everyone an update once you start using a VA (or decide against it).

Hi @Christian Bateman

Investing out of state (or like me - out of country) can certainly be done but you need to get very familiar with the market.  Chicago is a notoriously block-by-block city - everything you think you are buying based on the "area" can be undermined by choosing a bad block.  You may be able to get a general idea of an area from on-line resources but nothing replaces good old "boots on the ground".  It's essential that you build a team in your chosen market.  I would recommend getting multiple opinions on a specific location (broker, property managers, inspectors, police, local businesses, etc., etc.).  Also, make sure you have some back-up team members if any flake out.

I'd recommend going to the market and really learning it - time spent with your team in the market is invaluable.

By the way, you will want to start narrowing down your focus to a few neighborhoods - there are over 70 neighborhoods in Chicago alone and many more markets if you consider the different areas and blocks found within each neighborhood (not to mention the burbs).

Good luck!