Originally posted by @Ali Boone:
Originally posted by @Nathan Hillier:
We solved the double taxation through our long corporate structure we had to set up. Between communication with our Canadian lawyers, and our american lawyers, it has a lengthy process that involved hiring, multiple lawyers which costed us working capital we wish we could have used to buy more properties. It was well worth it in the long run through.
I say virtually because we do all our investing through our computer (For me, my phone) while living full time in Canada. As we continue to do more by helping our network of OOS investors buy and sell properties, we are more or less doing this long distance, as it involves being more hands on and coordinating through phone calls and videos. But the investing side of our business, is done virtually through emails.
I completely understand why people would have control issues, my family is the same way. After losing a lot of money to bad investments we had no control over, nor could we see, we promised we would never invest without having full control over the deal. Our business today, we have more or less full control by establishing partnerships with third party individuals that check up on our investments and companies we hire, as well as having multiple teams or "layers" in each market. This is definitely going against what we wanted to do originally, but living in Canada, we had no other option if we wanted to pursue US real estate. At the end of the day, we are happy with the teams that oversee our investments as they all do their part, and help us achieve our goal. By working with quality team members, it rids any emotional problems we had by not being able to physically see or feel our properties we own, as we have full control and trust in the individuals working for us.
If you're working with buyers, do you have access to a more efficient structuring system now to avoid the lengthy lawyers and all of that? All of that is definitely not needed to get set up correctly.
If you're a company working with buyers buying in the U.S., what kind of business model are you doing that with? Just curious because I used to work with international buyers buying turnkeys in the U.S., which definitely helped with that boots-on-the-ground part. Not sure if you're working with turnkey folks or somehow sourcing the properties yourselves. You don't have to answer, just curious what's working for you. I work with a lot of long-distance investors, which basically comes down to the same challenges as international investing.
We are sharing our lawyers and accountants with Canadian investors to get setup quickly and efficiently. The most recent investor we are working with got properly set up within 3 weeks. The hardest part was finding the right people to structure ourselves, once we found them, it's a fairly simple process.
Our business model: Our company pursues out of state investments by working with wholesalers in each market, and establishes quality teams for our company to successfully invest out of state. It was for our own security that we have multiple layers in place to protect ourselves when issues arise, but due to a growing list of investors working along side us, we have expanded our layers of protection. Due to the amount of deals we are finding, we are unable to pursue them all, so by connecting other like minded investors to these deals, we straighten relationships with our sellers and find better deals. We have also realized that by helping other investors, we help ourselves. Helping ourselves open up new markets, find better deals, and gain better control over the teams we work with, since they know they are dealing with a network, and not a single Canadian Investor, while helping others invest out of state and finding them better deals. We make sure investors who want to work with us have the ability to get in contact with each team member we have in our markets, to ensure they are comfortable with the people overseeing their investment. Our company sells our personal inventory of turnkey rentals, and helps connect investors to wholesalers that we have partnerships formed in each market, while sharing our teams to successfully follow through with the investment.
All in all we are just truly blessed to be able to have the opportunity to pursue real estate in the US, compared to our markets in Canada. Due to hard times our family was in from the most recent downturn in Canada, we needed a way to continue to provide for our family. So when the opportunity came to us to buy US properties, we took it, and are growing it in a way that will secure our ability to pursue more deals in the future, while opening up better markets - This is hard to do as a singular Canadian Investor, which is why we chose to help others, because they can help us achieve this goal.
