The most common approach to purchasing US real estate as a Canadian is by utilizing an US LLP or LLLP, with the investor as a 99% Limited Partner, and having another entity (such as Can Corp or US LLC) as the General Partner at 1% to limit liability exposure.

Private lenders allow much more exposure to a same borrower than traditional banks.

There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

I have spent hours talking to tenants who are sick with mold exposure or who’s houses have wood rot so bad they should be condemned.

You can also get some exposure to insurance bookings and corporate bookings.

It also seems to be more common in some areas of the country more than others (due to much older construction in the region, higher exposure to harsher climates, older electrical and plumbing running through the home, etc.).

Keep in mind hotels have a lot more moving parts and greater liability exposure yet we as a company still did not implement what you shared.Where we as operators differed was in our the understanding of the actual risks associated with owning real estate and how to mitigate or protect against them.

First, ensuring that each property or group of properties is held in a separate LLC can limit exposure, confining potential liability to the specific entity involved.

@Miranda LeMaster If your agent can not offer you a good commercial option, then you are working with a personal lines agent and you may want to think about making a change sooner than later.Ideally you want to have 2 separate insurance programs.  1 for your personal and 1 for you business/commercial exposures.  

Understanding their funding sources and capital structure provides insights into their financial strategies and risk exposure.