If you hold property in the U.S.A. directly from Canada, you will have to repatriate the earnings which translates into paying the withholding tax (30% in most instances) to the IRS and then paying the delta, between the amount withheld and what you would be taxed in Canada on the full earnings, to the CRA.  

.† Final value defined as = [Down Payment] + [total cashflow] + [principal paydown]*The ROR formula breaks down when you have negative cashflow since you can't pay the negative delta along the way with the equity you only realize after selling (or refinancing).

It will be interesting to see if this delta is disclosed to the crowd that funds deals.  

BTW, I used to live in Jonesboro and worked for Delta. 

Some sponsors do a great job of briefly/succinctly laying out various assumptions in the summary.To elaborate slightly on just one of them: on the rent bump, some pro-formas have a massive rent bump in year one that can sometimes seem camouflaged in the totals so you have to manually calculate what % deltas they are really projecting.

It might not seem immediate the delta will appear (compound interest). 

You need to know what if any delta is there since that could be part of your return/strategy.

That delta is ultimately what drives down your return.

The economic delta is big enough to overcome the long distance burden.

Hey Guys,I am trying to get an idea of whether evaluating the delta between interest rate and initial cap rate is a reasonable metric to evaluate when analyzing a syndication deal?