Canadian purchasing foreclosures

I was hoping someone here would have some experience dealing with this. I am a Canadian and want to jump into the US real estate market right now. The question is: what complications can arise by the fact that I am a Canadian purchasing US real estate? Can a Canadian buy a foreclosure or REO?

Thanks.

THE HUN.

Edited: 06/26/2010 at 07:15AM

Curt Davis

Wholesaler · Memphis, Tennessee

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Icon_minipost Feb 12 '09, 07:22 PM

Yes you can buy but you will need cash. There are not any banks that will do financing for Canadian buyers. Are you looking to keep the homes for yourself?

Edited: 06/26/2010 at 07:15AM

Curt Davis, buyMemphisnow.com
E-Mail: crtdavis@gmail.com
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David F.

· Ontario

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Icon_minipost Feb 12 '09, 09:06 PM

The goal would be to rehab them and sell it in a few years. The alternative was to hold and then refinance in five or so years when the market turns so that I can pull my equity out. This leads me to two questions:

1) What if these houses were held in an LLC, formed in the US?

2) Would a Canadian bank lend me the money?

Edited: 06/26/2010 at 07:15AM

Scott Allan

Real Estate Investor · Hoboken, New Jersey

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Icon_minipost Feb 18 '09, 12:14 AM

D F: It's tought to say right now what is available for Canadian investors. I did, however speak to a lender the other day that would entertain a 50% Loan to Value on a purchase.

Also, as far as purchasing REO's I have a lot of experience in them and here is what I can recommend from my purchases. Most of the better REO's are those that are listed by realtors. This means they have already been to the auction and did not get taken. Once a bank lists with a realtor, they are somewhat desparate to sell.

I work with an asset management company out of Florida and we have been buying foreclosures from 55k to 75k on homes built within the last 5 years.

My strategy is to buy and hold and my goal is to buy 2 homes per year over the next 10 years. I have already bought 5 of them and rent them for $800 per house. I get a small, but positive cash flow on 3 of them, and the other 2 I have 15 year mortgages on them and lose the positive cash that I have on the other 3 by paying the balance on the 2. I don't care about today's cash flow, I care about the future payoff in 10 years and speculated equity I will have at that point.

Edited: 06/26/2010 at 07:18AM

Jason F

Real Estate Investor · Gainesville, FL

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Icon_minipost Feb 18 '09, 04:02 AM

Originally posted by Curt Davis

Yes you can buy but you will need cash. There are not any banks that will do financing for Canadian buyers. Are you looking to keep the homes for yourself?

This isn't 100% accurate.

I work with investors from the Caribbean that are getting financed here in the states.

Edited: 06/26/2010 at 07:18AM

Matt H

· Edmonton, Alberta

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Icon_minipost Feb 19 '09, 12:31 AM

I looked into buying a place in Vegas. There's a bit of paperwork. Get a lawyer to explain to you exactly what you need to do. And know what state you're buying in.

Edited: 06/26/2010 at 07:19AM