Canadian Citizen - U.S. Purchase Financing

[Account Closed]

Hi, as a Canadian citizen living in Canada, I want to invest in U.S. properties. I like the BRRR method but thought of one potential hiccup... to buy the property, I'll use private money, but when I refinance, will a lender lend to a U.S. LLC held by a Canadian?

I appreciate your feedback. Thank you.

[Chad U.]

Quote from @Account Closed:

Thank you, @Zorya Belanger - Yes, I've already looked into setting up U.S. LLCs as a Canadian and it is viable. The U.S. and Canada have the Canadian/U.S. Tax Treaty and foreign tax credit to avoid double taxation. I've got my financial advisors in line and are consulting them regularly.  Plus, I know of several other Canadians who successfully invest in MF properties in the U.S. and this isn't an issue. Granted, taxes may cost more to have done, but the gains are well worth it. 

An LLC is not a recognized entity in Canada, therefore you don't receive foreign tax credits if it is setup as a flowthrough for tax purposes as it's deemed a corp.