Invest in the US from Canada?

Question

Hi M. Turner,

I have read your guide and I am about to buy your book. I am a Canadian citizen. My Canadian corporation has an EIN number. I am interested in the US market because of its possibilities and upside. However I wanted to know if it's possible for me to embark on theUS  wholesaling game while being in Canada, has it been done before? I would have the same question for the flipping strategy. Finally, would I be better off registering a US corporation or I'm fine with my EIN number, I'm asking this for financing purposes.

I know that my questions are broad but without going into too much detail, I wanted to know if there is a possibility for me to do this while staying in Canada and avoid travelling for each deal.

Thank you very much for your time,

Jude

Hai Loc · Answer

Don't waste your time wholesaling from abroad. Wholesalers struggle doing it locally already.

Omar Khan · Answer

@Caleb Heimsoth Thanks for the shout out.

@Jude Brutus Looks like I offered the same advice as @Hai Loc. Wholesaling isn't a viable business if you're not local. Even local folks are having major issues as the majority of the easy fruit has been plucked.

Elliott Milek · Answer

Hi Jude,

I don't wholesale, therefore I would go by what Hai and Chad has indicated above. With respect to purchasing property through your Canadian corporation certainly you can do so, but any income earned by the US property would be subject to US branch profits tax in addition to the FIRPTA requirements Chad mentioned previously.

Depending on what investment goals you may have there are alternative US entities that you can purchase through that will help mitigate any US/Canadian tax that you would be subject to. In addition, I found that most lending institutions within the US would prefer to lend on a property within a US entity as well Feel free to reach out me directly and we can discuss in a bit more detail.

Elliott

Chad U. · Answer

Who are referring to, M. Turner?  In any event, as mentioned above don't waste your time, money and energy wholesaling in the US, unless you are less than 2 hour drive.  A colleague of mine does Buffalo and Detroit but he's there twice weekly.

As for flipping it can be done, but unless you've done a flip locally before then it is not advisable.  Flipping from a distance is not for the faint of heart, especially if not experienced.

As for using your Can corp, any sale you make held in the Corp may be subject to FIRPTA where the buyer/title withholds 20% of the sale price until you file tax returns the following year.

Lior Reich · Answer

@Chad Urbshott

@Jude Brutus

just to clarify - I believe FIRPTA withholding is only 15% and not as mentioned above (20%)..

Jude Brutus · Answer

Thanks again for the valuable advice

Luc Boiron · Answer

@Omar Khan oops I think I've been plucking too much of the easy fruit :)

Jude Brutus · Answer

Thanks guys!

Invest in the US from Canada?

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