Hello All,

I am new to BiggerPockets and looking for any advice, tips for a Canadian to get started in Investing in the US. Looking to start with a small property in order to get things setup. (PP of $50K-$100K)

Here are some questions, I have been thinking of and would appreciate your feedback on. 

1. What would be a good state to start investing in? I live just north of Toronto, Ontario.

2. What type of property would be good to start with?

3. Should I register an LLC? What state would be best?

4. Who finances Canadian Buyers?

Thanks in advance for your help!

1. for that price range you'll most likely be looking in the midwest states near Toronto

2. Again for the budget to get a quality property you are most likely looking at an SFR

3. It depends on the state and property

4. Lots of lenders do you just need to ask and if they don't they may have a recommendation for someone who does

1.  MI, NY, OH, IN, PA

2. Turnkey rental

3. NO - potential double tax!  Get advice from X-border accountant first.

4. There are a few who loan to Canadians (foreign nationals) but not on loans this small

There are a couple of REI groups who meet here once a month. Make the effort to attend one & network. Tom Larsen has a good one but I think they're done for the year.

Hi Steve, I've gone through these steps. PM me would love to connect. I'm also from Mount Albert, Ontario. And I have a property in upstate NY. Also, looking to go through more in the area.

Originally posted by @Aaron K. :

1. for that price range you'll most likely be looking in the midwest states near Toronto

2. Again for the budget to get a quality property you are most likely looking at an SFR

3. It depends on the state and property

4. Lots of lenders do you just need to ask and if they don't they may have a recommendation for someone who does

 Thanks for the feedback Aaron, much appreciated!

Originally posted by @Chad Urbshott :

1.  MI, NY, OH, IN, PA

2. Turnkey rental

3. NO - potential double tax!  Get advice from X-border accountant first.

4. There are a few who loan to Canadians (foreign nationals) but not on loans this small

 Thanks Chad... I will look into finding a x-border accountant. 

Originally posted by @Pat L. :

There are a couple of REI groups who meet here once a month. Make the effort to attend one & network. Tom Larsen has a good one but I think they're done for the year.

Thanks Pat, I will lookup Tom Larsen and plan to attend.

Originally posted by @Michael Ramzy :

Hi Steve, I've gone through these steps. PM me would love to connect. I'm also from Mount Albert, Ontario. And I have a property in upstate NY. Also, looking to go through more in the area.

 Awesome Michael... I will reach out to you. Maybe we can meetup sometime? Thanks!

Originally posted by @Michael Ramzy :

Hi Steve, I've gone through these steps. PM me would love to connect. I'm also from Mount Albert, Ontario. And I have a property in upstate NY. Also, looking to go through more in the area.

 Hi Michael,

I was wondering how you found your property, and the professionals helping you with the transaction. I'm in Brampton, Ontario and looking to invest in the US but I don't know where to start looking.

@Steve Basra we use a great Tax guy here that also handles CDN REI tax related issues.

We have used the same attorney here locally (20yrs) that has a lot of CDN clients. Sp feel free to network with us.

Originally posted by @Melina Gorosito :

Originally posted by @Michael Ramzy:

Hi Steve, I've gone through these steps. PM me would love to connect. I'm also from Mount Albert, Ontario. And I have a property in upstate NY. Also, looking to go through more in the area.

 Hi Michael,

I was wondering how you found your property, and the professionals helping you with the transaction. I'm in Brampton, Ontario and looking to invest in the US but I don't know where to start looking.

Hi Melina, I knew the area for a while now since I have family there too. But I started networking there and connected with others. Even the team from the sellers agent. Found a good attorney and he actually did a good job. I have it now for almost 2 years and looking for more in upstate area. I think we should connect here or start a networking group since we have a few common grounds and investing across the boarders. Feel free to PM me. 

Originally posted by @Pat L. :

@Steve Basra we use a great Tax guy here that also handles CDN REI tax related issues.

We have used the same attorney here locally (20yrs) that has a lot of CDN clients. Sp feel free to network with us.

 Hi Pat, I remember we connected a while back before I got into my first property in the states and you were very helpful with information. Would love to connect back and if any networking group would be great to join in. Thanks again Pat :)

Hey @Steve Basra ,

We're now over 300 doors in Indianapolis, between us and our OOS and OOC investors.  Interestingly, my sis lives in Thornhill, and I drive up there a few times a year.  It's not that bad of a drive... I can do it in 8.25 hours.  Certainly within striking distance.  PM me if you'd like more info.

Good luck!

Originally posted by @Jeff Schechter :

Hey @Steve Basra,

We're now over 300 doors in Indianapolis, between us and our OOS and OOC investors.  Interestingly, my sis lives in Thornhill, and I drive up there a few times a year.  It's not that bad of a drive... I can do it in 8.25 hours.  Certainly within striking distance.  PM me if you'd like more info.

Good luck!

 Hi Jeff,

Thanks for reply. I will reach out to you.

@Steve Basra the best advice I can give you is to buy in the highest asset class that you can afford if you want to minimize the hassle and draw a better quality of tenant. As an out of country investor that needs to be hands off, I would recommend staying with higher C class properties and above. In terms of affordability, the Midwest is best. I personally like Indianapolis and Kansas City where you can find a lot of properties that meet your price criteria. Again, I would buy at the higher end of your range. There are a lot of asset based lenders that will finance Canadian buyers. Be prepared to have to put more down and have a higher interest rate though. I'd be happy to help you if you're interested in either Indianapolis or Kansas City.

Thanks for the feedback Mike. I will message you. Thanks.

@Steve Basra couldn't agree more with Mike. Also, make sure you are clear on the types of renovations and process you are going through during that process (and after!). Do they have a warranty? Etc ... Happy to help however I can.

Originally posted by @Nathan Brooks :

@Steve Basra couldn't agree more with Mike. Also, make sure you are clear on the types of renovations and process you are going through during that process (and after!). Do they have a warranty? Etc ... Happy to help however I can.

 Thanks Nathan.

Welcome sir @Steve Basra !

@Steve Basra

Come to Larry's meetup - Canadians who invest in the US.  The next one is this Monday:

https://www.biggerpockets.com/forums/521/topics/644340-toronto-meetup-for-investors-in-us-real-estate-mon-dec-10-2018

To answer your questions:

"1. What would be a good state to start investing in? I live just north of Toronto, Ontario."

The one that you are most knowledgable about.

"2. What type of property would be good to start with?"

Single family houses with an HOA or condos are a good place to start as that takes your hands off some of the general maintenance.

"3. Should I register an LLC? What state would be best?"

This is about as loaded a question as 'what kind of car should I buy'. It depends on your situation, but most likely you'll want to avoid an LLC as a Canadian citizen. There are other structures that are better for most situations.

"4. Who finances Canadian Buyers?"

RBC, TD, and BMO have sister companies in the US that will use your Canadian credit to finance your US property.

@Steve Basra Steve have you purchased anything in the US? What was your experience like?

Originally posted by @Jay Styles :

@Steve Basra Steve have you purchased anything in the US? What was your experience like?

 If your in Niagara Region Buffalo is right around the corner. Better cash flow than Ontario..

Originally posted by @Hai Loc :

Originally posted by @Jay Styles:

@Steve Basra Steve have you purchased anything in the US? What was your experience like?

 If your in Niagara Region Buffalo is right around the corner. Better cash flow than Ontario..

Hai,

Buffalo doesn't appeal to me. If you're going to invest in the US why not look at better markets than Buffalo. I'm looking at landlord friendly states and higher returns. Plus I don't want to be able to drive to the properties because if I can I probably will. 

Jay

Originally posted by @Jay Styles :

Originally posted by @Hai Loc:

Originally posted by @Jay Styles:

@Steve Basra Steve have you purchased anything in the US? What was your experience like?

 If your in Niagara Region Buffalo is right around the corner. Better cash flow than Ontario..

Hai,

Buffalo doesn't appeal to me. If you're going to invest in the US why not look at better markets than Buffalo. I'm looking at landlord friendly states and higher returns. Plus I don't want to be able to drive to the properties because if I can I probably will. 

Jay

I have the same thought process as you. I am in Ohio which is landlord friendly. But I still take frequent visits