Canadian Investor looking for best method to invest in the US

21 Replies

I am a Canadian investor who is looking to purchase my first turnkey property in the next couple of months.


As I am a Canadian resident, who is looking to build out my real estate portfolio.
For tax purposes, I was thinking to form a American LLC, and have the LLC own and hold my properties (as I would like to accumulate at least 10), and reinvest the cash flow from the home, into buying more properties.

I wouldn’t begin to pay myself until I have adequate cash flow. Not sure if this will be the best idea for Tax purposes, and financing purposes, as I would need financing on any properties I buy. I can provide 20% of purchase cost.

I know, as a Canadian owning the property directly, I would be subject to a 30% foreign real estate tax, or something along those lines. Therefor I hypothesize that forming an American LLC for the properties, and owning that LLC would be the most advantageous.


Please let me know if you have any insight, as I would like to begin purchasing property within the next couple months.

Thanks,
Daniel Strange-Dedier

I would suggest partnering with someone in US on a couple of properties and see how it goes. That ways it eases you into the turnkey business and also owning rental properties. I purchased with Martel Turnkey and they have properties in Cleveland and Memphis. The turnkey provider was also originally from Canada so let me know if you want me to connect you with them. He might have some better ideas for you. 

Hey @Daniel Strange-Dedier I'm a Canadian investor too from Oshawa. Forming a US LLC is a smart move. I have a lender that will lend to Canadians investing in the US. This is private money but options are definetly limited for foreign buyers.

Good Luck! 

@Daniel Strange-Dedier

A number of my partners are foreigners that invest in the US. I would definitely suggest speaking to a CPA in the US before doing anything. DM me and I can send you a list of professionals we work with from lenders, attorney and CPAs that work with foreign investors. 

Originally posted by @Aj Parikh :

I would suggest partnering with someone in US on a couple of properties and see how it goes. That ways it eases you into the turnkey business and also owning rental properties. I purchased with Martel Turnkey and they have properties in Cleveland and Memphis. The turnkey provider was also originally from Canada so let me know if you want me to connect you with them. He might have some better ideas for you. 

I've actually been in contact with Martel turnkey, Antoine mentioned being could find me financing at 7% interest with a 40% down payment if I formed an American LLC,

What provider was from Canada? 

Thanks for your reply

 

Originally posted by @Jason Shackleton :

Hey @Daniel Strange-Dedier I'm a Canadian investor too from Oshawa. Forming a US LLC is a smart move. I have a lender that will lend to Canadians investing in the US. This is private money but options are definetly limited for foreign buyers.

Good Luck! 

Woah small world, I'm also from Oshawa! What are the terms of your lender? Currently can get financing at 7% interest, and 40% down, if I formed a American LLC,



would enjoy talking more, thanks for the reply! 

 

Originally posted by @Charles Carillo :

@Daniel Strange-Dedier

A number of my partners are foreigners that invest in the US. I would definitely suggest speaking to a CPA in the US before doing anything. DM me and I can send you a list of professionals we work with from lenders, attorney and CPAs that work with foreign investors. 

Great Charles, I’ll send you a dm! Thanks for the reply! 

 

Do NOT use an LLC as a Canadian as you may be double taxed. Google to find out why. You should consult with a cross border tax specialist to determine the best method to acquire properties. I suggest reaching out to @Elliott Milek.

Originally posted by @Hai Loc :
Originally posted by @Aj Parikh:

@Daniel Strange-Dedier Antoine Martel, the owner of Martel Turnkey is originally from Toronto. That's the reason I mentioned his company and he might have some tips for you. 

 

Martel is definitely a household name for Canadians Investing in US Real Estate @Chad U.

S Martel = scam artist

 

Originally posted by @Chad U. :

Do NOT use an LLC as a Canadian as you may be double taxed. Google to find out why. You should consult with a cross border tax specialist to determine the best method to acquire properties. I suggest reaching out to @Elliott Milek.

Yes I am aware of double taxation that will occur, however it will also allow me to reduce liability. The question is which will be more beneficial, LLC double tax, or 30% foreign real estate tax!

Who is Elliott Milek? Ace investments? 



Martel is definitely a household name for Canadians Investing in US Real Estate @Chad U.

S Martel = scam artist

 

I am glad I only paid for gold package..  Platinum got ripped big time

 

Originally posted by @Hai Loc :


Martel is definitely a household name for Canadians Investing in US Real Estate @Chad U.

S Martel = scam artist

 

I am glad I only paid for gold package..  Platinum got ripped big time

 

 What Gold and platinum package are you referring to? 

Originally posted by @Daniel Strange-Dedier :
Originally posted by @Hai Loc:


Martel is definitely a household name for Canadians Investing in US Real Estate @Chad U.

S Martel = scam artist

 

I am glad I only paid for gold package..  Platinum got ripped big time

 

 What Gold and platinum package are you referring to? 

 

This is old like 9 years ago.. Those packages don't exist anymore

Originally posted by @Hai Loc :
Originally posted by @Daniel Strange-Dedier:
Originally posted by @Hai Loc:


Martel is definitely a household name for Canadians Investing in US Real Estate @Chad U.

S Martel = scam artist

 

I am glad I only paid for gold package..  Platinum got ripped big time

 

 What Gold and platinum package are you referring to? 

 

This is old like 9 years ago.. Those packages don't exist anymore

 Who scammed you exactly? And what did they do?

Originally posted by @Brandon Goldsmith :

I would suggest figuring out some specific goals for REI and then narrow down a few markets that match your criteria. Best of luck! @daniel

@Daniel Strange-Dedierundefined

 Thanks Brandon, I’m currently looking for turn key rentals that are cash flowing at a 8% cap rate and above. Currently budget for down payment and closing is around $40k. These are just hard to find in Canada at the moment