Canadian looking to invest in US market

17 Replies

I am relatively new to the rental industry. Currently have one property here in Canada but I’m looking into the US because it’s hard to find a deal here in Canada that makes sense.

I'm wondering if anyone has any experience doing this and how they set it all up. Taxes, LLC or C Corp, etc.

Is it easier to just put my money into a REIT that invests on the US? What about property management? Is it worth the risk/reward investing south of the border for Canadians?

Any advice would be great. Thanks

@Adam Ellis Have you heard of mark klhor? I think thats how you spell his name? any ways hes a tax and legal expert no fluff type gives it to you straight check him on YouTube if you haven't heard of him. As for investing outside of your state i say give it a try you never know until you try that doesn't go without saying do your homework first. I live in Hawaii and if you ever want to info on our market feel free to PM me id be glad to share.

Hope this helps a little bit

@Adam Ellis

Plenty of opportunities for Canadians.. You just need to structure your entities to tailor your goals. You look find a local cross boarder CPA to help you..

@Adam Ellis - difficult to find, but you can source financing for rentals here in the U.S.  We're based in Atlanta, GA.  We can source financing, property management, GC, RE attorney's, and CPA's.

@Adam Ellis I have been looking at the US for the same reason. Take your time because the Canadian market is very different to the cash flowing markets in the States. In most markets that have strong cash flow you should assume no appreciation which is counter to many Canadian markets. It depends on your situation but often Canadians invest using a US LP for both tax and liability reasons but you need someone with knowledge of your specific situation.
@Adam Ellis I believe that investors from Canada should defiantly invest in the US market . REIT are a great PASSIVE way to invest.. but the returns are not close to the returns you can achieve by yourself.. I would start with upstate New York or any other area that is geographicly close to where you live..
Originally posted by @Adam Ellis :

I am relatively new to the rental industry. Currently have one property here in Canada but I’m looking into the US because it’s hard to find a deal here in Canada that makes sense.

I'm wondering if anyone has any experience doing this and how they set it all up. Taxes, LLC or C Corp, etc.

Is it easier to just put my money into a REIT that invests on the US? What about property management? Is it worth the risk/reward investing south of the border for Canadians?

Any advice would be great. Thanks

I've been investing in the US for over 5 years now. Take it first hand, if you're just starting out as an investor, I would just park your $ in a REIT. Unless you have a lot of time and money, it's not worth it to buy just one property.

@Adam Ellis I have a Canadian company that helps people invest in the US real estate market. We've had great success with investors as far away as Israel, and we've also set up transactions for investors in the US. We'd be happy to talk about your goals and see what makes the most sense. Many commenters have noted the need for someone familiar with taxes and structuring to ensure your investment reaches its full potential. It's very possible to get cash flow and appreciation, but as a foreign landlord you'll want local knowledge in the market.

Hi Adam,

Certainly you can purchase one or two properties in the US, but it's difficult as the filing fees, incorporation fees, tax fees etc on top of the property expenses can eat up your yearly cashflow. If you don't have the cash to purchase a larger multi family your best bet would be to purchase in some type of group funding. Look up Omar Khan, he's a former Canadian, now living and investing in Texas he may be able to help you out.

If you are looking for a cross border tax accountant that can help you out with your upcoming investments, feel free to reach out to me, I would be more than happy to assist.

Thanks

@Adam Ellis are you looking for cash flow or mainly appreciation? I have been researching most markets in Canada for the past 8 months and there are still quite a few great opportunities out there. PM me if you would like to discuss.

Research, learn, ask for help and don't listen to the naysayers.  I bought a home in Cape Coral 8 years ago and have never regretted it.  It has doubled in value (I understand 2010 was near the bottom and a rare opportunity).  The house cash flows nicely can be refinaced to allow for other investments and allows me to diversify away from stocks.  Everyone's situation is different you need to find out what is right for you.  If I can help you in anyway, please let me know.

Hi Adam,

The South is lucrative for investing as you hear plenty of great outcomes from investors who know their local market and have a great niche.Calgary feels challenging right now given the past high of the economy and house prices but smaller cities throughout Alberta seem to be less impacted and could be further explored for opportunity. Maybe something to think about....