Buying property in the US as a Canadian

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Buying property in the US as a Canadian

Patrick Hache
Investor · New Brunswick, Canada · Member since 2023 · 5 posts · 2 votes

Hello everyone! I’m wondering if anyone has been threw the process of buying a rental property in the US as a Canadian. Is the process the same as buying property in Canada? Is there anything I should know before start shopping? T.I.A!

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Linda LabbePro Member
Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
2y

We are Canadian from Ontario and  have been investing in the US for the last 7 years. More then willing to share what we have learnt with others.

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  • Alex Hunt
    Lender · Member since 2022 · 441 posts · 134 votes
    2y

    Hi Patrick, 
    I have worked with many foreign national investors. An ITIN is often required for tax purposes when earning rental income in the US as a non-resident.

    Please feel free to PM me with any questions. 

    Thanks*


    0Reply
  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
    2y

    We are Canadian from Ontario and  have been investing in the US for the last 7 years. More then willing to share what we have learnt with others.

    1Reply
  • Zorya Belanger
    Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
    2y

    Definitely NOT the same. Overall it’s harder, but probably worth the effort to get better returns. Are you thinking of buying residential or multifamily? My Canadian partners and I bought a Class B 144 unit in Houston, Texas for 77k/door and we’re actively looking for another similar deal. Either way I recommend listening to all the episodes of Glen Sutherland’s podcast “A Canadian investing in the US”

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Patrick Hache:

    Hello everyone! I’m wondering if anyone has been threw the process of buying a rental property in the US as a Canadian. Is the process the same as buying property in Canada? Is there anything I should know before start shopping? T.I.A!


     Hey Patrick, 

    Do you have a US credit score or do you have credit in Canada? Also, have you created an LLC in the US?

    There are Foreign National DSCR Programs that allow Canadians to buy in the US. Here is a list of minimum Requirements:

    1. US credit score (At least 2 scores must show) or Foreign Credit (At least 24 months of history with 2 tradelines). Canadian credit reports are also acceptable 

    2. U.S. based LLC. Must have Articles of Organization, EIN Letter, Operating Agreement.

    3. Must show you have a primary in Canada. 

    4. Minimum of 25% down is required 

    5. Property must Debt Service 1.00

    6. You may qualify based on Market Rents or Lease Agreement. There is a 25% variance to use the higher of the two. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Patrick Hache
    OP
    Investor · New Brunswick, Canada · Member since 2023 · 5 posts · 2 votes
    2y
    Quote from @Zorya Belanger:

    Definitely NOT the same. Overall it’s harder, but probably worth the effort to get better returns. Are you thinking of buying residential or multifamily? My Canadian partners and I bought a Class B 144 unit in Houston, Texas for 77k/door and we’re actively looking for another similar deal. Either way I recommend listening to all the episodes of Glen Sutherland’s podcast “A Canadian investing in the US”

    Hey Zorya! At the moment, I'm open to either residential or multifamily. If the numbers work, the numbers work. At 77k/door, what are they renting for? I will definitely take a look at Glen Sutherland's podcast. Thanks for the input!  
    0Reply
  • Patrick Hache
    OP
    Investor · New Brunswick, Canada · Member since 2023 · 5 posts · 2 votes
    2y
    Quote from @Erik Estrada:
    Quote from @Patrick Hache:

    Hello everyone! I’m wondering if anyone has been threw the process of buying a rental property in the US as a Canadian. Is the process the same as buying property in Canada? Is there anything I should know before start shopping? T.I.A!


     Hey Patrick, 

    Do you have a US credit score or do you have credit in Canada? Also, have you created an LLC in the US?

    There are Foreign National DSCR Programs that allow Canadians to buy in the US. Here is a list of minimum Requirements:

    1. US credit score (At least 2 scores must show) or Foreign Credit (At least 24 months of history with 2 tradelines). Canadian credit reports are also acceptable 

    2. U.S. based LLC. Must have Articles of Organization, EIN Letter, Operating Agreement.

    3. Must show you have a primary in Canada. 

    4. Minimum of 25% down is required 

    5. Property must Debt Service 1.00

    6. You may qualify based on Market Rents or Lease Agreement. There is a 25% variance to use the higher of the two. 

    Hello Erik, I really appreciate the response. Currently, all my finances are done in Canada (Canadian credit score, no LLC, Canadian bank acc, etc.). 4th point, would that be threw conventional financing? For a foreign investor, what kind of financing would you recommend? Thanks again.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Patrick Hache:
    Quote from @Erik Estrada:
    Quote from @Patrick Hache:

    Hello everyone! I’m wondering if anyone has been threw the process of buying a rental property in the US as a Canadian. Is the process the same as buying property in Canada? Is there anything I should know before start shopping? T.I.A!


     Hey Patrick, 

    Do you have a US credit score or do you have credit in Canada? Also, have you created an LLC in the US?

    There are Foreign National DSCR Programs that allow Canadians to buy in the US. Here is a list of minimum Requirements:

    1. US credit score (At least 2 scores must show) or Foreign Credit (At least 24 months of history with 2 tradelines). Canadian credit reports are also acceptable 

    2. U.S. based LLC. Must have Articles of Organization, EIN Letter, Operating Agreement.

    3. Must show you have a primary in Canada. 

    4. Minimum of 25% down is required 

    5. Property must Debt Service 1.00

    6. You may qualify based on Market Rents or Lease Agreement. There is a 25% variance to use the higher of the two. 

    Hello Erik, I really appreciate the response. Currently, all my finances are done in Canada (Canadian credit score, no LLC, Canadian bank acc, etc.). 4th point, would that be threw conventional financing? For a foreign investor, what kind of financing would you recommend? Thanks again.


     Hey Patrick, 

    This would be a DSCR loan. Conventional financing requires that you have a SSN, Permanent Residency in the US, and a US credit score.

    DSCR would be considered a Non-qualified mortgage. So there is more leniency when it comes to qualifying.

    Your Canadian Score, Canadian Bank account, would be sufficient to qualify for the loan. You would need to create a US LLC however.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Zorya Belanger
    Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
    2y
    Quote from @Patrick Hache:
    Quote from @Zorya Belanger:

    Definitely NOT the same. Overall it’s harder, but probably worth the effort to get better returns. Are you thinking of buying residential or multifamily? My Canadian partners and I bought a Class B 144 unit in Houston, Texas for 77k/door and we’re actively looking for another similar deal. Either way I recommend listening to all the episodes of Glen Sutherland’s podcast “A Canadian investing in the US”

    Hey Zorya! At the moment, I'm open to either residential or multifamily. If the numbers work, the numbers work. At 77k/door, what are they renting for? I will definitely take a look at Glen Sutherland's podcast. Thanks for the input!  

     Average rent is about $1000/mo

    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 665 votes
    2y

    You can actually use more than just a DSCR loan here if you cannot validate the minimum credit tradeline overlay lenders have. There are FTHB bridge products where are you need is a 640 score and 9 months of reserves. The reason I recommend this is because as a short-term solution incase you cannot go full DSCR right out of the gate.

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    0Reply
  • Tim Hartwig
    Member since 2024 · 12 posts · 0 votes
    1y
    Quote from @Linda Labbe:

    We are Canadian from Ontario and  have been investing in the US for the last 7 years. More then willing to share what we have learnt with others.


     Hi Linda. I would love to speak further on investing in the US as a Canadian.  Please let me know if you have interest.  Thank you!

    0Reply
  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
    1y

    Would love to chat call me any time

    0Reply
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