Want to connect with Canadians investing in the US

18 Replies

Hi folks, I'm pretty much learning the ropes in investing in the US and would love to connect with my fellow Canadians already doing just that. I need to know how I can structure my business to minimize my taxes and liabilities and want to know where you are investing. Could you point out some resources that I could read and look at to get my journey started too? Looking forward to making new connections.

Dal

@Daljit Ajimal

Hi Dal

From my research, it depends on what kind of real estate investing you want to do and how much you want to invest.  I bought a book about Canadians buying real estate in the US and I am waiting for it to arrive. I think it will help me understand the tax implications better.

There are a couple of books on here and they also recommend some others in the podcasts. I have ordered 4 books from Amazon and the two or three they recommend on BP.

I would start listening to the podcasts and sign up for the webinars too. There is great advise in both of those.

@Daljit Ajimal - do a search for Steven Hamilton, view his profile (link below) & book an appointment to speak with him via his. 

I believe he's somewhat of an expert in this area, and may be able to answer all your questions in one phone call.

https://www.biggerpockets.com/users/StevenHamilton

Nice to meet you. I was born in Edmonton but spent most of my life in Las Vegas, currantly investing in Colorado and Arizona. Have quite a few connections in U.S. Maybe I could be of some help to you. What kind of real estate do you inbest in.

Hi Steve. Still figuring out Bigger Pockets here so apologies for the late reply. I currently own a duplex here in ontario which is brining in some cash flow, which is nice. I also have my basement apartment rented in my primary residence as well. I'm ready to expand now. What's stopping me from going all out is that as I do more research with folks here in canada, ie. accountant, real estate agent, etc.. All I'm hearing is how much paperwork is required to do as a foreign investor and so many rules and regulations need to be seriously considered as it differs from municipalities. Are you still investing in US as a Canadian or do you have citizenship? Am I just hearing people speaking from fear. Should I listen to them? 

Originally posted by @Daljit Ajimal :

Hi Steve. Still figuring out Bigger Pockets here so apologies for the late reply. I currently own a duplex here in ontario which is brining in some cash flow, which is nice. I also have my basement apartment rented in my primary residence as well. I'm ready to expand now. What's stopping me from going all out is that as I do more research with folks here in canada, ie. accountant, real estate agent, etc.. All I'm hearing is how much paperwork is required to do as a foreign investor and so many rules and regulations need to be seriously considered as it differs from municipalities. Are you still investing in US as a Canadian or do you have citizenship? Am I just hearing people speaking from fear. Should I listen to them? 

 PM me and I will give you titles of a couple great books that will help clear it up for you. Also look up Richard Dolan great example.

For an accountant do not feel like you need to use someone local. Many of us accountants have clients worldwide. Payroll, bookkeeping, etc can mostly be done remotely.

Here is a great list of questions to ask a potential accountant:http://www.biggerpockets.com/forums/51/topics/70447-questions-to-ask-a-cpa

Also check out the www.NAEA.org page in your search. It should help you find someone local. If someone comes to me, I'll send them your way.

If you need help in your search or want to verify something don't hesitate to ask.

For example: I have clients worldwide and things are just as easy as I e-mail them, talking on the phone. I even use Skype and TeamViewer to communicate with clients so I'd highly recommend looking for one of the best with great references that interviews well with you.

So look for someone you can connect with that works out for your situation.

Feel free to ask here if you have questions.

@Daljit Ajimal

If you do a search here on BP, there are a few threads covering just the topic of Canadians investing in the U.S.A. ... I'm on my mobile, otherwise, I'd dig them out for you.

The best piece of advice is to find yourself both an accountant and attorney who are practiced in cross boarder business and real estate. Before you meet with them, outline your near, mid and longterm objectives for your investment in the U.S.A., the spend a few hundred dollars to structure your investing in a manner which makes the most sense for your plans (i.e. not everyone needs a Canadian corporation to own a U.S.A. subsidiary for investing, but pending on your income and other assets, it may make sense. Additionally, holding your U.S.A. properties in an corporation or LLC may make sense if you wish to control repatriation of funds).

Build your team and choose the organization that makes sense for you ... 

Originally posted by @Steve Haight :

Nice to meet you. I was born in Edmonton but spent most of my life in Las Vegas, currantly investing in Colorado and Arizona. Have quite a few connections in U.S. Maybe I could be of some help to you. What kind of real estate do you inbest in.

What part of Arizona do you invest in?

Originally posted by @Daljit Ajimal :

Hi Steve. Still figuring out Bigger Pockets here so apologies for the late reply. I currently own a duplex here in ontario which is brining in some cash flow, which is nice. I also have my basement apartment rented in my primary residence as well. I'm ready to expand now. What's stopping me from going all out is that as I do more research with folks here in canada, ie. accountant, real estate agent, etc.. All I'm hearing is how much paperwork is required to do as a foreign investor and so many rules and regulations need to be seriously considered as it differs from municipalities. Are you still investing in US as a Canadian or do you have citizenship? Am I just hearing people speaking from fear. Should I listen to them? 

 First of all what is your investment goals in the U.S. and what's the reason you want to invest there. There are tons of Canadians investing in U.S. would be happy to get you to someone that can structure things for you. Let me know if you need an introduction. I would talk to people that have done it consider source.

@Daljit Ajimal

You may want to reach out to Jason Ansel of Altro Levy & Associates. He is a cross border legal/tax specialist, and will give you a one hour consultation on the best entity structure to use. I think it is $350 + HST.  

Hi @Steve Haight . My goal is buy and hold. I'm looking for straight cash flow to replace mine and my wife's income. The reason I'm looking to the US is because deals are harder to find here in Canada, not impossible but definitely the longer road. I don't just want to take on properties due to the lower interest rate as we are getting here in ontario about 2percent variable. Things will change and if the fundamentals aren't there for me, I'm stuck with a dud, maybe paying out of my pocket. I've received some great advice so far. Again, because we Canadian investors have to be extra careful with our paperwork , I'm just being hesitant. 

Hi Daljit,

Yes properties are alot less money to get into and can cash flow better, then you are cash flowing U.S. currency. It is not that hard to set up an off shore account and then start investing.  This is a great resource.

Www.my new company.com

Originally posted by @Roy N. :

@Daljit Ajimal

If you do a search here on BP, there are a few threads covering just the topic of Canadians investing in the U.S.A. ... I'm on my mobile, otherwise, I'd dig them out for you.

The best piece of advice is to find yourself both an accountant and attorney who are practiced in cross boarder business and real estate. Before you meet with them, outline your near, mid and longterm objectives for your investment in the U.S.A., the spend a few hundred dollars to structure your investing in a manner which makes the most sense for your plans (i.e. not everyone needs a Canadian corporation to own a U.S.A. subsidiary for investing, but pending on your income and other assets, it may make sense. Additionally, holding your U.S.A. properties in an corporation or LLC may make sense if you wish to control repatriation of funds).

Build your team and choose the organization that makes sense for you ... 

I second the opinion that it's imperative you find a good cross-border accountant that can explain the ins and outs of the tax implications of investing across the border. It's not how much you make - it's how much you keep! For example, be very careful of "standard" advice from US accountants to put holdings in an LLC - depending on how it's structured you could get double-taxed (once in the US and again in Canada) since CRA doesn't view LLCs as flow-through entities. Personally I use LLLPs to invest in US real estate but everyone's situation is different. Check with your professional.

You're right that every locale in the US has its own rules, so it takes research to get familiar with whatever target market you are aiming for.  With some work, networking, (and practice!), etc. you'll become an expert in your farm market.  It does take time and effort, but is well worth it in the end.

I'd also recommend finding an attorney that specializes in entity set-up that is familiar with working with foreign nationals.  This will almost always be a different attorney from the one you use for your real estate transactions.

Feel free to PM me if you have any questions or would like to know who I use for accounting and US entity set-up.