Investing in American Real Estate as a Canadian

24 Replies

Hello everyone,

I've been searching around for investment oppurtunities for this summer.

Does any fellow Canadian invest in the USA rental market?

I'd love to know the pros/cons/procedures of investing in the USA markets as a lot of their markets are MUCH more affordable compared to Ontario. I'm also wondering the best way to get financing and mortgages from the bank for properties between the 50K - 150K price range. I see a lot of potential markets in Detroit, Buffalo, Niagara Falls, etc.

@Jashan Mundi

Lots of good markets including Ohio as well.  I have invested in Florida - near Orlando.  And the main thing is that you want to have people that you can trust in those markets to get you the right investment and hook you up with the right property management company and a great home inspector.   Start by finding a Realtor in that area that is a top producer as they will have the connections.   Then understand that you will need to do USA taxes and Canada taxes.

So also, talk with your accountant to understand what the tax costs will be.

@Roy Cleeves Thank you for the insight! Do you normally visit the property before making the final decision to purchase or would a great home inspector's opinion provide you with all the details and potential damages/repairs?

Also, did you ever have any trouble with financing from the banks/lenders?

Yes - I forgot to mention about financing.  I used a line of credit on my primary home and I just did a wire transfer of funds to the USA.  That seemed a lot easier.  You can still apply for a mortgage there yet as a foreign national they will probably want to only give you 50% or so and it might be tough during this virus time as liquidity is an issue for lenders so they will stop giving out money to those farthest away.

I have never been inside the 3 homes that I own there and I have owned them since 2009/2010/2011.  I trusted the Realtor, the Home Inspector and the Property Management company.  I have the property management company do all repairs that were needed to prepare each one for sale when I purchased and they continue to maintain them now.

The Home Inspector is the right person to get an idea of what needs to be fixed and what the costs should be.

@Jashan Mundi seems like things are changing day by day in regards to lending in the states. My wife and I called RBC about a year ago and they connected us with their US department and told us they would lend to us depending on the state and value of the home.

We don’t any property in the states. We are still doing research and hoping to jump in if the Canadian dollar gets to or close to par with the American dollar.

Check YouTube there are a few videos out there of Canadians investing in the states. They post where and what they’re investing.

Originally posted by @Anibal Mejias :

@Jashan Mundi seems like things are changing day by day in regards to lending in the states. My wife and I called RBC about a year ago and they connected us with their US department and told us they would lend to us depending on the state and value of the home.

We don’t any property in the states. We are still doing research and hoping to jump in if the Canadian dollar gets to or close to par with the American dollar.

Check YouTube there are a few videos out there of Canadians investing in the states. They post where and what they’re investing.

 How long you gonna wait? What's your target 1.3 again?

Originally posted by @Jashan Mundi :

Hello everyone,

I've been searching around for investment oppurtunities for this summer.

Does any fellow Canadian invest in the USA rental market?

I'd love to know the pros/cons/procedures of investing in the USA markets as a lot of their markets are MUCH more affordable compared to Ontario. I'm also wondering the best way to get financing and mortgages from the bank for properties between the 50K - 150K price range. I see a lot of potential markets in Detroit, Buffalo, Niagara Falls, etc.

 There are definitely finance options. RBC as mentioned has options which is the closest arms reach.. other lenders for us Canadians will be charging you fees similar to B lenders in Canada..

We canadians have been spoiled with A lender fees which is essentially 0.. Beyond that it hard to comprehend the fees you pay elsewhere

Anyone investing in Multi-Family projects in the states? 32+ - around 60 units?  I'm trying to connect with any Canadians who are working on this type of venture.

Hey folks,

I'm a Canadian living and investing in Southeast Michigan. I'd love to connect you if you need help getting to know folks in the investing or lending space. PM me for more information - @Jashan Mundi @Anibal MejiasAls.

@Solomon Yasin I'm frequently on the lookout for small to mid-sized multi-family units (Southeast Michigan for now) to get into with colleagues or larger MFH projects in an LP position (US-wide). Let me know how I can help!

I hope all is well with you and yours up North!

Thanks @Dylan Tanaka

@Roy Cleeves

I would throw my hat in the ring. Please look me up on LinkedIn and or call me and I will give you my bio. You can reach Daniel Blackford on LinkedIn and I will answer back.

I generally cover five Central Florida counties. Get in touch. Stay safe.

Originally posted by @Anibal Mejias :

@Hai Loc gonna wait at least a month. In the mean time just researching. Probably buy in the Orlando area.

 Nothing changed.. you still waiting?

@Hai Loc yes still waiting. Still have my fingers crossed Canadian dollar will go up higher. Also in the meantime I have been doing a lot of reading and research. I personally don’t believe we need to rush into any type of purchase for the time being, there will be more than plenty of opportunities.

How about you?

Originally posted by @Anibal Mejias :

@Hai Loc gonna wait at least a month. In the mean time just researching. Probably buy in the Orlando area.

Not looking to expand at the moment. I still have to worry about tenants paying May rent.. still short about $7000