Canadians Snap Up U.S. Properties

Rickson9

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#1
For those who care about buying RE in the U.S.

"Canadians bought more U.S. properties than citizens of other countries in the last year, although financing was a hurdle for many of them.

"A study by the National Association of Realtors showed Canadians bought 23 per cent of all the homes sold to foreigners from March, 2009 to March, 2010."

http://www.theglobeandmail.com/report-on-b...article1638310/
 

Rickson9

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QUOTE (DonCampbell @ Jul 13 2010, 02:59 PM) Imagine their shock when they start to do the homework (after the fact).

I hope it all turns out well for them, but the facts often don`t lie.


It`s turning out quite well for my wife and I. The only shock we`ve really had is how relatively easy it is to turn a profit. Honestly the hardest part was filling out the W-7 to get our ITINs.
 

RedlineBrett

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#4
QUOTE (Rickson9 @ Jul 13 2010, 10:51 AM) For those who care about buying RE in the U.S.

"Canadians bought more U.S. properties than citizens of other countries in the last year, although financing was a hurdle for many of them.

"A study by the National Association of Realtors showed Canadians bought 23 per cent of all the homes sold to foreigners from March, 2009 to March, 2010."

http://www.theglobeandmail.com/report-on-b...article1638310/

Not seeing any deals where I want to buy. And financing is a PITA... way better to pay cash (off a HELOC) if you can.
 
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Rickson9

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QUOTE (RedlineBrett @ Jul 14 2010, 09:55 AM) Not seeing any deals where I want to buy. And financing is a PITA... way better to pay cash (off a HELOC) if you can.

Very good advice.
 

LillianHo

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#6
QUOTE (Rickson9 @ Jul 13 2010, 08:06 PM) It`s turning out quite well for my wife and I. The only shock we`ve really had is how relatively easy it is to turn a profit. Honestly the hardest part was filling out the W-7 to get our ITINs.

Could you share more details on your investment in US? How did you make profit? Which city?

What`s W-7 and ITINs? Thanks.
 

ChrisDavies

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#7
For everyone one like you who makes a buck with no big problems, there`ll be 20 who screw it up. I`m glad you`re sharing some of what you`re experience has been though.

QUOTE (Rickson9 @ Jul 13 2010, 08:06 PM) It`s turning out quite well for my wife and I. The only shock we`ve really had is how relatively easy it is to turn a profit. Honestly the hardest part was filling out the W-7 to get our ITINs.
 

ChrisDavies

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#9
QUOTE (housingrental @ Jul 14 2010, 11:33 AM) He`s not sharing with us
He`s not willing to talk about specific neighborhood / complex`s where he`s investing
Just a thought..

Giving the benefit of the doubt.
 

bizaro86

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#10
QUOTE (ChrisDavies @ Jul 14 2010, 12:14 PM) For everyone one like you who makes a buck with no big problems, there`ll be 20 who screw it up.

Which is probably true for real estate investment in general, even in the top ten towns here in Canada, not just in the US. There has been a spate of threads on this board proving that over the last few weeks.

Michael
 

ChrisDavies

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#11
QUOTE (bizaro86 @ Jul 14 2010, 02:21 PM) Which is probably true for real estate investment in general, even in the top ten towns here in Canada, not just in the US. There has been a spate of threads on this board proving that over the last few weeks.

Michael

If it`s 20:1 in the US, it`s only 5:1 here with big problems. The tax systems and immigration laws which prevent you from doing any work on your property are just two big reasons why there`s a lot of landmines down there.
 

Rickson9

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QUOTE (LillianHo @ Jul 14 2010, 01:54 PM) Could you share more details on your investment in US? How did you make profit? Which city?

What`s W-7 and ITINs? Thanks.

My wife and I buy 2 bed 2 bath condos in Phoenix, AZ. Off the top of my head, monthly costs are $175/mo for condo (HOA) fees, $40/mo home warranty, $40/mo home insurance, $55/mo property management, $950/yr property taxes. Approximately $390/mo expenses. Include whatever else you would normally expense (eg. extra maintenance above and beyond the monthly condo/HOA frees, legal, accounting etc.). Rents for $700/mo. Purchase price of $35,000. At the height of the real estate boom in Phoneix, AZ these condos were selling for $150K (from Maricopa county tax records).

1 bed 1 bath condos sell for $20K.

We have bought with vacant possession and we have also bought with tenant already in place (ie turn-key).

These numbers represent zip codes in Phoenix, AZ that have none, or the lowest levels, of property and violent crime. Crime is my primary screen, my secondary screen is financial. Obviously if you go to areas with higher rates of property/violent crime the prices are lower. For example I could buy a 2 bed 2 bath for cheaper in 85032, but my property manager would probably get killed by a meth dealer.

We don`t use financing because it takes too long and there are enough cash buyers that competition is a serious consideration.

This is information about the ITIN:
http://www.irs.gov/individuals/article/0,,id=96287,00.html

I will not provide the zip codes where I am investing because the competition is already bad enough. I literally write up 20 offers to close on 1. This is not an exaggeration. There is enough information available online to research any zip in the U.S. (demographics, transportation, property/violent crime, proximity to shopping, schools, police, malls, universities, military bases, hospitals, golf courses, etc.) if an individual were so inclinded to invest.

I hope this helps a bit.
 

Rickson9

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#13
QUOTE (housingrental @ Jul 14 2010, 02:33 PM) He`s not sharing with us

This is not true.

QUOTE (housingrental @ Jul 14 2010, 02:33 PM) He`s not willing to talk about specific neighborhood / complex`s where he`s investing

This is true.

If an individual wanted to invest in the U.S. they would have done so. The objection that I "didn`t share" as the primary reason an individual hasn`t invested in the U.S. is unlikely.
 

bizaro86

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#14
QUOTE (ChrisDavies @ Jul 14 2010, 03:36 PM) If it`s 20:1 in the US, it`s only 5:1 here with big problems. The tax systems and immigration laws which prevent you from doing any work on your property are just two big reasons why there`s a lot of landmines down there.

Fair enough. The point remains that more people fail than succeed, and research and hard work are required for success. Its by no means impossible, as demonstrated by the many REIN members who have had significant success, but its not a no-brainer, slam dunk either. (To mix my metaphors)

QUOTE (housingrental @ Jul 14 2010, 12:33 PM) He`s not sharing with us
He`s not willing to talk about specific neighborhood / complex`s where he`s investing
Just a thought..

He`s provided enough information in various threads that anyone wanting to replicate what he`s doing could, although it would require some of that aforementioned hard work. Some things are better kept close to the vest, especially if you`re still buying. The last time you found a great deal on a property, did you tell a bunch of other investors about it before you were able to get an offer accepted? I sure didn`t.
Michael
 

Rickson9

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#15
When I went to Phoenix I took a list of all the objections I`ve heard down with me and read it to my friends who live down there (Canadian and American). Everything from "Phoenix is in a desert and will run out of water!" to "What`s the primary industry in Phoenix?" (What`s the primary industry in Toronto?) to "How can I fix my place when I`m not around?", etc. It was a great conversation starter and they got a kick out of it.

As one Canadian snowbird told me in Phoenix, "Do you know why individuals make excuses not to buy RE in the U.S.? Because excuses are a dime a dozen so it`s cheaper."
 

housingrental

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#16
Hi Rickson
Thanks for the response
You seem to be picking up properties above 9% cap rate - not bad !!!
Your concern about too much competition and getting difficult to find is the point... What good is this hype for an investor if rentals selling with this return aren`t to be found for them?

QUOTE (Rickson9 @ Jul 14 2010, 05:57 PM) This is not true.



This is true.

If an individual wanted to invest in the U.S. they would have done so. The objection that I "didn`t share" as the primary reason an individual hasn`t invested in the U.S. is unlikely.
 

housingrental

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#17
Not really....
I`m not seeing, and haven`t seen other investors that have been able to replicate that high of a return on any scale.
Rickson doesn`t seem to be able to either if he`s not able to find deals like this anymore... Or share them...
And yes even when still buying I`ve also been very open on what I think is good value...There`s always more properties and limited time and funds... And certain places (too small, too large, setup, etc..) that don`t work for me but are what another investor might be looking for...

QUOTE (bizaro86 @ Jul 14 2010, 06:18 PM) Fair enough. The point remains that more people fail than succeed, and research and hard work are required for success. Its by no means impossible, as demonstrated by the many REIN members who have had significant success, but its not a no-brainer, slam dunk either. (To mix my metaphors)



He`s provided enough information in various threads that anyone wanting to replicate what he`s doing could, although it would require some of that aforementioned hard work. Some things are better kept close to the vest, especially if you`re still buying. The last time you found a great deal on a property, did you tell a bunch of other investors about it before you were able to get an offer accepted? I sure didn`t.
Michael
 
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Rickson9

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QUOTE (housingrental @ Jul 15 2010, 12:32 PM) Hi Rickson
Thanks for the response
You seem to be picking up properties above 9% cap rate - not bad !!!
Your concern about too much competition and getting difficult to find is the point... What good is this hype for an investor if rentals selling with this return aren`t to be found for them?

I consider myself a conduit for information. I apologize if my posts came across like `hype`. If my posts can be considered `hype` than some of the responses should be considered `discouragement`. I do my best to preface my posts with comments such as "...for those who care...".

I`m not comfortable talking about the zip codes that I like. Every individual is more than able to research a zip code that appeals to them. My returns can be found by any individual who is motiviated enough to look for it.

With regards to whether I am currently finding deals similar to the aforementioned one, I am. I have already put in 6 offers in this week alone and will continue to do so. For better or worse, whether readers believe me or not isn`t my primary concern at the moment.

I`m definately not the most knowledgeable poster by any stretch of the imagination, but I am one of the few individuals posting information on investing in the U.S. from current (on-going) personal experience. I would hope that some readers find it of value and I apologize to those who don`t.
 

wealthyboomer

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#19
More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.

Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.

Assuming the U.S. economy doesn`t worsen, aggravating the foreclosure crisis, Sharga projects it will take lenders through 2013 to resolve the backlog of distressed properties that have on their books right now.

The prospect of lenders taking over more than a million homes this year is likely to push housing values down, experts say.

"The downward pressure from foreclosures will persist and prices will be very weak well into 2012," said Celia Chen, senior director of Moody`s Economy.com.

She projects home prices will fall as much as 6 percent over the next 12 months from where they were in the first-quarter.

Nevada, Arizona, Florida, California and Utah were next among states with the highest foreclosure rates. Rounding out the top 10 were Georgia, Michigan, Idaho, Illinois and Colorado.
 
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Rickson9

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#20
It is unfortunate that bad news for U.S. homeowners ends up being good news for me. Half the properties that I have bid on are held by banks and the other half are short sales.