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Want to invest in the USA. But how

AllisonStreet

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Jan 22, 2021
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Hey all,

I am currently an owner of two properties. Of course, I am a Canadian citizen (only). I have thoughts of getting a retirement property in the USA for my own use in 15 years - and it makes sense to me to work toward getting my toe in the waters NOW in the US market.

The thought would be to get an investment property in the US in order to begin building US equity and learning how to operate in the US market. And I gotta say - wow, there are some nice, affordable places in areas that I am looking. (Current live in the the GTA, looks like I could sell my two home and buy 6 in the US in markets I am looking at!).

I honestly don't know where to start. I mean, yes - research the market, know that you are getting an appropriate property for the market, know that you can locate reliable tenants.

And who knows - there may be opportunities with property management.

Insight would be appreciated. What am I looking at for financing, costs, tax implications? How do I build a "team" of contacts - agent, banker, etc for a US purchase?
 

Thomas Beyer

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Aug 30, 2007
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Start with an area you like. Talk to realtors in the area that specialize in rental properties. Know what good value is, what rent levels are and what the rent control laws allow.

Or start with secondary research on what are high growth areas in the US. Many in the south are. Avoid Dem run rent controlled cold weather states !!

FL, TX, AZ, SC, GA, NM, NV all good !! There’s 20M to 40M homes for you to look at !!

Getting a mortgage will be very VERY hard at first. Easier once you got a drivers license, and own a house or 5.

Thus start with a LOC on the Canadian home ie buy in cash in US !!
 

Viraj W

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May 21, 2021
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Hi AS, //find locales first//
- financing: my research shows that US banks consider high-cash value permanent (whole) life insurance policies as collateral (equivalent to property). Ask US banks on their policies for this usage case. // I would sell the 2 Cdn units. Buy a WLIP in US, immediately get mortgage loans from an US bank based on it (lower interest than getting a loan from your policy's insurance company, a plan B option)
- tax: on YouTube there's videos devoted to Canadians investing in US real estate, in particular, which corp structure to hold to prevent double taxation. Check it out. Insightful.
- team: see above, an accountant in Mississauga, ?Alan Madan might know contacts b/c he specializes in Can/US taxation
- team: having made head-way into your locale of interest, Google search real estate investment accountant [insert city/town here] - such a person can refer you further
 

bhupinderbhatti

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Feb 23, 2021
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First of all talk to your real estate agent. Your agent will give you better advice. Good agents and brokers have extensive and updated contact lists and are able to recommend good mortgage brokers, tax preparers, attorneys, property managers. In short, your real estate agent will be your most important player and your most valuable resource.
 
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