Discount U.S. Property for Canadians
Great US investment real estate property is still very available if you know where to look. Learn how to take advantage of this once in a lifetime opportunity.There are still many solid deals. Even with the exchange rate, if you do a comparison with a Canadian investment and a US property, in most cases, the price will be significantly less for the same type of property and with a similar rental amount. So if you can get similar rental amounts (which will be in US dollars), then why wouldn’t you?
Similarly, on a buy-fix-sell property, the profits will be in US dollars, so in the end, you can make nice profits with far less invested.
So how do you accomplish this with any degree of confidence and piece of mind? There are 3 main things to consider when contemplating whether to acquire US property.
First, you can’t just show up at a realtor’s office with a bag of cash and expect to find the best deals…in most cases, you will most certainly spend too much. There are many realtors who sell properties that are not great properties…properties that have been passed over by local investors to unsuspecting foreign investors for inflated prices.
It is essential that you MUST have a team of experts that has been properly vetted so you know you can invest with confidence. You must have a realtor you can trust as well as an insurance agent, mortgage broker, trust company, property inspector, property manager, contractor or handyman. These people MUST be licensed and fully vetted by you.
Secondly, it is recommended to create a proper corporate set up. Many Canadians buy property in their own names and consequently open themselves up to liability and tax consequences. Having a proper corporate structure allows you to become a US entity as well as enabling you to have more asset and liability protection.
Thirdly, there are areas of the U.S. which are better to invest in than others. I suggest to invest only in cities that meet certain strict criteria. These cities must have economic stability, year over year migration, solid employment and possess credible signs of economic recovery. Your criteria should account for multiple exit strategies as opposed to just a ‘buy & hold’ scenario, so both steady cash flow and many possible exit strategies should be part of your buying criteria.
Contact me for more details on how you can take advantage of great discount US real estate deals.
