Are you a Canadian real estate investor looking to make a splash in the US, but feeling held back by common myths about investing across the border? Have you heard that the process is too complicated, too risky, or simply not worth the trouble?
Let’s bust those myths once and for all. Here are three major myths about investing in US real estate as a Canadian, and Glen Sutherland is here to share the truth with you, an expert in navigating the complexities of investing in US properties as a Canadian.
In this episode, you will be able to:
- Decode differentiating factors and hurdles Canadian investors face in the US real estate market.
- Identify frequent blunders committed by Canadians while venturing into the US property sphere.
- Gain proficiency in effective tactics to achieve fruitful outcomes in US real estate ventures.
- Recognize the value of forming a robust squad and skillfully tackling risks in property investing.
- Learn to adjust to dynamic market conditions using insights garnered from the COVID-19 crisis.
The resources mentioned in this episode are:
- Consider investing in the US to take advantage of more landlord-friendly laws and lower price points.
- Diversify your portfolio by investing in different asset classes and markets to hedge against economic uncertainty.
- Start with one strategy and market before expanding to others to build relationships with property managers and contractors.
- Be aware of the potential disadvantages of investing in the US, such as higher lending rates, currency exchange risks, lack of privacy, and dealing with taxes in two different countries.
- Research specific markets in the US, such as the southern and coastal areas for appreciation and the Midwest for cash flow.
- Look into investing in both single-family homes and multi-unit properties to maximize income streams.
- Don’t be afraid to get started and learn as you go, but seek training, coaching, and mentoring to avoid common mistakes.
Mistakes Canadians Make
Canadian investors should be aware of the potential pitfalls when investing in the US market. These can include assuming the investment process is the same as in Canada, buying off the MLS at fair market value, and a lack of understanding of local school zones or crime maps.
Additionally, managing the legal and tax implications surrounding cross-border investments can be a common stumbling block for investors. Glen Sutherland advises avoiding these mistakes by doing proper research, seeking professional guidance, and understanding the nuances of the American real estate market.
He also suggests getting the contractor going with some materials and then doing it like draws by paying for only completed work to avoid losing money should the contractor walk away.
Reasons to Invest in the US
The United States offers numerous advantages for Canadian real estate investors, including favourable landlord laws, rent-to-value ratios, and pricing. Many have found that investing in the US can lead to higher cash flow and better return on investment compared to the Canadian market.
However, it’s important to consider the disadvantages such as the high cost of lending, exposure to currency exchange, and lack of privacy. By carefully weighing the pros and cons, investors can determine if investing in the US is the right fit for their portfolio.
Glen Sutherland cites his own experience with tenant screening in Canada as a key reason for exploring investment opportunities in the US. Within the podcast, he speaks about the importance of understanding how local laws and regulations can impact an investment project. Additionally, he mentions that investors should choose markets that align with their preferred investment strategies, such as focusing on cash flow or appreciation potential.
Glen Sutherland started investing in real estate in the early 2000’s and within a few years he transitioned his focus to the US. Glen specializes in where and what to buy. He also hosts the Podcast and Youtube channel, “A Canadian Investing in the US”.
Get in touch with Glen Sutherland
Brought to you in part by
BM Select/Butler Mortgage – https://bmselect.ca/