Episode 28

28 - A Canadian's Guide to Financing US Investment Properties

Episode Summary

In this episode of Get Real Wealthy Season 2, Quentin talks about financing US properties for Canadians.

Quentin says that to increase the yield of any real estate investment, you need good financing. Financing can help you increase the yield on a property manifold. Mortgages are the power tools of real estate investing, and having great financing is essential. If you leverage it appropriately, it can make you very wealthy. He adds, "You're doing basically what governments are doing. Governments are borrowing money, and they are using it to be able to invest in infrastructure and people in things that they think are going to have the GDP of the economy."

He adds that you can do the same thing by investing in assets that will continue to pay you for years and decades to come. You should remember that returns will be related to how well and how much financing you can get. As a Canadian investing in the US, you are a foreign investor. They don't know you and don't have your credit history. So there are different things that you can do to help. Number one, there are Canadian banks in the US. You can get one mortgage, perhaps as a vacation property, through that bank, but it isn't a great way to build a portfolio of properties.

There are credit unions present both in Canada and the US. They are in specific states that you can utilize to help you purchase properties. Another approach that you can use is Foreign National Programs, which mortgage brokers in the US have. Oftentimes as this means that you can go up to 60% loan to value your interest rates are much higher. So, as long as the numbers work and you can utilize that leverage, you're still able to get that return in yield.

Another approach is using a portfolio loan. A US lender will put a mortgage behind all of those properties with one charge, especially if you have multiple properties that are smaller. Usually, they'll have a minimum loan size, like $250,000 or $300,000. Another option is to partner with a US citizen and have them qualify on the property for you. Another option is becoming a limited partner in general partnerships. He adds, "One of the strategies that I'm using down there, it allows me to invest in larger multifamily projects, but I have a tax structure for investing in the US that helps me avoid double taxation."

In conclusion, Quentin adds that if you want to learn more about his US investing, you can reach out to him on Instagram @qmanrei or email him at quentin@getrealwealthy.com

Important Links and Resources






About the Podcast

Show artwork for Get Real Wealthy
Get Real Wealthy
A Real Estate Investers Journey

About your host

Profile picture for Quentin DSouza

Quentin DSouza

Quentin D’Souza is a multiple award winning Real Estate Investor, and a trusted authority on real estate investing. He is an Ontario Certified Teacher and holds two university degrees, which includes a Master’s in Education. Quentin has appeared on local and national television and radio, interviewed in national publications, and has been a keynote speaker to large audiences of real estate investors. He owns a real estate portfolio in excess of $80 million dollars of assets under management across Canada and the US and transacted on 80+ properties since 2004. Quentin is the author of several books available on Amazon. He is also mentors real estate investors as the Chief Education Officer of the Education for Canadian Real Estate Investors and Durham Real Estate Investors Club.