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Amazing content! Could you please make a video where you go into more detail on how you set up your legal entities (Limited Partnership) and how taxes work for Canadians investing in the USA.
If we buy a house in the US using Canadian principal residence home equity (HELOC), can we claim the HELOC interest as an expense while filling US tax returns? Thanks in advance.
Thanks for the forecast! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How can I transfer them to Binance?
@@osamahal-baghdadi3651 with the new Capital gains inclusion rates changes by our lovely federal Liberal government, we are owning our US entities personally for now
Everyone's situation is different - we used personal names (with LPGP structure) because we got some money to invest since we sold our personally owned property in Canada.
Questions about buying your property in a corporation... if you guys refinance to get the appreciation out isn't that the corporations money?.... if you buy a property under your personal name and refinance that cash is available to you....
I've been waiting for a video like this!!! 👍 .. I'm only half way in and amazed at the detail and research . Love the work you both did. Erwin 🎉cheers to your love of research
Your argument for not having bought a multi-family is well understood, but does it really matter having hired a property management given the higher cap rate and higher cashflow in multi-family? Please provide some trade off analysis in comparison of single family rental and multi-family rental. I also have a question why not Ohio and why Texas as canadians? Both are landlord friendly to the same extent, but Ohio has a great proximity for managing the property on your own as Canadians while Texas is far and makes it totally reliable on a property management. Ohio's economy may not be as robut as Texas', but it has even cheaper homes with the same cap rate and CashOnCash returns. I am looking forward to your replies and learn more. Thanks to you both.
Ask anyone selling an apartment building right now (I know a lot to them and there’s much wonderful research available out there showing over supply of high density housing) Many don’t even get showings vs my 4 houses sold this year in an average of 22 days. I want liquidity to de-risk my portfolio as much as possible and nothing is more liquid than a single family house. Plus when investing in single family, I don’t feel the need to ever go see it vs a large investment like an apartment, I’d have to go and manage a PM including hiring a firing every few years. Something I don’t want to do. Texas simply has more green lights saying invest Eg their chip manufacturing companies are showing rising stock prices vs Ohio’s Intel is crashing down along w 15,000 job cuts expected. Plus in my following of where the big money is investing, none have said Ohio. Plus w the flood of Ontario money going to Ohio I’d rather say away from what other retail investors are doing.
For calculating leveraged real estate return, you can’t simply divide the return percentage by equity contribution %. It should be calculated taking into account the cost of borrowing. Hence 5.5% + (5.5%-3.5%^)*75%/25% = 5.5% + 2%*3 = 11.5% ^assuming borrowing cost
As this is in the context of real estate investing, the tenant’s rent pays the mortgage. Since I don’t factor cash flow and mortgage pay down, a quick and dirty leveraged return seems appropriate for a rushed 15 minute TH-cam. I prefer to be conservative which I’m doing considering the S&P figure does include dividends where as I did not including mortgage pay down nor positive cash flow
I invest in the US for passive income. I do a lot of work in my business to "bet on myself"... I don't know if this is the answer you're looking for. Last year I bought a business and I'm trying to increase the value of the business. Hope this makes sense.
Lot of valid points in favour of Texas investment, but Alberta Cash flow is way higher. 500k worth of duplexes in Calgary have 500-1000 cash flow per month, they have no rent control either.
Sounds fabulous but I can’t scale mortgages in Canada vs I can in the USA where I don’t have to personally qualify. Plus it’s more affordable which matters with the new capital gains inclusion rates. Plus I’m not convinced rich immigrants keep coming to Canada. No rich immigration, no upward pressure on rents and prices.
Plus if you go outside Canada you’ll find almost no one excepts the Canadian dollar vs the US dollar will get you pretty far. Textbook financial planning theory will state diversifying income and currency into the global reserve currency and based hard assets is a good thing
@@homersampson13 I'm sorry, but you are delusional - RICH immigrants? I am an immigrant and I assure you, Immigrants are not rich. They are not the ones driving up the prices - it's the political red tape which take 3+ years to approve permits and charges exorbitant taxes on properties
@@homersampson13 Just invest 100% of your money i.e TFSA + RRSP for you and your partner in SP500 in USD denomination . You can scale this to half a million easily b/w these accounts.
Loved this video. Great to meet your husband. I'm a Manitoba resident and owner with 5 doors, all cash-flow positive, in Winnipeg. However, my wife and I have thought about expanding to the US. Your presentation and content was great. I'll likely be reaching out for more information. Question. You mentioned that the US has both 30 amortization and 30 term options. In Canada, if we break out 5 year term early at, let's say, 2.5 into the term, we need to pay 2.5 years of remaining term interest. On a 30 year term, if we wanted to break it 15 years into refinance, would we still need to pay the balance of remaining 15 years of interest during the refinancing?
🙏🙏We plan for that upfront when choosing a mortgage w more flexible pre-payment plans as rates should bottom 2-3 years from now. High rates for now, then lock in at the low to remove interest rate risk for next 30 years. Sounds nice no?
@@homersampson13 , I get that. But his question was different. I think he was asking: Are there mortgage products available where we do not have to pay for the remaining 27 years of interest on a 30 year term , 30 year amortization flexible mortgage taking today and being refinanced for a lower rate getting locked in 3 years from now?
@kenjames8377 no crash coming. Millions of ppl locked in a 30 year mortgage at 2-3% a few years ago...they're all laughing right now. As his video indicates...a 30 year mortgage is actually for 30 years- at 2 or 3%!!
I looked at Texas too. But the property tax kills the monthly cashflow AND insurance has now almost doubled in the last 2 years...and still increasing.
Thankfully we got ours cheap enough (we bought off market) to make money on the buy, sellers stayed as tenants so no vacancy, and our rate is a good one allowing us to cash flow. Ours is still a 5.1 cap rate loaded with economic fundamentals which beats the pants of pretty much every investment opportunity I’ve seen for the lazy investor like myself. That said we will diversify and look for better cash flow with our next deal in a different city and state made possible by @share’s national coverage. My insurance should be steady as we’re in San Antonio, not in a flood plain and quite far from the path of hurricanes
@homersampson13 all good. I just can't get past the high property tax. I prefer Memphis and Huntsville...much lower tax and the tenants supply their own appliances! The Share concept is good...but wayyy to many fees. Best of luck.
Want to stay up-to-date with all the latest news about Real Estate Tax Tips, receive weekly tax tips and free real estate investment resources? Then subscribe to our newsletter here: realestatetaxtips.ca/youtube
Amazing content! Could you please make a video where you go into more detail on how you set up your legal entities (Limited Partnership) and how taxes work for Canadians investing in the USA.
What ownership structure are you utilizing to buying your investment property in USA?
LP/GP - we will be hosting a class in October talking about this specific topic. Stay tuned
Hi, yes, I would like more info pls
Hello, you can get more information here: rett.sharesfr.com/ Thanks!
If we buy a house in the US using Canadian principal residence home equity (HELOC), can we claim the HELOC interest as an expense while filling US tax returns? Thanks in advance.
How much does this complicate filing of Canadian Taxes ?
Depends on the structure...
Thanks for the forecast! Just a quick off-topic question: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). How can I transfer them to Binance?
Do you have your canadian corporation own the US entity, or is it owned by under personal name ?
@@osamahal-baghdadi3651 with the new Capital gains inclusion rates changes by our lovely federal Liberal government, we are owning our US entities personally for now
Everyone's situation is different - we used personal names (with LPGP structure) because we got some money to invest since we sold our personally owned property in Canada.
Questions about buying your property in a corporation... if you guys refinance to get the appreciation out isn't that the corporations money?.... if you buy a property under your personal name and refinance that cash is available to you....
Sorry maybe I missed it. Did you pay cash or finance it in the US ? Thanks
@@jeremyloewen6946 finance!! Leverage in real estate investing is what makes it my favourite asset class
We finance it. We have a mortgage on the property.
I've been waiting for a video like this!!! 👍 ..
I'm only half way in and amazed at the detail and research . Love the work you both did. Erwin 🎉cheers to your love of research
Glad you enjoyed it!
Congrats on your Real Estate investment in the US!
Thank you!
Your argument for not having bought a multi-family is well understood, but does it really matter having hired a property management given the higher cap rate and higher cashflow in multi-family?
Please provide some trade off analysis in comparison of single family rental and multi-family rental.
I also have a question why not Ohio and why Texas as canadians? Both are landlord friendly to the same extent, but Ohio has a great proximity for managing the property on your own as Canadians while Texas is far and makes it totally reliable on a property management.
Ohio's economy may not be as robut as Texas', but it has even cheaper homes with the same cap rate and CashOnCash returns.
I am looking forward to your replies and learn more.
Thanks to you both.
Ask anyone selling an apartment building right now (I know a lot to them and there’s much wonderful research available out there showing over supply of high density housing) Many don’t even get showings vs my 4 houses sold this year in an average of 22 days. I want liquidity to de-risk my portfolio as much as possible and nothing is more liquid than a single family house. Plus when investing in single family, I don’t feel the need to ever go see it vs a large investment like an apartment, I’d have to go and manage a PM including hiring a firing every few years. Something I don’t want to do.
Texas simply has more green lights saying invest Eg their chip manufacturing companies are showing rising stock prices vs Ohio’s Intel is crashing down along w 15,000 job cuts expected. Plus in my following of where the big money is investing, none have said Ohio. Plus w the flood of Ontario money going to Ohio I’d rather say away from what other retail investors are doing.
@@homersampson13 , thanks very much. Appreciated
For calculating leveraged real estate return, you can’t simply divide the return percentage by equity contribution %.
It should be calculated taking into account the cost of borrowing. Hence 5.5% + (5.5%-3.5%^)*75%/25% = 5.5% + 2%*3 = 11.5%
^assuming borrowing cost
As this is in the context of real estate investing, the tenant’s rent pays the mortgage. Since I don’t factor cash flow and mortgage pay down, a quick and dirty leveraged return seems appropriate for a rushed 15 minute TH-cam. I prefer to be conservative which I’m doing considering the S&P figure does include dividends where as I did not including mortgage pay down nor positive cash flow
Very informative video. Thank you for sharing it with us!
When would you offer a step-by-step workshop or seminar about investing in the US? Unfortunately, I have missed the passed ones.
Hi, we will be offering the workshop in October. Please sign up for our newsletter for all upcoming announcements. realestatetaxtips.ca/yt
Hi cherry I always watch your videos currently instead to buy property in us let me know if you any advice. Thanks
I invest in the US for passive income. I do a lot of work in my business to "bet on myself"... I don't know if this is the answer you're looking for. Last year I bought a business and I'm trying to increase the value of the business. Hope this makes sense.
Lot of valid points in favour of Texas investment, but Alberta Cash flow is way higher. 500k worth of duplexes in Calgary have 500-1000 cash flow per month, they have no rent control either.
Sounds fabulous but I can’t scale mortgages in Canada vs I can in the USA where I don’t have to personally qualify. Plus it’s more affordable which matters with the new capital gains inclusion rates. Plus I’m not convinced rich immigrants keep coming to Canada. No rich immigration, no upward pressure on rents and prices.
Plus if you go outside Canada you’ll find almost no one excepts the Canadian dollar vs the US dollar will get you pretty far. Textbook financial planning theory will state diversifying income and currency into the global reserve currency and based hard assets is a good thing
@@homersampson13 I'm sorry, but you are delusional - RICH immigrants? I am an immigrant and I assure you, Immigrants are not rich. They are not the ones driving up the prices - it's the political red tape which take 3+ years to approve permits and charges exorbitant taxes on properties
@@homersampson13 Just invest 100% of your money i.e TFSA + RRSP for you and your partner in SP500 in USD denomination . You can scale this to half a million easily b/w these accounts.
Loved this video. Great to meet your husband. I'm a Manitoba resident and owner with 5 doors, all cash-flow positive, in Winnipeg. However, my wife and I have thought about expanding to the US. Your presentation and content was great. I'll likely be reaching out for more information.
Question. You mentioned that the US has both 30 amortization and 30 term options. In Canada, if we break out 5 year term early at, let's say, 2.5 into the term, we need to pay 2.5 years of remaining term interest. On a 30 year term, if we wanted to break it 15 years into refinance, would we still need to pay the balance of remaining 15 years of interest during the refinancing?
🙏🙏We plan for that upfront when choosing a mortgage w more flexible pre-payment plans as rates should bottom 2-3 years from now. High rates for now, then lock in at the low to remove interest rate risk for next 30 years. Sounds nice no?
@@homersampson13 , I get that. But his question was different.
I think he was asking: Are there mortgage products available where we do not have to pay for the remaining 27 years of interest on a 30 year term , 30 year amortization flexible mortgage taking today and being refinanced for a lower rate getting locked in 3 years from now?
@@avadhpatel111 get a mortgage with no/less prepayment penalty
Great video. I’ve moved from Toronto to Texas for this reason! Many MF opportunities here as well.
I am moving soon to Texas from Toronto. Can we connect ?
Terrible time to buy. You’re heading into a housing crash in the US and prices and your value will continue to go down. You should’ve waited.
If it goes down, during this rate cutting cycle and historic amounts of investment in manufacturing creating high paying jobs, we will simply buy more
You watched the whole video right?
This is a multi-year INCOME plan for them.
@kenjames8377 no crash coming. Millions of ppl locked in a 30 year mortgage at 2-3% a few years ago...they're all laughing right now. As his video indicates...a 30 year mortgage is actually for 30 years- at 2 or 3%!!
I looked at Texas too. But the property tax kills the monthly cashflow AND insurance has now almost doubled in the last 2 years...and still increasing.
Thankfully we got ours cheap enough (we bought off market) to make money on the buy, sellers stayed as tenants so no vacancy, and our rate is a good one allowing us to cash flow. Ours is still a 5.1 cap rate loaded with economic fundamentals which beats the pants of pretty much every investment opportunity I’ve seen for the lazy investor like myself.
That said we will diversify and look for better cash flow with our next deal in a different city and state made possible by @share’s national coverage. My insurance should be steady as we’re in San Antonio, not in a flood plain and quite far from the path of hurricanes
@homersampson13 all good. I just can't get past the high property tax.
I prefer Memphis and Huntsville...much lower tax and the tenants supply their own appliances!
The Share concept is good...but wayyy to many fees.
Best of luck.
@@AvgJoeCda great markets to invest too!!