As a mortgage broker the worst question to get asked is “what’s the best rate you can get me?” When you shop for rate alone, you are unfortunately missing the bigger picture!
Let’s look at why this makes a difference when purchasing property in Canada and the US.
When you buy in Canada rate might be a good focus for you, because there are so many lenders competing on rate alone and with the high property prices rate is the main focus, because it indicates in many cases whether we can cash flow or not.
As a mortgage broker, I always strive to think out of the box, in order to stay competitive.
With that in mind, over two years ago, I went to the US (specifically Florida) and started making contacts with realtors, other mortgage brokers, lenders and wholesalers, just to name a few.
Once I had my contacts established and verified, meaning I would only work with referral sources that had been verified and could back up their offerings with proper protocols in place, I was then able to hit the Canadian market and start marketing this source of business. It has not been easy and has taken a lot of work but in the end, it has definitely worth it, as I have been assisting countless investors in Canada to invest in both residential and multi-family properties.
This is not my typical mortgage article but was important for me to write so I hope you like it!
As a self-employed entrepreneur and solo mortgage broker, it can get lonely and difficult in this business and having only been doing this for 3.5 years, I have had my days when I wanted to quit! I am sure I am not alone.
Last year was the best year I ever had and I was riding that wave until the new mortgage rules arrived in November of 2016. Where we as brokers were restricted by the new rules the government had initiated, I was hearing time and time again how the banks were not playing by the same rules.
Contrary to the so-called Trump Effect, the exchange rate and the low Canadian dollar, now is actually the BEST time to invest in revenue properties in the US.
Regardless of these issues, people always need a place to live, and with the ever-fluctuating market in the US, there are many opportunities to take advantage of low prices and the financing that is available to both Canadian and US investors.
For instance, you might consider purchasing wholesale properties in Tampa, vacation rentals in Orlando or turnkey properties in Atlanta, just to name a few of the available opportunities that exist.
We have all been keeping an eye on what has been happening with our neighbours to the south and wondering how the so called Trump effect will affect us in Canada.
Many of my Canadian clients who have been investing in many US markets continue to pursue investing in the US as they don’t feel that the Trump effect is something to worried about.
Furthermore, with low property prices, low vacancy rates, high cash flow and most importantly no bidding wars, there are many opportunities to get into the market without breaking the bank – even with the exchange rates as they are!
Many of my clients, myself included still plan to invest in the US but are wondering what options exist for financing, so I thought this would be a great primer on how to finance your properties as a Canadian investing in the US.
Wholesaling has always intrigued me but here in Canada the deals don’t exist here as they do in the US, so the same money that you can make in the US doesn’t always exist here. Furthermore, you can buy 2-3 properties in the US vs. 1 property in Canada.
This article speaks about investing as a Canadian but the same rules apply for any foreign investor!
Not knowing much about wholesaling, I dove into researching different companies in the US and also spoke to various wholesalers, who I am very grateful to for sharing their knowledge and experiences.