Stuck after buying a few properties in Canada? Your bank won’t lend you any more money, even though you’ve proven yourself as an investor. Sound familiar?
This is exactly what pushed Glenn Sutherland to start investing in US real estate. And it might be the solution you’re looking for too.
Why Canadian Investors Hit a Wall
Here’s what happens to most Canadian real estate investors: You buy your first few properties. Everything goes great. Then suddenly, your bank cuts you off.
Glenn experienced this firsthand. After building a portfolio of four to six properties with traditional Canadian banks, he hit a brick wall. The banks didn’t suggest alternatives or creative solutions. They just said no.
But the problems didn’t stop at financing. Managing properties that were 10-20 hours away by car became a nightmare. Glenn found himself playing every role: landlord, property manager, contractor, and everything in between.
He admits property management wasn’t his strength. He trusted tenants too much. When they promised to pay rent and didn’t, he ended up spending countless hours at the Ontario Landlord and Tenant Board.
The US market offered something different: freedom from hands-on management and access to financing that Canadian banks wouldn’t provide.
Book Your Strategy CallWhat NOT to Do (Glenn’s First Mistake)
Glenn is refreshingly honest about his first US purchase. He bought a turnkey property in Alabama with cash because he didn’t understand US financing at the time.
Here’s the problem with that approach: everyone has a limited amount of money. If you spend all your cash buying properties at market value, where does the money for property number two come from?
Glenn got stuck. He’d maxed out his line of credit and had no clear path forward. This taught him a critical lesson: appreciation alone is not an exit strategy.
The Right Way to Invest Today
The current market offers opportunities that weren’t available during crazier times. Properties sit longer. Sellers are more open to creative deals. Here’s what works:
- Buy properties that need work (motivated sellers are more flexible)
- Use seller financing when possible
- Take over existing mortgages (called “subject-to” deals)
- Always create value through renovations or buying below market
- Never buy turnkey properties at market value with cash
The key is having an exit strategy before you buy. How will you refinance? What makes that refinance work? Answer these questions first.
The Seller Credit Strategy That Saves Thousands
Here’s a powerful tool that works differently in the US than in Canada.
In Canada, when sellers offer credits, lenders typically reduce your loan by the same amount. You don’t get much benefit.
In the US, lenders will finance the full purchase price even with seller credits included. This means you can use those credits to:
- Buy down your interest rate permanently
- Cover closing costs
- Improve your monthly cash flow
The best approach? Negotiate a lower purchase price AND get seller credits. You can save thousands of dollars using this strategy alone.
Should You Buy Down Your Interest Rate?
Paying upfront fees to get a lower interest rate can make sense, but only if the numbers work.
You need to calculate your break-even point. How many years must you hold the property to recoup those upfront fees through monthly savings?
If you’re flipping the property in two years but the break-even is five years, paying the higher rate makes more sense. If you’re holding long-term and break-even happens quickly, the buy-down is smart.
Here’s something interesting: US lenders regularly sell mortgage debt. They bundle mortgages together and sell them as packages, sometimes just months after you close.
This means your mortgage statement might show a different company collecting payments each year. Don’t worry – your terms, interest rate, and payment structure never change. Only the entity collecting payments changes.
Personal vs Corporate Ownership: This Decision Matters
This might be the most important decision you make as a Canadian investing in the US.
Some Canadian banks will lend you money for US properties. Sounds convenient, right? But there are serious problems with this approach.
The Personal Ownership Trap
When you own US properties personally, you face several issues:
- Banks cap you at just three properties (sometimes less)
- You must qualify based on all your Canadian properties too
- Your personal assets in Canada are at risk if someone sues you in the US
That last point is huge. The US is much more litigious than Canada. If something goes wrong with a property you own personally, plaintiffs can go after your assets in both countries.
One bad situation could jeopardize your entire portfolio.
Why Corporate Ownership Wins
When you own properties through proper corporate structures:
- Liability stays isolated to the corporate entity
- Your personal Canadian assets stay protected
- Legal action can’t reach beyond the corporate assets
- Tax planning becomes more effective
The tax implications are complex. FIRPTA, FAPI, and other regulations can create double taxation nightmares if you’re not structured properly. Corporate ownership, set up correctly, helps you avoid these problems.
Creative Strategies That Work in the US
The US market offers acquisition methods that are difficult or impossible to use in Canada.
Subject-To Transactions
You take ownership of the property while the seller’s existing mortgage stays in place. You’re making the payments, but the loan remains in their name. This gives you better terms than you could get with a new mortgage.
Seller Financing
The seller becomes your lender. When a seller mentions they “don’t need the money right away,” that’s your cue. You might buy a property with little or nothing down.
Lease Options
Control properties with the option to purchase later. Lower capital requirements and built-in flexibility.
Contract for Deed
Another seller-as-lender arrangement that creates opportunities when traditional financing doesn’t work.
You won’t use every strategy. But knowing they exist helps you recognize opportunities when sellers or other investors mention situations that fit these models.
Getting the Right Education and Support
Many people offering expensive courses have never actually done what they’re teaching. That’s a problem.
Glenn’s program focuses on complete replication. After completing it, you should be able to do everything he does. No upsells. No hidden levels.
The curriculum covers:
- Where to invest (the US is ten times the size of Canada)
- Setting up proper corporate structures
- Understanding FIRPTA, FAPI, and cross-border tax issues
- All the creative acquisition strategies
- Ongoing deal analysis and support
You also get access to discounted legal rates (about 50% off) through Glenn’s network because of the volume he brings them.
Most importantly, you get someone to review your deals before you make expensive mistakes. Errors in corporate structure could lead to double taxation. Overpaying for a property or missing red flags could cost tens of thousands.
Work With Cross-Border Specialists
Many US mortgage brokers don’t understand foreign national lending. They’ll just turn you away.
Canadian brokers might not understand US options either.
You need someone who operates on both sides of the border. Someone who can structure deals that make sense in both countries and who understands how Canadian and US systems interact.
This eliminates the frustration of forwarding emails between professionals who don’t understand each other’s systems.
Your Next Steps
If you’ve hit your limit with Canadian banks, the US market offers real opportunities. But you need to:
- Get educated before you invest
- Set up proper corporate structures
- Learn creative acquisition strategies
- Work with people who understand both countries
- Always have an exit strategy
- Use seller credits and buy-downs when they make sense
- Calculate everything before you commit
The current market is actually better for creative deals than the crazy bidding wars of recent years. Sellers are more flexible. Properties sit longer. You have time for proper due diligence.
Don’t make Glenn’s mistake of buying turnkey properties at market value with cash. Create value. Use other people’s money. Protect yourself with proper structures.
The path from maxed-out Canadian investor to successful cross-border real estate investor exists. But it requires knowledge, proper structure, and guidance from people who’ve actually done it.
Book Your Strategy CallFrequently Asked Questions
Yes, Canadians can get financing for US properties through several routes. Some Canadian banks offer US property loans, but they limit you to just a few properties and require personal ownership. US lenders also work with foreign nationals through corporate structures, which typically offers better protection and more flexibility for building a larger portfolio.
Corporate ownership is usually the better choice. The US is more litigious than Canada, and personal ownership puts all your Canadian assets at risk if someone sues you. Corporate structures isolate liability and provide better tax treatment, though they require proper setup to comply with both US and Canadian regulations.
Seller credits are amounts the seller agrees to pay toward your closing costs or rate buy-downs. Unlike in Canada where lenders reduce your loan amount by the credit, US lenders finance the full purchase price even with credits. You can use these credits to permanently lower your interest rate or cover closing costs, saving thousands of dollars.
A subject-to transaction means you take ownership of a property while the seller’s existing mortgage stays in place. You make the mortgage payments, but the loan remains in the seller’s name. This strategy lets you acquire properties with better financing terms than you could get with a new mortgage, and it’s much easier to do in the US than in Canada.
US lenders regularly sell mortgage debt to other companies. They bundle multiple mortgages together and sell them as packages, sometimes just months after you close. This means the company collecting your payments might change annually, but your actual loan terms, interest rate, and payment amount never change – only who collects the payment.
It depends on your holding period. Calculate the break-even point – how long until your monthly savings equal the upfront cost. If you’re selling before break-even, skip the buy-down. If you’re holding long-term and break-even happens relatively quickly, buying down the rate improves your cash flow for years to come.
The US is ten times the size of Canada with countless markets to choose from. The right market depends on your strategy, budget, and goals. Focus on areas with strong fundamentals like job growth, population growth, and landlord-friendly laws. Working with someone who knows multiple US markets helps you avoid costly location mistakes.
FIRPTA (Foreign Investment in Real Property Tax Act) is a US tax law affecting how foreign investors are taxed when selling US real estate. Without proper corporate structure and tax planning, you could face double taxation from both the US and Canada. Proper setup from the beginning helps you avoid these complications and keeps more money in your pocket.
