Building a Real Estate Empire in the US from Canada: A Step-By-Step Guide

I recently hosted a webinar titled “Step-by-Step Guide to Building Your Real Estate Empire in the US from Canada.” Joined by industry experts Kelly from MoneyCorp and Erwin from Share (SFR), we provided actionable insights for Canadians looking to expand into the US market. Drawing from our collective experience—spanning cross-border financing, currency exchange, and hands-off property management—this session demystified the process and highlighted opportunities that simply aren’t available domestically.

If you’re frustrated by Canada’s high entry costs, restrictive lending, and tenant protections, the US offers compelling alternatives: robust cash flow, scalable financing, and landlord-friendly states. In this article, I’ll recap the key takeaways, including real-world examples and audience questions. Whether you’re a first-time investor or scaling an existing portfolio, this blueprint can help you get started efficiently.

Financing Your US Investment: Accessible and Flexible Options

At LendCity, we specialize in US and Canadian mortgages for residential, commercial, land, and construction deals. As a dual-citizen broker, I coordinate transactions across borders to streamline your experience. A common question we hear is, “How challenging is US financing for Canadians?” The answer: It’s straightforward and far more accommodating than in Canada.

Key requirements and benefits include:

• No Income Verification or Credit Score Needed Initially: Approvals are based on the property’s cash flow. While a US credit score (built over time) can lower rates by 0.25-0.5%, it’s not required to begin.
• Down Payments and Purchase Limits: Start with 25% down. There’s no cap on rental properties, unlike Canada’s debt ratio restrictions—lenders support unlimited scaling.
• Application Essentials: Provide your passport (to confirm citizenship and avoid sanctions lists), entity documents (LLCs are used in 95% of cases for tax efficiency), and two months of bank statements for down payment verification. We scrutinize large deposits for source-of-funds compliance, though select lenders offer flexibility.
• Closing Costs: Budget 4% of the purchase price, covering title services (equivalent to Canadian lawyers), broker fees (which can be rolled into the rate or paid upfront—recommended for long-term holds), underwriting, and origination. Fees are proportionally lower for larger loans ($1M+).
• Current Rates and Structures: Expect 6-7.5%, with sub-6% available for larger multifamily properties via buydowns. Opt for interest-only payments or 40-year amortizations to optimize cash flow. A major advantage: Loans become penalty-free after five years, unlike Canada’s fixed terms.

Our process is efficient: Schedule a complimentary strategy call via the link below to discuss your goals. Submit property details for personalized leverage and rate quotes—property-specific factors, like flood zones, can influence terms. Next, establish a US entity and bank account, partner with a trusted realtor (such as Share), and close seamlessly.

As investors ourselves, our team processes everything in-house to minimize fees and maximize options. We reward loyalty with reduced costs as your portfolio grows, and unlike many US brokers, we exclusively partner with foreign-buyer-friendly lenders.

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Navigating Currency Exchange: Maximize Value with Expert Guidance

Currency fluctuations can erode profits, but Kelly from MoneyCorp—a global leader with $90 billion traded annually across 120 pairs—showed how to sidestep bank pitfalls. With offices in 11 countries and decades of regulatory compliance, MoneyCorp provides institutional-grade service tailored to real estate transactions.

Why choose a specialist over your bank?

• Superior Exchange Rates: Banks add 2-5% margins to the interbank rate; MoneyCorp operates at under 1%. For a $400,000 US property, this could save $14,000 CAD.
• Fee Elimination: No international transfer charges. Use their Canadian accounts for domestic wires, then seamless USD delivery to title companies or your US bank.
• Strategic Timing: Dedicated specialists monitor markets to target your ideal rate, using forward contracts (up to two years, 10% deposit) or pre-purchasing USD to hold. Repatriate rental income efficiently—starting at just $250 per transfer.

Account setup requires only ID and address proof. For Europe-bound investors, similar savings apply (e.g., CAD to EUR). Visit moneycorp.com for market updates and property guides. Contact Kelly directly for a consultation.

Hands-Off Ownership: Streamlining Acquisition and Management with Share

Irwin from Share (SFR) demonstrated how technology and expertise can make US investing as simple as stock ownership. SFR’s “done-for-you” platform handles everything remotely, ideal for busy Canadians. Backed by a team with billions in managed assets—including CEO Andrew’s $10,000 monthly cash flow from 20 unseen properties—SFR focuses on single-family rentals (SFRs) for superior tenant stability and liquidity.

Why SFRs? They attract middle-income families seeking suburban quality, yielding 9-14% in landlord-friendly red states (Texas, Arizona, Carolinas, Georgia, Missouri, Ohio). US markets dwarf Canada’s: The $2.4 trillion SFR sector exceeds our entire economy, drawing institutional capital like CPP’s $700 million Atlanta commitment.

DIY investing involves lengthy steps and risks; SFR streamlines:

• Investor Profiling: Define your “buy box” for cash flow, appreciation, or strategies like subject-to (assuming sellers’ low-rate mortgages with them as tenants).
• Off-Market Sourcing: 90% of deals from wholesalers and builders; AI scrapes listings for matches.
• Full-Service Execution: Entity/tax setup (via SHR’s cross-border accountant or LendCity), inspections, and closings—all coordinated.
• Ongoing Management: Institutional property managers (3,000+ homes each) via SHR’s portal. Digital bookkeeping included. Fees: $7,500 or 3% acquisition (higher of the two); 4-6% of rent monthly (tiered by portfolio size).

Minimum entry: $80,000-$100,000 USD. Diversify beyond Canada—global advisors agree against single-country concentration.

Illustrative Case Studies:

• Shane (Montreal Investor): Started with $100,000; acquired a $90,000 Memphis SFR (14.5% yield post-$9,000 reno). Refinanced at $157,000 appraisal, extracting $84,000 for a Kansas City property (9% yield), netting $10,000 cash back.
• Derek (Ontario Resident): New-build in Little Rock, AR, for $176,000; rents at $1,425 (10% yield, 6% cap rate).
• Terrace (Toronto Investor): Houston subject-to deal at $244,000; 3.9% assumed rate, $2,200 rent (5.1% cap), $12,000 prepaid.

Explore off-market listings and free resources at sharesfr.com, including a comprehensive US investment guide.

Insights from Audience Questions

Our Q&A addressed practical concerns:

• Multifamily Financing: Available with no unit limits; start under 20 units experience-free. Loan-to-value improves with scale (doubling effect).
• Proof of Funds: Accepts bank statements, investments, lines of credit, or even post-tax RRSPs.
• Cash Flow Optimization: Use interest-only/40-year terms; conservative underwriting ensures viability.
• Refinance Penalties: 5-4-3-2-1% step-down, open after five years; customizable open periods (slight rate premium).
• Pre-Approvals: LendCity provides detailed letters and verbal confirmations for US realtors.
• Canadian Mortgage Impact: Minimal with select lenders; we guide you to compliant options.
• Flips: 75-80% purchase + 100% rehab financing on first deals; terms improve with experience.

For existing portfolios, SHR offers seamless onboarding.

Take the Next Step Toward Your US Portfolio

The US market’s cash flow potential, combined with LendCity’s financing expertise, MoneyCorp’s exchange efficiency, and SHR’s management platform, creates a powerful ecosystem for Canadian investors. As your host and broker, I’m committed to guiding you through every stage—remotely and without the headaches.

Review the full webinar recording via the link sent to attendees, or book a strategy call today. Let’s discuss how to turn these insights into your first (or next) US acquisition. Contact me directly at LendCity for personalized advice.

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Webinar Replay