How To Buy Property In USA As A Canadian
Are you searching for information on How To Buy Property In USA As A Canadian?
This is a smart decision to make because of the simple fact that despite the pandemic in the United States, rental properties, especially multifamily properties, continue to be a very smart investment.
How To Buy Property In USA As A Canadian – Tips To Follow
In this article, I’ll provide you with several tips that you can use for purchasing your first multi-family property in the United States.
Tip #1 – Research Cities
The first thing that you must do before purchasing a multi-family property in the United States is to research and find the right property for buying a multifamily property here.
Research is important because in 2021, we will have more social and economic issues to deal with than ever before and cities that were once hotspots for multifamily investment before the Pandemic are declining, while other cities in the United States are new hotspots for multifamily investors.
During the process of searching for a great city to invest in a multi-family property, your goal should be to find a city that has great public transportation, excellent school districts, shops, stores, things to do and most important of all, the city should have a thriving local jobs Market.
Thankfully, you can do this research online since there are a ton of excellent websites that multifamily investors can use including Bigger Pockets. Just make sure that when investing a city, you’re reading reviews and information written by people who actually live and work in those cities.
Some of the best cities for How To Buy Property In USA As A Canadian include Birmingham, Alabama, Colorado Springs Colorado, Albuquerque New Mexico, Dayton Ohio, Greensboro North Carolina, Memphis Tennessee, and Austin Texas.
Besides the COVID-19 Pandemic, another thing that you should consider before investing in a multi-family property in the United States is to confirm which states have adopted rent control measures.
As of August 2020, both California and Oregon are the only two states right now that have adopted state rent control measures while other states have partial rent control.
Tip #2 – Start Your Search
After finding a city that you would be interested in searching for a multi-family property, the next thing to do is to hire a real estate agent who can help you to find a multi-family property for sale in your target area.
Once you’ve identified a multi-family property that you would be interested in purchasing, the next step is obviously to have that property inspected and do your due diligence to confirm the that it will indeed be a great property for you to add to your Investment portfolio.
Tip #3 – Applying For A Mortgage
Unless you plan on paying cash for a multi-family property in the United States, I’m going to assume that you plan on financing your first multifamily property here.
The good news is that How To Buy Property In USA As A Canadian is not impossible but, you have to be prepared with all of the financial paperwork that a mortgage lender in the United States will require.
You will be expected to provide copies of your passport, international credit report, two years-worth of employment history, tax returns, and your residency history.
Besides these documents, you will also be expected to provide proof of your down payment, Realtor details, and the contract of sale.
In some cases, you may be able to get a mortgage in Canada, for the multifamily property that you plan on buying in the United States, if you get a cross border mortgage with a major institution like RBC or BMO.
With a cross-border mortgage, you can utilize your local credit history in Canada and get the best possible terms for your loan. Many agents in Canada are skilled at setting up cross-border mortgage products so that you could buy a property in the United States with confidence even though you’re technically financing that property with a Canadian mortgage product.
Another important thing to be aware of before purchasing a multi-family property in the United States is that you may also be required to pay additional fees on large value transfers so it’s important to confirm how much money in fees that you will be expected to pay before you commit to a mortgage lender.
Tip #4 – Closing The Deal
Last of all, but most important, once you’ve been approved for financing and had your offer on a multifamily property approved, the last thing that you should do is hire a property management company to professionally manage that multifamily property for you.
Property management is one of the most essential parts of owning a multi-family property in the United States because of the simple fact that it’s almost impossible to adequately manage a property yourself that’s not in the same city or country as you.
When searching for a property management company in the United States, you should pay close attention to the reviews that are left for that company online by their owner clients and tenants.
It’s also important for you to verify if they offer an owner’s portal through their website which will -enable you to view all the documentation related to your property online and make your journey of How To Buy Property In USA As A Canadian easier than you could ever imagine.
Contact Portland Rental Management
At Portland Rental Management, we specialize in property management for Beaverton, Portland and surrounding areas.
If you’re going to be buying investment properties in the PDX area, hiring a property manager is the most effective way to earn passive income and avoid having to manage the property yourself.
To learn more about the property management services that we can offer you, contact us today by calling (503) 447-7735 or click here to connect with us online.
