May 11
28

Canadians Investing in Florida Real Estate

26 Comments

A recent Financial Post article declared that 1 in 5 Canadians was looking at US real estate. I find that number rather outrageous but the point was very clear to us: Canadians are heading to the US in search of bargain bungalows and other real estate deals.

Every week – almost without exception – I get an email from somebody in the US wanting to reach out to Canadian investors through our blog and our newsletter. They’ve realized that nobody local is buying property so they are going North where there’s money and interest in their local property. My concern with most of the solicitations we receive is the lack of interest in helping Canadians make a good decision for them. They just want to capitalize on the frenzy. Their primary objective is to sell deals. And I worry that many of these people are getting the attention of Canadians hungry for US real estate in general – and selling them on their crummy deal in some crime ridden hood in a city that is full of unemployed people who won’t see work for years to come.

So, we got together with our friends and co-authors of Fire Sale (a book they wrote with another fabulous fellow Philip McKernan) Jim Sheils and Brian Scrone and got some sound and solid advice from two guys on the ground in Florida, doing 5 or 6 deals a month that cash flow and make their investors good solid returns. In these two videos Jim and Brian share some critical secrets and strategies with us for Canadians looking to buy in the US. And, frankly, their advice applies to investors internationally.

5 Key Fundamentals to Look for in Any Market You Invest In

Brian brought up an important point with regards to Florida … not all cities in Florida are created equally. When you’re looking at investing in Florida real estate make sure your location has the market fundamentals that will ensure you have cash flow and stability for the future!

What is the Biggest Risk Canadians Face Investing in the US?

Jim answers the question about the biggest risk you face as a Canadian looking to invest in the US and then he dives into what he feels would be the most successful strategy you can use to enter the real estate market in Florida successfully. He also talks about a lot of the scary deals that Canadians are doing in the US. Make sure you’re getting educated, putting together a solid team, and you’re sticking to the fundamentals.

Get into the right market with the right people!

Great advice from Jim & Brian. Thanks guys!

After nearly two years of getting to know them and their business model, we have decided to do something we’ve never done before. If you’re interested in checking out one of their deals, we have set up a ‘deal of the week’ email for you. Each week Jim & Brian will email you one of their deals. You can learn more about what they are doing and if you’re interested in one of their deals you’ll be able to contact them to learn more.

SIGN UP FOR THEIR DEAL OF THE WEEK.

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Posted in Buying Real Estate in the US by Rev N You 26 Comments

26 Responses to "Canadians Investing in Florida Real Estate"

  • Dave Peniuk says:
    May 28, 2011 at 3:25 pm

    It’s AMAZING to me that their investing strategies are almost identical to ours! Funny how that works. Julie and I are so pumped to introduce Jim and Brian to our Cdn readers that are considering investing in the US. Get EDUCATED people before making such a large investment cross-border…AND, make sure you learn from people that have been doing WHAT you want to do and have considerable experience….not just a Realtor that wants to sell you a deal. Nuff said!

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  • Wade Graham says:
    May 28, 2011 at 3:51 pm

    This is a fabulous service you guys are providing Canadians! I read that stat and I almost fell over. It think I saw a post that said many of those “investments” are their first foray into real estate…YIKES

    I make my possition on Canadians buy US real estate quite clear… It has too many risks for me that I can’t control. But having said that the day I do invest in the US it will be with experts like Jim and Brian. I have been to Florida and checked exactly what they are doing and these guys are at the top of the game!

    Anyone who is interested in investing in the US ABSOLUTELY HAS TO
    CHECK THIS PRESENTATION OUT! Too many scam artists out there. Education is key!

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  • Dave Peniuk says:
    May 28, 2011 at 4:21 pm

    Thanks for your comment Wade. Julie and I feel the same way, if we were buying in the US it would be with Jim and Brian or at the very least we would seek help from them. There are WAY too many “fly by night” companies in the US preying on excited Canadians (this is the same in the Real Estate Education space too, I am afraid) who just read the headlines – BARGAIN BUYS in the US. We are drawn to Jim and Brian and what they do because:

    1 – They are ACTIVE investors (they didn’t invest 10 years ago and quit, they are in the trenches today and have been for 12 years!)

    2 – They focus on the FUNDAMENTALS (not on the fact that “prices have dropped 50%, therefore it’s a deal” as most of these Scam-like companies are marketing)

    3 – They focus on Buy and Hold and look for a 5 year (or longer) hold. Again, this reiterates they are not “flippers” or “wholesalers” trying to make a quick buck. Not that there is anything wrong with that, just that it’s a MUCH RISKIER strategy in a market that continues to stay flat (and even depreciate in many areas).

    4 – They have a MASSIVE passion for helping others, including educating us Canadians how to invest in the U.S., but also they have a program where they get parents and their kids together to teach financial education AND surfing! How cool, fun, and informative is that?!?

    Nuff said!

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    Julie Broad Reply:
    May 30th, 2011 at 4:13 pm

    Great summary Dave!! :)
    Julie Broad´s last [type] ..Canadians Investing in Florida Real Estate

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  • Rick says:
    May 28, 2011 at 5:20 pm

    Great job on both the video clips. I can’t agree more with knowing your market, having a great team on the ground. Knowing that the people you are dealing with have a great track record.

    In other words it is not their first rodeo.

    Great job Jim and Brian, Julie and Dave.
    Rick

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    Julie Broad Reply:
    May 30th, 2011 at 4:24 pm

    Thank you!!! And no, it’s certainly not their first rodeo!! haha!!
    Julie Broad´s last [type] ..Canadians Investing in Florida Real Estate

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  • Keith Mace says:
    May 29, 2011 at 12:46 am

    Great information and something that I need to take in to account. I’m wondering how to do the market research that Brian talked about AND how to implement those 5 Key Fundamentals. Do you have any suggestions?
    Then Jim talked about putting together the right team. How do you do that?

    [Reply]

    Julie Broad Reply:
    May 30th, 2011 at 4:16 pm

    Hey Keith -
    Those are pretty hefty questions. Market research is something I personally feel strongly about being on the ground to do. You can do quite a bit online to check into things like population growth, job growth, income levels, rental rates, and vacancies but then you really have to get out there and get your feet on the ground. Market research to me is all about making sure the area has great economic fundamentals and then meeting people in the city offices to understand their stance and position on growing the economy in the area. I also like to walk around an area and get a sense of who lives there, where they work and what they do for fun. There’s a lot to this, obviously, and it’s hard to do from a distance which is why a team is so critical.

    The team is also difficult to form from a distance which is why we are introducing folks to Jim & Brian. They are on the ground, have done all the research and built the team. By working with them you can skip a lot of the heavy lifting.

    It’s pretty tough to answer your questions in a short paragraph or two but hope that helps a little bit. I’ll mention your question to Jim & Brian and see if they will post a comment or two as well. Thanks & best wishes with your investments!!

    Julie
    Julie Broad´s last [type] ..Canadians Investing in Florida Real Estate

    [Reply]

    Jim Sheils Reply:
    June 4th, 2011 at 6:08 pm

    Hi Keith!
    Thanks for the comments. If you go to http://www.usforeclosuretv.com you can find a special report I did for how to build a RE team (** the key is clear expectations)
    Also there is a fantastic blog about the 7 questions you need to ask when picking a property manager. Property management is one of the most important aspects to your deal’s success.It doesn’t matter if you get a house at 10 cents on the dollar, if you have no good management you can still lose $!

    Julie gave a good explanation of finding the 5 drivers. I agree that it is very smart to visit a market first and interview a ton of RE people in the market. You will get a feel for what is really going on

    [Reply]

  • Joey Ragona says:
    May 29, 2011 at 2:48 am

    Thanks Julie, Dave, Brian and Jim, I am also distributing a newsletter regarding Canadians getting ‘hosed’ on property deals and this information is fantastic as a backup. I’m very happy to know you all personally and share your thoughts regarding both Canadian and US markets.

    I trust the more we all bind together to educate, the better it will be for everyone. Thanks again and I’ll see you sooner rather than later.

    [Reply]

    Julie Broad Reply:
    May 30th, 2011 at 4:23 pm

    That’s great Joey!! We had dinner with a couple who recently attended a local event where they brought in a US realtor/investor type expert who had deals for sale. His special offer was on homes in Michigan. People were lined up at the back of the room waving their Visa’s to pick up a $30,000 home in Detroit sight unseen. We were HORRIFIED!!! Our friends couldn’t believe people would buy properties that way but the pitch had been compelling they said. Even if someone wants to work with Jim & Brian to buy property in Florida – and I recommend them fully for folks who want a simpler way to make solid US investments – I would still recommend a trip or two to Florida to see the areas and the homes Jim and Brian are investing in before someone invests a penny into one of their deals. I think seeing where your money is going is critical. I can just imagine what those $30,000 houses look like in Detroit!!!

    I look forward to your newsletter!
    Julie Broad´s last [type] ..Canadians Investing in Florida Real Estate

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  • Sundaybell says:
    May 30, 2011 at 7:32 pm

    Read your article and it’s true, a lot of Canadians are looking south of the border for good real estate investments. One of the issues that they have are that they don’t know the difference between a buyer’s agent and a seller’s agent: or someone that represents both sides.
    One consideration is to align yourselves with a buyer’s agent: someone who is working simply in the best interest of the buyer: not both sides of the deal.

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    Jim Sheils Reply:
    June 4th, 2011 at 6:11 pm

    Good advice Sundaybell

    I would also encourage people to find a realtor who work with bank REOs(bank owned homes0, these are the best deals available in our area and the banks are selling at a discount. Find an agent that works with REOs, a lot of time a handful of realtors will handle most of the REOs in an area, try to build a relationship with them
    Jim Sheils´s last [type] ..Hello world!

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  • mobilehomegurl says:
    June 2, 2011 at 1:54 pm

    Good topic, Julie!

    It’s funny as I recently watched a documentary about the 1929 stock market crash. And, I learned the Marx Brothers were doing just this in that era.

    Basically, they were doing commercials and holding talks in FL about the boom in buying land there. Secretly, they had stakes in the land and would drive up the price creating superficial values. People all wanted a piece (due to the greed factor of course) and then the Marx brothers would sell once the price was driven up enough – making out big time. (Hmmm, sounds familiar, eh? I guess history does repeat itself!!)

    It’s interesting as there’s a lot of underground activity which is not just limited to real estate. I’ve heard conversations between folks who boast about this exact selling frenzy to out of country and out of state investors.

    Though it is possible to be successful in out of the area investing, I really do believe in the advantage of being local.

    Thanks for another informative video! :)

    [Reply]

    Jim Sheils Reply:
    June 4th, 2011 at 6:45 pm

    Great post!
    and shame on the Marx brothers. We have seen scams very similar today in the housing market, not just in Florida but all over.
    For example Brian and I were approached by 2 of the biggest Real Estate “Gurus” in the US about doing turn key rentals for their student/clients here in Jacksonville. However they didn’t like the fact that we did 100K homes and only did about 5-6 a month. They asked us to go into lower priced homes in Jacksonville (20k to 30K) and they wanted us to do at least 20 homes every month. When we explained that doing properties in this lower price point and doing such a huge volume every month would sacrifice quality and put their student/clients into risky situations. But guess waht? they did not seemed to care one bit. They just wanted more volume and a cheaper priced home so that more people could afford to buy one. (obviously more people have $30K to buy a home than those who have a $100K) More house at cheaper prices would allow the Guru to make more money off his students than our model. It was best for the Guru but the worst for the student looking to them to guide them to fwealth.
    When we realized this greed was their only motive and they had no concern for the long term well being of the student/client, we told them to go to hell. I’ve got plenty of time to make money but once you go that route your integrity is gone forever and there is no price that can put on that
    Brian and I have always realized that we could make more money with our model by going into rough neighborhoods with cheaper price points but our clients would be left holding a ticking time bomb.

    There are good people out there to work with so dont lose hope. Just do your due diligence and ask questions. ANd the deals are out there and can earn people an incredible cash flow today and plants seeds in great markets for growth. ( Yes I said the “G” word, I believe appreciation will return with the next few years)
    People who are wiling to leave their backyard can make more money if their market fundamentals are lacking. If I never left my backyard I’d be trying to force the #s to work in my Hometown in North Jersey that is extremely overpriced with no cash flow.

    PS
    stay away from land, “it eats 3 meals a day” with no cash flow. Buy homes in good areas with solid fundamentals that cash flow today
    Jim Sheils´s last [type] ..Hello world!

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    Jim Sheils Reply:
    June 4th, 2011 at 6:51 pm

    ps
    sorry for any typos, I’m on the beach with my laptop today and it’s tough to see in the sun :)
    Jim Sheils´s last [type] ..Hello world!

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    Julie Broad Reply:
    June 7th, 2011 at 10:41 pm

    It’s way to scary how many people have stories of greed driven decisions. The good news is that I believe firmly that the world is becoming more and more transparent and I hope it will become more and more difficult for people like the 20k house guru to make money.

    Poor you Jimmy … working on the beach in the sun … there must be a Mac App for that – to make the screen easier to read – for us hard working beach bums.

    :) Thanks for stopping by and answering people’s questions. I really appreciate it. Just another reason why we think you and Brian are the best.
    Julie Broad´s last [type] ..Smacked in the Face by Possibility

  • Dave Peniuk says:
    June 6, 2011 at 2:45 pm

    Great suggestions/tips/advice Jim! Thanks for sharing your thoughts and experience.

    We look forward to seeing you in Toronto when you pass along more of this great insight to Canadians looking to invest in the US!

    [Reply]

  • Can You Use Cap Rates to Analyze Cash Flow on a House? – Life as Real Estate Investors | Julie Broad | Dave Peniuk | Rev N You says:
    June 17, 2011 at 9:57 am

    [...] off to Toronto for the next few days. We’re joining our friends Jim Sheils and Brian Scrone for their session for investors interested in buying in Jacksonville, Florida on Saturday and on [...]

  • Dale Walters says:
    June 19, 2011 at 9:54 pm

    There is a book titled, Buying Real Estate in the US – The Concise Guide for Canadians, that answers questions about how to title your property, the tax consequenses, and other information you should know before buying property in the US. Go to http://www.buyingrealestateintheus.ca

    [Reply]

  • Satori says:
    December 18, 2011 at 8:28 pm

    I was wondering if I bought a piece of land in Ocala for a long term investment, what would be the repercussions being a Canadian other than paying the property taxes. How would it affect my income taxes here? Would I have any other fees other than the property taxes which should not be much on just the land.
    Thanks for any feedback. The last post here was in June so hopefully you get this. I have never done this before, so fingers crossed. :)

    [Reply]

    Dale Walters Reply:
    December 19th, 2011 at 2:48 am

    Satori,

    You are correct, as long as you hold on to the property there are no additional taxes. However, when you sell the land there will be withholding of 10% on the gross sales proceeds. Whatever tax you pay in the US can be used as a credit on your Canadian tax return.

    [Reply]

    Satori Reply:
    December 19th, 2011 at 11:59 pm

    Thanks a million Dale! This helps a lot.
    We can’t claim our own Property Taxes here but I will certainly look into that and see what I can find!
    Ocala (Marion County) looks and sounds nice, so I just need to look into it some more to make sure that this would be a good move to make. :)

    [Reply]

  • Dale Walters says:
    December 20, 2011 at 12:16 am

    Satori:

    Even though you cannot deduct property taxes on your principal residence, you will be able to deduct those expenses on your rental statement. Also, you should be able to deduct the cost of visting your investment once a year.

    If you borrow money, you will be able to deduct the interest as investment interest.

    Dale

    [Reply]

  • Building Your US Real Estate Team | Life as Real Estate Investors says:
    February 23, 2012 at 9:16 am

    [...] For over twelve months the single most read blog post on this site – month in and month out – has been a post I did awhile ago on investing in the US for Canadians. [...]

  • Eddie Hodges says:
    March 2, 2012 at 4:53 am

    I’m interested in locating investors which have an interest in purchasing rental properties in Memphis, Tennessee. Every property management company selected and considered are reputable and highly-efficient. The key components for selecting the right company is tenure, integrity as well as business & personal ratings. I am a native Memphian that is very familiar with the most desirable areas to buy rental properties. In addition to, I have done extensive research of the companies and individual owners in order to select the most qualified property managers which take pride in every project, value integrity over profits as well as give personalized service to their tenants. These components create win-win-win circumstances for the investor, tenant and property management company. Please have someone to contact me at the contact information above. I look forward to speaking with you soon! Have a great day!

    [Reply]

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