- Joined
- Jul 14, 2009
- Messages
- 28
I have been asked lately what I think is the biggest mistake a Canadian makes when coming to America to purchase real estate. Here are some musings from a fellow Canadian now living in Arizona....
By the way, I am travelling to Calgary to attend the Calgary All-Day Power Workshop on purchasing US properties . I am really looking forward to hearing this information and being in cool Calgary. It is very hot in Phoenix!
What a lot of Canadians don`t realize is that America is a foreign country with different rules, taxations and procedures. It isn`t hard to figure out -- but it is different. In general, our laws protect our citizens. In America this is not the case.
Remember Don Campbell`s mantra: Research, Research, Research. And then run this mantra into the ground! This is the biggest and most costly mistake an investor will make. Do your homework!
A year ago (May 2010) I made the move from Vancouver, BC to Phoenix, Arizona because I believe that this real estate market will provide me with the best buying opportunity of my life. I am now certain of this. However, there is a large caveat: buyer beware.
cal-align: baseline; text-decoration: none;">I spent the last year meeting with tax accountants, Realtors, immigration lawyers, home builders and tax lawyers so that I could assemble my dream team. I also spend around 15 hours a month in classrooms studying subjects such as bankruptcy, short sales and foreclosures so I can figure out how to make money in this system. Today I am off for a 3 hour bankruptcy course.
A hard concept for me to wrap my head around was the way everyone sues each other here. What this means to you - besides an unwanted law suit- is that Realtors will not disclose even the simplest information because they can be sued at a later date. As I sit in the classrooms teachers are drilling this into the Realtors! Information our Realtors would gladly pass along in Canada cannot be divulged here. Remember this and do your homework! Also, it takes 9 days of class time to be a Realtor in Arizona. This is very different than our system and creates a different level of knowledge.
After a year, I now have an E2 Visa and have assembled a formidable team. I am busy buying properties. I have bought properties through the foreclosure auction, short sales, bankruptcy trustee, Real Estate Owned (REO) and the LeGrand system.
Current projects include:
A block of 40 rental homes on which I arranged financing. ROI of 11%. The cost is around $70,000 per home and gross revenue is $34,000.
A land assembly of 3.5 acres backing onto a golf course in an exclusive area. Owner is carrying the financing. There was a 26 home development slated before the crash. The current homes on the property cover the financing costs.
I buy around 4 homes a month for fix and flip. My goal is to get to 8 homes in the next few months. As the building market is so depressed I was able to bring in an amazing builder to run this division for my company. Started one project yesterday: 8 people on site, big bin, walls removed and new framing is starting today! In three weeks they will have rearranged walls, renovate three new bathrooms, new kitchen, new tile and carpet, granite countertops throughout and built a beautiful front court yard. How much: $25,000. I can`t believe the prices here! These homes sell quickly as there is a lot of product on the market which is trashed and the basic homeowner just wants to move in.
I have a couple of LeGrand deals this month. I am going to close on one later today and I have another one in the works. These take more time but as the end price is zero they are worth the work!
In truth, I only really got going a couple of months ago. The first year was just assembling the people and knowledge I needed to now be able to successfully do the above projects. I know I am repeating myself....but think Don`s mantra! The knowledge I got from the ACRE program is very important and their system keeps me organized.
If you want to learn what I learned in the last year about American laws, regulations, financing, escrow; look at my blog. It`s free and is a good starting place. I will be back to talk about foreclosures. This is a big black hole.
By the way, I am travelling to Calgary to attend the Calgary All-Day Power Workshop on purchasing US properties . I am really looking forward to hearing this information and being in cool Calgary. It is very hot in Phoenix!
What a lot of Canadians don`t realize is that America is a foreign country with different rules, taxations and procedures. It isn`t hard to figure out -- but it is different. In general, our laws protect our citizens. In America this is not the case.
Remember Don Campbell`s mantra: Research, Research, Research. And then run this mantra into the ground! This is the biggest and most costly mistake an investor will make. Do your homework!
A year ago (May 2010) I made the move from Vancouver, BC to Phoenix, Arizona because I believe that this real estate market will provide me with the best buying opportunity of my life. I am now certain of this. However, there is a large caveat: buyer beware.
cal-align: baseline; text-decoration: none;">I spent the last year meeting with tax accountants, Realtors, immigration lawyers, home builders and tax lawyers so that I could assemble my dream team. I also spend around 15 hours a month in classrooms studying subjects such as bankruptcy, short sales and foreclosures so I can figure out how to make money in this system. Today I am off for a 3 hour bankruptcy course.
A hard concept for me to wrap my head around was the way everyone sues each other here. What this means to you - besides an unwanted law suit- is that Realtors will not disclose even the simplest information because they can be sued at a later date. As I sit in the classrooms teachers are drilling this into the Realtors! Information our Realtors would gladly pass along in Canada cannot be divulged here. Remember this and do your homework! Also, it takes 9 days of class time to be a Realtor in Arizona. This is very different than our system and creates a different level of knowledge.
After a year, I now have an E2 Visa and have assembled a formidable team. I am busy buying properties. I have bought properties through the foreclosure auction, short sales, bankruptcy trustee, Real Estate Owned (REO) and the LeGrand system.
Current projects include:
A block of 40 rental homes on which I arranged financing. ROI of 11%. The cost is around $70,000 per home and gross revenue is $34,000.
A land assembly of 3.5 acres backing onto a golf course in an exclusive area. Owner is carrying the financing. There was a 26 home development slated before the crash. The current homes on the property cover the financing costs.
I buy around 4 homes a month for fix and flip. My goal is to get to 8 homes in the next few months. As the building market is so depressed I was able to bring in an amazing builder to run this division for my company. Started one project yesterday: 8 people on site, big bin, walls removed and new framing is starting today! In three weeks they will have rearranged walls, renovate three new bathrooms, new kitchen, new tile and carpet, granite countertops throughout and built a beautiful front court yard. How much: $25,000. I can`t believe the prices here! These homes sell quickly as there is a lot of product on the market which is trashed and the basic homeowner just wants to move in.
I have a couple of LeGrand deals this month. I am going to close on one later today and I have another one in the works. These take more time but as the end price is zero they are worth the work!
In truth, I only really got going a couple of months ago. The first year was just assembling the people and knowledge I needed to now be able to successfully do the above projects. I know I am repeating myself....but think Don`s mantra! The knowledge I got from the ACRE program is very important and their system keeps me organized.
If you want to learn what I learned in the last year about American laws, regulations, financing, escrow; look at my blog. It`s free and is a good starting place. I will be back to talk about foreclosures. This is a big black hole.