The Wealth Building Guy

I was talking with a client of mine recently who is looking to invest some of her equity into the US Real Estate market.

This begs two questions:

1) Why would a Canadian invest in American Real Estate?

2) How can a Canadian start investing in American Real Estate?

Lets look at the first question:

The glaring answer is the strength of the Canadian dollar relative to the US dollar. The Loonie has been flirting with $1.10 recently, and as of this morning sits just slightly above par with the US dollar (so $1 Canadian is worth $1.0093 USD). The graph on our right shows a 5 year rise of the Canadian Loonie relative to the US greenback.

Many people, myself included, don’t think that in long term the Loonie is worth more than the US dollar. If you buy into that notion, there is an opportunity to acquire US real estate at a nice discount.

The second factor working in your favour is the ’slump’ some US markets seem to be in right now. Some markets have seen prices recede from where they were a few years ago, and if you think that real estate is a perpetual Bull market (as I do), then this represents another opportunity.

An example:

If you bought a condo in Phoenix for $200,000 in 2005, it would cost you approximately $250,000 CAD (using a Canadian dollar worth $0.80 US). That same condo today is on the market in Phoenix at $180,000, which in today’s Canadian dollars will cost you . . . . . $180,000.

You have the chance to buy cheaper property with a strengthened dollar - a perfect storm in some people’s eyes.

Now, the first question is just theory, until you have a team in place on the ground that can help you buy real estate in a foreign country. Luckily for you, I happen to know some great professionals down south in the US that can help you build your wealth.

For starters, you’ll need an American mortgage broker to lend you some $$, and I happen to know a great one. Then, you’ll need to find some investment real estate professionals who specialize in this sort of thing - again, whom I happen to know.

When you’re buying real estate in a different province or country, you’re a “property owner” not a “landlord,” so you’ll need a property management firm you can rely on to take care of the property and the tenants.

If this sounds like a lot of work, that’s because it is!

Let me plug you into my network so you don’t have to spend costly time recreating the wheel through trial and error! You can profit from investing in American real estate, but unless you have a solid team on the ground, it may be more headache than profit.

Call or email me today to find out how you can start investing in US Real Estate with a team of professionals on both sides of the border.

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Kitchener Waterloo’s Favourite Real Estate Agent (Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 - 2008) wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from across Ontario, Canada, and North America helping them build wealth through smart real estate investments.

Benjamin is hosting a FREE Millionaire Real Estate Investor workshop December 6th, 2007 from 7-8:30PM. Registration is free in advance. $5 at the door. Call or email Benjamin Bach today to register, and learn how you can start your Real Estate Investment portfolio.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying or selling a rental, income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447