Tips for Cross-Border Investing | EP105

Transcription:

Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time

Jesse (22s): E

Speaker 1 (24s): Everybody. This is Jennifer galley. You're listening to working capital. I thought today, we'd do a, just ask Jesse. You can always reach out to me directly. If you have any questions related to real estate investing. I did a YouTube video a little while back, and if you're interested in that you can head over to working capital podcast.com. It should be under the video section. It's basically an interview with Chris . Who's a cross border tax specialist, and really wanted to do a conversation about investing from another country.

So if you've ever wanted to buy real estate or interested in buying real estate in a different country, wanting to get into a little bit of something like tips do's and don'ts when it comes to that. Now I'll focus this a little bit more on Canadians investing in the U S but you could think of it as us investing in Canada, or really, you know, investing in a different country altogether. You know, a lot of these will apply to both. I think the key is that there is some sort of relationship between those countries and, you know, if you're investing the country, you're thinking about investing likely if that is what you're thinking, we'll have some sort of relationship just use Canada in the U S because the treaty, the tax treaties that we have are so robust and it makes investing relatively simple, but there still are a few things that people should look out for.

And I did also did a post on Instagram, and this is where it kind of fleshed out some of the, the tips. So we'll start with number one here. I think what's so critical when you're doing this is to figure out what your investing strategy is. And by that, I mean, where you're going to invest, what type of assets you're going to invest and what type of strategy you are going to work with those assets. And what I mean by that is the, where is pretty obvious, which geography are you going to invest in?

If you're investing in the states, are you investing in Florida? Are you investing in California, Texas? The second piece about asset class is, you know, real estate is a diverse industry. There are all kinds of different asset classes. You have everything from self storage to retail, to industrial, multi res, and you know, everything else in between hotels. So getting clear on what type of investment from an asset class perspective is really important because it'll set up a lot of the basis of how you're going to go and where you're going to invest.

Now, the last one is the real estate strategy itself. Now this is so important because oftentimes the strategy that you're going to have. So whether that is doing flips, whether that is looking at burn investments, where you're doing a rehab, a refinancing, and renting out a lot, a lot of times, those strategies will dictate where you should be investing geographically. So for example, if you're looking at short-term rentals, you know, Miami is probably a great market for that. Something in the Midwest, in a small town, probably not, but conversely, if you're looking at land plays, the inverse of that would be true.

So the strategy itself is one of those critical aspects of figuring out what you want to do, the strategy you're going to work with those asset classes. And then that will be a function of what geography that you end up investing in. So the next one, you know, back to geography itself, researching the local market. So once you have that market or the