Buying U.S. Real Estate

Richard Dolan (Toronto) is the CEO and Senior Analyst of the U.S. Property Shop, a U.S. real estate capital advisory and research company based in Toronto.?Dolan has co-designed two certification programs, Certified Wealth Management & Marketing and Selling Wealth Management Services, which are offered at the Schulich School of Business, York University. Don R. Campbell (Vancouver) is a Founding Partner of the Real Estate Investment Network(tm).?He is a leader in providing Canada's most current real estate investment education programs and economic research materials, and is the author of the best-selling Real Estate Investing in Canada 2.0 and co-author of 97 Tips for Canadian Real Estate Investors; Real Estate Joint Ventures; and Secrets of the Canadian Real Estate Cycle. David Franklin (Toronto) is counsel to The US Property Shop and an expert on Canadian and US real estate.

Foreword xiii

Introduction 1

PART I: THE DECISION TO INVEST 7

Insight 1: The Economics Behind the US Market 9

Insight 2: Finding the Treasure with the Property Goldmine Scorecard 18

Insight 3: Let Quality Research Drive the System 21

Insight 4: Dig for Specific Information and Ignore Generalities 26

Insight 5: Jobs, Infrastructure, and Gentrification 29

Insight 6: A Closer Look at Three States 36

PART II: THE DISTRESSED PROPERTY MARKET 45

Insight 7: Learn to Identify a Distressed Property 47

Insight 8: Understand the Fundamentals of the US Foreclosure Process 52

Insight 9: Commit to the Number One Rule, Then Get Your Options Straight 55

Insight 10: More on Due Diligence 61

Insight 11: Avoid the Snake-Oil Salesman 66

Insight 12: Recognize That a Bad Area in the United States Is Very Different from a Bad Area Elsewhere 75

Insight 13: Look for the Stability of a Good Neighborhood and Follow First-Time Homebuyers 80

Insight 14: Choose Your Exit Strategy Before You Make the Deal 84

Insight 15: Know Your Financing Options and Obstacles 91

Insight 16: Understand the Real Estate Cycle 96

Insight 17: Find the People Who Can Help You Find Foreclosures 105

Insight 18: Benefi t from the Five Profi t Centers of Real Estate 113

Insight 19: What a Full-Service Real Estate Investment Group Offers 118

Insight 20: Analyze Your Deal 123

PART III: RENOVATIONS AND MANAGEMENT 135

Insight 21: Work Smartly with Contractors and Subcontractors 137

Insight 22: Weigh Reno Must-Haves with Nice-to-Haves 143

Insight 23: Dial Up the Intellect (Dial Down the Emotions) 148

Insight 24: Do the Big Four Renos on a Rental Property—Now 152

Insight 25: Get Everything in Writing 157

Insight 26: Curb Appeal: You've Got Seven Seconds to Impress Me 161

Insight 27: Run If You Spot Any of the Top Three Reno Red Flags 165

Insight 28: Hire the Right Property Manager 172

Insight 29: Make Money by Delegating to Your Property Manager 177

Insight 30: Set the Rules Up Front with Your Property Manager 180

Insight 31: Be Smart about Rent Collection 184

PART IV: CROSS-BORDER TAX PLANNING 189

Insight 32: Understanding US Tax Laws 191

Insight 33: Taking Title to Your US Property Investments 197

Insight 34: Deal with Depreciation 202

PART V: LEGAL PLANNING 213

Insight 36: The Three Pillars of Real Estate Asset Protection 215

Insight 37: Develop an Asset Protection Plan and Be Prepared to Avoid Lawsuits 219

Insight 38: Counter Threats to Your Wealth with Foresight 222

Insight 39: Draw Up a Blueprint for Your Estate Plan 226

Insight 40: Steer Clear of Asset Protection Fakes, Scams, and Planning Errors 233

PART VI: CROSS-BORDER BANKING AND FINANCING 239

Insight 41: Understand Cross-Border Issues 241

Insight 42: Familiarize Yourself with US Mortgage Financing 245

Insight 43: Buy US Real Estate Property with Other People's Money 248

PART VII: INSURANCE AND INVESTMENTS 253

Insight 44: Insure Your Investment 255

Insight 45: Carry Insurance Beyond the Property Line: Medical, Auto, and Third-Party Liability 262

Appendix: Considerations for Buying a Second Home 266

Index 269

About the Authors 274