David Garner: 0:22

Okay, so we are here with

0:24

Scott Dillingham of LendCity in Canada, and Scott

David Garner: 0:28

is a mortgage broker, dual licensed in the US and in Canada. And a big part of his business is helping Canadians finance their US real estate investments. His team are closing. For one of my clients right now on a property in Kansas City. Um, it's been a real pleasure working with them. But we got our heads together and thought it would be a good idea to spend 20, 25 minutes just talking through the loan product that's available specifically for Canadians and also some of my UK clients. There's a lot of crossover. Who are buying rental properties in the us, what kind of terms are available and trying to bust some of the myths, uh, and the misconceptions that might be flying around with regard to financing. So Scott, was that a fairly accurate representation of who you are and what you do? Absolutely, absolutely. 100%. Thank you so much for the introduction. No worries. So. The product that we use is A-D-S-C-R loan. It's something I'm very, very familiar with myself. Um, it stands for debt service coverage ratio and it's effectively a rental property loan where the lender's looking at the income generating potential or capacity of the property in relation to the debt service costs rather than underwriting the loan based on the borrower's income. And credit, is that kind of a, an a, a back of the napkin, fairly accurate description of the loan product that we're using? Yes. Yes. You nailed it. There's a few others as well if you get into the commercial stuff, but on, you know, eight units or less, that's the product. And one thing you mentioned, right, you mentioned we're in Canada and, and you've got UK clients, but this literally applies to everything. Borner doesn't really matter where you're from, as long as it's not like a sanctioned country where there's sanctions against from, from the us. Um, yeah. But if you're from a non sanctioned country, uh, you can purchase and all, everything we're gonna discuss here will apply. Yeah. Okay, perfect. So, yeah, I mean, I, I've come across people from non Hague countries, um, and that can be a few extra hoops to jump through. When it comes to things like signing, they have to go to a US embassy. Notaries and apostles can be a little bit different. But do you wanna give me an idea of kind of the terms that are available for foreigners?'cause what, what I find when I'm having initial conversations, we do a, like a 10 minute fact finding call with people that are interested in buying rentals in the US and often, you know, they've been on BiggerPockets or one of the other forum. And you know, they've been told you can get an 80% loan to value DSCR loan at 6% and it's not necessarily the case when it comes to foreigners. The terms are a little different. Do you wanna talk me through one of the main differences to clear that up for people? Yeah. Yeah. So there's a couple restrictions. There's the, uh, the loan to value restrictions. So you nailed it usually on purchases. If we're just talking about DSCR loans it's 25% down. But keep in mind, uh, that lender does require the minimum property value to be one 50, right? Mm-hmm. So if the property value's below that, then we have other lenders that are at 30% loan to value. And then, um, uh, now that's on a purchase. Refinancing the loan values are different. Usually for a foreigner, the max is 70% on a refi. But most we'll do it at 65. Now we have some tricks to leverage that. But a lot of clients say, okay, well what's my rate? Right? And so, like you said at the beginning, we have to run the debt service coverage ratio. We see how strong the property is, and that will help to determine the rate. But the other thing, like you mentioned was where, where you can be assigned to close. So we have a few lenders that support Ron, which Ron stands for remote online notary. So these lenders that have this generally have a little bit higher price on the rate, but you can sign anywhere in the world and it's completely remote. So we take all these things into consideration when we're speaking to a client, right? If we know there's no way they're gonna be able to get on us soil, why would we try to use a lender that only supports that? Do you know what I mean? Yeah, absolutely. So we, we optimize that ly. Yeah. So that's part of the rate. A really good example of that is the client you're closing for is right now, uh, he was given the option, right? He lives in Ottawa, so he's close. He's about an hour's drive away from the US border. So it was a case of you, you can get a rate at 7% and sign on US soil, or you can get a rate at 7.125, I think it was. And, and you can close remotely, but I mean, I, I've done this a lot and what I ended up doing with my property was have a corporate resolution for my LLC. And an authorized signatory. Yeah. That's not necessarily always in line with what a lender expects, uh, as well, right? So this is where I, I think the value of working with someone like yourself who's experienced specifically with non-residents is so valuable. I mean, I speak without fail. This has happened this week. Without fail, I speak to someone from either the UK or Canada. And they don't know. They didn't know that they couldn't, uh, get a loan at less than a hundred thousand dollars without paying a ridiculously high rate. So they've gone out. Mm-hmm. And they've bought all these kind of much cheaper properties. They've renovated it and great, but then they've come to the refinance element and they thought they were gonna get an 80% loan to value refinance at 6%. And that's not quite how it works. So putting a financing strategy together that aligns with your residency. What you are buying and your long-term goal, it all goes into the mix, and I think this is a part of it that people don't pay enough attention to early on in terms of understanding the financing that's available, the terms they're likely to get so they can create a pro forma that actually is gonna be fairly accurate. Rather than thinking, oh, you know, I'm gonna buy this$120,000 property and leverage it at 80% loan to value, you're probably not, in reality, your purchase price really to start getting good terms. In my experience, and I dunno whether you'll agree with this, it's probably about$150,000 purchase price and upwards, right? Yeah. Below that and you start to see much higher loan origination fees and you start to see much higher cash reserve requirements and you start to see higher rates as well. That's been my experience anyway. Yeah, no, you're right. Yeah. I think clearing some of that stuff up before people start buying properties or, you know, spending money or borrowing money from a hard money lender, which, you know, I spoke to a Canadian guy who bought a couple of houses and borrowed hard money and. He's come to the refi element and he can't do it. So really the terms are, first of all, find a good property that's generating enough rental income to cover the mortgage payment. Right? That's number one. Yep. And, and then you're gonna be realistically, I mean, I've been putting all of my pro forma together based on a 70% loan to value. But you're saying 75 percent's not impossible. Yeah. Yeah. And, and we always say up to, so it's best to speak to myself or somebody on the team. So then we we're literally priced that property. So before a client even puts an offer, and that's the beautiful thing about what you guys offer, right? Like you have an inventory of stuff, so you've kind of pre-vetted it, so it's, it's nice and easy, but ultimately, yeah, like we'll price that property so the investor knows the loan to value the rate and everything. And that's what's different. A lot of times when people get pre-approved, they get a rate and they can use it on whatever property, but for this product, that's not how it works. This property, right? Or sorry, this. Program, the property holds the rate.'cause it holds the numbers of what the income and expenses are, right? Yeah. So the next door neighboring property, I had one, actually, one of my very first loans I did, it was, um, this guy was buying two condos in Florida. They were in part of the same condo complex, but they were across the street from each other in two separate buildings and the zip code was different on them. And the one was priced a quarter point higher than the other one, even though everything else was the same. Just'cause slightly different. So even that had an impact. Now we did discover that the one side of the street was deemed slightly higher flood zone risk, so that's actually why the rate was a little bit higher. But literally, neighboring properties can have different rates. So it's always good to check the property and and have us review it for, for the client. Yeah, exactly. I, I think this goes back to what we said earlier. It starts with the property. This is why we carry an inventory of property. We've already run the numbers on. So by the time, if I'm speaking to one of my clients, they're interested in buying something, we're not going out there and scrolling on Zillow looking for a good deal. We have a, a small inventory of deals that we know have got a good DSCR ratio. We know they're gonna qualify for financing. The precise rate's gonna vary based on the, the vagaries of that particular property. You know, its location and all of that kind of stuff. Uh, and that's another element as well, I think that's worth mentioning is you're gonna get a different rate in different states right. In, in a lot of cases. So we got a, a quote, uh, yesterday for one of my UK clients that's buying in Cleveland. The rate's a little bit higher because they can't put a prepayment penalty on it. Um, yep. So they're paying a slightly higher interest rate, whereas the property that we are, we are sort of comparing that to, in Kansas City at a, a much lower rate, but at a five year prepayment penalty, a five year step down. So all of this goes into the mix and this is why it's so important to work with the lender broker who understands it because I, you know, I've been doing this for 10 years and the vast majority of US mortgage brokers. Have access to foreign national loan programs, but they don't understand the process. And they don't understand the extra hoops that one might have to jump through in terms of signing and notaries and apostles and all that kind of stuff. And also, you know, approaching it just psychologically from a, a non-resident perspective, it's a little more intimidating when you're buying property in another country. Um, yeah, and there's a lack of knowledge of terminology. And the process as well. So, you know I, I think working with somebody who's specialized in that, and it is not just the us you do, right. You've got, you co you have loan coverage for Canadians that are buying in Mexico as well, as well as obviously Canada. Yeah. Yeah. Well, not even just Canadians, same thing, right? So if you had someone from UK that wanted to buy in Mexico, it's the same kind of program. Uh, Mexico loans, they're a bit harder. They do look at your income. So they're gonna wanna see employment income, right? Mm-hmm. Where in the US it's not, it's literally just the property. Yeah. Um, but yeah, we cover Canada, US and Mexico. Um, we are looking for other areas, but we wanna make sure they're hotspots. Like we don't wanna just. Set up financing in all these countries and then, you know, we don't do many loans. Nobody, if there's no appetite, nobody's buying there. It's kind of a waste of your time. Yeah. Um, so one of the other things, I, I made some notes and I should have really read them, shouldn't I? Um, that's okay. Common misconceptions. Something that we come across a fair bit, especially with this seems to be with our Canadian clients, is some of them think that they're. Canadian credit score is going to impact the terms that they get in the US and, and like we said, it's not the case, is it? I'm gonna say 99 out of a hundred. It's not the case. We do have those odd lenders that will use the Canadian credit score.'cause in the states they use Equifax and that's what we use in Canada as well. But there's very few lenders that have this program. And even if they will use your credit score, if they've got a higher rate than a lender that's not using it, you know, it doesn't matter. Right. So I'm gonna say, yeah, it doesn't matter your credit score. But that can be good too, because if you have a weak credit score in Canada, you can still do this. Yeah, exactly. And, and this is the thing, you can have no credit, not great income. Like we, I, a lot of the investors that I deal with. Have sketchy provable income because they're business owners, they're self-employed, you know, they make a lot of deductions, so they don't have a high taxable income. So getting qualified on a conventional loan, even in their own country can be quite challenging. Certainly in the UK there's been a massive tightening in sort of lending criteria, uh, and proof of income and all this kind of stuff. So it, it, it can be quite difficult and intimidating. But the DSCR loan in the US for a foreigner is actually. A really easy product to qualify for, provided you can prove who you are and you've got a good quality property. And in fact, it's a fairly good barometer of whether you're making a decent investment or not. Right. If you can get an approval and get financed, if a lender's prepared to lend against the property, then it's probably not gonna fall down tomorrow, and it's probably, you know, a fairly decent deal. It's a, it's a good filter. In most cases, right? Absolutely. Absolutely. And just to touch on that, right into the other point earlier about, you know, if you could be remote and sign or not, that's another thing that we look for is the down payment, right? So we do need 60 days worth of down payment, but. Some lenders want these funds to be seasoned in the states. So that's the terminology they use. So seasons means, yeah, you know, we can provide proof that they're in the states. Some are okay with it coming from Canada, uk, China, like wherever. Right. But you need to know this upfront. And that's why I think it's really good, like you said,'cause a lot of us brokers have this product, but if they don't know. All the details. And it's funny, they don't,'cause it's not their clientele, right? They're used to working with Americans, so it's, yeah, they miss these nuances, but even that's one of them is the down payment, right? So if you have a deal, right?'cause I've seen your deals and you guys get awesome deals, so, you know. Let's say you put one on your website, we need a 30 day closing. Right? If their funds are in the, in Canada and not in the states seasoned, and that lender needs 60 days, right? That borrower can't buy that property, or we have to get an extension. Yeah. So just like literally optimizing all of those things is something that we, we look for. Yeah, exactly. The lender that you choose might dictate the kind of property that they can buy or, or what specific property they can buy. Right? Because all of this goes into the mix. Uh, and again, it all circles back to what we said, you know, speak to someone who knows what they're talking about before you go making big decisions, especially big money decisions, right? Yeah. Um, so one of the things that I wanted to just touch on is the refinancing element because I, I mean, most of my clients are buying. I do get inquiries from people who already own and they're looking to refinance. As you know, Chris is probably speaking to a couple of those guys now. Um, but something that I've experienced over time is the requirements for refinancing. There can be seasoning requirements there as well, right? Mm-hmm. Um, as I understand it, and also I've seen lenders, and I don't know whether you've experienced this value or appraise the property based on cost basis. Instead of on appraised value for a refinance, which can really kind of throw a spanner in the works if you are expecting to pull all or some of your money out, and the property might have an appraised value of 250,000, but the cost basis might be 200,000. Can you just explain a little bit about how that works and clear that? Yeah, so that is actually a lender requirement. So lenders will say to us, you can order appraisals through these platforms, right? It could be Nano, which is nationwide, uh, appraisal network, nas, uh, appraisal Nation, right? There's all these different ones and they all have different criteria. So depending on the lender, we might be forced to order an appraisal based on their specs, and that specific lender might ask to get it appraised based on cost or the appraisal value, right? So it. That is really from the lender that is, is sourcing that requirement. And actually, I, I have some tips on how to maximize your refinancing if, if you want me to dive into it here. Yeah, yeah, for sure. A hundred percent. That for me, certainly. Yeah. Yeah. So we, we discussed. Just briefly, but uh, refinancing is between 65 to 70% loan to value, right? Yeah. So one of the tricks that we'll do, especially if we know the investor is wanting to renovate the property and refinance it, we'll tap into a fix and flip loan. Now a lot of Canadians and other investors when I speak to, they're like, well, I don't wanna sell it. I want to keep it, but it's still the same loan. You don't have to sell it necessarily, but in the lender's eyes, you're getting rid of it. Right? So they're giving you the loan, right? Temporarily. Then you're paying them off, and you're moving somewhere else. So we can use a fix and flip. So under the fix and flip loans, you generally get higher loan to values. Anywhere from 30% down to as little as 10% down. Okay. Of the purchase price, and then they fund a hundred percent of the renovations. Yeah. So based on that, you're at a higher LTV in the beginning. So that's how we kind of structure it for the investors. So, we'll, we'll tell'em, look, you're not gonna necessarily get your money out at the end, but I can help you to put less money in in the beginning. Right, right. And it is based on experience. So then we'll do the fix and flip loan. Now what we do when it's done. Is we'll do a transfer. So with a transfer we can go to 75% loan to value. Right? So we're taking it, the debt from the one lender, right. And we're bringing it over and we can hop. Like the lender fees and closing costs onto the loan amount as well. Okay? So you're getting a little more than 75% loan to value, but that's kind of the way that will suggest an investor gets max leverage if they're buying this property, knowing that they're gonna put money in and refinance it. Otherwise, if it's something that you've owned for a year or two, three, whatever. If it's a long term hold already, then you will be stuck at the 65 to 70%, depending on the lender. Okay. So it could potentially be more advantageous, even if you've got the cash to go out and buy your fix and flip. Taking into account the longer term plan with refinancing, it can actually be sensible to borrow the money for that because it's gonna aid you with terms when it comes to refinancing. That's right. Interesting. So yeah, all of the fix and for or, or bird deals, if you like, that I've done where 80%, 80% of purchase, a hundred percent of rehab. Nice. Unless obviously, how many have you done? Oh, bird deals probably more than 60. Okay. Most, most of those were private lenders. Not hard money lenders though. So sort of mom and pop investors investing with their retire accounts and such. Well, because you've done 60, and this is just for your knowledge, yeah, you should be able to get 87.5 to 90% of your purchase price with, with, with great rates, because you've done that many too as of today, and we're recording this middle of September you should be able to get around 8.99 on that for a fixed and flip loan. That's pretty good. I think the last one we did last year was at 12%, so that's, yeah, that's a lot better. If you send me a property. Yeah, if you send me a property after the show, I'll, I'll get you a term sheet so you can see exactly. You'll see the exact rate, the fee, and the loan to value. Yeah, we're looking at one in Toledo at the moment, actually. Um, the, the, for me to do a, a fix and flip, now the stars really have to align because we, we were burned so badly with contractors and poor quality work and that kind of stuff, that we've got one contractor we'll work with and unless a deal comes up when he's available, then I'm not doing it. Um, yeah, just because as you well know as an investor yourself, finding good people to fill the slots is the challenge, right. Plenty. That's the hardest challenge. Yeah, yeah, yeah. Loads of properties. There's, there's millions and millions of properties. But finding good people to perform the functions that you need have got competency, capacity uh, and capability is, is the challenging part. But there, there's two more things I want to cover real quick. Number one is interest rates.'cause I speak to people from the UK where mortgage rates are a little bit lower, and I tell them, well, you know, we're writing loans at the minute at 7%. They think that's high, but it's relative. Right? Mm-hmm. The properties are generating way more cash flow than UK rentals. Yeah. So it's all relative. But. Most folk that know a little bit about mortgages in the US know that interest rates to mortgages are not tied to federal interest rates as such. More to the 10 year treasury yield. But that's a little different when it comes to DSCR loans because they're tied to the overnight financing rate, right? Which is the shorter term risk-free borrowing rate with the lender spread. On top. So we are seeing, you know, we've just seen the Fed drop interest rates and I think that was already priced into mortgages, to be honest, about a week in advance by the looks of things. Yeah. So I don't see, we're going to, you know, mortgage rates are gonna fall off a cliff in the US anytime soon, but it seems to me that D-E-S-C-R loan rates are a little more stable than than sort of conventional mortgage rates. Would that be true to say, or am I missing something? I think so we get emails, daily of rate went up, you know, 0.005 basis points rate went down. So it is, it's very minute increases or decreases that happen daily. So yeah, it's, it's not drastic. And the other thing is, is it very much is relative the things that. You touched on it, right? A five year prepayment period. For those listening that have no idea what that means, that means your loan is open after five years. Now, your client that had to accept that higher rate and get the zero prepay, that means he has a fully open, or she has a fully open loan. So tomorrow if they technically wanted to right, they could refinance and get a different rate penalty free. Yeah. So. In the States, by default, you can refinance after five years, where, I don't know how it works in uk, but in Canada, you pick a five year term and then it renews and, but you have to pick another term, right? So if you break your loan during that term, unless it's at the renewal period, there's big penalties. So even though the rates might seem higher, the fact that you're, you're not having those. Penalties. You can get interest only loans, you can get 40 year amortizations instead of just 30. Right? Yeah. So you, you can do these things to increase the cash flow of your property. So it's, it's really not much. Right. If the deal makes sense and you can still profit, it's worth it. Yeah, exactly. And, and I think that's worth touching on as well because in the UK for example, when I have my, you know, quick 10 minute fact finding call and we talk about the financing product. And I'm telling people it's a 30 year fixed in interest rate, it be blows people's minds because in the UK it's, it's all variable rates. You can have a fixed rate for a period, like most of them are the equivalent to an arm mortgage where it's a short fixed rate and then it's changing every year or every six months, or sometimes even monthly in the uk. Whereas in the States, your rate is fixed if you want it, if you choose a 30 year fixed rate loan. It's fixed for 30 years. Right? So if rates go up to 12% and you've got a rate at six and a half or seven and a half, whatever it is, that's what you're paying. It doesn't change, right? Yeah. Yeah, absolutely. And that's beautiful. I don't know about UK, but Canada, our rates almost tripled over the past few years. Now they're starting to come down now, but for those Canadians coming up for renewal, right. Even myself on my investment properties, my mortgage payments went up. Where in the states you would've just stayed the whole time, right? So it, yeah, it gives you that cushion that people don't anticipate needing, but it comes in handy. Yeah. And also it means if you're buying a rental property and it's maybe got a couple of hundred bucks in positive cash flow on day one, in five years time, you've put the rent up a couple of times by, you know, you're, you're up to three,$400 a month in positive cash flow.'cause your cash flow expands and whilst your costs increase as well, generally rent tends to outpace inflation or it has done, you know, historically. So the process, I, I think it's worth touching on the process. For me, working with you guys has, has been an absolute dream. We submit the property and you guys within a day come back and say, these are the terms provided, the information we've provided with you, the purchase price, the rents, the property taxes, the insurance, all of those numbers stack, and when they, during the underwriting process, they're all verified. Then we get the rate within a day, right? Yeah, absolutely. We have some lenders where we can price instantaneously on their portal. Right. But we have some lenders where it's like, fill out this form, or email us the details and we'll get back to you. So that's why sometimes it takes a day, but if you, yeah, if it's ever a rush, we can get something instantaneously for you. But yeah, that's the process. We price the loan, we price the property, and then we let the borrower know once we've identified the best lender. We can then let them know what's needed.'cause every lender has their own kind of niche. Like we even have one lender, and this is crazy'cause we talked about 60 days worth of seasoning for your down payments. We have one lender that doesn't even care. They don't even want to see that. Right. So just depending on who the lender is and what's going on. Right. We'll, we'll need different documents. And this is a problem for people who go out there and try and work direct with a lender. They've got one, one company they're dealing with and they've got their way of working, and that might not align with what you're buying. What terms you need and all that kind of stuff. So you've got whole of market access and you can pick the lender that's gonna be most appropriate for that specific client. So the process is really simple. We're going through the process with you guys right now. We get the pre-approval for the property. We then go and get that property under contract with the client. That's part of what we do here. And then there's the underwriting process. And normally in a conventional loan, the underwriting process is they want credit, they want income proof, they want proof of assets and, and all of that fun stuff. With this, it's a little different. They want the title to the property, they want the rental agreements, lease, rent roll, property management agreement insurance quote. And you guys will order an appraisal, right? And this is a really good example of the deal we're doing right now. We have that property under contract for$176,500. The appraisal went out and said, no, it's$163,000. So we were able to negotiate that price drop with the seller in that case. And, and this client's ending up with a, a property for way less than he got under contract, which is great. But that's kind of the, the hard stop, I guess, in the underwriting process. As long as the rent and the property taxes and the title and, and the insurance measure up and the appraisal comes in, well then you're good to go. Right. Yeah, you got a deal. And honestly, the worst case is your down payment will increase. That's really the worst case. Do you know what I mean? Like it's not, yeah. It's not like, unless the property is like to the studs and it wasn't disclosed to the lender.'cause that's a problem, right? Under this program, they're, they're looking for minimal deferred maintenance. They don't want it to be like to the studs. But yeah, the worst case is, yep. You know, the numbers didn't jive. So instead of the 25 down like we told you about, we're gonna need 27 and a half or, you know, whatever the case may be. And then, so that's really what happens. U usually they, they, they work out, right? Because when someone's working with a, a strong company like you who's doing the full due diligence and all the underwriting and all that stuff, there's minimal margin of error. Of course, there could always be error because the information you receive might be incorrect, right? But it minimizes it so the investor can feel confident in knowing, you know, they're, they're getting the best financing and the best property too. Yeah, look, I, we all know the real estate space is just awash with chances and, you know, hustlers and, and whatnot. And I say it all the time, if you are out, even if you're in the US citizen and you're out of state you know, there's plenty of people out there that will take advantage and try to sell you something that's not in the condition they said it was or is not gonna value up at the price that you are paying. See it all of the time, and I think that's. A big part of the value that we add because we take that away from the client and we, we step in between them and the seller and make sure all of those things stack up. But yeah, the process is super simple. Find the right property. We get the pre-approval, the underwriting process, maybe 30 days at, at the top end. Was that, would that be about right? Uh, generally, yeah, like from, from like start to to funding. Yeah. Roughly 30 days. Uh, I think the fastest we did a regular DSCR loan was 11 days. Uh, flips we can do faster depending on the lender.'cause some of'em are hard money lenders, so they've got money in the bank and, you know, they don't care so much, so it's whatever. But, um, but yeah, so I, I think three to four weeks is ideal. Um, because that gives you the opportunity to shop around with multiple lenders, because if you come in with a two week closing, there's only a few lenders that can do that. Right. So then now when we're trying to get the best price or match up the criteria based on where you can sign and all these other things. Right. It's, it's just limited. Yeah. Got it. Got it. Alright, brilliant. Is there anything else you think, based on your experience dealing with your clients, any kind of misconceptions or, or myths that are worth mentioning now to try and clear up for people? Well, I don't know if there's myths or misconceptions, but I would definitely say buy in an entity we have, um, yeah. I don't know if it's a problem for UK based citizens, but in Canada, some of the big banks operate in the States, so they'll promote buying into your personal name.'cause that's, that's the only way that they can set this up. Yeah. And it creates a lot of. Exposure to liability for the investor. Yeah. Huge. So, you know, be careful of that. Like, yeah, the financing might be easy, but your just the, the risks are huge. So I would, I would always try to buy in an entity and I do think the banks over time will open that up. It's just, you know, they're getting started into the states and, you know, programs are limited, but, you know, the more tenure they have there Right, the more that's gonna open up. But yeah. Always get the entity. So you gotta speak to a professional on that. And then I think also don't trust your bank when it comes to wiring the funds. There's foreign exchange companies that we've seen them save thousands of dollars for our clients. Yeah, for sure. On the down payment. Right. So tap into that. And then I think like the last thing. HGTV, I don't know if you've ever seen that, David, but people, uh, watch HGT V around here and they think that they can just do everything right. And, uh, I encourage you not to get into those renovations and into those nuances and to, to partner with experts like yourself that have the correct teams so things get done properly. Spend a little bit of money on renovations. Don't just, oh, this is easy. It only costs me 10 grand, and then it's like 25 grand later. Like, yeah. So that's, those are the tips I would suggest. Yeah, absolutely. Just to expand on that entity part of it. I mean, I got sued because a tenant that had a dog that they weren't supposed to have, a big cane corso dog ran out on the street and bit a member of the public. Um, and that member of the public decided they were gonna try and sue me because I owned the property that that dog ran out of. Now that obviously came to nothing. It was frivolous. They were just hunting for insurance. But if I'd have owned that property in my personal name. And they'd have won a judgment against me for a million bucks. All of my global worldwide assets would have been. At risk, I mean, you know, whether they'd have been able to chase them down from overseas is another matter. However, owning in an entity absolutely essential for for overseas people and US people. But the biggest mistake I see Canadians make is using, um, an LLC when that might, in their specific circumstances cause a double taxation issue. So as you know, we, there's a big part of what we do is helping people form the right kind of entity and open a US bank account, which we can do really, really quickly. And for Canadians, usually an lp, a limited partnership is often not always. And you gotta be careful not to give kind of blanket advice'cause everybody's different, right? And an LLC can work for some people just fine. But in most cases an LP with an LLC that manages the LP in the US is considered pass through by both the CRA and the IRS. So it eliminates that double taxation issue. But obviously, you know, I, when I, you know, before we started dealing with any Canadians, I searched on the internet of the. For some advice, right? And there are 10 different answers out there as to what you could, what you should do, and how you should structure it. So it's really gonna depend on your own personal circumstances, what kind of tax goals you are planning for. Um, you can even stick a foreign corporation into the process somewhere to work, uh, to help with estate taxes. But again, speaking to somebody who knows and who's been through the process is absolutely essential. Don't, just don't get your investment advice off TikTok, I think is what I'm trying to, uh, that's try to get, to get at where everybody says, just, you know, form an LLC and then you'll pay no, no US taxes. Yeah. So that's not, it's not true. Yeah. It's not the case. It's horses for courses and there is the right solution for everybody, but it might be just a little bit different for, for different folks from different places. Um, so yeah, I think that's a, a really important point to raise. Um, and, and also another thing on that is important to note is that if you are a non-resident alien and you are forming a US entity, let's say an LLC or an lp, a big part of that process is you're gonna want an EIN number, which is an employer identification number. It's the tax number. For that entity. And if you are a foreigner, that can take up to eight weeks. So if you haven't got that in place, you are gonna struggle to close because the lender's gonna want the EIN number, right? And the title company's gonna want the EIN number when they're de anyone dealing with money in the states is gonna want the tax identification number. We have an expedited process and the, the folks that we work with. Get that immediately. So they use a slightly different process so they can get the EIN number instantly for that foreign client. And it comes with an EIN letter in the client's name, not in their name which is really, really handy. But yeah, if you want to go out there and go it alone, go solo and set up your US entity. Do it well in advance. Otherwise, you'll find the deal you want and you're not gonna be able to buy it. Because you're not gonna have all of your paperwork in order. So, you know, you can, you know, we can help people with our investor kit. I know you do something similar as well. So you've got a ready to go entity that they can just, they can either purchase or. You know, we can have someone set up for'em. So yeah, I think that's a, a really important point. Get your entity sorted first. We actually do that after they've got the property under contract because our process is so quick, so they don't, we're not sort of hanging around. But yeah, I see that all the time. You know, people say, no, I'm gonna go do it myself'cause I'll save a couple of hundred bucks. Sure. Just gonna be a problem. But listen, Scott, thank you so much. Is there anything you think we've not covered that might be useful? No, I mean, I think we've covered a lot. I think, uh, I'll share with your audience and I, I do have to run actually, unfortunately, but I'll share with your audience. No worries. Um, our cashflow calculator, and I'll give that to you. Yeah. So for anybody that gets signs up for access to, to view this full video, right. They'll have that and it shows the 30 year and the 40 year. So when they're underwriting their properties, they can compare. Pick what amortization makes sense, right?'cause sometimes 30 doesn't cash flow, so 40 will. So I can share that with you as well, but I think we've really covered a, a lot. I think this is a, a field where somebody could learn and learn and learn for a whole year. Right? But then now you've not taken action. I'm learning every day. Yeah. There's so much to it. Right? So I think. You know, you don't, you don't wanna have this stop your growth and acquire, you know, stop yourself from acquiring properties'cause you're spending too much time learning. Right. So I think take action, partner with the best people, the best team like, like yourself. And obviously we'd love to help with the financing and yeah, we just do whatever we can to make this journey as easy as possible. Perfect. Well listen, thanks very much. Just to summarize, if someone's looking at mortgages as a

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non-US citizen, it's Len

David Garner: 37:26

Just to summarize the terms, you'll likely be looking at 70, 75% loan to value. You will likely be looking at a 30 year fixed interest rate, and you're not gonna have to provide us credit or prove your income but get your entity set up ahead of time or work with someone like Scott or myself who can provide you with something that's ready, made, um, and focus on the property. Find a good deal first. Right? That's it. Good stuff. Alright man. Well listen, thanks very much for the time. I really appreciate it. I think this has been really useful. Um, and I'll speak to you soon. Thanks so much, David. Take care. Take care. Bye-bye. Bye.