Scott Dillingham, a licensed mortgage broker who has helped clients finance over $1 billion in real estate, welcomes Chris Micucci — LendCity's US Division Lead and a hands-on real estate investor — to discuss why Canadian investors are increasingly looking south of the border for better cash flow and simpler financing. Chris shares how he got started just over a year ago with his first fix-and-flip in Ohio, quickly followed by BRRR deals in Michigan, and how that experience shaped the way he now helps Canadian clients navigate the US market.
One of the most compelling reasons Canadians are entering the US market is the math: properties in Ohio can be purchased for around $100,000 and rent for $1,500 to $1,800 per month, generating cash flow that is extremely difficult to achieve in most Canadian markets today. Chris explains how the US mortgage system is fundamentally different — it is asset-based, meaning lenders care primarily about whether the property cash flows, not about your T4s, employer letters, or income slips. If the house makes a dollar a month, it qualifies for a loan, and the deposit is really the only variable a Canadian investor needs to control.
Scott and Chris dig into the critical nuances of financing as a Canadian (or "foreign national") in the US market. Typical down payments run 30%, dropping to 25% for loans over $200,000. Current rates are in the high sixes to low sevens — higher than Canada, but Chris explains why: US bonds carry a higher yield due to stronger global demand. Importantly, US mortgages are 30-year fixed terms, meaning the rate you lock in today is the same rate you'll pay for the life of the loan with no forced renewals — a major structural advantage over Canada's five-year renewal cycle. After five years, US loans become fully open, giving investors the flexibility to switch lenders penalty-free. Many lenders also allow rate buydowns, letting investors pay upfront to reduce their interest rate and boost cash flow from day one.
The episode also tackles the often-misunderstood topic of Canadian entities for US investing. Chris cautions that going to a US accountant to set up an LLC may actually create problems, since the LLC structure is not recognized in Canada and can lead to complications. Working with advisors who understand both the Canadian and US systems — including cross-border accountants and lawyers — is essential to structuring deals correctly and avoiding double taxation. Scott and Chris emphasize that LendCity's team includes both Canadian brokers and US-based staff with boots on the ground, giving clients a uniquely versatile perspective that a standard American lender simply cannot offer.
Key Takeaways:
- US properties in markets like Ohio offer significantly better cash flow than most Canadian markets, with homes around $100K generating $1,500–$1,800/month in rent.
- US mortgages are asset-based — lenders qualify the property, not the borrower's income, making it far easier for Canadians to qualify.
- Canadian "foreign national" investors typically need 30% down, or 25% down for loans over $200,000, with current rates in the high 6s to low 7s.
- US mortgages are 30-year fixed terms — the rate you lock today is the rate you keep for the life of the loan, with no forced renewal cycles.
- After five years, US loans become fully open, allowing investors to refinance or switch lenders penalty-free at any time.
- Rate buydowns are available in the US, letting investors pay upfront to reduce their interest rate and improve monthly cash flow.
- Proper entity setup is critical — US LLCs are not recognized in Canada, so working with advisors who understand cross-border structures is essential to avoiding double taxation.
- Working with a Canadian-focused team matters — American lenders often don't understand the foreign national lending nuances and may quote rates or LTVs that don't apply to Canadians.
Links and Show References: No external resources were mentioned in this episode.
Ready to explore US real estate investing with a team that truly understands the Canadian perspective? Visit LendCity.ca to book a free strategy call with Scott and the team today.
- (00:00) - Introduction: Meet Chris Micucci, LendCity's US Division Lead
- (01:14) - Chris's US Investing Journey: Fix & Flips and BRRRs
- (02:22) - Why Canadians Are Moving to US Real Estate for Cash Flow
- (05:01) - Why Work With a Canadian-Focused Mortgage Team
- (08:03) - Future Markets: Scaling to Texas and the Sunbelt States
- (10:13) - US Loan Qualification: Asset-Based Lending Explained
- (11:55) - Down Payments, LTVs & Current Interest Rates
- (13:32) - Rate Buydowns, Open Mortgages & Long-Term Loan Terms
- (16:11) - Setting Up the Right Entity to Avoid Double Taxation
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