Paul shares the importance of driving leads to your business instead of sitting and waiting for them to come to you.

Paul Duncan
Profitflo
https://profitflo.io/home?am_id=glensutherland1258

EP322 3 Secrets to Convert more Deals with Paul Duncan

This weeks podcast delves into the mechanics of determining and leveraging cap rates in real estate investment, with several practical insights. Below is a summary and key takeaways:

Key Points from the Discussion

Understanding Cap Rates:

Cap rate is a measure of return on investment for a property, calculated as NOI (Net Operating Income) divided by the purchase price.
It allows for the comparison of properties regardless of debt structures.
A higher cap rate indicates higher returns but often implies higher risk.

Determining Market Cap Rates:

Connect with brokers, realtors, and appraisers active in your target market to gather cap rate data.
Use subscription lists from commercial real estate firms (e.g., Colliers, Avison Young) for current listings and sales information.
Study historical property sales and their performance for patterns and benchmarks.

Challenges with Market Data:

In smaller markets (low population or less activity), data scarcity increases cap rate variability.
In major markets, cap rates tend to be lower due to higher demand and liquidity.

Creating Value Beyond Initial Cap Rates:

Properties with vacancies or operational inefficiencies often have lower advertised cap rates but offer opportunities for value creation.
By stabilizing rents, filling vacancies, and improving operations, investors can significantly improve effective cap rates.

External Influences on Real Estate Markets:

International money inflows into stable countries (e.g., Canada, the U.S.) often prioritize asset safety over returns, inflating real estate prices and impacting local cap rates.

Practical Strategies:

Always verify data (e.g., actual NOI versus pro forma projections).
Build relationships with professionals who can provide insights on local markets.
Track and analyze properties over time for better decision-making.


EP174 How to Detemine a Market Cap Rate Without Access to Financials of Other Appartment Buildings

This podcast features a conversation with a real estate investor who specializes in the "rent-by-the-room" strategy, particularly targeting college students near major universities. The guest shares their expertise on identifying suitable properties, adapting spaces to maximize rental income, and navigating financing challenges in this niche.

Key Topics Discussed

1. Researching Locations and Understanding the Market

Safety First: Tools like Reddit and CrimeGrade.org are invaluable for researching neighborhoods and identifying safe locations. Reddit provides direct insights into student preferences through word-of-mouth discussions.
Student Preferences: Understanding what students seek in off-campus housing helps in selecting suitable properties.

2. Pricing and Rental Rates

Use platforms like Facebook housing groups, Roomies.com, and Craigslist to determine average rental rates per bedroom.
Pricing must align with the local market while ensuring profitability.

3. Maximizing Rental Income

Repurposing Spaces: Convert bonus rooms, offices, or large living rooms into additional bedrooms to increase income.
General Guidelines: Bedrooms must meet local egress and size requirements (typically 10x10 feet or larger).
Estimating Bedroom Potential: Divide total square footage by 300 to estimate the number of bedrooms a property can support.

4. Financing Strategies

Lenders typically use market-wide rental comps, even for rent-by-the-room setups.
Refinancing to use actual rental income requires at least one year of ownership and showing income on tax returns.
DSCR loans (Debt Service Coverage Ratio) may be harder to approve for room-by-room models during refinancing.

5. Target Tenant Base

Focus on colleges with professional programs (e.g., medical, dental, law) where students stay for several years.
Students are generally reliable tenants, with parents or financial aid often covering rent. Evictions are rare in this demographic.

6. Getting Started and Scaling

Start with a single-family home and convert spaces to add bedrooms.
Creating additional bedrooms is cost-effective (around $1,500–$2,500 per room).
Once a system is established, the process can be repeated for future properties.

7. Advantages of Rent-by-the-Room Strategy

Potential to net $1,500–$2,500 per month in cash flow per property.
The U.S. has a vast market with colleges in every state, providing consistent tenant demand.
Real estate investing offers compounding growth through leverage, equity paydown, and cash flow.

Closing Thoughts

The guest encourages new investors to consider this strategy due to its accessibility and profitability.
They highlight the importance of developing a repeatable system to scale investments efficiently.
Real estate investing provides financial independence and control over one’s future.



EP362 Rent-by-the-Room Real Estate Strategy with Ryan Chaw

EP360 How to Restart Real Estate After Losing it All with Mathew Owens

In this week’s episode, I sat down with Jane from Elgon Financial Advisors, who specializes in helping foreign-born individuals navigate US finances. We covered everything you need to know about building US credit as a Canadian investor!

EP361 Building USA Fico Credit Scores on ITINs for Canadians with Jane Mepham

In this episode, Glen Sutherland sits down with David Chris from Action to Call to explore how AI-powered virtual agents are transforming business communication. They discuss how AI can handle customer interactions, schedule appointments, and improve response times—ensuring businesses never miss a call. David shares real-world applications, including AI-driven real estate assistants and Airbnb concierges, and even provides demo numbers for listeners to experience the technology firsthand.

EP363 How AI is Revolutionizing Business/ Real Estate Communication with David Criss

In this episode, we dive into how FrontLobby helps landlords report rent payments to credit bureaus, screen tenants, and improve rental management. Our guest explains how incorporating FrontLobby into lease agreements and rental ads can attract high-quality tenants and ensure timely rent payments.

EP364 How Landlords Can Build Tenant Credit & Ensure On-Time Rent with Grant Burwash

In this episode of "A Canadian Investing in the US," host Glen Sutherland interviews Chris Micucci, a college professor and real estate investor who began investing just over three years ago. After taking Glen's class, Chris quickly seized an opportunity presented in an email and bought his first property. Since then, he has engaged in various investment strategies, including flips and the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method, and has transitioned into lending as a Canadian mortgage agent working with American lenders.

Chris emphasizes the importance of taking action in real estate investing, highlighting that many potential investors fall into analysis paralysis. He believes that success comes from actively engaging in the market and learning through experience. The conversation then shifts to the lending landscape for Canadians investing in the US. Chris outlines how lending practices differ between Canada and the US, emphasizing that in the US, the rental income generated by a property is the primary factor for mortgage qualification, rather than the investor's income or credit score.

Key points discussed include:

The significance of having a solid team and the importance of networking in the real estate industry.

The various types of loans available in the US, with a focus on purchase loans and how property vacancy can impact loan rates.

The necessity for proper documentation and organization when applying for loans, as well as the importance of understanding property value before making purchases.

The benefits of using a lender for investment projects, as they provide oversight and protection during renovations.

Chris also advises potential investors to consider hiring a coach to navigate the complexities of US real estate investing or at least work closely with knowledgeable lenders. The episode concludes with Chris sharing his contact information for those interested in exploring lending options for their investment properties.

EP365 From Flips to Financing: Hidden Strategies f/ Canadians Investing in the US with Chris Micucci

In this episode, Glen sits down with Ian, founder of Avoca Property, for a candid and action-packed conversation about the real behind-the-scenes journey of closing a multifamily deal. 

From early missteps in digital marketing and investor engagement, to legal battles, PE fund bait-and-switches, and $200,000 in legal fees — Ian doesn’t hold back on the tough lessons learned.

They talk about:

The challenges of raising capital without a track record

Navigating flaky commitments from family offices and equity partners

Why retail investors ended up being the key to getting the deal over the line

The unexpected downside of expensive mastermind groups

How Avoca Property is now approaching capital raising before bidding on deals

Why working only with people you trust is the ultimate success metric

Glen and Ian also compare notes on their eerily similar journeys — flipping hundreds of single-family homes, co-GPing larger multifamily deals, and learning (sometimes the hard way) how to structure better partnerships and raises for future projects.

If you’re in the trenches of real estate investing, syndication, or capital raising, this one’s for you. Full of wisdom, war stories, and laughs — don’t miss it.

EP366 How We Almost Lost It All — And Closed Anyway with Ian Drewe

Trisha Lehane – Realtor based in Scottsdale, Arizona with RE/MAX, specializing in working with Canadian buyers and sellers.

Background:

Originally from Canada, Trisha has lived in Arizona for 20 years.

She has deep roots in Canadian provinces like Manitoba, Saskatchewan, Alberta, BC, and Yukon.

Her real estate career pivoted to working with Canadians after selling a million-dollar property to a Vancouver buyer in 2008.

Key Topics Covered:

Canadians Selling U.S. Property
Many Canadians are selling U.S. properties due to:

Currency fluctuations (e.g., CAD–USD exchange rate).

Rising HOA fees and living costs.

Aging and changing lifestyles.

FIRPTA (Foreign Investment in Real Property Tax Act):

15% of the gross sale price is withheld by the IRS.

If the property is under $300K, it’s up to the seller to file documents via their accountant.

Capital Gains Tax:

15–20% in the U.S.

Canada taxes 50% of gains at the marginal tax rate.

ITIN Requirement:

Required for tax filing in the U.S.

Sellers need it if they don’t already have one from renting out their property.

💡 Seller Tips & Resources
Keep records of all improvements for capital gains deductions.

Donating furniture (e.g., to Habitat for Humanity) can offset FIRPTA.

Trisha provides full support, including:

Trusted professionals (accountants, currency exchange, contractors).

Marketing (MLS, drone photography, staging).

Selling remotely without being physically present.

🏠 Buying Process for Canadians
Trisha recommends reaching out 3–6 months before planning to buy.

She sets up a personalized MLS portal to monitor and learn the market.

Most Canadian clients are buying second homes, though some purchase rentals or move permanently.

Works with Canadian-friendly lenders (e.g., RBC Bank).

Buyer agency agreements are mandatory in Arizona before viewing homes.

Typical process:

Pre-qualification.

Offer and negotiation.

Home inspection (10-day window for repairs or credits).

Closing via title companies (no lawyers needed, unlike Canada).

Canadians can close remotely.

🌆 Arizona Market & Economic Outlook
Arizona, especially the Phoenix–Scottsdale area, is booming.

Major developments:

$100B investment by TSMC (Taiwanese semiconductor company).

An additional $60B+ in supporting infrastructure and companies.

Arizona offers lifestyle perks: golf, fine dining, shopping, warm climate.

EP367 The Hidden Costs (and Benefits) of Selling U.S. Real Estate as a Canadian with Tricia Lehane

In this episode, Glen interviews Taha Khan, a Canadian CPA with a U.S. license, who specializes in helping Canadians navigate the complex world of cross-border taxation.

 The conversation is centered around real estate investors, snowbirds, and business owners who spend time or have assets in the United States.

Key Topics Covered:
Substantial Presence Test (SPT):

Taha breaks down how Canadians can accidentally become U.S. tax residents by spending too much time in the U.S.

He explains the formula behind the SPT and how the 183-day rule works.

Solutions like the Closer Connection Exception and Form 8840 are discussed to help avoid being taxed as a U.S. resident.

Green Cards & Tax Residency:

Taha explains how having a U.S. green card automatically triggers U.S. tax residency, regardless of physical presence.

FIRPTA & Selling U.S. Real Estate:

For Canadian investors selling U.S. property, FIRPTA (Foreign Investment in Real Property Tax Act) can withhold 15% of the gross sale price.

Taha explains how to reduce this withholding with Form 8288-B and how to structure deals smartly to avoid surprises.

LLCs vs LPs:

Taha gives advice on why LLCs are usually not ideal for Canadian investors due to unfavorable tax treatment by CRA.

He suggests alternatives like Limited Partnerships (LPs) for better tax efficiency.

Canadian Snowbirds:

For retirees or snowbirds spending winters in the U.S., Taha emphasizes the importance of tracking days, filing Form 8840 annually, and consulting a tax professional to avoid dual taxation.

Tips & Takeaways:

Always work with a cross-border tax specialist.

Don’t assume Canadian and U.S. tax rules are aligned.

File the right forms on time—even if you don’t owe tax—to avoid penalties.

Proper planning beats reacting when it comes to cross-border issues.

EP174 How to Detemine a Market Cap Rate Without Access to Financials of Other Appartment Buildings

The Real Estate Round Table

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