Today, we are talking specifically to investors from Canada who are looking to buy a property here in the Orlando rental market. A few of the same things come up time and time again, so we thought we would save everyone some time and make your search more efficient. Canadians like the Florida market, especially Orlando, because they can easily fly down, spend a weekend at the theme parks, and shop for property. There’s a great opportunity for ROI in this market as well.
Canadians are Overseas Investors
Although you’re in Canada and Canada is very close to America, it’s not the same country. So, you’ll be classified as a foreign national. When you’re buying here, you need to talk to an accountant or a CPA to get an ITIN number. That’s a tax identification number, and you’ll need it to file a tax return here with the IRS. You also need this number to set up a bank account.
Setting Up a Bank Account
Most foreign investors already have a U.S. bank account. If you need to open one, there are three common banks to consider because they are in both Canada and the U.S. Those banks are HSBC, TD, and RBC. They are here in Florida and in Canada. So, it’s much easier to move funds back and forth. If you have a relationship with one of these banks already, the process is seamless.
Prepare Your Proof of Financing or Cash
The market is so hot and buoyant that lots of deals are closing quickly. So, we ask you for a few things up front. This is to be sure you’re taken seriously with a seller’s agent. We’ll need proof of funds to close if you’re buying in cash, or proof of deposit if you’re planning to finance. A copy of an online bank statement or a letter from your CPA telling us where the funds are will meet this requirement. If you’re paying in cash, you need to demonstrate that you have the full funds. When you’re planning to finance, you’ll want to get prequalified before you even begin looking at properties. As a Canadian national, you might want to get your line of credit at home in Canada. This will be acceptable.
If you’re buying a condo in the $80,000 to $100,000 range, we recommend that you pay in cash. You’ll get a better deal, and your offer will be accepted quicker. We’ll recommend that you close in less than 15 days. Cash purchases get the attention of sellers, and financing condos is difficult. You should only look for financing when you’re planning to buy a single family home or a townhome. As a Canadian national, you’ll have to put 25 or 30 percent down, depending on your lender.
We are telling you these things now because we get so many inquiries from genuine investors north of the border, but they are almost always very early in the investing stages. Save yourself time by doing the financing work and preparation up front. We love working with Canadians, and we have lots of them as clients. If you have any questions about buying an investment property or anything pertaining to Orlando property management, please contact us at Warner Quinlan, Inc.