Scott Dillingham: 00:21

Welcome back to the Wisdom Lifestyle Money Show. I'm your host, Scott Dillingham. Today, I have an awesome guest I'm super excited to have on with us, Glenn Sutherland. So Glenn is an expert helping Canadians. And even if you're not from Canada, you can still tap into his program and learn how to invest and purchase properties in the states.

Scott Dillingham: 00:42

So I'm really, really excited to have you on because this is an avenue that we're venturing down with the lending. So welcome, Glenn. Well, thanks for

Glen Sutherland: 00:50

having me. Just I'm excited. It's gonna be fun. I'm excited. It's gonna be fun.

Scott Dillingham: 00:54

Yeah. Yeah. No. For sure. For sure.

Scott Dillingham: 00:56

So I'm curious, though. What what inspired you? Right? Because you're a Canadian. So what inspired you to want to invest in the states?

Glen Sutherland: 01:06

Well, you being a lender probably know some of this stuff. Or I actually know you know really you will know this stuff. But, I used to do traditional lending with the Canadian banks and, you know, use the big 5 or big 6 depending on how people look at it. But, I used to use those banks, and,

Scott Dillingham: 01:22

one of the big things is I got maxed out.

Glen Sutherland: 01:24

They started saying that, you know, I think at the time I had 4 or 5, maybe 6 Canadian properties. I can't remember exactly, but they were saying, you're done. You're you're you you're gonna have to go to secondary lending. You're gonna have to go lending. Somewhere else to to find lending.

Glen Sutherland: 01:39

You're you're basically cut off. Actually, you know what? They didn't pitch to go to secondary lending. They just said you're dumb. You're not gonna be doing any more investing.

Glen Sutherland: 01:47

They weren't weren't gonna give me any more even creative strategies. That was one of the big things. The other thing was that I was when I was investing in Canada, was the landlord, the property manager, the contractor, the everything. Because I was the property manager, and honestly, it's not my strong suit. That's why I hire other people to do this, because I trust way too much.

Glen Sutherland: 02:09

I, you know, I understand when I'm hiring contractors to do it my way, but, like, I trust too much to do a property management. When someone says they're gonna give me rent, I assume they're gonna give me rent. So I ended up at the landlord tenant board way too much. Ontario landlord tenant board because I live in Ontario. And the other thing is as a con doing the contracting myself, I'm not a contractor, but I'm fairly handy.

Glen Sutherland: 02:29

I can do trim, put cabinets together, do a lot of stuff. And so I would take do a lot of stuff. Weeks off of you know, I used to have a 9 to 5 job. Take weeks off of work to go work. And, you know, if you have your properties, like, 10 hours, 12 hours away, 20 hours away in in a car, you're you're just not gonna have that option, to go fix this.

Glen Sutherland: 02:51

You're not gonna be running over there in

Scott Dillingham: 02:52

the evening. So it it freed my life up. No. That's awesome. That's awesome.

Scott Dillingham: 02:56

You're right. And you're right. I do know those points. I just wanted to hear from your perspective. And and you're right.

Scott Dillingham: 03:02

I mean, it's just a it's a different world over there, the things that you can do. It's crazy. So for your first purchase over there, what did you buy? What did you go after? Well, this is actually a really common question I get.

Glen Sutherland: 03:18

And I'll tell you what I bought. But I honestly wouldn't recommend going down this path. It was for somebody who I wasn't hiring a coach, wasn't getting advice, wasn't listening to podcasts, wasn't, you know, at least there wasn't wasn't cross border podcast back when I started, back in 2016. So I was kinda winging it. But what I started off with is I bought some turnkey properties in the United States, started off as a property in Alabama, was my very first one.

Glen Sutherland: 03:44

I bought it with cash because I didn't understand US financing. And because it was everything was new, but I figured I'd go as far as I could go and I'd figure it out. And then when I bought property 23, I put all 3 properties into 3 mortgages all the time and I refinanced Basically, the first one into 3 properties, all in one transaction. Great. And I met somebody who could help me with that.

Glen Sutherland: 04:06

Yeah. So I know. You want anyone to talk about what kind of property it was? Or? Well, no.

Glen Sutherland: 04:11

You don't have to.

Scott Dillingham: 04:12

I just the fact that you wouldn't do it that way again, I'm curious what way that you would recommend, you know, a Canadian invest over there to to

Glen Sutherland: 04:21

get going. Yeah. But it's the yeah. So the problem with what I did was the problem the same problem anyone has when they do a lot of rental properties or any kind of rental properties even in Canada or the United States. As if, say you have I don't know.

Glen Sutherland: 04:36

Everyone has a finite amount of money. And if you go put that money into a property and you buy it at market value, how do you grow? How do you continue to buy your second property? Where does that come from is was the problem. And so, you know, at the time, I basically used my line of credit up because the exchange rate was a lot different.

Glen Sutherland: 04:56

And I went and bought, you know, a US property. And I was like, how do I how do I expand? And that was where I kinda got myself stuck.

Scott Dillingham: 05:04

So in this even current market

Glen Sutherland: 05:06

right now, there is even advantages to even like, you know, the 2022 market where everything was flying off the shelf. Right now, people are more open to seller financing, people are more open to, you know, inheriting mortgages, they're more open to a lot of strategies, because the market is moving a lot slower. So they can take them a lot longer to sell some of these properties. If these properties aren't in 100% shape, you know, tip top shape needs some renovation needs something, then they're gonna even more be open to these sort of strategies. But basically, if I was gonna buy now, you need to find an exit strategy to the property.

Glen Sutherland: 05:40

It can't be just I'm gonna buy this and hold it forever. Like, forever is not a good strategy. So, you know, how are you going to refinance this property in a future time? And if you're gonna refinance it, why would it work to refinance? Are you going to add value to it?

Glen Sutherland: 05:55

Are you gonna buy it at a discount? Like, you need to be doing something. You need to be doing something. Not just buying turnkey properties. I wouldn't I would honestly wouldn't advise that because if you're banking on appreciation as your exit, it's not the market for that.

Scott Dillingham: 06:14

Yeah. No. And I I agree. And kinda like you said something there too. You didn't say the word, but you're talking about is is leverage, right, as well.

Scott Dillingham: 06:22

Because if you don't have the correct leverage, how can you grow your portfolio, right, if you're buying everything, cash? So that's definitely one of the things that I encourage investors to do, right, is compare leverage. Right? If you can get leverage in Canada, great. Compare it to the states, see what that looks like.

Scott Dillingham: 06:39

But if you're gonna buy cash, right, it it will limit your growth

Glen Sutherland: 06:42

for sure. Yeah. And then like, you know, I know

Scott Dillingham: 06:45

you work for both sides.

Glen Sutherland: 06:47

And like, you know, depending on where, you know, talk to somebody like Scott figure out what kind of interest rates based on your experience in the US and what your interest rates in Canada are, because it you might have a at least to get your feet in the door to get started, it might be the the cheapest money might be your line of credit or your home equity line of credit in Canada that you can move to the US. It might be going straight into the US lending. Right? So I think it's about having that conversation first to make to understand which is gonna work the best. And if you can find somebody like Scott that works on both sides, they can be a one stop shop instead of contacting several people.

Glen Sutherland: 07:22

And one kind of, you know, American lender does understand the Canadian lender sort of, you know, if you're forwarding emails back and forth to For sure.

Scott Dillingham: 07:29

To each of them. Yeah. That's always the hard part is when a Canadian does go to a US broker and they're like, no. Sorry. We don't have 4 national lending.

Scott Dillingham: 07:39

And it's like, there's so many lenders out there. But so so being in this, I haven't been in this world as long as you have. I mean, I've I've born in the States, moved to Canada when I was 4. I always wondered what I was gonna do with my status. Right?

Scott Dillingham: 07:57

And and then hit me the one day to open up the lending. But you've been doing this for many years, and and now, right, I I believe you are a coach, and you have your own programs to help Canadians. And I think that's really important because what I see when I speak to Canadians is, like, how do I do this? Where do I start? What's next?

Scott Dillingham: 08:13

What type of entity? All that stuff. And I know you go over all of that. So I'd love for you to talk a little bit about your programs and what you do to help investors. Because I know there's so many that would move forward if they

Glen Sutherland: 08:25

had a clear path to do so. Yeah. So we we cover everything right? The idea is that if you take the program, you should be able to replicate what I do. There's I'm not the kind of person that's hiding it, or I don't I'm not selling up for a second course, you know, to to charge you more money a second time.

Glen Sutherland: 08:44

To charge more money. So, like, off the start, we're gonna be, like, starting with the basics, understanding the differences between Canada and US. Honestly, answering the biggest question is the market, like, where to invest in the United States. They're literally 10 times the size of Canada. They have so many cities, so many states, with all different regulation, trying to figure that all out and negotiate or navigating that.

Glen Sutherland: 09:07

In a rush. Setting up your corporate structure, and we actually have, like, some special discounts with some attorneys to set this up so that they'll actually be much cheaper price, like, literally 50% of what the regular attorney price is just because of the volume. You know, setting up your corporate structure, understanding all the laws, the FIRB, the FAPI, the like, what what what how Canada Revenue looks at this, how the IRS looks at this, understanding all the different advantages of the US. For instance, I'm not talking like, you know, just, you know, the evictions and all that stuff that committing the state. I'm talking, like, the advantages oh, man.

Glen Sutherland: 09:45

I lost my try try the fun. But, like, you could oh, oh, all the different structures. So sorry, strategies. Yeah. So, like, you can do subject to in the United States, which, like, is not as easily done in Canada, which is inheriting a mortgage or splitting a mortgage from the lienholder and the debt on it, and just and and, you know, let them keep the, the debt, and you take the ownership, which isn't really a strategy that happens in Canada.

Glen Sutherland: 10:09

So understanding how to do that, paperwork to do that, how to set up a a contract for deed, a lease option, how to buy from the banks, how to do short sales, how to do foreclosures, how to do tax deeds. Like, there's a just a lot of stuff. And a lot of people are gonna say, well, I don't really need to do that. And so you don't have to do all of that stuff. It's just all there.

Glen Sutherland: 10:30

But you'll find if you understand and know all of these things, something will trigger you. Like, you'll you'll be talking to someone and they'll be they'll they'll say something that you'll go, wait. And it might might be because you're like, I don't wanna talk to make phone calls. I don't make phone calls. But you're like, you're talking to a property manager.

Glen Sutherland: 10:47

Make make a connection. You have, like, they might say something like, you know, I don't need the money right now. Right? And then you're like money right now. Light bulb.

Glen Sutherland: 10:53

Wait a sec. What were all the different ways we could do this? How could we structure this so that I could get very little money down? How could I make this so that it's a great win win for both of us? And I think that a lot of it is just to be able to understand all of the differences, all the the that happen between Canada and US and understand how to implement them.

Glen Sutherland: 11:13

And even just being in the coaching program, we have questions when you're you're doing a deal analysis. Those are the biggest questions or what I usually am on the phone or on a Zoom call with my students is, is that they're just like, hey, this is the deal. Can you check to make sure these comps are good? Because I don't wanna make mistake or they just have questions that you just need somebody to make fewer mistakes, just to ask those questions, right? Or like, I just got my E2 visa and Social Security number.

Glen Sutherland: 11:41

You don't need that to invest. But you like, if you have questions or wanna know how to do it, like, just to have someone to bounce those questions off of is is really important. Because, you know, except mistakes can be very expensive. If they're done wrong, you could lead to double tax if your corporate structures aren't done in compliance for Canada Revenue. There's a lot of different things that you're kind of juggling and just to shortcut the whole thing is, I would have bought it myself.

Glen Sutherland: 12:07

And that's why I keep the price low. Because I want it to be affordable for, you know, that what I would have paid at that time whenever I wasn't making the kind of money I make.

Scott Dillingham: 12:15

And you're right. You you bring up so many good points about all the different ways to save money. And like, one of the biggest ones, the easiest thing, and you know it. Right? When I tell you, you'll know it.

Scott Dillingham: 12:26

But, like, Canadians, when they go to buy over there, they're like, okay. I'm gonna offer a lower price. Okay? And that's great. And and a lot of times, you can get a lower price, but it's actually more effective.

Scott Dillingham: 12:34

And I know you know this, is to get a seller credit, right? Get the seller credit, use that to even buy down your interest rates if you're borrowing for lending or use it for your closing costs, right? Like, you can do all these different things. Because in Canada, you can't get the credits. I mean, you can.

Scott Dillingham: 12:49

Yeah. But what happens is the lenders lower the purchase price by the equivalent of the credit. Right? But over there, that doesn't happen. The lenders will finance that.

Scott Dillingham: 12:58

So just with that seller credit and buying down your rates, that can save 1,000 and 1,000 of dollars. Like, it's so much better than lowering the purchase price, obviously, do both, right? Get the lower purchase price and the credit if you can. But little things like that, right, which I know you go over in the course. So that's awesome.

Glen Sutherland: 13:15

Oh, yeah, I have a whole calculator for the buy down rates that you just mentioned. Like the the idea with a buy down rate is you could pay a little bit more in fees upfront, but get a lower interest rate. And what I like to do is you need to figure out what the breakeven point on that is like how many years do I have to hold this property to pay for those extra fees I'm putting to get the savings, right? And every it's just a chart, right? Everything makes a breakeven point.

Glen Sutherland: 13:37

And you're like, it has to make sense. If I'm you're like, Hey, I'm doing a 2 year project. But my breakeven point is 3 and a quarter years, you're like, well, let's just pay the higher interest rates.

Scott Dillingham: 13:47

So it's just but it's about making smarter decisions. No. It's it's it's really, really cool too. Right? And then obviously, cash flow.

Scott Dillingham: 13:52

Do I need to buy on the rate to lower the cash flow and or increase the cash flow? But a lot of Canadians, they don't understand what they do over there. So, like, in Canada, let's say you go to RBC. I'm just gonna pick them. Your mortgage is gonna be with RBC forever.

Scott Dillingham: 14:07

Right? So you you have to. But in the states, what they do is, Rashid, when you get your mortgage, they actually sell the debt. You know, and it might be a couple months later, because sometimes they'll group a bunch of mortgages together and sell it. But that's why they're really willing to accept you paying them the fees upfront and getting that lower rate.

Scott Dillingham: 14:26

Because in their mind, they're like, I don't care. I'm selling the debt. So if I can make extra money now, why not? Right? So I will say that for every Canadian, when you get your mortgage statement every year, it might reflect a different company every year.

Scott Dillingham: 14:39

But, the terms that you get and everything that you get are locked in. Okay, so the debt, even though it's being sold, it's not going to alter anything, for you. So since you brought some That's on Barb. So let's say Sorry?

Glen Sutherland: 14:54

I got one thing to add, because I know that it'll be a faux pas if you bring this up. But one thing that Canadians may not understand, because a lot of them, they have that comfortable that they're comfortable with this Canadian banks or do other Canadian banks that, you know, the BMOs, the other ones are all down there as well. But you if you're gonna go down that path, rather than, you know, talking to a broker like Scott here, you're gonna have to personally qualify with those banks. And you really should understand what kind of liability you're you're taking on compared to not personally qualifying, putting this in a corporation, because of the different taxes, how your taxes are gonna be changed by paying it personally. Okay.

Glen Sutherland: 15:32

When you sell the property, if you sell it,

Scott Dillingham: 15:34

it could

Glen Sutherland: 15:34

be subject to FIRPTA. You could be subject to double taxation, depending how this is set up. So well, it's one of those things that, you know, if Scott brought it up, you're like, oh, it sounds like he's just preaching my own thing, but it is true. And it is something you should understand the risks you're taking and even the personal liability that someone could sue you, if you this property screws up in the US that if it's personally liable, they could be coming after your assets in Canada. Whereas if it's a corporately liable, it would be broken by the corporate value.

Scott Dillingham: 16:04

And I didn't wanna bring that up. Yeah. And that's that's a great point. And and and you're right. I I didn't bring that up just to, like, I didn't wanna stir the pot.

Scott Dillingham: 16:12

But you are right. The the Canadian banks that lend over there, it's very restrictive. It's personal name. It's based on your debt ratios instead of property. They also have limits.

Scott Dillingham: 16:22

Like one of the banks will only let you have 3 properties. And if you own over here, then you're done over there. Like, if you've got 3 here, then you can't even buy over there. So it's, it's very restrictive. And a lot of clients think that that is their go to.

Scott Dillingham: 16:36

But you're right, you nailed it with the liability. The US is very sue heavy. It is compared to Canada. Right? So to own things in your personal name is such a big risk compared to putting a property in an entity and having that isolated from yourself.

Scott Dillingham: 16:54

So you're right. It's, it's a massive thing. Now, for those that are listening, that wanna take the next step, but maybe haven't, or they've been hesitating, how do they find you? Like, how do they join your course?

Glen Sutherland: 17:04

How do they get access to you? Yeah. Well, there's a million different ways. I'm on everything. If you just type my name in, it'll show up.

Glen Sutherland: 17:12

But, I do a podcast. Probably the easiest way to get a feel of, you know, how I do things, but I'm Canadian investing in the USA or US. I don't remember which way it is on on iTunes and Spotify. But you can find me there. That links we do a Facebook group which we share lots of information in.

Glen Sutherland: 17:28

It goes by the same name, facebook.com/acanadeanvestingintheusa. You know, if you wanna get on a 1 on 1 call, just, reach out. Send me a text. Send me an email. My information is on my website.

Glen Sutherland: 17:41

That's my actual cell phone number that'll actually go to me. And like I I'm here to like, I've been through it. I've done a lot of mistakes. I've learned a lot. I've refined it every single time.

Glen Sutherland: 17:52

And I don't want you to do the same thing. Let's let's skip some steps. No, that's that's awesome. And you know what? I just wanna throw this out there too.

Glen Sutherland: 18:01

There's a

Scott Dillingham: 18:01

lot of people that live in their mom's basement that offer investing advice in trying to sell coaching programs. And I can honestly tell you that I know for a fact that Glenn is an investor in the States. I know that he is. And and I want you to know that he's not somebody, again, that lives in their mom's basement that has this overpriced course. And and and they've not taken action on anything that they're trying to teach.

Scott Dillingham: 18:29

Right. So I think that is a really big, especially in today's market, where you hear people going bankrupt, and that coach went under and this one went under or that one lied, that one's being sued. Right. The great thing with Glenn is he is an investor. You can look me up as well.

Scott Dillingham: 18:45

I'm an investor, multi property owner, and we're giving you the advice from experience. So that really speaks, a volume when you guys are researching or deciding to purchase product. So awesome. Well, thanks so much, Glenn. I really appreciate you coming on, and I'm looking forward to, seeing you grow.

Glen Sutherland: 19:06

I appreciate it. Well, I'm already growing quite a bit. I'm actually thinking of, like, degrowing. Yeah. Getting it down to a a reasonable amount of properties because right now, it's a lot.

Glen Sutherland: 19:14

Anyway, no. I I appreciate you coming having me on the show. This was, a lot of fun, and, I love talking real estate.