The Canadian Dollar is Down What do I Do Now?

02

Feb
2015
Posted By : expresscapitalmtg 0 Comment
Categories :Canadian Financing

The Canadian dollar or the Loonie as it is more commonly known, has certainly taken a big hit when compared to the US dollar.  Many Canadians are hesitant and rightfully so about bring funds south of the border to invest in the ever improving US real estate market.  On a daily basis the team at Express Capital Mortgage Inc. talk with Canadian clients who are pulling back the reigns in the US because of the current lack of purchasing power they have with the Canadian Loonie.  The bad news is nobody knows when that may change, but the good news is there are most certainly great options for those clients.

One of the characteristics we often find when speaking with our clients is most of them have purchased US property in the past and most likely did so with cash.  They now own free and clear properties with 100% equity.  5 years ago if a Canadian wanted to take that equity and turn it into cash to either take home or invest in another property they had two options…

1) sell sell sell, cash the property in and use the money for whatever they wanted to.

2) Hard money financing…financing at 16-20% with a 6 month to 5 year terms. (I said it was an option… not a good option, just an option)

The issue with option #1 is this usually defeats the purpose of purchasing an income property.  If you do not have the property you cannot make an income.  The problem with option number 2…well that is pretty evident…high rates and higher payments. Express Capital Mortgage Inc. is here to offer option #3.

US bank financing on investment properties is now available.  Keep your Canadian money in Canada and use the US properties you currently own to your advantage.  Leverage the equity out and go looking for a property which have values which continue to climb and produce an income at the same time.  Terms for these products are similar to what Canadians are use to seeing and the rates terms are outstanding.

Now is the time to take advantage of an improving market, save yourself some money, and improve your US real estate portfolio all at the same time.  Just ask us how.

 

 

Why Should I know about Canadian Finance if I’m a Realtor?

10

Jan
2015
Posted By : expresscapitalmtg 0 Comment

It is the beginning of a new year and everyone around you is making new year’iStock_000020008559Larges resolutions.  All the old standbys are there…I am going to work out more…I’m going to eat healthier…I’m going to  stop eating an entire large pizza by myself when I have the chance.  OK maybe that last one is mine, but you get the picture.  Instead of making a resolution which will probably get broken anyway.,.how about taking some quick and useful information from here and promising yourself to apply it at least once the remainder of the year.  Not really to much to ask and it’s healthier than eating an entire pizza.

As a Realtor you are always looking for ways to drum up business.  Times recently have been slow but we all are beginning to see a turn around in the market but more business is never a bad thing. Go back through your book of business and reach out to the Canadian clientele you have worked with or spoken to in the past and let them know you surprised and excited that you just found out that Canadian investment finance is available here in the US.  I guarantee if they have not worked with Express Capital Mortgage INC.  before they will have had no idea either.  This does two things for you as a Realtor…

1)  A friendly call to a client  you have not spoken to in a while.  Always good to have a reason to call and not just a cold call. Your providing them with information I promise you they don’t have…you are providing a benefit to your client.

2) Right now the exchange rate  is not really great when bringing funds from Canada to the US, but with Express Capital Mortgage INC.  they keep those US funds in the US and minimize the amount they need to bring over the border.  We can leverage that equity they have been building in the properties they bought for cash three years ago…and go buy something else.  That is where you come in.

This is simple, painless, and a great change to get a fruitful conversation started.  Don’t don’t eat a pizza this new year…make a phone call instead.

 

WHY SHOULD I INVEST IN THE PHOENIX MARKET?

05

Dec
2014
Posted By : expresscapitalmtg 0 Comment

commerical-property-financingIf you are in the real estate business here in phoenix you have most certainly heard the rumor that investor money has moved to other parts of the country. On the surface this may appear to be correct.  Markets in Atlanta, Florida, and Texas have certainly seen an up tick in investors from outside the country mainly from Canada and China. With a shrinking inventory here in the valley and the market flattening out it does feel like it has moved elsewhere. Opportunity though still abounds in the Phoenix market for foreign investors.

In 2013 the Arizona Office of Tourism reported more than 770,000 Canadians visited Arizona, which makes up about 52% of international travel spending according to Visa credit card travel spending numbers.  Phoenix is a destination for many because of the weather (average winter temp of 60 degrees), recreational opportunities, and strong real estate market.  Short term rentals for events like the Superbowl and MLB spring training are everywhere in the Valley.

The real estate market is strong but deals can be found with little difficulty.  Commercial and multifamily units are and investment opportunity many foreign national buyer are taking advantage of.  Property taxes in Arizona are considerably less compared to the rest of the country and renters are numerous.

The inventory has been shrinking which means the prevalence of renters is abundant.  Many of those renters are quickly approaching the end of their stay in the “foreclosure/short sale Penalty box” and will be looking to make their post recession purchase.  With this influx of buyers the inventory will most certainly dry up pushing values even higher.   Builders are beginning to purchase land again as well as starting new developments, a great sign for the future.

The phoenix market has had it’s troubles but the future looks bright and the opportunity to be a part of that is here now.