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
• (00:54) - Chris's US Investing Journey: Fix & Flips and BRRRs
• (02:02) - Why Canadians Are Moving to US Real Estate for Cash Flow
• (04:41) - Why Work With a Canadian-Focused Mortgage Team
• (07:43) - Future Markets: Scaling to Texas and the Sunbelt States
• (09:53) - US Loan Qualification: Asset-Based Lending Explained
• (11:35) - Down Payments, LTVs & Current Interest Rates
• (13:12) - Rate Buydowns, Open Mortgages & Long-Term Loan Terms
• (15:51) - Setting Up the Right Entity to Avoid Double Taxation

Here are the top three ways I can help you:

1. Gain Access To Your Weekly Investor Insight
2. Book A Strategy Call With An Expert On The Team
3. Access Our Investor Resources

Please follow and Rate us 5 stars because it helps us so much!

Scott walks through the equalization rules that apply in most Canadian provinces, explaining that when married couples separate, the law generally requires that real estate equity be split between spouses — even in cases where the property was purchased before the marriage began. He highlights how JV partnerships can become complicated when a co-investor's relationship breaks down, and why it's critical to have protective agreements in place long before you need them. These are real scenarios Scott has witnessed with clients throughout his career, and the lessons are invaluable for investors at every stage.

From a mortgage qualification standpoint, Scott explains why Canadian lenders require a formal separation agreement — or at minimum a signed affidavit — before advancing any financing during or after a separation. Support payments, alimony, and child support all factor into debt ratios, and lenders are specifically trained to flag deals where a married applicant appears without their spouse. Scott shares how some lenders flat-out refused to proceed without both spouses on the application, demonstrating how serious this issue is in real-world financing scenarios.

Scott also outlines practical protective strategies for savvy investors, including co-habitation agreements, marriage contracts, and the benefits of holding properties in a corporation. He emphasizes the importance of negotiating asset splits internally between separating spouses before engaging divorce lawyers — saving thousands in legal fees while retaining more control over outcomes. Perhaps most importantly, Scott urges investors to have asset protection conversations early in a relationship, before emotions run high and the stakes feel personal.

Key Takeaways

• Canada's ~40% divorce rate makes asset protection planning essential for real estate investors — don't assume it won't happen to you.
• Most provinces require equalization of real estate assets during divorce, including properties you owned before the marriage began.
• Lenders require a separation agreement or signed affidavit before processing mortgage applications for separating spouses, and they actively screen for signs of divorce.
• Support and alimony payments are counted as liabilities in mortgage qualification, reducing borrowing power for both parties.
• Co-habitation agreements and marriage contracts can protect pre-existing assets and inherited wealth from being divided in a separation.
• Corporately held properties may be treated differently during divorce proceedings — speak with a lawyer and accountant to understand the advantages.
• Settling asset divisions internally between spouses saves significant legal fees — a signed affidavit costs a fraction of what contested divorce proceedings do.
• Separate debts and liabilities as quickly as possible during a split to protect your credit score from a former partner's missed payments.

Links and Show References

No external resources were mentioned in this episode.

If this episode got you thinking about how to protect your real estate portfolio — whether you're planning ahead or navigating a separation right now — the team at LendCity is here to help. Scott and his team specialize in creative mortgage solutions for Canadian real estate investors, including complex situations involving separation, partnership changes, and portfolio restructuring. Visit LendCity.ca to book a free strategy call and get expert guidance tailored to your situation.

• (00:00) - Introduction: Divorce and Real Estate Investing
• (00:32) - Canada's 40% Divorce Rate
• (01:08) - Provincial Real Estate Equalization Laws
• (02:22) - Mortgage Qualification Challenges During Divorce
• (05:03) - Properties Owned Before Marriage
• (05:40) - Co-Habitation Agreements and Marriage Contracts
• (06:33) - Corporately Held Properties
• (08:08) - Settling Assets Internally to Avoid Legal Fees
• (09:52) - Protecting Your Credit During Separation
• (11:03) - Early Asset Protection Conversations

Here are the top three ways I can help you:

1. Gain Access To Your Weekly Investor Insight
2. Book A Strategy Call With An Expert On The Team
3. Access Our Investor Resources

Please follow and Rate us 5 stars because it helps us so much!