Finding investors is one of the key factors in running successful multifamily syndication. One way you can increase your chances of finding them is by opening your doors to foreign investors. And sometimes, you do not need to look far as there are a lot of interested investors in our neighboring country, Canada.
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In this episode, we pick the brains of August Biniaz and Ava Benesocky, founders of CPI Capital. August and Ava have been Canadian real estate professionals who fell in love with the apartment syndication concept and developed a compliant and tax-efficient process for Canadians to invest in US multifamily syndications. Tune in now and learn how you can welcome Canadian investors into your business with ease!
Key Points From This Episode:
- August and Ava explain why it is difficult for Canadians to invest in US real estate.
- August and Ava share their background and journey in real estate.
- The differences between the US and Canada’s taxes, cap rates, and cash flow.
- The problems Canadian investors face when investing in US multifamily syndication – they are not widely accepted, they pay double tax when using their own LLC, and educational real estate contents are generally US-focused.
- How can Canadian investors be relieved from double taxation?
- The tax treaty between the US and Canada that is beneficial to Canadian investors – foreign tax credit.
- What do operators need to know when a Canadian investor is investing in the syndication?
- What are the steps Canadian investors need to take to be able to invest in US syndication?
- August shares how they create a fund so Canadians can invest in the US.
- The common questions and concerns Canadian investors have when it comes to US multifamily syndication.
- The incentive for Canadian investors when investing in US multifamily syndication.
- What is the biggest risk for Canadians when investing in the US?
- How do August and Ava make sure that an operator is prepared for a downturn?
- August and Ava’s predictions in the real estate market over the next six to twelve months.
- The daily habit that helps August and Ava achieve success.
- August and Ava’s best source for meeting new investors – LinkedIn.
- The number one thing that contributed to August and Ava’s success – resilience.
- How do August and Ava like to give back?
“Canadians are conservative people and to invest internationally, and having to invest in the US especially in the multifamily side where there’s lots of moving components, you know, there’s an operator, there’s a property manager, financing, there’s lots of barriers to cross for Canadians.” [0:01:37]
“In real estate, you’re investing in a tangible investment.” [0:16:33]
“We feel very bullish about the multifamily moving on even post-Covid and through Covid.” [0:19:08]
Links Mentioned in Today’s Episode:
About August Biniaz
August Biniaz is a real estate developer with a passion for sharing his knowledge and helping others reach financial freedom. He is the co-founder of CPI Capital, where he enables investor partners to earn substantial returns by investing in multifamily properties in the hottest US markets.
He educates his investor partners about Apartment Syndication Investing through the CPI Academy platform, Webinars, MeetUp Groups, and one on one coaching. August brings to CPI a breadth of experience and knowledge with over 15 years in real estate, business, and investing.
About Ava Benesocky
Moving from Alberta, the hustle of Vancouver did not intimidate Ava Benesocky. Coming from a family of accountants, Ava valued hard work and compassion above all. She became one of the youngest award-winning agents at REMAX and was unstoppable thereafter. Fearless and ready to write her own story, she moved to Vancouver, where she built strong networks with her clientele. She continued to learn and grow with resilience and persistently gained knowledge in the field of real estate.
After gaining a good amount of exposure, she realized that alternative investment vehicles are important and quite often overlooked assets that her clients needed. Following this, she co-founded CPI Capital. CPI Capital’s core value is to democratize Real Estate investing. Ava Benesocky has built a uniquely innovative company allowing Canadian investors to invest in US Multifamily Assets and benefit from Foreign Tax Credit, Pooled Capital, Limited Liability, and Preferred returns.
Ava continues to speak on many platforms and has been featured in publications such as Forbes, all in the attempt of spreading the word about building wealth for Canadians through US Real Estate.
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