Insurance is a critical piece of owning and protecting any piece of real estate. Is it a good idea to self-insure your rental property? That’s the first question I’m answering on this Q&A edition of Investing in Real Estate!
On today’s show, I’m answering three of your great questions about self-insurance, self-directed IRAs, and how to invest in US real estate from Canada. We’ll also talk about living the life you want now, the importance of being empowered in your financial freedom, and more. Click play to hear my answers to your questions.
On this episode you’ll learn:
- The risks of self-insurance.
- What to consider about self-directed IRA rules.
- How to buy US real estate as a Canadian investor.
- And more!
The Risks of Self-Insurance
In general, I wouldn’t recommend insurance on property. You’d need a large chunk of cash set aside in the case of a major emergency like a fire or flood. It can be very expensive and unpredictable to utilize self-insurance. I’d recommend pursuing other options, especially if you plan on getting a loan on the property’s equity.
What to Consider About Self-Directed IRA Rules
One of the drawbacks about using a self-directed IRA is that there are a lot of rules and regulations. You can’t use sweat equity, you can’t deal with disqualified persons, etc. If you have a specific scenario you need help with, either reach out to your custodian directly, or give our team a call at morrisinvest.com
How to Buy US Real Estate As a Canadian Investor
Canadian real estate investors can buy rental properties in the US, as long as they are willing to go the extra mile. You’ll have to set up US bank accounts and entities, and consult with tax accountants and lawyers. At Morris Invest, we work with international investors and we can help guide you through the process. Another great resource is the law team at Corporate Direct.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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