In this episode of the Wisdom Lifestyle Money Show, host Scott Dillingham chats with Derek Wormsbecker, a mortgage agent at LendCity who specializes in helping Canadians invest in US properties. Derek shares his journey from starting as a real estate investor in Canada by renting out his first townhouse, to selling properties and redeploying capital into the US market. Motivated by rising costs and tenant issues in Ontario, he partnered with Share—a company founded by Andrew Kim that guides Canadians through US investments—to purchase a brand-new construction home in Arkansas for $176,000 USD. With Share's support, including entity setup, banking, and inspections, the process was seamless, and the property now generates steady US income under landlord-friendly laws.
Derek highlights key differences between investing in Canada and the US, such as lower entry barriers, no strict rent controls, and favorable eviction processes. In Arkansas, non-payment of rent remains a criminal misdemeanor, with fines of $1-$25 per day after a 10-day notice, making it the only state with such provisions. He plans to sell another Canadian rental this year and invest in states like Ohio or Michigan, where prices are competitive. Scott and Derek discuss market fundamentals, noting excitement around developments like Google's $2 billion data center in Northeast Indiana, which is under construction and includes collaborations with local colleges. However, they caution on Ohio's Intel factory, which is proceeding with construction but has faced delays and controversies, including calls for CEO resignation in August 2025.
As a mortgage expert, Derek explains US financing for Canadians focuses on property cash flow rather than personal credit or income, with access to over 450 lenders through LendCity. He emphasizes the advantages of working with specialists familiar with foreign nationals, avoiding common pitfalls like higher rates on small loans under $110,000 in some states. This episode provides practical insights for Canadians eyeing US opportunities, blending personal experiences with updated market trends for building cross-border wealth.
Key Takeaways
- Starting Small in Canada: Derek began investing by keeping his first townhouse as a rental, using private sales tactics to avoid high commissions, and gradually building a portfolio before shifting focus to the US.
- Transition to US Investing: Sold a Canadian property to buy a new-build in Arkansas for $176,000 USD via Share, benefiting from hand-holding services like entity creation, inspections, and a one-year builder warranty.
- US vs. Canada Advantages: Landlord-friendly laws, lower capital requirements, US currency earnings, and no rent controls allow better cash flow; Arkansas treats rent non-payment as a criminal offense with daily fines.
- Market Selection Tips: Look for growth areas like Ohio and Michigan for affordability, but research fundamentals—e.g., Google's Indiana data center boosts demand, while Intel's Ohio project faces ongoing delays as of November 2025.
- Financing Caveats for Canadians: US loans prioritize property viability over personal docs; expect higher rates on small loans, and use specialists like LendCity for access to 450+ lenders tailored to foreign investors.
- Future Plans and Advice: Derek aims to refinance Arkansas and add more US properties; investors should verify reassessments on taxes and avoid cheap buys without strong employment drivers.
Links to Show References
- LendCity Mortgages (for US Investment Financing): lendcity.ca
- Share (US Investing Support for Canadians): Search for Share Real Estate or visit via Erwin Szeto's resources at iwinrealestate.com
- (00:04) - Welcome to the Show
- (01:11) - Investing Across Borders
- (02:53) - The Journey Begins
- (05:44) - Challenges in Investing
- (07:22) - Future Plans and Strategies
- (09:04) - Advantages of U.S. Investments
- (12:09) - Understanding Market Dynamics
- (14:09) - Exploring Different Markets
- (16:46) - Financing Insights for Investors
- (20:54) - Working with Mortgage Experts
- (23:29) - Connecting with Derek Wormsbecker
