In this episode of the Wisdom Lifestyle Money Show, host Scott Dillingham shares a streamlined approach for Canadians and foreign investors to obtain an ITIN (Individual Taxpayer Identification Number) in as little as two hours to facilitate US real estate purchases. As the president of LendCity Mortgages, Scott explains how his company, which specializes in investor-focused financing across Canada, the US, and Mexico (with a recent soft launch there), addresses common hurdles for investors. Drawing from interactions with nearly 1,000 investors over the past year, he notes that 90-95% get stuck at the entity setup stage due to processing delays, complexity, or timing issues that could cause them to miss out on properties.
Scott highlights the advantages of using an entity like an LLC over personal name purchases, including access to more lenders, better mortgage terms, and liability protection amid the litigious US environment. He cautions that personal name holdings may risk double taxation between the IRS and CRA, though he emphasizes consulting a tax professional for personalized advice, as individual situations vary. To overcome delays, LendCity pre-sets up entities using Scott's US citizenship for quick EIN acquisition, then assigns them to clients within two business hours—no magic, just proactive innovation. This service is free for LendCity mortgage clients, with only the accountant's competitive fee required; non-mortgage users pay a small additional fee. As of November 2025, standard IRS ITIN processing times are approximately 7 weeks (9-11 weeks during tax season), while foreign EIN applications via mail or fax take 4-6 weeks or more, confirming the value of this expedited option.
The episode also covers building US credit, as most investor mortgages don't report to bureaus—Scott recommends US credit cards and banking products for better future rates. He stresses the importance of having the entity ready for pre-approvals and offers, with options to rename or transfer it based on the purchase state. For accuracy, note that while LLCs provide benefits, some tax experts warn they can lead to double taxation for Canadians due to CRA treating them as corporations, potentially limiting foreign tax credits; personal holdings often allow better flow-through with credits to avoid double tax. This practical guide empowers investors to act swiftly, blending LendCity's services with tips for long-term success in US real estate.
Key Takeaways
- Entity Setup Hurdles for Investors: 90-95% of Canadian investors stall at forming US entities due to 4-8 week delays, risking lost opportunities; LendCity's pre-setup inventory allows assignment in 2 business hours.
- ITIN vs. EIN Clarification: While the episode refers to quick ITIN assignment, the process likely involves instant EIN for pre-formed LLCs via a US resident, with ITIN needed later for personal tax filing—standard IRS times are 7-11 weeks for ITIN and 4-6 weeks for foreign EIN.
- Personal Name Risks: Buying in personal name may expose you to liabilities and potential double taxation (IRS and CRA), per professionals; always consult an accountant, as entertainment only.
- LLC Benefits: Entities like LLCs offer liability protection, access to more US lenders, and better mortgage terms; however, updated 2025 tax insights show LLCs might cause double taxation for Canadians due to CRA's corporate treatment—consider alternatives like LPs.
- No-Fee Service for Clients: Free for LendCity mortgage customers (just pay accountant); includes strategy sessions, renaming, and state transfers; non-clients pay a fair fee.
- Building US Credit: Investor mortgages typically don't report; use US credit cards and banking to establish a score for lower future rates.
- Broader LendCity Offerings: Specializes in US investment mortgages (fix-and-flips, rentals); expanding to Mexico; book a free strategy call to discuss goals.
Links to Show References
- (00:04) - Introduction to ITIN and Real Estate
- (01:25) - The Entity Setup Challenge
- (03:39) - Innovating the ITIN Process
- (05:52) - Helping Investors Move Forward
- (08:22) - Building Credit in the States
