Get access to the American urban renaissance

by David Kitai on 05 Aug 2020

Jay Walsh says he can give investors exposure to the new growth of American city centres. Walsh is the co-founder of Income Producing Properties (IPP) USA, and at the Canadian Real Estate Wealth Investor Forum on August 13th, he’ll be talking about a whole new way for Canadians to invest in U.S. Real Estate.

A Philadelphia native, Walsh has built IPP to offer investors access to low cost housing in parts of Philadelphia, Baltimore, and St. Louis on a growth trajectory. He picks neighbourhoods where properties are still a bargain, but employment numbers and tenants’ take-home pay are strong. In some cases, too, investors are buying into urban neighbourhoods poised to boom in the renaissance of American downtowns.

“We look for properties low in purchase price and high in cash flow in cities on the upswing,” Walsh says. “We're looking for affordable rental housing that can get investors high cash flow. We're not going to buy a condo in Manhattan that makes you a 2% Return net and the cheapest cost of entry is a half a million dollars. We're talking about buying property that costs on average $100,000 U.S. and will make you net eight, nine, or ten per cent cash on cash with no leverage.”

$100,000 seems like an impossible price for any property to a Canadian investor. Walsh says that in most of the world, that kind of cash won’t get you more than “a nice kitchen,” but in cities like Philadelphia you can find centrally located properties, newly renovated and ready to rent at that price point. They’re markets full of good tenants and consistent rental income that haven’t been the focus of international real estate investors the way somewhere like Manhattan has been. In seeing opportunity where others haven’t, Walsh and the IPP USA team are offering investments with strong fundamentals at a low cost of entry. 

Walsh says that investors get more than just a chance to buy these properties by partnering with him an the IPP USA team. They get a partnership that includes property managers, renovators, contractors, and Walsh’s own team of real estate experts who can break down the intricacies of each real estate and rental market. They partner with a Canadian accountant, too, who can guide Canadian investors through the American tax process, corporation and entity forming, and advice on the necessary moves.

They also get mortgage pre-approval. Walsh has secured pre-approvals for any interested Canadian buyer as a means of financing these investments. Walsh says he can do this because his lender cares less about the buyer and more about the property.

In the COVID era, the remote partnership can serve investors well. Walsh says his team has already set up the capacity for virtual viewings. Property management is completely hands-off for the investor owner, even finding tenants can be taken care of by Walsh’s team on the ground.

At the Canadian Real Estate Wealth Investor Forum, Walsh will break down exactly what investors get at IPP USA and how they can benefit in cash-flow and in capital appreciation through an investment in these up and coming American cities.

“These are appreciating cities,” Walsh says. “Even during COVID, in Philadelphia the appreciation after COVID is higher than it was going into the pandemic. These are properties we manage with exit strategies for all our buyers. We can help them sell the property when they want to sell the property and maximize returns while they hold it.”

To hear from Jay Walsh and other thought leaders in the real estate investment space, register for the Canadian Real Estate Wealth Investor Forum here.

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