So does the crate go inside or outside? Can I do either way?
If you would like to keep him inside overnight and get him fully toilet trained than I suggest having the crate inside. Take him outside for a toilet break just before you go to bed than once again in the middle of the night say around 2 or 3 am, but if you hear him sooking it could also be because he needs to go outside for another toilet break so take him then too just in case. You will find in no time he will get used to this procedure.
I think if you put the crate outside its not teaching him not to "potty" inside, its only teaching him not to potty inside the crate, so unless you want to end up having him crated everynight i dont think it would work. They get used to going straight outside for potty as soon as you open the crate and thats how its always worked for me in the past and eventually you can trust them not to potty inside the house as they will generally go and try to get out the door to go outside.