Next Level investing part 2 of Commercial RE Investing

Sept 9, 2021

So it took me over a week to compile my documents for my Mortgage broker. It was an daunting exercise, but I was able to do it in about 10 hours. I am a firm believer in the philosophy of he who is organized and documents everything wins. It works in arbitration-law and especially in business. This seems to be an extension of my time working in production. The lesson there is that when doing repetitive activities, if you can save a few seconds on the same action that is done 1000 times, the productivity can be increased greatly. In business, the action is no so repetitive, but being organized and knowing where to access information can be the difference in acting with confidence as opposed to acting with uncertainty. The documentation took about 5h, but there was a lot of "other" information that was needed for the Mortgage broker needs to know about my plans and goals. I see the second part as critical as it not only should affect the current mortgage, but should help me to set up my corporate structure more efficiently for future investments and mortgages as well. My meeting with my MB is scheduled for early next week. The MB that I have chosen also has an investment advisory part of the company which I have also signed up for. It is not a small investment, but I expect to save a lot in taxes, via an efficient set up and possibly an extra 0.25% of a future mortgage would easily pay for this service.

One of the interesting things about taking the step with the MB is that I actually do not have an individual property that I am looking at. The MB requested documents ask for the details of the property that I am going to make an offer on. They are asking for existing leases, expenses etc. I have a set of criteria that I put the property through but whether I get an accepted offer on a particular property is not the highest goal. At this stage, shifting to commercial mortgages, it is more important that I understand the principles and general guidelines that I need to consider when making an offer on a typical investment.