All Forum Posts by: Stephen Fryer

Just PM'd you. 

Hey there @Alex Barron.

I have multiple properties in C type areas and haven't really had a problem finding tenants. Depends on the property, the rent and the property manager. 

Hey @Arthur Wong

I feel your pain. As a fellow Canadian investing in the US., I've faced some of the same challenges for financing. I've been doing fix and flips and turnkeys with private money and using the proceeds to finance my acquisitions. Refinancing is possible with secondary lenders, but their rates are pretty expensive. 

Hey there @Kyee Bo.

Have you given any thought to some smaller secondary markets. Lots of opportunity to be had. I invest in South Bend, IN and regularly find properties that meet or exceed your criteria at a lower price. Happy to share if you wish to discuss. 

Hi @Bradley Bismark.

I've been using Amy Warner at Berkshire Hathaway. She works hard and their fees are reasonable at 8%. I'll  PM the details. 

Hi @Christina Tkacs.  Great conversation you've started here. 

Personally, I don't think that you've missed anything. Everyone has to get started somewhere, and you've had the courage to actually pull the trigger. Congratulations. I've been investing for about 5 years and I have several friends that were looking at real estate about the same time. They're still looking. Paralysis by analysis. And they're no closer to reaching their financial dreams. They're bouncing from 1 shiny object to another, confusing buying a course with taking concrete action. 

Turnkeys can be a great way to get rolling. Theoretically at least, you're cash flow positive from the start. Take the cash flow and reinvest it over and over and you can get your next down payment quicker. Take the cash flow from the additional doors that you acquire, do the same thing and compound your growth. The sad truth is that conventional mortgages are only so effective. Banks are risk adverse and will only give you so many before they cut you off. At some point you're going to have to become creative if you want to keep growing and refinance to pull your capital out. 

A BRRRR strategy is great for forcing appreciation. If you can find a distressed property, rehab it, rent it out and then refinance it, you can increase the odds of getting all your capital out (and maybe a little profit) when the refi happens. But it's not without risk and it takes time and a significant amount of energy. You never know what you're going to find when you start knocking down walls. Guaranteed that it's going to cost you more time and money than you planned. It's not for the feint of heart. I've lost draws, fired contractors and had to rescue projects. Personally, I find the challenge rewarding, but not everyone has the time, energy or risk tolerance.

You've had the courage to get started, so I'm certain you'll be successful at whichever strategy you choose to apply. Neither is right or wrong. Just different. I'm happy to share what I've learned along the way. Feel free to connect. 

HI @William Espich.

I feel your pain. I live in Ottawa Canada, another hot market where CAP rates are 3-4%. It's very difficult to make anything cash flow. That's why I've been investing in South Bend, IN, since 2016. You can still find value there. If I can invest from another country, you can certainly invest from another state. Glad to share my experience if you like.

Hey @Corey Stubbs. 

LOL. Who knows what evil lurks in the hearts and minds of the accountants that work at the IRS, CRA and Department of Finance. :-)

Hi @Jagger Babwin.

I'll preface my comments by saying that everyone's tax situation is different so you should contact an accountant that specializes in cross border taxation issues and have a conversation with them about your specific needs. I sent you a PM with some additional info. 

As Canadian residents, you and I have pay taxes on our income worldwide. Canada and the US have a reciprocal tax treaty that allows individuals to pay their taxes in the US and have it offset against the taxes owed on the Canadian side, provided that you respect the provisions of the legislation. An LLC is not recognized by the CRA as a "flow through" entity. As a result you would have to pay taxes to both the IRS and CRA on the same income. Double taxation. There may be instances where this is still preferable. Depends on your situation so speak to an accountant.

If you are looking to protect your personal assets and avoid double taxation, you can set up an LP, which the CRA, at least today, recognizes as a flow through entity. If you create a Canadian corp and they can be the general partner (1%) and you can be the limited partner (99%). Again, speak to a cross border accountant specializing in these issues. They can tailor something to your specific needs.   

Hope that helps.

Hi @Anibal Mejias.

I have been investing in South Bend, IN, since 2016. I do fix and flips, turnkeys and have been acquiring a portfolio for my retirement. 

I have two fix and flips on the go right now and am closing on a SFR June 15.