All Forum Posts by: Alex Cons

Hi Joyce,

A lot of good advice has already been shared so I will take this in a different direction. 

The approach I would take if I were you is to make this a math based problem to solve. You have your starting investment amount, you have your ending expected cashflow, and you have a timeframe of 5 yrs. 

You can figure out in 5 yrs from now what the total value of your portfolio needs to be in order to generate a $6,000 per month positive cashflow based off the projected cap rate of the asset class you are investing in. Take for example a mobile home park, in Northern BC you can expect a cap rate of 6.5%-8%, assuming a loan to value ratio of 65% and mortgage interest rate of 5% on a 20 yr amortization, you can run those numbers to find out the value of a park you would need to give you positive $6,000/month. 

Then work your way back to today to see how you can afford to get to that portfolio size giving your current starting capital. This will provide you with actionable steps. 

A great book to read on planning for your goals is called “The One Thing” by Gary Kheler. 

I would suggest to specialize in one asset category and in a smaller geographic area so you are familiar with the ins and outs on how those markets operate. 

Alex

In Prince George, if you rent a single family dwelling you are looking at 12% PM fee on gross rent. If you have a multi-family property it drops to 5-8% on gross rent. 

@Frank Vafaei

Hey! Not in Vancouver but located in Prince George, BC. There seems to be a big Ontario BP population, time to see more British Columbian’s in the mix.

@Cory Graham

Hey Cory,

I’m originally from Montreal and I moved to Prince George, BC about four years ago. Take a look at my profile to get an idea of the economic indicators for the area. It’s very similar to Kitchener and Windsor, Ontario where many Bper’s are investing. Send me a message if you’d like to know more about this area. There are still properties that achieve the 1% rule and it’s worth looking into.

Alex

@Christopher Phillips

Unfortunetly 1031 exchanges only apply in the USA.

Hello BP,

I am looking for an assignment agreement contract to wholesale a purchase contract to a new buyer. Does anybody have any templates that I can use or have any suggestions on clauses to include in the contract? 

This will be my first time re-assigning a contract to another buyer. As of right now, I have a signed purchase agreement from a private deal with no clauses stating I am forbidden from re-assigning the contract. In addition, the purchaser on the contract is "my company name and/or assignee." My lawyer said that when I find somebody who would like to be the assignee, I would need an assignment agreement between myself and the assignee. I am guessing it should state the cost to re-assign the contract which is due on the closing date and needs to be sent to my company? This is unfamiliar territory for me so any help would be very much appreciated!  I live in British Columbia, Canada in case anybody knows specific laws for my province in particular.

Cheers!!!

I have been looking at real estate crowdfunding websites in Canada and it seems like they all require accredited investors (over $1m net worth, $200k+ income a year). My question is if I would be setting up a syndication in Canada, and I plan on raising money from people who are not accredited investors, who would I be able to legally accept money from? Friends and family? People in my network (acquaintances)? Friends of friends?

Thanks guys for the responses. I didn’t consider the possibility that the bank may not want to refinance simply because I want to use the equity how I please. I think this strategy may need some work but good to brainstorm.

Hello Canadian BP’ers, Looking on some feedback regarding a strategy I stubbled upon. If you bought a house a year for 10 years (assuming cash flow positive as well), and on the 11th year refinanced the 1st house to pull out a chunk as a yearly salary, and then refinance the 2nd house on the 12th year for a yearly salary, etc. Is this a viable strategy? Is refinancing tax free? How easy/difficult is it to refinance in Canada?

Hey BP, 

Tax season is right around the corner and another year went by that I did not track my bills! I would like to find a software that I could start using that will help me track my real estate income and expenses. 

I self manage my own units and I want to set up good tracking habits early on with a few rental units so that I can scale in the future. I would like a software that I could also use on my smart phone and under $15 a month. 

Any suggestions that are real estate friendly?