All Forum Posts by: Alex Jamael

@John Warren Thanks for your reply John. I think the rehabbing reasoning is definitely best, and the renovations are needed. Will follow this route. Thank you 

Two things I am desperate for advice on! 

A) I just bought two 6 unit buildings in a part of Canada with medium strictness for tenanancy, impossible to evict tenants without cause, can’t put rent up without major renovations ( a coat of paint won’t do) and there is a tenant that has been there for 25 years , paying insanely low rent, and he called me asking when he should leave as I just bought the building? Obviously I can’t just tell him he has to leave because I have to honor the lease he has signed but anyway I could talk to him? Not sure he could ever find a place for similar rent. 

B) I own my 20 units right now in a JV 50/50 and I do all the managing but when we get to a higher number of units I'll pay myself a salary and I pay myself for any extra other than collecting rent or small tasks right now. I just had one of the Investors that gave me a PML for the down payment of the two 6 units ask if I would be interested in doing a JV with him and again I would manage... does anyone have experience with buying a building JV and where I find the deal, I have the team and I will manage I wouldn't put any of the initial down payment down?? My JV partner would and I would be the operating partner and still be 50/50 on the deal? Any advice or ideas??

thanks everyone for reply’s, I know the Canadian rental rules aren’t familiar with everyone and this is a new province I just bought in so I am not that familiar I’m just seeing if I could sit down with this guy and maybe offer him some cash to leave ?

@Theresa Harris Your method would be to make them believe they are paying for heat separate from their rent ? Not sure how rental rules work where you are or how they would look at it where I am and whether I could justify the raise because the heat prices are so high

I know this is an old thread however I am currently looking at two six unit older buildings, they both have oil furnaces, the heat is included and the yearly heat costs for oil is $10k on both properties. I am quite sure the tenants are abusing the privilege of included heat. I did some basic math and if I did equalized billing it would work out to $130 a tenant and maybe if they were paying for heat closer to $100. ( because they wouldn’t have the window open and the heat on full 😃).

anyone have any experience with having seperate meters measure how much oil someone is using for a 6 unit? These properties are in a place electricity is very expensive because they buy all the power. Naturally most people use oil. The system at both properties is newer as well. Double wall tank and newer burner. Wondering how difficult it is to have tenants pay for there usage.. 

Any insight appreciated

Thanks @Alina Trigub!! I’ll definitely read the article and appreciate the insight. 

Stair case I’m sorry 🙈

I have two buildings that have interior staircases leading to multiple units. One is wooden stair treads that are painted , the other is an older carpet. The carpet is gross , the wood looked Nice but doesn’t wear  well with the snow, sand etc in the winter. Probably needs to be painted every year. The top of the landing is carpet at one place and vinyl roll down at the other. I’m planning to change both to tile as it looks nice and lasts. One of my maintenance guys also does amazing tile for a great deal. He suggests we also tile the Stairs? With schluter strip edges (a nice edge piece of anyone is familiar) anyway I’m not sure how tile pans out.. or if anyone has any amazing suggestions. Not sure what the commercial buildings use but I would like something professional and durable.. thanks for any input!!

My business partner and I just received confirmation of financing on a deal as part of it we have to come up with $50k PML for the down payment. I have formed a list of people I could see helping me make this. We are offering a 7% return on a 3 year note and could probably secure it on another property we have equity in. Any tips on asking people? Friends , family? 

@Evan Polaski @Mike Montana

I did some research and blindly had no idea you had to have 9-12months rent in these deals. So as you guys suspected it will be a much larger down payment required. I’m Canadian, so we don’t have the SEC, I do have a 50% business partner on my other properties who is going to go in on this , we have a financing option called CMHC where we can use a 15% down payment plus the rent savings etc. I think it could be below 25%. We are planning to raise the majority of money through PML for down payment.

@Russell Brazil 95.4% rent dollar percentage. One tenant I knew would have trouble and was laid off, they paid 50% and I’m doing a zero interest loan and will set up a repayment plan