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All Forum Posts by: Andy Welmers

Andy Welmers has started 10 posts and replied 43 times.

Post: Development Lot- Next Steps

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

@Harrison D.

Option 3:

Sell both lots and home, and take the funds to find the next project? (hate to loose any capital invested in the lots for the prep work)

Wish you luck in figuring this out!

Post: Where to buy?

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

@Nick Ovington Nick, The refi part of the BRRR is intended to get your capital back out of the property in order to do the next project. Without pulling capital out, you will have more equity, and could potentially cash flow better on that 1 property, (ie. if you have the property completely paid off, you may cash flow very well) but is that the best use of your equity?

Post: Newbie from Toronto Canada

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

@Paolo Pascual Welcome to BP. Lots of info to learn here, listen to the podcasts, read the ebooks. Great info. Just as a caveat, the site has a lot of US based information, so take the principals, and education, but don't expect the specifics to work the same in Canada (ie. lists, foreclosure etc. )

Thanks @Mindy Jensen

Is there an easy to find link on the website (opposed to direct link) so others with the same issue can find their content?

Andy

I received the "investing with low and no money down" audio book, and I am attempting to download it on an other device. I am just having trouble finding where I can find the link to my purchases on BP (including the bonus videos)

Thanks, Andy

I'd be a bit leery of Knob and Tube. There are good reasons why it is not installed anymore. If you have the option, and the funds, I would suggest having the electrical system updated. Last thing you want (even with insurance) is to have a major problem in the unit, which harms your potential tenants.

Post: Terms for Cash deals

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

So I haven't heard back from the property, and assume that I have not gotten the deal. MLS 1026009 Property was fire damaged, and needed a complete gut. I offered $200k when they were looking for $269k. I guessed around 100k for renovation, but I was unsure of the actual numbers. (hence the low offer). I expect a property of the same calibur of house which was there previously would sell for approx $350k.

The property was 125 x 120, due to zoning, would not be eligible for subdivision. It could have been torn down & rebuilt (or keep same foundation and add 2nd story) but that was bigger than I was looking at (not that fire damaged building was small....) 

I'm glad I made the offer, sets me into a active motion type of mindset, it was helpful cold calling contractors to guestimate the rehab  (tho I got no numbers back, as they would want to walk the property to get good numbers)

Thanks all for the input going through this process. @Matt Geerts @Luc Boiron

Post: Terms for Cash deals

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

@Matt Geerts @Luc Boiron

Thanks for the input guys. Offer is in, waiting for results tomorrow. I do have a subject to inspection clause, so we'll see what happens. If the offer is accepted, I have already chatted to fire rehab companies to get them on site to check out & provide estimates ($150 ish for the initial estimate), as well as contractors lined up to walk the property. I expect a complete gut, new electrical/plumbing/insulation etc. if I am tearing things down to the studs, might as well rebuild it right. My offer is low to reflect the rehab needed. Heck don't know if there are any other offers on the table (all were to be presented this afternoon), or other cash offers (as their last accepted offer walked due to financing). I do have an ernest money deposit amount on the offer, so it is something out of pocket to hold the property.

I'll check into zoning, and start searching around on how to look at subdividing the lots. in there area there are no other lots that have been available in the last 7 years (according to the realtor). The majority of the properties in the area are large, with houses more or less in the middle. This house 'may' be sitting far enough forward to add a 60/120 lot behind it (had a detached 2 car garage that could get torn down on that section of property). 

Subdividing is defiantly something I had thought about, but don't know the first thing about (Guess I'll dig and find out more). Building a new home from scratch is even more daunting than bringing one down to studs and re-finishing. 

As for sub-diving through committee of adjustment. what your are mentioning is sell a lot, subject to committee of adjustment approval to subdivide, and then, when a buyer is found, apply with the buyer's name on the division paperwork?

That gives an other good exit strategy, even if it is tear down the home, and sell 2 / 3 lots to other home builders / private parties.

Sorry for the rambling disconnected thoughts. exited, nervous, and happy to be moving forward. learning a tone. The fire hose of knowledge is tough to drink from, especially with a day job, and young kids running around. 

Andy

Post: Terms for Cash deals

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

@Matt GeertsThe seller is motivated, as there was fire damage to the home, and it has not been fixed at all (insurance?). They had a previous offer accepted, which fell through due to financing. The lot is in highly sought after neighbourhood, and would do well for either a gut and fix, or an infill. I know this can be a huge job to tackle, and my mind is not fully aware of all the possibilities (125/120 corner lot).

Exit strategy is wholesale or flip. I would love to find a partner to help with the financing, as I am quite willing to do a lot of the work myself, to learn the process. Otherwise, I am looking at finding private lenders or hard money, or flip to an other investor or small developer in the area.

I figure, I might as well jump in with both feet and try to find the deals, run the numbers to make sure I am finding something reasonable, vet the deals through the community, and see what I can do to build up the business. If I get the deal accepted, pull in some contractors to get better numbers. I wanted at least to have some action, instead of sitting on the sidelines wishing and wanting.

Even if the deal is not accepted, it sets me up for a better position for the next one. I know what steps to take, generally what to do, and a few what not to do's

Post: Terms for Cash deals

Andy WelmersPosted
  • Ottawa, Ontario
  • Posts 43
  • Votes 5

@Luc Boiron Thank for the 2c Luc, I was going through a traditional agent using OREA paperwork. and did in fact add these as "schedule A", and my agent had included the clause that I would no longer be liable once assigned.

glad I wasn't missing anything glaring.