All Forum Posts by: Bill B.

Don't forget heloc, DSCR, 2nd on primary, borrow from retirement accounts, credit card cash advance, property reserves, home improvement store credit, etc etc. Heck, just pay for all the improvements with a credit card.

It does scare me that you don’t have 25k laying around if you’re using so little leverage. But assuming thsi is something you plan to pay back in 2-3 months the interest rate shouldn’t matter. Go with any of the above sources. Meanwhile, switch banks. This is the kind of thing the bank you keep all your operating funds in should be happy to help you with. 

What did they do for the first 2 months in regards to a dryer? Did you supply one or make them bring one? Did they live fro 2 months with no dryer?

Anyway.  When the installers came they should have said, nope, this can’t be done. Then they would take the dryer back to the store and sell them a gas dryer 

I can’t see how this happens other than you trying to rent out a property with no dryer installed? (Otherwise it would be your dryer they removed.) then they would have to be looking at the obvious connections and go to the store and buy the wrong type. And then haul it home themselves without installation?  If all that happened I suggest you start including dryers with the properties. Buy a new dryer and have them put this one in the garage or return it. 

But I also don’t know of any appliance shop with no return policy. Especially if they plan to buy a more expensive one. (Gas are more expensive to buy, but cheaper to operate.). Best advice I can give until you fill in one of the blanks. 

Buy a new primary home and rent out your existing home. If you are single or married without kids and an understanding spouse. Rent out a room, or two or 3 in your new place to friends, family, co-workers. 

Try quicken, quickbooks little brother. It’s $50 year and overkill for less than 20 properties. 

I assume they don’t have any Walmarts. (I’ve seen the free transfer there.) 

Do they have any US banks located there. So you could open an account here to make quick deposits?

Is it a small enough amount of money and do you trust them enough that you could pay a month in advance by mail?

Could you send them a credit/debit card you can reload from America?

Moneygram? (They have an app)

Apple Pay?

I like the option of putting more down if you’re paying 7% plus interest. Very few people are offering a GUARANTEED 7% return. 

But…as soon as you pay cash, now you have to compare it to a GUARANTEED 5% bank return on your money. If this is a $400k home, you have to make a lot more than $20k/yr in profit/cashflow.  You can get the $20k from the bank day in and day out. The rental might be vacant for a month,(8% loss) or a tenant might not pay for a month while you pay to evict them.(8-16% loss)  A $1,000 appliance/water heater, or a $8k rook or hvac unit might go out.(5-40% loss)  You should be paying a PM 8%. I’d say a save MINIMUM would be if you could earn that 5% return with 8 months of rent it’s better than the bank. Probably. Assuming it’s not a 50 year old home with lead paint, asbestos, lead pipes, etc etc. It’s easy to find tenants, population/jobs are increasing, and property taxes/insurance aren’t skyrocketing. 

Real estate used to be the easiest choice of all time. First you were borrowing at 3-4%. Second, the bank was offering you MUCH less than 1%. Now the interest rates. Have doubled and what the bank is offering you is up 4-5x. To gain the same multiple return over the save bank, today’s investors should be making 4-5% what they were in 2020. (You were making 8% in real estate instead of 1% in the bank. Now you can make 5% in the bank and you still settle for 8% in real estate? That’s not a risk adjusted return close to what it was.)

A “1031 exchange investor” would be someone who’s already selling something and wants to buy something else. By default they already have a realtor they like and trust. Unless they are buying in a different state their realtor doesn’t know  anyone, their broker doesn’t have a franchise in, and for some reason won’t research the area’s realtors. I don’t see a space for you to fit in. Obviously it wouldn’t be people selling in your state, they already have a realtor. 

MAYBE you could search for sellers that have a very flexible closing schedule? Then you could list them as 1031 exchange gold, or dream seller. Mention how the seller can close in days or months?

Or they've dealt with one of the 50% of realtors that sells 1 house or less per year. The kind that can’t fill out a form, checks both boxes in an either or situation, and can’t be bothered to respond to calls, texts, or emails. Most of all, they just want you to buy something, anything, so they get paid. They want to be paid 5 figures or more but can’t be bothered to learn more than their customer. 

Is it big enough for your realty company to move there? Could it justify $6k/mo? (Then you have zero vacancy, your business controls its rent increases, etc.)

Rent out the garage to another small company. 

Good luck. 

You’ll have to adjust my US numbers to figure out how it works in Canada. But it looks like a horrible deal. 

Here it would be 25% down ($275k)

A balance of $825k at 7% (or higher) $5,490/mo, figure $250/mo insurance, $500/mo property taxes $6,250/mo. 

That means if you could get $6,250/mo, have zero repairs, zero maintenance, zero capex, zero vacancy, provide zero lawn/snow/landscaping, pay zero utilities, and pay zero management. You’d earn 0% on your $275k. 

That don’t sound too good. You’d need all those zero and $7,250/mo just to earn a 4% return on that $275k when you could earn more guaranteed in the bank. Maybe it’s only worth $900k. Or maybe it’s too expensive for what you want to use it for. Here you would sell to someone that can run their business form the home or the garage/workshop if that’s allowed by local code.