All Forum Posts by: Colin Murphy

@Luc Boiron, @Matt Geerts, @Roy N.

I have been reading up on Fraser Smith - Smith Manoeuvre. If you were doing the SM with your personal residence (or might it work with a rental), you can use cash damming strategies (I'm just learning, so I can't add much more than this idea), to invest your HELOC funds into your own Rental mortgates.  Then the rent would be applied to your own residence mortgage to pay down faster.  Cash damming is allowed if you invest HELOC funds into your own business (such as rental properties).  So I wonder if you could use this principle to invest in a MicroFit system on your roof (main residence / rental).  The MicroFit program is an income generating program, does it count as a "business".  Therefore, could you invest HELOC funds to pay down a loan that installed the MicroFit in the first place?  This would probably pay down the loan faster than the 5-9 years usually advertised.

Any thoughts?

Colin

What would be the best way to form an Investment Group to purchase rental properties and do some investing?

If a group of colleagues, 8 or more, (let's say non-real estate professionals) want to pool their money and get started in Real Estate investing, how would it be best to form the business? Would this be some sort of fund, a partnership, joint venture or something bigger like a holding company? I am seeking general advice, I know that eventually a lawyer would need to structure this.

The idea would be to start with one property and grow gradually. Everyone would benefit by learning about investing. Certain people would have their strengths and a network of people know for repairs, etc. I am sure this would come with some pitfalls, but it also brings lower risk.

I would really appreciate some feedback from those who have done something similar.

Kind Regards,

Colin

Greg, I am just getting started and I have Gatineau just across the river.  In your opinion, how is Quebec with regards to landlord regulations.  Is Quebec a good province to invest in rental properties.

Thanks,

Colin

Try Dalia Barsoum at 

http://streetwisemortgages.com/

@Ashley Abramson Thank you for bringing up this question.  As a new investor, I am having a hard time seeing how i) I approach or find money partners, ii) convince them to invest with me, iii) to know how much to ask them for.

@Benjamin Pekarek and @Gino Barbaro would you have any advice to help out rookies?  If the deal was to get a money partner (passive) to cover the downpayment + titke + closing cost + 2 month mortgage reserve, then the management partner (active) finds the deal and acts as landlord / deals with tenant issues. Would you say there is a standard downpayment amount and amortization for the money partner?  Is 50/50 equity split, 25% down for 25 yrs a common practice?  I know you said deals come in all shapes and sizes.

Could you ask the investor to put 50% down in order to cashflow better?

Would a rookie like myself take less equity (ie. 60:40, 75:25), until you build a track record of managing properties?

Still the biggest question I have, is how do you find the Private investor (outside of family and friends)?  

Ashley, I hope this can help your original post.

Cheers,

Colin

Thanks @Roy N. and @Ned Carey

I really appreciate the advice. I think I am at that next step to sit down with a Lawyer and Accountant.  How important do you think it is that the lawyer / accountant resides just down the street for convenience  (keep in mind I have 3 little ones, I can't just go downtown whenever I want :) ).   With a Sole Proprietorship, can you 'purchase' additional liability insurance.  My wife feels strongly that "we cannot lose our house" if it all goes bad.  Does this mean I should run it as a corporation :) ?

Another thought... Is there more to this naming of a business?  Do you still use a fictitious name for a Sole Proprietorship?  Any thoughts or significance on naming it with "_____ Properties", "_____ Investments" or "_____ Ventures".  

  BP is amazing.... I'm enjoying the learning and endless discussions.  I'm not getting any regular work done, but what the heck!

Cheers,

Colin

ditto, for west-end Ottawa (Kanata stittsville)?

Thanks @Jane Fung for reminding to send that out there.

Cheers

@Brian Gibbons

I'm not sure if this is similar at all.  I have a colleague, just got engaged, and her fiance owns a house.  Since they moved in to her house together, he now rents the house.  They are planning to sell both houses to use the equity to buy their bigger matrimonial home.  How could I swing a deal to get both houses?  Would Subject to or Vendor Take Back work in this scenario?  I don't think I would get any discount other than avoiding Agent fees as a plus.  Plus since it's a friend, I would want them to get their fair shake out of it.

Would this be a good joint venture opportunity, as I would need a lot of help funding this... I'm a rookie? 

Thanks,

Colin

@Matt Geerts  Love your posts, they are so entertaining! Does you brain ever take a rest, you have amazing ideas.  I'm just starting out, and I have to remember to look back at some of your questions, once I'm ready.

Cheers,

Colin 

@Darren Eady , Thanks for message.  BP is amazing, I'm having a hard time getting anything else done around here, because there is so much excellent stuff to research, read, view, discuss....

I am just beginning, so as far as what types of properties and a success team (oooh, I like that terminology), I'm open to learning as much as possible.

For properties, I see myself starting out with Town houses as there are so many in Ottawa neighbourhoods and they keepbuilding them as starter homes.  I would love to eventually have a few Multifamilies in my portfolio but I think I need more experience first.  What is your opinion, is it easier to get into a 4-plex type of building as a beginner or SFH to start? I would like to try managing the property myself to learn the ropes. Someday if it got too much work, I would use a property manager.

As for a team, I have not started assembly a team yet.  I am just starting with a mentor in the area and I wanted to get his opinion first (like, should I be using some of his existing contacts).  I have people in mind in my area and we have used contractors recently to finish our basement reno.

When you mention a success team, who should make that up? (Lawyer, accountant, mortgage broker, contact at Bank/CreditUnion, contractors, property management). 

I am hoping to stay local to learn the business and build a track record.  Although I think I'm pretty open-minded to make this work long-term.  I don't know how the cross-border details would work, plus with the CAD low right now, it might not be good.  The closest places to me are Ogdensburgh, Potsdam, Messina, NY (within 60min - 100min away).  

When you speak of a system that could accomplish my goals, can you elaborate on this? 

Do you have advice on how to find Joint Venture partners, and how to convince them to invest their money with a rookie like me?  

What type of properties do you aim for in your portfolio?

Cheers,

Colin

@Darren Eady