All Forum Posts by: Chris Baxter

Originally posted by @Tyler Lewis:

@Chris Baxter did you purchase this year? Yes we’ve attempted reaching out to the current provider but they don’t return calls or emails..... which seems to be normal in allot of industries currently

We didn't purchase this year but did see a jump in rates this year.  

Something seems off here, @Tyler Lewis.  I have a 22 unit building, early 70s construction, that I currently pay $8500 on (a huge increase from 7k the previous year) albeit not in AB.  Have you contacted the current insurer? Is the property in a flood zone? 

@Lina Smith welcome to BP!  I use Landlord's Cash Flow Analyzer Pro (Canadian Edition)

Thanks for the reply @Julie Toh. Are you able to elaborate on when lenders do/ do not offer broker fees (your statement is often don't pay...)?  It is my understanding that for simple 'rubber-stamped' types of loans, that fees would be paid by the lender (per Commercial Real Estate Investing in Canada (Boiron and Boiron)).  

I am refinancing a 22 unit MF property as our original assumed mortgage is up for renewal.  The local broker's contract stipulates a commission fee to be paid by the borrower (me) not by the lender, and claims that the lenders do not pay commission on commercial mortgages.  Is this common practice (Canadian context only, please)? My existing commercial mortgages are all either assumed or negotiated directly with the lender, and this is my first time running into this fee structure.

I'd be interested in hearing about your experiences with Outdoorsy, @Anthony Therrien-Bernard.  I'll reach out by DM to see if you'd like to connect for a chat.

@Anthony Therrien-Bernard  we bought one of these purely for rental income to capitalize on the Outdoorsy bandwagon: https://droplet-trailer.com/  Not exactly a car, but similar in that it's a low cost depreciating asset that generates a good return. 

@Mannny Lubana NOI = Income - Expenses (not including debt servicing). If NOI is negative, you have to make up the difference AND cover mortgage payments. This is not a recipe for financial success. Historically, investors in Canada have looked to have a DCR (debt coverage ratio) of 1.1 or greater. DCR = NOI/debt service. Properties that meet this criteria are more challenging to find in most markets, especially (as you pointed out) when you are competing with potential home owners (and investors) that are paying over asking.

In Canada, you are going to have to look for value add opportunities in provinces that don't have rent control.  Find a property that has some deferred maintenance and consequently has below market rents.  Do the rehab, raise rents, and put yourself into a good cash-flow position.

Given that the website is responsive (mobile friendly), why would you need an App? The app exists for Android... perhaps reach out to BP and ask why it was removed for IOS

@Heidi-Marie Jones I'll second @Roy Cleeves here.  Any time you enter into an agreement (even with your best friend or with family) get a lawyer to draw up an agreement.  Lawdepot.ca has basic agreements that can be customized, and these serve as a good starting point so that you know what terms need to be considered.  For the deal to be win-win, both parties need to be protected, so it is best to do this right from the outset.

As a side question, have you considered structuring the deal so that you own the land outright immediately and simply make support parents to your mom for 30 years (or death); whichever comes first?  The way you've described the deal, you are going to be making payments without revenue for potentially a very long time...