All Forum Posts by: Devon Cornwall

O Samuel Adekolujo,

I would say be careful with something like this. I've always been wary of anything with HOA fees, and if you do proceed, make sure you do due diligence and get the HOA meeting minutes and anything else you can find about maintenance and future cap ex needs at the strata.

I've also noticed that you didn't include any appreciation of rent or property value and think that it is skewing your numbers slightly.

What is your exit strategy?
What are your plans for refi?

Good luck,

Hey everyone,

I'm looking to find out if anyone is interested in a local meet and greet. This post is meant to find the people interested in doing a meetup and more details will follow depending on the response.

Thank you all in advance,

@Roy N.,

Thank you so much for your answer. I really appreciate the advice. 

Do you know what kind of attorney I should be speaking to about the private placements/ REITs/ mortgage pools?

I understand your point about waiting until I reach a volume that it makes sense to walk before I run.

Do you know what things we can do with TFSAs?
What kinds of contracts can I hold in a TFSA?

Thanks,

Hey everyone,

I'm a Canadian investor that is looking to start a 3-tiered corporate structure to enable greater tax savings. The issue I've had is in entity creation and legal rights for funds.

My aim is to create a RE company, a holding company, and a PM company. Basics on that one.

My desire is to have a fund in the RE company that is backed with investors. I've been struggling to find the appropriate attorney to consult with about the regulations in place and was wondering if anyone knows of an attorney in the Windsor, ON area that might be able to give me advice.

I am also hoping that someone can answer some of my questions here on the forums, such as:

- When purchasing a property under a company, does the company need to qualify for the mortgage or can I sign as guarantor?
- How does a CCPC (Canadian Controlled Private Corporation) protect me as far as liabilities go?
- If I own property personally can I transfer them to the CCPC or do I have to have some kind of contract of purchase in place?
- If my CCPC owns a property, can the title be moved to my name at the completion of the mortgage pay down?
- If I use a fund to purchase properties and intend to pay dividends out to the investors of the fund, do they gain equity in the company or can I maintain 100% equity and simply pay them based on their equitable contribution to the fund?

I understand that these might be accounting questions that follow:

- If my RE company is taxed at 50% on my investment income and 30% is held to pay off my dividend payouts, is that money that I receive at the end of the tax cycle?
- If I pay a fee from my RE company to my PM company, can I then pay myself from my PM company?
- How do the transfers work as far as dividends payout from the RE company to the Holding company?

I realize that I have asked a lot and any help you can give would be greatly appreciated.

Thank you all,

 Hey Dennis,

Most PMs have a clause in their contract that any "deemed necessary" maintenance work under a fixed value, normally $300, is going to be carried out and billed back to you regardless.

This prevents inefficiencies in the systems that are in place to make your life easier as well as your PMs life easier.

Hopefully this helps clarify why Jeff wasn't notified in advance.

This is an opinion from someone with only one long term tenant. 

I would honestly eat the $175 on this one and avoid any resentment. Unless you can guarantee that the PM you're using is going to approach it on their own behalf as a charge-back to the tenant I don't think it would be worth damaging a relationship with a tenant. They will pay you back ten-fold for the $175 inconvenience if you keep them there. Vacancy will cost you more than $175.

This is just my thought on it but I think that if my tenant were to ask and the cost came out to $175, I'd accept it and use it as an expense to write off income.

I hope I helped some,

Hi Bigger Pockets!

I was listening to show 36 today and they were talking to @Kevin Perk. He was discussing how he sets up a 5 year balloon payout but I was wondering if anyone could explain the structure of the contract with me.

Say I borrow $80,000 from a private lender, they agree to terms of 8%, and have a balloon buyout clause with a 5 year term where they have the option to roll their current equity forward or they can take their money on the buyout with a refi.

Is the 8% a monthly interest only payment that I'm making?

Thanks,

Scott Jensen, That sounds like a great idea, thanks for the suggestion. :)

What would you suggest as far as being efficient?

What are some of the qualities I will want to look for in my realtor?

Hey everyone on BP!

I'm Devon, I'm a 28 year old apprentice electrician. I work for a contractor that handles new construction work in the Windsor-Essex, and Chatham-Kent areas. 

I'm extremely excited to start but also reasonably conservative: with only two years left to become a licensed electrician in my "state" I've decided to learn as much as I can now, and work on putting together a portfolio in a part-time way. Does anyone have any advice on how to approach building a portfolio while working full time?

I have a two year plan, a five year plan, a seven year plan, and a 17 year plan. I feel like at that point I want to have a retirement plan. To anyone in the Windsor, Ontario area: I would love to connect and share some stories and experiences.

Thanks,

It's currently sitting at around 60% tenanted. I felt that if this was a situation of tenant turnover rates a 20% vacancy seemed more accurate than a 5%. Perhaps I am misunderstanding the vacancy expense section. 

I understood the negative press and ran the numbers to see if this could be a good deal (by the numbers). 

I am not ready yet for something of this size. 

Have I used the calculator correctly and would the numbers alone (disregarding the negative press) make this a decent deal. 

I think I'm asking if the logic I've used to evaluate this property is accurate to an analysis that would ultimately be profitable. 

Thank you,