All Forum Posts by: Eric Delcol

We have seen unprecedented low interest rates. The cost to borrow is so low right now - take advantage of that as much as you can without overextending yourself.

Hi Bevla, 

"What do you look for in your real estate agents?"

What we look for in an agent is 

- experience investing themselves

- contacts for contractors, property management, financing.  You might not go with their contacts but it's good if they can recommend someone as a backup.

- someone who understands the difference between buying an asset vs. buying a home.  When looking at a property do they point out 'what a lovely granite counter top!' or do they say 'there's a lot of upgrades here - if you really want this one you might want to market it to a different clientele and charge higher rent'.

"What do you need them to do for you that you can't or don't want to do for yourselves?"

Broker the deal, view properties, negotiate with the seller.

"How do you expect to compensate them for their time and experience, what do you think their time is worth?"

Just like any agent.

"How do you find investor-friendly agents?"

Referrals are your best bet.  BP is an excellent source.

We've been lucky and found one of the best investor oriented agents in all of AZ.  PM me and I'll send you their contact.

It could work but it'd be tight.

Rent in the area for 2bed $1,800

Mortgage @ 20% $890

Condo fee $550

Taxes $100

Insurance $50

Management $100

= $60 profit / month

Now, that's provided you have a $60K down payment.  

That $1800 rent is also a bit iffy.  There doesn't seem to be any amenities - no pool, no gym, no billiards.  The only thing the promo page boasts is it's proximity to the subway.  Also, the above doesn't allow for vacancies and other misc expenses which you will most likely have at some point.

To your question "is this a bad idea".  Not in the least - if you do your homework.  Condo rentals are a great way to get your foot in the door, learn the industry, and if you've done your research, make a bit of money.  Be aware, the Toronto condo market is huge.  You will have a ton of competition.  If you can differentiate yourself somehow you'll have a shot.

Think of it this way - if her story is true then she has a high likelihood of a family member, friend, or someone else in her social circle to help out. Suggest that her. Maybe she hasn't thought to ask anyone else for help yet. I always envision these types of situations as someone trying to buy a bottle of Cutty Sark whiskey at a liquor store. Would the person behind the counter give them the bottle without first receiving full payment? No. I know it sounds silly but if you view this as no different it helps in making a decision. That being said if this tenant has been with you for 10+ years, no problems, keeps the place immaculate, always paid on time, - then you might want to consider getting creative.

The most optimal time to buy is a few months after a bottom. The last GTA bottom was in '96. With that said you have to ask yourself what is your tolerance of risk. If the market corrects (or declines depending on how you look at it) - can you weather a 20% decline in the value of your property? If your strategy is to hold the property for 10 years or more than I would say go for it. If you're trying to do a fix and flip - now might not be the best time.

Going with white is a safe bet.

Many moons ago I had this conversation with one of my mentors

Me "I'm doing a re-mod on a kitchen and am thinking of doing something more modern"

Mentor "You remember those kitchens from the 1960's with the olive green appliances"

Me "Yeah"

Mentor "You don't see too many of those around now do you".

Originally posted by @Zach Broude:

we have decided to stick with the fundamentals and invest in areas 1-2 hours outside Toronto where the values of homes have only been slightly affected, if at all. Our strategy consists of finding undervalued properties focusing on student rentals and small multi family units (from duplexes up to 10 units).

Hey Zach, congratulations on getting into real estate so young!  

For your strategy your best bet would be Hamilton / St. Catherines as there is McMaster and Brock in each respective city and they are not as exorbitantly priced as Toronto yet close enough to the city to experience the price appreciation fallout.

Originally posted by @Roy N.:

@Dennis M.

If you want to check-in with a larger firm, Keats Connelly would be a possible option.

 Plus one for Keats Connelly.

PM me and I'll send you a contractor we use that's great and is in the west valley.

There is a reason why it is called the land of opportunity.  There are so many more options and models you can create opposed to Canada's smaller market.

One thing no one above mentioned is in regards to financing.  In the US you can get a 25 year mortgage.  Meaning the term (as well as the amortization) is 25 years.  In Canada, 5 years is about the max you'll find - sure you can get 7 and 10 year terms - but at much higher rates.  This is one of the reason Robert Kirosaki states why he doesn't invest in Canadian real estate.

If you are concerned about exchanging money - find a forex broker (e.g.  xe.com) and you will save huge vs a bank.