All Forum Posts by: Harry White

@Marianne Lopez-Henthorn don't buy another in an oil town. Buy another near growing cities.

@Laura Williams

Can you anonymously call CPS on him saying you witnessed hard drug use, disturbing behaviour?

@Jay Hinrichs

Supply and demand is a complex beast. For example there are lots of farmers destroying tonnes and tonnes of fresh produce rather than sell it and bring prices down.

In fact most producers aren't lowering prices, they are lowering supply to match demand. I see this happening with real estate as well.

Owners will do the math. If it is cheaper to hold a unit vacant until the recovery, than lower rents and subsequently affect rent prices of all units, they will do that.

Personally I don't see why certain groups should solely bear the brunt of a government enforced shutdown - that includes tourism, restaurant, airlines, retail, and property owners.  

If my tenant lived the high lifestyle and didnt save up a few months emergency fund, why should I risk losing everything so they can be spared?

I have cash reserves for a few missed rent payments, but not months of sustained zero income.  My personal opinion is that the first stop for help is family and friends, then government.

I drafted this email below but my wife says not to send it:

"If you are experiencing financial difficulties because of the Covid19 outbreak you are encouraged to seek help from:

a) BC rent bank - https://bcrentbank.ca
b) EI - https://www.canada.ca/en/services/benefits/ei.html
c) personal savings
d) social service agencies
e) loans
f) family/ friends"

This one made my head spin. I just have to get it off my chest.

A year ago the tenant installed a portable washing machine in an upstairs unit. The unit leaked into the suite below but was misdiagnosed by the remediation company as being a problem with my home's pipes. My insurer requires my tenants have their own insurance.

This happened three more times before the actual reason was discovered. Needless to say it was the worst year of my RE investing career. I paid out of pocket until I found out it was the tenants fault, then I filed a claim with my insurance co.

They covered it but a few weeks later I received a letter learning they had canceled my policy. This is a huge black mark on your insurance record and I could not find another insurer. I thought I was going to lose everything. I had health issues over this.

Eventually I found an insurer at twice the cost for much worse coverage. My reserves and nerves were both depleted. I decided to send a polite letter with photos to the tenant (who left shortly after the portable washing machine was discovered) outlining my losses not covered and asking for a small cash settlement from them.

I thought they would either pay or discard the letter. I didn't send a demand, claim, or invoice, it was an offer. I did not anticipate what they did next - they filed an insurance claim and thrust me into a battle with their insurers legal dept. The insurer used intimidation and obfuscation to avoid paying anything. I did not want a legal battle so I just stopped pursuing anything.

A month later the tenant indicated that their insurer had claimed "no liability" and as a result the tenant had decided to file suit against ME!

This has gone beyond what I can handle, to go through this. I couldn't believe that my insurer would require the tenant to have insurance, which would mean the tenant could file a claim if they damaged my unit and I would have to fight their legal team over a few thousand dollars.

Now I am trying to figure out my next move and make heads and tails of how vulnerable landlords are.

Any comments or advice welcome.

@Harry White presence=resource

@Theresa Harris Avoid avoid avoid. Insurance rates are crazy high if you can find it at all due to the fires. BC is killing off its small towns because their economies don't conform to Greta Thunberg's idea of how we should all live. That is to say, BC is a presence based province outside the major cities, and provincial and federal policies are slowly choking them to death. Look at forestry, it used to be the cash cow for BC, now it is crumbling. Energy is next.

@Account Closed

It a definitely possible in a rising market, so we'll assume that the market is hot and prices are appreciating 10%/year.

Year 1:

Buy 1-acre industrial site in downtown core of desirable coastal city for $1.5M, put $400k down. Collect rents every month.

Year 2:

Rezone the site to 10.0FSR, cost $100k in architect, engineer, environment and city fees.

Year 3:

Land zoning can now allow approx eighty 1-bd condos to be built and sold at $300k each. Land value increases to at least $4.5M

Year 4:

Wait. Remember that end unit prices are increasing 10%.

Year 5:

Sell rezoned land for at least $5.5 M or partner with a large developer and make an extra million on top.

These numbers at approximate but I can guarantee many people did exactly this all across the West coast from 2011-2017 and made insane returns.

This is the best way to 10x your money in 5 years.

@Jason Powell

B.C. Canada here, similar boat. Eventually you just get used to the abuse. Every rental provider I know has stopped adding to their portfolio and is holding on to their existing doors (because we don't have 1031 exchange up here.)

@Josh Wade I took a look at the advertised for sales and rentals in the area, yours looks like a great deal compared to what else is available.