All Forum Posts by: Huong Luu

No, you do not need a license to wholesale. To ensure you do not get into trouble with real estate boards in your area, ensure you are using the right terms when you are talking to sellers and buyers. You are not a real estate agent. You are not selling a house. You are not buying a house. You are selling a contract to allow someone else to buy. You tell the seller you are wholesaling, and tell them how that works. You make money from selling the contract.  Good luck.   

@Anthony Panepinto, to expand on what @Chris Baxter said, each investor is looking for different things. I personally would not buy in Hamilton anymore, as it is over priced and there are too many bidding wars. I prefer to buy in towns/city that are not as popular to take advantage of lower cost per door. Whereas someone in Hamilton may prefer to invest in Hamilton as it is 'in their back yard'. In order words, what you may consider 'best' is not what I would consider 'best'. This can be applied to investors in AB. Investors in AB are buying in AB although there is a recession there, and they are seeing depreciation. Yet they are buying. In their mind, AB is the best place to buy. Whereas, others would not buy there. Good luck with this.

@Anthony Panepinto You might want to learn more about wholesale, as you would not be taking 'title' as a wholesaler. If you do, you would be trigger double land transfer tax for yourself and then again for the buyer. You want to get the deal under contract with no d/p and then 'sell the contract' to a buyer. You are not selling a house. Good luck

Lumber is selling at higher prices. Depending on the age of the trees, you might be able to sell the wood. Maple syrup? Off grid housing? Sub divide the land? Golf course? is the owner willing to do VTB?

@Shiv Dutta

pg3of42: you use 3% for closing cost but have $3K listed. Closing cost in GTA is 3-5%, with double land transfer tax. So you are off by $15K.

pg6of42: insurance seems low. Seems like this is for 5-10 MFUs. 

pg9of42: double check your cash on cash calc. Why would anyone invest if they are only getting 1.5%

it appears your annual expenses do not include capEx, legal, bookkeeping, accounting and advertising. 

Sorry, I got to page 12 and was not able to make out the content due to the blurriness.

Your spreadsheet is not showing mortgage paydown. And the overall ROI to the investors.

Good luck

You can charge a $5k deposit (or any amount) as a non-refundable down payment. You can also charge a a higher rent with a top up that will end you with the $25K. Ensure you have 2 documents signed: 1 for rental and 1 for option to purchase. Get a lawyer involved or get someone who has done RTO to help you. Not sure what you mean by refi option. To reduce your risk, you want as much of the $5K + their down payments up front. Good luck

@Cameron Chambers just reach out to other investors and find a problem they have that you can solve. If you are starting out and want to leap faster, then pay for a mentor. Great mentors and even sh*** ones are so valuable in your journey. I would suggest you research more on OPM. You don't need to save your own capital from your day job to buy. Your F/T job is an asset! And being new is an asset! Reach out to me if you want me to elaborate more on these. Good luck

@Jakub Koss In addition to the low price, cashflow, and vacancy, you also need to consider your own long term plan and your exit strategy. If things go wrong, you may want to off load the property and if that town is not growing, you may be sitting on a property you don't want for months. Another thing to think about is cashflow is taxable, whereas equity you pull out from refinancing is not. You might want to take a drive to those places and see what you are getting for that price, as they may be more run down then you think and require some repair to get better quality tenants. Good luck  

@Chuck M. Depending on your RRSP limits and what you can contribute, you might want to consider self directed RRSP so you can lend that out as arms-length mortgages. This could be another stream of income. 

@Zachary Ferry Although the 20% is not a moving target, the price of the properties are. As you are 'building up' the capital, the prices will increase and you will find you need to save more. Also the rules to qualify for a mortgage are constantly getting tougher. There are other options other then 'building up'. There is Other Peoples Money (OPM), private money, RRSP, JV... so many other ways to get your 1st door without 'building up'. Also, networking in a specific area is great but open it up. There are many great minds out there. Good luck