All Forum Posts by: Huong Luu

@Yash Patel There are a few meetup groups in Ottawa already. You might want to join them. Maximize your networking reach. I would recommend Marc Dupuis's group. Due to COVID, there are more on-line available. No need to restrict to Ottawa. Good luck

@Bo Taylor Don't let the shortage of funds stop you buy buying good property. There are ways to get the funds you need. Research on OPM. There are creative ways to use VTB and combinations of other JV to help you get the funds.

From a quick look at your numbers, I think you are missing utilities and water (students tend to use more for some reason), vacancy allowance, marketing, legal/professional fees, lawn care and snow removal.  Good luck.  

@Account Closed get the property under contract if it is a good deal, and put in a condition of sale the seller has to provide document that sidewalk encroachment is grandfathered in or has been accepted as an amendment. Your RE agent should be helping you with this. The City (usually) will not ask you to demolish. They usually ask you to pay for the fees to submit an application for approval of minor deviation. Good luck.  

@Harrison Montgomery You will need to talk to a lawyer who can register your company. They will tell you if the name you want is taken, so have a backup and a backup to the backup ready. You can start off by doing a search on the internet to see if the name you want is taken because most likely a company will have a website that matches the name. The next thing is to check if the domain name is available or a variation of the domain name is available. Preferably a .com over a .ca. There are .net and .org that might be worth considering. Keep in mind you don't need to start a company to do wholesaling. As you are just starting out, you might want to ensure you really want to do wholesaling. The other option is to talk to an accountant and lawyer to learn about a 3-tier company. I see from your bio and other post you want to do FLIP and BRRR. So a 3-tier company maybe worth looking at. Good luck

@Cameron Chambers Good for you to start. As  @Chris Baxter mentioned you still require capital. So you might start off with doing a flip to force appreciation and as an exist strategy if the property doesn't sell, is to rent it and hold. The question to do a FLIP or B&H depends on your end goal and your skill sets. I would suggest your first step would be to figure out where your capital will come from (there are lots of way to get money partners) and also figure out what you want (quick cash or long term wealth). Good luck   

@Account Closed Great question. I would suggest you contact the city departments and ask the civil/structural engineers there. Check in the permit department. When I contacted the permit departments in Toronto and other areas I invested in before, I was able to ask questions like that and got great info. You might also want to hire a consultant like Stantec or AECOM to have 1 of there Senior Engineers walk you through a few properties and explain some things to look for and consider. The $500-$1K consult price tag is tax deductible and well worth the education. Good Luck

@Account Closed, You can download a standard Agreement for Purchase and sale document for QC on-line. If you can't find it, message me and I will send it to you. You can make offers without an agent. In some cases, if the seller has an agent, that agent will take a bigger commission if you don't have an agent. If you have an agent, they will be paid by the seller, unless this is a separate agreement which will be declared so everyone is aware of it. If you signed a working contract with your agent, you may be liable to pay them even if they don't represent you in a particular deal. Check the working contract terms. FYI, Your agent legally has to submit an offer that you tell them to. If they don't, change agents. However, I would suggest you explain why your offer is what it is so your agent can go to bat for you. Keep in mind, agents do talk, and you don't want to be know as the time waster.  

@Steven Holt Where are you looking to buy? Your closing cost are to thin. Some areas have double land transfer tax. A good rule of thumb is 3-6% for closing cost. Your lawyer cost could be $1000 + disbursements. Home inspection cost depends on price of the purchase/market value of the house. In Ontario, home inspection for properties under $1M is usually $500, and properties over $1M are $800. Same thing with appraisals (range from $300 - 600). 

Its great you are doing a ton of research and analysis. I would caution you against analysis paralysis. Good luck. 

 

@Kim Holley Ensure you include the property taxes and insurance in that 'rent amount'. Keep in mind, if you want to sell now, then RTO isn't the best option. Another option is Agreement for Sale. This will be less expensive for them in the long run. And it allows you to sell now. Your questions about VTB: ask for the highest % down payment from them as you can (15%-30% is even better). Do you still have a mortgage on this place? That will affect how you set up the VTB. The interest rates for a VTB can be anywhere from 2% - 10%, open-no penalty, 6 months -25 year term. So you need to see what they are willing to do and what works for you. Good Luck

@Paul Neagle, both  @Sam Hanaa and @Hai Loc, Port Credit is already established. You won't cashflow as well. Stick to your plan of Sudbury. Windsor and Hamilton are high too so not a great place to get into. Revisit your strategy: buying condos vs MFH are different with different clientele. Also keep in mind, with condos, you have growing annual maintenance fees and potential special assessments. Also student rentals are very different then renting to families.  You might want to consider Peterborough or Kingston. Good luck.