All Forum Posts by: Huong Luu

@Joe Mazur Private lending is a great use of your money as long as you can 

1. know you will get the initial investment back (ideally with interest) and

2. you can still sleep at night if the money is lost and

3. its in alignment with where you want to be (financially, etc)

I have been doing private lending for about 4 yrs now, and wish I knew about it long ago. It doesn't generate as much ROI as actually owning, but private lending is another stream. Where Iam, I am taxed on the income/interest/profit as if it is income.

If you don't know this person, then I would suggest you take the time to know them. Go for a coffee, dinner, etc. Is this someone you want to work with? There are many people out there who will take your money! so find the right person to team up with. You can also ask them for their past portfolio, referrals, etc. You can do a search on their past properties to see their success rate on flips. You can also do a FB/linkedin/etc search on people. With everyone I lend $ to, I do a search on them. If I get any negative feeling from it, then I don't do it.  

The inspection (appraisal) thing is another matter. As part of your lending requirements, you can put that as a condition. 

Also treatment of 2nd MTGG in default differs depending on where you are. I would suggest you contact a lawyer in the state/province where the property is located and ask them. 

Hi @Tony P. These are all great questions. For your 1st MFU, I would suggest you team up with someone who already is doing MFU. This way you will see 1st hand all the ins-outs without taking on 100% of the risk (and you get free coaching at the same time). The other option of course is to pay for MFU training/courses. There are tons out there. I would suggest listening to Charles Dobens MFU podcast (US based but info is valid for Canada) and looking into Edna Keep's program. 

'Easier to manage a MFU'. This depends on your pt of view. If you have a 4 plex, that's 4 stoves, that can brake, 4 sets of tenants to deal with, etc. You get the point. The cashflow is usually better with MFU. 

Yes, when looking for a REA, find 1 that is an investor too. Not just focuses on working with investors. 

If you got pre-approved by a bank, then go that route. Although it would be good to start looking for a mortgage agent you can count on. At some point the banks will not lend to you. Building a STRONG relationship with a mortgage agent is important if you plan on getting more than 4 doors and if your own funds are limited. Some mortgage agents are better than others. As well, find an agent that is also an investor with multi-doors.  

For your calc's you should use actual numbers were possible. Keep in mind, the seller usually will present numbers in their favor, so take the numbers with a gain of salt. 

Include 

- utilities unless you are 100% planning on having the tenants pay, 

- 8.33% vacancy even if the area is lower, 

- % for capital expenditures (2-10%)

-% for property manager even if you plan on doing this yourself (8-15%)

-if you don't know an expense put in your best guess. Your REA should be able to you give you a estimate too. 

- etc, all the other normal expenses

In terms of $net profit/unit/month this is a personal choice. Some people are happy with $50/door, others want $100. For me personally, I target $100 np/u/m.

I think I got all your questions. Send me a mgs if I missed any or if you have further questions. Good luck. 

@Scott Isbister The treatment of illegal suits defer on the city. Many properties in Toronto have been 'grandfathered' in, so they haven't had any issues with the City. Some properties in Edmonton AB, have been fined and shut down by the city. So it really depends on the city. If the property has been 'grandfathered' in insurance and lending should be okay. Brokerlink and Park Insurance will review your property for insurance, you just have to disclose it to them.

@Matthew Kimball If the numbers are positive with 1 unit being rented, then it may be worth it. Are there families looking to rent that have more than 3 kids, or need to have their grandparents live there. You know the area better, so if you think the neighbors are going to complain then it isn't worth it. Can you use this to negotiate a lower purchase price? Are there discussions with the City to allow multi unit renting? 

@Matthew Kimballundefined

Hi Chris. There are many Canadian's investing in the US. You can go to networking events to meet these individuals. Each state will have different requirements, so you are best to narrow the area you want and know ahead of time what conditions you are looking for. Good luck.  

You can do market research on any area from CMHC reports. Here is a link to get you started: 

https://www.cmhc-schl.gc.ca/en/data-and-research/publications-and-reports/housing-market-outlook-canada-and-major-centres

You can search for the specific City you want to invest in. For me, I choice places that I was familiar with or knew of new infrastructure being build (ie new companies/hospitals, 407 expansion, etc). Looking at past sale price is just 1 thing to look at. You also want to look at what similar properties are BEING sold at now. You can do your own search on realtor.ca. Keep in mind, the properties need to be similar with similar lot size.  

Yes, you are correct. I got into the market at the right time: "yesterday".  There is never a better time, then yesterday. So do it now if you can if the numbers make sense. When you make the statement "she got into the market at the right time", it implies you are making an excuse yourself. (this being said in the nicest way possible).

The areas I would recommend at shared with my paying clients (wink, wink) and those in my mastermind group. However, I would suggest you follow infrastructure development and pop growth. I also have a Youtube video showing how to find positive cashflowing prop.

Hi Mahesh. There are great deals to be had in the US, but there are also great deals across Canada. I kept all my investments in Canada, partly due to the exchange rate, but also it was a personal choice. At the time I was growing my portfolio, the US market was not as appealing as now. Also, I wanted to have my investments 'in my back yard'. When I was growing my portfolio, I was self managing so being able to go to the property was important to me. Lastly, while everyone is buying in the US, this made it less competitive for me to buy in Canada. 

@Sam Bewley When you find out what the 50% and 1% rules are and AB-68, ADU and JADU is, can you post it here? Although I have been in RE for 20 years, I am not familiar with these (only shows you don't know what you don't know...).

@Alexander Mohr

Give REIN (out of Toronto) and Rockstar (out of Oakville) a try. Also look on eventbrite.

all the places @Scott Isbister mentioned along with 

https://www.rentboard.ca/
, specific issues of Canadian Wealth Magazine and specific issues of REIN magazine. 

There are 1 person I would recommend. I will message you separately.