All Forum Posts by: Huong Luu

There are still deals in Durham and S. Ontario. One option is tax sales. PM me if you want more info on this strategy as it is not a strategy for everyone. Another option is to find a prop that needs repairs to force the appreciation. Usually the maintenance fees on condos prohibit the CF, but may be something to look at. 

@Elijah Williamson You can do a google search for Standard form of lease or residential tenancy agreement or rental lease forms + province (they are standard forms like form 2229E for ONT) and you will get get most current for your Province. If you are in AB or ONT, if you PM me, I can send you the form I have. They will be pdf format and free to download. Good luck

@Mannny Lubana 

1. If the property is negative CF, see what potential there is (ie: can you charge for parking, laundry, storage, is the rent too low, can you reno and increase rents, etc). Keep in mind, you want to buy at the value it is at now, not what the potential is. Just because other people buy doesn't mean it is a good deal. If you are looking at MF, you will need 20%+ d/p. Depending on the appraisal, the lender may require higher. 

2. It is not just about CF/door. You have to look at the mortgage paydown, expense ratio, debt servicing, market, your client profile, reserve, etc. If the building is going to require some major repairs in 5 years, then your $100/d will be eaten up very fast.

3. Some people don't buy for CF. Sometimes, they put in offers to get it under contract and then negotiate the price down after their due diligence. They may have another use for the property that you are not seeing. ie, I recently got into a 3 unit property where we knew we could convert it into 6 units. Some people buy at 'potential' value.

I am assuming you are having a 2nd set of eyes on your analysis. Also not putting in too much buffer in your analysis. Good luck.

@Ibrahim Elvis if you are investing from out-of-state then you are not limited to Calgary. Also your location says Grande Prairie AB, so do you live in AB? Before looking for PM, research on the areas first. This will allow you to then narrow down on the PM, after you confirm the market you want to be in. You can change the PM, but you can't change the location. Good luck

@Elaine Lee The 2 accountants I would recommend are licensed for AB but based on Toronto, Ont. If you want their contact, message me. One advantage in having an AB based accountant is the networking they will be able to help you with, as it will be focused more in AB. If you plan to expand outside of AB, then it doesn't really matter. The benefit I find with an out of province accountant (or one that covers several provinces) is their insight to where the deals are and what other investors are seeing/doing. Good luck. 

@Heidi-Marie Jones what a great position to be in (Iam assuming the land is worth $150k)! When talking to your step dad and mom, ensure they are okay with you putting a 'lien' on the property. This will prevent them from getting a 2nd mortgage or heloc on the property and putting debt on the land which would mean someone will have some legal rights to come after the land. You may want to consider something similar to an AFS (agreement for sale) contract. Ensure they know they will not be able to put a reverse mortgage on this property. 

Some other things to consider: 

-if you pay it off ($150K) does that mean you can kick them off the land, if things get 'nasty'?

-as you pay down the $150K, can you access any of the equity?

-if you walk away from the deal at any point, do you get any of the $400/m back?

-is there other family members who may want part of the land as part of their inheritance?

Find out what the zoning allows for that land, ie can you sub divide. 

Talk to your lawyer/accountant about the implication of land transfer tax on this, as it will be based on the future value.

Good luck

Hi BP family

I was recently approached to invest in the US so I could get a US citizenship through the EB5/E2 visa process. Has any one done this? What benefits and shortfall are there in doing this? Being Canadian and not really planning on working in the US, not sure this would be worth it due to the cost to set this up and the continued double taxation. 

Thanks in advance.

Hi BP Family, I am putting together a list of Fears/Worries around RE for a presentation I am doing. Last summer I met a gentleman who told me he was worried about the RE market in Canada and US and so liquidated all of his US portfolio and most of his Canadian portfolio. He was worried he would lose his $40M... What would you recommend/say to this person? What fears have you heard from others? Thanks in advance for any feedback.

@Kyle Johnston

Depending on where you are in Northern Ontario, there are affordable properties you can get that should cash flow since the purchase price is lower. I was recently looking at places in Timmins for $250K and Thunder Bay for $400K. Look at SFU that have the opportunity for you to convert to duplex. When you say SOUTH, do you mean southern Ontario or the US? Good luck.

@Hardik Solanki, I would suggest you and your friend decide what you want to be doing in 2 yrs, 5 yrs, 10 yrs, etc, and how involved you want to be in RE. You can invest in RE very passively or actively. Part of this is what you want in the end. Depending on your answers to these, that will determine the strategy you pick. I would suggest you guys look into partnership structures as well. It may make sense for both of you to buy your 1st place under your own name to take advantage of the tax benefits while using the 5% primary residence and RRSP FTHB, and HELOC. Once you buy a property, some of these will not be available. Best to talk to an accountant on this.

You also asked about cashflow. Be more specific about what this means to you. $1 is still positive cash flow. Learn to analysis and run your numbers. I would also suggest you focus appreciation on FORCED appreciation rather than future appreciation. Good Luck.