All Forum Posts by: Jacob Perez

@Account Closed In any scenario regarding involving evicting a tenant. Here's the thing, most tenants don't know the laws, and most landlords are a bit fuzzy on them.

First step, just have a genuine conversation with that tenant. They're likely aware their time may be up. 

Ask them if they're able to afford it on their own. If they aren't try to position it like you're doing them a huge favour. I'd probably approach it like look - you're supposed to give 60 days notice if you're leaving, but if you're out by this date. I'll waive the final months rent. Always try a simple conversation first, usually is the best way to go. 

@Greg Robinson I'm not sure why this would be against any laws. You're allowed to list your rental unit at any rent price you choose, whether or not a property management company assisted in that choice isn't an issue. 

Once you're tenants are in place you'd have to abide by the standard maximum yearly rental increases. Aside from all of that I think it's pretty smooth sailing. 

I'm sure you've thought of this but you should also consider building in a policy that protects your company in case of vacancies. Property management is a tough business. Nice to see you taking a creative approach.

All the best.

@Thomas Lorini Awesome breakdown and detail - What street is that?

@Aditya Soma I wouldn't be doing any type of corporations if you're buying residential property. The lending options won't be suitable and you'll have to work with a lender that charges higher rates, and fees. 

Have your legal JV outlining duties, responsibilities and % ownership in place.

In terms of taxation, have your accountant do a year end adjustment at the end of the year to decipher how your taxes were effected by the addition of the rental property. Have your partner pay 50% of the additional cost you paid due to the rental or pay your partner 50% of the taxes saved based on the addition of the rental property, whichever is the result.

It's not perfect but that's the easiest way to do a simple JV with an out of country investor.

@Hai Loc I do like Port Dover / Simcoe as a retirement community, I know a few Gen Xers who've bought out that way, unsure what there is though in terms of jobs. 

@Matt Belzile There's a lot of questions about Hold Cos for rentals. I'm currently at 6 properties and they're all run in personal names. My accountant who also owns properties always recommends moving them to a hold co. 

Here's the issue. In Canada the lending is extremely tight, if you want to re-finance you're going to have a lot more trouble getting a good lender to refinance anything out of a hold co. In addition you'll still need to use your personal income to qualify for the refinance. 

For me at this point it hasn't made sense to do it, despite accountants (who make more money on business taxes recommending it). Not that the accountants are malicious they just might not be aware of the lending environment.

@Christopher Baldesarra Once you cross that 5 unit threshold and venture into what's considered Commercial, things will become a lot more complicated. @Roy N. broke it down really well.

It's not just financing but countless other costs with what's considered commercial dwellings (6 or more units), environmental, insurance, etc.

Feel free to DM me to go over some options for residential, and depending where you're located I can likely find you a really good commercial broker. 

I have a great accountant who's also an investor in Burlington, ON for anyone who's still looking. 

Inbox me for contact info.

@Prince Soriano Congrats on actually taking action. These podcasts are a great source of information but a lot of times they're very location specific. You hit the nail on the head w/ regard to the motivation they can provide. 

Impressive you've already got into the game and since you're working with a few friends, assuming the partnership is good you should be able to grow fast. 

Look forward to hearing how it goes. 

@Mathew Scott Congratulations on getting started. Using your existing residence to re-finance is a good option, most people would call this 80% LTV as you're taking direct cash. You just need to make sure you can be approved for all of this.

There are a lot of different financing options depending on your income, credit, DP source, and the property itself. Would be happy to go over anything you need about this over DM.