All Forum Posts by: Jami Kloet

We have found the best deals seem to come through older landlords in the area. They tend to be getting older, and don't want to deal with the new rules, and don't want to put the work into their properties. They just want to get out of the game, it seems. We've come across three landlords locally in the past year who have called us asking when we're interested in buying again.

We also found a recent deal through a private lender that we met with. We were talking with him the other day and he told us to let him know when we're interested in picking up our next project. We met with him originally about a loan, that we didn't end up needing, but we really hit it off, and he has a lot of deals come across his desk, and they're usually people who can't get loans, so need to private lending or have to sell if he says no.

For books, and audiobooks, I find a lot of the REI books to be a little dry. Certainly, if you haven't read Rich Dad, Poor Dad yet, I would start there. I also agree that some of the self-improvement/business books can be really motivating. Recently, I really enjoyed Crushing It, Miracle Morning, Four Hour Work Week, Drive, and Subtle Art of Not Giving a F*ck. I'm waiting for the @Chad Carson Retire Early with Real Estate book to become available on Audible. I think I might also download Miracle Morning Millionaires. (I love a good book, so always happy to chat books with anybody!).

For the most part, I have also found Facebook groups to be a good source of information, and a great way to connect, although I find FB groups come with their own set of drawbacks. For the most part, people have been very helpful and it's easy to figure out who the posters are that align with your goals and visions. 

For mentorship, I feel like the best relationships happen organically. We actually met with a money lender earlier this year to discuss a commercial deal we were looking at. We didn't end up needing to borrow from him but we really hit it off - he loved our numbers, energy and the work we were doing - and he kind of took us under his wing. He's sent us deals, introduced us to people, offered advice, and has even offered to guide us if we want to get into private lending (I would love to eventually). And it all happened because we made the effort to reach out. 

We are having a bit of a rough week with one of our properties, so I wanted to update my goals list, just to remind myself how far we’ve come.

Here’s my update:

2018 Goal: Set up better systems/formulas to operate our REI as a proper business. We went from two units to five units in the last three months, so we need a stronger business model.

Updated April 2018:Pretty much, although this is always a work in progress. We are in a strong position of tracking and could present nicely configured documents to anyone who asked on each individual property.

Updated August 2018: Tracking is still strong, and we are able to provide paperwork and numbers on each building. Next focus needs to be on tenant dealings, and proper channels in place when dealing with tenant requests, etc. Rather than have them text us at their leisure.

2018 Goal: Complete renovations on two current properties. One will be ready for Feb. 1 occupancy (already rented), one we are aiming for March 1. 

Updated April 2018: Yes and Yes! Two projects completed, two new, happy tenants moved in.

Updated August 2018: These properties are complete, cash flowing and amazing tenants who pay on time!

2018 Goal: We are closing on our first duplex this week. One tenant is moving out end of Jan, so we would like to do some updates to that unit and increase rent. We will work on exterior upgrades/curb appeal in the spring.Updated April 2018: Yes! Updates to unoccupied unit are nearly complete. We are doing showings for a May 1 occupancy. Exterior upgrades are being planned May/June.

Updated August 2018: Both units have new, happy tenants and we were able to increase the rents on both sides from approx. $900 inclusive to $1100 + utilities. It’s an old property, so it’s had some issues, but we have been quick to correct everything when it arises and are happy with the work done on this property and the tenants we’ve placed. We still need to upgrade the exterior to this property.

2018 Goal: Refinance a property that was currently rebuilt from a fire. Pay off vehicle and invest the rest.

Updated April 2018:The property is being assessed this Friday, so this is on track.

Updated August 2018: We were able to refinance this property quite nicely. The money allowed us to pay down our LOC (investment related upgrades), purchase another property, and… buy a boat lol. So we didn’t pay off our van, but we were able to buy our boat in cash, and have enjoyed endless summer family and fun on it, so we have zero regrets about this decision.

2018 Goal: Purchase at least one more property for a fall closing. (This was the plan, although we are already looking at another property this week... but isn’t that the way?). 

Updated April 2018: We are just coming off three major projects (and both work full time, and three girls in hockey… well our winter was busy!), so we’d like to hold off until late summer/early fall, but we have looked at many properties in the meantime. We won’t say no to the right property.

Updated August 2018: We recently closed on an off-market opportunity that came our way through a money lender. This will likely be a flip project, and while the numbers are very strong, the first week of ownership has been nothing but headaches – we assumed a tenant who is proving to be difficult and the former owner left the property completely infested with fleas. We are working through it, but man, it’s been a bit of a ride on project that we were hoping would be our first attempt at being hands-off.

2018 Goal: Explore pros and cons of student rentals. Our area has a new increased demand for accommodations for Int’l students. I’d like to see if there’s an opportunity for us in this area. (Open to feedback and experiences)

Updated April 2018: I’m flip-flopping on this. I like the hands-off of long term renters, however, we have shown the above property to some students and would be open to it, under a different model. For instance, if we rent for $1,100+ utilities, and four students want to rent, we could do $400 each inclusive. But there are legalities to that I am not overly familiar with.

Updated August 2018: I am still exploring this option in our region, and haven’t had time to quite figure out the legalities of it. I do have my eye on a property in the city, and know that student housing for International students is in high demand.
We did unintentionally, take on a student rental with our most recent purchase. Our goal is house students, who will carry the housing costs, until April 2019, at which time we will do interior upgrades and list it in summer 2019.

Long term goals:

2018 Goal: I am really eager to try a short term rental in my area, so I am exploring properties and options for that.

Updated April 2018: We looked at one potential building, and it’s still listed. We were close, but partners got cold feet and we leaving for a 12 day vacation, so we walked originally. I have a vision for it, but due to commercial zoning, requires 50% down. There’s a whole block that I’d like to take over and do STR with. I may need to explore this more – would love to chat if anybody has any interest or experience with a project like this. I can share more details.

Updated August 2018: We actually revisited this exact opportunity again in June 2018, and had a signed contract in hand. We were very excited about it, but the property needed some major work, which we were willing to take on, but the homeowner was proving to be incredibly difficult and we caught wind of some liens on the property, and complications with the zoning, which also led to financing complications. In the end, we had to walk away. I’m hopeful to see this property come up again in the future, or one similar to it.

2018 Goal: Set up a plan that will put us in a position to purchase a vacation property in the next few years (exploring areas of Florida right now and researching financing options - I am open to all suggestions for this one). 

Updated April 2018: We have two goals now: a house in Florida and a charter sailboat in the Caribbean. We drank the Caribbean sailing kool-aid this year, and once I explored charter companies, the model is very similar to property rentals. As for Florida, I actually had a post drafted last night about which areas of Florida we should explore for upcoming vacation areas, but I didn’t end up posting. So I am still working to make this a reality.

Updated August 2018: Trying to be smart about this one. Waiting for a stronger Canadian dollar, and want to be ready in the event that happens in the coming years.

2018 Goal: Keep learning and connecting. I can’t believe how much we’ve learned in the past six months. Would love to learn more about creative financing in Canada and maybe explore partnerships opportunities.

Updated April 2018: I need to do better at this. We are south western Ontario if anybody wants to connect and chat. I’d also like to connect with a mentor and explore partners. Our projects thus far speak for themselves, but we can only run so far on our own dollars and experience.

Updated August 2018: We are doing alright with this one, but I wouldn’t say we’re totally hustling. We just don’t really have the time. That said, I have connected with a few of you, try to offer insight in FB groups when I can, and we did develop a really great relationship with a long time private money lender. We met with him when we came up against some barriers in the aforementioned deal, and we really hit it off. We didn’t end up needing financing from him because we walked away from the deal, and had received bank approval at a lower interest, but he really liked what we were doing, the paperwork and numbers we were providing, etc. A couple weeks later, he called us with an off-market deal that came across his desk. He’s older, and doesn’t want to take on more projects, but wanted to pass the deal along to us. We are hoping to continue to learn from him, and possibly get into money lending in the far off future, thanks to his feedback and advice.

2018 Goal: New Goal: get a logo made, and maybe a website, to set up a more professional look. Informally, we refer to our rental business as Kloet Capital (the short term/vacation rentals will be called Kloet Concierge).

Updated August 2018:I basically got steamrolled for this on the FB groups and forums, but we went ahead with it anyway. We are fine tuning some details, but I love it and can’t wait to share it.

I'll add one more: Pipe Dreams

I really want a short term rental building. I'd love to buy an old building, 4 - 6 units and have short term rental suites. Something cool, hip, urban, but not too big. Not quite a boutique hotel or B&B, but a really cool short term accommodation suites, in a cool area.

Updated August 2018: I would still like to do this and would consider it if we found the right property.

It is not hard to find good tenants for multifamily buildings. Advertise well (don't be cheap, pay for top ad on Kijiji at least), do a comprehensive screening process, include a credit check (not a free one, pay for it) and ensure you're only renting to people who look really good on paper. Also, don't be a sleezy slumlord - have nice places to live and good tenants will show up. Price it a little high and have great service.

@Matt Geerts I don't know how to quote forum posts, but this is advice to live by as a landlord, and it's actually really simple. We've always operated this way, and have never had a tenant that we've placed move out on us in 8 years of being landlords. The only bad tenant we've ever had was inherited, and we were lucky to get her to move along within a couple months. However, we still maintained high standards and treated her with fairness and respect throughout the process as well.  

I am not familiar with Quebec market, but the more experience I gain as a landlord in Ontario, and the more I learn, I feel like I see opportunity everywhere. My only problem right now is that I feel like I don't have enough time and money to take on more than one project at a time. 

@Account Closed up on his offer to chat. He has a lot of knowledge in the mortgage market and in real estate investing in general. 

This board can also be super helpful, although not nearly as active to Canadian investors. There are some great Facebook groups out there as well, that we have found very helpful as we've expanded our portfolio in the past year. 

@Julie McCoy I couldn't agree more. The Exumas are the most gorgeous place I have ever visited and I can't imagine doing it any other way than on a sailboat. The water just sparkles, and the beaches are endless. It's unreal. I dream of Staniel Cay on a daily basis. We spent one day in Nassau before we set sail, and it definitely wasn't my scene. Although, we departed from Palm Cay and that spot was pretty gorgeous. 

@Jill F. Enjoy! I hope that's me some day! There's nothing like being on the water. My Oma used to say, "It's like a tonic." 

@Jill F. My dream! Where do you tend to sail? 

We did a 10 day sail of the Exumas with friends this winter and I don't think I can ever vacation the same way again. We are planning to join our BVI friends next year and sail the islands there, and possibly join them in Newport this summer as well. It's an unreal way of travelling. 

While I dream all day of vacation property, you hit the nail on the head - buy a boat, and explore all the islands. I actually just said to my husband, forget the Caribbean, let's buy a gulf access home in Florida, and a sailboat. Best of everything! We do need to polish up on our sailing skills though, we're not quite as skilled as our friends, but we could probably get there. 

@Julie McCoy Thanks for that insight. I think it's easy for people to get caught up in the beauty and adventure of it all, without seeing the big picture. I will definitely be following the political landscape there. 

@Shiloh Lundahl Yes, I've been exploring business models like that and would love to see somebody doing it successfully on a small scale (say four properties on four different islands). It would be ideal - throw in an Orlando property, so you can take the kids to Disney once a year :) Belize, Mexico, Costa Rica. Each owner gets two weeks at each location per year, and the rest goes into rental pool. Like a timeshare, but on a smaller scale. I'm sure it could be done. 

@Paul Sandhu @Jan Kutrzeba I do hold similar concerns for Nicaragua. I haven't been, and I haven't done my own due diligence, I'm only suggesting it because it seems to be having a moment in the real estate discussion right now. I keep seeing it pop up on lists, and it's seen a recent tourism boost, so I think it's worth exploring for those who are narrowing down destinations. I've heard the political temperature has cooled there, but I fully agree that would be my hesitancy as well. 

I have similar concerns for Utila, while I love the island, I don't place a lot of trust in the Honduran government, and taxes are really high (off the top of my head, I think they're 18%). As well, all the Roatan tourism taxes and cruise port taxes go straight back to the mainland. There are definitely downsides to each destination.

Friends of ours, boat builders and lifetime sailors, actually went into the British Virgin Islands post hurricane and bought up damaged boats that they're fixing with a goal of launching their own charter company (which is a similar model to vacation rentals). I've been poking around at real estate there, but even with the hurricane damage, it's still pretty pricey. 

I'm super interested in exploring vacation rental ideas and destinations, so if anybody wants to chat more, don't hesitate to reach out. 

This is one of my favourite pastimes. I have done a ton of research and travel, and mild obsessing, and these are the destinations I have narrowed in on. By no means am I an expert, and everyone has different opinions and desires for what they want in a destination. For me, I prefer now non-touristy, tropical, authentic, safe(ish), and good bang for your buck. While places like the Exumas, Turks and Caicos, and Caymans are gorgeous, they are unfortunately out of my personal price range. Here’s my short list: Utila, Honduras - I loved this island. It’s small, safe, undiscovered and beautiful. It has that true island vibe and attracts divers and backpackers. Beachfront is still affordable and it’s accessible via both mainland Honduras and Roatan. Ambergris Caye, Belize - It’s really starting to develop, but I loved the vibe, and the fact that it’s a build your own adventure destination. Small, easy to get around, beach bars, and affordable condos are still accessible (though I worry for how long and if it will end up over developed eventually). Belize also has title, and amazing low property taxes) Samana, Dominican Republic - Though the beaches are gorgeous, I am not a fan Punta Cana and other touristy spots. Samana appealed to me - it’s gorgeous, green, mountainous and lush (surprisingly so), small, friendly villages, amazing beaches. And again, affordable real estate. I almost wrote off Costa Rica because I got it in my head that I had missed the market, but a recent conversation led me to peek at real estate again, and surprisingly it is still within reach (Tamarindo area). I haven’t been to Nicaragua, but that’s another one that keeps getting mentioned to me. I can’t speak to it though. And I will add another one, because I really had no desire to return to Mexico, but was just reading an article about this topic, and it mentioned most of the places on my short list, and also added Isla Mujeres, so now I plan to explore that area a bit as well. The bonus of Mexico is the cheap, short, easy flights. I would love to hear where others are looking/considering!