All Forum Posts by: Mike Jakobczak

typically in my leases I have a 60 day notice for renewal. This gives me enough notice to start to market the property if the tenant decides they want to leave.

You shouldn't be scared to approach this subject with your tenant. As you are running a business and need to keep your property rented. It sounds like your tenant is happy and is a great tenant. If you want you can offer an incentive to renew the yearly lease. I sometimes gives up to half of months rent. This is usually a drop in the bucket as the expense to find a new tenant and vacancy adds up fast.

As a foreigner investor I get this question a lot when it comes to buying in the United States. Never chase yields. Chasing yields will usually get you into deep water fast. See the problem when going for cheap property is your main competition is local investors. This is a problem because they know their markets better then anyone. Mainly because they are in the trenches and get the deals before anyone else. Once they cherry pick the ones they want the crappy ones are left to the open market.

What I have found in my 8 years of investing is in the long run cheap properties don't carry the appreciation as an area where people are lining up to get into. If your in it for the long run I suggest to pick a more stable market. Remember real estate is always about location, location, location! A 8% yield could potential turn into a 25% yield with little hassle along the way.

Choose your battles wisely

welcome @Byron Beasley

Great place to join. Always looking for more who healers in the Ga area. Keep me posted on your deals!

Mike

On the tax side it is fine. I've wholesaler a few properties here and there.

Obviously building a good marketing strategy and ground team is key. As you will need to pick up off-market deals to sell to the local market investors.

Make sure you get to know your market well as serious investors will rip your property apart if your numbers don't make sense or if you are just trying to wholesale a property that is either on the MLS or being advertised at a lower purchase price on another website/wholesaler

Talk to a cross border tax account before setting anything up on the entity side as this will be important. I have good referrals for accounts if you are interested in them. Just DM

Personally I like to find a property I can add value down the road. This is the opportunity in which will turn a good cash flowing property into a major success. Now having said that I have bought real estate as just a be chile for the current cash flow. Usually because I like to keep my money working and I really like the area. Also it's a safe spot to keep my money.

What are your other strategies if the property does not perform as well as you think? I always have a back up strategy just in case something goes not exactly as planned.

well if you sign your contract and give your earnest money for deposit that is a binding contract. Make sure your contract is filled out and dated. If the seller were to put it under contract before your terms are up you have legal action you can take.

Once you have secured your buyer and have all paperwork signed you will submit the paperwork to your title company. Make sure you work with a title company that understands what you are doing. Like all parts of this business done are better then others when it comes to working with investors.

If everything is moving forward the title company will schedule a closing date where both parties will be signing and funding the remaining of the deal. Also when you would receive the rest of your money if you are waiting for the close.

I typically structure my deals two ways.

1. I offer 8% for an investor payable anytime within 6 months. No monthly payments, just a balloon payment when the property sells.

2. I offer half the deal. Which the investor would bring the capital for the flip. I bring the deal and the team and we execute.

Typically investor see their money back in 100-120 days depending on the time of year. I prefer working with private lenders because it allows me to build a track record with investors which then allows me to bring them bigger deals down the road and get them funded. Example Apartment building buy/hold strategy.

@Jeff Knight Great to have you on board. Our numbers are growing! The site itself is great content. Obviously BP is great for many things as education and networking for more specific items for your area. Do you currently invest in Barrie? It still kills me the number of people who will travel downtown Toronto from there. Makes for a nightmare for traffic, but I guess it sure beats paying $500/sqft in Toronto haha

I've always found the Canadian market very hard for investors to dig for information compared to the United States. When I was mainly investing in the Canadian market I had to have a bunch of agents to get information for me since there wasn't many websites I could use to find comps of sales, rents etc. The main reason why I would need a few is most agents are obviously busy and I tend to overwhelm them and I needed to use a few.

But on the US side of things, the US market is very open and have many websites that an active investors can use for pretty good information. Obviously I still have agents but don't need to reply on them as much compared to the Canadian market.

I was going to get my license for my own personal purpose and also always have investors calling me for referrals of agents. Just don't want to create another job for myself. Maybe in the future tho I might get around to it.

@Justin H. Ah another Canadian. Our numbers are slowly getting up there. Great to have you on BP. Awesome site of a wealth of experience and education. I'm going to try and get out to @Gary McGowan meeting on the 24th. Hopefully I get to see some of you. I've been busy flying around these last few weeks.