All Forum Posts by: Mike Jakobczak

I've talked to a few investor who love section 8 housing. I'm not to familiar with it but it might be something you would like to also check in the areas. Might be a good opportunity in the lower income areas.

I am not a big fan of lower income areas. I find they bring a lot of baggage with those properties. Also exit strategies are limited, since most of the time you will be selling them to other investors.

I find usually investors who are into properties in these areas, specialize in those types of properties. They are usually very hands on, or have property managers who have many years in these types of investments.

If you are unfamiliar with an area, I wouldn't get involve in the property by yourself. I would try to hook up with someone who mainly deals with properties in the area, and can teach you details on how to be successful.

Neighborhoods can get pretty bad and sometimes even the lowest prices don't make more desirable to investors.

Hey fellow Canadians!

Well you can register really in any state. I would recommend a LLC from either Delaware or Nevada. The reason is you can register in these states and you can have a virtual business and not have a store front.

On the issue with "double taxation" I think this issue gets thrown around way too much. Let me maybe clear it up. Doing business in the US, you will have to pay taxes. And since you are Canadian, you will have to pay the Canadian government as well. Since you will be paying taxes in the US, you have to make sure you apply for credit for what you already paid the IRS. Then whatever the Canadian government asks for, you will only have to pay the remainder. Canadian taxes will always be higher (due to the health care system)

So once you start making money in the US make sure you have your accountant is familiar with US/Canadian tax laws.

Hope that helps!

Well I would focus on the REO's but instead of buying good deals, I would recommend only offering what would be considered a great deal.

It's a numbers games, but when you close them, you have no problem turning them for a nice healthy profit.

700/month for a 180K property?? That sounds like it must be located in my back yard of Canada.

I would check out what the rental rates are in the neighborhood. Maybe this property is under rented?

Also find out what the resale values are in the neighborhood from a local realtor. Also check for the sales of foreclosures. If the resale values are around 180K and there arn't too many foreclosures. You may have a good deal.

I would then drop the price below market for a fast sale, or even put a 10k owner financed note for a buyer. Making it more affordable for the buyers.

Best of luck! Keep me posted

Well they both have their advantages.

But if you're confident in the area and that your numbers are on the money. I would try to get a loan partner. This will allow you to maximize your profits.

But if this is your first multi-unit building, I would recommend partnering with a expert in this type of venture. This will allow you to learn from the best and also take some of the financial pressure off your back. They may also get to your exit strategy faster and maximize your profits!

Best of luck and keep me posted!

I always get 3 quotes for any job I am doing. It gives me a good idea of what the market rate is. Also there's websites out there that will be you ball park numbers of what it should cost. But just use that as a ball park number because every project is different.

Also If you find a good contractor make sure your stick with him as long as possible. They are very hard to come by and usually when you do find them, they're always busy!

I agree with Wendy on this,

Verbal agreements don't hold no value

Lesson Learned

One of my biggest reasons for investing in areas are school districts. People will move to better neighborhoods just because of the schools. This being said, they will move out of areas where the schools are not so good. I would keep that in mind if you plan on putting in an offer.

Buy with cash to maximize the deal, then refinance.

Even better use Private lenders to cash you out when you close the deal.

Leverage is key in the real estate game, use it to your advantage!