All Forum Posts by: Karl Dela Cruz

Hey all,

Can someone recommend a proper way to structure a partnership to ensure both ends are meeting their responsibilities? 

On my side of the bargain, I will be providing the capital for down payments and renovations, finding deals, and property management

The partner's value is managing the construction of the property and also helping find deals.

Both of us will have a corp set up = both our corps will be on the title for our deals as 50/50.

How should we structure this partnership? Is an equal split fair or do you have any other responsibilities or recommendations that one of us should take on so both ends are contributing to a successful partnership?

Hey all,

I need some ideas to make this property look modern.

I recently got an off market deal 75k below the average sold prices with this quality of home. If I put a bit of money I can potentially get a little more but I just want to rent it out almost as is and refinance my money out. 

I do not want to spend too much on this property so I would like to make it look modern with the least amount of money.

Pictures provided: I was planning on painting the wood panelling beams black and the wood paneling near the kitchen white. Or should I just leave it or put dry wall. 

Any tips to make this place look nice, clean and modern without much work would be great! Thanks 

Hello,

I am starting out my career in developments and I’ll be working with tons of project managers.

I am coming from the portfolio / asset management side in real estate thus I have rarely any knowledge although I can learn fast. 

I will be training soon so I was hoping if anyone had any great books I can read so Ill have some sense of background or context during training.

Thanks,

Karl

Hello Everyone,

I have found a property and would love some guidance on how to make the deal work.

The bank will not give me a loan since I am still a student but I have enough cash reserves for 20% downpayment and rehab costs on at 250k home.

To make the deal work. A partner holds the mortgage and I pay for the closing, holding and renovation costs then pull my money out once we refinance the property. The partner will also handle the renovations.

My question:

- Is this the best way to structure the deal? (Or please let me know if you have suggestions so I am not taken advantage of and capitalize in using my funds effectively)

Goal:

- I want to build a rental portfolio and acquire deals until I graduate and find a job and finally qualify for bank lending.

@Justin G.

Thanks Justin, just read your bio and I’m actually majoring in finance and supply chain as well. I am on my fourth year starting my last semester in January so I am thinking of just finishing.

Question:

What are some books you can recommend and are you still working as a lender today?

Thank you,

Karl

Hello,

For the investors that have a degree in business (specifically Finance) what career path has helped you scale and invest in real estate investing?

The end goal is to be able to syndicate large deals.

Any tips of companies to work for, skills/designations/certifications to attain to improve my skills?

Current background: Finance student looking for an entry analyst role in a firm that focuses on acquisition where I can learn which I will utilize later on to help me with acquiring deals.

Thank you,

Karl

Hello Everyone,

I am looking to find ways to narrow an area. Please let me know if I need to do any modifications or if my assumptions are incorrect.

This information if received from the MLS.

1. I take the five year history of average price sold and days on market (DOM) of houses with 1-2 bathrooms and 3-4 bedrooms.

2. I then calculate the compound annual growth rate to determine which areas have seen the most growth with the average houses prices sold and DOM.

3. I take the top 5 growth rate and DOM and narrow it down to houses that are 300k and below as im focused on affordability housing.

4. I look at the average rental rate for each of those areas and annualized it then divide it by the average price sold. 

5. Anything above 8% indicates an area where im most likely going to see positive cash flow. Anything greater than 10% is a hot area where houses are cheap but getting the most rent.

6. I would then market and find a property around the 8-10% zones.

I hope this helps others. I thought of this while walking my dog haha. Please let me know if there's a flaw or any assumptions I should add to make it more accurate. 

Hello,

Any appraisers here that live in Canada?

What have been your experience into the career. What are the challenges and appealing things.

What advice would you give to someone looking into pursuing this path?

Can you invest in real estate while an appraiser?

Thank you.

@Macintyre Braun

I’m a fourth year student in uni major in finance. I’m doing an internship right now in commercial real state portfolio management.

Do I recommend school, if you're still deciding and you want to pursue REI, I wouldn't. Go find a mentor that's investing in REI. Also don't get caught up with those thousand dollar courses. Find someone who is killing the game and provide value and in return they teach you.

If you're already in school, finish up, get your degree and focus on REI after. (depending if you're in 3-4th year).

So, currently doing this internship, and I’m set I don’t want to do corporate after I graduate. If you’re someone like me who can’t sit at a screen all day, get out and network.

School developed great habits, work ethic and better comprehensive skills and attention to detail. (From what I benefited from) This habit will take you far. Education wise, uni is useless. Outdated info. 80% of it was useless 20% was useful.

P.S. only take advice from people who experienced and went to college/university in this thread. Very easy to say, “skip school, it’s a scam, not worth it” if you haven’t tried it. & “insert quote about how successful people didn’t need school”

@Lee Ripma “offer value” any suggestions?

Thanks