All Forum Posts by: Lee Jackson

Great Job!! Shows there are always deals out there! and the BRRR works!

Keep it up!

Welcome to BP    your in a great area, to find good priced investment properties and build your portfolio!    

Tons of information here to help you out!

Welcome to BP Jordan.    

Your are right, a drastic difference in pricing compared to the US.   But you are in a good spot, Peterborough has great rents, and a surplus... almost to say in tenants.   I have a duplex, which has decent cash flow in the south end.  And I'm looking at a 4 plex now.   There are deals out there! 

Hard work, lots of analyzing / making offers, keep moving forward and you will get there.  

Also you have probably already noticed, there is a ton of information here on BP, and a great community to help out. 

Great info guys.   This was very informative for myself, and I believe it can help many other people.     I have done all the RK books...   I think it is time to do DR now.     Best of both worlds.     

Great post.   Good advice, I'm looking for a tenant right now, and this definitely keeps me pointed in the right direction!

Welcome to BP!  We have an awesome community here.   There is tons to learn.   Easy start is with set you your keyword alert in what interests you.   You will learn tons of information just with that.   

@ Matt Boettinger, yes I believe that the rest of the commercial store fronts on the street are all currently occupied.   The is currently a full revamp of the main street and sidewalks.  Which I wonder are keeping anyone from moving in.

@Yousef Reda,  Thanks for the input and the idea about converting it to a residential area!   

Thanks for the input @Claude Boiron, and @Allen Fletcher.

I would be a newbie for the retail side, and have had the same thoughts. 

No, be as rude and mean as you can... I need it!     Apparently with the set up of the offer, I believe the title stays in his name.  for the time being, unless that would happen at the end of the term.

Thanks again.

Lee

Hi everyone,

I am looking for some input on a potential listing I found.  It is an older 3 floor residential / commercial building.  3 apartments, 1 store front.    The owner is selling as a Seller Financing option.  Which turns out to be, what he calls an "Agreement for Sale".  He says it is really big in the west coast of Canada.  I am not sure about this strategy. I am wondering if this is like a lease option agreement or something...  From what I have read, the "Agreement for Sale" - I would need to be foreclosed on if I started missing payments, with the opportunity to build myself back up. Compared to a lease, where I would possibly loose the down payment and everything immediately.

Anyways, details -  List $339,000.   he would like $25K down.    

2 - 1 Bdrm aprt $700 includes utilities

1 - 2 Bdrm aprt $500 ++

1 - 1000 sq/ft Store front $1100 ++   (Currently Vacant) - Blaa...

Utilities Run  $200 hydro, $300 Water, $335 property Tax, $200 insurance.  

Vacancy, CapEx, Maintenance - 5% - $150 each... I am sure I am low for the CapEx and Maintenance. - There could be lots to work on....

Total Operating exp $1600, 

I have been talking to him, and he is down to $299,000 at 4.95% 35 yr am, with 5 yr renewal = $1404/mnth

And Since i do not want to use my own money - he will do a 2nd Mortgage on my current rental $20K @ 7% interest only payments, $115 mnth which i have included in the analysis. (is this in it self a bad move)

I have done the rental Calc... looks bla... -$5 cash flow per month... NOI $16,800. Pro forma Cap Rate 4.8, Purchase Cap Rate 5.6%

The only reason I am a little stuck at wanting to go a little deeper into this deal is because, the area is decent for better rent, and I believe the apartments are all under value in terms amount... I could probably get the 2 - 1 bdrms for $7-800 ++, and the 2 bdrm $800+... as for the store front, it has been empty for a month or so....

Its located in Ontario, about an hour east of Toronto.

Any thoughts, ideas, criticism, would be greatly appreciated.

Lee

Hi there, 

Are you looking to sell them out or purchase using one?

I was just offered one of these the other day... But in Ontario.  The owner says they are very popular out west.

I am also interested in learning more, if anyone has any input, would be great to hear.  

Are they similar to Lease options?  or just another type of seller financing?

Lee