All Forum Posts by: Account Closed

@William Hochstedler I hadn't thought of contacting a PM. As it happens, we do business with one on a regular basis, so I may get in touch with him in the near future. Thanks!

@Steve R. In years of investing in the stock market, I have had very little success timing the market. Is this easier in real estate? I honestly believe that Calgary's fortunes are not going to improve a whole lot until we vote out both the provincial and federal government... and that could be another 7-8 years easily. I have to believe there is still money to be made. I'm thinking that buying in a solidly blue collar area might be our best bet. People still need their cars fixed etc, and those people still need places to live. The offer we put on a building is going to reflect both the economic conditions, as well the upgrades needed etc.

Hi Brevaughn, Good for you! Time is definitely on your side starting out so young in this business! Have you had a chance to check out the podcasts? I have learned SO MUCH from them. I'm hoping to make my first real estate purchase later this year - the market is falling where I live, and I'm waiting until it gets a little closer to bottom to buy. Good luck, ask lots of questions - this site is pure gold!

Hi Tom,

It looks like a great house! And great story. Congratulation to you on your success!

What part of the city did you buy in? I am also interested in doing a flip, but we'd like to buy a small apartment building first, get that stabilized, and then get going on a flip, hopefully later in 2016, or early 2017.

We also live in a very small bungalow (850 sq ft!) with three kids, and we are looking for a larger house at the moment. We think there might be a little more downside to the market here, so we're waiting a bit longer to make that big purchase. I think I will be the happiest woman ever too when that day finally comes!

@Cary P. Wow, great story! Congrats on all that appreciation, Awesome! I love hearing that it can be done. I'm not excited about the blood and tears... but I'll get through it! :) One other thing in our favour is that one of my husband's closest friends owns an appliance business, and his wife is a senior salesperson at a kitchen/bath cabinetry place. I know that both would go to lengths to help us out in the rehab, although we'll be paying retail for everything else. (We know lots of people, but I don't think that equals deals.)

I'll be running those numbers many, many times before we buy, and my hope is that I'll be able to post our deal on the forum to get input from experienced BPers.

@Cary P. Hi Cary, I'm still learning a lot, so correct me if I'm wrong, but: if we aren't on solid ground with rents, ie. former owner has not been charging market, tenants not paying consistently, vacant units etc - is this not also an opportunity to buy the building at a lower cost? Obviously, we'd want to have confidence that rehabbing to attract better tenants and raising rents to current market value etc would improve and stabilize the building within 12-18 months, sooner if possible.

I know some investors prefer to buy buildings that are rent ready, and stabilized. I just think there could be more upside if we do it the other way - and I'm willing to put the work in to do it. We would manage the property ourselves. I already take care of the bookkeeping for the business we run, and I'm pretty efficient and methodical about it. We know a lot of plumbing and heating people because of the industry we already work in, and I've got an electrician that I like that has been doing the work in our home for years whenever we have an issue. I know it won't be easy, but I think it's doable.

@Joel Owens Ha! I do believe you that a million in commercial is small potatoes. I see some of the enormous apartment complexes around this city, and do not delude myself for a moment that we are just a drop in the bucket here. I also think that because we are such small players, and that because this is our first purchase, we need to be very, very careful. I'd really hate our real estate venture to be over before it's even begun.

I'm constantly surprised how few realtors are actually investors themselves. They've got their finger on the pulse of MLS, get handed opportunities before everyone else, yet so many are just content to make a commission. I wonder if finding a commercial realtor that actually invests is like finding a needle in a haystack...

@Jeff B. Excellent suggestion on bandying about the lingo to see if they know what the hec I'm talking about. That means I'd better get more familiar with it too - so that I really do know what I'm talking about.

@Joel Florek I've heard this sentiment a fair bit concerning realtors, they often think it's a good deal, but fail to dig deeper other than making a few comps with neighboring properties.

I just finished reading Ken McElroy's ABC's of Real Estate Investing, and need to study more on the valuation of such a building. We are definitely hoping to find a diamond in the rough - something that we can upgrade to gain forced appreciation.

And it's a great idea to run the numbers first before taking a closer look at the property. I think without the numbers in place first, it would really be easy to make a decision based on emotion instead of reality. I hadn't thought as far as making a criteria list - another great suggestion. At this point, this building and its features are really just an amorphous blob of ideas floating around in my head. I'm going to get pen to paper and start defining my criteria. I think this will also help pinpoint the neighborhoods that we'd like to own in.

@Roy N. Thanks for the great suggestions! Our residential realtor at first thought she'd be able to help us in this area (and who can blame her - who wouldn't want to make the commission on a 1m+ property), but I made it very clear whoever helps us needs a pile of direct experience. I'm sure she'll still make a nice referral fee off of us. :)

And you are right: I'd better start thinking about financing. We have a relationship with the bank we use for our small (unrelated to real estate) business that we own, but generally speaking, we are always considered "high risk" because we are self-employed - despite having immaculate credit ratings.

Hi, I'm new to the site, although I've been lurking for awhile. Later in 2016, we plan to buy our first investment property. We're shooting for a small apartment building in the 8 to 14 door range. That being said, we don't actually have a clue what the cost is going to be like in our city (Calgary). That's why we're getting hooked up with a realtor so that we can watch the market and learn more about it over the next 9-12 months.

The residential realtor that we've used for years (and think is great) is giving us a list of 2 or 3 realtors that she recommends that specialize in this sort of thing, and we plan to go for a coffee and interview each one. Besides emphasizing that we are numbers driven investors, is there anything else we should be looking for in a commercial realtor? Personality is important, because we plan on having a business relationship with this person that will span many years. Any suggestions for other qualities a realtor should have, or questions that we should be asking would be very welcome. Thanks!

Welcome Geraldine! I am also a very new member to BP (and also a housewife, although I work for our non-real estate business from home). What really got me hooked was listening to the podcasts - so full of info, and by downloading them onto my phone, I've been able to learn so much, all while chasing after my kids, making meals etc. I highly recommend starting at the first one, and just working your way through them.

We are planning to make our first purchase sometime later in 2016 as the market continues to fall in my city. We're from Calgary, and our economy has been really effected by the price of oil.

When I was in my early twenties, I spent several months backpacking around Guatemala, and going to Spanish school in Quetzaltenango - I still have very fond memories of my time there, but sadly have lost almost all my Spanish due to no one to talk to out here!