All Forum Posts by: Michael Roman

We are missing 25k CAD to close on a 655k property. Looking for private lender willing to do a loan.

Willing to offer 8% on a 1 year equal payments or 10% on a 2 year equal payments + 2nd position on the home as guarantee as well as personal guarantee.

Property is a 250acre plot of farmland with a 2500 square feet property.

Closing is November 15 2018. First payment would be December 1 2018.

We are located in Canada.

Originally posted by @Roy N.:

@Michael Roman

The lifetime capital gains exemption is applicable to the sale of a) qualified small business {CCPC} shares; b) qualified farm property or c) qualified fishing property/business.

A qualified small business must generate its revenues in the form of active income, which explicitly disqualifies holding/investment companies whose income is predominately passive.   

 I stand corrected.  Thank you Roy.  My recommendation however to hire a specialized and provincial accountant would still stand in order to get the best possible recommendations.

@Matt Belzile Hi Matt- what was the result of their opportunity?

@AJ Dhillon how far away from Toronto are you comfortable with investing? There are a handful of markets in Ontario and Quebec that will give you good cash flow and appreciate steadily in value. There is also a lot of people looking at retirement that have had their buildings for 30+ years (baby boomers) where value add opportunities are huge. Would love to hear more.

@Edward Rueca Canadians are allowed a lifetime capital gains exemption. There are also stipulations for properties that were in fact primary residences. I do not want to give accounting advise as I am not an accountant but I would recommend spending $500 on a seasoned and reputable chartered accountant that specializes in this and it may just save you tens of thousands of dollars. He may also recommend a restricting of your assets through corporations.

Originally posted by @Rachel Leider:

@Michael Roman Hey always nice to see another Montreal investor on the forums! We are actively looking for an investment property in Montreal. I am curious, do you use an agent? We are having trouble finding an agent that is an expert in investment property sales.

Hi Rachel, I do all my research personally as I haven't yet found an agent that I love working with.  We do deal with them when they have the listing but I prioritize private sellers first.  If you tell me what you are looking for, I can help you find it or bring you all into one of my deals.  PM me and we can take it from there.

@Ian Ong look at secondary markets or partner on some out of province deals where the numbers make sense :)

@Jim Johnson returns in Canada are not that low. You are referencing a 7 cap, I have multiple deals right now at cap rates between 8 and 14 with possible equity increases of higher than 20% after small renos and a tenant cycle. The deals are there for those who dig for them.

@Salvatore Giancola congrats on your success and I thank you for sharing about windsor. Drop me a line if you ever want to venture north east.

@Anastasia Kristina I found a few markets in Ontario and Quebec that have great cash flow, good and constant increases in property value while being stable markets (low vacancy, high rent to purchase ratios, above average population growth). I like Outaouais, Laurentides, Lanaudieres, Estrie and certain pockets of Montreal in Quebec. For Ontario I like Sudbury, Kingston and newly discovered Windsor(due to so many talking about it on BP). Ottawa was great but the numbers dont make sense no more. I also found that in many of these markets, the sellers are retiring, they are not overly greedy, some offer seller financing and there is always great value add opportunities (mostly under value rents, easy light reno cosmetic jobs and leases that include electric heat and water which can easily be transferred back to renters. All that gives really good numbers.