All Forum Posts by: Nicholas Field

I could have sworn i heard a BP episode of a buyer doing this. 

Im in negotiation with my current landlord to buy.

I want him to finance the down payment. Traditional financing for the remaining 90%.

Do I explain this to my mortgage broker? They keep asking about “where are the funds for the down.”

Any guidance would be appreciated.

@Michael Cabaña check out this video.

https://m.youtube.com/watch?v=cNkHcjfDhqQ

@Calvin Kwan buybused if you can find a good deal. If not go new. Look every day for weeks.

I do international business and some countries don't recognize LLCs as pass through entities. 

I do this: 

LP ----> General Partner (LLC Company X to avoid liability) 1% owner. Limited Partner ------> Me (Nick) 99%

I control the GP LLC, so in effect it operates the same as the LLC, but it's an LP for tax purposes. Complicated I know. But useful for anyone working internationally. Particularly in Canada.

There's 3 things you should do with your money. 

Earn in. 

Amplify it. 

Invest it. 

My advice is to save up a downpayment on a property. Save save save save save save save save save. Then once your in for your first, you can snowball it. 

Basically you're after the CAP rate. Keep in mind the CAP rate doesn't consider debt.

It's the NET OPERATING INCOME / VALUE 

So If you buy it for 400,000 and it returns to you 20,000 per year it'll have a cap of 5%. (20,000 / 400,000) . 

Okay sweet, you made 20k off the purchase in year, but what about your mortgage payments? They come out of the 20k. What about tourism going down the tubes for the next 3 years? Is 20k realistic? 

Wrap your head around those type of numbers. 

I would suggest you if you do decide to go forward put every possible scenario on paper. And if you lose their money, pay them back somehow. 

I think you're hard pressed to make that an option. The feasibility period mentioned above is a good way to go about it. 

Hey @Brian Hosier, I use DMCL, they're kind of expensive, and would be willing to switch, but they're very on it. They do cross border, which is why I use them.