All Forum Posts by: Nick Cote

@George W.

Ya I’ve never looked into that in Canada. I think if I would think of going that route, I’d either do it all my own business or stay at my current job. I agree it’s not worth the license on the line when your not getting full benefits of it

@George W.

Ya exactly lol and the passive part comes from real estate. I’m sure I’d have lots to learn with opening a business but I think it would be a great challenge and also have some good perks with it

@George W.

I can definitely see where your coming from. I do kind of like the idea of building a business and investing the business profits into real estate. I’m not looking to grow the biggest business in my area, I’m looking to build a nice sustainable business for myself and few other employees, as well as focus on real estate because I really enjoy doing it

@Greg Dickerson

Electricians in my area are in pretty high demand, it’s not a massive city but it’s definitely growing quick. I think I could do well with a business from the people I know; other business owners that could bring in several referrals

Yes I would need to continue working to invest in real estate. I don’t currently have enough cash flow from my properties to allow me to continue to buy properties. What makes it slightly harder in my area is there aren’t any properties available that can be rehabbed and refinanced right away. It’s a booming market so need to pay a fairly high price for a property that needs some work. You wouldn’t lose money on the property, you just wouldn’t be able to refi right away as in Canada you can only refi 80% of the property value.

I do get paid well at my job I just feel like my own business would be a new challenge I would love as well as give me more freedom to focus on real estate and my own renovations at the same time. It might be tough to juggle it all at the beginning but I’m sure I’d pick it up pretty quick as I currently run quite large projects for my company so I’m very good at organizing my time, other trades, have a good idea of how long things take, how much it costs, etc..

@George W.

It is expensive in my area to but real estate. I’m currently located in Canada. But buying a place to rehab myself can obviously put a lot of equity into it while doing something I really enjoy, and doing it for myself makes it that much better!

@Mike Freske

I could do both it could just be a bit challenging considering I don’t know ALL the ins and outs of the business side so that would be a learning curve. Learning which I’m completely willing to do, maybe I’m just nervous to do it but I know I can

@Steve Hall

Thanks for the info Steve!

Actually I am currently doing that, have done it twice now. I'm currently living in half of my duplex and rented the other half. I completely rehabbed the place. Real estate in pretty expensive in my area of Canada, but rents are also high so it kind of evens out. I spent about 274k on the house, put in about 40k worth of work myself and it now rents for a total of $3,000 a month. Same deal with the last one I bought, I get about same numbers. I really enjoy doing it which is why I do think real estate is for me. Only think that makes it tough is to work a full time day job AND Reno my BRRRR property at the same time. That's why my thought was maybe some sort of my own company so I can schedule my own jobs and work on my houses in the down time. Or maybe split the time between company work 4 days a week and other 3 on my property which I can schedule myself.

That part I'm not too familiar with, keeping everything in separate LLC's and holding companies. What's the advantages to this?

I also feel if I quit my day job without having enough cash flow to support expenses, it’s a bit of a risk but I do have the advantage of being able to do any reno myself to build equity as well as pick up jobs through a self employees company.

Appreciate any input you could give!

I am a licensed electrician looking to potentially open my own contracting business. I also am a landlord of 2 rental properties and plan to continue expanding my portfolio. Any suggestions which route I should take?

1. Focus on building electrical company first then expand rental portfolio.

2. Concentrate on accumulating as many rentals as possible until I have enough cash flow to comfortably cover my monthly expenses then begin building my electrical business without the NEED to pick up jobs to survive.

I keep going back and forth but unable to make the final decision. I’ve got no issues with my current job just feel I’ve got more in the tank. I know if I start my business now, I won’t have much time for real estate which is a bit worry sum for me as I love real estate too. I’m also very handy with other trades, can do my own drywall, painting, flooring, plumbing, you name it. Which is where I could see a big advantage to going the real estate route and doing my own Renovations as a contractor saving a ton of money. Any suggestions input or help would be greatly appreciated

Thanks! @Roy N.

I do have a tax accountant just trying to make sure I understood for myself. If you don’t claim CCA each year, when you sell your property, does anything get recaptured or is that only if you DO claim CCA? That is my understanding anyway.

@Anthony Wick

Is this the same in Canada? I was under the impression if we don’t claim depreciation in Canada, you will just get taxed on capital gains when you sell not recapture.