All Forum Posts by: Paul MacInnis

@Domingo Santana - you're welcome!  Good luck with your investing!

@Roy N. - there is apparently an offer pending....no clue who the prospective buyer is or what the offer was though.

@Roy N. - good point, I'll keep quiet - HAHAHA.

Yes, mah have set the bar a little high!!   I agree though - this should yield repeat investment!

Hope all is well!

@Andrew Syrios - thank you very much!  We are definitely quite pleased with this one!  Cheers.  PS - i loved your podcast you did!  episode 121!

Hi all,

I recently read a great success story by @Huy N regarding a deal he carried out in Texas and it made me realize that reading success stories is a great way to reinforce the awesome power of REI.

Recently I wrote a blog post about a deal I closed on a triplex and while I don't want to go through the details of the acquisition if you'd like to read more - please do so here.  (https://www.biggerpockets.com/blogs/8314/50302-pod...)

The point of this story is to tell you about how I helped to create some awesome "wins" for my investors.  

So my triplex was 127,500, I put 20% down ($25,500) plus closing costs brought me to about $29,000 needed to close.

The building was purchased under value - and expected appraisal for a refi in 12 months is at least 170k.  It appraised for 180k in January of this year.  

I won't bore you with details - but the cash-flow is approx $800/month after a few small alterations from my BP analysis were done for the JV agreements.

Investor 1 - Gave me $10,000.   He's a passive investor in that he wnats absolutely nothing to do with the property.  

He will receive - $150/month for 12 months plus a $500 bonus after the refi.  Total monies received = $2300.   2300/10000 = 23% return.

Investor 2 - Gave me $17,000.  He's an active investor and will actually manage the property for the 1st year.   

He will recieve 50% of the cash flow each month (after all expenses including CAPEX are deducted) - which will average out to $400/month.

After the refi - he will recive 60% of the difference between the amount left owing on the mortgage and the new value.  So, conservativley, at a 170k appraisal - an 80% loan will be 136k.  If we subtract approx 102k that will leave 34k.  So he will receive 60% of that which is $20,400.   This is his original 17k back plus $3400 more.  All told his return will be:

3400 + 4800 (cash flow) = 8200/17000 = 48.2%.

Needless to say - both investors are very happy!  As am I.   

This isn't an every day deal but over time, if you're consistent - these types of deals are out there.   Hope you all enjoyed the info!

@Huy N. - amazing story!  Love hearing stuff like this - it really reinforces why I'm investor in real estate!

@Stephanie Cabral - congrats on the deal and thank you for sharing your lessons and thoughts! I'm very interested in the LLC idea - i'm in Canada - so i'ts a bit different - but ostensibly, I want to start doing the same. One question I had was regarding the appraisal - did you pay to get an appraisal done beforehand or did you just have a good sense of what you thought it would be after the reno?

@Cliff H. - sounds great!  I'll PM you.

HI @Neil Sea - congrats on your 1st purchase and I love that you've set tangible goals!  Nice work!  There isn't a ton of wholesaling in Canada (although i'm sure it exists in some markets) for various reasons - search the forums and you'll see some great explanations - especially from Roy N!  

I do all of my investing in small multi-family properties in Nova Scotia.....this is a year of growth for me too, i've gone from 8 to 20 units since January.......and will get to 30 by the end of 2016.   

Funny you bring up living somewhere warm - that's 100% something I plan to do!   I went to Costa Rica last year with the family for a vacation and LOVED it there!

@Account Closed - Hi Elias!  Good to meet you.  I'm from Nova Scotia.  I can't help you much with the Montreal market - but there's a great under the community tab to "find members" within a certain geographic range of you!  Good luck and if you have any questions and I can help - please let me know.