All Forum Posts by: Peter Dukaj

3-bedroom, 1.5-bathroom North Warren home has been meticulously remodeled from top to bottom, with all work done by permits and inspected and approved by the city.  Furnace was replaced in 2017, and water heater 2023. New cement driveway and covered patio. Wallside windows with a 35-year transferable warranty ensure your home is energy-efficient and protected for years to come.

Will rent out at 2k, the basement is partially finished which you could convert into additional rooms to increase rent.

 What geographical region are looking to do a deal?  

I know a lot of real estate agents buy leads on expired properties, maybe find someone desperate to sell and avoid commissions 

To target off-market property owners:

1. Direct Mail: Use personalized letters and public records.
2. Online Platforms: Explore websites like Zillow and Redfin.
3. Networking: Attend local events and join real estate groups.
4. Real Estate Agents: Build relationships with local agents.
5. Driving for Dollars: Identify distressed properties while driving.
6. Skip Tracing: Use services to find owner contact info.
7. Social Media: Search for property owners online.
8. Public Notices: Check local newspapers and notices.
9. Door Knocking: Approach respectfully with your interest.
10. Wholesalers: Connect with those specializing in off-market deals.

Remember to be professional and respect privacy laws. Combining these methods may help build a pipeline of off-market opportunities. Good luck!

It's great that you're considering your options and planning for the future. Buying a home with the intention of turning it into an investment property after a few years can be a viable strategy, but it's essential to carefully evaluate the factors involved. Here are some considerations for your situation:

1. Market Conditions:
   • Assess the real estate market in your area. Consider whether it's currently a buyer's or seller's market. This can influence the ease of selling later or finding tenants if you decide to rent the property.
2. Financial Stability:
   • Ensure that you have a stable financial situation to cover mortgage payments, property taxes, insurance, and maintenance costs. It's crucial to have a financial buffer to handle unexpected expenses.
3. Mortgage Rates:
   • Shop around for the best mortgage rates and terms. A lower interest rate can significantly impact your monthly mortgage payment. Consult with multiple lenders and explore different loan options.
4. Property Management:
   • If you plan to rent out the property, consider the responsibilities of being a landlord. Property management can be time-consuming and may require additional expenses. Factor in these considerations when evaluating the feasibility of renting out the property.
5. Future Plans:
   • Clarify your long-term plans. If there's uncertainty about staying in the area beyond the two years, selling the property might be more straightforward than becoming a landlord.
6. Rent vs. Buy Analysis:
   • Run a detailed analysis comparing the costs of renting versus buying. Include all expenses associated with homeownership and consider potential appreciation in the property value.
7. Tax Implications:
   • Understand the tax implications of owning a home and potentially converting it into an investment property. Consult with a tax professional to explore any tax benefits or consequences.
8. Local Renting Market:
   • Research the local rental market to determine if you can realistically rent the property for a price that covers your mortgage and associated costs. If the rental market is strong, this can be a positive factor.
9. Home Appreciation:
   • Consider the potential for home appreciation in the area. While it's not guaranteed, if the property value increases over the two years, you may be able to sell at a profit.

Ultimately, the decision to rent or buy depends on your specific circumstances, goals, and the local real estate market. It might be helpful to consult with a real estate agent, financial advisor, or mortgage broker to get personalized advice based on your situation. They can provide insights into local market conditions and guide you through the process of making an informed decision. Good luck with your decision-making process!

Hello,

Welcome to the community, and thanks for sharing your project! It sounds like you have a solid plan in mind for developing the vacant land in the Niagara Region. Here are a few thoughts and suggestions:

1. Funding Options:
   • Given your real estate background, you might want to explore traditional financing through banks or credit unions. They often offer construction loans for real estate development projects.
   • Private lenders and investors could be another avenue. You may consider presenting your project to potential partners who might be interested in investing in a real estate development opportunity.
   • Crowdfunding platforms specialized in real estate could also be an option, depending on the scale of your project.
2. Estimating Costs:
   • Engage with local contractors and builders to get detailed estimates for construction costs. They can provide insights into the specific costs associated with your project, taking into account local labor and material prices.
   • Don't forget to include soft costs such as permits, architectural fees, legal fees, and any other administrative expenses that might come up during the development process.
   • Given your experience, you could also consider consulting with a real estate development professional to ensure you've accounted for all potential costs.
3. Profit Margins:
   • It's great that you've already outlined your profit margins. Make sure to build in a buffer for unexpected expenses or market fluctuations.
   • Consider conducting a market analysis to ensure your projected sale prices align with current market trends in the Niagara Region.
4. Timeline:
   • Your estimated timeline of 12-15 months sounds reasonable, but it's essential to factor in potential delays such as weather, regulatory approvals, or unforeseen construction issues.
5. Legal and Zoning Considerations:
   • Given the change in land use (from a single vacant lot to multiple building lots), it's crucial to understand and comply with local zoning regulations. Consult with a local planning department or zoning expert to ensure your project meets all legal requirements.
6. Networking:
   • Since you're open to discussing lending options, consider networking with local real estate professionals, developers, and financial institutions. Attend local real estate events or reach out to your professional network for potential connections and advice.

Remember, each real estate development project is unique, and local factors can significantly impact the success of your venture. Consulting with professionals in the field and seeking local expertise will be key to ensuring a smooth and successful development process. Good luck with your project!

Hi there,

It's great that you're seeking advice on this matter. I'm not a financial expert, but I can offer some general information that might be helpful. Capital gains tax is typically levied on the profit made from the sale of an asset, such as real estate. The gain is calculated by subtracting the purchase price and any eligible costs (improvements, fees, permits, etc.) from the selling price.

In your case, if you sell the vacant lot for $100k and your total investment is $100k, it seems like you might not have a capital gain. However, it's crucial to consider other factors such as transaction costs, real estate agent fees, and any outstanding loans related to the property.

Additionally, tax laws can vary, so it's advisable to consult with a tax professional who can provide personalized advice based on your specific situation and local regulations. They can guide you on any exemptions or deductions that may apply to your case.

Remember, this information is not a substitute for professional financial advice, and it's always a good idea to seek guidance from a qualified expert for your specific circumstances.

Investment Info:

Other buy & hold investment.

Purchase price: $65,000
Cash invested: $20,000

Vacant land purchase off market. I invested some money in clearing the land and getting developed to build new construction.

Investment Info:

Condo fix & flip investment.

Purchase price: $45,000
Cash invested: $20,000
Sale price: $102,500

Fix and Flip condo purchased at a tax auction. The property fell into my lap as the highest bidder did not make good on his bid. The property was in a flood zone which made it difficult to sell, ultimately sold under market value to a cash buyer as the property could not be mortgaged.