All Forum Posts by: Philippe Busque

it all comes down to risk tolerance and your own situation. Sometimes a guaranteed 5% is good, sometimes it's not worth it.

What a phenomenal financial position. Congratz.

I don't have much value to add because I'm not a millionaire yet, but I sure as hell wouldn't be bothering with little duplexes if I was you. If you can relocate somewhere cheaper I would consider that, I don't know the vancouver market but in my market you could buy 5 10+doors multifamily with 1m if you pay the market price... Look around in canada imo.

Good luck

Edit : Yes I am new, I'm only house hacking a duplex right now. I disagree with low returns, 100$+ a door cashflow with 100% leverage is a rare beast and it seems to be very achievable just looking at the MLS, so private sales could reach double that for all I know. Do you really need appreciation with such CoC returns? Even in my local market appreciation is a ship that has sailed imo. I have 2 very strong leads right now thought, are you a private lender?

 You are right, I don't know enough to add valuable input here. I think the average income is very low (avg 30k/y) but this doesn't explain it. I wish somebody who knows this market could chime in.

It's def a high risk play - but let's be honest, is the new brunswick province likely to go bankrupt? I don't think so, so Moncton could be great.

 Pretty low honestly. I wouldn't look at this more then 2seconds. They actually tell you it's a 3.9cap here : https://patricemenard.com/uvj0m6/

''Système central pour le chauffage et l'eau chaude payé par le propriétaire'' means owner pay the heating and hot water for every units, that's 22% of the owner's income gone and you will need to spend tens of thousands to change it, very bad building for an investor.

Patrice Menard (which is the agent this is listed with) is the ''biggest'' commercial real estate agent in this area right now. He has a huge network, if something gets on his website, it's not going to be good.

I just started the coaching program from investisseur immobilier du québec, had the first meeting yesterday, very motivating and is tons of value so I will keep looking in this market, I will invest in moncton eventually to try it out, I want to diversify. Good luck to you

 Very interesting, thank you.

This is very annoying if you plan to refi in 2-3 years, do you guys think this could reduce the banks appraisal much if the interest rate is 5% (from 3.25 right now)?

How do you calculate this?

Can you give an example of a 7cap in quebec city?

I have found a quad 6cap off market right now, but it's insanely old (built 1890) and the piping/electricity hasnt been touched in 3 units in the last 40 years... This is actually in Levis thought. Even in the worst area (limoilou/basse ville) I have never seen something over a 6cap. 

I was getting quaterly reports for every public sale last year (2017) from an investment firm, nothing public was a 6cap. Hell a lot of investors were actually putting ridiculous amount of down payment (some up to 35%, lol) because banks wouldnt finance them otherwise. This market is 100% about wealth keeping, you barely take any risk because it's been so stable since forever but there is barely any upside.

I cant help but feel your math does not add up. Quebec does not really have many markets you can get over 250$ per door cashflow, are you planning on investing in trois-riviere? After BRRR 100$ a door in most major citys (beside the mauricie area) is a very good deal nowadays. Do you have examples of the numbers you are trying to work with? Being realistic is the first step.

30k capital with 30k/y is enough to get started but if it's not stable you need to verify first. You need to look for banks that will finance you, start with scotia, I'm with banque nationale but have had very good recommendations for scotia from investors and I will try them in the future.

Are you sure you want to work with this manager?