All Forum Posts by: Ram Srinivasan

HI All,

For those familiar with the Calgary market, and even more specifically, the Radisson Heights market, would like to get your advice on this deal. Property is currently Off market and not listed on the MLS.

Asking Price $365,000, Comps in area suggest $360000 to $370000 confirmed by appraisal within last 30 days. Calgary property tax assessment is coming in at $375,000.

My number crunching is listed below. I have several options I can go with this, either buy and hold myself, JV with investor, wholesale.

The rents are 1195 TOP Floor, 1050 Bottom suite Zoned RC1 (basically illegal double suite). To legalize it, I have to rezone and apply for development permit, not to mention meet all the requirements to legalize it. This will cost several 1000s of dollars.

Would like to hear advice from the community at large!

@Bill 

Welcome to BP. There is so much info on here, most of it is applicable to Canadians though there are some topics that you will quickly realize won't work here. Soak up knowledge set up a couple get to know you with a couple folks and get going! 

Also make sure you understand what type of REI you are looking for

@Nick

You must negotiate with a realtor in terms if selling a property.  Especially if it is a realtor you are using to buy and sell with. You can even agree on a scale l. For example first home might be 6 percent. The second would be 5 percent etc.  So there is some incentive for long term relationships on  both sides 

Wow @Account Closed amazing you are starting out at such an early age. Read as many books as possible, that is the most important thing - Read the Top 10 lists, and just keep reading and letting it soak in.

Agreed with all the comments here

@Evelina Neufeld

One tip I would ask that few often  ask is " How do you come up with that price". This applies to anything. If you are bargaining with someone on anything by asking this simple question, you can find the rational and thought process. The seller may be able to fully justify his price, and if that's the case no problem. If you see someone struggling to answer this question, this may be an area for you to investigate

Secondly, the landlord is giving you a price on terms and hence justifying an above market ask. Might be ok to buy SLIGHTLY above market but in this market environment I would be weary.

I also agree that a 3% interest rate (Is this interest only) really low. 

Have you looked at options such as a master lease and an option to purchase? Is landlord wanting out of the headaches related to investing in the property? What is the motivation to sell? I urge you to consider all factors before making an informed decision. Ram

@Chris Leitch, you mention lofty goals..... what is your immediate next action step in achieving these goals?

@Remi Noel- An interesting story, would like to know more! What made you decide to quit your job? Ram

Hello @Kyle Houston- I am trying to understand the Real Estate Insurance Industry.. how does one company differ from the other? Are they not all practically the same, in which you are basically going for the best bang for your buck?

@Lendo Mutambala

Thanks for taking the time to answer my questions in detail. It is important to have focus in knowing what you want to do. 

There is opportunity now for you to A) Pay off your debts, and build capital through your career. Keep in mind though that building capital takes time. You should consider wholesaling or finding leads and opportunities and try to connect and learn from these opportunities. I.e. Even if you do not have the capital to close these deals yourself, you can learn vicariously through others.

A long term, income producing property is definitely great. Flipping in this market is HARD work. Yes deals are out there, but it truly is hard work.

Good luck!, I am always available and open for a chat if you'd like. Ram