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All Forum Posts by: Account Closed

Account Closed has started 32 posts and replied 77 times.

Post: What's up with Shawinigan?

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19

-3.6% population decrease 2011-2016 (check the census). i would avoid. but yes, looking at the centris.ca properties the cap rates are great. 

Post: do these cracks look like a deal-breaker? (masonry)

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19
Originally posted by @Chris Baxter:

@Account Closed every building has its defects, and there is no reason to get particularly worried here IMHO... Every problem has a solution, and you can leverage visible "scary" defects into a better deal.  Did your inspector tell you "there is a crack" (obvious, useless information) or did they identify something structural that can be the root cause?  Do you have access to a contractor / structural engineer that can assess the severity and provide a remediation assessment / cost? I use quotes /estimates from professionals to drive price reductions when closing. 

 Hi Chris, here is what the inspector said:

"

At numerous places, the inspector observed cracks on the brick walls and mortar deterioration.
Cracks are usually signs of some movement. Mortar is a bond-making material composed of
measured amounts of cement, sand, and water. This situation may allow water to get into these
cracks and, along with the action of freezing and thawing, may cause damage to the inside parts of
the wall or crumbling of the brick wall. The repair of these deficiencies could be costly and it is
recommended that the buyer get an appraisal from a certified mason before the end of his offer to
purchase condition.
"

there are two small cracks in the poured concrete foundation (barely visible) and the concrete slab is ok. the building was constructed 1937.

Post: do these cracks look like a deal-breaker? (masonry)

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19

Hi Mike, it was built in 1937. do you mind if i email you the full report? thanks,

Post: do these cracks look like a deal-breaker? (masonry)

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19

Hi all, i'm getting ready to close a triplex in Sherbrooke, the inspection turned up quite a few cracks in the brick though....like the building leaned slightly to one side a while ago (although the foundation is solid). the current owner says the cracks were there before he bought it (over 20 years ago).

just wondering what you think, i will probably ask for a price reduction, maybe $3000 or something...how much does it cost to repair brick, anyhow? i assume good masonry isn't cheap. thanks!

Post: Rental Property in Canada

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19

Hi Alex, 2% rule is a fantasy in Canada (At least, i haven't seen anything close). shoot for 1%, which will still generate cashflow. 

here's an example of a good property i recently put an offer on (offer was rejected because they had a better offer from someone else). i offered 265k. 

https://www.centris.ca/fr/multifamilial~a-vendre~windsor/20030446?view=Summary

38760 (Gross rent) divided by 12 = 3230

3230/265000 = 1.2%  so its slightly better than 1%. and this is probably one of the best i've seen lately in my area (sherbrooke, quebec). 

Post: vacancy rates for smaller towns (quebec especially)

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19
Originally posted by @Benjamin Larouche:

I'm curious to hear what others have to say. I went the route of looking at demographics (in particular the ownership rate) to get a sense of the pool of tenants. I'm also looking at the overall economic outlook of that city (type of economy? Growth or not? Average/Median income? etc. Good luck!

 thanks Benjamin, so do you have some kind of formula you apply here? ownership rate * total population, to get size of renting pool?

Post: vacancy rates for smaller towns (quebec especially)

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19
Originally posted by @Scott Innocente:

Vacancy rate in Windsor (in my opinion) is 0%.  If I were running estimates on a purchase, I would use 2.5 or 3%

 Hi Scott, i think you're referring to Windsor Ontario, not Windsor Quebec ;)

Post: vacancy rates for smaller towns (quebec especially)

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19

Hello, its fairly easy to find vacancy rates for large cities and towns like Montreal and Sherbrooke, but i'm having difficulty finding the rates for smaller areas with populations under 5-10k (for example, Windsor, Quebec seems to have some good multi-family deals, but i can't find a vacancy rate anywhere). 

does anyone know where to find vacancy rates for small towns, or how to best approximate them? should i contact directly realtors who are working in these towns? thanks,

Post: how to get loan for downpayment?

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19
Originally posted by @Philippe Laurin:

@Shiv Dutta: Correct, this means incorporated. For example, you create Company XYZ Inc. Once the company is created, you go a bank and ask for a company credit line. Because the company is new, they will ask for personal financial information, and if all is good then you have a credit line you can use. 

interesting, thanks for the info.

Post: how to get loan for downpayment?

Account ClosedPosted
  • Investor
  • Sherbrooke, Québec
  • Posts 77
  • Votes 19

Hello, i'm about to purchase my second property in quebec, its a duplex, 130k. i won't be living in the property so i'll need to put 20% down, or 26k. i would rather not dip into my equities for this, does anyone know some creative ways to raise this small sum? what kind of interest rates can i expect to pay on this loan, given the current market conditions? thanks