All Forum Posts by: Ryan Westcott

Hey Lucas, you are in the right place to find contacts to help you achieve your goals.  Bright side is you have sparked an interest at an age where you have so much time ahead of you, that i don't see why you cant 100 doors one day.  Starting out I would buy the property in your own name as their can be some tax advantages to your principal residence.  And obviously If you can secure financing with the big banks the rates are generally preferable.  Sounds like financing may be tricky till your income increases so a cosigner may be the answer.  I will DM you a few mortgage broker contacts that you can reach out to.  Happy to help with any renovation questions as well.

I have not used property management software myself from the management side, but I have used 2 property management companies in Ontario for their services and they both used buildium for their software.  So it may be worth another look.

I have done a lot of leg work on this lately as I will be setting up a corporation as well.  That being said, opening a corporation is not the most effective tax strategy if you have a small portfolio of a few properties.  Quick disclaimer here that I am not a lawyer or accountant, so you can confirm this information for yourself.  But in Canada, there is not the same tax advantages that there used to be in setting up a corporation.  This is because Real Estate is taxed as passive income vs a small business that would be taxed at a much more favorable rate.  When you are taxed at the passive income rate of over 50%, it is higher than taking the income and paying tax even at the highest income tax brackets.  The cost to file a tax return for a corporation is much higher than it is to complete a personal tax return as well, so you should probably confirm this with your accountant.

From a legal perspective it makes sense to have a corporation, and your lawyer will almost always advise you do so.  If you are purchasing single family homes, it may be more difficult to finance in a corporation vs. your personal name.  Once you start buying multi family properties it will make it easier to grow your portfolio within a corporate structure according to the conversations I have had with numerous mortgage brokers.

There are ways to set up a structure with a holding company and an active property management company to reduce taxes, however you incur a lot of costs for set up, and you will be filing 3 corporate tax returns and it is very costly.  I would have a chat with your accountant as he may advise that a corporation may not be the most effective at the moment.  And make sure you confirm how much they will charge you for filing every year for your corporation.

I would get yourself acquainted with a good mortgage broker that specializes in investment properties if you plan on continuing to grow Ron.  My first 5 properties were with the large Canadian Banks.  Interestingly for my 6th and 7th property I went to the large banks and was turned down.  When I ended up going to a mortgage broker they somehow secured preferred financing with the same bank that had turned me down when I went to them directly. Subsequent properties were financed with B lenders or credit unions,  but the mortgage broker can take your deal to market and come back to you with options.  The last few properties the mortgage broker has come back with 2 offers from lenders, and I have selected the one that had the best terms and rates to suit my needs, without having to shop multiple lenders yourself.  Best of luck!

I think we are all hedging out bets one way or another right now.  With the appreciation the market has had, it would appear ready for a correction.  However I take comfort knowing rental vacancy rates across the country are at historic lows and inventory remains incredibly low, while immigration remains strong.  Prices of some construction materials have doubled and tripled, so the cost of new construction will be increasing as well, and the governments printing of so much money during Covid can only drive inflation up.  So I am still buying!

Congrats Jayden!  You will likely need to joint venture or partner to get to 100 units.  But you have the biggest asset on your side which is time since you are starting so early!  So you have lots of time to keep growing your portfolio and refinancing along the way to purchase more.  4 plex is a great first step!!!

Hi Nick, I have a portfolio in ontario but as Jordan commented, I am starting to invest in Eastern Canada as well.  Market is hot, vacancy rates are at an all time low.  And it is far more landlord friendly than Ontario.  I would strongly consider investigating 👍

Hey Nelson, I would follow the trends. I renovate apartments for large REITS and everything is white and grey when it comes to color schemes. I'm not a fan of ikea myself as the cabinets come unassembled. White is easy to match if you ever need to replace a kick plate or cabinet doors down the road as well. Lots of property owners are using quartz for countertops now to compete with new condos but I would stick to laminate counter tops in your area. If you DM me I can send you a few contacts I have for suppliers.

cheers

Ryan

Hi Nick, I realize this has been posted a while, but thought I would jump in as I uunderstand your frustration.   I live in Cambridge an hour away from London but own several properties there.  Be persistent and you will find something.  I have picked up pocket listings from realtors and a property from a wholesaler.  You could find some wholesalers in your area and get on their mailing list.   But be ready to act fast as everything gets picked up instantly in this market.

Hey Ciara, there are some great real estate meetup groups in the area that you can find on event brite or meetup.  There is one tomorrow evening in Cambridge.  I will send you the details so you can check it out.