All Forum Posts by: Steve Davis

Will a bank lend you money at an LTV that doesn't cashflow?

@Peter Korty

Pro forma cap rate is usually your projected rate of return after your investment is renovated and once it is re rented

The better condition your apartment is usually the lower the cap rate as it is seen as less risky thus increasing the value of your property

@Peter Korty

How is your pro forma cap rate reduced to 5.3% without any repairs?

Nice work Steven. I am interested in doing the same also in Kelowna. Do you mind me asking what neighbourhood?

I am assuming you are living in the lower level apartment and renting the upstairs?

Hello BP,

   I am looking for an architect in Kelowna, BC with experience in small multi family buildings that is reasonable in price. If anyone knows someone that would be appreciated. 

Thank you,

Steve
 

@Greg Dickerson

If I were to frame metal 2x6 walls along all the concrete walls and core the holes for the plumbing / electrical rough ins why are my construction cost going to be 30-40% more?

@Greg Dickerson

Greg,

Thanks.

When you say 30-40% are you referring to the entire construction costs or just the framing costs?

Regards,

Hello BP,

   My partners and I have plans to construct a 3-storey 54 unit apartment dwelling. We have buyers that will pre purchase the property but only if it is built with a poured concrete structure instead of wood framing. They understand that the cost of construction will increase and are willing to pay the difference.

   I have spoke to a few builders and contractors and they are all claiming the cost difference is significant. Is there any developers on here that can weigh in on this? It is 50x 2 bedroom 1 bath units and 4x 1 bedroom 1 bath units...

Regards,

Steve   

Hi Lance,

I have built and pre sold homes while under construction without being represented by a seller's agent. However, I did pay a small $400-$500 dollar fee to Purple Bricks (Canadian company) which is a service that gives me MLS exposure to sell independently.

Seeing as most people looking on the MLS are working with a buyers agent I welcomed these agents in on the deal for 2% commission. 2% commission + $500 service fee outweighs giving up 4-5% commission on the sale of your home in my opinion. Plus it is like free market research selling privately as you will likely be showing buyers and agents the home directly giving you quality feedback so you know what to add or remove on your next build.

   As for Facebook, Instagram, Craigslist, etc it is possible to find buyers but obviously harder. It doesn't cost buyers to use an agent when purchasing a home so why wouldn't they use their service? I'd say stick to your guns and continue to sell on your own but be prepared to give up some commission.
 
Cheers!

Hello all. I am seeking information on Kelowna BC in Canada. Are there any investors on this site currently involved in this market? I am wondering how developers & landlords alike are making out in this market. Is there still a lot of opportunity for infill multi unit new construction within the urban core? How are landlords making out with multi family units? Any info is appreciated! Thank you