All Forum Posts by: Steven Gingerich

@John Moorhouse I wouldn’t recommend dropping out. BUT...

I did fall one course short of a diploma. I finished grade 12 with 120/100 required credits. The only course I was short was an English 30 course, which was a required course to graduate in Alberta.

I did NOT graduate, rather than taking that English course I took a “pre-employment Electrician” program which was called “dual-credit” made for creating more tradesmen in my generation.

After finishing that course, the week after school ended I got a job with an electrical company and completed my trade within 3-4 years becoming a Red Seal (Interprovincial) Journeyman Electrician.

I’m registered in courses at NAIT to get my Blue Seal (Business Management) this fall. And in September 2021 I’ll be eligible to go for my “Master” Electrician.

I currently own three buy and holds and have one flip under my belt with a profit of $39k on the flip. So a total of 5 units right now with two up/down duplex’s and a single family home.

I’d say follow your gut, get the required courses to become a firefighter and the required courses/grade level to apprentice inthe trade you desire then GO AFTER IT.

Life’s short, logically make a plan to achieve your goals then execute.

I’m a landlord and a Journeyman at 22 yrs old with a diploma, how often do you think I get asked if I have a diploma? NEVER.

The best part is when people laugh or scoff, and you’re far more successful than they were at your age.

Go get em.

@Mindy Jensen that’s great info, unfortunately the property is in Alberta. I’d imagine the laws are similar but with that in mind I was hoping to catch the attention of an investor with experience in Canada or more specifically Alberta.

If you know anyone with Canadian Home Improvement Loan experience, please send them my way.

Thanks Mindy!

I’m going through a purchase right now, $152,000 for an up down duplex. I’m using a strategy I came across in one of Russ Whitney’s books. A home improvement loan.

The IDEA is to buy a house, say $100,000.

-$20,000 down payment

-Apply for a home improvement loan that will be added to your final mortgage once repairs are completed

-Get quotes on work to be done from contractors (high end quotes) and supply them to your mortgage broker.

-Then say the quotes land around $40,000, potentially adding $40-50,000 in after repair value.

-The idea is to then do the majority of the work yourself, say cutting Reno costs to $20,000 from the quoted $40,000.

- In theory you would have added the SAME ARV and potentially take home the same $40,000 Home Improvement Loan, which (being $40,000) should be enough to pay the LOC off that you used for capital for material and labour, as well as to pay yourself back for the down payment of the home.

I’ve taken on the strategy of getting quotes for a few new windows, a new basement kitchen, and expanding the basement washroom, taking out the kitchen wall in the basement for an open concept with the living room, AND adding a 5 foot privacy fence in the back yard as well as adding gravel parking spaces from the back alley.

The idea is gold, but I have a feeling that the Home Improvement Loan may only match what receipts/invoices I have for material bought and labour of the contractors.

The conflict here is that I was under the impression that the Home Improvement Loan was based on the after repair value of the home-purchase price and NOT based on what the repairs cost....

Any knowledge or experience with this strategy would be greatly appreciated.

Located in Northern Alberta,

Steve Gingerich

@Jian Lin Tuesday’s With Morrie. Nothing to do with Real Estate, but the life lessons within are invaluable.

@Roy N. awesome advice. Greatly appreciated, the multiple high ratio mortgages were mostly strategic in my understanding that you can have one 95% LTV mortgage under each insurer.. I may be wrong there but it worked for me.

I was unaware of the possibility of having to bring them to 80% at the end of the term so I’ll keep that in mind, that’d be a BIG slap in the face.

I would have preferred doing a 20% down payment, but all I had was the 5% and the guts to risk making money through the equity and cashflow rather than saving that 20% myself...

That being said, the young and dumb in me says to jump in with both feet. If I could have 5Million in Real Estate debt, I’d do it today. The annual equity is key. After that equity builds up the next purchase comes faster and faster.

The bonus here is that I don’t have much to lose, if there were ever a time to jump in with both feet and fully leverage... I think it’s now! Thanks Roy!

@Lauren Cooper avoid stocks, buy tangeable assets. If you leave that In a bank account, it may not even keep up with inflation and it may lose value. Maybe 100k in gold and the rest on a solid cash flowing apartment building. With proper due diligence, legal advice and an accountant by your side of course. That’s what I would do!

If you’re not landlord material, hire a competent property manager and enjoy retirement for the rest of your life!

@Omar Khan agreed, wish I had read that before I set up my Corp in the fall. (The intent was to bring on private investors with a below average project pitch) needless to say that didn’t work out and I’m making it happen alone with creative Financing. Although now I have the Corp there for when I’m ready. Just a matter of filing Nil Remittence until we’re big enough to go corporate.

@Luc Boiron I agree! I set up a Corp in the fall prematurely (with the intent of private investors) , cost a few grand but now I have it and I can keep it until I’m ready for that. Just decided to go it alone, all I have to do is file Nil Remittence until the day I’m making enough for the Corp to be worth it!

Hey Guys.

Interesting situation here, starting to snowball with property. Thoughts comments, advice are all appreciated.

Bought my first single family at 18 for$69k and 5% down with CMHC insurance.

A year later, bought the second cosmetically distressed single family for 5% down with Genworth for $75k. I fixed it up, lived in/rented it for a year and sold for $110k.

With the proceeds, paid off an apprenticeship student loan, a quad loan, AND bought an Up/Down duplex for $235k, AGAIN, 5% down with Genworth Mtg. Ins.

4 years after buying my first property I have just sold a tent trailer, with the $5,000 non taxable income, I paid down the first mtg. To a point where I own more than 20%, intentionally doing so to reappraise the property and take out the available HELOC from forced appreciation.

With this new $5163 HELOC and an existing LOC for $20k I have an accepted offer on a foreclosed 2bed Condo rebuilt in 2013 that was valued by CMHC at $157,000. The accepted offer is for $94k. I plan to reappraise the property immediately after the purchase and buy a fourplex that I already have lined up for $225,000. The condo itself cash flows $225/mo.

This would take me from 3 to 8 units in a matter of weeks/months using none of my own money and without private investors or hard money lenders.

The cashflow on the fourplex will be enough to cover the Line Of Credit payments and then some.

I don't have any vehicle or toy payments so I will be putting $1000 personal cash to paying down the LOC's faster.

After around 1.5 years the LOC's will be at zero and ready to spend again, I'm thinking a 6plex will then be the next step.

What are your thoughts or experience with this strategy in Canada?