All Forum Posts by: Stirling Mintz

@Philippe Laurin Understood. Based on the few analysis Ive done so far, Ive been mostly focusing on COC ROI, initially doing long hand math using 4 square method, but now using the BP calculator, which have all generally yielded pretty poor COC ROI relative to what I hear in these american podcasts. Of course, my inputs are completely unreliable estimates, I am just putting numbers in that I think are conservative based on videos Ive watched. Also, using MLS listings which are notorious for being expensive, so really did not expect a deal. Regardless, it is good to run through the numbers and get familiar with the system.

Haven't used the 2% rule as of yet, I figured COC ROI was more accurate and seems to be the benchmark used in most books and podcasts ive listened to so far. That said, as a current renter, who has done the comparing of listings in market to choose where to live personally, my estimates of potential rent income may be more accurate due to this cross training. It may be more basic calculation, but at least my inputs should be more accurate. May be useful to be familiar with this if I go on a drive around looking for listings. Simple enough to do quick mental math in a car. Thanks for outlining good expected target range as well!

@Phillippe Laurin Hello! Yes, Ive been listening to the backlog of BP and new BP Rookie podcasts to and from work.That said, often I am concerned they do not fully apply to the Canadian market. Examples: Often mentioning section 8 or certain tax deferral laws or low DP mortgage packages that may not have equivalent counterparts in Montreal. Obviously broad strokes of BRRRR remain relevant and thought process is valuable, but the fact those details don't line up always irks me... Anyways, which podcasts do you recommend?

And I agree, at a certain point I must take the plunge. Need the financial backing, knowledge, and team first, however; it’s a multi variable equation where each part is equally valuable, and even interchangeable, and when the sum of them is great enough to feel confident, it is time to invest. Currently, I have strong finances, rookie knowledge, and a small network. Still not enough to feel confident. I believe in my ability to build knowledge in a short period of time, certainly enough to make a smaller investment that would not hurt my overall portfolio (outside of RE) and present an opportunity to learn on the go. That said, I still think a solid 3 months of time will be needed to learn enough to comfortably make even a small investment like this. Of course, the team variable is equally valuable, but unpredictable. I could spend years looking for a team/mentor/partner/contractor,etc and find no one who adds value, or you can stroll into a bar and find someone by chance.. Of course effort to network is within my control, but whether good connections result from the effort is not a guarantee. Anyways, regardless of the path, sooner than later I’m going to go for it. I don’t plan on putting hours of valuable time into studying without ever making an investment.

@Alberto Foglietta, ahh understood! Now I feel like a huge wiseass haha. It is true, even after all this work, you only make what you keep (and the QC government is not soft on taxes). Will have a look for additional info. Thanks

Yeah I’m on the same track. Decided to get back in shape so I have an hour bike to and from work. Perfect amount to listen to one RE Podcast each way. Been trying to read a book per week. Only thing I find frustrating is the majority of popular books are focused on American markets as opposed to Canadian. A little concerned some details may not be relevant to Canadian market, although the broad concepts obviously still do. Will definetly add your reccommendations to my list.

Yeah, I’ve watched a few property analysis videos, but yet to analyze one myself, mainly because I don’t feel comfortable estimating many of the inputs at this point. That said, probably a good idea to get the gears moving again, even if the numbers im plugging in are not accurate. Still in the process of researching systems for how other people estimate costs so I can be more accurate. Got to keep on the learning track for the short term, I still have many question marks that can be answered with simple research. Once the questions get tougher to find answers to, it may be time to start learning through action.

My real estate agent aquaintance has been sending me listing to review, so this is a good place to start. I like the analyze 1-5 a day goal, just to grease the gears. She also says that there is not a lot of Plex property on the market ATM, so it happens to be a good time to study without serious FOMO. Both buying and selling has come too a crawl because visiting property is not allowed, and no one wants their listing to show 2 months on the market and unsold due to coronavirus.

And nope! You learned more about finance in your last two weeks than your entire Bcomm! Accounting deals with applying formal rules to current or past records, Finance is all abount analyzing and managing risk and return of future investments! REI is certainly the realm of finance! You'd know if you were doing accounting, because you would be standing on the edge of a building and excited to jump off!! haha

@Alberto Foglietta

Yup JMSB!

So how has your experience so far been trying to learn about REI and prepare yourself for your first investment? Any resources you'd recommend?

Nice to meet you too!

Hello, My name is Stirling. I have no experience in REI, however I have ammassed considerable savings, enough to make an investment in a plex rental property on the island of Montreal, Quebec.

I do not yet think I am at the stage of "Analysis Paralysis", as I have only begun reading and studying the topic of Real Estate Investment for less than a month. That said, before I read 100 more books and get lost in all the different potential strategies I could use, I figured it would be wise to preemptively introduce myself to the bigger pockets community, and see if the people I meet and connections I make incline me to embrace a certain strategy or influence my perspective on this potential investment.

Based on my limited research, I believe BRRRR investing/Buy and Holding of rental properties is the strategy that suits my vision. I do not want to create a 10 year plan. I want to focus on property #1 and based on my experience developing this property I will decide the pace at which I will make furthur investments. I know I can do this, but doing this will require navigating through many steps, all of which will be firsts for me.

To give you a sense of who I am and how my skills fit into a BRRRR strategy:

- I have a Bcomm Finance, and I took a couple courses on Real Estate financing in my major, and despite this being a solid 5 years ago, these were some of my best grades. Of course, school is different than reality, but this experience leads me to believe I am capable of navigating the details of financing and refinancing a rental property investment. 

- I work for a company that sells home decorative goods to mass market retailers. I understand the difference between price and value. When I consider BRRRR, although I am not particularly skilled in handicrafts, I naturally understand the potential of forced appreciation through Renovation. This is perhaps the most exciting part of this investment for me. Challenging my creativity to make small priced investments that significantly increase value. I understand that I am not trying to accomplish an artistic dream in a remodel, I will not fall in love with any property and become closed to other suggestions.My only goal to maximize the value recieved for each dollar invested. This challenge is my favorite part of my day job, and I am hoping this ability is equally valuable in the Real Estate field.

- I would like to be very "Hands On" in my first investment. My goal is to learn and create a network of people who can help me develop future properties. That said, my lack of direct experience is a major concern for me. Everything from negotiating a good purchase price, analyzing the cost of renovations, doing the cost analysis (although I do hold and BComm Finance and did a course on Real Estate Finance, it has been a few years since school..), finding and vetting tennants, refinancing, etc, will all be first time experiences for me. Ideally, it would be amazing to have someone with me during each stage of the process, from which I could learn from. It is not in my nature to completely hand over responsibility for any job to a contractor. For example, in my mind, any contractor who quoted on a renovation for me would also have to employ me as part of the contract. When I am done my day job, I want to be on the floor laying tiles, cutting wood, etc etc. Because of my lack of experience, I will need to be given direction on the work to be done, but I will happily do the hardest and dirtiest work in exchange for being part of the process. Same could be said about any of the other steps in this process.

Anyways, if there is anyone in the Montreal area who has similar ambitions, I am pleased to make the introduction! If there is anyone on the Bigger Pockets Community who just has words of encouragement, equally happy to make the acquaintance! Really no expectations, just exploring all the resources available to me!

Nice to meet you all,

Stirling