All Forum Posts by: Account Closed

On the REIN (Canadian) Property Goldmine Score Card, one question that should be answered yes is

• Is the housing start number lower than the historic average?

Why is this important? Does it mean if there are less starts, there will be less housing available and therefore more demand for rentals? Does it predict prices to go up once the new properties are absorbed? I can't find a description of what this means for investors, not even in Don Campbell's ACRE book. This is the 2014 scorecard, updated after the book was printed.

Hi @Doug Pretorius 

I'm a new investor so your challenge looks huge to me! How's it going so far?

I'm in Mississauga but looking to buy small multi-families possibly in Kitchener/Cambridge. Do you know of some networking groups in your area where I can learn more about the area and network with other investors? I plan to attend Mat Piche's KWC meetup group but don't know about any others.

Following this thread!

@Mario V. . Hi and welcome to BP!

I just wanted to chime in on leveraging money and using mortgages. I read an interesting example the other day and thought you might be interested.

Assume you can buy one property cash with this 200k. Suppose prices go up after a few years and the property doubles in value. Now you have 400k.

But what if, instead of buying one property with cash, you buy four properties, by using 50k as a down payment on each property and obtain mortgages from the bank for the remainder. Each property is worth 200k.

Now if real estate values double again you have gained 200k of equity per property. You've only used 50k of your own money per property. By using leverage you have quadrupled your equity increase. 

In the first example you invested 200k and made 200k profit. In the second example you also invested 200k but made a profit of 600k. Which would you rather have?

You could also consider not using the whole amount right away. Try one property using leverage and see how it feels to have "good debt." You could always pay it off

Hi @Inna Knyazeva Welcome to BP!

I am also in Mississauga. I am considering investing buy/hold/rent in Kitchener, Cambridge or Hamilton. They are listed as the top 3 Ontario cities by REIN this year. Hamilton's prices are lower but KC may cash flower better.

It is far to go to Gary's group but I am considering it for tonight. Are you planning to attend?

There is another local group I attend in Toronto. It costs $20 but I always learn something and have the opportunity to network. They just opened a branch in Mississauga: http://www.meetup.com/Real-Estate-Investing-Club-WEST/

Tabatha.

@Andrew M. 

Funny how the bank under-offered you! 

I don't know about short sales so can't offer any guidance. Hope the investment works out.

Hi @Brad Anderson

Welcome! I'm a new investor based in Mississauga. I moved here from Ireland last year so we're neighbours twice!

The forum is really helpful - make sure you set up your keywords for best results.

Hi @CHARLES BURKHOLDER

Welcome from a fellow Canadian! I'm a beginner too, just learning the market and real estate investment ropes.

DIT means Debt to Income ratio. Banks want to make sure you have enough income to service all your debts plus regular living expenses.

Hi @Ajay Kahlon

I know you've been investing in St. Catharines and wonder how it's been going there? I've started looking at the market fundamentals and they aren't great, but I've also seen some properties that cash flow decently. Can you update us with your experience there?

@Roy N. Thanks! I'm always interested to add more Canadian-focused books to my reading list.

I'm getting ready to purchase a 2-4plex and was wondering if the seller might finance part of it. Do you think it's unreasonable to ask on a property this size? Also do you know if there's a way to check how much equity the current owner has, or is that private on this type of property?

Hi @Carrie W.

Welcome! I'm also a mum and new to RE investing. I'm getting ready to purchase my first investment property... my goal is to get the first one before Christmas. Like you, I don't have any formal qualifications in the field (accountant, agent, etc) because my education was in another field (IT).

I've taken a few REI courses and read lots of books. Even though I feel like I could learn for years more before beginning, everyone says to get started and keep learning as you go. It's scary to think about making mistakes, but everyone does. Preparation and planning an exit strategy is supposed to help mitigate the risks so it's the the end of the world if things go pear-shaped. It would never really be the end of the world anyway, would it? :)

Good luck and stay in touch.