All Forum Posts by: Thomas Lorini

Thank you Bo, all the best on your search. I’m actually going to see a deal tomorrow in the desert, it’s only about an hr and a half from Orange County.....looks like there are opportunity for decent cashflow out there. But need to do my due diligence first...talking to local property managers as a first line of screening.  Happy to help in any way.  

Hi Olawale glad you found value in my story.  I’m originslly from Canada and built a solid local team that helps me execute on good opportunities. My partner is up there as well but not involved in finding deals, more involved with the funds.  

 Thanks Christian!

Hi Jay, I appreciate your last comments, were on the same page. 

Hi Nicholas, In Canada we get lower rates. 2.5% @ 30 Year’s equates to around $198/Mth. 

Hi Jay, as I mentioned earlier, there are so many articles and posts daily on BP. Do a quick search and see how many posts have less than 5 comments and it’s not because of the content. So if one feels they have something interesting to share the title does play into it. 

Yes we can argue back and forth if I really put in $0 funds into this deal. Obviously I shared all the details and didn’t try to hide the fact I refinanced my other property.  

Before being so negative I hope you took the time to read some of the comments I’ve been sharing with others.  

The Canadian market is vastly different than the US market. Foreclosures are next to nil....when things collapses over hear i the down turn the Canadian market only had a short blip down and then continued its upward trends.  

If one knows their market well and is patient they should be able to pick out solid deals.  This hear is a home run in this market.  

Next door sold for $210k less than 5 mths after we bought it. 

I’m not trying to create fluff or make things light for newbies. Finding and negotiating good deals is tough.  

What I feel I’ve shown is one doesn’t need deep pockets to financial freedom.  

If the market corrects downward who cares!! More clients for me...more renters to the market.  

I’m not a speculator.  

Cheers.  

Thanks Aditya, be nice to grab a coffee next I’m in town. 

Cheers. 

Thanks Aditya! Any particular property manager you use or tenant finding service that’s effective? I’m really looking closer at multis there...reminds me of Hamilton 7-8 years ago, I think there are some positive changes happening in Windsor.   

Hi Justin no questions a dumb question my friend. Loan costs/debt services are never factored into Cap rate.  There’s tons of deeper conversations on this topic here on BP but basic premise is that Capitalization rate is not a metric of investment return on a specific investment. Cap rate is a market-driven metric, which measure the attitude and behavior of all market participants.

Here is a BP link I think will help you better understand:

https://www.biggerpockets.com/renewsblog/2016/05/31/cap-rate-formula-include-debt-service/

Hi John good question. The way I see it we just finished a complete renovation job addressing all areas of the house prior to putting in the tenant. We do this with all properties and my experience is in the first few years very little will come up. That’s why I think 1% works. Also remember we have the reserves for major  issues.  

Cheers.