All Forum Posts by: Tom Scott

Jamie

I absolutely love your property…. for the potential.

Buy and hold is a lifelong core value that has been instilled deep inside myself and many other investors since the day we started.

We all believe this, because it's what we are told and what we’ve read but we’ve failed to analyze one important ingredient


Hanging onto a property longer than needed results in

• Lost time with loved ones
• Unnecessary headaches
• money down the drain

What's wrong with this belief is it's not representative of YOU. Nobody can truly comment on your circumstances and give the real advice you need .

We all have goals, dreams and desires.

The question is.. Does selling the property get you closer to your goals or your dreams?

For example, I want to quit my job. I’ve strongly considered selling one of my properties. One of my original goals when I started was to “live off the passive income”. However, I'm looking at selling only because I have another opportunity, one where I can scale the equity in the property, almost 10x. In this case, it makes sense. You see, the headaches I went through for the past 10 years are paying off now. Most investors can't play at the next level because they are short sighted and sell too early.

There are always other options instead of selling, you could refinance, add a partner, or stay and hold.

Your next step is to distill what it is YOU really want.

Once you boil that out ….it should help you move the scale to one side or the other, if you are looking for passive income and you can't float the deal on your own you’ll likely need a partner, It would be a good idea to run the numbers and see how the cash flows looks once you are up and running. 

This is a big undertaking, but dont let anyone tell you it can't be done!

You’ll need concrete numbers on how much per sq ft to build a 3 storey complex. You can get a ton of information for free by networking. . 

I’ve refinanced most of my properties, some for the 3rd time, those books I read when I first started were right …

In two ways

One…. it actually works

Two….. it takes a long time!

In every market there are new opportunities. It's up to you to decide what ones to go after and which ones to hold onto.

The money is tempting, but so is the potential.

Good luck!

What is a “so called expert” ?

I work with a bunch of them, and I'm sure you know a few.

I work with some of the smartest dudes around, The problem is ...they’re too smart. Often we’re heavily influenced by those who we talk to, work with and watch on Youtube.

Most days my stomach sat queasy listening to these , “So called experts experts” .Over the last 20 years I bought property, while most sat in the back row and chirped and lobbed peanut shells.

After a couple of years listening, I realized…..

NOBODY KNOWS THE ANSWER YOU ARE SEARCHING FOR

If you listen to the “so-called experts” you’ll find yourself in the same position I did…. Confused

If you listen to the naysayers, (which I agree have a valid concern) you’ll find yourself spinning tires, year after year. Waiting, hoping the market will crash.

Finding a property that has cash flows well, you can sustain any market. This will allow you to keep growing regardless of whether the market crashes or not

Rich dad is in the education business, Making predictions about the future is what his viewers want regardless of whether or not he is right or not. This strategy is called “expert positioning”

Robert K is also in the entertainment business. Youtube videos are a competition for attention.

Nothing new is being said other than in a different way. I find these videos nauseating after a while. Instead I put my head down, focus on opportunities others can't see and read more books.

I’ve heard in the last 6 months…more people say “if i knew what I know now”.... I would have bought…... The only thing to say is...hindsight is a beautiful thing

The truth is … Rich dad isn’t wrong, “The market will eventually correct”

The way to get ahead in Real Estate is a steady approach and making sure the numbers work for you

NOT the so-called experts.

Live-in and flip.

In Ontario, Canada you can sell your principal residence and keep the profit while avoiding capital gains tax.

This is an excellent avenue for newbies starting out in RE.

The key is to find a deal that isn't overwhelming, but has a nice upside. Clean r up' and peddle it a year later. You can use your job to fund the mortgage payments and hustle on the side. Rinse and repeat... 

This is an excellent strategy to build wealth.

As long as you fly under the radar… (one a year)  you won't raise eyebrows from the CRA.

Good luck

“You asked”Whether to take risk or not.

No risk = no reward.

Living in one unit and renting out the other is the best piece of advice I could give someone starting out, although typically the rent from the other side would cover a large chunk of the mortgage if not all of it.

There is only one person who can decide if it works or not.

A healthy E fund

relying on a tenant

occasionally tapping into savings

all parts of being a landlord….

good luck! 

Your pet policy is only as good as your tenant.

The deposit, 100, 250, 500 or even $1000

None of it will cover the damage from a pet if your tenant is a dud. Only god knows what they will do once they are in the property.

The real goal is to see if they are telling the truth

When interviewing instead of asking “do you have pets”?

Try asking how many do you have?

Good luck!

As a landlord you MUST understand things break.

Doors, windows, the fridge, washer dryer.. You name it.

When i was 29 I bought my 4th student rental. After the first year things were going well.

Then all of the sudden, the city threatened me with a fine of $25,000 per day.

I couldn't afford $25 dollars a day let alone $25,000

I broke a bylaw.

Only three people are allowed renting rooms otherwise it's considered a boarding house. A couple key items that classifies it as a boarding house are…

Locks on interior doors

Structure of lease.

Check the bylaws carefully,  as its an excellent investment. 

Good luck.

Benjamin Franklin has a famous quote

Tell me I’ll forget

Teach me I’ll remember

Involve me and I’ll learn.

learn the process.

Once you get good at it, do it again. Then... rinse and repeat. This is how to build wealth.

As amazing as Youtube is, nothing takes the place of physically doing it or seeing with your own eyes

Being onsite, you’ll gain valuable experience and learn the intimate details .

If you decide to manage the whole deal from France, Unfortunately

there is one thing you will learn…

Good luck!

“too much free content” is the problem.

Not because it's available.

It's overwhelming.

I remember my first offer.

When I was 24,  I had an opportunity to buy a small 4 season cottage (It was my first house which went on to become my first rental).

At the time I didn’t have a full time job.

My friends had no interest in buying property at that time

They said things like ….

Why are you buying that.. Its a hassle?

How will you ever afford it.. You have no money?

Personally, I wouldn’t buy that?

Despite the negative comments. We bought the property.

In college at the time,

I skated every night to make cash refereeing men's hockey.

My wife, in college at the time, worked part time at AVIS rent-a-car.

Years later, we went on and used it to leverage our portfolio.

It doesn't matter what anyone on here thinks.. it's what works for you…

Some of the responses remind me of my friend's advice in my 20’s 

It’s a lot of the same advice, not that it's good ….

it’s free.

Good luck.

There is some sort of magic that happens when you scratch a number on an offer with your signature beside it.

then …

wave it in front of a seller's nose.

You never know what a seller will accept until you make an offer.

As much as Real estate is a business, it is emotional.

I recently sold a property listed at $1,500 000.

From the very start

• I knew the price was high,
• Sellers knew the  price was high
• Buyers knew it was high

Of course, they were fishing.

 The first 2 weeks tumbleweeds blew across the yard, 

In the end only one buyer stepped up with a firm offer. They ended up selling property $175 000 less than what they were originally asking.

For the many reasons and number of people that want to get into real estate, there are as many or more that want out..