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All Forum Posts by: Alex Kouramanis

Alex Kouramanis has started 6 posts and replied 13 times.

Post: Lawyer Fees - How Much is Too Much?

Alex KouramanisPosted
  • Full Time Investor
  • Toronto, Ontario
  • Posts 14
  • Votes 1

Greetings fellow BP members!

Hoping to get some opinions and advice here:

I just sold half an acre of land for $9,000.00 using a lawyer who was referred to my by an investor in my area. I assumed this would be a fairly simple transaction, without much work to be done on the part of the legal team. 

I was shocked however, to be handed a $1,340.00 fee after taxes for his services. This is about $800.00 above what I had expected, although I did not ask upfront about his fee structure. As a result, my gut reaction is to call and ask about how we arrived at this number. I mean, I dread the thought of I would be charged for a deal that is actually complicated and requires time to complete...

Should I have asked for fees upfront? Should I call and inquire, possibly hurting the relationship? Should I just eat this one and learn from it?

Thanks!

Post: Rich Dad Coaching?

Alex KouramanisPosted
  • Full Time Investor
  • Toronto, Ontario
  • Posts 14
  • Votes 1

Hey Cody, I actually took the Rich Dad program in Canada. I split the $30k with a friend. Here's what I can tell you:

First, yes, it is a big chunk of change, but because real estate is so expensive where I live, I thought it better to spend $15k now than $15k + later for trial and error mistakes. Second, it is difficult to put a price tag on it; I made a few close friendships and good contacts by being in the community and they have helped me to invest. Third, it got me committed to making real estate my career path, but with the advantage of starting with a different, Rich Dad mindset. Fourth, I learned a ton about different strategies.

I bought my first property almost a year after and when I sell next spring, I expect to make my $15k back in addition to a healthy return. 

Would I advocate it? In short, there is no substitute for experience. I'm pretty confident that had I not taken that course, I wouldn't have gotten into my first investment so soon. However the coaching and mentoring only goes so far. I'm sure that all the strategies I learned can be gained from books or listening to Bigger Pockets. Surrounding yourself with people who are actually doing what you want to do, finding mentors that want to help you for free and, yes, plain old trial and error are perhaps the most practical way to go.

Probably the best thing for someone with $15k, is to buy a ton of books and cds related to business, success & real estate, some quality business cards, one nice suit and gasoline to drive to events. Save the rest for a down or portion of a down. Oh and save a bit for a nice vacation!

Hope that helps!

Post: Small Town Investing - Too Good to be True??

Alex KouramanisPosted
  • Full Time Investor
  • Toronto, Ontario
  • Posts 14
  • Votes 1

If anyone operates with a small town investment niche, I could use some advice please!

I live in Toronto, Ontario, Canada, (average purchase price over $700k!) I am looking to invest out of town to get more cashflow. I saw a 12 unit on mls for $386k in a town 3.5 hours away with about 8,000 people. The gross income should be about $85k. If I assume 50% expenses, it's a pretty nice ROI. Property seems to be in pretty good shape for an older building and there's property management nearby to take care of it.

I haven't done any due diligence yet because, naturally, I am inclined to think there's got to be a catch! What is the problem with this town?

If bigger towns are within 1 - 4 hours of driving, will this town eventually dry up? What are the inherent risks in investing in smaller towns? What do small town investors look for in particular when investing in small towns? What kinds of questions should I ask property managers about the town and tenants? Should I try for a take back mortgage and just go for a zero down deal??

Any thoughts are welcomed and would be greatly appreciated!