All Forum Posts by: Wendell Fong

You are a new investor. The short answer is no.  

If your on your 10th property, no problem go ahead.   The issue with negative cash flow properties early on is that they put you in jeopardy of being forced to sell the property.  During a downturn (no tenant) or if you have a major Capital Expenditure (new roof etc) where will you get the money to pay for that?

One of the key things that investors here focus on is also building up funds for your next investment.  You don't have to ask when the funds are in your bank account.  (low appreciation-good cash flow)  When the funds are in equity.. you have to go to the bank and ask for a refinance to get access to those funds. 

You are in a good place, but if you want to accelerate your RE investment holdings, you need to actually make a plan and go at it.   The plan to hit your first goal, may be 2 years off but at least you will have a goal and can plan intermediate steps. 

Sounds like your first two major choices are to Sell and go (but probably not as you are looking for a developer to buy you and neighbors out) or to Stay and pull some equity out to continue other RE investments.  The next time a developer comes along, you should know all about FSR's/land value and the cost of PSF for development and the sale price of new development PSF/ Community Amenity Contribution (CAC)  Then you will have a good idea of how much your land is worth to a developer.  You will also have a head start to talk to nervous neighbors about getting scammed by a developer. 

so say you decide on plan #2 to increase the HELOC. VanCity says there is nothing they can do.

1)Find out What you need to do. It sounds like you should have gotten the Max HELOC at the time when you did have a steady T4 income. You may have to go back to that just to get 2 years of T4's. (I got a huge HELOC just prior to "retiring." The phrase I will always remember is my banker, its good to get it now. Get it when you don't need it, because when you really need it, you can't get it!

2) Shop around to other banks, see what they can do and if the requirements are any different. 

3) If you are interested in RE investing, look for a job in the industry . BP is big on mentors.  I like to get paid to learn!

4) continue to ask questions here.  One comment from a poster here may open up a new possibility for financing your next investment. 

There is a list compiled of the top books in each category on BP.   The question is asked at the end of every BP podcast.  The number of times a book was mentioned was tallied up.   I am sure you can search for the results. 

Hi Connor.

I also live in Vancouver and am looking for my next multi family investment in Alberta.  If you are looking at duplex/triplexes you can try James Knull at Mogul Realty Group.  I look forward to hearing/reading about your progress. 

Thanks Shrey for your list and review of Canadian Real Estate resources.  BP is still a bit short in this area as it is really geared to the US market.

Now that you added the company actually does not manage your property... What is the 10% commission you mention then?  The companies I deal with usually charge 50-100% of the first month rent to place a residential tenant.  For my commercial properties it is two months.  

Just adding a quick post here as well.  I am looking for an investor friendly agent for Edmonton.  

I am going to take the other side on this argument.  The reason is that I have had poor experiences with companies that did't charge a lease renewal fee, but they charged 100% of the first month of a new lease.    This in effect was an incentive for the PM company to rotate tenants in and out of my properties.   When I negotiate with a new PM company, I try to work down the new lease fee and increase their renewal fee. 

Just my 2c.

That is funny.  The first time I read Pass.. I thought it meant pass on them as tenants, not that they get a Passing score. 

To be clear, 800+ credit score is huge and they get a passing grade.

I think you have your  cash invested and purchase price flipped.