"7 years to 7 figures" in Canada?

Question

So I have been looking for a Fourplex property but I cannot find a fourplex for less than $400,000. I have only been looking for like a week and I am new to real estate as well so I may be looking in the wrong websites or I'm just being to impatient but I find it hard to believe that I will be able to ever find a fourplex for $300,000 less than the average if I can't find even 1 listing less than $400,000 in a week. So I was wondering if the "7 years to 7 figures" property investment model is at all viable in canada or does it just work in the United States?

Account Closed · Answer

This is EXCELLENT advice.  Patience is something that I have had to learn when it came to this business.  You list a place, I like it, we agree on price, we do paperwork, boom, done.  That should be how it goes.  But NO!  Banks, title companies, realtors, cold feet, taxes, ALL want their grubby little hands in everything and they want to do it on their timeframe, so you just have to suck it up and wait.

Roy N. · Answer

Amadeus:

Quadraplexes at 25 to 40K per unit will be rare - even here on the East Coast - and you will mostly find them in small communities (whose economic prospects are stagnant or declining), undesirable parts of town, or they will be in a desperate state.   Case in point, we recently looked at a 4/5-unit property in Saint John, NB that was <50K, but it was going to require 80 - 120K in rehabilitation.

In our areas, a quadraplex will be priced between 50-60K per unit on the low end and 100K per unit on the high end - both ends of that range are special cases that may or may/not be worth pursuing.

I have not read the book in question and the target of "7 years to 7 figures" is rather arbitrary as it all depends on your staring point.  As my uncle use to say when he was still on the family farm: "The easiest way to make a million dollars in farming is to start with two {million}."

There are also several paths to that arbitrary target.  You could systematically purchase several residential properties (1 - 4 units) with reasonable cash-flow and "hope" appreciation.  Alternatively, you could save diligently for several years, find a partner, and purchase a 50 to100-unit apartment complex.

You need to decide on why you are entering the world of real estate investing and identify your area(s) of investment first before worrying about your velocity.

Amadeus Hladun · Answer

oh ya sorry 7 figures in Equity and cash flow was roughly $180,000 each year I think

Amadeus Hladun · Answer

I really appreciate the input! :)I already kind of knew I was just being to impatient.

But have you read the "7 years to 7 figures" ebook? and if you have is it still a viable model to follow even though I am not in the US (just like yourself) ?

Because I know that houses are more expensive in general in canada even after accounting for the currency exchange

And in your experience (how ever much that is) have you ever seen a fourplex for $100,000 to $150,000 in canada anywhere?

Thanks so much for the help by the way, I REALLY appreciate it!

Roy N. · Answer

@Amadeus Hladun

Welcome to BP ... depending on what you mean by 7-figures (equity, revenue, cash-flow, etc) it is possible in Canada ... though probably easier on this side of the country.

One of the best skills you can develop as a real estate investor is patience.   A week is not a long time.  It has been almost 2-years since we last purchased a property ... simply because we cannot find anything priced such that the numbers make business sense.

You should take a little longer to get to know the local market and establish an understanding of the price points at which residential properties are currently selling. If you are looking on MLS, be advised that this is the season of hopeful pricing (spring summer).

Finally, if you see a property of interest, gather the information and carry out your analysis.  If you analysis says the property is only worth X, then decide if you wish to offer X, else move on to the next potential deal.