What strategies are valid under current market conditions?

2 Replies

Greetings,

Found BP a little while ago and recently joined.  I've digested a large amount of information as well as read a few of the books by BP or linked by BP.  Seems there are great opportunities our there!  For now though -- Canadian RE Market seems over extended and prices high.  Some might even say a large housing correct is coming our way.

I'm wondering if anyone can suggest pointers to strategies or any information about what might work under current market conditions in Canada?  Or might it be better to wait it out and accumulate as much capital as possible?  Who knows when the correction might happen though...

Appreciate any ideas and advise.

Thanks.

@Ivan Ganza  

Every piece of property is different and because of that NO STRATEGY is off the table. You have to have multiple ideas in your head as that is the best way to snag properties. Some props need to be held as they can be cash flow cows but other props should simply be flips. Lease options, subject2 and land contracts work also. Have a property that I am doing syndication with to spread risk. Just be open minded and deal can fall into your lap if you work the business.

@Ivan Ganza  

Welcome to BP!

While most markets in Canada are full valued - or worse, the frothy exuberance that is Toronto - there are still deals to be had, but they are fewer and further between. Even when you find them, they are not going to produce the 18-20+% CoC returns you read about south of the 48th.

We continue to look at opportunities ... last year we examined around 100 properties (mostly multi-unit) and bought two.  This year we've look at 75(ish) to date and have not bought anything.

Meanwhile we continue to pursue our plans for forced appreciation of the properties we have and are building our war chest in the anticipation Canada will get the real estate correction it is due.

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