Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
Does anyone have any experience with turnkey companies in Canada? I've seen quite a bit out there on companies and people doing this in the US, but am having some difficulties finding quality Canadian content. Can anyone recommend any websites or companies that are providing this type of service in Canada?
Investor · St. Thomas, Ontario · Member since 2015 · 692 posts · 312 votes
9y
Could everyone please stop referring to "Canada real estate". We have thousands of cities and towns spanning a land mass significantly greater than US. There are MANY different markets here. I am two hours from the centre of Toronto and houses cost a tiny fraction what they would there.
Maybe I should start a proper turnkey org just to prove a point.
Investor · Toronto, Ontario · Member since 2014 · 320 posts · 125 votes
10y
Are you looking to purchase turnkey rental properties? I'm not an expert in all of Canada, but if there are large companies doing this in the Toronto area, they've been under the radar. I'm pretty plugged into the market here and I've never seen large scale turnkey operations. There are many smaller companies though that do this. I work with an agent who does BRRR properties in the GTA.
Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
10y
Thanks for the replies everyone.
@Matt Geerts I'd love to start a turnkey business myself but don't really have enough rehab experience in my toolbox yet to feel comfortable doing it at this moment. Also, the area that I live in is a bit trickier as home prices are fairly high compared to rental rates. That's the main reason that I am looking into turnkey. I own a property here that cashflows but I have seen much better deals in many of the US markets that would require much less money down and would provide even more cash flow. I understand all of the pitfalls and potential problems that you can run into by buying turnkey, but I think it could be a great way to diversify my real estate portfolio and give me more monthly income. As far as my interest in Canada, just trying to keep my taxes simplified. I'm US citizen, Canadian PR and so already have to do taxes for both countries. I still have US investments that may go towards turnkey in the US, but I was just hoping to see some similar opportunities elsewhere in Canada.
@Ming Lim I'm curious about the agent doing BRRR in the GTA. Are they buying, rehabbing, renting and then selling? I did that with one property when I lived in Toronto years ago. It was quite profitable, but I think the GTA might be well outside my price range these days!
@Linda Labbe What are house prices/rental rates like in Thunder Bay these days?
Investor · Toronto, Ontario · Member since 2014 · 320 posts · 125 votes
10y
@John Humphries My agent finds me BRRR to hold. So buy, renovate, rent and then refinance based on the new property value. There is typically a one year wait time between when you've done the renos and when you can pull the equity back out. So you'll need to be comfortable with keeping the money in there for a while. Toronto, unfortunately, is a bit capital intensive that way. Most of these properties are multiplexes in the $1-$1.4M range. Renos are around $100k per unit. Rents anywhere from $1800 to $2400 a unit. These are all ballpark figures of course. PM me if you'd like contact information.
Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
9y
Hi @Patricia K., I never really found any turnkey opportunities in Canada. I'm sure there are people doing this type of thing, but I did not come across any.
It's actually a business model that I would love to start myself up here, but my market on Vancouver Island would not produce returns like lots of the US markets! Having said that, though, if you ever get interested in looking at anything out this way, feel free to follow up with me. I'd be happy to help out in any way.
Vancouver, British Columbia · Member since 2016 · 8 posts · 1 vote
9y
Hi John Humphries I went to a presentation earlier this year by Canadian Western Properties Group http://www.wcpg.ca
I believe they currently have turnkey opportunities in Fort St John and Victoria as well as investment opportunities in Arizona.
They are hosting another presentation on Saturday in Vancouver which I plan to attend.
Hope this helps!
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
I don't believe there really are turnkey companies in Canada (who actually sell turnkeys, versus the promoters of turnkey companies). Reason being- prices are too high in Canada to support positive cash flow. For a turnkey company to exist and sustain, they need a market where there is positive [monthly] cash flow and enough inventory to work on in a revolving fashion. I don't know of any Canadian markets that fit this.
I don't believe there really are turnkey companies in Canada (who actually sell turnkeys, versus the promoters of turnkey companies). Reason being- prices are too high in Canada to support positive cash flow. For a turnkey company to exist and sustain, they need a market where there is positive [monthly] cash flow and enough inventory to work on in a revolving fashion. I don't know of any Canadian markets that fit this.
Ali:
A pretty blanket statement which would be akin to someone saying prices are too high in the entire U.S.A. to support positive cash-flow.
There are lots of markets in Canada in which a healthy cash-flow is possible - naturally Vancouver (BC) and GTA (On) are not two of them at the moment - some where, with a little perseverance, you can even see cash flow at a double digit rate.
Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
9y
Live In North bay in Northern Ontario and we can get double diget returns with a little looking just not the huge 20 % ones I get in the states and the entry cost is way more the the 25000 I pay for americain properties
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
@Roy N. Well that's great on the cash flow front, and exciting to be able to buy. But are they in areas with enough distressed inventory to sustain a turnkey company?
Investor · St. Thomas, Ontario · Member since 2015 · 692 posts · 312 votes
9y
My area would absolutely support it. Plenty of houses that will cash flow double digits off the hop without reno, plenty of Toronto buyers paying for investment properties with single digit returns site unseen. Supply and demand both covered.
@Roy N. Well that's great on the cash flow front, and exciting to be able to buy. But are they in areas with enough distressed inventory to sustain a turnkey company?
Seems to be as there are folks providing such services, but mostly on a small scale.
One also needs to look at the demand side which has a far different shape than in U.S.A. markets - all of Canada is about the same population as California - and the fact that home ownership is historically higher here.
Investor · Amherst, NOVA SCOTIA · Member since 2017 · 20 posts · 7 votes
9y
I know of a lot of turnkey opportunities here on the East Coast of Canada. I can connect you to: Real Estate Agents, Property Managers, Contractors, anything you want.
There are opportunities here, lots of weekly rentals, lots of Single-family properties that go super cheap, lots of commercial/residential or just commercial, anything you want really. To say this area does not work... I know a lot of companies here on the east coast that do big numbers. In fact; an 85 unit deal just closed very close to me. I know of both large and small builds for sale.
Let me know if any of this sounds interesting and I will connect some dots for you.
Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
9y
Hi @Tom Mattinson, thanks for the offer, but I'm looking more at places a bit closer to home at the moment or in markets that I know and understand. I'll make it over to your side of the country one of these days though and might follow up after I've seen it in person.
Does anyone have any experience with turnkey companies in Canada? I've seen quite a bit out there on companies and people doing this in the US, but am having some difficulties finding quality Canadian content. Can anyone recommend any websites or companies that are providing this type of service in Canada?
The turnkey product works best in markets that are cheaper than the majority of other markets. It's geared towards the investors who don't want to or can't do any of the legwork or day to day operations. It's more expensive and risky to purchase property far away from you so the main reason folks go the turnkey route is because the markets are cheaper than where they live. To my understanding Canada real estate is pretty expensive so I imagine there won't be (M)any turnkey providers.
I imagine there are still property managers and real estate brokers that could help you out though.
Investor · St. Thomas, Ontario · Member since 2015 · 692 posts · 312 votes
9y
Could everyone please stop referring to "Canada real estate". We have thousands of cities and towns spanning a land mass significantly greater than US. There are MANY different markets here. I am two hours from the centre of Toronto and houses cost a tiny fraction what they would there.
Maybe I should start a proper turnkey org just to prove a point.
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
9y
If you do it right, any investment is turnkey; why do you need a company to do the legwork for you? Find a market, build a team, buy a property, and accept the cash flow. I own properties on the other side of the country and play no role in their active management.
As @Matt Geerts and @Roy N. have pointed out, Canada is a HUGE country and there are many markets with excellent cash flow and teams of professionals to help you.
Santa Ana, CA · Member since 2016 · 15 posts · 5 votes
9y
Buyer beware of Linda Labbe she wholesaled, which was not even a wholesale it was a referral to Ronald Wilson in Toledo who has totally scammed us! Took our money and sold us a house that was supposed to be rehabbed and it is still unlivable after a year !!!