I am new to RE investing and am trying to find help online with Multi-Family investing and I find several courses ranging from $3000 to $15000. I am not sure if I need to take these courses or can learn on my own.
Here is my situation: I have close to $350k in Home Equity which I can convert to mortgage segment. I heard that would be enough for me to start investing in Multi-Family with my own money (down-payment at least) for the 1st property.
I am not sure where to start researching more and how to seek guidance in this space. I live in GTA region and am looking to invest anywhere in Canada and appreciate if anyone can provide insights on how to research and start with my first multi-family.
A note: I considered starting with SF first but am having hard time finding properties with a non-negative cashflow. Appreciate your help.
Investor / Syndicator · Austin, TX · Member since 2015 · 366 posts · 220 votes
4y
@Sriram Kumar Bikkina This is the best part about BP - advice from experienced investors who've "been there, done that!" I'd echo the former comments and add that there is a lot of really good education in a few books and articles as well. I've reviewed several of these expensive programs and I've discovered that ALL, of the information can be found in books. Also, many syndicators are happy to coach you along the way given your questions are brief and focused. They can also provide Investment Summaries of deals they've closed; the thesis for why they purchased the particular deal, etc. This is part of growing an investor base - educating your people. So, go for it. Lot's of free and education and coaching out there!
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
4y
@Sriram Kumar Bikkina Welcome to BP! What type of MF are you looking at? Lending criteria are different for residential (<6 units) and commercial (6+ units). I don't see a need to pay for a course... you can read a few good books, ask questions on these forums, and get better info than you'll get from a paid course.
Toronto, ON · Member since 2018 · 102 posts · 61 votes
4y
Welcome Sriram. I agree with what Chris said. You don’t “need” a course as most information is readily available online. I still take courses to save time from searching around and prefer a structure. I’ve taken around 3-4 courses and they all helped me in different ways. Bottom line - it saved me a lot of time googling. It’s hard to find cashflowing properties but not impossible. I just locked up a cashflowing triplex in Hamilton last week , so it’s doable. Persistence and education. if you have specific questions , feel free to ask.
Specialist · Mortgage Broker Canada · Member since 2015 · 316 posts · 118 votes
4y
@Sriram Kumar Bikkina Welcome to BP, Sriram. I echo what @Account Closed recommended, read books and read this forum. Do a search for keywords on this site when you have a question - don't be surprised to find that others have also asked similar questions.
Note: A multi-family residential property of 4 units and less qualify for a residential mortgage, 5 units and more qualify for a commercial mortgage. All the best.
Welcome Sriram. I agree with what Chris said. You don’t “need” a course as most information is readily available online. I still take courses to save time from searching around and prefer a structure. I’ve taken around 3-4 courses and they all helped me in different ways. Bottom line - it saved me a lot of time googling. It’s hard to find cashflowing properties but not impossible. I just locked up a cashflowing triplex in Hamilton last week , so it’s doable. Persistence and education. if you have specific questions , feel free to ask.
Thanks for responding to my question. Do you mind sharing the courses, I am not ready to pay for any at this point but just want to make a note of them and see if I can get some useful information there. FYI I looked into Enda Keep's 90 days to 5k course and the cost is outrageous, even though it is useful, I am not ready to pay 20k for the course.
@Sriram Kumar Bikkina Welcome to BP, Sriram. I echo what @Account Closed recommended, read books and read this forum. Do a search for keywords on this site when you have a question - don't be surprised to find that others have also asked similar questions.
Note: A multi-family residential property of 4 units and less qualify for a residential mortgage, 5 units and more qualify for a commercial mortgage. All the best.
Julie, thanks for the response. Appreciate your inputs.
Rental Property Investor · Kitchener, Ontario · Member since 2016 · 8 posts · 2 votes
4y
It depends on what kind of MF you are looking at like @Account Closed said above. Do you have any certain criteria for choosing the properties?
I'm part of a coaching group that I recently joined where every investor focusses on multi-family real estate unlike majority of the coaching groups. DM me and I can share more about the group with pros/cons.
It depends on what kind of MF you are looking at like @Account Closed said above. Do you have any certain criteria for choosing the properties?
I'm part of a coaching group that I recently joined where every investor focusses on multi-family real estate unlike majority of the coaching groups. DM me and I can share more about the group with pros/cons.
Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
4y
Hi Sriram, Personally I would take a course, especially if I was new to real estate investing in general, BUT what is best for you really depends on your learning style and risk tolerance. If you are ok with just going out there and figuring things out as you go, you are good at asking questions, and networking, then you may be just fine. You may make mistakes, and that will be your course.
Keep in mind many of the courses are also great way to surround yourself with others doing the same thing, build a network, and a good team of professionals to work with.
It also depends on whether you are thinking duplex/triplex/fourplex, or 5+ units with commercial lending. Typically when I hear multifamily, that means 5+ units.
I prefer to learn the rules before before jumping in, but that's me. I like the knowing the details. If you are thinking of multifamily, as in 5+ units, it is a smaller playing field, and you don't want to burn bridges with realtors by wasting their time because you didn't know something. Mistakes cost more in mulitfamily.
Yes, there are several Canadian MF courses/coaching programs. I know about Edna Keep, Pierre-Paul Turgeon, Michael Ponte, and Peak MF. I've taken 2 of 4 and know others who have taken other 2. Each has their own style and just depends again on what type of person you are, and what you need out of it. If you want, we can talk and I can help you narrow it down, if you decide to go the course route.
Investor / Syndicator · Austin, TX · Member since 2015 · 366 posts · 220 votes
4y
@Sriram Kumar Bikkina This is the best part about BP - advice from experienced investors who've "been there, done that!" I'd echo the former comments and add that there is a lot of really good education in a few books and articles as well. I've reviewed several of these expensive programs and I've discovered that ALL, of the information can be found in books. Also, many syndicators are happy to coach you along the way given your questions are brief and focused. They can also provide Investment Summaries of deals they've closed; the thesis for why they purchased the particular deal, etc. This is part of growing an investor base - educating your people. So, go for it. Lot's of free and education and coaching out there!
@Sriram Kumar Bikkina This is the best part about BP - advice from experienced investors who've "been there, done that!" I'd echo the former comments and add that there is a lot of really good education in a few books and articles as well. I've reviewed several of these expensive programs and I've discovered that ALL, of the information can be found in books. Also, many syndicators are happy to coach you along the way given your questions are brief and focused. They can also provide Investment Summaries of deals they've closed; the thesis for why they purchased the particular deal, etc. This is part of growing an investor base - educating your people. So, go for it. Lot's of free and education and coaching out there!
Mike, thanks a lot for the response and your inputs. I purchased Dan Campbell's Creating Wealth with the ACRE system, I heard this is a good start for people getting their toes into Canadian Real Estate.
Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
4y
Mike, thanks a lot for the response and your inputs. I purchased Dan Campbell's Creating Wealth with the ACRE system, I heard this is a good start for people getting their toes into Canadian Real Estate.
From what you have described, you are far too early on in your journey to take advantage of a mentor or course. You need a solid base to work from before truly utilizing these resources. I've copy/ pasted below my response to a very similar inquiry from earlier in the month. I highly recommend you vet any mentor or course carefully. Some, such as Edna, accept investor money from their students. This creates a very clear conflict of interest. You want to be aware of this as well as complete due diligence in a focussed way as a result. Dig deep.
pasted:
My recommendation would be start with a few books.
Don campbell real estate investing in Canada 2.0
Then
Don Campbell 97 tips for Canadian real estate investors
Then
81 financial tax tips for Canadian real estate investors by Campbell and Dube
Then
Real estate joint ventures - Russell westcott
Then
Legal tax accounting strategies - Cohen Dube
Then
Real estate retirement plan - Callum Ross
I would recommend don’t buy anything until you’ve read the first 3 at least and don’t pay for any training until you’ve read them all (you’ll be able to spot the grifters better). Just my thoughts.
Stay away from anything condo in Saskatchewan or Alberta for the next decade.