Commercial RE investing Part 8

Closing was moved up on the warehouse sale to March 23... completed. We do not have a 1033 rollover here in Canada so I/my company will be paying a hefty capital gains Tax.

Prior to the close, there was a lot of fixing up to do.  In the end I spent about 14k to complete all the buyer's requirements.   In addition to that there was about 6k in outstanding rent due from the last tenant.    I finally got quotes for all of the damage the tenant did.  In addition to what I paid to repair the warehouse, the tenants did an additional 35k of damage.  I am ok if I can get my lost $20k back.  I have asked lawyers if they would be interested in taking this case on a contingency basis. 

Things I am doing to keep furthering my goal of 100k per month net income.

1) Work as usual.   I (one of the properties that I manage) was in the Richmond news.  I had a tenant evicted for cause.  The article does not have any names, so you would have to get a copy of the Arbitrators decision to see my name.  That is not easy to get done in B.C. as the rules here heavily favor tenants.   Just as that case closed, I have a new interesting issue.  I have a hoarder in one of the units that I manage.  I had to contact a specialist company that does crime scene clean up, meth lab clean up, bio hazard removal and hoarding clean ups.  I managed to take a few photos of the unit from the entrance and at some places, the garbage is waist deep!  It is a long involved process and the tenant can save themselves by cleaning the unit up.  The specialist clean up company estimated that under 10% of hoarders do any clean up before being removed.   I will let you know how that goes. 

2) I am still looking at lots of "fair" deals that need lots of work. I keep looking for that "Great" deal. The goal is still an apartment building with 10-15 units. The last two contenders already had deals on the go, so I keep looking.   This is my main focus.

3) In addition to looking for that apartment, my younger son has become interested in RE.  He had a classmate that completed a Fix and Flip last summer and now he and another classmate are looking to do the same thing.   I will be helping him out with the down payment and cosign if he needs me to.   He and the other classmate do not have enough income to qualify for a bank type loan.  They will likely get a hard money loan and keep it as short as possible. 

4) Lastly I have made a small 6 figure investment in a Limited Partnership. The general Partner is Western Wealth Capital.  They have a stellar track record and two people I admire as the company's principals. WWC has projects that come up every 2 months or so looking for funding.