All Forum Posts by: Bojan Kovacevic

There is a property here in British Columbia that I looked at recently and it was a former grow-op. The property was on the market for over 150days with no sell, the asking price was $650,000 (3500s.f. home on 3 levels split). By the way the area homes are going for over 800k - 1M+ (similar size). I looked into flipping it and the numbers made complete sense. Until I did a little bit more digging into flipping a former grow op, that is. Turns out, in BC you absolutely have to disclose every single time you try to sell the property that it was a former grow op. That stigmatizes the property and will always be reducing your price. The only way to get that off the title is to re-build the home. This one, even though it already had all the papers and was deemed live-able in, you still wouldn't be able to re-build or do so much as take dirt away from the property without jumping through a minimum of $30,000 worth of government hoops (in testing the soil for contamination) to get a building permit. It may sound very appealing because of the low asking price, however, it turns out that banks aren't very interested in giving you a mortgage on a former grow-op property. Which means that no matter how you flip it, you will always run into major difficulties. Either trying to sell it as a flipped home, because of having to disclose it and buyer's having difficulty getting financing, or re-building it which will cost you up to $100k in extra fees, not to mention the extra time spent in the whole process. 

This is just in BC though, and from what I've read, in Alberta you don't have to disclose a former Grow-Op once it's been approved by the city as habitable. You should always double check that though.

@Gary McGowan

Gary, I'm curious where you found that number $82,899 as an average income in Vancouver? Are you sure that isn't a combined household income? So far all I have found is $68,970 for a household income in Vancouver back in 2011. It would make sense if it rose up to $82,899 by 2013 as a household income, but not as a single person's income which you could times by two per household.

@Ed L.

Ed, thank you for your reply. That is an interesting article. It is sort of widely known in this area that the market is heavily influenced by foreign, mainly Chinese, investors. My girlfriend works at a showroom for an upcoming building development which includes three-30+ storey buildings, 2 low-rise buildings and some townhouses. She tells me that 90% of the buyers are Chinese investors. It makes sense, as the article was pointing out, that foreign investors are "parking" their money here in Vancouver, since it is relatively "cheap" for them to do so and it is a safe haven from their perspective. When you compare real estate prices between Vancouver and China, they are actually getting a bargain. In my personal opinion the bubble won't burst until it is no longer in the foreign investors' best interest to invest here. That would mean that the prices in Vancouver would have to be higher or near China's prices. Of course that may happen if the Canadian government decides to make it more expensive for the foreigner's to invest by taxing them. Again, no body can really predict the future...

@Zach Schwarzmiller When you say "timeline of 3-5+ years" do you mean that is how long the "buy" supersede's the "rent"? Or simply the length of time you are focusing the study on in that given market? Sorry, didn't catch what you meant by that.

As far as interest rates go, from what I understand, they are decreasing here in Canada.

I didn't mention this, and I should have, the rents in this area have also been increasing. But, it seems as though the buying/affordability of owning is outpacing renting. I also think that a number of people who are buying homes are doing so with equity that they already had in their previous home.

@Ed L. That is a good way of assessing the value/price of a home. I didn't think of it that way. From what I understand the average price around this area for building a new home is about $200/sqft in Canadian currency (which is roughly $180/sqft American). So at $200/sqft x 2,500 sqft = $500,000 for the home. $750,000 was the price I gave for the lower end homes. In regards to new construction, in Vancouver you are looking at anywhere from $1.5M and up, depending on the specific area. That would mean that for that new home the purchaser is paying about $1M just for the land. In your opinion, what is a reasonable price to pay for land, relative to the value of the home? Should it be less than the actual value of the home?

I have another question; since I'm looking to flip homes, and hopefully I can turn the home over in 2-3 months, should I really even worry about whether the market is in a bubble or not? If I found a home that wasn't on the market, and I found a private lender, and was hypothetically able to purchase that home for cash, for less than the average price for a similar one, then I'd be getting a good deal whether the market is in a bubble or not, right? I guess my question would be, how big of a risk is it if I'm really only looking to turn the property over in a very short period of time. Can a bubble burst within 2-3 months?

Something I heard a while ago is that if renting a home is cheaper than buying it in an area, then most likely that area is in a bubble. For example in my area a single family detached home (4 bedroom, 2-3 bathroom) starts at around $750,000. The same home rents for approx. $2500/month. Buying the home with a 10% down payment and at an interest rate of about 2.5-3%, monthly payments are approx. $3,000 over 35 years. If mortgage alone would cost more than renting a home, isnt that a sign that the market is in a bubble? What do you guys think?

I live in Vancouver, BC and it is very hard to find a single detached home in the area for less than $700,000. Although I know the area is nice, I still can't see the value in the home or the land. I'm looking to start renovating homes in the area. Would you guys recommend for a beginner to start further out where homes start around $350,000-500,000? Or try to find a private lender and start in a high priced area like Vancouver?

This site has created so much value for me so far!

I just finished reading chapter 7 of the guide, and man is it enlightening. This guide is simply invaluable. What's funny is that the seminar I attended last weekend seemed like they were basically using this guide as their handbook and just regurgitating the information. Anyway the beginner's guide is great work and I can see myself referring back to it many times in the future.

Thank you BP!

@Brandon Turner

Thank you for the Keyword Alerts tip, I just set them up. Seems like an ingenious feature to have.

I also listened to the podcast last night with Justin Silverio, and it was very informative. I was very inspired when I heard how Justin started his first rehab. I can relate to that since both of our father's are general contractors. You guys did a great job in interviewing and asking the questions that are on the minds of us newbies!

Hi all!

I am a complete newbie to BP and to REI!

I actually found this site by looking for a review for a seminar I recently attended. So far I am very impressed with everything that BP has to offer. I truly believe that site's like these, and really the internet in general, is a huge blessing and we are so fortunate to have access to them.

So a little bit about myself...

I recently suffered a work injury (broke my leg) and have been recovering at home for the past 3 months. I was working a job which I dread! My real dream job is to flip homes and build new homes. While I was working my full-time day job I was attending a local college, 4 nights a week, studying Architectural Building Engineering, i.e. learning how to design residential homes. Currently I am finishing my last semester in that.

Now that I'm not working I'm searching for jobs related to new home construction and home designing. Ideally I'd find a day job as a junior architectural drafter. On the side I would like to invest in a property that I could renovate and flip. This would be possible since my father is a self-employed general contractor who does residential renovations and would definitely be able to help me with renovating. My job at the moment is to learn as much as I can about real estate investing and getting educated on financing.

I signed up for BP yesterday, and today I was reading the "Ultimate Beginner's Guide to Real Estate Investing". In the 1st chapter I read the proverb: "If you suddenly had one-million dollars and didn't have to work anymore, what would you do?", apparently an age-old high school guidance counselor question. The answer to that question is what career field you should be in. What's funny is that I've never heard the last part of that before, but I certainly have answered the question many times! I've always said that the first thing I would do is invest that money into Real Estate. Right there I had a pretty big A-ha moment. It's one of those elusive obvious things; it's been right there in front of you your whole life but you never really looked at it.

Anyway, I'm really excited to read the rest of the guide so I will get back to that. God, I'm glad I found this site!

Hi everybody.

As a complete newbie to Real Estate Investing, and eager to get into it, my mom actually took me to the 3-day Fortune Builder's seminar.

I wanted to leave a comment here so that someone else who may be researching this company, as I was doing, can get another perspective on the topic.

After attending the 1st day of Fortune Builder's 3-day seminar, I went online to find some reviews on Fortune Builder's. On Google the 2nd non-fortune builder site was this one, and with this topic. The first thing that I read was actually Marie K.'s post.

To begin with, I had NO idea that this seminar was about their mastery program which costs $25,000. Alarm bells went off in my head, because on that 1st day there was barely any mention of this. There was one slide about some mastery program and one-on-one coaching and if you'd like to get interviewed about joining their "team" you can apply before you leave. All in all there was maybe a whole 5 minutes dedicated to their "program" and everything else was, what seemed to me, some good valid information.

The next morning the speaker shifted to, what I would call the "sales pitch" part of the seminar. There were still a few tips and tricks he gave out, but most of the presentation, like 85%, was about their program!

At that exact time, MY perspective changed 180 degrees. Suddenly, everything made sense. Especially since I already knew what was coming; the shocking price tag.

But it wasn't just about the price of it; it was the way in which it was all presented.

I just wanted to give the person who is about to go to one of these seminars a fair warning and things to look out for...

They will tell you to "clear your cup" - i.e. disregard any preconceived notions about real estate and becoming an entrepreneur in general. What that really means is 'don't think critically'/'let your guard down'.

They will say things like "Naysayers will tell you, Oh I don't have the money to start investing right now. Well, let me ask you this; how many people here have upped their credit card limit before? How EASY is it? How long did it take you? A phone call? 5 minutes?! That's like FREE MONEY!" (He literally said that.) "That's RIDICULOUS! You know you can invest in real estate for a very, very small amount and get a 20% ROI! Making that initial money you borrowed, FREE!". Now, that to me sounds like a huge risk, but even if it is somewhat, somehow plausible, and possible then okay, that's one thing. But the REAL motive behind that is not for you to invest in a property, it's for you to up your credit limit to say, oh, I don't know, $25,000? and then 'invest' it with them because you will get that money back within your first 6 months *no guarantees*.

To quote the speaker: "We really believe in transparency and, you know, Than always told me to be honest and up front with people. Tell them what you are about and what is going on here. Our business is in it for making a profit." Except that the seminar wasn't transparent from day 1, they weren't clear and up front about what they were selling!

Speaker: "It is absolutely critical that you understand the URGENCY involved in Real Estate Investing. You need to know when there is a good deal presented and you need to act on it... when?"

Crowd: "NOW!"

While that is true in real estate, the purpose behind it was intended for you to act on the deal they will be presenting to you, quickly!

All the posters around the room read "take action now.", "now is the time to change.", "to become successful you must take action!". Sure, great motivational messages, but motivating you to do what? Take action now and BUY into their program, now!

They attempt to cover up that fact by their "interviews" and making it "exclusive", only for the "select few who qualify". "You know, Fortune Builder's is looking for the investor mindset individual and not a consumer. And one of the things they look for is someone who is willing to take action and full responsibility even when they fail!" What that means is, should their program fail you, you take full responsibility, because after all, you were the one not putting in enough work. If you are that type of individual, then you are perfect for them. The ironical thing about that is if you ARE putting in enough work, of course you will succeed, and would have anyway, regardless of the program. The program they sell implies that it will accelerate you to your success, essentially get rich quick, all the while he says "there are no shortcuts to success". So, the person who will qualify for their program will have to accept that "there are no shortcuts to success" so that when their program fails to accelerate them FB can say "well, hey look, we already said there are no shortcuts to success.".

An example he gave was how Tim Horton's runs a franchise and Sally's Coffee is run by a Technician type of individual who wants to do all the work themselves. Again, I can see the logic in not doing all the work yourself because you will be too busy working in other areas, doing other deals. But then he goes on to say you will have so much free time! He contradicts himself by implying that you will see instant success, and defining that success as free time to do whatever you want, and saying that it takes a lot of hard work to become successful.

There are so many contradicting things the speaker said too. "You know what the definition of insanity is right? Doing the same thing over and over and expecting a different result. Only what's more insane is people doing what someone else is doing, seeing the other person failing, yet still expecting a different result! What you need to do to succeed is follow the right path, follow the people who have done it, proven it and succeeded themselves!" And then saying "But you have to be different. You have to be an unrealistic to achieve your goals!" Although all these motivational speeches are true in their own sense, it was all twisted in a way to convince you into buying their program.

The slides about making decisions. "Successful people who make money, make decisions. If you want to be successful, make a lot of decisions, all the time." While this is true in its own way, what they also wanted to indoctrinate is that soon you will have to make a decision (i.e. when you get offered their program) and to make money, you should make the right decision (i.e. joining it). Also, as a side note, I noticed that the speaker waving his hand towards the green/money side of the slide behind him every time he said "make a decision". Admittedly I may be looking into it a little too deeply at this point.

Something strange happened on the 1st day as well. At one point one person in the crowd spoke up and disagreed with a statistic that the speaker gave, and the speaker choked up! It was about "how long does it take for the average person to sell their home, on average? It takes 60-90 days". A real estate agent in the crowd said "No, actually it's different in this market....". And before she finished he just sort of shut her down and said "No, no, you don't understand, I mean from the closing day of the deal.". She spoke up again and I couldn't really hear what she said but the speaker got all nervous, sort of chuckled or something, went quiet and went for his cup of water. We were all awkwardly quiet, a few people were kind of chuckling at him. Personally I felt embarrassed for the guy because clearly he got caught off guard. I didn't make much of it until the next day, when I found asking myself why he was 'on guard' in the first place?

We ended up leaving on the 2nd day of the seminar basically right after the prices were revealed. Funny enough the last slide that I saw said at the bottom "don't leave". Which made me want to RUN!

Yesterday was the 2nd day of the seminar, and today instead of being there I'm writing here after joining BP. Last night I actually felt sick to my stomach about the whole thing. Mainly because I was thinking to myself what kind of suckers buy into this stuff? Before I said anything my mom says to me "you know, if I had the money I would definitely buy their program". After I told her my thoughts on it she said "don't be so negative about it.". Which scared me further because that's what the speaker said on day 1!

To me, from my perspective, the mastery program is a sham. I know some people will say 'you can't judge a book by it's cover', but guess what, a picture says a thousand words. And I got the picture loud and clear. With that said though, I would still recommend this seminar to newbies because it is a good starting point. For $200, I found that the information given on the 1st day was worth it for 2 people. I would advise you though, and hopefully you are reading this before you go in; go there knowing what THEIR motive is, what to look for and what to look out for. Once you know their motive it's easy to spot out the good valid information that they actually do give you. Take the bait, but don't get hooked! After all, I did find out about this site because of FB!

Anyway, I'm sorry about this really, really long post but I do hope that someone finds it useful!

Cheers