All Forum Posts by: Chris Walters

Pablo C. Hi Pablo, welcome to BP! Yes, just follow the i struction and it can be applied to the Canadian market. It is pretty straight forward. Let me know if you need any help.

Jason Dellaposta Hi Jason! How are you doing? Welcome to BP! Let me know if you ever need help with anything.

@Account Closed Hi Elias, in my opinion, if you have positive cashflow it might be preferable to leave it as is or simple raise it by a very smal amount every year. Think about the fact that they are probably saving you money due to the fact that they are doing most of the repairs themselves. You might want to ask yourself whether the raise is greater than how much it would coat you if you had to hire a professional to fix things. As for the lawn, get some estimates as to how much a company would charge you for their services and how often they would cut the grass. If the company charges less, you would have to wonder how much you are saving and if it is really worth it. In a case like yours, it seems the tenants are caring for you property as if it was their's which is a very good thing because you know your property is in good hands. 

On the flip side you have to consider your exit strategy. Do you plan on holding the property for long, because nowadays, most properties are negative cashflowing. So, when comes time to sell, the higher your cashflow, the easier the sale.

Anyways, whenever or if ever you decide to sell, please contact me :) You seem to have an interesting property!

Cheers

I know some might debate about how good equity investors are. I am simply stating my preference folks. Please do not try to chop my head off. Some of you might go all in with selling shares, but from a business stand point, it currently doesn't fit my situation.

@Samuel Lacroix De rien! :) It all depends on the person and others involved. I prefer keeping more equity in the company because I am always, if not, often on top of things. I am not a fan of letting other people's ego's come between my plans, money and growth, simply because they have money invested with me. If someone invests with me, I provide sufficient proof and trust for the person to believe in my vision. I prefer having silent investors who will be happy with the returns than having a person think that they should always have a say and right to block certain decisions simply because they are either scare or on an ego trip and think they are now running some sort of mega empire and that they will save the world.

Doesn't mean it will happen, but I have learnt to do my researches, plan things out and be smart with my money. If someone doesn't believe in what you're doing, it's either because you are missing something or they do not see the bigger picture. 

Here is another point regarding equity vs loan. If your company goes under and you go bankrupt, there are 2 different paths. Equity investors, are last to get their funds and if nothing is left, well everything is lost. Loans: loan investors are usually among the first to get back some money, after the government obviously lol. In my case, I hate owing money to people for too long, therefore, taking loans puts me in a position where I am a bit more forced to make it work for myself and investors, because in case of anything, I know they might be coming after the company. Also, once the loan is paid back, they are usually not touching any future profits, whereas your equity investors have to be paid out as long as they hold shares. Getting them to sell you back those shares is not necessarily the easiest thing when they are happy with the returns. At least with loans, if they are satisfied, they have to reinvest with me if they want a piece of the next pie.

Samuel Lacroix Hi Samuel, welcome to BP! :) Are you sure you want to hand out shares? Or would you prefer accepting loans and simply paying out a fix interest? The reason for which I ask, is because there are many types of shares, from A to J or something like that. For accounting purposes, there is a lot of paper work to be done, as you need to provide reports and statements,etc. For sure there are pros and cons about both shares and loans, but it will all depend on your business network and the amount of time, money and resources you have. From a business point of view, if I eventually do decide to give shares, I would open a separate corporation for each property. Reason being, thing change so do people's situations. The last thing you want is to have a person hold up any future deals. If corporation 1 buys a property and has 4 shareholders. In 5 years you might want topurchase another property and either cut a few investors out or seek new investors all together. Corporation 2 might have 4 new investors and there are no issues. Bringing in new investors in corporation 1 means that you need to issue new shares into that company and if anything goes wrong, you have 2 properties intertwined, and fixing that can be a headache. I know it might be a lot, but you save yourself some potential hassles in the long run. There is an entire structure that can be put in place depending on your short and long term goals. Let me know if you need more explanation.

Benjamin Haberman The beat thing you can do for them is to install food for thought, so that it will grt them thinking whether it be that same day or in 5 years. I would start off by asking them is money important to them by show of hands. Ask them if they know what is one of the few things keep that we are not running out of and that is not increaing; land. Talk to them about how you make money and the benifits of what you do. Unfortunately, the school systems do not talk enough about momey. Do not go into too many details, because you might lose them.

@Korie Apgar Thanks! That's some great info you provided :)

@Korie Apgar Thanks! Those are excellent points you are making. I would never base myself on potential numbers. I want actual numbers. I was wondering if it would be better for me to do all that research myself or if my agent might have tools to facilitate that process.

In terms of your expenses, can you share the percentages you use?

Also, what do you use in terms of closing costs when doing your analysis?

Thanks

Hi BP, I just found a property where the the Cash on cash ROI should be more or less 10% according to the numbers found on the listing. That being said, I am skeptical about the income stated, as most of the listings I viewed indicate "Gross Potential Income" instead of effective income. Would it be out of order for me to simply contact the selling agent and ask for the effective income followed by proof or should I have an agent contact the seller's agent. Also, can you please tell me what other questions I should be asking and points to look for? Thanks in advance.