All Forum Posts by: Chris Baxter

@Elaine Lee you are under no obligation to use the lender that your Realtor suggests.  I would steer clear of any agent that makes this a prerequisite of doing business with them (they are getting referral fees).  Find yourself a mortgage broker that is local to the market that you are purchasing in and who has experience dealing with investors.

Your Realtor is meant to be a partner in your investing business. Find one that you feel comfortable workign with so that you don't have concerns about being manipulated into higher priced properties. Realtors are well within their rights to screen prospective clients so that they aren't wasting their time, though, so you should make sure your are being honest about your ability to secure financing. 

@Brett Skauge  welcome to BP!  Unless you plan on making a business out of property management, you aren't going to gain anything by setting up a corporation to do your own PM unless you are playing a very long game. Payments that you make to the PM company will be subject to corporate tax, and then you will be charged personal tax when you take that money our (dividends or salary) to pay yourself.  I suppose you could keep the PM money accruing to a year where you have less income, but you'll also have the hassle of maintaining corporate records, business licensing, insurance, etc.  that will cost you thousands each year.

@Niko Bruno welcome to BP!  You've made lots of assumptions about this deal that need to be checked...

1) What makes you feel like downtown Calgary is a AAA location ?

2) Why have you decided that Calgary is an 'up and coming market'?

3) What makes you believe there will be 'great appreciation' between now and 2025?

4) How will you guarantee 2% interest in the future?

If #3 fails, you'll either have to walk away, or purchase a unit with negative cash flow... sounds like a bad deal to me. 

@Elaine Lee  stop all work now. Go to the City, explain what happened, and ask for their advice on getting back up and running.  Work likely doesn't need to be done by a licensed contractor, but the building inspector will need to check electrical and plumbing at every step.  You may need to tear down the drywall to expose the work done to date, so be prepared for that.  Ultimately, inspectors are there to make sure you follow code, which gives you the piece of mind that the job is done right.  Good luck

@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.  

@Christopher Leong E welcome to BP! Cash is king, appreciation is a bonus. I Invest for cash flow or for forced appreciation (improve NOI) only.

@Ramanjeet K. welcome to BP.  I would suggest that most investors put their money into investment real estate, not into making their primary house larger.  If your house isn't generating a return (appreciation doesn't count as it isn't guaranteed), it's a liability that you dump money into (see Rich Dad Poor Dad).  

@Paul Sverdlin Flip your question around for a brainstorming exercise.... what type of seller would sell me their property at below market value (or at market value without a bidding war)? What can you do to connect with these sellers? 

@Darcy Currie, I'd second @Julie Toh's comments... most financial planners get paid on commission by selling products (mutual funds, insurance) to people that don't want the 'hassle' of learning what to do with their money. If you are keen on REI, you'll want to interview accountants and ask them about their experience in this area. A CPA that invests in REI is what you are looking for.

If you want to learn the basics so that you can carry on an intelligent conversation with them, I recommend this book:  https://www.amazon.ca/Accounti...

@Elijah Williamson leaseholds are less expensive as you lease the right to use a property for a period of time.  You do not own the land. Some leaseholds are long-term and may be worth a look if they are likely to expire after you do (ie 80 years remaining on a 99 year lease). I wouldn't buy anything with less that 25 years remaining, unless you have a solid exit strategy.