All Forum Posts by: Chris Baxter

I'd also weight the liquidity of the investment in considering your potential return.... if you lock yourself in for a year and there is a favourable shift in the RE market or in your financial situation, you won't be able to act...

I don't know if 'enjoy' is the right word... While my properties have appreciated, access to deals with sound fundamentals has completely evaporated. In the MF realm, cap rates are being driven down (even in secondary markets). Investors continue to (IMHO) overpay for properties as they throw cheap money at properties for FOMO.  I'm considering taking advantage of this trend by selling some of my holdings to someone that has more capital than common sense.

Where to invest now????

1) Buy a business that suffered during COVID but has sound non-pandemic fundamentals

2) Buy in markets where cap rates still make sense (i.e. not Canada)

Investing for the hope of appreciation is not an investing strategy, its gambling. 

@Jaydon H. Canada's big lenders don't have 'portfolio lending' that you may hear about in podcasts. Also, commercial loans have nothing to do with your business structure; a corporation can secure a residential loan and an individual can secure a commercial loan. Commercial loans are for 6+ (sometimes 5+) doors in one acquisition (generally one property, sometimes more considered). If you are buying multiple SFR properties or similar, each will typically carry its own loan. B class and smaller lenders (credit unions) can sometimes get more creative.

I would imagine so... I don't invest in Ontario anymore, though. The paralegal that I linked to might be a good start to get something drafted. 

Hi @Dan Forbes   Here is a past discussion on this topic:  https://www.biggerpockets.com/...

Here is a site that describes the process and forms (negotiated end to tenancy via N11):  https://ranger.legal/EN/landlo...

Hi @Shiv Dutta I use LFCA... I don't use anything else so can't make a comparison for you. It costs $100... trivial if you are running a REI business

@Binh T. I know of people that fix and flip condos locally; they target up the valley (Chilliwack, Hope, etc.) and also Langley.  They can generate $20-30k per flip doing most of the work themselves.

I personally invest in other markets (Moncton included) and investing at a distance isn't scary at all when you build solid relationships.  As you've noted, though, the market there is currently crazy (perhaps unsustainably so) as people are overpaying for properties with cheap money.

@GS Thandi  welcome to BP... CMHC rental market reports are a good place to start until you want to dive deeper into a specific market: https://www.cmhc-schl.gc.ca/en...

Once you have a market or two identified, you can get the local flavour from realtors / PMs in market

Have a read through this.... https://www.canadianrealestate...   Your bank will want first position and may limit the VTB (second position) contribution.  

Work with a broker instead of one of the big banks to get a better picture of what's possible.

As a bit of advice, it sounds like you are trying to justify a bad deal with the hope of creative financing. A bad deal is still a bad deal... don't let FOMO force you into something stupid.

@Elizabeth Gregorio it's likely not just the strata fees that are causing negative cash flow, but also the low rent to price ratio. Regardless, you are providing subsidized housing for your tenants if you aren't cash flowing.  SF in the lower mainland isn't going to be any better unless you can create legal duplexes. Consider looking at other markets where there is no rent control and where the numbers make more sense.