All Forum Posts by: Cynthia Ganga

I've been in the trades for 10+ years both in painting, electrical and finishing carpentry (as an apprentice and as an owner) so I know what I"m talking about and won't work with contractors who try to play the "girls/investors/flippers are stupid" game. 

In foreclosures I do a walk through estimate myself and if a contractor can meet and match my estimate we can work together. 

I expect a detailed estimate including materials down to the brand name, if cheaper products are used it's against the contract and my project manager is told to end the relationship. Because I know that code in the States is way laxer than where I"m from in terms of efficiency, I go with my own standards of work. 

I build in due dates and bonuses if they are reached with good quality. I have a second inspector come in and ensure that everything is done in the contractors permit/city licensing for permits. 

I also build in payment clauses that certain work is to be done before a certain percentage is paid. 

I will pay a downpayment on a date/ schedule of a good contractor just so I know he'll be there on time ready to knock down and drag out the ugly. 

@Roy N.

When I owned a solar and wind power (Signatory with the IBEW 424) we did detailed estimates all the time. We were doing contracts from $60,000 all the way up to our biggest project over the 4 years I ran it which was about 60 million in a national sized project in South America. 

The costs of panels could vary wildly and estimates were guaranteed for only 30 days. 

Producing the job on time and on budget was part of the estimate and if we made both of those goals we were paid a bonus. 

This included cost of goods, time and overtime if necessary for my Electricians and also costs for Project Managers and who and what they were and projects they had done successfully on time and on budget with no safety infractions. 

@Tom Doan

When my business partner was running his software firm in the late 90's to just before the bust he bought a lower end sports car for cash in 2002 (65K at the time so 87K today) so not Lambo cost but still a big chunk of change. 

It's totally doable. 

I'm speaking from having had money and lost it due to slow and bad deals in land development. 

Buy the car. 

Insurance is actually less for his sports car than for my 1992 Chevy Cavalier because I've had a big ticket last year (never bought a car or a house, kept all my money in cash and deals then went belly up). He bought the car then a house in 2006'ish. What I've found is that his $280K house is now valued at $450. Markets here don't change that much (not like the ups and downs in the States) and we went through a big change in 2008 where houses went upside down in some cases but are now up again. 

He left about $150K in a mutual fund that dropped in value in 2008-2010 by about 30%. 

He has rental property that is paid off from his family. 

Here's the thing though, when you lose in business credit is very hard to find and IRS will seize assets and make your life miserable (been there done that in Canada) and servicing a loan for a car like that isn't something that creditors will accept. He got to keep the car when we lost everything at the Silicon crash because it was paid for in cash. 

Do an estimate of the reno's necessary. Take the total equity they have in the property and compare it again the MLS recent sales for (age of building, square footage of building and rooms/bathrooms).

Make up an offer that includes cost of reno plus whatever portion of equity that deal can afford to give owner. 

Close contract with owner in foreclosure. 

1) Sell as is/where is of MLS for small finders fee to investor.

2) Sell as short sale to investor/ renovator and do double escrow. Both owner in default and you will be at close to get cheques. 

3) Find hard money for 2-3 months (usually 10% or above) to do reno with licensed, bonded and insured contractor in area for the cost of the reno's necessary. Could possibly pay them on sale of finished property if you know them and they are on time with reno's in the past. 

4) Buy with your money and renovate with your money and hold for 1 years to ensure tax burden is better and rent out in the meantime after you reno. 

@Ron N. 

Thanks. 

@Roy N. 

Oh, and my response was a thanks for the info, I'll call them by the end of the week to see what they can offer me as trustees. 

@Roy N. 

I constantly get offered positions in companies based in Alberta who have operated successfully for 2-3 years and want to expand with shareholders. 

They would take the loss as a company and I would take the payouts ( capital gains) as a shareholder. I am offered of course to just invest again and I would way that every time. 

I'm getting the run around from private wealth management firms that I've talked to about starting an RRSP to invest in small businesses and property. It's allowed by CRA but I'm finding it hard to find a trustee (company that manages the paperwork). 

Any suggestions? 

This needs to specifically be BOTH small business shares in private corporations and mortgages or property. 

That isn't at subprime rates (higher than 6%) for buy and hold strategy. 

Perfect credit but in Canada. 

Lenders I've talked to so far say that they will finance at 7.99% for an LLC hold, but as I am smarter than that in terms of the corporate entities and tax strategy I use....I need a lender that will allow me to hold in an LP/LLP/LLLP.