All Forum Posts by: David Steinbok

Probably because it's a more accepted and common practice in the u.s.   there are lots of successful wholesalers in the ontario market. And it seems like every new investor is getting into wholesaling now as a way to genereate quick cashflow. 

i bought the condos from tridel at Younge and Shepard.  A 1bed plus den and a 2 bed. I got a great deal because I tiled the sales center so I bought with the friends and family, agent period. 

it took almost 3 years to close. All my money was tied up and I thought the value of my purchases were going to go up. (Now in 3 years I can do multiple Reno's and flips. )

When i finally got the units. There were hundreds of other units for rent. So i had to lower my expected rent to match what everyone else was renting for . I had 25 people come by one day, and both apts got rented fast. But i was adding money every month to service my debt and expenses. I thought this was ok at the time because i had 2 new condos in toronto. 

That year i felt poorer than ever, spending 1200 a month of my paycheck to keep 2 condos. They wernt going up in value as I expected. Maybe 5% a year. I started going to real estate meetings and learned what i was doing was foolish on so many levels. No cashflow, 0% cash on cash return. Low appreciation.  Too much competition. No forced appreciation, high debt ratio for future purchases. The list goes on and on. So I decided to sell. 

I put both up after my 1 year leases were up. Both units were empty.  I had a number that I posted them for sale to make some money. There were over 70 other units that looked exactly like mine for sale at the same time. I had showings every day but no offers. I lowered the price 2 times and still no offers. Finally after about 4 months i managed to sell both units. My 4 year investment didnt even make me 10% return after all my fees and expenses.  

my houses on the other hand, in 4 years, you make 100% return on your money. And as you'll learn on BP from other, houses are better. Then move to m.f. 

I bought 2 condos pre construction from a builder I worked for when I first started out in real estate investing. My money was tied up for a few years. There were so many other investors renting out units for less than what i had projected my rents to be. I ended up being cash flow negative about 600$ each for about a year. Finally another investor helped me see the error of my ways, and i sold them. But there were 70, one bedroom units for sale at the same time I was selling. So I didnt get too many offers. I learned very quickly that sfh, are way better investments. 

People are leaving toronto for the suburbs. The condo market is flooded with units, there are 150 cranes in toronto at the moment building more. I've never been busier in the 20 years I've been in construction.  But the units are empty and rents are going down. 

It's a great idea. And you can buy property anywhere and you dont have to live there. 

Kiril. If you are going to have an apartment in the basement it's better to close off the access to the basement from the upper unit. It make the fire separation process between the 2 units easier and it has to be done in order to legalize the house. In all my house conversions I block the stairs, take out the 3 steps leading to the main floor and replace it with a stackable laundry for the upper unit. Works great. 

Good luck on your goals.

You are over thinking it and now because you have done so much learning, you are second guessing your gut. 

As long as your gross rent covers your expenses and you have some cashflow, then you are good to go. 

things you should do is to have your finances in order. Get pre approved so you know what your budget is and you have no surprises. 

go out with an experienced investor agent and go look at 20 houses. You will quickly learn that they are all very similar and you are looking for a specific thing that makes a rental property. 

Surrounded yourself with other investors and it will help boost your confidence and then pull the trigger. You'll learn way more on your first property

 Good luck 

Not sure what others are doing, but my jv partner property uses a joint bank acct. The rent money goes in, mortgage and other Bill's comes out. And any repairs get paid from that acct. We both put in money at the start to buy and reno the property. 

My first rental property mortgage was also a 10yr fixed at 5.69%. Back in 2013. I thought it was a good idea at the time to have 10 years of stability and a consistent payment. I learned quickly that was a mistake. Cost me thousands to break that mortgage.  Now if I do a brrr, I do a 1 or 2 year fixed as I'm renovating, then when I refinance I switch to a 5 year variable at the lowest rate I can find. 

Good posts on here.

my triumps. Didnt loose any properties due to covid and almost every tenant paid rent in full. 

I was able to be deployed with the military for 6 months and leave my properties with a management company. First step to freedom. 

I was able to refinance a property and move the money into Olympia trust to start private lending.  

I've helped mentor a few new investors buy their first property and start the legalization process

Mistakes. 

I may have over reacted to the thought of losing a property or 2 due to carona. I deferred 3 mortgages as a precaution, but now my mortgages on each are a bit higher. 

I never ended up buying any properties this year. I had the intention to, but I think I was just burnt out. 

Thanks Ben