All Forum Posts by: David Steinbok

Investment Info:

Single-family residence private money loan investment.

Purchase price: $38

Once I joined to military, my investing in real estate came to a complete stop. I was so busy with training. Going off to basic for 12 weeks, then to Gagetown N.b. for about 20 weeks. I set a goal of 20 units in 2018 but I haven't bought a single property now in 3 years. Instead I've focused on military training exercises, and courses and ive been deployed on 2 domestic ops. OP lentus to Bracebridge and most recently on op laser to the long term care homes.

So I refinanced a property and used to money for my first private load. I loaned 39$k at 15% for 2 years. With a monthly cashflow of $480. It is a much smaller capital investment with a return on par with a rental property.

What made you interested in investing in this type of deal?

I was so busy with military training that I dont have time to commit to a full duplex reno.

How did you find this deal and how did you negotiate it?

Actually I met the person on B.P.

How did you finance this deal?

Refinanced a rental property

Investment Info:

Single-family residence buy & hold investment in London.

Purchase price: $270
Cash invested: $2

This was a nice 3 bedroom bungalow with a 1960s recroom in the basement. I did almost nothing to this house. Changed some light fixtures and bought a new fridge. Got it legally registered with the city as a rental and rented for 1850$ before my first mortgage payment was due.
I had planned on buying more houses in london but a few weeks after I finished this house, I was accepted into the Canadian military, and I was off to basic training for 4 months.

What made you interested in investing in this type of deal?

Nice house on a nice street. And has the potential for a basement apartment at a later date

How did you find this deal and how did you negotiate it?

Agent

How did you finance this deal?

Yes Scotia bank

What was the outcome?

Legal rental with 1850$/month gross rent. Lots of cashflow

I'm not a big fan of joint venturing or using other people money, or what ever you want to call it to get started. Just my opinion, but jv is a tool that I believe should be saved for when you have exhausted all your available resources. If you are able to buy a property on your own then it's a much better idea. And it's always good to own a few properties on your own. Having investors or jv partners brings with them a whole new set of challenges.  And you are always accountable to someone else.   

Investment Info:

Single-family residence buy & hold investment in London.

Purchase price: $250
Cash invested: $5

About a month later I picked up my second single family home in london. This one is a very large 3 bedroom brick bungalow on a quiet tree lined street. Has a massive backyard. All I did was paint and change some electrical fixtures. Basement was finished with a bathroom, bedroom and big rec room with fireplace and bar and has 7 ft ceilings. House passed all inspections on the first try and is registered as a legal rental now.

What made you interested in investing in this type of deal?

Going for cashflow, with the ability to add a basement apartment at a later date.

How did you find this deal and how did you negotiate it?

Real estate agents

How did you finance this deal?

Scotiabank

How did you add value to the deal?

Just cleaned up the house and registered it as a rental with the city

What was the outcome?

Got the house rented for 1850$/month

Lessons learned? Challenges?

This was probably the easiest project I've worked on to date.

Investment Info:

Single-family residence buy & hold investment in London.

Purchase price: $149
Cash invested: $27

I refinanced the last property in oshawa and prices were too high for me to make the numbers work again. So I went looking for another town. Everyone I knew headed east to Peterborough so I didnt want to compete with them so I headed west to london. Picked up a nicely renovated 2 bedroom bungalow for 149k$. Its rented for 1200$ and cashflow is on par with the rest of the houses I own but cost me alot less to buy.

What made you interested in investing in this type of deal?

I was having a hard time qualifying for a mortgage, since I no longer had a job. So my new strategy was to boost monthly cashflow. This house cost me 27k$ of my own money and the monthly cashflow is just under $600 a month. Which is excellent.

How did you find this deal and how did you negotiate it?

Real estate agent

How did you finance this deal?

Scotiabank

How did you add value to the deal?

I did some small repairs and added a back porch. Got the house registered with the city as a legal rental unit.

Lessons learned? Challenges?

It took 2 years fighting with the city to get it legal. They had an issue with the fastening system I used to attach the railing to the porch. Hired an engineer. And a big professional railing company. And after 4 hearings and inspections, the new railing system was finally accepted.

Investment Info:

Single-family residence buy & hold investment in Oshawa.

Purchase price: $395
Cash invested: $100
Sale price: $625

house was next door to one of my other houses. Owner saw me renovating and wanted out. was a rundown illegal duplex. gutted everything, rebuilt 2 beautiful apartments. 3 bed upstairs. 2 bed downstairs.seperate laundry, granite countertops and big windows . spent 70$k to renovate everything. nicest reno I had ever done. 2 weeks after my basement tenant moved it, the street flooded and my basement apartment was destroyed. I tore up the floors and 4ft of drywall. Spent 30k to redo everything

How did you find this deal and how did you negotiate it?

Was nextdoor to another house I was working on. Talked to the owner and he wanted out. He had enough of being a landlord

How did you finance this deal?

Bank mortgage

How did you add value to the deal?

Renovated into a legal duplex

What was the outcome?

Refinanced at 625. Got all my deposit and most of my reno money back

Lessons learned? Challenges?

Basement flooded. Learned to put in sump pumps in all my basement apartments

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes

Investment Info:

Single-family residence buy & hold investment in Oshawa.

Purchase price: $395
Cash invested: $100
Sale price: $625

This house was next door to one of my other houses. It was pretty trashed. Owner saw me renovating and wanted out. It was a rundown illegal duplex. I gutted everything, rebuilt 2 beautiful apartments. 3 bed upstairs. 2 bed downstairs. With seperate laundry, granite countertops and big windows in the basement. I spent 70$k to renovate everything. It was the nicest reno I had ever done. 2 weeks after my basement tenant moved it, the street flooded and my basement apartment was destroyed. I tore up the floors and 4ft of drywall. Spent 30k to redo everything and added a sump pump to every house I owned. Lesson learned. Refinanced it for $625k and got all my deposit and most of my reno money back

You cant look at what works in the u.s and think it will automatically work in canada. We have a very different real estate market. The avg price for a detached house in canada is now over 600$ k. So you will never find a house for 20$k. 

super easy calcs that I use are

1. Gross Rent > mortgage p&I + ptax+insurance +200$ buffer for vac/maintenance. 

If it passes with positive cashflow then I move on to quick test #2

2. Yearly noi must be > 10% of total money invested to purchase and prepare house to rent. Coc > 10%

If it passes quick test 2. Then I seriously look at the property and do my due diligence.   

My Rules. 

1: I always put 20% down

2. Never count on appreciation.  It's a bonus for me. 

3. If my cashflow isn't 10% then it's not worth my time. I can find an easier investment model to make a 10% return, with less headaches. 

There are so many groups in the gta. Volition, Sara Larabi in Burlington, Quinton in ajax area. Luc downtown. Monica at the bayview golf club. Gary and chris at smart home in ajax

There are groups with hundreds of other investors. Once you have a few properties,  everyone hits the credit wall. So there are always people looking to jv with someone who still has money and credit. You won't have a hard time finding someone to partner with. 

Not sure what everyone elses PM's are charging, but the 3 that I use charge a full months rent to find and place a tenant.  It may seem like alot, but I've never missed a months rent in 7 years due to an empty apartment.  You get what you pay for.