All Forum Posts by: Eric Chang

Checked out your profile Whitney. What an amazing accomplishment you have done. Excited to check out your podcast episode. I sent you a PM on out of state BRRRR.

Originally posted by @Whitney Hutten:

@Mark Barton I agree, BRRRR investing out of state can be very challenging to get started. You have to set up the business correctly from the beginning. 1. Making sure you are selecting the right markets and submarkets for the type of asset you want to hold. 2. Making sure you have found a rock-solid team. I start with the PM as they are my day-to-day operator and have to deal with any messes created by other people. 3. You have to have the ability to scale the business quickly. Meaning, you have to understand how to build a lead funnel, underwrite properly and use lending appropriately. Also, have the intent to get to 5+ properties in a short time (like a year) so you have some sort of numbers behind you (10+ is better). PM me if you have Q's!

0 Votes

I'm a big believer in what Jim Cramer likes to say: There's always a bull market somewhere.

I think there will be a shake up in the market.

Areas that have been highly dependent on AirBnB could get crushed.

Class A properties in major city centers could be in a tough spot.

On the flip side, Class B/C properties, mobile homes, etc could do just fine.

Outskirts of cities may do fine as population move towards cheaper areas and avoid staying in highly populated cities as aversion to future virus outbreaks (this is a longer term view on the overall housing market).

I think the real estate landscape is about to get reshuffled. In some areas markets could suffer, however, some markets would go on as normal even hitting new highs.

To paint the entire real estate market with one broad brush stroke doesn't make sense to me.

One thing that is for sure is to keep an eye out on government policies towards landlords. I'm more concerned about this than the overall market. My big bet is that the government will never want massive amount of people to go homeless. Some thing will have to be done if we ever get that bad.

With all the stimulus the FED has injected into the economy, I'm extremely bullish with real estate. I think we are entering a golden era of REI - That is if we choose carefully where we invest.

Good luck to everyone!

5 Votes

Hey Mitch / Mark,

I'm getting into long distance investing too. I was managing my portfolio from Canada while I was living in the US for 3 years. The local connections are absolutely key to success.

Mitch, you mentioned the education you've gained from losing all that money. What would you say the top 5-10 things you've learned from investing out of state?

Originally posted by @Mitch Smith:

@Mark Barton

Hey Mark. Welcome to BP. Congrats on starting your new journey. Its a heck of a ride. I wanted to take a minute to respond to your post. I too had that same question regarding out of state investing 10 years ago. I live in San Diego. Arguably one of the most expensive markets in the country. I have been investing in Indianapolis for almost 8 years now. I started doing flips in California but quickly discovered that if I wanted to build my own portfolio I would need to make some changes. So I moved my business to the midwest in search of a more favorable market. I am here to tell you. Operating from out of state is definitely possible. Not easy, but possible. I am doing buy and hold, building new construction homes, and flip transactions from 2000 miles away. I know that Indianapolis is not the the only good market, maybe even not the best. But my opinion is that it will be good for quite some time. Especially the 5 surrounding counties around Marion county. The key is building a solid team that you can trust. I lost a considerable amount of money while I was doing this but you know what? I would not give up the education that I acquired in a million years.

How do you get there? You go out and start building relationships, asking questions and failing forward. This is not a get rich quick scheme and the relationships you build will help improve your business as time goes on. I wish you all the luck and please feel free to reach out if I can help.

Mitch

0 Votes

I've done some BRRR deals to add value to my properties with good success for properties in Southern Alberta.

I'm curious if there's any appraisers/flippers here can comment on:

1. Other than using comps, how are properties valued?

2. What kind of improvements contribute to the house value the most?

I've done a combination of kitchen, bathroom renos and adding bedrooms, basement suites, etc. Would be interested to learn what are the best bang for the buck for renovations or flips.

Cheers!

1 Vote

Originally posted by @William J Steiner Jr:

Yes the properties are all leased up and cash flowing well.

Hey William, did you have any luck securing a portfolio loan? It's probably tough the last little while during COVID.

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Originally posted by @Don Spafford:

@Matias Pereyra Sorry I didn't see your post earlier, the message thing didn't work for some reason as it didn't highlight my name in Blue. But yes, Mountain America Credit Union does portfolio loans and will count any future rental income as your income to help qualify.

Hey Don, thanks for commenting about Mountain America Credit Union. I'm also looking for portfolio loans. I realize this thread is dated 2 years ago. Do you know if they are still offering that? Also, love to connect with your wife as well on getting MLS listings that are investor friendly.

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Originally posted by @Anthony Therrien-Bernard:

@Josee Fortin

You gotta work with a mortgage broker that has experience working with investors, and make sure to lay out your long term strategy up front as it really helps with finding later on, he will make a plan on which lenders to use first, which to use later etc. If you are looking for someone I have one that is absolutely outstanding he is the only member of me "rockstar team" that I have not replaced, I can send you his info if you'd like.

Hey Anthony,

I'd love to chat with your lender too if you don't mind sharing? Thanks

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I have a small portfolio of residential rental SFRs. As fellow Canadians, we all know the challenge to get bank financing beyond 3-5 properties. I've done some creative financing structures such as partnerships, seller financing, etc. so far.

I recently came across on the BP podcast that in the US, some banks would allow bundling a portfolio of residential SFRs into a commercial loan. I spoke with a commercial mortgage broker and he said he isn't aware of any lenders doing that in Alberta. He did say if I can bundle a portfolio to around 5mil range, he might be able to do something.

I'm curious if the experienced Canadian investors here have any suggestions other than using private lenders?

Appreciate your insights.

2 Votes

Originally posted by @Jordan Han:

Don't have too much experience with wholesaling but would be interested to learn more as well!

I mostly focus on acquiring rental properties at the moment. It does seem like it should be possible, I am looking to test direct mailing in the future.

Hey Jordan, I know this is an old thread. Have you tested out direct mailing? Curious to brainstorm with you on the results. My background is in online marketing, I'm looking at online ways to do wholeselling.

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All Forum Posts by: Eric Chang

Eric Chang has started 2 posts and replied 9 times.

Post: Remote Real Estate Investing

Post: You have 6 months to liquidate your assets

Post: Remote Real Estate Investing

Post: Appraisal valuations and increase property values

Post: Bank? Mortgage Bank? Mortgage broker? Portfolio Lender?

Post: Pocatello, ID multi families

Post: Calgary, Alberta Real Estate Investing

Post: Creative financing for Canadian residential properties

Post: Can you do wholesaling in Canada?