All Forum Posts by: Graeme Ford

@William Pope are you planning on holding this property for the long term? If so, are you ever wanting to implement property management? 

It is fine to say that you will take on the PM, but if you want to hold for the long term and eventually implement PM you have effectively set yourself up to be unable to do so. If the property is already negatively cash flowing, it would be even further in the red if you were to bring in a PM company to take over. 

Hey BP! I am very intrigued by the BRRRR strategy and have recognized there are many distinctions between what is and is not possible in Canada compared to the US. Is the BRRRR strategy something that works in Canada? May sound like a dumb question, but if I am going to narrow down an exact strategy moving forward I need to know it is worth pursuing.

Thanks for any replies!

@Pat Jackson sure sounds like you lucked out there and the important thing is you understand this moving forward to your future deals. So much goes into a real estate deal and I am not even aware of the totality of it all yet being a newbie. Always good to be reminded of how things can hinge on something you hadn't considered and what the implications of that may be on both sides of the fence. 

@Steve Rozenberg "first is having the same goals as your PM company and making sure that your business models are aligned with eachother and also setting the right expectations of what you expect of them and what can expect of you. Many times people hire a company jsut so that they dont want to deal with the problems of owning a property. The reality is those problems do not go away, giving it to someone that is not aligned with your model will only make it worse. Its like closing the door to a fire and expecting for it to go out on its own and when you re-check the problem is worse." 

Absolutely awesome way to phrase it!!! This will definitely be in my notes for the future along with the questions. I have started compiling all the information I have acquired from BP and its members and am creating standardized forms for whatever situation I can possibly think of. I guess this is the strategy of franchising your business or turn key like I read in the E Myth. 

Just wanted to say great knowledge and insight so thank you!

@Thomas S. good to know. My parents just before I was born made the mistake of renting to an individual on government assistance so I know exactly what you are talking about. If I recall things were good for a couple years, but somehow circumstances changed and on led the nightmare that for the most part turned him off of investing. They do still use their primary residence for house hacking with an upper level apartment, but haven't branched beyond that since. 

I find it amazing that it took me so long to realize the power of real estate especially living in a house hacking situation for my entire childhood and adolescence. I literally lived right underneath it! 

@Roy N. thank you for clarifying for me. 

I know there are many differences between the US and Canada when it comes to real estate. The problem is I don't know what I don't know so I truly appreciate your guidance. I would have had all these questions lined up for my prospective lawyers and CPAs and they probably would have looked at me like I have nine heads haha. Great insight as well to distinguish considerations between residential and commercial properties by the Big-5 beyond the "standard" cut off of 1-4 units and 5+. 

Are there any other notable differences that you think I should be aware between investing in Canada and the US? 

Thank you in advance!

@Jeff Copeland thank you for your response!

The due on sale clause is something that I have come across in many of the podcasts and I can definitely see where the grand debate derives from. Very difficult to distinguish between when a bank will exercise the due on sale when looking state to state let alone distinguish between the US and Canada. I think it is better that I go one route or the other especially in Canada as we have a very tight system in my opinion, which has its benefits and its downfalls. I just want to protect myself the best I can. 

So if I were to say jump to a 5-plex or more right away that would resolve my concerns and issues with funding acquisition because I would then be in the commercial realm of lending and does that mean an LLC would be the route to take?

@Thomas S. thanks for the reply! I am actually planning on moving back to Ontario at some point near 2018's end. 

I have a question about the month to month leases in Ontario. I had heard in one of the podcasts of a BP member from the Washington, D.C. area that had said month to month leases there are considered a "lifetime" lease. I may be paraphrasing that incorrectly, but is that the case in Ontario as well or how does that work? 

@Marcia Maynard wow what a story and thank you for taking the time! 

Very sad situation and I think it is amazing how you handled the situation. I can only imagine the frustration that you may have been feeling especially seeking authoritative figures to help resolve the issues with a lack of actionable intervention. I think that most people would have stopped there feeling they were alone to manage the situation. 

You kept the best interest of all parties in mind and I think that is very important especially if you want to have a real grasp of why what is happening, is happening. You and your husband did a real service to the community and your other tenants, which is something that investors do not get enough credit for. 

I have found a document on Crime Prevention Through Environmental Design (CPTED) and thank you for pointing me in that direction! Definitely something that I would likely not have found on my own and I will definitely be looking to implement this as I grow a portfolio. 

Thank you so much for your wisdom!

@Marcia Maynard thanks for the welcoming to Bigger Pockets! 

Sorry for making it a what if scenario, but I am still in my education phase so I do not have a specific scenario to speak to. As with most newbies this is of course a concern that I have versus a current scenario so I am trying to prepare for what hopefully won't happen. I understand the importance of adequate tenant screening for prevention, but even the most thorough screening cannot mitigate all risk. 

I actually just watched podcast 83, which you featured in a couple weeks ago!! So cool to hear from you! 

Thanks so much for the guidance