All Forum Posts by: Huong Luu

Even at $1,400 /m rent, its still negative cash flow. Also you used 7% vacancy. You might want to consider using 8.3% which is 1 month.

Great question. You can team up with agents who you can pay to give you the info you need from the tools and resources. You can also find firms that offer those services.  

Going through the course will give you tons of knowledge and allow you to network. If you have the time and funds, take the course.  

Hi BP family. During a recent on-line group (Canada focus) meet-up, I shared my reasons as to why I decided not to become a RE agent 5 years ago to the group. Unfortunately, my comment offend a few people on the call. I would like to take the opportunity to formally apologize as it was not my intention to insult anyone making the choice to become a RE agent. 

I personally didn't want to compete with 40,000 other agents in S.Ontario and didn't want to give up my weekends doing open houses. 

Here are my questions:
What other career paths are there within RE for someone considering getting into RE?

If you thought about becoming a RE Agent and then changed your mind, why?

If you are a RE agent, any suggest to the new agents coming in?

If someone told you they were taking the courses to become a RE agent, what would you say to them to discourage them or encourage them? 

My apologies again for offending those on the call.  

@Richard Poitras Look into REIN. They are based in Canada, and their tools and resources are Canadian focused. 

@Curtis Woloshyn There are so many other things you can be doing with your money than doing this deal and only making 4%. From what you wrote, it sounds like the money is burning a hole in your pants. Don't be so quick to invest it without really doing your homework. Do your check on your partner. If they are okay with 0% income until the mortgage is paid off or until you sell, then this reads like 'the blind leading the blind'. It will take about 5-7 years before you will make a dent in the principal payments. You will not be leveraging OPM to get more properties. I would suggest you team up with an experienced RE investor who does JVs. 

You will also be splitting any negative cash flow. Ensure your terms include buy out, 1st option to purchase, property management fees, change in rates, etc. 

To answer your original question, what else can you do: 

1. max out your TSFA and make good investments 

2. max out your RRSP

3. look at RRSP mortgages for this deal 

4. private lending

5. MIC

6. find other RE investors who will give you a higher return now

7. self development (specifically the rule72 and compound interest)

Good for you for taking action thou. After it is all done, record all your learnings. 

If you offer a down payment of any kind, ensure the wording allows the d/p to be 100% refundable. Also from your post, if you are going to pass it to your buddy, ensure there is a clause that allows you to 'assign the deal to another before closing'. You want all the normal conditions. What you are doing is called 'bird dog'. Not as easy, and very time consuming. Good luck.

There is this on-line meet up too. Here is the link for more info https://www.eventbrite.ca/e/real-estate-questions-and-answers-on-line-tickets-85941269651

Hi BP family. Looking for ideas for a vacant waterfront land in northern BC. About 2 hours north of Kamloops, 110 acre. There is an option for RV, lodges, etc. However the surrounding area already has alot of RV, lodges, campgrounds. I am looking for another idea. The area is full of lakes and more lakes. There is a 2ndary road access. All small cities are about 2 hours away. Also looking for contacts who might be interested in this type of land.

Are you thinking of doing a RTO with you as the investor or the renter? It wasn't clear in your post.

If you are the investor, RTO is an advanced strategy, so I would suggest you read up and get mentorship on this. 

If you are the renter, then you are not getting into REI, but helping someone else with their investment. If you want more info, just message me.

Also, besides the RRSP 1st time buyer, there is actually RRSP mortgages (arms-length and non-arms length). 

@Nate Baylor Congrads on the 1st cheque! After 20 years and having 16 doors, here is my recommendation. Open a separate free chequing account (ie Simply). It doesn't have to be a business account. As @Ross Kalmbach mentioned it will keep everything easy once you get more doors and tax time makes it easier to file. I have a business account and it is a waste of money. They charge tons of fees per deposit and withdrawal and monthly maintenance. I have a separate free chequing account for the rental and at the end of the year just make sure the accounts balance. The accountant/bookkeeper can give you some advice on this. I also use a spreadsheet to track all the in/out and do analysis on each property. This way you can see when the expenses increases and calculate %. 

The other thing I would suggest is set time each month for bookkeeping and set up a good electronic filing system. If you want more info, just message me. Good luck.