All Forum Posts by: Jeffrey Furtado

@Kristen Shook No need for an agent. While she is saying 'as is', I would still insist on a home inspection so that you know what large issues may arise. As stated by others, a lawyer is all you need to purchase property. I have purchased all my properties (primaries and rentals) with no realtor (used the seller' realtor for a double-ended deal or have bought private), but I always use my inspector. 

Forgot to mention that if you being a realtor into the mix, someone (typically seller) is going to have to pay their commission.
Not sure how a realtor is going to bring any value to you on this deal, but an inspector would. 

Thanks @Ryan Martin you helped me to chip away at that small 1% of doubt I am having.

@Chris Baxter Thanks. One point you made has been on my mind quite a lot in the past weeks, and that is will the housing market/MFU drop or even tank, and would I be able to pick this 5 plex (or similar) up for less money in the future.
Of course, it could drop and rebound quite quickly..or it could keep going up, or (insert any number of things that could happen in the next months). So while I have that on my mind, I am not too focused on it as I do not have a crystal ball.

Hi all, 

Long time RE investor and flipper in Canada (Ontario to be exact). Old enough to have started just around the recession of 2008/09. 

I have two properties closing at end of April and on May 1.

The first is a duplex -- which I could not back out of even if I wanted to. All is finalized. But given the world right now, this variable plays into my question.

The second is a five plex which i have until Friday April 3 to cancel due to finance clause, if I wanted to. 

I own other rentals properties as well. This variable is important.

I have large cash reserves, zero debt, along with numerous lines of credit and credit cards-- again, all at zero. Feel those variables are important to my question as well.

I realize only I can truly answer this question (but even us seasoned investors can have doubt, especially as this virus is a first -- well since about 1908-ish anyway) but i am curious to know if others would cancel the 5 plex purchase (or continue the purchase with confidence) given the obvious issues with the world right now.

Both properties cashflow, and all of my other properties cashflow (if tenants pay rent obviously) with the new 5plex cashflowing right around 2k per month. I am still employed and my career is executive.

I am 99% confident, but 1% still lingers.

Thanks all

Thanks.

@Andre P.

The reply to name does not work properly on a phone for me, need laptop.

I hear what you're saying via your response to me, but what you need to understand and hear is that you're focused on the wrong things. 

I asked why you did not make an offer (thus allowing someone to put it under contract) and you go on to explain to me again about permits and work required to make the property how you want or need it to be. Instead of again explaining why your thought process is incorrect, let's go at it from a different angle nor analogy --

You're selling a car (model and price irrelevant).

I come by, we speak, I tell you inam interested. I then spend the next days or week going to mechanics and insurance companies to determine what it will cost to fix this and that and customize this and that, and call insurance to get a quote.

While I am doing all of that work above, Joe from down the street where you live stops by and says hey Andre, I'll buy your vehicle, here is a $2000 deposit and a signed contract to buy it.

Should I be upset at Joe down the street? Did he do me wrong or swoop in and steal it from me?

should I be upset at you for  not holding on to the car and waiting for me? keep in mind you have no real idea if I may or may not actually buy it. All I've done thus far is talk, Joe put money and a contract in your hand.

Should I be mad at myself and realize I was wrong, too slow, should have made a move, put money down, a legal contract down, something, anything besides just words? And realize next time I'll treat people and deals as I would want to be treated. Meaning, dont bother telling me, show me with money and legal contracts.

Please Andre, before you come back with something like 'I had every intent to buy it'  or something similar to that, pause and consider that no one, including you, knows what will actually happen until money and contracts exchange hands -- and even then deals fall apart. 

To Me, Astro is just a new term on existing processes or strategies. All the gurus making up new buzz words to sell their coaching, courses and such. Like the new term house hacking, which is simply owner occupied.

I am confused as to why you did not make an offer on it? 

Why would the sellers wait for you (regardless of what you were doing with permits and research) when someone else did what really matters --  signed a legal contract to buy it. As the saying goes, money talks.

I 've purchased every single family home (except my first) and every single rental property using the sellers agent or just private sale.Over 15 years of RE investing i definitely see the value in it. I would not state all agents would do these immoral and unethical things, but how would one know one from the other? Regardless, there is value in leveraging the double commissioned realtor.

I am always asked for previous 2 years NOA and   T1 Generals with statement of business activities.

I never considered if they verify them or how they would. Curious to know/understand this as well 

@terry n. 5% down on the owner occupied. Every few properties or few years lets say, do one owner occupied. House hack is simply a new term for owner occupied. 5% down on duplex, 10% on 3 or 4 plex. All through big banks, with exception of one through a credit union -- all 20% down, with exception of 3 that were owner occupied over the years -- with one of those Owner occupied in recent 14 months (keep in mind i gave you my portfolio acquisitions forecast 14 months, anything prior to that time frame would be dated info for your purposes). But in the end, yes, you can get your cashflow goal with your 250k starting capital. Then keep saving your cashflow, refi or heloc when appropriate, and then work on 10k cashflow.

As for capex, everyone follows different rules or guidelines. PM me if you would like more details. 

Renos have differed with each property, so that's a hard one to comment on. Ive also done various off market deals, so while they needed money and work, theybwwre priced very well. Others needed little to no work, others just cosmetic. Again, too many variables. Jump in and get your hands dirty my friend. I've never looked back with regret on amy purchase, but I have looked back with regret on ones I did not purchase.

I dont know your area, but on the surface it looks like a good deal. Lots of upside once you turn over tenants and renovate units for higher rents and equity. What does a similar duplex in your area go for?