All Forum Posts by: Larry Smet

That's a pretty typical flip for me, please include me on your list. 

Thanks 

Hi Everyone - thanks for starting this @Mark Perry - btw, it's funny that you identify yourself from Barrie - where I grew up - but live in Ottawa  :)

I live in the GTA so like @Hai Loc and many other Canadians I've been investing in the US for the last several years.  The prices in the GTA are ridiculously high....   I think we're all holding our breath and waiting for it to crash so we can invest here as well!

Originally I was focusing on flips but lately have started to pick up rentals as well.  We just acquired a duplex for US$17,500 with a rehab of US$81,000.  Now everything is new and it should rent for US$1250-1350 per unit.  It's impossible to find that kind of deal in Ontario as far as I know.

Any GTA investors somehow finding cash flowing deals here?

Thanks for sharing @Nick Versetto

Well done!  

Is this a SFH?

Don't forget that you'll likely require a property manager if you're managing long distance.  I recommend finding one specializing in the area and type of property(ies) that you're interested in and form a relationship with him/her.  They should be happy to give you an estimate of what rents will be in the area and it will likely be more realistic than rentometer, etc. (or at least a good check).

The problem that I've seen with these programs when I looked into them a while back (although they change all the time so do your own due diligence) is usually they will only loan in your personal name. You can't own the property in an entity, even if wholly owned by you. That's a real problem from an asset protection and liability standpoint. The other problem with some of the programs is the low (ie 50%) LTV.

Let us know what your current research uncovers. Thanks 

Hi @Cal Ewing

It's most definitely worth doing business in the US.  There are a number of reasons (but the currency exchange sure isn't one of them right now!) including much better access to information, way lower prices (depending on where in Canada you're comparing), properties that aren't so overinflated and more ways to acquire properties.  There is some overhead but it's mostly some accounting and registration/filing fees once your US entities are set up.  A single flip would way more than cover any accounting fees you'll have.

IMO it'll be much easier to set up and operate US entities.  Note that you don't necessarily need to form your entity in the state that you want to do business in - you just need to register your entity in that state.  Don't forget to register your business in the state!

I've been flipping in the Chicago area since 2012 (but live in Toronto) and am picking up rentals now in addition to the flips.

As @Chad U. and @Roy N. mention, it's absolutely essential that you have cross-border specialists to help you set up your entities and get your accounting straight.

Good luck and let us know how it goes.

@Account Closed, I don't have any direct experience but the problem that I see is if the tank leaked you may have an environmental clean up on your hands (need to clean up the soil as well) - it may not be as "simple" as only removing the tank.  But you won't know until someone tests for a leak or you remove the tank to see under it.   I would make VERY sure of the total possible expense before proceeding - environmental cleanups can be extremely expensive.  It could kill any profit that were expecting from the flip. There must be others with experience on this topic on bp?

Congrats @Daniel I.

Keep all of us Chicago investors informed of your progress and adventure... and maybe more importantly on your buyer's list.  :)

Hi @Philip Bashaw

I've done 8 deals like that so it's definitely possible.  Experience will be necessary though, so if you have that (and a good deal!) then it'll probably work.  My first flip I did with my own money but since then I've used funding partners and/or private lenders. So 100% partner or private lender financing can definitely happen - particularly if you have a relationship where you can leverage someone already "knowing you".  For instance, someone you've worked with before or a family member.  Once you do a good job they will typically keep coming back for more.

Good luck and let us know how it goes.

Hi @Robin Secord  

Thanks for putting this together.  I was going to ask my virtual assistant to do this (to put the whole list together) to post it for everyone (and so I could keep growing my library) but thought I better check first to see if anyone had the same idea.  Sure enough - you did!

I would like to post the whole list (along with the # of mentions for each book).  If you're ok with it, I'll ask her to update your list from show 105 to 131 and then I'll post it (and of course give you props).  Please send me the list if you're ok with this plan

Thanks

Larry