All Forum Posts by: Luc Boiron

Welcome @Annie Caya

It is definitely possible to invest in the GTA and make good returns. I'm working on a flip now in north Brampton, so not far from you.

Good luck with your investing!

Originally posted by @Account Closed:

Luc, sounds good, but I my problem there is that I am now a full time student with not a lot of income so I'm afraid they wouldnt approve me?

 You might be right, but start by meeting with a good mortgage broker to review your options.

To me, it depends on any reserves you may have and your income. Is your income high enough to cover the expenses from this property for a while if something goes wrong? Or would you go bankrupt? If you have the ability to cover anything that comes up, and the property is a deal, I would go for it. Otherwise, no.

Alex Kouramanis I don't know that there is a good answer to this. Semi's are cheaper to buy, and will sell for less. That is attractive on both ends, because it can allow you to get in cheaper, and it allows your buyers to get into a neighbourhood cheaper than a detached house. In a nice neighbourhood, I think the difference between detached and semi would be wider. Once you pass a certain point, $1 or 2 million, buyers will want the detached house in most neighbourhoods. The houses on Bridle Path would not be worth nearly as much if they were semis. That being said, just look at comps. How much value can be added per dollar you spend on Reno? If a semi can be bought for $200k, you spend $50k on renos, and it sells for $300k, if you are buying a detached for $250k, putting $75k in, will it sell for $400k?

Welcome Nicol Jackson If your home is mostly paid off, a Home Equity Line Of Credit (HELOC) can be a good way to started flipping. You only pay interest on the amount outstanding, and can repay or borrow back out without additional costs.

Welcome @Ryan Davis. There's tons to learn on these forums.

Are you focusing on Barrie for your investments?

Originally posted by @Giuseppe Pavone:

First off, thanks @Matt Geerts.  Have you or anyone else ever taken action on these tax sales?  I did some brief googling and found that you need to complete your due diligence... obviously.  But can anyone comment on the average sale price?  Competition?  Etc.? 

On a slightly different note, during my search I came across Navtaj Chandhoke who apparently specializes in real estate investing (including tax sales).  I attended a trade show a couple of weeks back and he was speaking there.  Has anyone heard of him?  Any opinions? 

 I'd love more info on the tax sales as well.

As for Mr. Chandhoke, I haven't met him or gone to any of his events. Because of this, I will say that this is merely my opinion and I may very well be wrong. He seems like one of the "gurus" that as disliked on BP. He seems to mostly make money teaching about real estate. He has several large groups on Meetup.com, and he charges $50 to come to one of there basic events. I believe these are all upsells to his more expensive program. 

He has websites: http://www.flipping4profit.ca/ and http://www.worldwealthbuilders.com/

On these website he sells several classes. For example, you can do his Canadian Real Estate Investment Strategies Apprenticeship (CREISA). It is only $3,999.98 + HST, discounted from $4,998.0. $11,000 in value!

Also from this course page on his website, he says:

"you DO NOT need to have:

1. Good credit.
2. A full time job.
3. Large capital.
4. Any qualifications or educational background

All you need is the determination and desire to learn and achieve your goals. You will start using the knowledge you have obtained in this apprenticeship the minute you step out of the room."

I don't know if his classes are much value. They might be. I'm quite skeptical though.

Originally posted by @Account Closed:

Originally posted by @Thomas S.:

Professional tenants will offer to pay a year in advance and sign a long term lease, once in the unit they demand the prepayment back and will take the landlord to court to get it back. The landlord in that situation has no legal justification to keep the prepayment and is ordered to refund the money and have the tenant pay monthly.

You tried to say this in the other thread also. This is absolutely not true. There is no law that says this anywhere. If a tenant willingly signs up for a 1 year lease, and hands over 1 year of rent, then it is the landlord's to keep for the period of that 1 year. The only time the landlord would be required to give it back is if they evicted the tenant or otherwise could not provide the unit anymore. 

Last time you tried to say the landlord would owe the tenant interest too, did you forget about that part?

Let me explain how this would work in real life:
- Tenant takes landlord to court for no good reason
- Landlord shows signed one year lease that outlines a year of pre-payment
- Case dismissed

It's not advisable to take a year in advance, but it certainly isn't restricted either.

 You're half right, Ryan. You're also half wrong. This is another example where not all jurisdictions have the same laws, so tread carefully when making blanket statements as if they apply everywhere. It is illegal for a landlord in Ontario to request or require a tenant to pre-pay rent or pay anything more than first and last months rent. A common strategy among some bad tenants in Ontario would be to offer to pre-pay rent so that they can get the unit, then take the landlord to the Landlord Tenant Board ("LTB"), where the landlord would be forced to return the prepaid portion of rent.

Courts have now found that if the tenants are asked to pre-pay rent, it is illegal, but that if a tenant offers to pre-pay rent, the landlord can accept and it is not illegal. In this case, the tenant prepaid $90,000 for one year's rent, then asked the landlord for it back:

http://www.thestar.com/business/personal_finance/2...

Note also that Greg was right in terms of the interest - even when the tenant is the one who offers to pre-pay the rent, the landlord is required to pay interest on the pre-paid amount and the last month's rent.

I may be interested in attending as well.

I've been thinking about starting a meetup in Toronto as well, simply for investors to discuss what they are doing and to help one another. Many of the current ones seem like they're trying to pitch you something.

I once had a tenant pay me 6 month's rent upfront after getting her loan funds for school, "because if it's in my bank account I'll probably end up going shopping and spending it".

I was fine with that. She was a good tenant.

However, many problem tenants pay quite a bit ahead of time. Sometimes this is so the landlord does not come by often, as they have their money on time. I have read many stories where the tenants started a grow op in a rented house, and had prepaid rent. The same would be for dealing drugs, and as someone mentioned, renting it out on AirBnB may be a risk as well.

If everything checks out with the tenants and they have good guarantors, go for it. But keep an eye on the property, and check in regularly enough to know if something strange is going on.