All Forum Posts by: Mazen Al Ashkar

Hello Kate,

1) are you a us citizen or canadian? important to look at double taxation, might want to create a partnership since it's recognized in both countries

2) are you buying these properties cash or financing through the banks? Bank probably won't allow you to do this since it's your first property and not enough collateral. 

3) What's your primary source of income? Do you work for a company? i.e. you have T4s? or self employed? 

CHeers

Congrats @Karam A Tascoe. Very good job! 

I have properties in Columbus, GA and Goose Creek, SC that are coming out of foreclosure soon. Send me a message if you're interested.

Cheers

Hi @Paulo Ascurra, 

Even though i have so much respect for @Guillaume D. and in general agree with what he mentioned, i do have somewhat a different suggestion. I find alot of people getting de-motivated too quickly because the "Numbers don't work". From my personal experience, i think you can still find good deals on the open market if you're willing to spend time on the deal. 

For example, a lot of sellers are still extremely motivated by the strong demand we've had in Montreal but if you're someone with a bit of patience and people skills, you can still close on a winning deal if you're taking the time to educate the sellers on where the market is now and how the numbers have to make some sense before placing an offer. 

You can obviously do this with the agent and without the agent. I've been having alot of success by targeting agents alone (Motivates them to close without having to split the commission) and also 4plex and 5plexes who are owner occupied. I always try to see the apartment where the owner lives and gives me a chance to say a few messages that i want to before i place an offer. 

Anyways, hope this helps a bit. I just wanted to make sure that you don't just pass on deals because you're sitting behind a laptop and only going after the deals that have the right numbers, because i can almost guarantee that you won't find it 

Cheers

@Natasha Laird Hi Natasha, yes you can do both HELOC or cash our Refi. What kind of loans do you have on your 5 properties? And what kind of prepayment penalties? This can you help you make the best decision. I would connect with a mortgage broker if i were you and bundle all 5 properties under one lender if due for refinance. Or that same lender can give you a HELOC using equity from the 5 properties (assuming they have good seasoning). I invest in Notes in the US and buy and hold in Montreal so not sure about the market in BC. However, shoot me a message if you need any additional help. Cheers

Hello Mor, 

Welcome to BP. Distressed assets are extremely hard to find in Canada. It's much different than the US. Your other point about the counter offer, i think you should keep a few things in mind: 

 Montreal is in a massive seller's market right now. Especially Condos which have been up 14% for the past year and active listings keep going down which makes it harder to find assets in general in Montreal. 

I don't want to demotivate you but instead of low balling offers especially in a sellers market, try to do your numbers properly using either the BP calculator or other calculators out there. 

Hope this helps.

Great job @Guillaume D. Very inspiring and very happy for you!

Originally posted by @Account Closed:

Originally posted by @Robert Ganzhorn:

These are pretty typical numbers in Toronto even with the interest rates we have now. It unusual to have a condo purchase cash flow unless the down payment is ridiculously large. There was an article in April about almost half of all condo investors not being able to cover their mortgage with the rent they are getting.

https://betterdwelling.com/cibc-over-44-of-toronto...

Having been an auditor in a previous career, I've never been a fan of them especially later in their life cycle.

I agree with Matt in that the cash flow properties are outside of the GTA. Most seem to prefer Southwest Ontario but there are good opportunities east of the GTA as well.

I don't see the situation in the GTA getting any better either. Housing shortage, stress test and higher interest rates are a toxic combo. Will be many years befor the housing shortage mess is cleared up if at all.

 A local investor I know has 1 unit in prestigious towers in Montreal. He pre-bought the 2nd and 2rd phases already. His rental income does not cover the expenses of running the property. His sole saving grace is the hope the appreciation kicks in to high gear and the principal payback. He has been forced to resort to Short term rentals in order to cover his mortgage. It's nuts why would anyone invest in these is beyond me. 

Yup, actually my cousin invested in one of those towers for negative cashflow. Gained 0% appreciation since 2012 (pre-construction purchase). it's a big gamle.

@Jay Hinrichs

I only do notes in the US and i buy MFR in Montreal, and no i never looked into Portfolio interest...i just googled it; i'm not sure if i'm reading this right, but is it a tax exemption on interest income received for foreign investors???? lol

Hi @Steve A.

I agree with @Jay Hinrichs. 

Performing notes by yourself

NPN as a JV partner with someone experienced.

Goodluck!

Hey guys,

Just in case anyone here is interested in a fix and flip, let me know. We foreclosed on a property in Danville that needs work. 

Cheers