All Forum Posts by: Maz Pardhan

Quote from @Michael Smythe:

@Maz Pardhan thanks for your info about properties in Detroit only "taking 5 weeks to rent at top dollar."

What data do you have to support your opinion please?

Here's what we base what we tell our clients on: a graph showing it's taking 36% longer to place tenants than it did 2 years ago:

The data is based on my rentals being posted and rented within 4-5 weeks. Your data may be valid for you depending on where you post, what the properties are like, what rents you are trying to obtain, the time you react and close on a potential tenant etc.. If you are taking 42 days to place a tenant, that's far too long based on the volume and interest i've seen.

Quote from @Sara Emmanuelle Dube:

Hi Michael, Ive just bought 2 duplexes in Detroit and im going to post here how its going on a more regular basis. You can follow along. 

One thing I realize now is that i received the tenant rolls with names addresses etc so I have tenants in place, with leases however only 1 tenant out of 4 is actually paying. The others feel like they were props temporarily put in place to show "cash flow". 

The 2 side by side duplexes were purchased in February 2024.  March we signed with a Property Manager and May 21st, today,  they are still there enjoying free rent. 

Something to consider when thinking of cash flow....

We are also renovating the units to 1) bring them up to date to get the Detroit’s Rental Property Certificate of Compliance, and 2) Raise the rent. That process has been a struggle. It is very hard to get a bid from contractors, according to PM. Just a little work has been done.

Have a great day!

Sara

 I've seen this happen several times as well. It's better to have empty units if possible, that way you can decide who to place after vetting them. You can also ensure you have market rates. there is such a strong demand for housing in Detroit, units are renting at top dollar in less than 5 weeks.

Quote from @Maz Pardhan:

Hi Shirley, fellow Vancouverite here, active investor & coach. Living in Vancouver, you already know how expensive it is to invest here and how it’s ultimately a losing proposition. On your investing journey make sure you open your mind to investing in remote locations whether in Canada (not many places left) or better yet in certain US markets. Happy to have a chat or even grab a coffee it makes sense. Good luck on your journey!

Thanks Shirley, lots of learning, whether it was corp structure for Canadians, taxation, how to purchase, financing , rehab…. The list goes on. I’ve learned a lot of the last several years. Not difficult, just different and critical. 

Hi @Shi Esguerra congratulations on starting your real estate journey. You mentioned you don't have the 20% down, that may be true for Texas, but there are plenty of other markets that are far less pricey and they are in fact better investments. You can still tap into equity of your principle residence needed through a second mortgage or in some cases financing strictly based on the investment property itself. You can buy single family homes in the Midwest for less than a $100k and have them producing excellent rents. Don't be afraid to invest out of state. Look for good business partners who can guide you to these deals and don't try to take the burden on by yourself. If you need references to lenders, or business partners to help, feel free to reach out.

Quote from @Cecilia Sharpe:

I am a beginner and learning about seller/owner financing and I am in Canada. Before I enroll in courses or bootcamps, I am wondering if they are more geared towards US or if can be applied in Canada too?

 Hi Cecillia, VTB or seller financing can be done in Canada, however most sellers don't understand it and why its beneficial to them. #1 - you have to explain what it is like  : "Hey i see this is your vacation property or rental property, how would you like to reduce your capital gains tax?  "

or "how would you like to make x% return on your money, beats a gic right?"

Quote from @Amy Kim:

Hello folks!

I have a condo in Vancouver, Canada.

It cashflows CAD $13/month.

I know.. sucks..

I bought it $373k in 2018, and now similar units are sold for $450k. 

The tenants are awesome.

But mortgage maturity date is coming this June. Now, our rate is 3.5% but I'm not sure what rate I would get then. (Canada has a bit different mortgage system. We chose 2 year renewal thing..)

I think we need to sell. But my husbi wants to keep it as he thinks it'd appreciate gradually. 

Any recommendations please..

If we keep the condo, then we would need to pay mortgage as it minus cashflow...

Hi Amy, is the condo in Vancouver or Surrey. Based on the price point it looks like Surrey. Did you end up doing anything?  I live the greater Vancouver area and am seeing a lot of people selling as their investments turn into negative cashflow situations. The good news is that those properties are the ones that are selling. I have been advising friends and family against investing here due to high costs and no cashflow for years. My focus has been on investing in the US where the cashflow is real and consistent. Happy to help if you need.

Congratulations on looking beyond where you live. I've found the best deals are rarely where you are especially on the west coast. Since the numbers may be very similar in these markets its important to have a few conversations with people on the ground that you can rely on. That could be  realtors,   PM co's or turnkey providers who can bring you all of that. If you can get comfortable with the team and can rely on them, this could save you headaches and costs over the long term. I've had success in Detroit, you should add it to the list. 

Quote from @Alejandro Martinez:

Quote from @Ko Kashiwagi:

Hi Alejandro,

Welcome to the community! If you do not have a US citizenship/green card, there are some complications investing especially financing so it's really important to do research. It would benefit a lot if you are able to obtain US credit, US LLC and US Bank Account. Best of luck!

Thank you very much! Yes, that's one of the motivations that bring us to BP we want to start with the right foot!

Fellow Canadian here, If you're a Canadian do not use an LLC, Rev Canada will not recognize it.You also don't need a green card or visa. Its actually not complicated at all. Speak to an accountant who works in both countries in order to establish the entity for you. As a Canadian i've had to navigate this along with finding the right market, property and financing. happy to introduce you to resources if you need.

Quote from @Ty M.:

Hello looking to break into the US market in 2024. I have 1 unit in Toronto Canada and want to look for opportunities across the border. If any one has experience with this it would help (Mainly the lending process) Toronto is a vibrant city with lots of renters but it’s also expensive and renters have more rights than landlords. 

 Hey Ty, Fellow Canadian with Ontario properties. How did the investing go?   Have you managed to break into the US market?  I did this several years ago in order to diversify out of Ontario.The LTB issues scared me to the point of liquidating properties. I used a team of from a turnkey property company which eliminated the need from being on the ground. Have you considered this route?

Quote from @David Swanepoel:

Hello Maz, thank you for your response. Yes, unfortunately, the climate for real estate investments in the UK is on the ropes. However, there are opportunities to be found in amongst the mayhem. I haven't considered investing outside of the UK at this moment in time.

 I'm a Canadian investor and like you have been experiencing the same issues in Ontario, I've started investing in the US where the tax climate is better, borrowing is much easier and evicting non-paying tenants is much more fair. If you need help exploring, happy to help. Good luck!