All Forum Posts by: Roy Cleeves

@Michael C.

Hi Michael and Welcome!  I had a business partner who wanted to go after a tenant through the small claims process after a judgement was receieved.  Then Covid hit and it got delayed and we are now 2 years in waiting for this to go forward.  I like Chris Baxter's advice.  Let the collection agency do the work for you!  Best wishes

@Aria Sheikhtaheri 

Hi Aria. What you focus on will expand. So keep on learning of the different deal set ups that are possible. To name a few would be Joint Venture (JV) and private Money deals, 2nd Mortgage deals, Rent to Own, etc.

Good luck in your journey.

Try mortgage brokers rather than chartered banks.  They may have some lenders that would approve you. 

Good. Luck

I agree with Chris Baxter.  It is best to have a property manager and have them do it.  If you are your own property manager at this time then you will want to read up on what the rules are for serving a tenant notice and comply with it.  If you don't serve notice in the right form then it can be deemed that notice was not provided and then you have no case.

Best wishes

My pleasure!

Did you try the big banks - like TD insurance?

Hi Joe

You are correct.  All your friend has to do is look at a site and determine how he can add more units to it to increase the density.

For running the land numbers, he would need to figure out how many units he could build on the land and then determine his costs to build that.

And of course, figure out how to pay for it all.

Good luck

The 1% rule is great yet not available in Southern Ontario due to the high prices. So you are best to simply look for something that you can improve and turn into more units under the BRRR. And look for it to cashflow.

And they say don't use your own money so that you can maximize your cash on cash return and have money left over for any extra renovations or expenses that you did not expect.  Also, it allows you to do more than one at a time if you can use more of someone else's money and keep yours for downpayments.

Good luck.

You are best to have a lawyer draw up the contract and have him get his own lawyer so that he has independent legal advice.  
Ask the lawyer to include additional situations that may arise such as your rights to build on the land, severe the land and sell part of it, even sell all if it prior to the end of the 30 years, etc

And what happens if you cannot pay?

It is an amazing deal yet only if the terms are acceptable to you as well. 
you need to know all of the terms with all of the possible exits that you might need in the future. 

Clear legal agreements will help keep the family happy. 

Beat wishes 

Trust is the hardest part for sure.

It takes time to research the people that you are in business with.

It takes time to go to see the property and the progress yet worth the investment.

Glad you learned without breaking the bank.  Still a lot of stress for sure!

Best Wishes on your next deal!  And thank you for sharing these lessons leaned.