All Forum Posts by: Samuel Sedore

Good advice above, I would also reccommend choosing a diffeent vehicle than Vancouver condos. There are much better opportunities here unless it was an emotional or personal decision.

Welcome Derek!

I know a couple investors out in the area, and Iam sure some on BP will chime in!

If you would like to grab a coffee with an investor/realtor buddy of mine down there, let me know ill shoot ya his info. 

 Good tip I was thinking from strictly a buy and hold perspective! A little short sighted on my end.

This is probably the biggest debate going in Ontario. I would side with @Thomas S. there are lots of "grey" areas for rejecting a tenant. I would say I'am very inclined to keep advertising if I don't like a potential tenant for one reason or another. A colleague of mine from Alberta likes to call us as the "socialist republic of Ontario"

I screen the pants off of any potential tenant for any of my rentals or clients rentals. Would I take someone on government assistance or disability unlikely,because they don't fit my screening process,nothing to do with who they are. If they don't have great credit , can't supply proper pay stubs, references, maintain my property as in snow shoveling, etc. I'am not going to take them.  Although if someone applies and fits all this criteria yeah for sure ill take them on regardless of where they're from.

Is it discrimination because I also wouldn't take someone with all cash and little work history as they are likely a drug dealer?

Is this prejudice? I don't believe so, is it not more unfair for me to take on a un-satisfactory tenant strictly because they are experiencing an unfavorable situation and leave a hard working one with a good job and great references out in the cold.

If the the provincial government wanted landlords to take bigger risks on sub-par tenants they should make it easier for us to take legal recourse.

There my 2 cents now I await the angry response :-)

Hey Nathan

At this point in your investment career it just wouldn't make sense to incorporate unless you plan buying 3+ properties in your first year. Holding them as a renting corporation will mainly mitigate tax liability not personal.

With regards to limiting your personal mortgage liability, that just won't work. Financial institutions will require a personal guarantee on purchasing these properties, unless you have a huge down payment or established corporation making a profit. In the case of large downpayments you're not maximizing the returns.

I would recommend buying the first 1 or 2 properties under your personal name using a JV partnership with your intended partner. As you acquire more bite the bullet and pay the double land transfer tax if you start getting that far and incorporate.

I'am not against incorporating, it's just not nearly as effective here in in Canada as it is in the U.S. Litigation is much less common specifically with property owners and injuries.

Here is a good article laying out the benefits and drawbacks. Read it and come up with your own opinion on whats best for you.

http://bdoreinvestor.ca/2015/10/25/qa-when-do-i-mo...

I looked into and yes it is technically legal just very messy, as if the original deal does not close your on the hook.

The grey area for the realtor is that if we re list a property at a higher price, we clearly were not taking the first client best interest into consideration and trying to sell for top dollar.

 Hey Matt

Is Burlington a good area for flips?

I would argue that buy and hold is the most advantageous to both, considering it costs an investor 0$ to buy with a realtor and if business is consistent then you can usually work out a deal for having some costs covered.

 Yeah the main issue there is it is actually against our code of ethics to pay or remunerate someone that's not a licensed realtor to give us business directly. There are ways around it like "gifts or "consulting fees". Although if most realtors are already having success they would be un-likely to take on the extra risk.

Also listing a property that has not yet been closed on is a huge grey area, unless the realtor sells it as a pocket listing. Which might not result in top dollar.

Have you tried openly asking the bank or agent what their bottom dollar is and what they expect it to sell for? You won't get the real numbers but you can be close.

Also why did they reject the agreement? was it based on price or conditions, may be a good place to start.

I would call around and vet some realtors in your area. Buy one lunch and tell them your intentions up front, it takes us literally 5 minutes to set up an automated search with daily emails.

Don't expect them to vet every property and show you the best ones unless they know you're serious.