I'm putting in my 1st offer on an investment property.
 

It's a triplex and with worked out $700.00 a month cash flow. Which is all right for a first!

Not bad, cash flow isn't everything though and it always depends on the amount invested at first as well as a shitload of other factors.

I bought a cottage and flipped it 3 months later for some nice profit, now i'm looking at getting maybe a 6 or 8 unit building or something like that and get it professionnaly managed.

I have a wicked excel sheet measuring cash flow, actualised value, ROI and so on, too bad it's in french tho.

thats good, real estate is a great investment

Got more detailos on the property? In what area? Price, leverage, etc.<

I was also wondering that, can I as a canadian get a property in the US using a US mortgage broker with nothing more as the collateral than the building itself?

Because out here you can't get more than 75% loaned unless you live in it and it's 4 units or less, which is retarded, i'd rather buy more properties with the same amount of $$$

I plan on having 5 homes by the end of the year I have 1 in Kentucky right now but I'll be getting a package deal on a few run down homes that i already have a crew ready to bring them up to code. Should be fun

Congrats , and dont get me wrong but be prepaired for tenants Not paying on time, where you have to cover shortfalls for unexpected repairs etc. tHAT 700 can dissapear awfully quickly. Been there done that and still doing it :thumbsup

If you're looking to invest in the U.S you should check out fannieMae.com, FredieMac.com, HUD and VA. It's possible 4 a Canadian to do this. My Mentor Buys in the U.S. And We plan to as well(We're Canadian).

We've factored about $80.00 a month maintainance and the books say 5% Vacancy rate a year. But ya, it should be fun. Hopely our screaning prosess will clear out must of the shitty tennants.

Thing is it's so friggin vast i wouldn't know which areas are good and what not.

Like I said best of luck and congrats ! Its a thrill to own, and it can be a roller coaster ride .......Some tenants can look super on paper and be the bigges deadbeats going :2 cents: They(tenants) figure youre rich and youre the bank, they dont realise all the payments you have to make. I HATE tenants, that is why I have a managemnet co looking after some of my properties :winkwink:

How much are those companies tkaing? I'm looking into getting them managed too, I hate people in general

get a small reliable company to manage, fees vary on one duplex I own its only 65 per mo.........cheap !! no mess no fuss they handle everything ..... I :thumbsup even forget sometimes I own the place, just get the statements once a month

That's exactly what i want!!!
Thanks!

i love real estate

Just remember, that 80 a month isn't going to do squat if major things need fixing. With my first invest. property I was rather niave about things.

And a management company is the way to go, I agree. I have learned that the smaller the company, the better the price and attention. And plus, your sending out good energy by helping out the smaller company.

Congrats on your new property....and start investing in asprin (just kidding, I am sure it will go well).

can everyone in this thread give me their contact info i want to chat with you bout some things related to investment props

I own a property management company, if anyone in the GTA needs help with renting out/maintaining properties let me know :)

DH

make sure you check everything out

i bought my last property $20,000 less than appraised price because it had a flat roof, no general insurance company would underwrite it at an affordable rate, except the one that i use

also use the ROI appraisal rather than the property appraisal

poor (white) working people are very reliable tenants, they don't tear up the property if they don't have kids, and single family homes are very good investments where you can buy for 80-100 X monthly rent.

you can't do that in the west, but you can do it in places like KY, with high leverage.

you're on the right track for big net worth in 10 years as you refinance, or use buy on contract, sell on contract wraparounds, double escrows, etc.

once you get into it get your broker's license and join the mls and make offers on everything based on low d.p. can cash flow.

what are your opinions on unverifiable income loans

if the location is great, then hit it!

hmmm 80.00 a month on a triplex? I think your numbers are off man.
Been doing rentals for some time now. Even with great tennets our expenses not including property taxes have ussually been 10-15% of the rent per month when averaged out.
Keep in mind one eviction can run you into the thousands, not including any damages. Plus generally if it goes that far you will not recover much if any of the judgement.
Also keep in mind if you go the LLC or corp route, you have to use a lawyer for fucking everything, you can not even represent yourself in small claims court or send a friggen pay or quit notice.

As for those saying depends on the location. Do not buy into that unless you plan on flipping the property in the near future. If your interested in rental income, than location is not as important as long as there is a good amount of housing needs.

On another note if your getting into this for the first time. Do not overlook mobile home properties. If you can purchase the land and rent the mobile you will recoup your investment a hell of alot faster.
Example using rough math:
Mobile cost: 15,000.00 (not including land value)
Average rent (using my area) 750.00
Monthly rate of return before costs: 5%

If I wanted same rate of return, I would need to rent a 100,000 house (no land value) for 5,000 a month.

Boot them out at Christmas time if they are late once

At times I wish it was that easy.

Fuck i just incorporated another corp just for this
But it's better than investing after paying myself dividends from the other company instead as i'd be taxed like a mofo.

Yeah, its all part of maintaing that viel. If you skirt the rules it is alot easier to pierce and have it seen just as a tax shelter and when that happens your fucked.
I would assume it is the same everywhere, but I am speaking from a California perspective.

It's not a tax shelter as eventually i'll have to pay taxes when I pay myself dividends. Also banks won't loan your company money unless it's sole purpose is real estate, which my other business isn't (internet marketing obviously)
So company A would basically pay dividends to company B and since that money's already been taxed on the corporate level there's no need to tax again. I can invest the remaining 100k or pay myself and only have 60k to invest.
Either way, i'm the sole owner of the shares.

:thumbsup

arent you multi talented :winkwink: :thumbsup