• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

  2. Forum *Official* Book Discussion
    Atomic Habits by James Clear

    The forum has voted to discuss this book. Grab it, discussion begins soon!
    Buy: Buy | Discuss: Atomic Habits, by James Clear (Review | Discuss)

Real Estate Just purchased my first Canadian investment property *tips, pics, and ama*

Discussion in 'Real Estate Investing' started by JDE, May 21, 2018.

  1. JDE
    Offline

    JDE Contributor

    Messages:
    5
    Likes Received:
    21
    Joined:
    Jul 11, 2017
    Gender:
    Male
    Location:
    Edmonton
    Rep Bank:
    $117
    A few months ago I purchased a 1/2 duplex in the Edmonton area, and it is now rented and cash-flowing every month. This is my first experience with anything remotely fastlane, and having someone else pay down a mortgage for me every month regardless of whether I am studying, working, or on vacation, is pretty damn cool!

    At a few points I almost dropped the idea of pursuing real estate because I heard a great deal of stories of people getting burned in Canadian property investing, so I wanted to share my experience for anyone who is considering taking the plunge, because it is absolutely doable, lots of fun, and a great learning experience.

    Here's a pic of the place -

    Property.jpg

    Tip 1 - Read these!
    -"More than Cashflow" by Julie Broad - this it the most realistic and thorough book I have found on Canadian real estate investing. Excellent resource, but almost deterred me from investing because it hits hard on every possible thing that can go wrong - my actual experience has been much more positive than that of the book.
    -"Secrets of the Canadian Real Estate Cycle" by Don R Campbell - this book is excellent for figuring out where to invest to maximize potential for appreciation. Here's a link to the market analysis I did for the current area I am investing in, based on the principles of the book - Alberta real estate in a slump? (Market analysis included)

    Tip 2 - Excel is your friend
    -Having a realistic view of the numbers behind every property is paramount. I have attached the spreadsheet I created, including the actual numbers for the above property I own (these are not theoretical - these numbers are literally what I am receiving/paying) - note the cashflow is relatively low, but this is after conservative numbers accounting for vacancy and maintenance - the primary money you will earn on residential real estate in Canada is through mortgage pay-down (for sure) and appreciation (hopefully!).

    Tip 3 - Use free local resources
    -http://myreinspace.com/ - this forum is the bible for Canadian real estate investing, you do not have to be a member to access loads of great content on the public forums. I also found my property manager, lawyer, and mortgage broker off of recommendations made on the public forums.

    Tip 4 - Don't worry if you feel like you don't know what you're doing
    -Most single family investors (in my area anyways) are novices that generally do not know what they are doing. This was encouraging for me, as I am 25 and had never purchased or leased a property prior to this investment property. Know that if you have taken the steps to read up beforehand, have some idea of what a process even is, and put in a decent amount of effort, you will already be miles ahead of most residential real estate investors. Over half of the properties in my area are marketed with blurry sideways cell phone pictures with awful lighting and no descriptions, often at rates that are completely unrealistic.

    Tip 5 - Know what your property will ACTUALLY rent for
    -This step is usually the one that causes the most grief for residential real estate investors. If you look on kijiji or similar websites you will see what people want to rent their properties for in a given area. This can be misleading, because people will often try and rent their property for far more than it is worth, for example:

    Posted.png

    This property has been listed on the website rentfaster.ca for upwards of 6 months, because no one will pay that much for that property. This is why you must be very careful, because if you have a property similar to this one, you can't expect it will rent for $1950, or whatever else people are advertising.

    So how do you know what your property will rent for? A much better way is to create a search on rentfaster for properties similar to the one you are considering buying, in your given area (ie 3 bedroom, 2 bathroom, 1/2 duplexes in your area), and then check it every few days. Rentfaster.ca has an excellent feature that allows you to see what properties actually rented for for a few days, before taking the listing down. Keeping track of rental rates this way for a month or so in your target area will give you a much better idea of what your property will go for. For example, the following property ACTUALLY rented for $1950.

    Rented.png

    I hope some of these tips will be helpful for anyone considering getting into real estate, and feel free to ask me anything because there's a huge amount I haven't covered!
     

    Attached Files:

  2. MJ DeMarco
    Offline

    MJ DeMarco Raving Lunatic Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    27,160
    Likes Received:
    86,415
    Joined:
    Jul 23, 2007
    Gender:
    Male
    Location:
    Phoenix, AZ
    Rep Bank:
    $365,242
    Admin Post
    Congrats and thanks for sharing!
     
    DakonSG, JDE and Gunther Herzog like this.
  3. LamboKing
    Offline

    LamboKing Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

    Messages:
    93
    Likes Received:
    113
    Joined:
    Jul 1, 2016
    Gender:
    Male
    Location:
    Houston
    Rep Bank:
    $515
    Amazing! I'm in the process of trying to do the same in the US, would love to hear any other tips, or details from your first duplex?

    BTW: Thanks for the spreadsheet!
     
    JDE likes this.
  4. JDE
    Offline

    JDE Contributor

    Messages:
    5
    Likes Received:
    21
    Joined:
    Jul 11, 2017
    Gender:
    Male
    Location:
    Edmonton
    Rep Bank:
    $117
    Thanks man I appreciate it! As for purchasing in the US the details and financing tends to be much different than in Canada, so I don't have a great deal of specific advice, but the best resource I could recommend would be biggerpockets.com, which is a phenomenal website with lots of American real estate investors posting regularly. Also there's a lot of location specific discussion here where you can check other investors thoughts on the market in your given area, or even meet up with locals.

    Personally the best part of biggerpockets that I've found is the podcast - they have hundreds of interviews with people that have made it happen in real estate and know what they're talking about. There were a few weeks for me where every time I went for a run I'd listen to another interview. It was a good mindset thing for me because since I didn't personally know anyone who went and bought houses as investments, listening to people chatting about it all the time made it seem like a more normal and attainable thing to do.
     
    Kalps likes this.
  5. Worldisyours
    Offline

    Worldisyours Bronze Contributor

    Messages:
    249
    Likes Received:
    205
    Joined:
    Oct 20, 2013
    Rep Bank:
    $1,120
    I am looking to purchase my first property in canada as a foreigner.
    What do you think of the Vancouver area.
    In April 2018, the changed the laws for lending, they are a bit stricter now. And unfortunately they have put a tax on foreign buyer at 20 percent. But some provinces are exempt. it used to be if you just had 35 percent. Up front, You have the lending no questions asked.
     
    Kid and JDE like this.
  6. JDE
    Offline

    JDE Contributor

    Messages:
    5
    Likes Received:
    21
    Joined:
    Jul 11, 2017
    Gender:
    Male
    Location:
    Edmonton
    Rep Bank:
    $117
    Hey thanks for the question, glad you're looking at getting into the real estate game! I can't speak for the details of the economics in the Vancouver area, but like you mentioned there is a great deal of variability in the market there right now, so I would be cautious. Quick changes in house prices provide opportunity, but more risk as well.

    http://www.rbc.com/economics/economic-reports/pdf/canadian-housing/TREB_REBGV_results_may2018.pdf

    If this is your first property in Canada and you are a foreigner metro Vancouver will probably be one of the most difficult areas to find properties that will work as investments. This is not to say it is impossible, because there are always deals to be had, but investing in other parts of BC or even other provinces would leave you with a greater safety margin, especially early on. I assume you are living in Vancouver right now, in which case you would have to weigh the home-field advantage of knowing the local area/market against fighting an uphill battle with the additional tax, and already high prices. Also, if you are in Vancouver I would recommend checking out local meetups, as there are many to choose from and there are likely others in a similar situation, and there are always creative solutions if you are determined enough.

    Real Estate Investors Meetups in Vancouver - Meetup
     
    Kid likes this.
  7. Ricoboxing
    Offline

    Ricoboxing Contributor

    Messages:
    31
    Likes Received:
    88
    Joined:
    Oct 30, 2014
    Gender:
    Male
    Location:
    Canada
    Rep Bank:
    $558
    Thanks for posting this. As I'm getting pretty close to paying off my mortgage on my primary residence, I want to start investing in another property but don't know anything about RE investing yet.
     
    JDE likes this.
  8. Elif
    Offline

    Elif New Contributor

    Messages:
    62
    Likes Received:
    17
    Joined:
    Jun 25, 2018
    Gender:
    Female
    Rep Bank:
    $96
    Amazing! I'm in the process of trying to do the same in the US, would love to hear any other tips, or details from your first duplex?
     
  9. Worldisyours
    Offline

    Worldisyours Bronze Contributor

    Messages:
    249
    Likes Received:
    205
    Joined:
    Oct 20, 2013
    Rep Bank:
    $1,120
    Hey just read this.. yea its tricky here. Montreal is the only place the works for me. Uve decided to get another property in Europe
     
  10. EvanOkanagan
    Offline

    EvanOkanagan Gold Contributor FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    447
    Likes Received:
    1,626
    Joined:
    Aug 2, 2013
    Gender:
    Male
    Rep Bank:
    $11,640
    Congrats on the first purchase!

    Fellow Canadian RE investor (from BC) here. Appreciate the book recommendation--it's hard to find good Canadian based Real Estate books. I just picked the book up yesterday and a good way through it.

    Seems like you're on the right path with what you're reading. You're a REIN member I'm guessing? We just launched a REIN chapter in Kelowna, BC and it's an amazing resource of info.

    Are you looking at picking anything else up this year?

    P.S. Love the spreadsheet. Have a look at the attachment, this is the program I use for calculating returns called Property Evaluator. It's an app (only compatible with Apple products and I think it's around $70-$100). You can add all your properties in here to track the numbers and also anytime you want to quickly generate the returns on properties you can throw in the numbers and it'll generate these PDF's. I'm a Realtor and use it anytime I show clients the return on their potential purchases.
     

    Attached Files:

    JDE likes this.
  11. KennyAronson
    Offline

    KennyAronson Contributor

    Messages:
    15
    Likes Received:
    21
    Joined:
    Jan 10, 2019
    Gender:
    Male
    Rep Bank:
    $107
    Thank you so much for the wonderful guidance.

    My plan is to get into real estate by the end of this year.

    There's so much information out there, but I can't wait to start getting my feet wet.
     
    JDE likes this.
  12. JDE
    Offline

    JDE Contributor

    Messages:
    5
    Likes Received:
    21
    Joined:
    Jul 11, 2017
    Gender:
    Male
    Location:
    Edmonton
    Rep Bank:
    $117
    Thanks I really appreciate it man! Ya the fastlane material is fantastic for more big picture / mindset stuff whereas I have used REIN for more local and specific to Canada real estate information and it's great.

    This year I'm looking into purchasing a mobile home park in BC so I've been on a reading and researching marathon for the last little while. While there's very little Canada specific residential investing material out there there's essentially zero Canada specific mobile home stuff so it's been uphill so far. To be optimistic it's a great entry barrier though haha and there are relatively few people involved in the space.

    I appreciate the app suggestion it looks great, looks like it works for multifamily as well and keeps things streamlined which would be super helpful as I've found that my spreadsheets are getting a bit out of hand!
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page