Recent content by Matt Crowley

  1. Matt Crowley

    Buy-to-Let Landlords?

    I don't know what that means? Sounds like a British term. If buy and hold, then: - know the market in and out and know the buildings that are your competition, visit every one of them if you can - know your returns, cost of capital, and business plan (what you have to do to the building to...
  2. Matt Crowley

    Leases does not matter anymore according to the RTDRS

    Were they arguing the home was in disrepair, ongoing problems, property was not as it was represented? Did you agree to let them leave?
  3. Matt Crowley

    Rent to Own

    pros: very easy to put together a product and find customers. cons: charging 50%+ interest rates to those in most financially vulnerable position. general thoughts: rent to own should be illegal.
  4. Matt Crowley

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

    Glad to hear about your success. One caveat, is to be very concerned if you don't know what you are doing. Broken clock is right twice a day. Analysis paralysis is far superior to investing in something you haven't researched or don't understand. This "action first" mentality gets folks in...
  5. Matt Crowley

    CAP rate and financing CAP rate difference

    Financing cap rate could mean a higher cap rate that will be used by the lender than will be used to value and sell the asset - and it is something used by CMHC. Edmonton / Calgary very challenging to make sense of in-place assets. Most guys expanding portfolios in multi in Alberta are...
  6. Matt Crowley

    Tenant Screening Services

    tenantverification but they are only okay, I haven't tried anything better. They did not flag a potential tenant for using a fake middle name and missing fraud charges that we uncovered down the road that should have been in the report.
  7. Matt Crowley

    Rental suited house with pool:

    Bad idea to begin with. Unless there is a huge demand for pools, you will have higher expenses and lower yield on the property.
  8. Matt Crowley

    Broker Commission

    Buyers of course pay commission. If the seller received higher net proceeds then the buyer would pay a lower price.
  9. Matt Crowley

    Apartment building appreciation

    Excellent observation Willyboy. The reason it doesn't pencil is because multifamily is super-saturated in Edmonton and has been overbought by investors. There is virtually no value-add available on the market (what you refer to as requiring renovations) because investors are willing to pay the...
  10. Matt Crowley

    Monthly Sell-Through rates/ absorption rates

    Kindof my point is that all you are pricing in is land=location, so find the $PSF of land in the area + cost of the building and voila, easy valuation. My prediction is that in the next 5 years, someone is going to break open the MLS and it will be public data. When assets are selling for 10%...
  11. Matt Crowley

    Monthly Sell-Through rates/ absorption rates

    @Michel Lafleur great post. Any idea on the effect of absorption on the bid/ask spread? (ie. <20% absorption expect average of 10% variance from list, 50% absorption expect 3% from list) You seem like a numbers guy, what is the best neighbourhood index / valuation metrics that you use? Anything...
  12. Matt Crowley

    Monthly Sell-Through rates/ absorption rates

    @Michel Lafleur thanks for the explanation. Any chance you would share the sell-through analysis on one of your target neighbourhoods?
  13. Matt Crowley

    How many markets should you be in as a rookie?

    @Martin1968 Well, I invest my own money in these ventures as well. Eventually, I think you will find that you will need others capital to grow your business. I believe if you stay with REIN you will be introduced to the idea of "joint ventures" which is investing other people's money. For the...
  14. Matt Crowley

    How many markets should you be in as a rookie?

    @Martin1968 Small markets have very low liquidity and the smaller the markets you are in the lower your liquidity (Source). Small markets you should get a higher yield but its often not worth it because it is a lot more difficult to exit the position. My suggestion on market definition is...