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What is my next move?

24024

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While I have built, bought and sold a few properties I don't consider myself a real estate investor. Having said that, I may be approaching a cross roads.

I have a 100 ac farm on the edge of Calgary and am working with a potential buyer on a sale. After paying back both the 1st and 2nd mortgage, personal debt and capital gains, I'll be left with just over $4,000,000.

I plan to spend $7-800,000 on a house for my family. What now?

I have a background in both commercial and residential construction.

Do I buy some land In Calgary and wait for the economy to improve and build a house or 2, maybe a commercial building?

Or do I buy a smaller residential rental building?

Or do I go in an entirely different direction?

The deal is not signed yet and for that matter may not happen at all right now but I'm trying to position myself accordingly
if/when it does happen.

Any comments or advice would be greatly appreciated.
 

Thomas Beyer

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Buy a new Tesla, BMW or Mercedes, keeping it below $120,000. Then take a 3-4 week vacation somewhere nice.

Then figure out what makes you tick. Are you looking for income ? Or net worth buildup ? Development is very lucrative but skill intensive and far more risky than buying an existing asset.

Do you need cash flow to live on ? Or do you have other income so that the reliant cash can be invested with little or no income ? Have you owned other real estate, besides constructing it ? If so, what did you enjoy ? What did you not enjoy ? Building in-fills works, as does THs or small condo buildings, and with $3M cash plus a loan of a similar nature you can make $500,000 a year easily if you chose to.

Have you written your own eulogy ? What do you want to be remembered for ? Time to reflect on that while driving the new car and sitting on the beach somewhere ( before it gets too boring ) !
 

MonicaPaslawski

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Sounds like a nice problem to have - you can just go farming for awhile and then you won't have that nice problem . . . Sorry - couldn't help myself.
 

ChrisDavies

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There's some broader questions around your situation too like age, family and community and their needs. You've got a fantastic opportunity to go in new directions and also to help develop those around you.

If it were me I'd buy another farm ;)
 

24024

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Buy a new Tesla, BMW or Mercedes, keeping it below $120,000. Then take a 3-4 week vacation somewhere nice.

Then figure out what makes you tick. Are you looking for income ? Or net worth buildup ? Development is very lucrative but skill intensive and far more risky than buying an existing asset.

Do you need cash flow to live on ? Or do you have other income so that the reliant cash can be invested with little or no income ? Have you owned other real estate, besides constructing it ? If so, what did you enjoy ? What did you not enjoy ? Building in-fills works, as does THs or small condo buildings, and with $3M cash plus a loan of a similar nature you can make $500,000 a year easily if you chose to.

Have you written your own eulogy ? What do you want to be remembered for ? Time to reflect on that while driving the new car and sitting on the beach somewhere ( before it gets too boring ) !

Wow! Mercedes? Not the answer I was expecting.

Thomas, thanks for the reply, there are some points there that never entered my mind.

I am currently in the trades and would like to get out as my body is feeling the years of abuse more and more these days.
I'm 43 years old and would like to keep busy with "projects" and keep some active income rolling in but would also like to put some money possibly into a small apartment building or some land close to Calgary(after all, that's what got me into this position).
As far as what makes me tick, I'm a go getter, I like to find deals and seem to have a good nose for finding value in things that others may not see. If I had the funds to take advantage of a few of the other deals I have found, I probably wouldn't need the income, but that doesn't matter right now.

And the eulogy part I've only briefly thought about but will definitely give it some more thought.

Monica, I know about the whole farming business, as I live in a rural area, most of my neighbors farm so yeah...I've worked too hard in my life to get into the money pit that farming can be.

Thanks again for the replies!
 
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Tina Myrvang

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Real estate investing can be a fantastic strategy for long term sustainable wealth into retirement. We have an outstanding weekend event coming up that has been a catalyst for so many successful real estate investors. The ACRE (Authentic Canadian Real Estate) Program takes you step by step through a proven system for buying investment real estate from the fundamentals of finding the area where you want to invest, to sourcing the property, getting financing, buying the property and managing the property for positive cash flow.

The next event is in Calgary, so not too far from you. The evening of March 31 is our Member meeting which all participants are welcome and encouraged to attend, and then the ACRE program continues all day April 1 and April 2. Here is a link for more information, schedule and agenda: http://info.reincanada.com/acre-calgary-2017
 

Brad Redekopp

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Feb 22, 2015
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Buy a new Tesla, BMW or Mercedes, keeping it below $120,000. Then take a 3-4 week vacation somewhere nice.

Then figure out what makes you tick. Are you looking for income ? Or net worth buildup ? Development is very lucrative but skill intensive and far more risky than buying an existing asset.

Do you need cash flow to live on ? Or do you have other income so that the reliant cash can be invested with little or no income ? Have you owned other real estate, besides constructing it ? If so, what did you enjoy ? What did you not enjoy ? Building in-fills works, as does THs or small condo buildings, and with $3M cash plus a loan of a similar nature you can make $500,000 a year easily if you chose to.

Have you written your own eulogy ? What do you want to be remembered for ? Time to reflect on that while driving the new car and sitting on the beach somewhere ( before it gets too boring ) !

Well said
 

24024

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Apr 30, 2015
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Real estate investing can be a fantastic strategy for long term sustainable wealth into retirement. We have an outstanding weekend event coming up that has been a catalyst for so many successful real estate investors. The ACRE (Authentic Canadian Real Estate) Program takes you step by step through a proven system for buying investment real estate from the fundamentals of finding the area where you want to invest, to sourcing the property, getting financing, buying the property and managing the property for positive cash flow.

The next event is in Calgary, so not too far from you. The evening of March 31 is our Member meeting which all participants are welcome and encouraged to attend, and then the ACRE program continues all day April 1 and April 2. Here is a link for more information, schedule and agenda: http://info.reincanada.com/acre-calgary-2017

I read the ACRE book last year while recovering from surgery. I found the book very interesting, informative and an easy read. I'm happy I bought the book and would recommend it to anyone interested in getting into real estate investing.

I would like to attend a few ACRE events to get more information on local markets and strategies. Unfortunately, I'm working out of town that week but will definitely plan on making it to a few events.
 

Thomas Beyer

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Yes upgrade the vehicle !!

Celebrate successes !

With a development and blue collar background I'd look into solar panels and install as a new biz opp in AB or constructing smaller dwellings

MF or commercial an option

Many options .. incl work / retire / own an old asset in AZ or CA or FL or TX and go there on the winter for 3-5 month and fix it up, then sell it and repeat
 
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