Property - Recent Threads

Limited Partnership Question

Drichardson72 — Wed, 08 May 2013 16:08:52 GMT

Hello,

I've been invited to participate in a Limited Partnership in what looks like a great investment opportunity in McKenzie BC.

The general partners have an accepted offer on a mid-size town house complex that is under-valued and under-rented. The sister townhouse complex has a wait list for tenants so our belief is with some TLC rents can be raised and vacancy can be reduced significantly.

We have a plan to send a local construction team there to renovate the units/building for two month to minimize costs and risks of using McKenzie trades.

The Partnership will consist of 100 LP Units valued at $10,000 each and upon crunching the numbers I'm confident in a 12% - 15% return.

So my question, for those experienced in A) This area, and B) Limited partnerships is this:

Are there any risks / pitfalls I need to consider over an above the standard diligence and obtaining independent legal advice? Of course, the most important factor is the degree to which I trust the general partners and I know them well and trust them completely.

Appreciate any thoughts or tidbits of advice our senior REIN members may have to offer. Part of my interest in getting involved is to learn this system.

Thanks in advance!

Realtor in Vernon BC

deeslater — Wed, 08 May 2013 01:31:19 GMT

Looking for a realtor based in Vernon BC, who is also a member of REIN. Does anyone have a contact name. Needing a realtor who is experienced in real estate investing.
Thank you

Seek ideas of offer options

angelapeng — Tue, 07 May 2013 21:37:43 GMT

We are in the process of making an offer to a property fits our criteria. Here is the basic information.

Seller bought the property last Sept. at $340K, 5% downpayment, I expect that current mortgage will be around $320K (95% LTV plus insurance cost for high ratio mortgage). We offered $315K, was rejected. According to the listing agent, the seller is considering the foreclosue, handing over the property back to the bank. (He is back to Ukrainie after living in Vancouver for over 8 years)

The seller's position is either to foreclose the property, or writing a cheque to bank at closing at $10-20K.

He is very motivated to sell, we are motivated to purchase if the number works. I am posting here to seek whether you have some ideas in terms of creative options of offer. I have considered VTB, rent to own, equity JV, but just do not see it work.

Is there any other option?

Thanks,

Angela

Developer asks for $6000 assignment fee, do we have better options?

angelapeng — Wed, 01 May 2013 20:53:01 GMT

Need your brain and thoughts regarding the following case.

We have a pre-sale condo for closing this summer. We are in the process of getting mortgage application now. The property was purchased 3 years ago by three investors. At the time of signing the purchase agreement, only one investor's name was on it since we did not know who will qualify for financing 3 years ago.

We did have an addendum indicating the clause as below:

Purchaser will have the right to add numbered company where the purchaser is a shareholder and/or add two other investors (with their names on the agreement, the 20% deposit was paid equally by three investors with documents as evidence) at no additional cost.

Assignment and consent will be at the developer's discretion and completed on documents provided by the vendor.

The situation right now is the investor whose name on the agreement does not qualify for financing, and it has to be changed to another investor (one of the three investor)for financing purpose. However, the developer does not agree to delete the original purchaser's name, and they suggest to sign an assignment consent to change the name so that they can justify to charge the assignment fee about $6K.

Our arguments are:

1) It is not an assignment, purely a name change
2) No financial damage to the developer.
3) If it is an assignment, we shall be able to assign the property at the market price which is 12% higher than the purchase price based on the similar properties on the market promoted by the developer now. If it is the case, we shall be able to get higher mortgage, and get some money back at closing time.

We are still negotiating with the developer now, do you have any other good points to share?

Thanks,

Angela

NEED ADVISE - CONDO DOCUMENTS

RStJean — Tue, 30 Apr 2013 21:31:24 GMT

Hello,

I am currently at the point of reviewing Condo Documents in a unit I am trying to remove the conditions on. This is my first investment property and am looking for alittle advice on how a seasoned invester would proceed.

I have found an Apartment style unit in Red Deer that after doing the math will cash flow just shy of $200 / month. The unit is in good condition with recent renovations. The building report shows the building built in the late 70's is also in good shape. Recently fully renovated (ext. the interior which is needed) new siding, roof, boiler, windows, doors, etc. Under the circumstance (explained below) the management company and board has done a fairly good job managing the corporation.....BUT....

Currently one owner owns 40% of the units and is late on Condo Fee's to a value of approx. $35,000. Currently the board has filed a court order to receive the rents directly. Because not all Condo dues are being collected the Condo is running a monthly deficit of approx. $1500. Current reserve fund is approx. $12000, however $110,000 less then the reserve fund study (2012) says it should be at. A loan was taken out to complete the renovations and is currently 65% paid off. A loan was also taken out from the management company to help cover the deficit until legal situation could be resolved.

The majority of issues stems from the one owner who currently has majority of doors up for sale, which to me implies possible foreclosure coming. If the right investor purchuses the units I could see the Condo having potential.

Is this something for the right price you would invest in? or walk away from?

Thank you for all replies.

Rob

Single family houses with legal basements in Surrey

ppaez — Mon, 15 Apr 2013 19:46:49 GMT

Hi !! Based on your experience, what would be the best neighborhoods in Surrey to buy single family homes with legal basements? If you can mention the top 2 neighborhoods will be great. thxs for your input

Rental Restrictions-Townhouses In Surrey

WSTS7507 — Sun, 07 Apr 2013 20:22:06 GMT

I was informed by a realtor that for 2009 or newer townhouses in Surrey, chances are higher that there would be no rental restrictions. How can I find more details regarding this?

What is the best way to find out which townhouse complexes don't have rental restrictions so that if I were to purchase the property, I would be able to rent it out right away (ie no waiting list)?

Thanks for your help!

Condo Townhouse

karilu — Tue, 26 Mar 2013 20:58:40 GMT

Hello, Folks!

Hoping you can give me your expert input on this situation.

I currently own three rental properties. Two of them are humming right along.
The third is a condo townhouse in southwestern Ontario.

I bought it renovated, at a low price compared to the GTA market, and believed I was doing a smart thing.

Unfortunately, the repairs on this property have been almost continuous since the first day the tenants moved in
in January 2012.

I have had pinhole pipe bursts twice, with all the carpet cleaning and drywall repairs that go along with it.
I have just now had a $500. bill for baseboard heater repairs, as well as some minor electrical repairs.

Long story short, I've just about had it. The property does not cash flow well ($35. per month).
I have spent approximately $6,000. in repairs since I bought it, and the mortgage is only paying down $4,000 per year.

Would I be smart to sell it, take a loss and move on?

I look forward to your advice.

karilu

Rental Property Insurance

darleneosmond — Thu, 21 Mar 2013 17:21:20 GMT

Hi REIN Members

Anyone have recommendations of insurance agencies to insure mobile homes in BC?

Thanks for your help

Darlene

Permits in Halifax

edeo — Wed, 20 Mar 2013 01:00:00 GMT

Hello,

I own a non-confirming two-unit dwelling (R1 zone) in the Halifax Peninsula and was visited by the development officers from the city. Days after, I received a Notice to Comply from the city office requesting to remove the bedroom in the basement which is part of one of the units. I asked for a reason why I needed to remove the bedroom and the answer I got was because I didn't apply for a development permit to build the bedroom.

The bedroom was built in 2004 and the land-use bylaws mentioned a permit is required if there is any modification on the exterior of the property.

Any Halifax property owners out there who can tell me if I need a permit to build a bedroom?

Grading

ppaez — Fri, 15 Mar 2013 01:16:27 GMT

Hello: 2 questions
1) in one of my townhouses in Edmonton, grade in front yard is sinking towards unit; is condominium responsible to fix it?

2) in 2 of my single family houses in Edmonton I am having same grading problems. I got a quote for 6k+ in the concrete part (hard scape). Still waiting for soft scape part. Wonder if anybody knows somebody reliable and with good pricing. Thxs

Should I choose 1.5 bath or 2.5 bath new duplex in same area?

sfhhfs — Wed, 06 Mar 2013 17:42:23 GMT

New duplex in same area, rent range is $1700----$1900. 1200 sf duplex 1.5 bath,priced $285,000.
1300 sf duplex 2.5 bath (one in master bedroom),priced $300,000.
Which one should I choose ?
Thanks.

Purchasing an investment property near a railway track.

brocole — Mon, 04 Mar 2013 04:45:59 GMT

Hi:

Please give me your thoughts on purchasing a property that is situation about 50 metres from a railway track? The property is located in downtown Toronto.

Thinking of impacts on rents, getting tenants and resale

Thanks

Halmiton Zoning issue-ask expert

adventuresports — Sun, 03 Mar 2013 16:03:50 GMT

I plan to buy a single family house in mountain area with a legal duplex or can be legalized.

I don't know what is the by-law does? Can I verify the zone over the phone with city's planning department? Or each time, I need to pay the $105 for zoning verification. It is quite expensive and not efficiency.

Second set of eyes on property analysis Please

kfort — Mon, 25 Feb 2013 02:27:04 GMT

Water leak in basement unit of multifamily complex 1 day before closing

WSJ — Sun, 10 Feb 2013 19:31:57 GMT

Hello,
In warm days after snow storm, water leaked into a basement unit in a multifamily complex, 1 day before closing. 1 week after closing, new owner found out the problem from tenant complaint.

Vendor did send repair worker on same day to dry the floor and gave dehumidifier to tenant (1 day before closing). But nothing could have been done to outside due to bad weather and wet ground.

What responsibility does the vendor have in this case:
(1) Deal closed, nothing? or
(2) Is there any guideline to follow to compensate the buyer

Any feed back is much appreciated!

Looking to buy rental condo in Langford, Victoria is this a good area for rentals?

420 — Tue, 05 Feb 2013 22:46:18 GMT

Scary unattractive (uninformed) news reports in Alberta

Retirement — Thu, 31 Jan 2013 00:46:00 GMT

I am really looking forward to some factual evidence based information from Don Campbell this upcoming week. If you listen to Dave Rutherford, CBC, CTV, etc. you start to feel like Henny Penny.

The bitumen bubble and the overpaid doctors (with the wickest overhead due to commercial rent and high salaries) are to be blamed for AB's latest issues.

Really hope the "DON" can set the nerves straight.

Cheers

how to proceed when private vendor will not allow inspection?

ajhemmings — Wed, 30 Jan 2013 03:37:45 GMT

I am looking at a 4-plex in Orillia that the owner brought to me. The purchase price is $260,000 and after all expenses the monthly cash is $460. I viewed the property and found that most of the kitchens and some bathrooms needed updating, likely $20,000 worth of updating over the next 4-5 years. All the other big ticket items seem in good repair, roof 2 yrs old, furnace 8 yrs, foundation good and so on. During negotiations I asked about fire coded and he suddenly got upset and said he would not allow andone from the FD in the building but an inspection was ok. I found an architect that does fire inspections and home inspections and set an appointment thinking I could get his take on the fire code side of things as well.

When I contacted the seller he had decided that he didn't want any inspections at all and we are totaly stalled out now and I am trying to decide if I move forward with the deal anyway or move on to the next.

Any suggestions or ideas welcome,

Andrew

What do you think? Interpreting my inspection report.

Brookd — Thu, 24 Jan 2013 04:31:55 GMT

Hello,

I have to remove subjects in 48 hours.

This is my first investment property purchase that (with the exception of a pre-sales condo) required an inspection. As such I don't really know how to interpret the results. The house is 269k, in Leduc Edmonton. It is 1200+ SQFT with 3 bedrooms and 2.5 baths. The basement is partially finished and needs some finishing (but the bathroom is completely finished).

The inspection report can be accessed here: https://www.box.com/s/42sz1rzp02qpe7ipprk6

I don't know if its bad form to share an inspection report - is it? I would just love some expert advise from the community to know if I have major concerns and/or should negoiate a price discount based on some the issues. I feel like it kind of sucks that so many things could not be inspected due to snow or clutter in some cases...

What are your thoughts? How would you proceed? Please be honest.

Tile or Laminate

mhuda — Sun, 20 Jan 2013 23:51:16 GMT

Looking for advice on what material to use. I am planning to do my basement for rental and wondering what to use for the kitchen. Should I use Tile or Laminate ? If it is tile , what type of tile (Ceramic or Porcelain)? If laminate, what type of spec should I be looking for? Any advice would be a great help.

Thanks,
Mohammad

Market Rent For 3Br 2Ba Townhouse In Clayton Heights, Surrey

WSTS7507 — Sun, 20 Jan 2013 20:41:33 GMT

Does anyone know what the current market rent might be for a new 3br, 2ba townhouse in the Clayton Heights, Surrey?

Long term value of acreage

cathydeston — Sun, 20 Jan 2013 07:33:26 GMT

Hi there,

I'm looking to buy either a home or an acreage in Edmonton. The acreages I have looked at in Rural West or Parkland close to West/Southwest Edmonton are expensive. So I'm trying to rationalize whether an acreage could be considered good real estate investment because of land value.

My concern is what happens if the economy goes down. What is your opinion regarding acreages holding value versus a similarly priced house in West/Southwest locations such as Donsdale, Westridge, Wedgewood, Cameron Heights, Windermere etc.? I know you cannot compare lifestyles so it's like talking apples and oranges. What is the trend in acreage living currently?

Also, I'm interested in a "For Sale by Owner" acreage in Parkland County. However, the listing price is almost 300K higher than the Parkland County Tax Assessment and I think this is quite a big difference. The house is adequate but sits on a beautiful parcel of land by the river close to West Edmonton City's edge. I checked listings sold through Realtors and the prices range from about 50-150K higher than the County Assessments. Any words of wisdom on this?

Thank you.

Buying in Surrey

ppaez — Fri, 11 Jan 2013 22:44:07 GMT

Iooking for best neighborhoods to buy in Surrey? Thxs!!

How can I classify my property

gildard — Thu, 10 Jan 2013 12:12:32 GMT

I buy a property a single family and I add a legal 2 bedroom apartment in the basement with all the permits respecting fire
code, building code, electric code and insurance regulation.

For CMHC taxes purposes and the evaluation of the property it is better to have the property title as a duplex or leave it as a single dwelling unit with basement suite?