Some friendly advice plese...

[Pat]

I hope that there is someone here who can provide some advice on this matter.

Perhaps there is someone in my area of Vancouver - Surrey, BC that would consider a mentoring relationship?

QUOTE I`ve been studying the posts on this topic and others and am most impressed with the supportive (without B. S.) discussions between seasoned "Pros" and newbies, like myself.

I am looking for a little guidance and I hope to find some help here.

I am house poor.

While I can afford my mortgage of $130K, there is not much cashflow left at the end of my month. I do have an excellent credit history but am not really able to show a strong income statement for bankers.

I do have a matrix mortgage with FirstLine with more than $160K LOC available. The problem is that I would need a positive cash flow after all expenses and debt service on the mortgage as well as the LOC on the investment. This seems like a tall order.

Compounding this is the fact that my health is not too good and I will require some type of maintenance/handyperson relationship.

The good news is that I live in Surrey, BC and am familiar with the area and its splendid opportunities for long term Real Estate investment. I am currently reading Don`s book on the ACRE system and I want to get started while I am still working part-time.

I am really looking forward to your replies.

Pat
[email protected]

 

[RobMacdonald]

Hi Pat,

Probably your biggest challenge you will be facing is what financing options will be available to you. Now, there is always a way to find a mortage, but you really need to be cautious about making sure that the financing assists you acheive your long term goals.

And that is where you need to start. What to you really want to get out of real estate? You will be challenged on this topic in Don`s book, and make sure you really consider what your goals are. Then assemble a team of professionals around you that can assist you in accomplishing those goals.

 

[Pat]

Thanks for your response, Rob.

As I am semi-retired, my primary concern is to solidify and enhance my estate over the longer term with perhaps some optional "freedom funds" for the nearer term. I am not really interested in flips - not that this is an option today. Rather, I would like a long term hold with enough positive cashflow to safely cover debt service after expenses and taxes.

I asking a lot, I know.

 

[GSI]

Hello Pat,

Like Rob said... depending what you want to get out of real estate. If managing an active property is difficult for you, you may want to consider investing your money into a REIT or doing a JV partnership with someone. That way you can leverage your cash further without doing all the ground work.

Another option, depending on your credit history as you mentioned, could be to qualify for a mortgage and have someone else put up the capital - I have done partnerships like this before and they work.

Good luck to you, You probably have more options than you realize.

Thanks,


QUOTE (Pat @ Mar 25 2009, 08:50 PM) Thanks for your response, Rob.

As I am semi-retired, my primary concern is to solidify and enhance my estate over the longer term with perhaps some optional "freedom funds" for the nearer term. I am not really interested in flips - not that this is an option today. Rather, I would like a long term hold with enough positive cashflow to safely cover debt service after expenses and taxes.

I asking a lot, I know.

 

[Thomas Beyer]

QUOTE (Pat @ Mar 25 2009, 09:50 PM) Thanks for your response, Rob.

As I am semi-retired, my primary concern is to solidify and enhance my estate over the longer term with perhaps some optional "freedom funds" for the nearer term. I am not really interested in flips - not that this is an option today. Rather, I would like a long term hold with enough positive cashflow to safely cover debt service after expenses and taxes.

I asking a lot, I know.

some excellent real estate related buys in the private syndication space and certainly stock market these days that provide cash-flow and equity growth !

 

[Pat]

Thanks, GSI.

I am thinking that I could use my LOC as a down payment with a JV partner drawing down the mortgage. I will require debt service pn the LOC however. Could this work?

Thomas, I am confused with regard to your post. I can`t find a syndications board and I`m not sure about your reference to the stock market - REITs?

 

[Thomas Beyer]

QUOTE (Pat @ Mar 29 2009, 01:20 AM) ...

Thomas, I am confused with regard to your post. I can`t find a syndications board and I`m not sure about your reference to the stock market - REITs?

many company like ours exist that share MULTIPLE investor`s money to buy real estate .. many shopping centers, or office towers or development deals or land deals .. we do apartment buildings with (optional) cash-flow and equity upside .. there are also dividend paying stocks and REITs that you can buy in the public realm that provide monthly or regular distributions ..

 

[Pat]

Thanks Thomas, for your suggestions.

I`m relatively well versed (from one of my previous lives) in the stock and bond markets. My rationalle for R/E investment is that, while there may be great confusion and uncertainty out there, people must have a roof over their head (even a bridge will do for some).

How can I get a comparative list of R/E offerings?

 

[Thomas Beyer]

QUOTE (Pat @ Mar 30 2009, 12:05 AM) ...

How can I get a comparative list of R/E offerings?

check the local paper for ads .. some decent and many more very high risk projects (land development, hotel construction, condo construction, over inflated going-in values for commercial ..) .. many high risk 2nd mortgages .. many many choices to participate with others !

also check the JV section here on REIN ... our offering as well as dozens of others are in there !

check out: track record, management team, length in business, cash-flow vs. pure equity upside, over-inflated prices, RISK in current weak economy !