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  1. Matt Crowley

    Rent to Own

    Rent to own works well in an appreciating market if you want to 'lock' in a return. Most guys thinking about rent to own don't understand that for this to work, there needs to be a chance they are giving up some of the upside to the tenant-buyer. Negatives is that if the market doesn't go up...
  2. Matt Crowley

    Looking For Partner on Property in Kelowna

    Find an actual deal, tie it up, then look for capital. Direct investing is all about the business plan specific to the property.
  3. Matt Crowley

    Forgotten Utilities

    19 months late sounds like you have a case to expect things to continue as they were. You have a right as a tenant to rely on past actions of the landlord. I would suggest reaching out to the LL board and if necessary tell the landlord you are willing to go to mediation to resolve it. There is a...
  4. Matt Crowley

    Real Estate Investing, mentor ship and networking in Edmonton

    Some excellent resources here: https://astudentoftherealestategame.com/resources/ Really depends on the amount of risk you want to take. Long term hold is a great strategy over the long horizon with relatively low cash flow (if any) distributions for the first 5 years. Great wealth builder...
  5. Matt Crowley

    Workaround For Security Deposit in Ontario

    A potential problem could be if you have a long term tenant who sees their rent as savings and asks for a payout. Even after 3 years that is a sizeable cheque. Is it held in trust? What interest is it earning? Does that mean I get equity in the house? It also looks like an excessive deferred...
  6. Matt Crowley

    Tenant's dog bite

    One point unclear in your story is if you provided proper notice to enter to inspect the repairs? If you didn't provide proper notice (and there are specific standards you have to meet: 24 hours notice, specific time range, specific reason), you might have entered at your own risk. In general...
  7. Matt Crowley

    Calling Investors

    Hi Golda, I second everything that Thomas has said above. Not a rookie strategy. This is more appropriate as a fund strategy with mega buying power. There are platforms in the U.S. right now that will buy houses sight unseen and flip it...
  8. Matt Crowley

    Reno contract resolution

    Hold back on the final payment and file with small claims. You will need a few estimates to correct the work you view as deficient. Shouldn't need a lawyer.
  9. Matt Crowley

    Joint Venture Inquiry/Information

    I agree with Cory. A solid, already legally suited home is $350k in Edmonton. 5% down is $17,500. With closing costs you need about $20k. Live in the basement suite, renovate it if needed and then start saving for your next home. Another point not considered - at the scale of investment you...
  10. Matt Crowley

    Appreciate advice from a mentor & professionals to invest in real estate

    Keep in mind that RE is very asset-driven more so than buying a stock index. There is money to be made in the asset categories in any cycle, it is all about price entry point and less about cyclical factors. Even large RE companies invest this way. They just buy much larger assets $100 MM + and...
  11. Matt Crowley

    Appreciate advice from a mentor & professionals to invest in real estate

    Don's philosophy is fundamentally buy for the dividend and let the growth carry you on the back end. It is a bit truncated to include only more or less ready to rent units. It depends on what your goals are for returns and the amount of risk you want to take. RE is broadly broken into 4...
  12. Matt Crowley

    Calgary Property Management - who is suck and who is not?

    Do not hire a PM company for SFH! They basically charge an ongoing leasing commission and do no work on a monthly basis. You will lose $300 per month and be totally puzzled as to what they are dong for the money. The reality is there just isn't enough money there for them to provide any service...
  13. Matt Crowley

    partnership share advise please

    I would not do this either. What a nightmare. Own 100% or nothing. Agreed with Thomas, provide an option to purchase. There is no difference between owning and renting when the bank is renting you the capital to purchase, and plenty of ways to gain a real estate proxy for performance on the...
  14. Matt Crowley

    Rent-To-Own agreement

    Hi Boaz, Good questions. It is an option meaning that if you don't exercise the option you lose the option. There is no penalty. You have a tenant in place so all you need is a simple option agreement. Don't need to do anything to the lease. The sales price is negotiation between you and the...
  15. Matt Crowley

    Need self storage

    storage is commodity real estate. Pick a location you like with the lease you want.
  16. Matt Crowley

    New Book On Land Development

    Excellent and free resources: https://astudentoftherealestategame.com/resources/
  17. Matt Crowley

    Have Money, Seek Good Long Term Investment for Retirement

    I wouldn't buy this as an investment property. You seem to be missing your operating expenses? per month rent $4000 OE $1500 R&M $375 NOI $2125 implied cap rate (2125*12)/800,000= 3.2% less debt @2% $1920 CF (month) $204 Not very exciting in my view As Cory said, you need to look at your...
  18. Matt Crowley

    Platinum Properties - Equity Builder Question

    No need for a property manager for a condo. There is almost no cash flow so don't give it to the PM for doing no work. The condo corp has to keep care of all common area maintenance. The only thing you have to do is rent out the unit. If location is too far away, find someone nearby who can...
  19. Matt Crowley

    Fully Renovated Legally Suited House in South Edmonton

    Why would anyone pay 50% of profit to a property management service that costs $200 / month? Seriously pay out 50% of distributions before the investor gets their capital back? That is an annual management fee equal to $13,000 per year (excluding appreciation), or 14% of your invested capital...
  20. Matt Crowley

    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    I think Tango posed a good investment question. Whenever there is discussion of a going-in cap rate that means the stabilized NOI at the stabilized vacancy. Cash flow modeling is always part of the underwriting. But looking at spreads is very commonly done and is a good measure of expected...
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