Any REIN member can help me invest in toronto?

[electricianhoward]

I have studied all books of Don R. Campbell and Rich Dad. want to invest in toronto where I live. this is what I did:
1. set up funding. enough downpayment for 2 under 500k properties
2. looking for proberty
3. talk with 2 real estate agents. they are not REIN memeber. treat me just like house buyer.

I uderstand that in toronto I won`t have enough cashflow to pay memebership fee with only one property. I need a rein member (real estate agent) help me out.

thanks,

 

[ontariolandlord]

QUOTE (electricianhoward @ Jul 13 2010, 06:09 PM) I have studied all books of Don R. Campbell
It`s a great start. You have taken the time to research real estate investing and that`s a good sign.

Toronto is an `interesting` market that has lots of ups and downs. Question: How far away from Toronto are you willing to invest?

 

[electricianhoward]

QUOTE (ontariolandlord @ Jul 13 2010, 07:23 PM) It`s a great start. You have taken the time to research real estate investing and that`s a good sign.

Toronto is an `interesting` market that has lots of ups and downs. Question: How far away from Toronto are you willing to invest?


2 hours drive is max

thanks for your reply

 

[Thomas Beyer]

QUOTE (electricianhoward @ Jul 13 2010, 07:33 PM) 2 hours drive is maxGTA is hard to cash-flow with less than 35% down. Therefore, research those 3 sub-markets (all within 2h of GTA, all Top 10 Ontario REIN towns), pick one and go REAL DEEP on area and property type .. then buy 1 or 2:

KWC, Barrie/Orillia, Hamilton

Related post:

How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html

 

[markl]

Howard,

Drop me an email we have bought some cash flowing smaller properties lately and we can certainly have a chat to see if there is something we can do together.

[email protected]

Regards,

 

[kboughen]

QUOTE (electricianhoward @ Jul 13 2010, 10:33 PM) 2 hours drive is max
We are seeing lots of opportunities in Top 10 towns within 2 hours of the GTA. I would recommend working with a realtor that both understands investors and specializes in geographical areas.

Once you have selected an area to specialize in (Durham, Barrie, KWC, Hamilton ….) feel free to contact me and I would be pleased to forward some Realtor recommendations.

 

[manojsingh]

Hi Howard,
Go with Kevin and Thomas suggestion. Meet with people who already invested in these areas and get the input. Join mastermind group of these cities. One more suggestion meet with Kevin Boughen or any other mortgage broker who is investor also befor start. Buy your first propert after you satisfy with the area and type of property and wait atleast 3 month for next one. Thanks

 

[electricianhoward]

QUOTE (manojsingh @ Jul 17 2010, 12:34 PM) Hi Howard,
Go with Kevin and Thomas suggestion. Meet with people who already invested in these areas and get the input. Join mastermind group of these cities. One more suggestion meet with Kevin Boughen or any other mortgage broker who is investor also befor start. Buy your first propert after you satisfy with the area and type of property and wait atleast 3 month for next one. Thanks


when is next Hamilton Mastermind Group meeting?

 

[invst4profit]

The consensus is, as would be expected, stay out of Toronto if you expect to make money.
If you are not able to find a local agent in the area you chose that is a REIN member make sure the one you do chose invests personally in rental properties and grill them on there understanding of expenses and cash flow.

Cash flow is not what is left after you subtract the mortgage payment from the rental income as many agents may believe and if they try to sell you on appreciation as a big plus tell them you are a investor not a speculator and find another agent.

 

[Thomas Beyer]

QUOTE (invst4profit @ Jul 18 2010, 08:21 AM) ..

Cash flow is not what is left after you subtract the mortgage payment from the rental income as many agents may believe and if they try to sell you on appreciation as a big plus tell them you are a investor not a speculator and find another agent.
not quite .. as an urban real estate investment without the hope of any equity upside is usually not a good investment. The (meager) cash-flow merely exists to allow you to hold long enough !!

A real estate investment is like a 3 course meal:

There is the appetizer: cash-flow (i.e. optional, but nice)
There is the main course: mortgage paydown (i..e always there, and will make you rich if you are patient enough as any mortgage will be 0 in 25 years if you hold long enough)
And then there is dessert: also optional, but certainly always appreciated !

In most urban real estate investments it is the combination of mortgage paydown and equity appreciation that is where the money is made. it is usually NOT cash-flow as often it doesn`t cash-flow strong enough or cahs-flow needs to be re-invested in asset upgrades over time (new roof, new boiler, new carpets, new paint, ...)

 

[invst4profit]

I agree Thomas but what I was suggesting is that if your agent is pushing the upside of appreciation over concentrating there efforts on finding genuine cash flow properties he is operating more on the level of making a quick sale rather than digging in for the long haul to finding the best investment property. Appreciation is nice but it doesn`t pay the monthly bills.

There pitch should be this property based on the numbers XXXXX should have a positive cash flow of XX per month plus you should see appreciation over the long term. Hopefully assuming agent and investor both fully understand the finances of this business.

Too many agents take the easy path of simply seeing the investor as a home buyer, dazzling them with the $$$ of appreciation, and often short changing the novice investor by getting them into a property they can not afford to keep.

 

[Thomas Beyer]

QUOTE (invst4profit @ Jul 18 2010, 04:38 PM) I agree Thomas but what I was suggesting is that if your agent is pushing the upside of appreciation over concentrating there efforts on finding genuine cash flow properties he is operating more on the level of making a quick sale rather than digging in for the long haul to finding the best investment property. Appreciation is nice but it doesn`t pay the monthly bills.

There pitch should be this property based on the numbers XXXXX should have a positive cash flow of XX per month plus you should see appreciation over the long term. Hopefully assuming agent and investor both fully understand the finances of this business.

Too many agents take the easy path of simply seeing the investor as a home buyer, dazzling them with the $$$ of appreciation, and often short changing the novice investor by getting them into a property they can not afford to keep.
true enough ..

just toying with a pre-sale in Vancouver myself .. so tempting .. but if you do the math with 20% down plus HST and a 6 months window to exit it breaks even only with a 7% appreciation .. likely in 2 years but certainly very risky !

 

[manojsingh]

Next Hamilton Mastermind meeting will be on 25th of July (7pm) at Williams Coffee Pub, Burlington (403 and Appleby). Thanks

QUOTE (electricianhoward @ Jul 17 2010, 04:16 PM) when is next Hamilton Mastermind Group meeting?

 

[JoeRagona]

Hi Howard,

You have already heard from many of this forum`s experts and I would just like to confirm the areas they have suggested. For my particular properties I have both KWC and Barrie markets as my choices. You still need to do some work to find cash flow properties but they are there.

That said, I also work with veteran members in both Hamilton and Toronto and have opportunities that may or may not fit your system. If you would like to chat about KWC/Barrie or what opportunities are available in Toronto I can be reached at the contact numbers below or email.