Buying Opportunities???

Rickson9 · May 28, 2016

Clearly this wouldn't work in Calgary over the last year. How can we best manage that particular variable?

RE123RE · May 28, 2016

ThomasBeyer said:
Using some conservative math:

30% down

No cash flow or cash flow used for staying power , modest upgrades, vacancies, annual accounting costs etc

Over ten years: Mortgage gets paid down 25% of the 70% or 17% of house price

ROI in flat market: 17/30 = almost 60% or 6% a year

Assume a modest 20% value upside in ten years get another 20/30 = 66% a year

Total conservative ROI: 120% or 12% a year

Better in many markets or with 20-25% down !!

Hi,
Exactly.
Thanks

RE123RE · May 28, 2016

Rickson9 said:
Clearly this wouldn't work in Calgary over the last year. How can we best manage that particular variable?

Hi,
Please learn statistics and understand Calgary in the past year or 2 does not significantly change entire Canada's statistics in the past 10 or 50 years.
Yes, some will always lose in RE. Or more precisely always will some. But most made money.
Thanks

Rickson9 · May 28, 2016

What have you bought in Calgary over 'the past year or 2' since it doesn't 'significantly change entire Canada's statistics'?

kfort · May 28, 2016

Who cares what most people made? I care what I can make. And if I'm buying in location X, I couldn't give a rip what location Y does unless I'm factoring in ripple effect.

Thomas Beyer · May 28, 2016

Running my math above with 25% down I arrive at (18+20)/25 = 150%+ ROI in ten years ..

Of course over any 2-4 year period one cannot assume a guaranteed ROI. One has to take the long view, always, i..e 10+ years !

Rickson9 · May 29, 2016

150% sounds good. Apparently $0 cash flow is not achievable in Calgary.

No longer ranked in the top 10?

RE123RE · May 29, 2016

Rickson9 said:
What have you bought in Calgary over 'the past year or 2' since it doesn't 'significantly change entire Canada's statistics'?

Hi,
Your losses and my profits are not the question here as they do not have any effect on the average RE deal, the trend, statistics.
Thanks

Thomas Beyer · May 29, 2016

Rickson9 said:
Clearly this wouldn't work in Calgary over the last year. How can we best manage that particular variable?

One year is too short for any meaningful and reliably repeatable business model in real estate. You might get lucky once in a while with a one year flip but you cannot build a reliable business model on it. However, with 10+ years you can !

Rickson9 · May 29, 2016

RE123RE said:
Hi,
Your losses and my profits are not the question here as they do not have any affect on the average RE deal, the trend, statistics.
Thanks

I'm sorry you didn't understand the question.

Thanks

Rickson9 · May 29, 2016

ThomasBeyer said:
One year is too short for any meaningful and reliably repeatable business model in real estate. You might get lucky once in a while with a one year flip but you cannot build a reliable business model on it. However, with 10+ years you can !

Would you recommend buying in Calgary today for a 10+ year hold?

Thomas Beyer · May 29, 2016

Rickson9 said:
Would you recommend buying in Calgary today for a 10+ year hold?

Yes

Rickson9 · May 29, 2016

ThomasBeyer said:
Yes

What are you buying in Calgary today?

RE123RE · May 29, 2016

Rickson9 said:
Clearly this wouldn't work in Calgary over the last year. How can we best manage that particular variable?

Hi,
Hope you read the expert's advice Thomas above twice.
He summarized it well:
"One year is too short for any meaningful and reliably repeatable business model in real estate. You might get lucky once in a while with a one year flip but you cannot build a reliable business model on it. However, with 10+ years you can !"
Thanks

Rickson9 · May 29, 2016

I'm sorry you don't understand what's going on.

Thanks

Thomas Beyer · May 30, 2016

Rickson9 said:
What are you buying in Calgary today?

Not buying right now, just managing our real estate holdings as impeccably as possible for maximum personal and investor gains !!

valeeo · Jun 1, 2016

ThomasBeyer said:
Your question " where are people buying" is a bit broad as the generic answer is " almost everywhere "!

Development works almost anywhere where there is demand and in-migration.

Mobile home parks, multi-family and commercial properties also work almost anywhere, as do houses and town-houses, and condos too in many instances.

Wait for a bottom to form in AB and SK, likely 2017 but even in AB or SK you can make money today if you know what value looks like.

The trick is to become an expert in a very small niche ( assuming limited capital ).

Specifically we recently bought a MHP in SE BC, took over a multi-family building in Dallas, TX and am doing a development in the S-Okanagon. Holding all assets with reduced cash-flow in AB, for now.

valeeo · Jun 1, 2016

Please send info for your MHP in B.C . or other similar opportunities.Thank [email protected]

Thomas Beyer · Jun 1, 2016

valeeo said:
Please send info for your MHP in B.C . or other similar opportunities.Thank [email protected]

What are you saying ? You want to buy it ? Or just in general ? Earlier this year we bought a 62 pad MHP in Cranbrook at a 7% CAP rate at a hair below 40,000/pad. Those are tough to find. Most MHPs, like apartment buildings, trade sub 6% CAP rate, or if in BC or near major cities in good locations with land development potential at sub 4%.

ldyhyl · Aug 22, 2016

JBagorio said:
Our current focus is in the NE Calgary, targeting single homes with secondary suite potentials. We are starting to see properties that works despite the current rental going rates. We are positioning our self to buy in the late 2016 and into 2017.

could you please give me a website or link where to find these single homes with secondary suite potentials?
thanks

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