Ongoing
Cashflow
Ensuring investors and home buyers to make real estate purchases that guarantees consistent cash flow.
Generational
Wealth
Guiding our clients to accumulate income generating assets that can last and be inherited.
Value
Appreciation
When you sell and buy with us, you get full service and save thousands in fees.
New
Construction
When you sell and buy with us, you get full service and save thousands in fees.
Rental
PROPERTIES
When you sell and buy with us, you get full service and save thousands in fees.
Business
FRANCHISE
When you sell and buy with us, you get full service and save thousands in fees.
THE BARGAIN FINDER
THINGS TO KNOW
It’s a lifetime dream for most people to at least own a home, something that can appreciate for them to make more money and maybe pass on to the next generation. In this dream comes the reality that some will own multiple properties and others will have none. One can invest into rental properties, commercial, franchise or business purchase. at the early stages and in situations of larger purchases, such can be done in partnership with a friend, family or business partnership. Saving up the required funds and being able to meet other basic requirements for funding and managing such an investment are crucial and need professional expertise. Where and what to invest into will influence the finance and government regulations. At the end, its all about adding value to your investment. This is more than just surviving but making informed decisions from the early stages. If you are surrounded by the wrong intel, then you will likely take steps that are uninformed or misguided.
An investor is someone or a company that puts finances or a loaned finance into a project or product with the hope of making financial gain over a period of time. An investor makes more profit by taking a risk but often it’s an accepted norm that the more the risk the more the return.
Investors are those who make an investment, and this could be into real estate, equity, debt, and much more. An investor can be a government, individual, firm, or through a mutual fund. Investors can analyze opportunities from different angles, and generally prefer to minimize risk while maximizing returns. Investors are strategic and often have long-term profit-making driven in real estate compared to securities and stocks which could be short-term. Investors in stocks are buying an ownership interest in a company; they become real “owners” of the company. Investors in bonds are buying a debt interest in a company; they become “creditors” of the company, not owners.
People also invest in stocks and real estate because they can make more money than keeping cash in their bank accounts.
Types of investors:
– Banker
– Lender
– Venture
– Shareholder
– Stockholder
– Capitalist backer
Equity is the amount of capital invested by the business or real estate owner. Its the difference between a business or real estate total assets and its total liabilities. This is the difference between the market value of a property and the amount owed to the lender if you don’t own the home without any loan or mortgage.
“An asset is an item that can be used to generate future cash flows”
An asset is a resource that is owned by an individual, government, or business, such a resource can be used to create value and positive economic benefits. Some of the general classifications of assets are: current, fixed, tangible, intangible, operating and non-operating assets. According to the International Financial Reporting Standards (IFRS), “An asset is a resource controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow to the enterprise.”
Examples of assets include:
– Cash and cash equivalents
– Inventory Investments
– Property, Plant, and Equipment (P.P.E)
– Vehicles
– Furniture
– Patents
– Stock
A Buyer is someone who purchases a real estate property. Real estate properties are different from other products. In real estate a buyer may not be new to the product. They may have leased it previously or presently. The Buyer can be an individual, a couple, a partnership, or company. Not all prospective buyers are qualified. It’s important to have an informed and qualified Buyer.
A motivated Buyer are those who need to purchase a property and may not mind paying a little more for the property. They sometimes know what they already want and have timelines to make their purchase.
Unmotivated Buyers could be an unqualified buyer or a bargain hunter. They are mostly speculators or investors who don’t need to buy unless the price drops or some other economic indicators show they will make additional profit or gain.
A Seller is someone who owns the real estate and willing to put it on the market for sale. The seller or sellers must own the property or have the legal permission to sell the residential or commercial property. A seller may also be selling a business that may not include ownership of the property. The property may be leased and such will be reflected int he price.
Motivated Sellers are those who are ready to sell their property at market price or a little below market price. They are actively seeking a buyer. They may also need to move from the property for other reasons which they don’t have to disclose.
Unmotivated Sellers are those who are not sure if they should sell or not. They may just be testing the market or considering it’s better to sell in the future. They may have lost their jobs, or behind on mortgage payments, going through a divorce, expecting a baby, recently adopted, or the property was just inherited. The seller may also be a landlord that’s not happy with their property or the stress from tenants.
Opportunist Sellers are those who put their property on the market for sale but it’s overpriced with the hope of making a huge profit. They may do this often or leave it on the market for a while.
A “Rent to own” is a form of agreement that’s good for some people, but it can also be a disadvantage to several other people. It’s an agreement that gives the tenant the opportunity to save up down-payment to purchase the same property. An extra monthly amount is demanded above the rent, such extra funds are used as a credit if the tenant meets a few items agreed upon over a period of time.
For example, a rental agreement for a 2 bedroom is signed for $1850 monthly. A one-time non-refundable fee of $6,000 is paid as an “option to buy fee”. $300 monthly from the $1850 monthly will be credited to the tenant for use as part of the downpayment. The $300 in 3 years will become $10,800 in credit towards the purchase. But the tenant will need other things to finalize the deal. This can also serve as a 3 years period for the tenant to build their credit. But chances some people can be scammed. There are more risks to the tenant than the landlord and why we at Canada Best Houses will discourage this method for our clients.
Positives:
- – You may be able to move into the property right away.
- – The tenant can benefit from the time allowed to build their credit to help qualify for a home loan.
- – A portion of the monthly rent will be credited to the payment for the home.
- – Can qualify with poor credit Get the home for the current market value.
Negatives:
- – The huge up-front option to buy fee.
- – The tenant could be forced out if the owner gets foreclosed.
- – If the tenant terminates the contract, they will most likely lose the option fee.
- – The possibility of not qualifying for a mortgage at the end of the agreement.
- – The agreement is often not 100% binding, hence the loss of investments.
- – Mortage is never a guaranteed aspect of the agreement.
- – A missed rent payment can mean the loss of the entire deposit.
REIT a.k.a Real Estate Investment Trusts is an investment opportunity that similar to bonds and stocks, but this is investing in real estate without directly owning a physical real estate. These investment companies mostly own commercial real estate properties like warehouses, offices, hotels, and an apartment. REIT then pays a return on investments in form of dividends.
SOME BENEFITS OF REIT:
– Won’t Pay Corporate Taxes.
– A good way to get income.
– The dividends yields is high.
– Focus and access to Commercial real estate
– Opportunity to diversify your investments
– Quicker to invest compared to actual buying physical properties.
There are several monetary factors and requirements in real estate. Some of the financial commitments include loans, down-payment, deposit, realty fees, inspection fees, disbursement, legal fees, agents commission, property tax, land transfer tax, and much more. Also there are different mortgage and financing types and approval may depend on several factors.
Commercial real estate lenders typically require borrowers to put a down payment a minimum of 30% of the purchase price. The scrutiny is much more than that of residential real estate.
HERE ARE SOME FINANCING OPTIONS:
1. – Bank mortgage and finance.
2. – High Ratio Financing (CMHC).
3. – Home Equity-Based Loan.
4. – RRSP or Private Mortgage.
5. – Joint Venture Deals.
6. – Line of credit.
7. – Vendor Financing.
8. – Commercial mortgage.
Return on Investment (ROI) is a performance measure used to evaluate the efficiency of investment by evaluating the amount of return on a particular investment, relative to the investment’s cost.
The 2% rule in real estate suggests that a rental property is a good investment if the monthly rental income is equal to or higher than 2% of the investment property price. For example, for a $200,000 rental property, the rental income has to be at least $4,000 to meet the 2% rule.
The 70 percent rule is a way to determine what price to pay for a fix and flip to make money. What is the 70 percent rule when applied to fix and flipping houses? The 70 percent rule state that an investor should pay 70 percent of the ARV (After Repair Value) of a property minus the repairs needed.
The one percent rule is a guideline frequently referenced by real estate investors when evaluating potential property purchases. This rule of thumb states that the monthly rent should be equal to or greater than one percent of the total purchase price of an investment property.
A property manager is a person or company that is hired to manage the daily operations, maintenance of a unit of real estate, land, or property. Most property owners and investors usually get property managers to help them manage a property for a fee.
A property manager or management should have a good communication channel, as well as being proactive, involved and knowledgeable. They do inspections quarterly or as agreed. They also handle management issues like lawn care, snow removal, emergency repairs, common area maintenance, plumbing, painting and much more.
RESPONSIBILITIES OF A PROPERTY MANAGER:
– Collecting and managing Rent.
– Responsible for managing the Tenant’s issues.
– Maintenance and repairs coordination
– Good knowledge of Landlord-Tenant Laws.
– Supervising expected responsibilities.
– Responsible for Managing taxes, records, and budgets.
featured neighborhoods
where to invest
HOT PROPERTIES IN GOOD NEIGHBORHOODS
investing in real estate
Fusce Porta Euismod Magna, Eu Vehicula Tellus Feugiat.
Aliquam suscipit felis a arcu laoreet congue. Habeo nemore appellantur eu usu, usu putant adolescens consequuntur ei, mel tempor consulatu voluptaria.
- Luctus nec ullamcorper mattis
- Habeo nemore putant
- Mel tempor consulatu voluptaria
sFusce Porta Euismod Magna, Eu Vehicula Tellus Feugiat.
Aliquam suscipit felis a arcu laoreet congue. Habeo nemore appellantur eu usu, usu putant adolescens consequuntur ei, mel tempor consulatu voluptaria.
- Luctus nec ullamcorper mattis
- Habeo nemore putant
- Mel tempor consulatu voluptaria
investing in real estate is good but these are
the IMPORTANT THINGS TO THINK ABOUT
with the objective of getting a stress free
cost effective outcome
- Keep a good credit for many years.
- Your Lifestyle and family size matters.
- The wish list versus reality check list.
- You may need to change your kids school.
- What type of property will meet your needs.
- How will moving affect your insurance, transit, etc.
- Will you need to sell a property before buying another.
- Do not panic, but a small mistake can have financial consequences, and why a good realtor will be helpful.
