request for mentors - Posted by Nat

Posted by DMorise on January 08, 2001 at 20:37:45:

A Fourplex, like any other investment property should be viewed as a long term investment 15 yr note or less. Your tax write off will be great, I guess, I have heard canadian get taxed pretty excessive. Anyway focus your attention on learning as much about realestate as possible. A good Title company can be cheap. The one I use sends me some information for free. Know your brokers, stay honest possibly tell them that your looking at an owner finance, etc. Avoid putting a lot of money down, because you probably need the money for repairs. Read Robert Kiyosaki, Robert Allen, and Tax Haven books. Keep your accounting expenses, mileage, and other write-offs up to date. Investing in property is so satisfying when it is done correctly. I bought 4 properties in 2 yrs using some of the Carleton Sheets methods. 2 of the properties are a apartment buildings. 1st of all-Pay off your bills before investing, otherwise you might find yourself using credit card, which is not a good practice. Dave Ramsey is a guy a listen to often about being debt free-he is a true motivator. Good luck and God Bless you. P.S. Don’t waste your time and money, because both are essential in a lifetime of success.

request for mentors - Posted by Nat

Posted by Nat on January 07, 2001 at 20:53:05:

Hi, great site.
Very green but very keen. I’m in Canada and have seen a 4-plex for auction on an on-line listing. I plan on going to a couple of auctions to get acquainted with the process, also plan on visiting an accountant to assess tax implications on investment properties, also a real estate lawyer to ask about possible complications. Who do I contact about the existing mortgage, possible encumbrances? (it says in the listing that the purchaser will assume existing mortgage)
Please advise with your auction/tax sale experiences. Any tips and/or mentors welcome. Any Canadians out there?

Re: request for mentors - Posted by Mike-BC

Posted by Mike-BC on January 08, 2001 at 24:06:54:

Hi Nat;

I’m from the Prince George, BC area. I have not been to a land auction before but I am an active investor. I have owned and managed investment properties for almost 20 years.

To enquire about encumbrances and liens against a property, you could use a lawyer or notary but they cost… For a much smaller fee, you could go to the Land Title Office yourself and do a search. You will need the legal description of the property.

The most important thing to remember is that money is made when you buy, not when you sell. Think of the 4-plex as a business, project what your monthly income will be as well as your monthly expenses. Play around with the numbers so that you can see what the maximum you can afford to pay for a property and still make economic sense. You need to allow for taxes, insurance, city utilities, vacancies, advertizing, and maintenance as part of your monthly expenses. There may also be one time, up front costs related to deferred maintenance (repairs that have not been done).

Good luck!