Very informative - both for local investors as well as anybody itching to implement the BRRRR strategy. With information like this available online, and local investors willing to share their hard-earned knowledge, there's no excuse for others not to get out there and start investing!
Hi Kellan, thanks! Once you've settled into your first income property we should consider doing a video documenting your experience with becoming a first time landlord, and how your perception has changed over the process - I think people would get a lot of value from that.
Bigger Pockets is an amazing resource! There's also a regular meetup in London for real estate investors - I highly recommend you consider attending the next one! www.biggerpockets.com/forums/521/topics/370417-london-ontario-november-15-2016
This video was really well organized and laid out - awesome work Matt! You know I'm smashin' that like button. Really interesting that you were able to use a mortgage product that allowed you to do a cash out refi in such a short period of time; I'll have to do some digging to find something like that for myself!
Will banks continue to lend even if you have 20% cash to put down on each property? When you keep repeating, is there a point where they don't want to lend you money thereby screwing up the repeat part of this? Thanks for your videos!
That's a great question - the answer to it is a bit complicated... So each Canadian Bank has slightly different rules, but it's relatively easy until you get to 5 properties, then it's still fairly easy till you get to 10 properties, after 10 it can get a bit more complicated, but by that point most investors have reached a different level of sophistication and have a good network of lenders and can then use corporations or partners to move past that 10 property barrier.
A Nigerian Immigrant's Journey to Canadian Home Ownership Part 1 ua-cam.com/video/7WNBQQw7Cy8/v-deo.html Here you go Matt. Thanks for everything 🙏🏿🙏🏿🙏🏿🙏🏿
Hi Matt, I'm just now watching your first video, glad I found your channel. I'm really looking forward to watching all of your videos as I really struggle with the first part of the BRRRR strategy and the initial buying process. I'm not sure how to get a loan to buy a property that needs fixed up as I have always heard banks will not lend for something like this. Thanks again.
Banks will lend on fixer uppers as long as it's in livable condition. (Has heat, hydro, water, structurally sound) and on properties that are not livable you may still finance it but likely at a lower LTV (Loan to Value), instead of 80% you may only get 50-65%, if it's in really rough shape you may have to buy cash) Majority of properties I buy are mortgage-able.
Hey Matt, I’m a new subscriber! So I’m in my 4th year of university finishing up my criminology degree however my previous plans of attending law school are not in my interests any more. I also started up my own online business less than a year ago and have done close to 30k in sales (60% profit averaged) so far. I’m only 20 years old but I’m really interested about investing my money into real estate and hope to one day reach a level where I can fully support not only myself but also my family. Any tips for someone who is literally just starting out (this is the 2nd video I’ve watched about real estate) would mean the world to me!!! For now, I’m going to keep watching your videos and increasing my knowledge base. Cheers from Mississauga :)
Thanks Morad for watching! My first tip would be to binge watch every one of my videos (and then share them on social media) 😂. Depending on what type of learner you are I would consider listening to bigger pockets podcasts (once you get accustomed to the jargon, you can listen at 2x speed) I would also highly recommend reading rich dad poor dad, the millionaire next door, and early retirement extreme. Also bigger pockets has an amazing online forum that has region subforums - I would then learn as much about your subregion from there - and also ask questions and engage with local investors. Then I would start netowrking going to local real estate investor meetups (look on meetup, facebook and bigger pockets for various groups)... Actually I think I'll do a video on this topic as well.
Hey Matt Great video series.... lots of clear info with real hands on examples. Is there any where I can find your excel files for analyzing brrrr strategies as well flips, holds etc..... I remember one of your videos you said there was a link in the comments but I cant seem to remember which one! Thanks!
Congrats on buying your first income property! What are the details on the property? In Part 3 of the series I'm planning to go over in detail my renovation budget and why I focused on the areas I did. In general though (besides the obvious best return on your buck - which is almost always repainting), two of my favourite renovations are adding dishwashers and laundry to your units. In my market you can frequently charge $50 more a month if your unit has a dishwasher and $50-100 a month if it has laundry vs a comparable unit. In addition to getting higher rents, these renovations don't need to cost much. I buy used appliances on kijiji - usually focusing on buying from families/couples that our upgrading white appliances to stainless steal, or just upgrading to the newest version of SS. I believe (and have found in my experience) that these upgrades to your rental units will also attract a higher quality tenant who is more likely to treat your property like a home (vs a temporary place to stay) resulting in lower turnover as well!
omg I NEEDED THIS SERIES! this is exactly what i want to do but i just didnt know how to do it! Im in Sudbury ON where the city is starting to develop and i want to get in while housing is still cheap. I liked the step by step in ROI in this video. Im not too sure what exactly to look for in my first home but i will use a realtor. Question: Is buying private a better way to go? to save the expense of closing costs and what not? How do i go about getting an inspection and what should i be looking for? Where else do i risk on making a wrong turn when buying my first property?
Private is usually the way to go, because it results in a better deal. (Because of information asymmetry). Checkout my video's on private deals or wholesaling real estate to learn more about real estate investing.
It obviously depends project to project - that being said - Labour can be quite expensive part of any renovation project - but as far as specific surprises that can end up costing a lot is foundation issues, old electrical or plumbing can be expensive (as you may need to open up wall/ceilings),
Matt McKeever alright cool. I move into my first property (a 1904 sq ft split level duplex built in 1979) and the unit i am moving into is going to need paint, new carpet, and i definitely wanna do a new bathroom for it. It has a creepy crappy little bathroom! I have about a $4-6k reno budget. Hopefully its enough! :)
On the Reno part did the amount you ended up paying for it was it all up front, got the money from a lender, buying it/material with money from a job? I need help on this part
hey Matt, just found your channel from a friend who is a fan of Bigger Pockets I am currently in Orillia Ontario, I'm fairly novice at the BRRRR process and real estate in a whole. do you only purchase in the city you live in or have you considered buying outside of London?
I personally only buy in the city I live in, that's a personal preference. I feel like I know London's RE market better than any other market (and part of that is living there, the rest is research). Ideally I'd like to have the majority of my investments in a market I understand thoroughly, and living in the market is a great way to learn it. That being said, I don't believe it's necessary. I've begun considering markets outside of London, and no doubt in the future will invest outside of London.
JUST FOUND YOUR CHANNEL, LOVE IT SO FAR... DID YOU PUT 20% DOWN ON THE PROPERTY? I HAVE 30K IN CASH AND I LIVE IN NYC I WANT INVEST AND MAKE MY MONEY WORK FOR MY FAMILY INSTEAD OF JUST BUYING A HOUSE TO LIVE IN.. DO YOU HAVE ANY TIPS?
Hi Matt, really interested in doing this strategy to build up joined student housing rental units. Question, can you use a HML for the first purchase? I currently flip homes and I’m a GC so I can take on pretty much anything, I just don’t have a ton to put down on a conventional loan. thanks!!
Found a property which is fairly cheap. The ceiling is around 90k whilst other houses around 0.5 miles are selling or have been sold for around 100-125k. What are other steps should i do to make sure its a good property worth doing the BRR. Any liats that you go down to berify if the property is good.Just starting out based in UK and in need of advice to get me in the right path thanks for all your help.
how it's possible to do 1% rule in the Ottawa area where any property like this will cost 400K$+++(before renovations) and you may rent it for around 2,5K$ (after renovations) ?
MAtt, What do you think about investing out of state? I'm in NJ and I'm looking to invest in Jacksonville FL. (NJ is a horrible market - overpriced, way too much demand, high holding costs)
There's no blanker right amount. How much do you expect your property to cost, how much when reno's costs, based on your jurisdiction what are the financing options. For example if buying a multi family turnkey in london ontario and you plan to like in one of the units - need approx 5% for down payment on duplex, or 10% for triplex or fourplex. Hope that helps
I want to start small, 150k to 190k. I think if I have about 30k it should be enough for down payment, closing cost n some TLC. Thanks for replying back
Hey Matt, i live in the MONTREAL, qc region could we connect and talk about a few things i’m looking in this BRRRR strategie and i need to talk with pros.
Many people still think of the area as run down and uncared for. I think this was a result of the Dundas east commercial corridor falling into disrepair and many of the store fronts becoming vacant (the cause of this could be debated) which when there's a lot of vacant run down buildings - some of society's shadier characters are naturally drawn to the area. Regardless of what the old stigma was (and what caused it) I believe it's completely misplaced now. The area has a very vocal and involved community group, that is passionate about the area and committed to seeing it flourish to it's full potential. I think in 5-10 years, the Old East Village is going to be a, if not the, 'it spot' in London Ontario.
Hi Kent - Good question - without regular consistent employment income it can be very difficult to obtain financing for properties - that is why often full-time real estate investors eventually(inevitably?) begin to focus of partnerships/joint ventures. Later this year I'll begin documenting (in detail) how I have and will be approaching this problem/opportunity.
Sorry you are creating a bigger mortgage and an extra mortgage so even bigger liability if cash flow from property doesn't add up to pay for the mortgage and extra mortgages you created. In a best case scenario of renting all your property every months. Now think about worse case scenario if none are rented or cash flow is not enough for many many possible reasons. Then you are looking for early bankruptcy and loss of everything.
Matt, thank you so much for setting up this playlist man. THIS is exactly what I needed.
Thanks for the feedback! Much appreciated!
🔥
Very informative - both for local investors as well as anybody itching to implement the BRRRR strategy. With information like this available online, and local investors willing to share their hard-earned knowledge, there's no excuse for others not to get out there and start investing!
Hi Kellan, thanks! Once you've settled into your first income property we should consider doing a video documenting your experience with becoming a first time landlord, and how your perception has changed over the process - I think people would get a lot of value from that.
Absolutely, sounds like a great plan! We all have something to share, I'll be happy to do my part.
Yeah I'm addicted to watching Bigger Pockets on UA-cam!
Bigger Pockets is an amazing resource! There's also a regular meetup in London for real estate investors - I highly recommend you consider attending the next one! www.biggerpockets.com/forums/521/topics/370417-london-ontario-november-15-2016
I am new to your channel and new to Real Estate. I love this first video. Looking forward to more great content!
Absolutely! This channel is the place for all things real estate!
Love seeing local people working to make our city better, our country better, and our pocketbooks better!
Thanks Tim!
This playlist is absolutely amazing🔥 🔥
This video was really well organized and laid out - awesome work Matt! You know I'm smashin' that like button. Really interesting that you were able to use a mortgage product that allowed you to do a cash out refi in such a short period of time; I'll have to do some digging to find something like that for myself!
Thanks for the support!
Will banks continue to lend even if you have 20% cash to put down on each property? When you keep repeating, is there a point where they don't want to lend you money thereby screwing up the repeat part of this? Thanks for your videos!
That's a great question - the answer to it is a bit complicated... So each Canadian Bank has slightly different rules, but it's relatively easy until you get to 5 properties, then it's still fairly easy till you get to 10 properties, after 10 it can get a bit more complicated, but by that point most investors have reached a different level of sophistication and have a good network of lenders and can then use corporations or partners to move past that 10 property barrier.
thank you for making this so clear, great strategy
Thanks Wayne! Appreciate you diving into my older videos and checking them out!
Amazing insights here for sure!
I’m writing a script right now about this playlist and how it helped me for my UA-cam channel.
Can't wait to see it!
A Nigerian Immigrant's Journey to Canadian Home Ownership Part 1
ua-cam.com/video/7WNBQQw7Cy8/v-deo.html
Here you go Matt. Thanks for everything 🙏🏿🙏🏿🙏🏿🙏🏿
Hi Matt, I'm just now watching your first video, glad I found your channel. I'm really looking forward to watching all of your videos as I really struggle with the first part of the BRRRR strategy and the initial buying process. I'm not sure how to get a loan to buy a property that needs fixed up as I have always heard banks will not lend for something like this. Thanks again.
Banks will lend on fixer uppers as long as it's in livable condition. (Has heat, hydro, water, structurally sound) and on properties that are not livable you may still finance it but likely at a lower LTV (Loan to Value), instead of 80% you may only get 50-65%, if it's in really rough shape you may have to buy cash) Majority of properties I buy are mortgage-able.
Thanks for the reply Matt! I definitely learned something here. Really enjoying your videos!
Awesome video buddy learning
Thanks!
🔥 🔥
Hey Matt, I’m a new subscriber! So I’m in my 4th year of university finishing up my criminology degree however my previous plans of attending law school are not in my interests any more. I also started up my own online business less than a year ago and have done close to 30k in sales (60% profit averaged) so far. I’m only 20 years old but I’m really interested about investing my money into real estate and hope to one day reach a level where I can fully support not only myself but also my family. Any tips for someone who is literally just starting out (this is the 2nd video I’ve watched about real estate) would mean the world to me!!! For now, I’m going to keep watching your videos and increasing my knowledge base. Cheers from Mississauga :)
Thanks Morad for watching! My first tip would be to binge watch every one of my videos (and then share them on social media) 😂. Depending on what type of learner you are I would consider listening to bigger pockets podcasts (once you get accustomed to the jargon, you can listen at 2x speed) I would also highly recommend reading rich dad poor dad, the millionaire next door, and early retirement extreme. Also bigger pockets has an amazing online forum that has region subforums - I would then learn as much about your subregion from there - and also ask questions and engage with local investors. Then I would start netowrking going to local real estate investor meetups (look on meetup, facebook and bigger pockets for various groups)... Actually I think I'll do a video on this topic as well.
Morad Al-Muhandes what’s your online business?
Matt- have you read The Millionaire Fast Lane?
Hey Matt Great video series.... lots of clear info with real hands on examples. Is there any where I can find your excel files for analyzing brrrr strategies as well flips, holds etc..... I remember one of your videos you said there was a link in the comments but I cant seem to remember which one! Thanks!
Just bought my first this week - need to figure out where to focus that reno budget to get the most bang for my buck!
Also, I hope you don't mind that posted a link to this in MMM.
Oh. It was you.
Congrats on buying your first income property! What are the details on the property?
In Part 3 of the series I'm planning to go over in detail my renovation budget and why I focused on the areas I did.
In general though (besides the obvious best return on your buck - which is almost always repainting), two of my favourite renovations are adding dishwashers and laundry to your units. In my market you can frequently charge $50 more a month if your unit has a dishwasher and $50-100 a month if it has laundry vs a comparable unit. In addition to getting higher rents, these renovations don't need to cost much. I buy used appliances on kijiji - usually focusing on buying from families/couples that our upgrading white appliances to stainless steal, or just upgrading to the newest version of SS. I believe (and have found in my experience) that these upgrades to your rental units will also attract a higher quality tenant who is more likely to treat your property like a home (vs a temporary place to stay) resulting in lower turnover as well!
Found it! Thx for responding.
Thanks Tyler for watching!
omg I NEEDED THIS SERIES! this is exactly what i want to do but i just didnt know how to do it! Im in Sudbury ON where the city is starting to develop and i want to get in while housing is still cheap. I liked the step by step in ROI in this video. Im not too sure what exactly to look for in my first home but i will use a realtor. Question: Is buying private a better way to go? to save the expense of closing costs and what not? How do i go about getting an inspection and what should i be looking for? Where else do i risk on making a wrong turn when buying my first property?
Private is usually the way to go, because it results in a better deal. (Because of information asymmetry). Checkout my video's on private deals or wholesaling real estate to learn more about real estate investing.
Enjoyed your video
What part of the reno usually ends up costing the most? Floor? Labor?
It obviously depends project to project - that being said - Labour can be quite expensive part of any renovation project - but as far as specific surprises that can end up costing a lot is foundation issues, old electrical or plumbing can be expensive (as you may need to open up wall/ceilings),
Matt McKeever alright cool. I move into my first property (a 1904 sq ft split level duplex built in 1979) and the unit i am moving into is going to need paint, new carpet, and i definitely wanna do a new bathroom for it. It has a creepy crappy little bathroom! I have about a $4-6k reno budget. Hopefully its enough! :)
Good luck with the Reno - let me know how it goes!
Great video, keep up the awesome info!
Thanks for the encouragement Paul!
Thank you for the information
On the Reno part did the amount you ended up paying for it was it all up front, got the money from a lender, buying it/material with money from a job? I need help on this part
hey Matt, just found your channel from a friend who is a fan of Bigger Pockets I am currently in Orillia Ontario, I'm fairly novice at the BRRRR process and real estate in a whole. do you only purchase in the city you live in or have you considered buying outside of London?
I personally only buy in the city I live in, that's a personal preference. I feel like I know London's RE market better than any other market (and part of that is living there, the rest is research). Ideally I'd like to have the majority of my investments in a market I understand thoroughly, and living in the market is a great way to learn it. That being said, I don't believe it's necessary. I've begun considering markets outside of London, and no doubt in the future will invest outside of London.
Aye! Shout out to bigger pockets!
I love BiggerPockets ----> and love the podcast even more! Best real estate podcast I have ever found!
Subscribed !
Thanks Ali!
🙌🙌
JUST FOUND YOUR CHANNEL, LOVE IT SO FAR... DID YOU PUT 20% DOWN ON THE PROPERTY? I HAVE 30K IN CASH AND I LIVE IN NYC I WANT INVEST AND MAKE MY MONEY WORK FOR MY FAMILY INSTEAD OF JUST BUYING A HOUSE TO LIVE IN.. DO YOU HAVE ANY TIPS?
What did you put down for the property? Or did you buy it for cash?
Hi Tommy, I put 20% down on the property. (80% LTV mortgage)
Hi Matt, really interested in doing this strategy to build up joined student housing rental units. Question, can you use a HML for the first purchase? I currently flip homes and I’m a GC so I can take on pretty much anything, I just don’t have a ton to put down on a conventional loan. thanks!!
Good stuff Matt. What do you use for video editing?
Thanks Henry - really appreciate that. I use Premier Pro - Highly recommend it though it is costly...
Found a property which is fairly cheap. The ceiling is around 90k whilst other houses around 0.5 miles are selling or have been sold for around 100-125k. What are other steps should i do to make sure its a good property worth doing the BRR. Any liats that you go down to berify if the property is good.Just starting out based in UK and in need of advice to get me in the right path thanks for all your help.
When using this burrr strat should i be using a mortgage with 20% down to buy my first property?
how it's possible to do 1% rule in the Ottawa area where any property like this will cost 400K$+++(before renovations) and you may rent it for around 2,5K$ (after renovations) ?
@Rajeev Vij what does it mean how? Check the MLS and Kijiji
MAtt, What do you think about investing out of state? I'm in NJ and I'm looking to invest in Jacksonville FL. (NJ is a horrible market - overpriced, way too much demand, high holding costs)
Hi, how much should I have saved for my first rental property? Currently, i have 19,000.
There's no blanker right amount. How much do you expect your property to cost, how much when reno's costs, based on your jurisdiction what are the financing options. For example if buying a multi family turnkey in london ontario and you plan to like in one of the units - need approx 5% for down payment on duplex, or 10% for triplex or fourplex. Hope that helps
I want to start small, 150k to 190k. I think if I have about 30k it should be enough for down payment, closing cost n some TLC.
Thanks for replying back
Hey Matt, i live in the MONTREAL, qc region could we connect and talk about a few things i’m looking in this BRRRR strategie and i need to talk with pros.
Might be able to reach him easier if you DM him on instagram. Just a thought 😀
How many properties you own?
I currently own 17 properties. - Though that a metric that doesn't really explain a lot. At the time of this video though - that property was my 7th.
What's the stigma?
Many people still think of the area as run down and uncared for. I think this was a result of the Dundas east commercial corridor falling into disrepair and many of the store fronts becoming vacant (the cause of this could be debated) which when there's a lot of vacant run down buildings - some of society's shadier characters are naturally drawn to the area. Regardless of what the old stigma was (and what caused it) I believe it's completely misplaced now. The area has a very vocal and involved community group, that is passionate about the area and committed to seeing it flourish to it's full potential. I think in 5-10 years, the Old East Village is going to be a, if not the, 'it spot' in London Ontario.
Hey man. Do you have a job? If not, how are you getting these loans so easily?
Hi Kent - Good question - without regular consistent employment income it can be very difficult to obtain financing for properties - that is why often full-time real estate investors eventually(inevitably?) begin to focus of partnerships/joint ventures. Later this year I'll begin documenting (in detail) how I have and will be approaching this problem/opportunity.
If you dont plan to rent then could you have sold and made a 30k profit.
Yes
I sold it 1 year later for 200k
Omg 723 likes and 1 dislike, what a f*@_#&ING GOD
Hahahahaha this comment made my day! 😂
Love this😂
Sorry you are creating a bigger mortgage and an extra mortgage so even bigger liability if cash flow from property doesn't add up to pay for the mortgage and extra mortgages you created. In a best case scenario of renting all your property every months. Now think about worse case scenario if none are rented or cash flow is not enough for many many possible reasons. Then you are looking for early bankruptcy and loss of everything.