Comments on: Six Steps to Finding Cashflow Creek (and two bonus steps) http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/ REIN, Real Estate, Stats, Music and More Wed, 08 Feb 2012 23:34:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: 10 Great Articles on Real Estate from ChrisDavies.ca | Chris Davies http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-2925 10 Great Articles on Real Estate from ChrisDavies.ca | Chris Davies Fri, 14 May 2010 23:20:30 +0000 http://chrisdavies.ca/?p=73#comment-2925 [...] Six Steps to Finding Cashflow Creek This was one of my favorite posts to write because of the great feedback I got. I know of atleast two cases where people tried using this method to screen properties and ended up buying the properties they found. I also helped convert several people to firefox, which also makes me happy.   [...] [...] Six Steps to Finding Cashflow Creek This was one of my favorite posts to write because of the great feedback I got. I know of atleast two cases where people tried using this method to screen properties and ended up buying the properties they found. I also helped convert several people to firefox, which also makes me happy.   [...]

]]> By: Canadian Real Estate Invesment Training with Don R. Campbell in Toronto Ontario | Chris Davies http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-1681 Canadian Real Estate Invesment Training with Don R. Campbell in Toronto Ontario | Chris Davies Mon, 06 Apr 2009 05:47:56 +0000 http://chrisdavies.ca/?p=73#comment-1681 [...] Real Estate Prices Since 1962 (23)Six Steps to Finding Cashflow Creek (and two bonus steps) (12)What to do with dead tenants (7)Canada Loses 129,000 Jobs - Alberta Loses 200 (7)Interactive [...] [...] Real Estate Prices Since 1962 (23)Six Steps to Finding Cashflow Creek (and two bonus steps) (12)What to do with dead tenants (7)Canada Loses 129,000 Jobs – Alberta Loses 200 (7)Interactive [...]

]]> By: Most Popular of 2008 | Chris Davies http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-992 Most Popular of 2008 | Chris Davies Tue, 06 Jan 2009 01:18:21 +0000 http://chrisdavies.ca/?p=73#comment-992 [...] Real Estate Prices Since 1962 (17)Six Steps to Finding Cashflow Creek (and two bonus steps) (11)What to do with dead tenants (5)Interactive Maps of Edmonton and Red Deer (5)Three reasons to [...] [...] Real Estate Prices Since 1962 (17)Six Steps to Finding Cashflow Creek (and two bonus steps) (11)What to do with dead tenants (5)Interactive Maps of Edmonton and Red Deer (5)Three reasons to [...]

]]> By: Real Estate Summber BBQ Topics | Chris Davies http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-911 Real Estate Summber BBQ Topics | Chris Davies Thu, 11 Dec 2008 03:51:40 +0000 http://chrisdavies.ca/?p=73#comment-911 [...] The sky is falling! Reality check from Don: No one buys ‘average Canadian real estate’. There are always going to be fluctuations, and that’s why we always plan long term, understand and focus on the unbiased economics. My family’s also been investing in real estate and managing properties since 1972, and we’ve seen the ups and downs. Newbies think that year after year is normal. Anyone can make money in years of 40% growth. I can make money in a flat market. How? Cash flow. [...] [...] The sky is falling! Reality check from Don: No one buys ‘average Canadian real estate’. There are always going to be fluctuations, and that’s why we always plan long term, understand and focus on the unbiased economics. My family’s also been investing in real estate and managing properties since 1972, and we’ve seen the ups and downs. Newbies think that year after year is normal. Anyone can make money in years of 40% growth. I can make money in a flat market. How? Cash flow. [...]

]]> By: Chris http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-26 Chris Thu, 17 Apr 2008 01:03:49 +0000 http://chrisdavies.ca/?p=73#comment-26 Great question Lesly, It's important to have a good idea of what type of properties you're looking at, and in what areas. I started by identifying some properties that fit the model and cash flowed, and then moved on to mortgage related information. This was while I was working on my investor binder, and I was pretty sure I'd qualify for most products. The best advice I can give it to get your own house in order. Get your binder done, check your credit, and make sure you're ready to take action. Get a mortgage broker on side (send them a copy of your binder to review and start to pre-qualify), and find a Realtor who can help you. Comfree can be a great source for properties that don't need a Realtor. Then start writing offers. You'll learn a lot by reviewing the quickstart materials, getting your binder ready, and investigating your first few properties. Great question Lesly,

It’s important to have a good idea of what type of properties you’re looking at, and in what areas. I started by identifying some properties that fit the model and cash flowed, and then moved on to mortgage related information. This was while I was working on my investor binder, and I was pretty sure I’d qualify for most products.

The best advice I can give it to get your own house in order. Get your binder done, check your credit, and make sure you’re ready to take action. Get a mortgage broker on side (send them a copy of your binder to review and start to pre-qualify), and find a Realtor who can help you. Comfree can be a great source for properties that don’t need a Realtor. Then start writing offers. You’ll learn a lot by reviewing the quickstart materials, getting your binder ready, and investigating your first few properties.

]]> By: Lesly http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-25 Lesly Wed, 16 Apr 2008 03:33:04 +0000 http://chrisdavies.ca/?p=73#comment-25 Chris, Wonderful information for a newbie like me. Just finished the quickstart program and started analysing the areas first. Even i drove around the spotted areas. Now, I to start the action, Should i first identify the property and start searching for realtor, mortgage and insurance agents? or I start with identifyig them first and the narrow down the properties having a positive cash flow. Regards, Lesly Chris,

Wonderful information for a newbie like me.
Just finished the quickstart program and started analysing the areas first. Even i drove around the spotted areas.
Now, I to start the action, Should i first identify the property and start searching for realtor, mortgage and insurance agents? or I start with identifyig them first and the narrow down the properties having a positive cash flow.

Regards,
Lesly

]]> By: Chris http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-22 Chris Tue, 08 Apr 2008 18:57:24 +0000 http://chrisdavies.ca/?p=73#comment-22 Hi Nick, You're very right that Rent-O-Meter has some kinks to get ironed out. There seemed to only be 100-150 properties in their whole Edmonton system, so it's important to use other websites too. I've worked in the industry so I'm usually just looking for confirmation of where I think numbers are, but rentedmonton.com, rentfaster.ca and gottarent.com can all be good sites to get more information. - Chris Hi Nick, You’re very right that Rent-O-Meter has some kinks to get ironed out. There seemed to only be 100-150 properties in their whole Edmonton system, so it’s important to use other websites too. I’ve worked in the industry so I’m usually just looking for confirmation of where I think numbers are, but rentedmonton.com, rentfaster.ca and gottarent.com can all be good sites to get more information.

- Chris

]]> By: Nick http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-20 Nick Sun, 06 Apr 2008 18:27:12 +0000 http://chrisdavies.ca/?p=73#comment-20 Hey Chris, great article! Just one question: You say in step #2 to actually zoom into the results of rentometer. I tried the website for Winnipeg and although it said the results were based on 102 rentals in the area nothing came up on the map. I thought maybe Winnipeg was too small of a market so I tried Edmonton and only 3 - 2 bedroom properties showed. Is there something I am missing? Thanks in advance! Hey Chris, great article! Just one question: You say in step #2 to actually zoom into the results of rentometer. I tried the website for Winnipeg and although it said the results were based on 102 rentals in the area nothing came up on the map. I thought maybe Winnipeg was too small of a market so I tried Edmonton and only 3 – 2 bedroom properties showed. Is there something I am missing? Thanks in advance!

]]> By: Chris http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-15 Chris Tue, 11 Mar 2008 18:58:56 +0000 http://chrisdavies.ca/?p=73#comment-15 Shaune, you're very right. I designed this and the resource to work as simply as possible. When I find a property that cash flows with a standard 80/20 down payment, it'll be a dead ringer with a little more down payment (or a larger reserve fund). I screen a little harder than some people, but I'm just picky like that. Shaune, you’re very right. I designed this and the resource to work as simply as possible. When I find a property that cash flows with a standard 80/20 down payment, it’ll be a dead ringer with a little more down payment (or a larger reserve fund).

I screen a little harder than some people, but I’m just picky like that.

]]> By: Shaune http://www.chrisdavies.ca/2008/02/six-steps-to-finding-cashflow-creek/#comment-14 Shaune Tue, 11 Mar 2008 14:55:36 +0000 http://chrisdavies.ca/?p=73#comment-14 Chris The spreadsheet is useful and similar to one I use. The amount of the down payment, of course, certainly influences the cash flow. With all the different types of mortgages available on the market and various down payment options, these factors need to be considered up front when surfing for properties. I have extra columns in my spreadsheet to reflect the amount of a down payment. I work with the mortgage amount as a basis for cash flow. The different down payment options then translate into the purchase prices that are in the range. It saves a calculation step since purchase price is the info on the listing. It also shows me the down payment amount required on the spread sheet. If I am limited to my down payment funds I don't spend time on properties that are out of my price range. Conversely, by putting a bit more down (JV money of course) an alligator can turn into a cash flow property. Chris

The spreadsheet is useful and similar to one I use. The amount of the down payment, of course, certainly influences the cash flow. With all the different types of mortgages available on the market and various down payment options, these factors need to be considered up front when surfing for properties. I have extra columns in my spreadsheet to reflect the amount of a down payment. I work with the mortgage amount as a basis for cash flow. The different down payment options then translate into the purchase prices that are in the range. It saves a calculation step since purchase price is the info on the listing. It also shows me the down payment amount required on the spread sheet. If I am limited to my down payment funds I don’t spend time on properties that are out of my price range. Conversely, by putting a bit more down (JV money of course) an alligator can turn into a cash flow property.

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