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Has anyone had a try at DIY?

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Real estate Pat | 03 Nov 2014, 09:55 AM Agree 0
Has anyone had a try at DIY or is it worth paying the $$$? It just really cuts into profit, but then again do I need the headache? Let me know if anyone has tried DIY – I have just bought a duplex which I am about to rent, so hopefully this is just the start of my HUGE property empire.
  • EZreelty | 05 Nov 2014, 03:40 AM Agree 1
    DIY will work just fine if you have a one-off and this is NOT a condo or strata act property and like to be like family and close to your tenants, are semi retired or your partner can hear all your tenants stories and troubles...and bonus, you are all such great friends your tenants can call you first and not 911.
    So there IS a management fee after all. You can figure what your time is worth and if your time is worth zero...well what a crummy investor you are...I know. The truth hurts.

    OK and if you are getting into the Condo/Townhome, or Condo/Strata act investment business...just don't do it as a DIY...Don't, and avoid all self managed developments too.

    The laws for non profit strata and condo act corporations are becoming very complicated and that includes for renters too, and when you get hit with your first ten thousand dollar asset freezing Special Assessment notice you will really take cash flow hit.

    I am not doing this to scare you but to "AWARE"you.

  • mathisbenjamin | 25 Nov 2014, 06:10 AM Agree 0
    When it comes to real estate, DIY must be avoided. Always go for professional advice, otherwise you will not get the exact value . Do a free home evaluation from real estate agents. This will help you get a better idea about your home. They provide you with certain home staging tips so that the customers will be attracted towards your home.
  • ThreeNorth | 09 Dec 2014, 11:23 AM Agree 0
    If you are referring to managing the property, DIY is the way to go when you start out. As long as you have a good support system/ team: a good lawyer and strong paperwork, a good realtor that you can lean on for advice on PM, etc., you can save yourself anywhere from $150-$1500 a month, depending on quantity and revenue. just brush up on your Tenant/Landlord Act, and make sure you follow everything by the book on your end.

    Certain provinces ( like Alberta) are landlord friendly, and dealing with tenants is easier if problems arise. With proper screening, you lower your risk, and set yourself up to not only learn valuable aspect of real-estate investing, but also retain net income, that you can roll into your next property, to build your said HUGE property empire.

    I have seen many people manage 5 properties ( up to 8 doors) in their local market effectively, all while retaining their full time job.
  • Gregr | 08 Jan 2015, 02:53 PM Agree 0
    We started our DIY management four years and 13 properties ago. Still work full time and would definitely recommend it especially when starting out. Just make sure you do your homework first and as stated above have a strong support team.
  • alexiscooper5 | 15 Jan 2015, 04:13 AM Agree 0
    What DIY Management?
  • Robert Harrington | 03 Feb 2015, 04:50 PM Agree 0
    Oh do not do this please.
    The small management fee is nothing compared to getting your ass licked by CRA because no one knows the tax rules or worse, thinks they know the tax codes and how to get around them to save the condo owners money.
    And don't even GO there if you have a special assessment because for sure your self managed folks will not have a clue on how to navigate condo rules to affect a proper mortgage and will just stick every owner with a 10K assessment bill or more.

    Please pay the pittance that averages about $200 a month for management fees..the rest of your condo fees are generally for A/C, cable, concierge and other monthly charges.
    But Buying and selling condos...For that definitely do it yourself as the average realtor has no clue or training starting with the fact the agent is given ZERO training and cannot read a simple financial statement and you are buying assets including debt when you are buying condo and strata act homes.
    So use a lawyer and home inspector and pass on paying huge commissions for realtors who know nothing.

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