Please tell us a bit about your background.
Our names are Xavier Martinez and James Kennedy . We enjoy any time we can spend doing things we like, with the people we love! We have been business partners for 10 years and have known each other for 25 years. From very early on in our elementary years, we knew we needed to make money and to take it further, if we wanted to succeed we knew real estate was going to be the solution. We purchased our first legal 2-unit dwelling back in 2011 and haven’t turned back. We invest in solid real estate projects that cash flow and as we progressed throughout our investing careers, we’ve taken on to the strategy of Buy-Fix-Refi-Rent.
Please describe one of your real estate investments.
Our very first rental property in Pickering was a simple transaction of an already legal 2-unit semi detached in Pickering. We borrowed the down payment off one of our dads, it was $20,000 and his only term was for us to pay it back plus $1500 in interest. We paid him off within 2 years of owning the property.
Where is the property located?
The property was located in Pickering, Ontario.
Are you the active or passive investor in this investment? How did you/your partner find this investment?
We were the active investors throughout owning this property. We found this property from a tired landlord who I had spoken with at my work.
What was the risks of this investment? What are the short and long term benefits?
With this being our first investment property purchase, our knowledge of real estate was limited. Our risks at the time was ensuring the rental income covered the expenses. Also, we knew there was renovations to be completed so it was a juggling act between getting the renovations done and managing the income/expenses properly.
Short Term Benefits: On-going mortgage paydown-Educating ourselves by actually doing-
Long Term Benefits – Appreciation-Cash flow-Mortgage paydown-invaluable lessons learned through property management- Equity build up to use elsewhere
How much was the original investment? What is the breakdown of your/partner’s investment?
The original purchase price was $324,000. Our mortgage was $319,000. Our partner had loaned us the 5% to purchase the property which amounted to $20,000 with $1500 in interest.
When do you/your partner get the original investment back?
Since this deal was structured back when rules were different, we were allowed to put 5% down and we personally did not have any of our own money invested. When the $20,000+$1500 was paid off, we were essentially making infinite return on investment.
What did you like or didn’t like about this particular investment? Would you recommend this investment to your friends/family members? What is the best advice to give to the readers?
We really liked the location of this investment property. From my recollection, we did not experience a vacancy in the 7 years we owned the property. The cash flow was great as well. What we didn’t like was that since this house was legalized before we had purchased it, the building code did not require certain things to be done. It wasn’t too burdensome but we knew the sound transmission controls weren’t the best and amongst other things. I would recommend this property to anybody! Over the years and familiarizing ourselves with various strategies, we would have asked for vacant tenancy and done all of our renovations at once.
If any reader wants to contact you, what is the best way to contact you?
James Kennedy – 905 550 1115 firstname.lastname@example.org
Xavier Martinez- 289 388 9370 email@example.com
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