Mindflayers journey to 100k PMNI
You can tell I have been around for a while from my join date and number of posts. PMNI = Passive Montly Net Income.
I used to post on 2+2 and read here every day when I started (the poker threads) then i move to (business finance and investing) when I moved out of poker and into business and real estate. When my business plans started to work, i stopped coming here and reading/posting. I did visit frequently but i moved to (health and fitness), but that stopped as well when that started to work too!
My current goal is to make 100k per month in passive NET income. That may sound ridiculous, but my last goal was set too low and when I hit it I retired and it took me a long time to get my mind turned around.
I have been putting my notes onto paper and plans into action for about two years now and wanted a place to refine my plan and have anyone who follows poke as many holes into it as they can find; show me the weaknesses that I cannot see.
I am going try to post maybe 5 times per week at the start and go up or down from there depending on how busy i get.
Feel free to post, ask questions, even tell me I am full of it and it can't be done.
I look forward to having you follow me on my journey.
Cheers
1a) Waiting for Feb 4th close on this deal. Son finalized on a bank for mortgage.
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2) Delta Warehouse: No more emails to ex tenant. They did not reply after my last email. Preparing Civil Resolution Tribunal. Will be submitted this week.
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3) Equities Investing. Paperwork finished. Bank came back with extra 880k HELOC. Will be finalized/available in 2 weeks/beginning of Feb.
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4) Hamilton House. No update. Tenants are paying.
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5) Edmonton RE. Still looking at Edmonton and Calgary news. Still looking at RE in those areas.
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6) Registered for the AI January 28, 2024. Just waiting.
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7) RE meetups: 2 more this last week. Went over goal setting for 2025. Good exercise for many. I had/have all of my goals set up ahead of time. I added a couple more long term goals.
Had a talk by Professional Motivator (specializes in NHL goalies) but was giving talk to RE investors.
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8) Detroit homes: Same Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Waiting to do 2nd payout.
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10) Wainwright Storage. Nothing to report.
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#11) Sarnia Ontario. No update
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#12 Currently reading: Finished reading Blue Ocean Strategy and Journey to the Center of the Earth by Jules Verne. Currently reading Sapiens by Harari. Very interesting book.
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#13 Future Authoring program. Am thinking about applying for more jobs. I put this in my goals for this year, after I get a diploma in AI. Will be interesting to see if the AI stuff gets me a job.
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#14 Real Estate Agent's license. No action till after AI course.
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If there is a #15 it would all be document and tax preparation. Lots of it to do. .... LOTS.
1a) Waiting for Feb 4th close on this deal.
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2) Delta Warehouse: Filed a case with CRT. This is a big step. The reply says I will have to wait 1-2 months for a reply and date for submissions.
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3) Equities Investing. Not much going on here... will probably invest in RRSP's in 30 days or so.
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4) Hamilton House. No update. Tenants are paying.
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5) Edmonton RE. Still looking at Edmonton and Calgary news. Still looking at RE in those areas.
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6) Registered for the AI January 28, 2024. Just waiting.
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7) RE meetups: One online meeting coming up next week. One good result of going to these is that I got 3 new RE accountants to choose from.
My current Accountant's company was purchased by Doane Grant Thorton. A fairly large co. and they are charging about 1.5x what they used to.
For 1h tax advice... After accountants gave suggestions, I gave my point of view and after asking me how I got to that
position, they agreed with my decision. They charged me $700 for 1h to do what I already knew was the correct proceedure.
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8) Detroit homes: Same Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Waiting to do 2nd payout. Will likely be next week.
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10) Wainwright Storage. Nothing to report.
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#11) Sarnia Ontario. No update
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#12 Currently reading: Currently reading Sapiens by Harari. On page 260.
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#13 Future Authoring program. No new chapters yet.
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#14 Real Estate Agent's license. No action till after AI course.
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If there is a #15 it would all be document and tax preparation. Lots of it to do. .... LOTS.
6) Did my first AI class. Was more of an explanation and overview of how AI is getting into everything, especially content creation... Text, Photos.. Video.
Actually used AI for the first time to rewrite a review in a more professional way... was happy with/and used the AI version of the content.
7) Went to an all day RE investor meetup and got a great behind the scenes view of presales in my local area. Presales are really hurting in Toronto and Vancouver. There are great deals to be had.
So for a brief explanation of Presales: There is a difference between Canada and China. In China the full price is paid today for a presale that will be delivered in 3-5 years from now. In Canada usually there is a schedule of deposits that get paid on target dates: ie 5% at signing, +5% 30 days later, +5% 1 year later etc. Balance on delivery/closing.
Now take this presale in Vancouver as an example. (3 years ago) New units are selling for say $800/sqf. the unit is 800 sqf = $640,000 I paid my 15% $96,000. When I signed the deal, I estimated the interest rate at 3% and the bank would loan me 80% or $512,000. Fast forward to two months before closing. You go to the bank expecting they will loan you +$512,000.
Well there are two new sets of limitations:
First you have to pass the loan amount based on income. Based on your income of $100,000 they would loan you 5x your income; but that was based on the old interest rate of 3%, 3 years ago. Now the interest rate is 5.5% and they will only loan you $450,000. (just an example)
Secondly the bank will only loan you say 80% based on the LTV (loan to value of the property).. and now the value of the property is only valued at $580,000 based on the most recent sales. (prices are dropping due to the lack of buyers at the new higher interest rate) so now based on 80% of 580,000 the bank is only willing to lend you $493,000 and your contract says you need to pay (640,000 minus your deposit of 96,000 = $544,000) Taking the lower of the two limitations (Income or Value of the property the max the bank will loan is $450,000. I saved up an extra $30,000 in the last 3 years and with the expected $512,000 from the bank would make it to the required $544,000.
But now I need to come up with a total of $94,000 (an extra $64,000) or lose my deposit of $96,000!
This might not be a problem if you have deep pockets, but it is a problem for first time buyers. It is also a problem for investors that purchased +3 units at the presale and have to close on ALL of them at the same time. (not uncommon in my world)
Now what ends up happening is that the presale buyers with a contract to buy at $640,000 are selling them to a new buyer for $580,000 and taking a $60,000 loss instead of failing to close on the deal and losing their entire $96,000 deposit.
Ask if you have any questions.
1a) Deal closed. moving in day is Feb 23. Lots to buy. Also will look into an second option 1 year from now to rent the unit out as a Furnished suite.
There are guys that I know (Super Suites that specialize in that stuff)
The brief explanation of this is that there are 3 levels of rental.
Long term, +1year (is what I epecalize in and have a license for)
Short term.. Weekend Air BnB stuff.. 2-3x income of Long term, but there are many restrictions and high wear and tear on the unit.
Half way in between, = Furnished mid term rentals. This is a specialized industry that focusses on
inbetweeners. Sold a house .. looking for a new one, need to live somewhere.. or am waiting for my new home to be completed because of construction delays.. etc.
insurance claims (my 2+2 unit burned or flooded and Insurance is paying me for 6 months to live somewhere else while they complete repairs)
new to the city executives (corporate relocations/ ie. Seaspan-ship construction exec, High tech exec Microsoft, SAP, many others within walking distance)
Specific to the city high end rentals. (movie execs, here for a movie
These type of units rent for 1.5x Long term.. I will book a time to show the unit to the guys at Super Suites.
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2) Delta Warehouse: Waiting for CRT reply. I will notify the tenant on the 15th or so that I have filed a claim.
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3) Equities Investing. Same' Not much going on here
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4) Hamilton House. No update. Tenants are paying.
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5) Edmonton RE. Still looking at Edmonton and Calgary news. Still looking at RE in those areas.
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6) AI course is interesting. Started and continuing to use AI. Using it now to create/link photos of Images for a new company. Will also use it to develop the content of the company's online presence.
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7) RE meetups: Went to excellent meetup last weekend. Found 1 possible investment opportunity. "Hoarder House"
2.6M selling for 2.15M With 3 rental units.. Hoarder is on the main floor and will have to be evicted. Probably a 6m duration process; then another 2-3months to repair and restore unit to rent-ready status.
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8) Detroit homes: Same Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Paid out 2nd amount. Not much to do here until After June 30.
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10) Wainwright Storage. Nothing to report.
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#11) Sarnia Ontario. No update
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#12 Currently reading: Finished reading Sapiens by Harari. Currently reading 'One up on wall street' by Peter Lynch.
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#13 Future Authoring program. No new chapters yet.
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#14 Real Estate Agent's license. Booked Legal update course and Booked Ethics course. Both are required to be retaken every 2y.
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If there is a #15 it would all be document and tax preparation. Lots of it to do. .... LOTS.
1a) Son has essentially moved in. He is having a party at his new place with his friends tonight. Will start thinking about son #2... 2-3 years off, but thinking ahead anyways.
The Super Suite idea may or may not work. That company only focusses in an area that is farther east and they do not have any units in the downtown core.
They do have a network so I may be able to use them and pay a referral fee for a 'furnished suite' tenant.
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2) Delta Warehouse: Notified the tenant that I have filed a claim. Waiting for CRT to notify me of a hearing date.
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3) Equities Investing. Same. Market up.. Market down. I am not paying much attention as there is little for me to do in the short term.
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4) Hamilton House. No update. Tenants are paying. Check on Property declarations and taxes.
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5) Edmonton RE. Still looking at Edmonton and Calgary news. Still looking at RE in those areas.
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6) AI course is very interesting. As I got deeper into AI, i learned that the next step is 'Agents.' Essentially a combination of multiple AI No Code tools combined to do a single or many tedious and repetitive activities on your behalf. My final assignment was a real estate 'Bird Dog' agent. The design is to go daily to multiple websites, scan for new RE listings that meet my requirements, scrape the critical data, add a line to my spreadsheet with the data, create a report on that property and then notify me that a new listing has appeared in X city , with Xy units, for $ZZZ. etc.
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7) RE meetups: Another great meeting this month. One of the speakers was a girl (50y old) with +100 units that wrote a book with
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8) Detroit homes: Same Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Nothing to report.
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10) Wainwright Storage. Nothing to report.
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#11) Sarnia Ontario. No update
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#12 Currently reading: Finished reading 'One up on wall street' by Peter Lynch. Currently reading 'Twilight of the Idols' Nietzsche and Shrodinger's cat.
Twilight of the Idols is way above my head. there are too many cultural and time specific references that he uses as well as French and Latin idioms?
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#13 Future Authoring program. No new chapters.
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#14 Real Estate Agent's license. Booked Legal update course and Booked Ethics course. waiting.
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If there is a #15 working on tax preparation. T4a's T5's, K1's the number of US forms is somewhere around 5-8
#12 Currently reading:
Twilight of the Idols is way above my head. there are too many cultural and time specific references that he uses as well as French and Latin idioms?
Gotta finish 'scanning this book.' I read every word but it does not make too much sense without having to stop and translate and then think about what
is being said. here is a sample of things i need to think hard on from 4-5 pages otherwise I have no idea what is being said. Even with translation, I
am pretty sure I am missing 80% of the meaning.
Easy
Pandora's box
Caesar Borgia
Intermediate
Assyrians from without
desideratum
deny Schopenhauer
He might seem a little outre.
casuistry of a psychologist
Hard (need to google meaning for sure)
yo me sucedo a mi mismo
tamquam re bene gesta
Brahmins understood this
pur et vert
iniqutous privilege
partie honteuse
que j'aie et tant d'esprit
amor intellectualis dei
Has nobody found Schiller out yet?
Kant and his 'backstairs philosophy
Here is a sample verse:
Schopenhauer the last German who is to be reckoned with
(Who is a European event like Gothe, Hegel, or Heinrich, Heine,
and who is not merely local, national) is for a psychologist a case
of the first rank: I mean as a malicious through masterly attempt
to enlist on the side of a general nihilistic depreciation of life, the
very forces which are opposed to such a movement, - that is to say,
the great self-affirming powers of the 'will to live', the exuberant
forms of life itself.
Wut?!?
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#15) Working diligently on getting my tax forms and reports prepared to send to my accountants.
