RE:RE:RE:NEW HERE I am sorry to hear about your injury, Cash. Don't give up! Have you looked into physical therapy? I live amongst the best hospitals and research centres in the country, if not the world (Princess Margaret Cancer Research is ranked in the top 5) and I've personally seen people recovered from worst accidents. Mount Sinai Hospital has a huge facility dedicated specifically to physical and occupational therapy. Have you checked it out?
You piqued my interest with the farmland because I keep thinking about buying some these past months. But when I talk to a friend whose friend owns a farm, she said it's not easy. I will have to lease the land out and the fees are too low to justify the investment. I know I can't do farming. I have been very fortunate to have huge gardens so during the lockdown, I tried growing some vegetables and herbs. The taste is very different from the produce I buy at the markets. Quality is unsurpassed. But I had to give up this new hobby because I have extreme fear of worms. One time when I was picking through the vegetables, I saw a worm on a cabbage leaf and I screamed so loud that my neighbours came over because they thought I was in trouble. I never went back to gardening again. I have many questions about investing in farmland that I want to ask you, but seeing how difficult it is for you to type, I will have to pause here.
My portfolio is comprised mostly of funds like XRE, XIC, VTI, VWO etc. For a woman whose life was overshadowed by extreme privation, I can't afford to invest like a cowboy :-). I do pick individual stocks sometimes and so far I have gone from bagholding weed to bagholding gold.
You are fortunate to have support from your family. I can't complain because I feel that I have been very lucky myself. Over 10 years ago, I saw an incredible opportunity in Toronto real estate so I went to meet with a mortgage broker. He was a young man who was about to take over his father's business. He usually only oversees the operation, and has his staff meet with clients. But that day he took the time to talk to me. "How may I help you, Lily?" "I want to buy real eatate." "That's a great idea! Tell me about yourself and a bit about your finances." "I am a biochemist. I have been at my job a 4 years, making only 80k but I expect my career to take off. I don't own a car, so no car loans. I have no student debt. My education was paid for with scholarships. I have about 500k invested in equities that I'm ready to pull out." "How did you manage to save that much money at such a young age?" "All sweat and tears. I started working and saving at a very young age. All the years in school, if I wasn't busy blowing up a lab, you'd see me working somewhere. Even after graduation, I only rent a small, dingy, cramped basement apartment where I constantly find myself quivering in the middle of a shower because the water pressure was too low to keep it running. I have been a terrible child. I can't let my parents live like this anymore." "But with 500k, you can buy a house with cash." "No. I don't want to buy a house and live happily ever after. I want to buy as much house as I am allowed to leverage." "I will do my best for you."
The first house I bought was for 350k. I put 20% down. I moved the tenants in and at that time the banks considered the entire rent amount so the property was cash flow positive from the get-go. The second property I had to put down 35% on 425k purchase price. The third property 35% down on 450k. Jimmy told me to keep some cash on hand for contingency, but I decided to go all in. At this time, I decided to draw from my LOC of 50k to help fund the closing costs. Jimmy told me to borrow from him because he won't charge me interest. But I couldn't take a penny from him.
So Jimmy thought I was happy by the time the fourth property was closed on. But then I had to come to him and asked him to help me pull out the equity from the first property so I could buy another one. He was flabbergasted, "Lily, you're taking on way too much risk. If interest rates go up, you'll lose everything." "No sweat, my pet! I predict that low rates will be here for years to come, at least a decade long. That should give me ample time to plan my course." "But who's going to give you a mortgage? You're already too much in debt. Banks won't loan to you any more." He became pensive for a moment then assured me that he'd get it done. "I'll try my best for you, Lily." Then...the way he looked at me, the kind of affection that I knew I never reciprocate. The only kind of "handsome rewards" I could give him for his work was money. Brokers usually charge 1% of the mortgage amount, but I paid him twice as much. Jimmy refused, but I told him if he didn't accept it then I'd have to terminate our business. He wanted to continue seeing me so he had no choice. He helped me pulled out the equity of the three remaining properties to buy three more. Sometime I felt like he had the banks' CEO's cell phone on speed dial because no matter how tough the deal, he always got it done--with the biggest bank and the best rates. All I had to do was to give him the MLS listing and Purchase and Sale agreement and came to the office to sign the documents.
I won't go into the ending of my business relationship with Jimmy. It was emotional. As we all know the unravelling of the Toronto real estate market. The market never had time to catch a breath. It keeps on climbing...and climbing...and climbing higher. I am now seeing a semi-detached that I sometimes jokingly call half-a-house on a 24 ft frontage in the Annex selling for 6 millions (plus 300,000 land transfer taxes plus closing costs). 6.3 millions for a semi in the Annex. (21 Admiral Road, Toronto).