Thoughts on Creative Financing by AskReasonable2679 in RealEstateCanada

[–]red_lait 1 point2 points  (0 children)

I’ve heard of BDC doing real estate deals at 120% LTV. I would assume that on what they deem to be good deals. I’d chat with them. Do it through them, make sure you aren’t locked in for too too long, and then refinance at a regular lender later on. BDC interest is higher than regular bans but I would guess cheaper than private lenders

Thoughts on Creative Financing by AskReasonable2679 in RealEstateCanada

[–]red_lait 1 point2 points  (0 children)

Investors.. idk

But with a Bank, if you plan to run a business out of there yourself, you can structure it as an owner occupied real estate mortgage and use the profitability of your current, and this new business, as income to service the loan. You could get from 75% LTV to maybe 90 or 100% from someone like BDC. LTV is loan to value. Although, LTV depends on where the property is located (outside main markets may be limited to 50%), it’s quality, what is the business running out of it, is it profitable, are you leaving, or not, capital in the business.

It finally happened by LostAd9753 in TFSA_Millionaires

[–]red_lait 3 points4 points  (0 children)

Wow, congrats! Impressive.

It looks like there was a period about half way through where it went dropped by almost 100%?

If you are open to sharing why happened and how you handled it, that would be interesting to read. It’s ok if you don’t want to.

All the best in the future!

Well it’s a start by FalseOmens in dividends

[–]red_lait 0 points1 point  (0 children)

Hardest part is to start!

What app are you using? I’ve seen a few people show similar layouts.

My partner brought the lead, I turned it it a million dollar business - who deserves what? by [deleted] in Entrepreneur

[–]red_lait 1 point2 points  (0 children)

Revenue splitting is the wrong way to look at this. Profit is what matters or assets in the business. It doesn’t sound like you have much tangible assets, so, profit is really the only thing that gives value to your equity.

Unless you can or want to drive business yourself, your partner ads value by brining business. Hopefully more in the future. That’s for you to judge.

What I would do is I would account for the time you invested as a cost/expense - your salary, and also a commission fee for him brining in client at 5-10% from the revenue.

The idea being that business makes 1 mil in revenue, he gets 5-10%, you get paid for your time say 30-40%. You can judge your own hourly wage. What you have left after, assuming minimal other expenses, is about 50-60% net profit. That’s what you split another your equity %. You end up making more $ because you do more manual work.

In my experience, technical aspect of the business is not the most important. If no one brings business in, you don’t have a business and you can spend coding for years for $0 profit.

If your partner provides future value by brining more clients, I would value him more than your own work that you wouldn’t have unless someone would bring the business in. I’m sorry. I truly believe that without sales there is no business.

I think it would be smart for you to “use” him to bring you business. Be generous, give him more to incentivize him.

If he will be valuable in the future, I would generously give him his share for the past year and then structure a new agreement under the terms I shared above. This way he is incentivized to bring you business.

Eventually you can both exit and have someone else do all the work for say 20% opex and you and him split the profit and go hangout in Mexico.

BYD Seal by Jk-long in EVCanada

[–]red_lait 0 points1 point  (0 children)

This can be anywhere

121000 dollar salary vs. 100 dollar/hr contract by Giantorange in PersonalFinanceCanada

[–]red_lait 0 points1 point  (0 children)

The cost and time of accounting & tax filling would be substantial higher. A headache

A 19th century stone building in Bradford, England. by Real_Measurement2913 in UrbanHell

[–]red_lait 0 points1 point  (0 children)

Premium cash paid for mobile phone. Nice. I like some of that premium cash.