Lunenburg, ON · Member since 2018 · 15 posts · 4 votes
Hi everyone!
I just finished reading @Brandon Turner's book, and am in the middle of @David Greene's BRRRR. I just bought my first real estate deal and I'm planning on using the BRRRR method. I live in Canada. Are there any other Canadian investors that use the BRRRR method? Are there any differences in Canada than what Brandon and David talk about in their books?
The practice of buying an unloved property at a good price; forcing appreciation by updating the business (modernizing the property and increasing the net revenue); and refinancing the now more valuable property/business had been around a long-time before it received the BRRR acronym.
You can do this in Canada just as well as in the U.S.A. There are no real differences outside of the regular discretions in finance, taxation and regulation between the two countries. You will find that refinancing may actually be easier here in Canada as there are not the same wait periods you frequently encounter in the U.S.A. ... we've refinanced properties in as little as 45-days after purchase.
The practice of buying an unloved property at a good price; forcing appreciation by updating the business (modernizing the property and increasing the net revenue); and refinancing the now more valuable property/business had been around a long-time before it received the BRRR acronym.
You can do this in Canada just as well as in the U.S.A. There are no real differences outside of the regular discretions in finance, taxation and regulation between the two countries. You will find that refinancing may actually be easier here in Canada as there are not the same wait periods you frequently encounter in the U.S.A. ... we've refinanced properties in as little as 45-days after purchase.
@Jessica Vanderveen agreed w Roy. It’s very doable. I’ve recycled savings from a teacher salary 8 times now. I don’t buy cash though. Wasn’t an option in my market. I use 2-3 year terms (25yr amm) and generally between cash flow, paydown, and forced appreciation I have all or nearly all my investment back. Rinse & repeat. Once you’ve got 4 or 5 you’re basically refinancing something every year. Again, depending on market your mileage may vary. Right now in the west, appreciation is essentially forced only.
Specialist · Mortgage Broker Canada · Member since 2015 · 316 posts · 118 votes
7y
@Jessica Vanderveen We live in Vancouver and our strategy is buy and hold. We leverage one property to purchase the next one, rinse and repeat. Did you get a combined mortgage & HELOC? A heloc, the most under-utilized financial tool can be used as down payment for the next property.
Rental Property Investor · Chilliwack, B.C. · Member since 2015 · 115 posts · 37 votes
7y
I do the same as mentioned above; my skills as a carpenter help with the appreciation. If you are a DIY'er don't bite off more than you can chew on the rehab portion; it is definitely not as easy as it looks.