My name is Steve, I'm 33 and live in Ontario, Canada. I'm working full time with minimal expenses and looking to get started in real estate ASAP.
I've been hanging around the bigger pockets site/podcast/YouTube channel for about a week or so now and my main areas of interest are BRRRR and Wholesale (Only interested in Wholesale to raise funds as a necessity)
I have nothing in the way of savings currently, but I am debt free and have access to a $50k Line of Credit (Unsecured/ 7.5%). I mention this because as I stated earlier, I am EAGER to get started and if there are things I can be doing now with my current resources I would like to know.
Any and all thoughts welcome, I'm just looking for some advice on some action I can take specific to my situation. Don't worry, I'm not going to do anything stupid without doing my due diligence beforehand, but this post is being made in the spirit of taking action and I intend to keep that ball rolling.
Thanks in advance everyone, glad to be here.
@Steve Marion I have never been a wholesaler, but based on the exceptionally few emails I get these days from wholesalers, and the sheer number of them all chasing the same deals in the same markets, I am guessing it is a very challenging business.
Now getting started, if you have secure income and access to credit lines, you are already doing reasonably well. First, I would focus on building your savings. Real estate is a slow and steady game for most, and requires a lot of capital.
In the strong market we are in, I am a big proponent of fix and flips. Rental rates have not been keeping up with property costs, so the margins keep getting squeezed, right now, on rentals. Plus, a fix and flip will likely put more cash in your pocket faster. Depending on your unsecured line, you may be able to use that as a down payment and have a hard money lender behind for the mortgage on the property, which could get you a property sooner. But start talking to lenders (google fix and flip loan and your market, or hard money loan and your market...) and start calling.
@Evan Polaski thank you so much for the reply! (The @ mention doesnt seem to want to work so I hope you see this)
I have been looking up the local lenders in the area and reading their websites, I'm going to take your advice and give them a call. I had the same thought as far as using the line of credit to get a hard money loan, I'm just going to have to find out whether it's feasible or not with minimum payments and such. Will also investigate fix and flip possibilites.
You should joint venture.. perhaps use your line of credit fund a downpayment. You can also learn a lot about the project at the same time. Pick the brains of your partners
@Evan Polaski Looks like it will let me @ you on my desktop but not on my phone. My earlier reply is above ^
@Hai Loc I agree, I'm definitely open to teaming up with other investors. Connections can definitely be very helpful when learning.
I see you're based out of Toronto, I'd love to connect and pick your brain on Ontario specific matters.
Thanks for the reply!
Hi Steve. I’m also in Ontario, based out of London and invest in London. I’m also a mortgage agent with dominion lending, and get involved in quite a few creative financing situations.
Interesting spot you are in, for rentals, standard financing everyone would want 20% down payment.
But there are some private guys who could get you down to 10% down payment, but most private lenders still want to see some equity in the deal, so they are protected. Your first property on a flip, you may want to consider taking on a partner. Where they bring the money in.
There are a lot of options to get in the financing. Feel free to PM me if you want to chat some more about it.
Originally posted by @Tyler Stiller :
...But there are some private guys who could get you down to 10% down payment, but most private lenders still want to see some equity in the deal, so they are protected. Your first property on a flip, you may want to consider taking on a partner. Where they bring the money in.
There are a lot of options to get in the financing.
This all sounds very intriguing, I'm absolutely going to be reaching out.
Thanks for the reply Tyler!