Access to additional funds in Canada
Hi folks,
I'm in Calgary, AB here, already got 3 mortgages with the big 5 banks. I don't have much more room left for accessing conventional financing. Looking to see what additional ways I can access capital. I know the rules in Canada are quite different than the US so if anyone has some tips, please let me know! Thanks!
Quote from @Stevo Sun:
Hi folks,
I'm in Calgary, AB here, already got 3 mortgages with the big 5 banks. I don't have much more room left for accessing conventional financing. Looking to see what additional ways I can access capital. I know the rules in Canada are quite different than the US so if anyone has some tips, please let me know! Thanks!
That's not that many I'm at 5 right now, the main issue is being able to keep qualifying in terms of DCR as a lot of lenders discount your rents up to 50%. Shop around (I would recommend working with an investor-focused mortgage broker) or CIBC for example does up to 12 (they don't have a broker channel though)
Quote from @Anthony Therrien-Bernard:
Quote from @Stevo Sun:
Hi folks,
I'm in Calgary, AB here, already got 3 mortgages with the big 5 banks. I don't have much more room left for accessing conventional financing. Looking to see what additional ways I can access capital. I know the rules in Canada are quite different than the US so if anyone has some tips, please let me know! Thanks!
That's not that many I'm at 5 right now, the main issue is being able to keep qualifying in terms of DCR as a lot of lenders discount your rents up to 50%. Shop around (I would recommend working with an investor-focused mortgage broker) or CIBC for example does up to 12 (they don't have a broker channel though)
Oh that's good news, gives me some hope. Do you have any suggestions for inventor focused mortgage broker here in Calgary?
@Stevo Sun Banks are only one source of financing. I haven't had a mortgage with a bank in at least 15 years. I get all of my financing from the sellers and they don't put any limits on how many mortgages you can have or care about your DCR.
Quote from @Stevo Sun:
Quote from @Anthony Therrien-Bernard:
Quote from @Stevo Sun:
Hi folks,
I'm in Calgary, AB here, already got 3 mortgages with the big 5 banks. I don't have much more room left for accessing conventional financing. Looking to see what additional ways I can access capital. I know the rules in Canada are quite different than the US so if anyone has some tips, please let me know! Thanks!
That's not that many I'm at 5 right now, the main issue is being able to keep qualifying in terms of DCR as a lot of lenders discount your rents up to 50%. Shop around (I would recommend working with an investor-focused mortgage broker) or CIBC for example does up to 12 (they don't have a broker channel though)
Oh that's good news, gives me some hope. Do you have any suggestions for inventor focused mortgage broker here in Calgary?
Yes I would recommend giving a call to Layne Walters
Quote from @Doug Pretorius:
@Stevo Sun Banks are only one source of financing. I haven't had a mortgage with a bank in at least 15 years. I get all of my financing from the sellers and they don't put any limits on how many mortgages you can have or care about your DCR.
How do you manage to get seller financing all the time? What type of properties are you getting? I've asked some real estate investors locally and when I asked if they would consider seller financing the answer is generally no. Their view is that why would they take on the credit risk, they much rather just cash out and use it for another project.
Quote from @Stevo Sun:
How do you manage to get seller financing all the time? What type of properties are you getting? I've asked some real estate investors locally and when I asked if they would consider seller financing the answer is generally no. Their view is that why would they take on the credit risk, they much rather just cash out and use it for another project.
Although there may occasionally be deals to be had buying from retiring fellow investors my experience has echoed yours. Active investors aren't motivated sellers. If you want to buy from landlords you need to find the accidental ones, the ones who don't want to be landlords at all but got stuck with a house they couldn't sell and had to rent.
All deals begin and end with finding motivated sellers. FSBOs and expireds are my top sources. I exclusively purchase move-in ready houses that I can resell on terms and make a spread on both the price and the cash flow.
Quote from @Doug Pretorius:Is there a place where you can find FSBOs? I'm in Calgary, so might be different locally but I'm not aware of good sources for FSBO. Am I just missing something.
Quote from @Stevo Sun:
How do you manage to get seller financing all the time? What type of properties are you getting? I've asked some real estate investors locally and when I asked if they would consider seller financing the answer is generally no. Their view is that why would they take on the credit risk, they much rather just cash out and use it for another project.
Although there may occasionally be deals to be had buying from retiring fellow investors my experience has echoed yours. Active investors aren't motivated sellers. If you want to buy from landlords you need to find the accidental ones, the ones who don't want to be landlords at all but got stuck with a house they couldn't sell and had to rent.
All deals begin and end with finding motivated sellers. FSBOs and expireds are my top sources. I exclusively purchase move-in ready houses that I can resell on terms and make a spread on both the price and the cash flow.
Quote from @Stevo Sun:There is not a lot of FSBO in Calgary, very small %, some of them are listed on MLS as "mere postings", some on Kijiji, Facebook, Purple brick, some are on FSBI websites but again there isn't many. I know some people find ways to make it work but in my experience the only sellers willing to do seller financing are extremely desperate and on properties I wouldn't want to buy anyway, it is however much more common in the business acquisition world.
Quote from @Doug Pretorius:Is there a place where you can find FSBOs? I'm in Calgary, so might be different locally but I'm not aware of good sources for FSBO. Am I just missing something.
Quote from @Stevo Sun:
How do you manage to get seller financing all the time? What type of properties are you getting? I've asked some real estate investors locally and when I asked if they would consider seller financing the answer is generally no. Their view is that why would they take on the credit risk, they much rather just cash out and use it for another project.
Although there may occasionally be deals to be had buying from retiring fellow investors my experience has echoed yours. Active investors aren't motivated sellers. If you want to buy from landlords you need to find the accidental ones, the ones who don't want to be landlords at all but got stuck with a house they couldn't sell and had to rent.
All deals begin and end with finding motivated sellers. FSBOs and expireds are my top sources. I exclusively purchase move-in ready houses that I can resell on terms and make a spread on both the price and the cash flow.
Quote from @Stevo Sun:
Is there a place where you can find FSBOs? I'm in Calgary, so might be different locally but I'm not aware of good sources for FSBO. Am I just missing something.
Kijiji, craigslist, facebook. @Anthony Therrien-Bernard is right that most of them list with flat fee brokerages these days so you need to work with an agent to send you those listings. Same with expireds. Here in Ontario expired data is public which makes it a little easier.
How can we view expired listings, if you do not have realtor license
Quote from @Krishna Ambilwade:
How can we view expired listings, if you do not have realtor license
I don't believe you can view them through realtor.ca, so the best course of action is likely to contact a local agent and ask them to prepare a list for you in your local area. If you provide some information and explain that you aren't working with a broker currently they should be happy to help with an eye for obtaining your business should you go a more traditional route.
Quote from @Krishna Ambilwade:
How can we view expired listings, if you do not have realtor license
Are you in Calgary?
