can good financing make an average deal a great deal

can good financing make an average deal a great deal

Banker · sydney, Nova Scotia · Member since 2008 · 100 posts · 8 votes

would you let great financing arrangements convince you do do a borderline deal. I'm not talking a 'dog' of a deal, but a solid property which has cash flow of $75.00 per unit on a 25 year mtg. I have a mtg broker who has a new mtg product which allows me to buy 2 unit buildings with 100% financing for 40 years. It would cost me about $3000 out of pocket to purchase a duplex. The only extra fee is an increased CMHC or Genworth fee of 7%. So for an example, if I found a property which would cash flow 50-75 per unit at 25 years but would cash flow $150 per unit at 40 years, would you do the deal. All im doing here is keeping any equity out of the house as mtg paydown and trading it in for cash flow. Is this a good idea.

steve

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  • Real Estate Investor · Portland, OR · Member since 2008 · 1k+ posts · 23 votes
    18y

    I don’t like the idea... Sorry! Find a better deal!

    Ask some of the people in foreclosure how they like their “fancy” loans...

    Better to not do a deal than it is to deal a deal that you regret!

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