Rental Property Investor · Montreal, Quebec · Member since 2014 · 100 posts · 42 votes
Hey Fellow BP members,
I'm so excited! I just purchased my 3rd SFH in Montreal, Canada 3 weeks ago. I purchased the property for 165K, however it's worth more like 200K in it's current condition. It came with tenants & the cashflow is decent. The best part about this deal is that I actually didn't have to come out of pocket at all. The bank took a lien on my 2nd property for 20% which means that I didn't have to take out mortgage insurance through CMHC & I didn't have to come out of pocket. I also worked out a deal with my real estate broker & the bank broker whereas they would split the costs for my notary.
I'm so happy with how this deal turned out. I have a beautiful house that is already cash flowing & It didn't hurt my back account at all. :) I'm looking forward to my next buy & hold. Hopefully I'll be just as lucky the next time. It's awesome trying to figure out creative ways to save money. On to the next one... Hopefully Jan/Feb 2016!~
If you don't mind me asking, how does it work when the lender puts a lien on a previously purchased property? I'm assuming your 2nd property is owned out right? or does your 2nd property have enough equity to cover the 20% of itself AND 20% of the 3rd property? I am very interested in learning options for not having to put a lot out of pocket. Thanks!
Congratulations @Lisa Perez. I have the same question as Danny. How did that 2nd lien work?
So does the bank effectively finance you 100% of the purchase price and just place a lien against your other property as collateral? I'm not sure I understood the details. Is the interest rate consistent with standard conventional loans of 80% or did you pay a premium to secure the 100% financing?
Thanks for letting me pry! This is very interesting to me.
I'm so excited! I just purchased my 3rd SFH in Montreal, Canada 3 weeks ago. I purchased the property for 165K, however it's worth more like 200K in it's current condition. It came with tenants & the cashflow is decent. The best part about this deal is that I actually didn't have to come out of pocket at all. The bank took a lien on my 2nd property for 20% which means that I didn't have to take out mortgage insurance through CMHC & I didn't have to come out of pocket. I also worked out a deal with my real estate broker & the bank broker whereas they would split the costs for my notary.
I'm so happy with how this deal turned out. I have a beautiful house that is already cash flowing & It didn't hurt my back account at all. :) I'm looking forward to my next buy & hold. Hopefully I'll be just as lucky the next time. It's awesome trying to figure out creative ways to save money. On to the next one... Hopefully Jan/Feb 2016!~
It sounds like you've found some interesting ways to buy property with very little money down! I have some money to put down, but can't seem to find houses for a decent price that will cash flow well. Do you find being in the real estate industry really gives you the inside scoop? Do you have any advice for someone looking for a good deal who is not in the industry?
Great job @Lisa Lavie! I am currently exploring creative ways to use equity to finance future investments! Did you lender required 2-3 months of cash reserve for your current properties in addition to 6 months reserve on your new property?
that is my dream!congrats!.i want to land my first property with a hard money lender and flip it.i'm very good at marketing and finding solid leads.starting to build buyers and seller list.how would i go about finding distress properties
congrats your at a place I hope to be soon ,it's always nice hearing that someone reached there goal and succeeded and is now onto the next one :) very inspiring
Very nicely done. Question though: Had you taken the 2nd mortgage out on say your personal house in the form of a HELOC... and you got the HELOC before you bought the property in question.... would you call that no money down?
It seems to me that you did put money down on this deal, you simply happened to have that money in the form of untapped equity in another property.
Your testimony here is so enriching. I am in Montreal now and I am starting to get into wholesaling properties and then investing. I am currently looking for rehabers and cash buyers to see what kind of property they are looking to invest in as per an EXCELLENT article I read from Bigger Pockets...Once again thank you for this inspiring story.