Rental Property Investor 路 Montreal, Quebec 路 Member since 2014 路 100 posts 路 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!~
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
Awesome!... The best way to go about it is looking online, driving through your neighborhood, talk to local agents, etc. I always look online first & look at the pictures. My goal for these properties hasn't been to find distressed properties because I love finding properties that are easy to rent as is without much or any work at all however once I start getting into flipping, I'm going to be scouring to find the worse properties hheheh :) and the best way to do that is look online, I also look at craigslist listings. Best of luck with everything.
@Lisa Lavie, in case you didn't know you're the Success Story Spotlight of the day in today's BP newsletter :)
That's awesome. I had no idea. I don't think I get that newsletter. :-/ weird. Can you forward it to me if you still have it? Would love to see it... [email protected] is my email address. Merci Philippe
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.
I didn't refinance my 2nd property, they just put a lien on it in the event that I neglect paying the property, they would be able to force me to sell my 2nd property to pay for the 3rd. however nothing changes with my 2nd mortgage, I'm not paying a higher payment, interest rates didn't changed. It's still no money down the way I look at it.
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.
Cal
That's awesome Cal. Let me know how that goes for you. I wish you the best of luck with everything!!! :)
Hold on there, @Lisa Lavie - no money down is a scam. It doesn't work!
Ok, may be if you engage in a little cross collateral it works, but other than that NMD doesn't work...:)
If no money came out of my pockets including any closing costs at all, I call that no money down. Nothing changed with my interest rates & I'm not paying any higher on my 2nd property. Normally when you refinance a property, that reflects in your mortgage payments. This is simply a lien.
I assume you have some cash reserves for repairs or when you have tenant turn over or when a tenant decides not to pay their rent.
Good Luck
Thanks so much Bob! :) Yes, I keep cash reserves for all of my properties. Also all of the cashflow that I receive every month from these properties stays in their respective accounts. I never use a penny. I prefer keeping all of that cashflow in the event that something needs to be fixed or if I have a vacancy for a period of time. :))
How did you approach the bank to get them to accept to put a $20K lien on house #2? Did they bring it up?
What kind of banks would likely do that? Regional? Local? Is it a Canadian thing? Banks used to do this all the time in the US a couple of decades ago, but the housing bubble burst in the early '90s, or so I am told...
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!~
Lisa xoxox
Don't forget this is the US. Why a notary they cost like 25 bucks here.
@Lisa Lavie congratulations! That's got to feel great! I am searching for my first deal so I love to see the great outcome and the creative financing that works!
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
Awesome!... The best way to go about it is looking online, driving through your neighborhood, talk to local agents, etc. I always look online first & look at the pictures. My goal for these properties hasn't been to find distressed properties because I love finding properties that are easy to rent as is without much or any work at all however once I start getting into flipping, I'm going to be scouring to find the worse properties hheheh :) and the best way to do that is look online, I also look at craigslist listings. Best of luck with everything.
i'm currently working on whole selling a 3/2 house.there asking 69,000.it needs some work.how would i go about negotiating the price
It's going, I haven't been able to close on my first deal yet, but it's coming. I am actually looking further north at this time. The prices in this market has risen tremendously, so the buy strategy and exit strategy has to be right.
I would be interested to know which bank you used. Was it a major bank or a credit union? I've been looking into hard money and private lenders recently, but if I could put a lien on our first property to buy our second with a conventional mortgage that would save on interest costs. Knowing which bank or credit union you used would be good information to have to approach my own lender with.