Understanding affect of VTB on a mortgage

[Shiv Dutta]

Hello everyone, 
   I have found a deal, but its a portfolio of 23 units spread across multiple buildings. asking for around 1.7m. Cashflow is not very great, its around $1200, and its way overpriced (hard to find good deals these days). But the vendor may accept VTB of 15%. 

So I wanted to understand the deal and numbers. I approached RBC, with this VTB, but they told me that I would need my cash of 25% anyways.

I was expecting if I get a 15% VTB then I may have to come up the rest of 5% to 10% (to make it 20% or 25% down). obviously I am new to VTB, so my understanding is limited in this. Hoping to have someone who has done this many times to guide me to understand this. 

regards

Shiv

647 862 2434

[Chris Baxter]

Have a read through this.... https://www.canadianrealestate...   Your bank will want first position and may limit the VTB (second position) contribution.  

Work with a broker instead of one of the big banks to get a better picture of what's possible.

As a bit of advice, it sounds like you are trying to justify a bad deal with the hope of creative financing. A bad deal is still a bad deal... don't let FOMO force you into something stupid.