All Forum Posts by: Darren Horrocks

I agree with the other responses. Was the late fee originally a part of your lease agreement? If it isn't I would definitely include it. And then enforce the lease.

Also not a lawyer :)

Hi Angela,

I am actually in the middle of this process right now! I have refinanced one of my properties, and just closed on the refinance, and am now in the process of closing on the newest property using those refi funds.

From my experience, I didn't start the refinance process until I had an offer accepted on my next property. The reason being the cost to break my current mortgage before the term was up would get lower and lower the longer I waited to refinance. So by ensuring I had a property tied up under contract, I wasn't wasting any extra money to refi.

For this purchase, it is all 100% refi equity going into the down payment and closing costs. None of my personal savings or income.

To start the process I would first speak with a mortgage broker, and they will evaluate your Gross/Total debt service, and suggest alternatives to ensure you'll qualify for your next property mortgage after you refi, just because you have the down payment doesn't mean they'll loan to you. So get some solid numbers/answers. Then find a real estate lawyer to begin process. 

Goodluck to you!

 I am not sure about the US or maybe its different based on who the lender is, but I'm able to qualify my rental income on any legal registered units if I put a 20% downpayment. So the rental income is factored into my debt service. However, with 5% down that is not the case, the rental income can not be included. 

This is just my experience, and could definitely differ from area/lender.

Break away from the status quo of retirement wealth building. Develop patience, persistence, and always being aware of my emotions in order to ensure they are left out of each deal.

I've never used sites like these to generate leads, but i've been considering making one just to have a presence on the web for my own investing purposes. They are very customizable, and cheap. And EASY. Here is a great selection, so I'm sure you'll find something you like that you can tailor to suit your needs.

- http://www.wix.com/

-http://www.weebly.com/

-http://www.jimdo.com/

-http://www.squarespace.com/websites/

- I use carbonmadefor my fulltime job portfolio, but it is related more to art/photography 

http://www.darrenhorrocks.com

Hope this helps!

Hey!

When I was initially looking at areas to invest in, I found it very useful to look at the Affordability Index (Avg Purchase Price / Avg Gross household Income) to look at the "health" of an area or city. A low number means jobs are paying well relative to the price of housing, which creates a potential for increased future value. A high number means people are overextended, where their housing costs are a much larger percentage of their income. 

Other things like population growth, unemployment statistics, job growth, public transit, avg vacancy rates, transportation options (hwy, subway, buses, trains, airport) and proximity to each of those. Businesses and amenities, colleges/unis, attractions, institutions (places where tenants might work or play) and lastly demographics, are the type of ppl who reside there, people you want as tenants?

All of those things I think can help you make a pretty good decision. I'm sure other people with have better suggestions.

Hey! 

I would definitely seek some advice from a mortgage broker, try to find one that invests in RE. They will have a better long term outlook/strategy for you, and be able to give good advice. Also getting the process started will allow you to make offers on deals you spot, having less conditions than other buyers.

I chose to go the route of MultiFamily. More doors under one roof gives me a cushion against vacancy. Downside being more trouble to manage, /w maintenance and turnover likely being higher than SFH.

Also I'd try and go /w as low of a downpayment as possible, my first property I put 20% on, and it hindered my ability to jump right into my next property. 

Goodluck /w your hunt! 

Hey!

Just curious what peoples thoughts are on increasing your life insurance policy payout to keep covering the cost of newly acquired assets? Or does this seem redundant given the sale of those properties should cover the outstanding mortgages?

Brokers really push Mortgage Insurance, but I find term life insurance is much cheaper with less rules.

Thoughts?

 This is a great answer, and is how I have started analysing my deals. I believe it was mentioned in podcast 165, and I couldn't believe that I hadn't been doing that all along. Great way to find proper deals.

 Are you planning on doing anything /w this property in preparation? Or do you feel the effect wont be felt as drastically in the GTA and surrounding?

You are still able to pay 5% on the first 500,000. Anything above and beyond is 10% - will that significantly hurt the investor who is able to regularly deal in million dollar properties? 

CREA National Stats - Canadian home sales rebound in January