All Forum Posts by: Francis Hermanson

@Gary McGowan

OK, so from what Im understanding now is to get a contractor come into the house, write up everything that needs to be done, and the price it would cost.  I'm assuming I can do the work myself and just get the appraiser back over once I've completed the renons.  So what I'm thinking is that really everything I need to do should only cost about $4000.  If the contractor writes up the quote for $12000 that would mean I would get the full $12000 back from the lawyer once the appraiser states that the work has been completed.  Am I understanding this correctly?

@Michael R.   

Unfortunately I don't see a partner coming in just yet.  But if I do ever need to make some major repairs I have my line of credit I can fall back on.  

Thanks for the advice guys! 

I agree that it would not be the wisest for me to liquidate all of my cash so I need to find another way.  

@Gary McGowan, with the Mortgage + Improvements that would mean that I have to front the reno costs and then prove to the lawyers that they are completed to get the 10% back?  So in this particular situation the mortgage will be $120,000 and I would get $12,000 of that back.  Would I get the entire 10% even if my renos will not add up to 10% of the mortgage?

Thanks again.

Hey everyone! Im a beginner real estate investor in Northwestern Ontario and have a few questions to ask.  Im in the process of buying a third property for $150,000 with a 20 percent down payment which would leave me with a mortgage of $120,000.  I keep reading and hearing from some people that if you can use as little of your own money as possible than that is the best way to go.  I like the sounds of that, but is that really the smartest way?  Here in Canada the banks will not give someone a mortgage for an investment property with less than 20 percent down, however, I have been looking around and may have found some mortgage brokers that know some lenders that will allow someone to have less than 20 percent down.  Right now, for my particular situation, if I put the 20 percent down I am liquidating basically all of my cash on hand.  Would it be the wisest for me to get financing with a lesser down payment so that I still have cash? Any comments and advice would be greatly appreciated.  Thanks a lot!