All Forum Posts by: Gary McGowan

Hey @Sumeet Rahal 

You will want to talk with people that have purchased those types of properties here in Canada...To see what they are using and doing. I'm having a meetup this Thursday and two of the speakers both own smaller apartment buildings. They are coming to speak on raising capital from Joint Venture partners and how to take action... 

PM me for details of the meeting... All the best. 

Craigslist is a bad resource up here in Canada. Kijiji being one of the best ones. 

You could always hire a PM to find a tenant although it usually costs the same as a realtor. 

Hey @Sumeet Rahal Great to have you here. Another Investor from the GTA is always welcomed! 

My advice is to dive deep into the info available, ask questions and listen to those that have done it!  What area are you thinking of investing? 

I have done many rent to owns in the GTA. What you are trying to do here is a sandwich lease option. Very rare in Toronto. First factor is the financing for the tenant buyer. Currently CMHC or Genworth will require them to have a min of 10% down when. This will be very hard to do based on your one yr deal with the current owners. You can get creative and get them a 80% ltv first mortgage with a 10% ltv second mortgage to stay away from an insured mortgage. Secondly. Most tenant buyers will need 3-4 years to create enough down payment and to get their credit score up. Thirdly. You must have two documents between you and the tenant buyer. Occupancy agreement and an Option to Purchase. Do not have one document for both. Fourthly. The agreement between you and the seller can be many different things. Use the same structure as above with some slight changes. Read this book. It's Canadian and written by a good friend of mine. http://www.amazon.ca/Investing-Rent-Own-Property-Investors/dp/047073759X

For all the reasons Roy N. mentioned those lists do not exist in Canada. If anyone claims to have one I would say it's bogus and very much out of date. Fyi. According the Canadian Bankers Association there are 4,653,235 residential mortgages in Canada and only 13,239 are in arrears. That's 0.28% of homeowners you are marketing too.

A few thoughts here. (I live and invest in the GTA)

The question here is will the money she has invested in the Condo work harder for her in another investment? You mentioned that it could. 

Doing rent to own in Canada is an option and I have done about 15 of them. Some of them very successful while some others were not. Rent to Own in the GTA usually works better on properties that do not carry condo fees. It may be difficult to locate a qualified RTO tenant.

As for appreciation the Toronto Market has moved very aggressive in the last 5 years. While some will say the Crash is about to happen others see it moving well throughout the next few years. Most doomsayers have been saying the crash is about to happen for over 10 years and it hasn't. Hate to wonder what they have missed out on because of not being in the market. While I think there is some slow down I do not believe it will go backwards. 

Seller Financing is very, very rare here as most people can get cheaper money through the Lenders. 

Without knowing the age and quality of the condo, rental rate would approx be 1400-1900 + utilities per month. 

The other thing to consider is she moving to the States and keeps the North York Condo she will end up paying taxes in two Countries. If s

As for selling it privately I will leave that comment alone. I'm a realtor and I might be a bit bias ;) 

If she would more detailed info I can give her some advice on the complex and area. 

@Inna Knyazeva @Account Closed Would love to see you out at the event tonight,

We have two great speakers presenting. Marvin Alexander one of the top agents in Canada and Economist Ben Myers who is going to share about the Toronto Real Estate Market. 

Hi Inna Knyazeva Sorry for the late response here. I'm travelling home from Jamaica today. I have had some success in owning investment properties in the GTA including Hamilton. Also every month I host an educational investment seminar. The next one is on Nov 19th. You can view the info for the event here. http://meetu.ps/2qs7S6 Feel free to contact me. My info is in my signature.

Send me an email I will get you connected... gary @ realestateventures . ca 

@Tanna Brodbar you will want to reach out to @Roy N. 

He's a Canadian doing great things in the US.

You will get lots of different advice here but I would put a lot weight to what Roy has to say.