All Forum Posts by: Huong Luu

You can do a VTB for sure. So she will not own the property, but will have 1st position mortgage on paper. If she doesn't even want this, then find out why. This is how she would protect herself should you default. Another option is a loan agreement and she puts a caveat on the property. 

A VTB doesn't mean the price is higher. You have to negotiate this. However the rate usually is higher (ie 6%+) if you do a VTB. She would have to agree to it and you would have to make it worth her time to do it. You can also negotiate the %d/p, but it should be 5%+ (the higher be better for her). Find out why she is selling and what she wants to do with the funds. If she has no plans, then offering a steady guarantee monthly income might suit her. 

The other option besides a VTB, is private lending if you don't want to use the bank.

This is not a question that can be answered in a few paragraphs. Message me if you want more info on VTB or private lending. Good luck

@Aldo Gutierrez If you have little experience in buying, then you should definitely consider using a GOOD realtor. A good realtor will check zoning, comps, further potential, ask the right questions, contact other people as required (ie permits, etc) and assist you in getting the getting price. Not all realtors are the same. 

Keep in mind, in most areas, the buyer doesn't pay the realtor fee. However, there are areas where the buyer has to pay the realtor. So some owners who are doing 'for sale by owner' will not want to deal with a buyer's agent because then they have to pay 1-2.5% from the sale of the property. If the seller is using their own agent, if you come in without an agent, the seller still might have to pay 3-4% to their agent, so there is no savings to them. And you can't negotiate a lower price b/c you don't have an agent. 

If need more clarification, don't hesitate to message me. 

You can RTO, but you don't "need to do it" to get exposure to it. Also, RTO is risky (50% success rate), so unless you know the strategy or hire a firm to help you, I would suggest you stay away from it. I have a contact in Calgary that does RTO.

Your other option is to do an AFS (Agreement for sale) or do a private sale (this way you don't pay RE fee). 

Run your #'s properly for short term. They are a lot of work. Unless you sub it to someone to do. 
Send me a message if you want more info on any of the above. 

I was thinking of using Zoom. As I am travelling, on-line is best. This requires minimum travel for everyone, and I have an account with Zoom, so we can have unlimited participants, and unrestricted duration. Also, on-line allows everyone to participate. 

to add to what Jacob wrote: There are A, B and C Lenders within the cat1 and 2. Not all private lending require 20%. The less you put down, the higher the rate. There are also RRSP mortgages (arms length and non-arms length). And of course the Bank of MOM&DAD. Good luck. 

Would there be interest for an on-line meet-up for contact Canadians (US counter-parts can join in, with the focus of the discuss to be Canadian content)? I could hold them on-line (and they would be free). This would be in addition to posting your questions in the forums.   

I would recommend Cherry Chan's book (Complete Taxation Guide to Canadian Real Estate Investing) and her blog (RealEstateTaxTips.ca)

@Scott Hickey If you are able to get the bank's appraisal at $285K ARV (after reno value) then you should be able to get a HELOC/LofC of $34K. If you refi into a mortgage, then you have the amortization (ie 25 years) to pay that back at the mortgage rate. Whereas if you get a HELOC, then it is at a slightly higher rate, and you can pay this back at any time. So it depends on whether you are planning on doing another purchase in the immediate future or another investment.

I like to use 8% min in my calculations. Depends on the task/responsibility you, level of quality you expect and the competition in the area. I have seen PM fees as low as 5% and some as high as 15%. 

@Daniel Lozowy Once you decide on the city you are going to buy in, then research on the PM while you are putting in offers. Do not buy a place until you have a PM on board. Otherwise you will be more involved then you want. You also want to have a list of criteria of what kind of PM you want to work with. Read their contract and make sure you understand it (mark-ups, time at site, filling vacancy, etc). Make sure you include enough fees for them in your analysis, along with annual bonus so you positive cash flow.