All Forum Posts by: Huong Luu

@Muhammad Tariq In addition to @Randy Hunter's comments, there is gift money, and RRSP mortgages (this is different from the 1st time Home Buyers).

@Steven Wocknitz msg me separate and I will connect you with 2 lenders.

@Scott Galloway. If you are refi to do this, get a HELOC on all the properties and increase the amortization on the rentals to the longest they will give you. Keep in mind the typical A banks lend out to 4 doors, so now is a good time to sit with a mortgage agent to determine how you will get pass 5 doors. Edm is a great place to get a legal duplex now. You are right, the prices may go down a bit more, so if you can wait a bit to buy then you might be able to negotiate and buy on the up swing without taking too much of a depreciation loss.

The risk in your situation is the depreciation and opportunity loss. Also did you account for rent reduction and incentives? 

@Evan Aagaard Each lender has their own rules. Even if the lender preapproves and gives a commitment letter, up until the day of closing, they can back out. The lender will tell you if the funds need to be in the account for 3 months or if a gift letter is sufficient or if a cheque from any source on the day of closing is sufficient. 

Great idea. However I am travelling for an extended period... (living the investors dream). GTA area.

The numbers suck for this. You would be out of pocket a min $60/m in your 2nd year assuming you get $1K/m rent at 3%interest rate. I will send you the analysis I did. I was really surprised at how bad the deal is, consider the VTB at 0% and rent guarantee.  If anyone wants the analysis too, please msg me. 

Hi @Irfan Rashid

The rent guarantee is something many are doing now. Some even offer 2 to 5 years. Check to make sure you can get financing on a 500sqft place. Some lenders will not because it is too small. Is the building already built? 

Hi @Randy Holdaway. Welcome to the Real Estate investing world! Where in Ontario do you live? Having access to networking events will help you learn the different strategies and the mindset needed to do well in the RE world. There usually is a group already...If you are in a remote area, then you might want to start a group. A cashflow game group or meetup is an idea. 

For myself, I learned by 'just doing'. When I started out, there I only knew 1 other person investor. There is just so much info out there (youtube, courses, etc).

If the bank won't give you the money, find out why. If you max out on 'doors' or your ratios are to high, then find a money lender. This is easy to do. Send me a message and I will connect you with a few. For your 1st property, I would suggest you see if family can help with the down payment to reduce the lending from the bank (there might be a rich relative who can help). Using hard money lender is usually at 10%+ fees. 

The Toronto market is so crazy that I suggest you look in other areas where the money will go further. Get 1 place, rent it out, build equity and pay down the mortgage. Then refi, leverage and buy again. 

@Helen Godfrey As part of building your knowledge, asking these kinds of questions will help you with your due diligence and making sure you understand the numbers.  Good for you. Even if the calculator is correct and can be used for Canadian properties, you should break it down and understand why the numbers are what they are. This way, you can understand how you can reduce your expenses and or increase your income. This will help you find better positive cash flowing properties. Like the old saying: garbage in - garbage out. Good luck. 

Hi Steven, the best hard money lender will meet the following:

1. be willing to work with you (ie lend you the money)

2. give you the best rate and terms

3. require minimum paper work from you 

4. minimum collateral

5. they have deep pockets

 Once you find a good hard money lender, make sure you treat them right. That way they are willing to work with you over and over again. There is so much more I can write about this. Can you be more specific with your question?