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All Forum Posts by: Huong Luu

Huong Luu has started 15 posts and replied 310 times.

Post: What to do if not pre-approved for a mortgage loan?

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Keshera Lyons Qualifying for a mortgage is only is 1 way to buy RE and get into the game. If you do not pre-qualify for a lot of mortgage, find out what is being reported on your credit report and determine if reducing certain line items will help. There may be an error on it. It may be your score is low or your loan usage on credit is high. Also, not all mortgage agents are the same. Meet other agents and ask if they deal with private funds. If you find a good deal, you might want to consider private lending. 

The other way to get into RE if you do not qualify for a mortgage is to partner with someone else who can qualify in exchange for you doing the work.  

Good luck.

Post: Partnership contacts need to be drawn up?

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Leon Doucette ask your partner if they have a JV document they want to use. Ensure it has items like:

- what happens in case of money overrun (ie longer reno time and cash call)

- what is the exit strategy (ie listing with agent to sell or B&H, who has 1st right of refusal)

- who  is  responsible for what and when

- repayment order (who gets paid 1st and in what order, etc)

- How are subs dealt with?

Make sure you do your due diligence on this partner. Account for holding cost and legal/accountant/realtor fees.

Good luck

Post: Pencilling in expenses with little building info?

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Ryan Kenneth If you are not able to get the info, you can use a rough % is 40% expenses. If you have to pay a double owner tax for being non resident then you will want to facture that into your expenses to or if pest control is needed. Usually 40-45% is a good estimate. Good luck.  

Post: Found A Deal, What Do I Do Now

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Izayah Cortez Estick-Pulido Great for you on getting this far. There are many ways you can get into RE. I would also suggest you spend some time learning on how to put together a package to present to partners. I would also suggest you find a RE lawyer and accountant and start understanding that side of the business too. 

You can wholesale this if you can get the owner to agree and the price makes sense. 

Raising funds from private lenders is different then partnering with investors. Which are you doing? If you are doing private lenders, they usually will require you to have 10-20% of funds.

Good luck 

Post: Making offers with little success

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Pawel Kozak Depending on the market you are in, you are also competing with other buyers who are getting into RE as more people are seeing their 9-5 as not a reliable security any more. With the properties you are not succeeding in buying, stay in touch with the agent incase the property doesn't close. You can tell the agent to keep your offer as a back-up offer. With the additional stress test and other requirements, many new buyers are caught off guard with the additional down payment they need when the banks come back with a lower appraisal. 

Do not increase your offer price. Run your analysis and put your best offer forward. The success rate is just a number. Don't let that slow you down from putting in more offers. Good luck. 

Post: Any investors from Edmonton area? More specifically wholesalers?

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Chase Novotny Check out the Edmonton Real Estate Investors Association. They meet in person and on zoom now. There is a networking opportunity during the calls. You should be able to find them on meetip.com. Also check out REIN. They have a wholesaling section. Good luck.  

Post: First Rental Property!

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Kyle Madden with $300K, you might want to consider MF and hire out the Property Management which is an expense line. If you are able to save $300K, great. You want want to be the bank and lend that out at 10%+. That way, no concerns about out of province management. You might also want to consider equity share investment, where $300K will get you a good size equity and some else does the work. Good luck

Post: First Time Buyer In Ontario

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Maveen Ahluwalia Use this time to educate yourself on JV and partnerships. It sounds like you have limited funds and income restrictions, so JV or doing flips in partnership may be the best way to go. With the market being the way it is, you might also be able to level your $80K at 10%+, and the Rule of 72 and use the time to educate more until you find an area that meets your criteria. Message me separate if you want more info.

Post: Do you claim capital cost allowance?

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

@Andy Sung highly suggest you talk to your accountant about this.

Post: Canadian real estate rules

Huong LuuPosted
  • Specialist
  • Vancouver, BC
  • Posts 315
  • Votes 145

Many new investors get caught with the 5 door limit. Since you are starting off, I would suggest you sit down with a nice Mortgage agent who is willing to teach you about how to set up a portfolio from the start that allows you to grow past 5 doors. Read up on using RRSP to fund your first deal as you may want to take advantage of the FTHBP. Read up on the Smith Maneuver to learn how to leverage.

Good luck