All Forum Posts by: Jason D. Lewis

Hey @Jatinder A.

My first two buys were at 20% which I raised 100% of. I did so by creating presentations for my money people. They focused on why the deal was so good and then providing data to back it up. I paid back all the money in 2.5 years. 

Maybe just easier though to pull out that equity and keep pushing forward. 

Let’s have a chat if you wanna bounce ideas around. 

Jason

@nathanielessayas

They were 3 years ago.  Now Vancouver isn't moving the needle much.  If a deal is found, you'll be able to wholesale it, but, with dropping prices, people aren't keen on locking up a contract unless it is a great deal.

With no properties being able to cash flow for an investor (in vancouver), no one is looking to be stuck holding the bag.

Jason

Hi @Scott Galloway, Vancouver Island is providing excellent $on$ (i like that) returns.

The market has had home price increases over the last 2 years, so they are getting tougher to find, but they are still possible to find at this time.  We completed on one in the north island in March 2019 and after 23k in renos, its operating with a 19% $on$ return.  I have a contract on another that I'm currently investigating and it appears that it will generate higher than 20%.  I use some different tactics to achieve this, so it may not work for everyone, but the success of a business always depends on its operator.

It is pretty specific to the town, the tenants, and rental scheme so if you want to pm me we can discuss it in greater detail.  

@Randy Molland is absolutely correct. You cant look at a rental market and say "gee, I should be able to get that much rent based on current conditions" you must look at the property and say "I need this much rent to make it work" and then go out and find a way for the market to meet your demands. There are so many deals to be had all over the island, but you wont find them by searching the MLS and even if one appears, it will be gone in a day to a ready and waiting investor who can spot a "deal" a mile away. We have to learn from our neighbors to the south and follow the lead of the real sharks!

Nice to see this thread going strong after 2 plus years.  Not a lot of attention gets paid to the island, which is just the way we like it!

@Jeffrey L Evans

A few simple things to keep in mind.

5% down is available up to 500k, then it goes to 10% minimum after the 500k, up to 1 million.  Any purchase over a million requires 20% down.

Any property that you say will be used as a rental property, will require 20% down.

Any purchase that has less than 20% down, can only be amortized over a 25 year period.  If the purchase is 20% or higher, then you can amortize it over 30 years.

Property transfer tax is province specific, so best to check Ont website.  As for mortgage calculator, I find that scotia bank mortgage calculator to be straight forward and correct.

Jason D. Lewis

Hey @Steve Saretsky, I completely agree and feel that any project needs to be a buy and hold with enough coc return rate that I can survive in the event of a slow down.  PG proved to me on the last re up of tenants in Sept 2018 that the demand for 3 or more bedrooms on an upper floor home still has a strong pool, but the lower suites struggle with getting a lot of attention.  PG is flooded with homes that have secondary suites.  The positive side is, that you can find PG homes for under 300k that will generate $1200/monthly cash flow at a rate of 22% coc with 20% down, not including principal pay down.  With my research, that is proving to be the best bang for the buck in BC at this moment.  I was also very impressed with the amount of new immigrants in PG and the quality of post secondary schooling.

North Island, specifically CR and Comox is still having record low vacancies with extremely high rents ($1700 to $2000 top floor of home, $1000 to $1200 for bottom floor suite and suites are in huge demand) but the buzz is out, so now door knocking seems to be the only reasonable means of finding a "deal".  As with the lower mainland, the north island condo and apartment market has already jumped, so finding anything under 100k is now outta the question.  Although, I have had success at Mt Washington, which seems untapped for investors, but there is major opportunity at their current prices.

Jason D. Lewis

@Cody Weiss

If you are strictly speaking about residential mortgages, it wont help at all.  The lender will follow their lending criteria and wont stray from it, as it is intended to keep them from accepting poor deals.  Working with a broker that knows each banks criteria will be helpful however (they are all different), as they can craft your deal and "story" to a bank that allows for certain "exceptions".  

Too complicated to get into here, but if you are buying and selling income properties, you'll want to work with someone who knows what each banks "programs" are for your needs.  They are all different, one deal could get declined at TD, while the same deal could be approved at Scotia.  

Jason D. Lewis

@James Edgar 

@Evan McLeish

I put properties under whoever can support them to get approved.  You can sign a bare trust at the lawyers for a few hundred bucks to be secure.

Unfortunately, if your name is on title, then you need to service the debt.  all too often, we only care about our name being on title for ego reasons.  If you trust family, then leverage their help.

@Account Closed

I've had good success in Prince George.  Easy to find suited properties, low vacancy, good rental rates and a decent sized population.

Jason D. Lewis

@Kris Bucci

Are you finding your rentals in Duncan or the surrounding area?

8% coc return is ok, but could be a lot of work for 8% and principal buy down.  Another option could be to simply lend out that 150k on Private deals and get returns of 10% with almost zero headache.  

We have properties in PG getting 18 to 25% coc.  Solid rental market as well, just avoid the VLA at all costs!

North Island, we have ones averaging 25 to 30%, but they were purchased mid 2017, early in the island investor boom and required serious rehab.

@Steve Saretsky

Really enjoying your commentary on the news.  Very honest about the current market.