All Forum Posts by: Julie Toh

@Jen Lucille Welcome to BP, Jen! There are a lot of helpful resources on BP and I think you're on the right track by doing research first i.e. listening to the podcast and attending forums. Before I purchased my first property, the research I did was around financing- what do I need to do to get approved for the right mortgage. I read a lot and sought out a mortgage expert and used him as a sounding board. 

@Leandro Zhao 

Two words that matter: Vacant Possession.

My client: "But wait, we're buying the property as a rental anyways, so it's a good thing that it already has a tenant...right?"

No, an existing tenant is rarely a good thing. Consider these questions:

• How is their lease written?
• Does it protect you?
• Are rents reflective of current market rents?
• Is there a provision for annual rent increases?
• Your costs will be increasing every year, cover yourself.
• What is your duty for notice to evict the tenant?
• Why is the seller refusing to give a simple notice?

Don't risk inheriting the seller's errors and/or headaches.

Whether your new purchase is meant to be owner occupied or an investment property, demand vacant possession or walk away.

My two cents.

@Chase Jipson  Can you imagine the day you find just the right property and get the keys to your first home! That'll be an exciting day. I get a lot of satisfaction helping my clients who are first time home buyers realize their dreams of homeownership and getting the right mortgage for their situation.

You have a decent household income to qualify for a mortgage of $350K, assuming that you have no credit issues, car loans, student loans or unsecured lines of credit debts. After renovations and market appreciation, you can refinance to take out equity. The banks will refinance up to 80% (some 75%) of the appraised value of the property. You can choose to take cash or structure a multi-component mortgage.

@Willi Schweizer Welcome to BP! You will find a ton of helpful resources here from podcasts to webinars to the forums for the novice to seasoned investor.

I have been investing in real estate for the past 15 years, yet I still learn something new every day from my research. 

@Steven Wocknitz It's more common in Canada to call hard money lenders B lenders or non-banks.

@Luc Boiron mentioned MICs. A mortgage investment corporation, or MIC, is a mortgage investment and lending company in Canada. A MIC manages a portfolio of secure mortgages where individual investors pool their finances to create mortgage loans. Some MICs in Canada may diversify their portfolio to include anything from smaller second residential mortgages to mortgages for commercial development properties.

I have found in my experience working with B lenders (i have a long list of them) is that each MIC has its own investment strategy. However, unlike property loans from banks that will lend up to 100% of a property’s value, the ideal MIC loan is generally around 60% of a property’s value, and does not exceed 85% for added security. 

If you are an individual looking for safer and consistent returns for your $$$, with 100% of the net profits returning to you, investing in a MIC might be an option. 

@Scott Hickey The HELOC is an under-utilized financial tool that homeowners and investors forget to tap into. I like the re-advanceable heloc - leverage, leverage, leverage.

 @Adrian Weiss To maximize cash flow, consider a 30 year amortization and/or a multi-component mortgage. 

@Curtis H. Which credit union offered you 100% ltv?