All Forum Posts by: Kris Bucci

Hey everyone I’ve sent 3 letters thus far, each with a bit more information as things were released.  I was open that the mortgage deferal was not a real benefit and would be a last resort.  Yes I started with health and everything, I put information about relief efforts, and ended with options:  1.Pay rent as per normal using relief measures 2. Pay with a Credit Card. 3. Payment plan which would require proof.  

I was honest with them and I have received word back from 8 out of 10.  1 stated they may have problems starting May 1 if they can’t get all the government relief.  Others offered to help us in any way they could.

All this to say, be honest treat them as an equal and remind them we are struggling together. 

We've decided to reinvent the BRRR strategy... ok not reinvent but do it our way... We are going to "Build" Rent, Refinance and Repeat.

Quick #’s

- Lot 200k

- Build Cost 350k (lots of sweat equity)

- All in 550k

- ARV 725k

- Rent $4100

Option 1 - Leave your DP in

CF $1,100

Cash on Cash ROI - 8%

Option 2 - Refinance

Take out all your cash and get extra 35k

CF $450

Two pretty great options.... we start construction on our first two in April... stay tuned for updates... if you want in on the next ones let us know, we may be looking for JVs to keep it going...

Thanks Matt for asking the question and Chris for answering.   I was going to ask my accountant about this topic as we are going to have a big hit this year. Especially on a couple properties we know we won’t be selling for many years.  One additional question, if you have any claimed in the past is it retroactive? 

Jessica, I recommend reaching out to one of two people. Kyle Ford from Mortgage alliance in Kitchener or Kyle Green from the Green Mortgage team in Vancouver. Both are REI focussed lenders that know how to get creative. If nothing else they may just be able to give you some advice. But yes a VTB or assignment for sale would be best option. Sell it to the seller that they would get to defer capital gains over 5 yrs...

@Jack B. Lol true story this happened to us. We were viewing to buy a rural property and one of the tenants saw us drive up, ran back into her suite from gardening, got naked and then answered the door completely naked.

It wasn’t pretty!!!

Hey Alexandra, yes there are many investing out here.  We focus around Victoria BC, but we are connected with investors around BC and Alberta.  Where are you looking at and what types of investments are you interested in? 

Recommend getting in touch with Trevor Gaal and Sean Kearney in Halifax. They are doing a ton of REI and likely know of any local meetups. Let him know Kris and Sari from Victoria pointed you in his direction.

Hey Vincent... I’m going to follow this thread as well.  I’ve been to a bunch of Canadian conferences and am currently heavily invested on the island, but we are interested in expanding into the US.  So this may make sense. 

Seller financing is all about negotiating. The terms can be pretty much whatever you can agree on.

A couple pros for the seller you can use to help improve terms are: 1. Defer much of capital gains. 2. Income Stream vice big lump sum.   
Obviously the income stream is dependent on the seller.  Usually this works best for retirees.  
As for terms, usually the highest LTV is 90%, but some get higher. Interest rate, I would start at the bank rate and work from there. Keep the balloon payment as a bargaining chip. Decide your exit strategy and make sure you have a plan B and C. After 5 yr term then what? Are you holding and needing regular financing? What happens if you can't get it... can you sell... will the seller extend? Can you bring in a JV partner. These all depends on the market and the Cash Flow. In the seller financing is a great tool... good luck

Canada is a big country with  many markets.. some are great for flipping... some have condos in the 100’s you just need to invest where it makes sense.  But sounds like your still doing well getting to 6. Nice work!!!