All Forum Posts by: Michael McKinders

Once you do find the property to BRRRR understand your needs for that BRRRR as there are significant supply chain issues right now and as others have said make sure you have a contingency of 5-10% for unforeseen costs. Prices have skyrocketed in the last year. Wholesale lumber prices right now are the lowest they have been in 7 months but they could skyrocket and double again at any time.

Credit Report score should be at least 650-675 minimum.

Hi Yan, 

Just to be clear I wasn't suggesting that you would use Centurion, I was just informing you of what Centurions process is.  They have 15,000+ units and really credit score is pretty much the only factor in decision making so using SingleKey or Naborly is a requirement for any potential landlords.  

We use SingleKey where I work and it is a great summary for the cost.  There are companies out there, like Centurion which has a huge portfolio in Canada and their primary basis of accepting a tenant application is credit score.  I have heard that they have pegged a number and I cant remember if it is 650 or 680 but if the tenants credit score is above it, approved, below, not approved, that simple, so they must have some basis behind their philosophy.

 The CalgaryMix site is great, thanks Anthony

There are qualifications required to participate in this program.  Some of which may alleviate the issues that Jeremy brought up earlier.  It am not sure that everything has yet to be determined.  There is also an application fee, I believe to be $150/door required to even apply to this program.  Historically speaking CMHC loans have taken a very long time for the analysts to crunch their numbers and approve the loans but we are being told that this process may be quicker with the select flex program but we will see.  We are still planning on using ST bridge financing from lenders who want CMHC business for the assets we plan on using this financing for.

Using just the average income numbers posted before almost every 1 bedroom would qualify these buildings for this financing, so I expect that it becomes a lot more in depth, such as % of units of each type below a certain threshold, but that is just my speculation.  

Again, when I get an update I from my source I will let post it accordingly.

Hi all,

The actual phrase is 80% of units at 30% of median renter income.  The last chart the CMHC released is 2019 so the data needs to be updated but for Edmonton this amount is $66,600 and Calgary is $69,500.  Other cities are way lower than this.  When you take 30% of this amount Anthony is essentially correct with the amount.  Edmonton is $1,665 and Calgary is $1,737.  They hosted a call just before Christmas and did not give much additional information other than saying that the Edmonton and Calgary markets may be oversaturated which I don't see at all.  Both cities need more affordable housing.  

More details will be released closer to the date at which the product is released in March.  

In my opinion this product really does benefit new developments the most as it provides higher LTV amounts on both the construction product and stabilized asset product. I have ran a variety of models based on conventional financing and this CMHC MLI select product and the benefits to the developer on take out financing and monthly cashflow are staggering.

As I here more information on the product from people I know I will post accordingly.

Hello everyone, I just joined Pro a week or so ago and have listened to numerous podcasts. I have been in real estate for effectively my whole life as an employee but am looking to build my own business/portfolio. I listened to episode 517 with Avery Carl and her model of buying STR's to fund the acquisition of small to medium multifamily was genius and I am just wondering if there are any likeminded people in the area who want to bounce ideas off of one another or just people who can share their insights.

Thanks,

Mike