All Forum Posts by: Stephen Leblanc

Do most people who flip homes have a full time 9-5 job. By looking at the tv show it seem like most of the successfull flips have owners who spend a lot of time in the house making sure everything is going as it should be. On the other hand, it would be hard to get over the rough patches in a flip without the full time job income. Just looking for some input as I have a 9-5 job and I'm not willing to give it up just yet, but i'm realy interested in this type off opportunity.

steve

In canada, mtg don't report on your credit report. Not sure if that is something they only do up here or if its done in the USA as well. Its done that way because the interest rates on mtg's are so competitive. Hope this helps.

Hi, sorry if this has been answered before or I'm in the wrong section, but I couldn't find my answer using the search option.

I have 3 rental properties in Nova Scoita, Canada. I work at a Credit Union so I have my 3 mtg there. I have hit my max debt ratio since I have 3 mtg on my personal side of things. I want to start a limited company and switch the mtg to the company. This can be done at the Credit Union Commercial Dept but they will only finance 65%. I only have about 20% equity in the properties, since I've only had them 5 years or so and put as little money down as possible. I'm looking for a broker in canada to give me some ideas of what they can do and what options they have for this situation. I'm not looking for anything set in stone, just come basic industry average interest rates and finance % for canada. I seen alot of talk in the USA market, but not much for canada.

Any help would be great. Sorry again if this is in the wrong section.

Stephen

Yea...I think we are talking about the same thing here. In canada, or at least where I'm from in canada, we still call this structure a duplex. 1 unit, legally divided into two.

thanks for all the input so far. keep the coments coming.

the plan with incorporating was to move the 3 rentals and mtg into the company. This would free up room on my personal side to buy more rentals. ie. buy a rental...pay it down to 65% and switch it over to the business. the flow of rentals will always go from personal to business. It was just a thought I had. I thought it would work.

Also 100% of the income on the incorporated rentals will be used when calculating my debt ratio on the business side. on the personal side, only 50% of my rent income is used to offset the 100% of my mtg pmts. The problem as you can see is, for every rental I buy, my personal debt ratio gets trashed.

I'm 29 years old, got my firs rental when I was 22. I just finished college and was living at home when I decided to leave the nest. Looked at some started homes in my area and came accross a solid house (half a duplex) for 29,500. The people who owned it lived on the other side of the country and wanted to get rid of it. I didn't like the house as a place for me but I thought I could rent it and have a positive cash flow. That was rental #1. 2 years later the owner on the other side of the duplex came to me and asked if I wanted the first crack at buying the other side of the duplex. Paid 3500.00 for the other side, more that it was worth, but I thought if sold it to an idiot, I wouldn't keep a renter in my side. So now I have 2 units. I bought a 1.5 story home one month ago. The owner died and her doughter works with me. It was on the market for 35000 for about 6mths. It was a bit of a fixer upper but the price was right. I offered 25000...and she took it. That is where I stand now.

About the questions I have...well there is a lot. I don't want to post right away just in case I find the answere in the previous posts. Some of the things I am looking for are...

1. Should I incorporate ( 3 mtg on my personal side of things is realy tieing up my debt ratio and my ability to borrow more funds)

2. How to get more creative types of financing so I don't have to stop getting properties while I wait for the old rentals to gain equity.

3. what to do next ie more rentals, buying land and starting a sub-division.

thats about it for now. I'm going back to the forums to get some answers and new ideas.

thanks

steve

it usualy depends on how much unsecured debt you already have out there. Your credit score and debt ratio also come into play. The more income you have...the higher the unsecured debt you would qualify for.

steve

Hey everyone....this site is great. I have 3 single unit rental proporties and I'm looking to expand my empire. The next rental will be 4 unit+ to improve my cash flow. I have lots of questions and I seem to be finding a lot of answers here. I'm looking forward to soaking up all the knowledge from you guys.