All Forum Posts by: Nick Thompson

I have been using a local Credit Union which has a good system for the BRRRR strategy. They will complete an initial appraisal at my cost ($350) then provide a mortgage for 80% of purchase price. The bonus they do though is internally register the mortgage for a higher value than the original appraisal but hold back the extra funds. Once the renovations are finished a second appraisal is completed and the ARV determined. They can then release additional funds to me from the original mortgage and save the cost of creating a new mortgage for the refinance. It is similar to a builders loan where you receive installments except it is for fixer-uppers and the refinance funds are withheld until the completion of the second appraisal.

I use a credit union which will provide a mortgage for a property based on the ARV. They then withhold a portion of the funds and release them to me as the renovations are completed or upon the completion and rental of the unit depending on how extensive the renovations are. This is very similar to a re-finance except only one mortgage is required.

I assume your inheritance is mostly or all paid off.  If that is the case most local lending institutions will loan you up to 60% of the value of the property without too much hassle.  If you have minimal or no other debt you should be able to qualify even with a lower income.  If one bank turns you away keep trying others.  Try a local credit union as they are generally more flexible with their requirements.

Thank you for your input Samuel and Tom.  As I read further into Canadian Tax Sales I felt some uncertainty and both you have confirmed it.  I am going to continue to look into the idea but proceed with great caution.

Regards,

   Nick

Does anybody have any experience or knowledge buying tax sale properties in Ontario?  The system seems like it is set up as silent auction.  All prospective buyers submit their bids in private and once the auction is closed the bids are opened and the high bidder wins.  The catch is you basically need to have 20% of your bid submitted in cash (certified check).  

This seems like it could potentially tie up a fair bit of capital and would make it difficult to bid on multiple properties simultaneously.  

Has anyone been through this process successfully and was it a good investment.  Any stories/advise is much appreciated.

Regards,

    Nick Thompson 

Josh let me know next time you are in the area. 

simcoe area and invest in Norfolk county.