All Forum Posts by: Paul H.

Hey Brody,

How did you make out?

Bhushan, I can tell you what I did over the last few months which led to my first deal in Cornwall which was 9 units. I live in Ottawa as well. A couple key things I learned about financing were: 4 units or less, is a standard mortgage, those buildings are priced based on market value of similar multi's or single family homes. With 4 or less units, you have to provide 20% down and your eligibility for the mortgage is based on your income as well. For multi-family 5+ you get a commercial loan, the eligibility of the loan is mostly based on the income the property generates and if it can carry it self after the bank runs their calculators and cost assumptions. This requires a 25% down. The bank I choose to work with was Desjardins Casse Special, being a smaller co-op style bank they worked with me every step of the way and were able to tell me they would back a purchase within 24hrs of sending them the listings. I also had all my paperwork and financial information set up with them prior to making offers... By having everything set up prior I developed a relationship with the agent, without ever meeting them until the day I signed for the mortgage. Financing the down payment: Before I started going to showings I unlocked the equity in my house. I applied for a HELOC. There were some fees to set it up however it was completely worth it. When I spoke with the bank, I was clear that I would use a HELOC + Cash to cover my 25% down and it wasn't an issue whatsoever. Identify the investment type you want to do, identify the area, connect with experts if you plan on using them, start making offers. Best of luck!

@Roy N.  Thank so much for that.  Until this post I had no idea how to find these auctions. <3

As a Canadian buy the BP books from Amazon.  Amazon offers free shipping + no tariff of $20 on a book... and a good price.  As a tip, the biggest amount of learning after the Rich Dad and Podcast phase, was just going out and looking at properties...  making offers, talking to various lawyers, insurance brokers, banks, community banks, building relationships with realtors in different towns (2 hrs within Ottawa) all while still listening to podcasts. 

In line with @Martin Lang said.... These are my two avoid areas for starters... Cornwall Map  On a side note, I think I would draw a big red box around hawkesbury completely. lol

I'm also a terrible story teller when it comes to typing, so I'll apologize for that. :)

@Account Closed The Q&A format you're referring to is the template BP had me fill out after I added a new invesment to my profile page.  If the formatting has changed it may due to adding photos or correcting spelling after the post was submitted to this forum by the template.

25% down.  We will be seeing close to $2200 cashflow per month... on paper anyways.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Cornwall, Ontario.

Purchase price: $700,000

Cash invested: $175,000

Well maintained buildings with 9 apartments. 201 is a triplex and 205 is a 6 plex. Buildings have been in the family for 50 years.
The purpose built 6 plex was constructed in 1955. The Victorian home was constructed in 1873.

What made you interested in investing in this type of deal?

During the period that my wife and I started to learn about real estate, we looked at every possible way of doing it. SFH's, BRRRR's, 2-3-4's and Commercial MIx, etc. After seeing many different types of properties and uses we settled on the multifamily 5+ as what we wanted to focus on. More rooms, more diversification, less likely to lose all my tenants at once. Stronger cash flow and cost per unit is cheaper and all under one roof.

How did you find this deal and how did you negotiate it?

There were several showings at the property, over twenty in the first two days. When I showed up I was fifteen minutes early.... this allowed me to speak to the owner who was mowing the lawn which ended up In getting a private tour by the owner. At the end of the showing, my agent informed me this was going to be a multiple bid situation and they were not going to accept any offers until Wednesday. (48hrs later). We submitted our offer Tuesday night and scared away the others.

How did you finance this deal?

Commercial Department at Desjardins Casse Speciale.  They have been absolutely amazing every step of the way and gave me the confidence to know I would have financing when I found the right deal. Message me if you're looking in Ontario East & Ottawa.

How did you add value to the deal?

I don't know if I add in value to the deal. However, there are items on the property that I can upgrade over time to increase the value of the buildings.

What was the outcome?

We ended up getting the property. Once our offer was submitted no other offers came in. During the whole inspection and appraisal processes, there were other investors waiting to make an offer.

Lessons learned? Challenges?

Lessons Learned:
- Inspections are meant to scare you, but when the math makes sense it's worth forcing yourself forward.
- Be more proactive with my agent in getting paperwork from the seller during the conditional period.
- Always be early, you never know who you may meet or get to talk to.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. I can refer my agent in a private message. The home inspector is solid with very very good reporting.

Here in the city they do.  For example in Cornwall its closer to 40 dollars a unit and a twenty five dollar set up fee per tenant if its tenant occupied on purchase.  But they dont charge for any placement.  When I was getting started I read the book on long distance investing from bp.  I used the i formation to build an interview sheet and started to call PM companies.  I think sleepwell here in Ottawa is 7% and I think Dore Property Mgmt in Ottawa is making a good name for themselves too with a money back guarantee if youre not happy.