All Forum Posts by: Tyler Bruce

Hi Nicol,

I have used HELOC's (as Sam mentioned), done vendor take-backs and also used private mortgages in the past. Although most are higher rates, you may make less money however you are still making money. As long as you factor the higher interest rates (they are short term of course) into your initial calcs before you close the house.

Feel free to private message me if you would like to hear more.

Tyler

My partner and myself have found one of the most beneficial things is to have a good mortgage broker. They will help you navigate through all of this and also make sure you aren't backing yourself into a corner as you purchase more units. We have put some in my name, some in his name and some in a corporation name, even some in my parents name! That being said, as Paul mentioned, incorporating comes with hurdles and banks don't love lending to them however the tax rate is much lower and it removes personal risk. In the end, it seems as long as you have 20-25% downpayment, you will find  a lendor for a decent rate. All I can say is find a good mortgage broker to work with you on all your deals.

Anyone have a differnent experience?

Hi All,

My business partner and myself are contemplating buying another multifamily in Ontario to expand our portfolio and generate some consistent rental income to support our flips. We have been scouring the markets and are struggling to find a decent building for under $1Mil. with a 7+ Cap rate. If anyone knows of some good areas please feel free to pass them along. I understand that areas in the GTA will not have Cap rates such as this and for that reason we are looking well outside of the GTA. We have found some great properties in the past with ease but they seem to be harder and harder to come by.

We are always looking for a good project/"hole" as well.

Any advice?

Tyler

@Nick Thompson does LIBRO Credit Union charge large lending fees similar to private money? and also, are their interest rates reasonable? I Have done similar to what you mentioned above and it seems to be easy to find that kind of money but most places charge ridiculous fees which essentially kill the project.

@Thomas S. Hi Greg, I fully agree with your point of view as I have had my fair share of issues however it was a "live and learn" experience for me. With proper tenant screening and a property management company for my C class properties I have not had any issues. That being said, I wouldn't discrouage out of province investors, rather warn them and give advice such as screening, due diligence, etc.

@Igor Tomic my properties in Ottawa do not get near 1% however all of my properties in the Kingston and surrounding areas do. These properties are a mix between SFH's and duplexes.

@Roy N. hah my bad Roy, I forgot one important letter on that one, 210k...but still good cashflow!!

I fully agree, and I just did exactly that. We bought a building for 300k, renovated it, fully tenanted it and reappraised within 4 months. The new appraisal was 640 and we refinanced at 75% ltv. The only fee of course is breaking your exsiting mortgage (we went with a new lendor). This fee however was quite low as we made sure when we signed for the original mortgage - 3 months interest payments.

@Matt Geerts

thanks! It was our first so lots to learn. Our biggest learning was to pick in the right neighborhood however that goes for anywhere. We had a plan to complete the flip in 3-4 months, get it fully leased and we were able to do just that. Reno's cost more then expected but we had a large buffer so it was sustainable. And yes, all laminate flooring, aside from bathrooms and front entrances - we put a higher end waterproof flooring. Also, we put cyramic tile in the comnnon  coin laundry room.

I have a few locations in Eastern Ontario where we have been buying duplexes in B-C areas with great cashflow. For example, we bought one duplex for $210 and it rents for $2,000 per month and they pay all utilities. We  have several others that are similar. If anything is interested in knowing more, private message me, I would love to share.