Pickering, Ontario · Member since 2016 · 6 posts · 0 votes
Hey everyone, I just recently developed the interest for Real Estate Investing and had some beginner questions. With my low-income being a student I wouldn't get approved for a decent mortgage from a bank, so my question is:
Who are the best lenders that would approve me for a mortgage? I am located in Toronto, Ontario.
Any guidance would be greatly appreciated. As well as valuable books to dig into.
Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
10y
Hi Presh,
What type of property do you plan on buying?
You might want to consider doing a house hack by buying a property for your primary residence and then renting or selling it later.
This way you can finance the property through traditional means.
If you are adamant on getting an investment property and you want it financed try a local credit union
https://www.creditunionsofontario.com/list
Pickering, Ontario · Member since 2016 · 6 posts · 0 votes
10y
That would be the plan. However I was wondering how investors with many properties manage to pull it off. Lets just say for an example, a real estate investor owns 10 properties, and they are all rented at $1000/month. In the case he doesn't have a tenant for one month in each of those 10 properties, is he covering the costs for 10k. How do they pull it off?
1. There will never be a time when all 10 homes are vacant at the same time. If the investor did a good job buying in low vacancy counties AND uses good property management or good tenant finding techniques, then you should have very low vacancy. If all 10 homes go vacant and stay vacant long term, then the global apocalypse will have happened...there are just too many renters right now in the market for this to happen.
2. In the event one or two houses does become vacant and you have used leverage/debt, hopefully you've received good interest rates making your payments affordable. Finding a good lender is key here. That is how the big boys do it. They either pay cash or use a very good lender to get great terms on the property so that they can pay the loan for 30 days while they place a new tenant.
3. It's incredibly important to diversify. Don't stop at 10 properties. Buy more. Keep going up and up until you have a nice cash pool to dip into. Then start doing flips, buying notes, tax liens, and more to help increase your capital while the rentals provide a foundation to rely on in case a fix and flip goes bad.
By the way if you plan on managing the property yourself, try using a service like cozy.co or something similar. It will make your life a lot easier! :-)