Updated over 11 years ago on . Most recent reply
New Investor
Hi, I'm Dave, and I've just started investing in Windsor Ontario Canada. Great to meet you all!
I put an unconditional offer on a townhouse and it was accepted last week. I went to the bank for financing yesterday, and put 20% down on 75 000. Apparantly the bank's rule demands 35% down on a rental property, which was a surprise, but she put it down as a second house, so I avoided the extra down payment. I'm definitely going to have to work around that in the future. For this one, I was comfortable putting no conditions on the offer because I knew I could cover it in the worst case scenario, and I've got good credit and not much debt. Also, I'm sure this is a Canadian issue, but my LLC couldn't buy the property since the LLC has an earned income. I need a whole other company that only deals with investments. Unexpected headache.
The one unusual thing about the deal was that I was buying from someone who was leasing to family at a reduced rate. She was being foreclosed, so I got it at a great price, but her bank needed an unconditional offer to stop proceedings. We demanded that the tenant sign an agreement to vacate at the end of November before closing, and that's done, but I am exposed to the possibility that I could have to evict. The place was immaculately clean, rented to a family, and they're employed, etc., so I'm sure I'll be fine.
Anyway, that basically sums up where I am right now! I'm looking to get my feet wet with this first property. I've got credit checks, landlording, etc to get comfortable with over the next year, and the hope is that I'll build the experience i need to build further next year. I really feel like it's in my interest to start slowly and methodically. I'm the absolute opposite of a math guy or a business man, so I'm being as careful as possible to dot my i's and cross my t's.
Thanks for reading, and I'm looking forward to contributing to the great forums here, and getting to know you all!