Are you interested in Vancouver Island, BC Canada

[Kris Bucci]

Hey BP,

It's been quite the year for sure... putting COVID aside, I can say I've seen and heard some pretty amazing stories from investors here on Vancouver Island. We personally have transitioned from purchasing Turn key buy and holds, to building our own purpose built rentals and are extremely excited about the opportunities this provides us and our JV partners. But more importantly we've continued to grow our network in and around VI, BC and Canada. We've gotten close with investors crushing it by doing flips, others doing rent to owns and others offering amazing private lending opportunities.
So what I’d like to do it see if I can help expand some of your networks.  If your interested in what we do then great, if your looking for an investor focussed realtor in Victoria I can hook you up, if your interested in other niches let me know I can do an introduction...
Post below or PM me with what your looking for... 

Thanks and talk soon

Kris

Uncovered Oasis

[Kris Bucci]

Originally posted by @Ros L.:

Hi Kris, I’m currently offering an acreage that has four homes over two adjoining lots (2 titles) for private sale in Qualicum Beach.  I have had a few people ask about seller financing.  This is an area that I have no experience in, but wonder if that is something that you could help with? 

 Good Morning Rosing, first off you live in an amazing place and would love to see the listings for your home.  I grew up in Port Alice, far north of you, but traveled to Parksville every weekend in the summer, so I know the area well.  Regarding seller financing, yes I can provide you with some knowledge and introduce you to a legal team that have structured these in the past.  When deciding to offer seller financing or not, you need to know what your needs or goals are.    If your need is to take the lump sum cash from this sale to buy your next property, then Seller Financing is not for you.  If you are happy with a small sum of cash up front (DownPayment) followed by years of passive income, then Seller Financing can be a great tool.

Benefits: 

- Defer/spread capital gains up to 5yrs (big tax savings)

- Offers you passive income stream for years to come

- Continue making income from your property without any of the headache/maintenance.

- If they stop paying, you get the property back

Downside:

- You don't get all the revenue up front, it is deferred over the life of the agreement

- Requires further legal advise and cost (nothing crazy thought)

As well, there are different structures you can use: Agreement For Sale, Vendor Take Back and even Rent to Own.

Agreement For Sale: Title remains in your name until transaction is complete.  This works well if you still have a mortgage on the property with a penalty for breaking.  You create an agreement for say 3yrs, where they pay you a mortgage payment based upon the agreed sale price for 3yrs (amortized over 25 or 30yrs).  At that point, they are required to purchase the home outright by paying you the balance owing.  We just did this as a buyer for a vacation home.  We paid roughly 20% downpayment and are paying the seller interest only payments on the amount owing for 2 yrs.  At which point we have to get traditional financing and pay the balance owing.  At that point title would be transferred.  The seller had a 2 yr mortgage remaining, so he is using my payments to pay his mortgage and pockets the difference.  

Rent to Own: Is very similar to Agreement for Sale, but you are deferring most of the downpayment and you are counting a portion of their mthly payment as their downpayments.  Example you charge them $2000 per mth.  $1500 is the "rent" payment and $500 is their DP savings, so at the end of 5yrs they would have $30,000 towards their DP covered.  

Vendor Take Back:  You simply become the bank.  You sell them the house as your normally would, transfer title etc..  The only difference is you are listed on title as the 1st mortgage.  You have a lawyer draft the mortgage paperwork, you charge an agreed upon interest rate and ask for a downpayment of your choosing.  If you don't have a mortgage and are looking for passive income, this is a great tool.  You spread capital gains out for 5yrs (check with accountant on this), and you get a mthly check in the mail.  If they default, you are in 1st position and take the home back.

I hope this helps... and please if one of the options makes more sense to you, please let me know, I can go deeper or at the very least point you in the direction of a lawyer who has done these types of transactions.  If Rent to Own is the most appealing I know a few people who are actively doing this strategy.

Thanks again for reaching out.

Kris