British Columbia Real Estate - Sourcing equity

[Liam Lamont]

Hello BP Network,

I'm curious to know what avenues the Canadian BP community uses to source equity for real estate purchases, and in particular in BC? As we're all aware, the home prices in BC have appreciated at a rate far surpassing average rentals and salaries so in order to buy in any major center you're looking at anywhere from 25% - 50% downpayments in order to see a home become cashflow neutral.

With the average single family home in Vancouver now well over $1M, I'm wondering how to source equity contributors or partners to come up with that kind of capital, or how average investors are even participating in the market beyond 1 purchase?

Any insights are appreciated!

Thanks

[Huong Luu]

@Liam Lamont In these high appreciation areas, your strategy may not be to buy for cashflow, but to buy for mortgage paydown and appreciation. Your proposal to money partners would be to put their money in for X years, refi to get paid out with continued equity share. In this case, you don't need to raise 50%. 

Another option is for you to continue to rent, and use your money to buy in other areas that cashflow or participate in JV deals.

Good luck