All Forum Posts by: Damian LaGrange

Thank you!

Thank you to everyone!

Thank you. In this case the current financials on the property aren't great(rents well below market value and the owners family living in several of the suites) so the lenders will likely not provide the funding based on poor NOI. The actual potential value of the property is disproportionately higher than you would expect based on current revenue. Also, the owner expressed concerns over the capital gains tax early in the discussion...so I am thinking the opportunity to do vendor financing will help me get a good purchase price and help the vendor with taxes. Also, I plan to put 20% down...rather than 25%...which will allow me to keep cash on hand to complete the needed rehab. I am assuming that most lenders require 25% DP.

Hello fellow Canadian investors.  I’m trying to structure a vendor take back mortgage.  I’m guessing there must be differences in the terms in Canada vs USA.  I am planning on 20% down , then a fixed payment based on current typical rates for the next 5 years, then a balloon payout at the five year mark.  Does this sound right?  I will confirm with my lawyer and accountant when it comes time, but I thought I should hear what other investors suggest.  

Thank you!  I appreciate that.  I’ll be patient..

Am I missing something?? Are deals just being considered based on per door price now? Hello all, I am struggling to analyze multifamily deals in my area. The cap rates seem to be inconsistent and not aligning with really anything...3% to 5% on older buildings with higher risk, not great tenants, in not great areas and not a lot of cash flow or even negative cash flow based on current listed price. When I run the numbers it just doesn't make sense if you consider a 75% LTV. The realtors seem to talking more about per door price in this area...they appear to be ignoring the cap rates and cashflow and really anything other than per door price. I am new to multifamily so please educate me. Cheers