All Forum Posts by: Derek Cavanaugh

Super are there other professionals you would like to here from

Real estate lawyers

Accountants

Home inspectors

Home designers

Appraiser

Solar installers

Specific trades people

Or feel free to make a suggestion. I'd like to make these sessions valuable to everyone.

Thanks all I'll send out the details soon

Hi all I am thinking of doing a networking zoom meeting. I have lined up a private lender and a real estate agent to present some information on the current Nova Scotia market place.

If anyone is interested you can message me here and I'll attempt set one up.

Let me know if this is interesting to you and suggestions on other areas presenters could be from.

@Rachael Woodcock

I live and invest along the north sure. I am located in Pictou.

I know of at least a couple of property management companies in the Pictou county area.

There some pretty good value buys in this area. Multi unit cashflow well and as it's a great tourist area Airbnb works as well

Eastern Shore has some really unique opportunities.

As I am on the north shore and close to eastern shore I can probably connect you with real estate property managers contractors etc.

Happy to discuss anytime

@Eri Bastos

Yes 20% down will be required but we should be able to use the land value to cover all or most of that.

I'm not sure what Josh's availability is but I am on my 4th project with Josh and his build process and project management is really tight.

I'm happy to pass along my cell if you have more questions.

While many here are experienced investors and probably know a lot of this I am hoping some of this basic information will help new investors get off to a better start when seeking funding.

Personal Information

Always have ready- last NOA showing no taxes owed, if using commission, bonus, overtime income, or are business for self 2 years NOA so an average can be used.

Collections should be paid off, if a previous bankruptcy occured have your paperwork ready.

Credit utilizations plays a major role in your credit score and your ability to get funded. Revolving credit below 35,% of your limit is ideal.

Networth- have an up to date networth statement include vehicle, investments, properties, recreational vehicles, household goods and furnishings, whole life insurance cash value policies.

If dealing with a private lender a clearly defined exit strategy from their loan is extremely important

When seeking credit be careful about multiple credit pulls. Too many credit pulls will effect your score. A lender should be able to talk through a deal without needing to immediately pull credit. Know your credit score and while free apps are ok I suggest going directly to Equifax. You can print and pass it in to a lender to avoid an immediate pull. They will need to pull credit eventually though.

Property information

Always have the tax assessment and if possible a real estate agents letter of opinion ready, I have seen several deals approved this way avoiding the costs and time of an appraisal.

Improvements- Quotes will always carry more weight than estimates.

Rental Income Have research done market value rents if the intent is to hold the property.

Flips- make sure your time lines are reasonable budgets should always show a contingency budget. Things like average time on market for the area helps as well.

If any project is declined be sure you understand the reason for the decline. It may help you shape your project for the next lender.

There are benefits to having a relationship with your bank and a broker. Both should accept that they aren't always the right answer.

Use a consistent team of real estate agents lawyers ,lenders , home inspectors , insurance agents, and appraiser. Being familiar with the team can make the job easier.

If anyone else has some suggestions to add I would love to see them. Happy hunting!

@Eri Bastos

Some things to keep in mind if you are going to move forward on this.

4 units and under qualify for residential mortgage rates if it's a personally owned property. Over 4 you will get bumped to commercial lending. If you plan on using a company name for ownership it will also be commercial

Construction mortgages with draws are not as accessible as turnkey product but you will have options.

Some builders will carry the build finance but that will generally increase the price.

If you require a lot of funding it would be best to establish market values for rent prior to applying. As a general rule of thumb banks like to see 1.25 income to expense ratio on the project.

Personal income and debt servicing ability will influence the mortgage especially during the construction stage.

Hope this helps

@Joshua McEvoy

Feel like doing a build in HRM ?😁

@Eri Bastos

Builds are fine and there is a shortage of housing in Halifax.

I can walk you through some different options.

HRM building permits and inspections are notoriously more difficult than the rest of the Nova Scotia.

On the plus side the land is already a solid equity position

I know some are involved in networking groups but would anyone be interested in doing a monthly zoom call?

We could take turns presenting information, have a time set aside for tactical discussions involving our active projects.

Potentially invite guest speakers, I know some private lenders who would do a presentations, maybe a lawyer or 2, insurance agents and real estate agent who would all be willing to share their expertise.

A final benefit is being accountable to peers is often a motivator.

Thoughts on this?

@Joshua McEvoy

Good to see you hear!

I am working alongside Josh on a few projects. Both him and his father are incredible resources!