All Forum Posts by: Eric S.

@Hetal Pandav good tip. Thanks!

@Melanie Dupuis thanks Melanie!

@Joshua Janus ok thanks!

@Melanie Dupuis sorry I need some clarification. So does the seller refinance the home to pull out their equity and I am the one who makes the payments to the bank to pay it back? Also, if that's the case then I assume they can't pull out full market value so do I just pay them the remaining balance in monthly payments?

Thanks

Hi BP,

So I've got a family friend who is looking to get rid of a disaster of a property. He owns it outright and I would like to approach him with an offer to buy it off him with seller financing from him. I've never done seller financing before and would like some tips on how to explain it in detail to him. Also, he already got an offer for $1.1M and the arv for the area is about $1.2M so there's not alot of room to force appreciation, the only benefit is that I will be able to get a property without being approved for a mortgage and hopefully no money down. I am a contractor and am able to do all the Reno's myself. Do you guys have any advice how I should go about this? Also, a few more questions:

When does the title go in my name? At the beginning of the deal or after the home is all paid off?

What if I want to sell the home before its all paid off?

Do you guys have any lawyers experienced in this in the toronto/Scarborough area that you can recommend?

Thank you!

@Melanie Dupuis ok thanks alot! Good info. I'll have to speak to my bank if they will allow that.

@Melanie Dupuis thanks for your response. So if I'm not eligible to refinance I would be eligible for a second mortgage? Also, could you please explain a bit further of what cross colaterizing does? Thanks

Hi, I would like to purchase a property to start brrrr-ing by using my home's equity. I won't be eligible to refinance and am looking for suggestions on how I can tap into my equity. I've owned the home for about 2 years and the home appreciated by about 250-300k since purchased. If I am able to find a way to refinance my own home to begin purchasing a brrrr property how will I then continue to be able to refinance those brrrr properties?

Thanks in advance!

@Hai Loc ok, that's great info. Thanks alot for all the help!

@Hai Loc thanks again for the help. The frequency of the flips, I hope, will be pretty frequent. I'm assuming turnaround times of 2 months and then on to the next one. So in your experience would that be considered business income? And for example we sell the home for 150k over what we paid for it, we have 75k in expenses (closing costs, carrying costs, material, labour) and are left with 75k profit, how much tax will I have to pay on that if I'm not incorporated?