All Forum Posts by: Genevieve Vienneau

Quote from @Dan Crosby:

Hey Genevieve,

1) They rarely allow a second.

2) You can make an offer on anything you want; whether the seller accepts it is another question. I know I wouldn't accept a promissory note.

3) There are definitely ways to do this, but it would have to be registered after closing, and you can't give the lender a reason to run a search.

 Thank you very much! 

Quote from @Cameron Robinson:

@Genevieve Vienneau did you make this deal work? If so how?

 Hi! Sorry for the delay - no, I didn't end up pursuing this deal for other reasons than financing. 

Hi,

I'm working on making an offer on a quadriplex that needs work. My plan is to do the work, rent it, and refinance it. The seller is prepared to offer 20% vendor take back. I have a few questions:

- If I'm dealing wiht an A lender (National Bank), I imagine they won't be fine with having a second mortgage on the property, right?

- Could I instead make an offer that includes a promissory note instead of a VTB? A Promissory Note is not registered against the property, corrrect?

- If I want to still go with the A lender, and do the agreement for the VTB on the side, would the A lender would be able to see the second mortgage on the property at the time of refi? Coud this cause me issues?

I'm really not sure how to structure this deal, but the numbers work so I want to give it my all. I'm not married to the A lender - so if anyone has any suggestions I'm all ears. The deal is in NB and I'm in ON, Canada.

thanks!

Hi, 

I'm working on making an offer on a quadriplex that needs work. My plan is to do the work, rent it, and refinance it. The seller is prpared to offer 20% vendor take back. I have a few questions:

- If I'm dealing wiht an A lender (National Bank), I imagine they won't be fine with having a second mortgage on the property, right?

- Could I instead make an offer that includes a promissory note instead of a VTB?  A Promissory Note is not registered against the property, corrrect? 

- If I want to still go with the A lender, and do the agreement for the VTB on the side, would the A lender would be able to see the second mortgage on the property at the time of refi? Coud this cause me issues? 

I'm really not sure how to structure this deal, but the numbers work so I want to give it my all. I'm not married to the A lender - so if anyone has any suggestions I'm all ears. The deal is in NB and I'm in ON.

thanks!

Quote from @Alex Gunnerson:

Quote from @Genevieve Vienneau:

I have a follow up question...

When using VTB do you still aim for cash flow? Or focus on paying off that VTB and getting the cash flow once that's cleared in the long term?

You’re welcome! That’s going to depend on you and your goals. Personally, I’m in cashflow accrual mode. I want everything I buy the cashflow on day one if possible. Eventually that may change, but the extra cash flow now would give me freedom to invest with different strategies down the road. 

Whatever you decide, good luck! Feel free to message me if you have any questions.

Thank you so much! With this property I'm thinking more long term and don't mind waiting for it to cash flow. Especially since I wouldn't be using any of my own money for the down payment. I'll start my offer with a number that allows for cash flow and will go from there.  I appreciate you taking the time! I might take you up on your offer since I'm sure more questions will come up. 

I have a follow up question...

When using VTB do you still aim for cash flow? Or focus on paying off that VTB and getting the cash flow once that's cleared in the long term?

Quote from @Alex Gunnerson:

Hi @Genevieve Vienneau,

Whether or not you should use vendor financing is going to determine on the terms you land on. The interest rate is one of those terms and is negotiable. I don't believe a standard interest rate exists in this scenario, but I wouldn't be too concerned with that. If I was in this scenario I would be looking at:

1. Purchase Price

2. Down Payment

3. Interest

Find out what is most important for the seller. Do they want a high purchase price? If so, you might be able to come to that IF the down payment is lower and/or the interest rate works for you. Are they wanting a higher interest rate? Great, let's see if we can make this deal work by coming down on purchase price / down payment.

 Thank you very much! This gives me a good starting point for negociations. I'll run my numbers with a few different scenarios that work for me and will submit three different offers and gi from there. 

I came across some properties that I'm interested in purchasing. The seller is offering vendor take back mortgage for 20%. I'm trying to run my numbers. What kind of interest rate and terms can I expect on that 20%?  Does it vary greatly or is there a standard? Is this something that I would include in my offer? I have no ides what's reasonable.  I guess a good start would be to check what works with my numbers but I would like to get an idea. Thanks! 

Hi! Thanks for reaching out. Yes, I'm interested.  I'll message you. Thanks!

Quote from @Chris Drouin:

Of course. Send away. I ended buying In Casselman. It’s a small but growing community and it’s located half way between Ottawa and Montreal along the 417. I buy for the long term, so it will continue to appreciate as long as others are priced out of Ottawa and the surrounding cities

I totally get it. I found it hard to get certain ppl to tackle jobs. I just tried to do as much as possible myself (flooring, painting, fence, deck) and called in others when absolutely necessary. 
we can’t chat more in messages to maybe help you find something, giving some tips to save on the rehab or me helping out!

 Great fence! Casselman is a great option. I'll send you a PM and we can chat.