All Forum Posts by: Huong Luu

@Bhakti Kshirsagar The advice @Guifre Mora provided is great. In addition to that, I would suggest you meet/network with other Canadians who invest in the US. Get their experiences. In addition, I would suggest you talk to a US-CAD lawyer and Accountant.  Lastly, I would suggest you buy a place locally 1st. You might not like being a landlord or being in real-estate. When you invest in the US remotely, you are trusting people to manage it for you. If you lack the experience of managing your own place, you won't know what level of professionalism to expect and how to deal with matters when they go badly. Good Luck

@Trevor Hough Many of the A lenders will consider your LofC fully maxed at the rates when you apply for a mortgage even if you are not using it. Thus it will affect your. Your $50K unsecured LofC will be used as part of your ratios. So it is not a good idea. If you need funds for a reno, you can buy a property and get a reno JV or private money for the reno. You can also get a mortgage what comes with a reno/construction portion. Keep in mind unsecured LofC are at prime plus 4-7%. If you calcs are wrong on the reno, you will lose more money then you anticipated. Good luck.

Hi All. Has anyone had any dealings with the above. They are based in Toronto. I am asking because 1 of my tenants got approved for this. Is there any risk on my part? 

@Sheldon Duvall You are correct, inspection cost will add up. You can build this into the deal so you recover it but it makes you less competitive and you leave too much on the table. Also, there is a limitation to the warranty. One suggestion would be for you to learn how to inspect homes yourself. You can take the course on this, get the credentials, offer the service on the side and use the skills for your wholesaling/flips. When I started out, I would shadow the inspectors I hired for my deals, and after a few, I learned what to look for so I was able to do 25-40% of the inspection myself while at the open house/walk through before hiring a real inspector and making an offer. Good luck   

$15K d/p is possible but not in Toronto, Ontario. Average price in Toronto is $750K, so even as a 1st time home buyer putting 5% down payment (which will be increased to 10% with CMHC rules) you would need $37K. There are cities you can buy an investment property using $15K down payment. The lpro about using $15K is that it is only $15K. The entry point is low. The con is you will probably get a class B or C property in a city that you are not in, thus having to hire to property management firm. If you have $15K, you might want to use part of that in educational course that teach/coach you on how to do BRRRR, MFU, etc.

@David S. If you have the cash but not the time, then private lending may be the way to go. You can partner up with mortgage agents and other private lenders to lend out funds. You won't get the equity growth or mortgage paydown, but you will get the cashflow. There are JV opportunities too where you are the money partner.

@Warren Lee what % is the mixed usage? 

@Devin Solberg

I have done both in the past (ie used agents from the same brokerage and different) and personally found it better to use an agent from a different brokerage. The reason for this, is the 'coffee machine talk'. When agents are not in the same office, there is less coffee machine talk (ie pillow talk). I want to know for sure my agent is working 100% in my best interest, thus having them at as far distance as possible from the seller agent the better. good luck.

@Scott Galloway If the market is depreciating, and the rental income can be lost if there is a major repair, then it doesn't make sense. Why be in a market when there isn't cashflow, APPRECIATION and mortgage paydown. It doesn't matter if it is NO money down. Money can be made. Time is something you can't buy more of. Spend your time investing in areas that have all 3 so you can have more time. AFS is a great strategy. And there are reasons why many sellers are willing to do AFS. Just because it is there, doesn't mean you have to do it. Please me separate and I can share more about this. Good luck with your course. Your education will serve you well. 

@Devon Rollison You spend some time working on your plan! Good for you. Give what @Jaysen Medhurst wrote another read. If your forecast is truly achievable, then refi with A bank with option for 2nd mortgage. Get a private 2nd. Your ROI will allow you take on a 2nd at 12+% not issues. Ensure your 1st mortgage has a revolving HELOC option. Also have someone check your ARV and MAO calculations. Good luck.