All Forum Posts by: Huong Luu

@Elijah Williamson

Be more specific of the investment deals you are looking for so you don't waste your time. If you put even $5K of earnest money in, that could get tied up for a couple of weeks, as the seller could instruct their lawyer or broker not to release the funds. I have done deals with $0 earnest down, so it depends on the conversations you are having with the seller.  Good luck

@Doug Findlay Welcome to the REI world. 36 hours in and your already found BP. Good job! I would suggest you and your wife get as much knowledge over the next 3-6 months as possible, while getting the HELOC set up. During these 3-6 months, find a mentor, figure out what strategy you want to do, how much risk you are willing to take, etc. Just because you have family in the US, doesn't mean they want to get into RE. Also, the area they are in, may not be an area you want to invest in. A word of caution, the HELOC has to be paid back so it is no free money. Take some time and read up on OPM and Smiths Maneuver. Buying an investment property may be a few months off yet for you, so maybe using the HELOC for second private mortgages may be an option.

Good luck

CIBC has a pkg starting at $6/m

@Jocelyne Sema to expand on what @Chris Baxter and @Account Closed shared with you:

1. The heloc you get with your primary residency: Get a re-advanceable kind (ie as you pay down your mortgage, the heloc goes up). When you make an investment with the heloc, the interest you pay on the heloc is a tax-deduction. Look into Smith Maneuver.  

2. Do you want to be a landlord? What is your long term goal?

3. Take the time to learn how to analysis properties and determine if you had to carry the investment properties along with the new mortgage, how long would you be able to carry them (worst case scenario)? Ensure your plan has a mitigation to protect your primary house.

Good luck. 

@Cloud Huang You are in a great position! If you plan on staying in your job long term, then perhaps a TURN-KEY rental portfolio is better suited for you. You are completely silent and have a capability team running things for you. This also opens up the JV and syndication options for you. With your relocation plans to the US, do not limit yourself to only Canada. Investing in the US allows for 1031 exchange which is not available in Canada while giving you other similar benefits to Canada.

In regards to your questions, I would narrow them down. They are too vague. Look at your long term goals, what returns you want, etc to help get better questions. 

Good luck.   

Hi Ramesh, I invest in Ottawa and have a team there. Happy to connect.

@Jeremy B. Here are a few other things to consider:

1. depending on your experience and what you bring to the table, the split doesn't have to be 50/50. It can be 75/25, 40/60. Be open to making the numbers work for your investors. 

2. what is the CF and forecasted future refi at? If the money investor is only getting their initial funds back after refi and no additional growth, then this is not a good investment for them. They risk the capital, cashcall and make no income for x years. Check your wording "money partner keeps 100% of the refinanced money pulled out to get as much money back as possible". So for example, if I put in $100K as a money investor and at refi, the property is able to refi and pull out $250K, does that mean I get the full $250K?

3. the money investor may or may not need to qualify for the mortgage. This can be set up in several different ways.  

Lastly, 'best structure' depends on which side of the fence you are on. 

Good luck

@Keshera Lyons Qualifying for a mortgage is only is 1 way to buy RE and get into the game. If you do not pre-qualify for a lot of mortgage, find out what is being reported on your credit report and determine if reducing certain line items will help. There may be an error on it. It may be your score is low or your loan usage on credit is high. Also, not all mortgage agents are the same. Meet other agents and ask if they deal with private funds. If you find a good deal, you might want to consider private lending. 

The other way to get into RE if you do not qualify for a mortgage is to partner with someone else who can qualify in exchange for you doing the work.  

Good luck.

@Leon Doucette ask your partner if they have a JV document they want to use. Ensure it has items like:

- what happens in case of money overrun (ie longer reno time and cash call)

- what is the exit strategy (ie listing with agent to sell or B&H, who has 1st right of refusal)

- who  is  responsible for what and when

- repayment order (who gets paid 1st and in what order, etc)

- How are subs dealt with?

Make sure you do your due diligence on this partner. Account for holding cost and legal/accountant/realtor fees.

Good luck

@Ryan Kenneth If you are not able to get the info, you can use a rough % is 40% expenses. If you have to pay a double owner tax for being non resident then you will want to facture that into your expenses to or if pest control is needed. Usually 40-45% is a good estimate. Good luck.