All Forum Posts by: Joel Arndt

Most 'A' Lenders consider 5+ units to be commercial (in Ontario, at least). So 3 units will fit comfortably under their criteria for residential loans.

Unless the property has commercial space in it (storefront at street level, for example). That's commercial.

The zoning doesn't determine how the lender will decide between residential and commercial. Zoning determines what you're allowed to use that property for, according to the city.

So in the future, say you decide to put a retail space in this property and it's already zoned for mixed residential/commercial use, you shouldn't have a problem. But if it wasn't zoned for commercial at all, then you would have to go to the city and ask for your lot to be rezoned (which is a whole other beast of a process).

Ooh, I'm interested in hearing about this too.  

I imagine incorporating will have stronger legal standing than a simple agreement. And because a rental is essentially a small business, incorporating might be the safest way to structure it. But I'm not a professional. I look forward to hearing what others have to say.

@Haleigh Byrnes I've been considering the same thing. Here's my thought process so far, but I'm interested in what others have to say on both sides of the coin (to license or not to license). First, realtors have to mention they are a realtor everytime they walk into a real estate transaction. Even in their marketing, it has to be clear that they are an agent. This makes it difficult to market to the people who want to leave realtors out of the transaction. Some people won't trust you the second you mention your a realtor. On the other hand, the license can lend credibility in some eyes. So it depends on what kind of deals you're hunting for. I hunt for off market, distressed properties. A license is more often an obstacle in those cases. Second, sure, you get access to the MLS, but for a monthly fee, and you have to be with a broker. If you're not performing for the broker, there's less incentive for them to help you out. If you want to make selling real estate your full time job, then this isn't a problem. I've thought of making the job switch to agent, but then I think about the time and energy needed to build that business. Right now, I would rather put that time and energy into investing, not another job. That's not to say I won't change my mind about that in the, future. Those are my hindering factors at the moment. I have to say, I often teeter on this decision, though. Just to be in the real estate world full time would be real nice. The other option I'm seriously considering is becoming a mortgage agent. Understanding the flow of money inside and out (in a real estste transaction) like a mortgage agent does is super attractive. For now, working closely with a realtor has been fun. As long as this relationship is beneficial, I see no reason to become an agent myself. I'm curious to hear from people who have made the jump to realtor to give them more access to deals.

I'm working numbers for a deal and one of the options I want to offer the seller is principle only seller financing. Is that legal in Ontario? I seem to remember reading somewhere that there has to be at least 1% or 2% interest on any secured loan, in this case, a VTB, but I can't seem to find anything stating that specifically.

I might be a little late to the game here, but here's some info for anyone else looking to convert a single family home into a duplex in Hamilton, Ontario.

https://d3fpllf1m7bbt3.cloudfront.net/sites/defaul...

That's the by-law document. Skip to "Section Nineteen". Any single family house in AA, B, B1, B2, C, D, R2 zones can be converted to contain no more than two dwelling units. 

So essentially, any SFH can be duplexed in Hamilton. Section 19 lays out the basic requirements for each unit as well.

Hope this helps.

How's the cashflow? Where are the rents at?

For you diversified and experienced investors, when did you start researching then buying into other markets other than the one you started in? Was it just when you got frustrated with your first market? Was there a moment that stood out to say, "Yup, I'm ready to grow?"

Hi James, are you investing in Ottawa primarily, now, or are you still interested in investing in Hamilton?

Is it possible to get a rate under 3% any more?

@Ryan Kirk Can you break down the numbers from that project?