All Forum Posts by: Jon Marois

Hey , I am a local to central Alberta. How is it working out ? Are you able to cashflow the property ? 

Alberta is a tough market right now !

Congrats on your purchase !

So I was recently contacted by a Mini storage company that was looking to get out of the business. The business includes a few different lots and mini storage / sea can units. The company makes around 200k per year in gross revenue. They are asking around 1.4 million for the property and business. They will entertain a 1/2 seller financing but I am unsure on how this works, I have been following a lot of bp and never really heard how it works when only a portion is seller financed. the other issue is how much the bank will require being that it is technically a business not just real estate property.

Has anyone every gone through this before. Totally new to this one. I believe the valuation of the land and business is fair I just don't know how to go about getting 400,000$ for my down payment.

Any feedback would be awesome 

Thanks in advance.

Jon

Thank you all , I really appreciate the feed back , I was able to work with my local bank and establish a great interest rate with no brokerage fee, just a 1200$ lending fee.

Thanks all. Still waiting to hear back from my bank on their offer

I am working on a deal trying to get financial for a commercial property and the the lender has listed the following costs. Email form lender; Loan amount – 75% LTV max = $231,750 financing Interest rate – Prime + 1.50% Amortization of 20 years Payment would be $1,512/Month. Borrower would require the following amount of cash to close $309,000 Purchase Price -$231,750 loan proceeds $77,250 Down payment required Plus: $1,160 Lender Fees (0.5% of the loan amount) $6,900 Brokerage Fees (3% of the loan amount) $3,500 Legal Fees (Lender and Borrower side total Estimated) $2,500 appraisal Costs – if not completed and if one is required $3,500 Phase 1 Environmental Cost – if not completed and if one is required $17,560 – Estimated costs Total capital required approximately = $94,810 My question is what are typical costs for Lender fees? And Brokerage Fees? This is through a broker who I am trying. My bank is also running the numbers to see what they can do. 6900 just seemed like a lot . Totally will to listen to any advice. Very new to this whole thing! Thanks

Great help. Thanks guys. 

So I am brand new to real estate investing. I am currently looking for some deals and crunching my numbers. I am from Alberta, Canada. Some rules and conditions differ between the United States and Canada. I am currently self employed and pay myself an average wage from my company earnings. The company also makes a small profit.

My Question is : How should I purchase my first home ? Should it be personally bought? Or through my company?

I would prefer to not pull anymore income from my company because then I will have to pay more taxes. If the money is left in the company and it purchases the property then it may be wiser than losing money to taxes.

Has anyone ever dealt with this before? I have a friend that has set up an entirely different company to purchase and hold the homes in conjunction with his existing company. 

Any help would be greatly appreciated. Thanks in Advance for your time.