All Forum Posts by: Jordan Perry

@Steve Kolbuc

Hey Steve, I am relatively new to New Brunswick Investing, but have been doing a lot of research for the past few years such as yourself. A few years ago me and a good friend flew down to New Brunswick to check things out and get a feel for the area and the people. Since then I have been putting together my team to make investing there possible. 

The tide is definitely rising in New Brunswick (That's a pun directed at the Bay of Fundy) but it is still possible to find good deals. I have always been of the mindset that if the numbers work, it doesn't matter if the prices seem "inflated". If you are a cashflow investor such as myself, and many others who invest in New Brunswick, your return is based off of the rental income and not what is happening to the market and real estate prices. Do good analysis and due diligence before buying a property. If the numbers work, the potential is there for a good investment.

As far as supply goes, the deals that hit MLS are definitely getting more few and far between, which is why it is more important than ever to keep good relationships with your team members to help you find properties. The ones that don't hit MLS are harder to find, but usually are better deals.

As far as investing out of province goes, A good team is the backbone of a successful investment. I would be happy to share with you, and anyone else who is interested, how I chose who to work with and how they make real estate investing much more enjoyable. 

P.M me and lets chat!

Hey Andres, 

I am not an accountant, and do not invest cross border at the moment, so I am not the right person to answer that question. However, I do know the right guy to talk to! My accountant specializes in helping real estate investors grow their businesses and their firm works with many cross border investors such as yourself. If your would like to P.M me, I would be happy to refer you to them. 

Hey Antonio,

My accountant is from Ontario, but these days it doesn't really matter where they are from, if you don't mind not meeting them in person (just the other day we had a zoom call actually which is more than sufficient to have a conversation with your accountant. I don't plan on hugging him anytime soon lol). They have clients all over Canada that use their services because their primary focus is helping real estate investors grow their businesses, and they are very good at what they do. he used to be a forensic investigator for the CRA so knows how to make sure you are legally compliant with the tax laws, while being able to make sure you keep more of what you earn.

P.M me if you would like to chat more about this!

Hey Amy. My accountant is fantastic. All they do is work with real estate investors and they are investors themselves, so they understand our needs and wants.

That also are cross border licensed, so if you ever want to branch out to start investing in the states, they are there to help!

P.M me and let’s chat, I think I can help.

Brokers have access to A lenders. Did yours not tell you this? Other lenders allow for more than 5 as well. If you had success with an A lender at a branch, you should have had been able to use your broker for that one as well. 

Apologies, maybe I am misunderstanding? 

Hey Jennifer, 

Many other feel you pain of the ridiculous market in Ontario. I think this is a fabulous idea! Nobody ever said that you have to own your own home before you can own a rental. In fact, due to the crazy home prices, what you are stating as an option, has never made more sense than it does today. If you are okay with renting while you build up a portfolio of properties, this will set you up in a pretty great way when you are ready to move to a more rural area. 

That being said, now is always the best time to start investing in real estate. So if you and your husband were able to purchase a rental property for you to live in and rent out other units, such as a duplex, triplex or 4 unit, you would have the option of using as low as 5% for your down payment. This doesn't always wok for people given their situations ( i have a 16 month old so this would be tough lol) but can work for some!

Hope that helps!

Feel free to PM me if you would like to chat more.

-Jordan

@Account Closed

Unfortunately not all mortgage brokers are made equal. Its too bad that things like this still happen. Thanks for sharing your story. All the more reason to use a broker that specializes in investment properties. Its a lot more work for us to handle an investment property than just a single family home, especially for those owners who hold many properties in their portfolio, but for those of us that do it, its very gratifying to be able to help fellow investors! Before I was one, I had some issues with brokers as well, which further motivated me to continue on the path of becoming one and filling a hole in the industry where most brokers don't go. Have you had success with a broker since then? 

Hey Andy,

I own properties in Saint John and Fredericton. PM me and lets chat!

I have had some success in Saint John and Fredericton, but Moncton is very inflated right now and is drawing a lot of attention from out of province investors, and people looking to move to where the cost of living is much less. 

I have been working with a real estate agent from Moncton that is fantastic. Anyone who needs an agent feel free to PM me and I will happily share contact details. 

I am a licensed Mortgage Associate in New Brunswick and would love to provide any support you need in making your purchase. Feel free to reach out to me anytime. 

Hey @Kiril Nikolaev

Mortgage Associate here. The rates are typically higher than residential (3.9-8% currently for 5 yr terms), but with CMHC insurance, the rates are much lower and you can put as little as 15% down which also gives you the option to extend your amortization out to up to 35 yrs ( depending on the property). 

On a conventional loan you will have to put down at least 25%. If the debt service ratio exceeds 1.2 (usually this is a common metric for lenders to use) than you will have to increase your downpayment which decreases your monthly payments to meet their expectations and risk tolerances. With how hot the market for commercial properties is in Ontario specifically, usually buyers find that more of a downpayment if required due to the lack of cashflow at the price point. 

You will find that often times that qualifying for a commercial loan will be easier that a residential loan (/if the property has strong financials), as they primarily qualify the property as opposed to the borrower. Cap rates that appraisers will use to value your property are location specific and of course, market timing specific. If the prices of commercial property goes up, Cap rates are forced to compress. The same is true inversely. If you would like to know more about Cap rates in your area, reach out to a commercial appraiser! They are usually happy to give free advice before you buy, as they want your business. With commercial loans, another great aspect is that the borrower gets to pick the appraiser and approve the appraisal report before sending to the lender. 

On one occasion, I got an appraisal I was not happy with, and sent it back, stating where he was incorrect. He ended up agreeing with my reasoning, so I was able to add an additional $40,000 to the value. 

Hope that helps!

If anyone has any other questions I would be happy to answer them to the best of my ability!