All Forum Posts by: Julie Toh

@Darcy Currie Most financial planners I've interacted (except my personal CFP) are not keen on real estate investing or on clients withdrawing $ to buy real estate. You'd need a solicitor to help you set up the holdco and a CPA who employs creative thinking in tax planning for REI.

@Sheng Rao I arrange commercial financing for clients in Canada and can educate you on guidelines.

@Akash Patel  In my practice as a mortgage broker in Canada, I'd counsel my clients that their story has to make sense should their commute from their primary residence to work be over 2 hours. Then I'd structure a mortgage accordingly to get it approved successfully. 

@Joe Brown Welcome to BP. Happy you to read about your new passion and your "why" for this. From one gym addict to another, you will need the endurance /stamina for this journey, good on you to start out right. In my practice as a mortgage broker (BC & Ontario), I admire younger clients who boldly take that first step towards their real estate goals. I started at 21 (read my profile) and have not looked back. A wise man once said, "Don't wait to buy real estate, buy real estate and wait." Welcome!

@Randolph Adams How's it going? Have you pulled the trigger and purchased a property in Canada? Your US $ will go a longer way here. If you choose to, as a US citizen and non-resident you are eligible for a mortgage from a Canadian lender. Remote investing is not uncommon for many investors - best to have a team on the ground first. 

@Alex Gallis Welcome to BP and to the world of real estate investing. Find a realtor who is willing to take the time to educate you, you set the expectations and who knows, the realtor may have an old / expired listing - voila! you found a private deal. Before you shop for a property, do you know how much the bank will lend you? 

@Greg Heasman Welcome to BP and to the world of real estate investing. It's a rewarding journey when you have the right team in your corner. We invest in rentals to take advantage of CRA tax deduction - the interest generated by the mortgage for the rental property is tax deductible. With the skills you and your wife have, I don't see why you can't get started right away. 

@Elijah Williamson In my practice as a mortgage broker (Canada), many prospective clients have asked the same question. In theory the strategy @Jacob Perez proposes could work/ has worked, but I caution you that the lender & insurer may decline if the timing is suspicious as per @Tyler Stiller  

Your story has to make sense. Work with a mortgage broker who can create a game plan for you.

@Nathan Lichtman

Using OPM can be a valuable tool in your real estate toolkit but it's important to remember it's still debt. Just because you have less money into the investment doesn't mean you're free from risk. It's always important to make sure you're not over leveraged in any one investment property and to have a firm grasp on the property's I&E. I am a proponent of using OPM for the right situation (read my profile) and I arrange OPM financing only for certain clients. 

Hard money lenders (MICs in Canada) are by far the most common type of OPM finance. MICs provide a loan up to a portion of the property's value, oftentimes including things like renovation costs. These lenders offer short terms such as a year or less - it allows you to exit and roll over to the A side without penalty. You can also secure financing outside of a formal hard money loan, for example from a friend or family member, which usually will offer a lower interest rate. Right now mortgages from "A" lenders are so cheap and even B lenders are offering low rates of 5% for a 1st mortgage. 

Your question, "If you had 100k in Canada and a job that produces 40k/yr, what would you do over the next 4 years in real-estate?" I'd have a game plan for financing for the next, next, next... property. 

@Yves Bourdeau When the down payment is less than 20%, you are qualifying for is an insured mortgage. An insured mortgage carries default insurance as you're aware. There are two ways to pay for the default insurance: either pay in full or add the default insurance to the mortgage loan. I have arranged over 300 mortgages and the majority of clients choose the latter. I'm not sure what you mean by, "to get ride of the mortgage insurance portion..."