All Forum Posts by: Kris Bucci

 Good Morning Rosing, first off you live in an amazing place and would love to see the listings for your home.  I grew up in Port Alice, far north of you, but traveled to Parksville every weekend in the summer, so I know the area well.  Regarding seller financing, yes I can provide you with some knowledge and introduce you to a legal team that have structured these in the past.  When deciding to offer seller financing or not, you need to know what your needs or goals are.    If your need is to take the lump sum cash from this sale to buy your next property, then Seller Financing is not for you.  If you are happy with a small sum of cash up front (DownPayment) followed by years of passive income, then Seller Financing can be a great tool.

Benefits: 

- Defer/spread capital gains up to 5yrs (big tax savings)

- Offers you passive income stream for years to come

- Continue making income from your property without any of the headache/maintenance.

- If they stop paying, you get the property back

Downside:

- You don't get all the revenue up front, it is deferred over the life of the agreement

- Requires further legal advise and cost (nothing crazy thought)

As well, there are different structures you can use: Agreement For Sale, Vendor Take Back and even Rent to Own.

Agreement For Sale: Title remains in your name until transaction is complete.  This works well if you still have a mortgage on the property with a penalty for breaking.  You create an agreement for say 3yrs, where they pay you a mortgage payment based upon the agreed sale price for 3yrs (amortized over 25 or 30yrs).  At that point, they are required to purchase the home outright by paying you the balance owing.  We just did this as a buyer for a vacation home.  We paid roughly 20% downpayment and are paying the seller interest only payments on the amount owing for 2 yrs.  At which point we have to get traditional financing and pay the balance owing.  At that point title would be transferred.  The seller had a 2 yr mortgage remaining, so he is using my payments to pay his mortgage and pockets the difference.  

Rent to Own: Is very similar to Agreement for Sale, but you are deferring most of the downpayment and you are counting a portion of their mthly payment as their downpayments.  Example you charge them $2000 per mth.  $1500 is the "rent" payment and $500 is their DP savings, so at the end of 5yrs they would have $30,000 towards their DP covered.  

Vendor Take Back:  You simply become the bank.  You sell them the house as your normally would, transfer title etc..  The only difference is you are listed on title as the 1st mortgage.  You have a lawyer draft the mortgage paperwork, you charge an agreed upon interest rate and ask for a downpayment of your choosing.  If you don't have a mortgage and are looking for passive income, this is a great tool.  You spread capital gains out for 5yrs (check with accountant on this), and you get a mthly check in the mail.  If they default, you are in 1st position and take the home back.

I hope this helps... and please if one of the options makes more sense to you, please let me know, I can go deeper or at the very least point you in the direction of a lawyer who has done these types of transactions.  If Rent to Own is the most appealing I know a few people who are actively doing this strategy.

Thanks again for reaching out.

Kris

Hey BP,

It's been quite the year for sure... putting COVID aside, I can say I've seen and heard some pretty amazing stories from investors here on Vancouver Island. We personally have transitioned from purchasing Turn key buy and holds, to building our own purpose built rentals and are extremely excited about the opportunities this provides us and our JV partners. But more importantly we've continued to grow our network in and around VI, BC and Canada. We've gotten close with investors crushing it by doing flips, others doing rent to owns and others offering amazing private lending opportunities.
So what I’d like to do it see if I can help expand some of your networks.  If your interested in what we do then great, if your looking for an investor focussed realtor in Victoria I can hook you up, if your interested in other niches let me know I can do an introduction...
Post below or PM me with what your looking for... 

Thanks and talk soon

Kris

Uncovered Oasis

 Become the expert, know your stuff and be confident.  You need to project confidence and people want to know that you will take care of their money like you take care of you own or even better. 

Once your ready, get yourself out there by networking... have conversations about Real Estate with everyone... your dentist could be your next JV partner.

Biggest thing be a good person, most investors can smell a cheesy sales person coming... don’t be that person.

I currently invest near Victoria and have done a couple JVs. happy to chat anytime. 


Kris

@Dominic Royles Short answer to your question is yes... there are many places in Canada to invest for Cash Flow.  Where depends on your budget and what you are looking for in an investment.  We personally invest outside Victoria over on Vancouver Island.  The small bedroom communities cost of acquisition is lower, but the rent remains high.  Prices have risen, but we have been purchasing turnkey 5 bedroom homes (3 bedroom up suite and legal 2 bedroom lower legal suite) for in the high 500s to lower 600s And getting about $4100 a month in rent.  

These properties cashflow over $1000 a month and the area continues to increase 5-10% in value every year.  

We personally have moved into building purpose built rental as we can get in at even a lower cost and make the homes exactly the way we want them.  Your looking at low 500s to build, and will get the higher rent as the home will be shiny and new.

If you want more info please let me know.  We are have to assist in anyway... simply as an ear to bounce ideas off or as working partners, my wife is an investor focused realtor and I specialize in property construction and management, so we can provide a lot of service, and if aren’t the right fit, I guarantee we know who is. 

Talk soon.

I recommend reaching out to Aaron Collard from Ontario. He’s 15 yrs old and purchased a 6-plex.  I also know he’s reaching out to teens across Canada to assist.  You can find him on Facebook under “The Teenage Investor” or through is moms page Jamie Collard.  His family is big into multi-family investing.

Good luck...

I just got message from these guys too... I guess the old saying if it looks to good to be true it must be. 4% interest at 100%LTV... For the two seconds I believed it, I was ready to do a happy dance.

@Kelvin Truong I'll echo what the others are saying about getting educated and reading up on REI. I also want to add, networking, networking, networking. Posting here is a great start, next question to find an answer for is, are there any good investor meeting-up groups in Calgary. I'm from Victoria so not totally sure. It would be good to find some small grass route local meetings, but below are a couple national ones that you'll be able to find more Canadians in. Basically get educated to help find a niche you may be interested in... then network to learn from someone who has both done it and may want to work with you. I personally am from Victoria and have purchased 3 cash flowing turnkey duplex's here in Victoria in the past two years (2 with JV partners from Ontario). But I've changed my focus to building purpose built rentals (suited homes) All this to say is that as you grow your focus will likely change.
Facebook groups: Real Estate Millionaires by Keyspire,  Fearless Investors by investor life.  Both have free info as we well as paid coaching.  Both are excellent, but most importantly is to just network with the participants.  Hope this helps...

Good morning, we are cash flowing on properties on Vancouver Island near Victoria. Purchase prices have gone up in the last year, but you can get in on a 3up/2down suited house for the 600's while getting 4K plus in rent. CF is in and around 1k per month. We purchased 3 of these over the past couple of years and have decided to build two more to get the entry price into the 500's. Our version of BRRR... Buy, build, rent, refinance, repeat...BBRRR

I think from the tone of the governments in Canada if this keeps going and the need is there the governments will do more.  BC added $500 a month paid directly to landlord, and said it could rise if needed. But between the 75% wage coverage for small business, $2000 monthly from feds and $500 monthly from B.C., I’m pretty sure my tenants will be fine.  As long as they can pay most of the rent each month, happy to defer a portion if needed.