All Forum Posts by: Marshall Magnus

Hi @Dale Barber

I do not have any property Managment input for you, but I see you are from out of province. Can I ask how you came to single out wetaskawin?

I am both local to, and an investor in Edmonton. My sister just bought a 3Bed 2Bath front attached house in a B neighborhood last week, she was looking for 3 weeks everything she looked at went into multiple offers and sold for over asking price. My sister in law listed their 2Bed 2Bath townhouse in a mature river valley neighborhood, it sold in 2 days for list price with multiple offers(bought for $160,000 in 2020 sold for $200,000 in 2022). Lastly a friend of mine sold his rear detached house in an A neighborhood about a month ago, built in 2008 for just under $400,000 sold 2022 for $500,000.those houses are in the west end, south central, and south west, respectively. I am not the most connected person, but is seems to still be a hot market in Edmonton. 

@Jonatan Nir

Hi, I know this post is five years old now, but I am curious if the deal worked out how you expected? I am also looking to buy my first apartment and could really benefit from knowing the end result. 
thanks!

@Matthew Lefkowitz

This is very interesting! It looks like you have worked though most of the details. I’m working on something similar right now, I’m considering hard money as bridge financing into a six unit apartment building. Did you end up going through with it, I would love to hear the rest of the story.

Thanks, and good work!

I really do hope to hear from other investors, but I am going to call in to several lenders to hear it straight from the source. I will post on this forum with what I hear from them. 

Hi all,

I am Real Estate Investor out of Edmonton Alberta. I’m looking to get financing for my next property  and move into the multi family sector. I’m curious about financing, specifically if anyone knows if I can collateralize my existing (single family, and duplex) properties in a mortgage for multi family. I was thinking this could serve as “skin in the game” and maybe lesson the 20% down payment required. I don’t want to refinance my existing properties because it would increase my payments and decrease my cash flow. I was hoping to get them all wrapped up into one mortgage or somehow attach my existing properties as collateral against a new multi family property. 
I would love to know what the bigger pockets community thinks. 

@Paul MacQuarrie

Hi Paul!
I am not a financial planner by any means, but I have bought several houses with and without CMHC. First off I am assuming that you are buying a personal house and it looks like you are planing on putting around 10% down($50,000). If you are looking at an investment property than it is a moot point, as you are obligated to put down at least 20% because CMHC will not insure a rental property.

Now if the question is how much to put down on a personal property then the answer is, it depends what you want. Like Alice and the Cheshire Cat, in through the looking glass. Alice asks which way to go, so the cat asks where she wants to be. When she does not know where she want to be the cat says “then it does not matter which way you go”. Anyway, with that amount of cash you have a lot of options and without any decided outcomes it does not mater how much you put down.

A couple of examples on opposite ends of the spectrum could be..

1- you buy the house putting 20% down selling assets to accomplish this. It would be roughly $80,000 and you would be selling (I’m assuming) cash flowing or appreciating assets to buy a liability(a personal house).

2- you keep all current assets and buy the house putting 5% down. This would be about $20,000 and leave you with $30,000 which is enough for a 20% down payment on a $150,000 rental property in Edmonton. The rental property would generate more than the cost of the CMHC fees that spurred the whole conversation and at the end of the mortgage you get to own two houses free and clear while only having paid for one  

I think that one of the best things about real estate is that it can be leveraged through the bank at up to 95%. If the question is 5% or 20% down, I say both and buy two properties.

Whatever you decide I am sure it will work out well for you. Good luck!

Hi all,

I am looking to move from single family rentals into the multi family arena, I am in Edmonton Alberta and looking to invest locally.  I have experience with the  traditional mortgage process for personal and rental single family homes. What I was hoping the community could help me out with, is an outline of the commercial lending (multi family 6+ unit) process looks like, the does and don’ts, and any thoughtful tips you might have. 
Thanks to everyone for being part of this community, and for all the help!

Hi @James Mackenzie, welcome to Bigger Pockets. There are quite a few local Edmonton investors on here if you look around through the forums you will find them. Try to find them and read their bio page, there are some people who have business that specialize in helping people find their spot in real estate. 
Good luck!

@Ivan T.

Great work! Those are some very nice numbers, and by the picture it looks like it turned out beautifully! It sounds like you really took ownership over your roll in the project, I know it seems like it is one thing after another on the first flip, the next one will be much easier. If I can ask some questions, I’m curious how you funded the deal? In my area I don’t think we could get mortgages for a house that cheap. Did you hire a general contractor, or did you hire the trades yourself, or do the work yourself? I see you did new insulation, does that mean you took out and replaced the drywall?

Well done!