All Forum Posts by: Matt Geerts

Thanks Sam. 3% down is sounding irrelevantly close to 0% to me. A few grand is something I can scrape together.

Is a trust company necessary for TFSA funds like it is for RRSP funds? If not, then perhaps I can still find a wealthy person to mortgage at 100%, offer them points and high interest.

The entire point of this is just to get in the door to improve the property enough to get conventional mortgage.

Thanks for the info, guys. 

I'd still love to hear from someone doing any zero-down, just to know this wild goose exists.

Roy, I'm not entirely convinced that 100% vtb is all that risky. Say I throw them their paperwork fees at the start, what exactly are they risking? Ending up with their house back? 

I am picturing an inherited house that needs work to be retail ready owned by a fifty-something couple who is otherwise comfortable and thinking about retirement. I'm offering them an income stream and hands-off sale. 

Time for me to hit he pavement with this, or am I missing some risk angle still?

Interesting, Doug. So you are saying 100% financing is not unachievable from a lender? 

VTB at 100% on a short loan seems reasonable to me (inherited house, for example) but Roy suggests that is highly unlikely. Ever done it?

I just looked at Canadian Western SDRRSP mortgage rules and they won't sign for more than 90% LTV either, but that looks like appraised value, not purchase price, so it may work with a seller motivated to sell at 90% appraised.

So, say I find a place I can pick up at 65%ARV. I find a partner to fund the 20% (of 65%, so 13%ARV) down, and I put 15% ARV into repairing it via my unsecured LOC.

Now we are at 80% ARV into it and we can get out cash out.

I want to keep this house and tenant it. 

Can you suggest the mechanics of an equitable deal to buy out the partner? I'd PREFER to just have them on board for interest*time+points, which seems fair, but I am not allowed to do that; they have to be on ownership or else I am buying with borrowed money.

So, without a record, and tapped out of cash, I am boned for another few years until I can save up a fresh twenty or thirty grand?

Is there a point to anything that I have been learning on BP?

Looks like, by buying an unimprovable property first, I have hogtied myself.

@Roy N.

Am I picking nits if I point out that you said "licensed" lenders? Does this apply to Joe millionaire lending privately? Can my hypothetical second cousin's friend loan at 100% of purchase price? I am trying to differentiate regulation from policy from preference.

Perhaps when I feel it is time to get the next one, I should drain my unsecured LOC into my HELOC to make room then downpay from m the HELOC.

Also, can a bank use appraised value to determine the %'s?

I should add, 100% private money on ARV where I supply the repairs via my unsecured LOC?

I am bringing this topic up again to see if anybody has any concrete information on this.

I am trying to find ANY way to get the 20% in a form other than cash. Unsecured LOC, private unsecured loan, private second mortgage, vtb (which is basically a private second mortgage, right?).

Can lending on ARV work? Bank gives me 80%, vendor gives me 20%, I have 10% in repair money in unsecured LOC and plan to refi on ARV in four months?

Has anybody bought a house in Ontario or even Canada without any money down, non-owner-occupied, since 2011?

@Jett Rao thanks for that input, I've been wondering. It sounds like Trudeau is betting hard on oil coming back in the next couple years. I say that because his budget has poured a LOT of money into making it easier for out-of-work oil workers to stay afloat on the government's dime. That move will likely keep prices firm while oil is low - at least until the bottom falls out.

Call me an amateur, but unless you're investing in a single Canada-wide REIT, there is no such thing as "The Canadian Market". This street is up, that street is down, the other street has been stagnant, the east end of this town is booming, the west end of that town is shutting down.

Is beef farming land in Alberta 500km from the nearest oil well going down this month? Toronto is exploding, but Peterborough is under your wing before you even reach altitude on a flight to Montreal and it isn't doing anything crazy. Cross the river from Vancouver and prices look like any other town.

Maybe cliches are for the uninitiated, but "All Real Estate is Local".