All Forum Posts by: Marc Therriault

Hey Tom when you say a shorter term dept if cheaper? Are you talking about interest rate? In Canada you don't get a better interest rate regardless of the length of the term. The only time you get a higher rate is when you lock in you interest rate for 4-5years. Usually they'll tack on about 1.6 % extra to lock it in . I never lock in, I alway use a floating rate I pay 2.5%. And 2.8% on my montage line of credits , when you say a long teen dept is more expensive I'm guessing that's because your paying less on the principal every month?? Because nothing is stoping you from doing the exact same thing with a long term as a short term , the only thing different is you get to decide if you want to give the extra $ every month .
Tom
As per your comment about good wage and savings I make 110k per year but next year I could make more or less or alot less. its a rocky world out there , I have a house and three other property's to a tune of 660k worth of dept. 1000 000 current assets value.(if sold). If I keep this up ill have 1-2 more property's per year, my point is for someone planing to hold a lot of real estate you will soon find your pay cheque is not even close to cover hiccups and short falls, I plan for a lot of real estate dept so a longer term makes Sence , the only time I would ever say go for a short term is if someone was living In a home with no (big) real estate goals. They live pay cheque to pay cheque and never have saving due to there spending habits then I would say get a shorter lown lengh but that's surly not the case for a real estate investor.

Me And my wife are a team when it comes to real estate she understands the goals and benefits so she exited about finding new deals. We look a lot on our iPhones if we are at home or waiting at the dentist we look at mls kijiji and are on a emailing list from a local realtor. That's is awesome every time a new house in our set search criteria come for sale by any local realtor it automatically sends us the listing. We usual get to see 4 new listing everyday , I find its harder to get a deal with a realtor though, because they promise the seller top dollar to get the listing , and we are in a hot market so they are actually selling homes that are pretty crappy buys for big bucks

On that same note I might as well explain y I don't put extra on my mortgages. I save that money and put it away for a cushion and also to buy my next house. In Canada they require 5% down. Maybe it changed to 10% now not Shure. I always save up enought to put 20% down for a few reasons. 1 can sell the property in hard times for 20% less and still be able to pay the existing mortgage off. 2 we have cmhc fees in Canada if you don't give 20% down you pay cmhc for there insurance to the bank that the bank will no be responsible if you default (I think that's cmhc role Canada mortgage home corp) I save 5-10k in cmhc fees by saving up 20% down. Secondly I can borrow up to 80 of the homes value so if I want I can basically take back the portion of the mortgage payment that is applied to my mortgages repayment. All I'm out is the 2.5% bank loan on the existing mortgage. Hope that makes Sence to you guys.my spelling suck I know

It seems to be everyone I talk to doesn't have the same mentality as me on this one. And I feel so right about it. If the bank told me I could have a 100 year term I would. I don't pay biweekly I don't do short 15 year term, my thoughts are y the hell would I commit myself to a high mortgage payment that is suicide in hard times. Now that doesn't mean I don't do extra payment or put more money on my mortgages (I don't because I use that money to reinvest). But I could If I choose to. But I give myself the choice of how much I want to pay extra.. I think someone who is investing in real estate is crazy to volunteer for a short mortgage term. My bank allows me to do double payments monthly and an extra 20% of the original mortgage loan every year without a penalty.

My first deal was boring triplex bought it from my father second deal was my personal home. Also boring , but this summer I bought a home to rentat about fair market value payed 165k. 32k down 20% to avoid cmhc fees and it pulls in 500/months after expenses and pays down the mortgage by about 300 a month, but the interesting part was the fact it was on a double size lot, two days after I got the key I was applying to devide the lot , because I found a buitiful house that was going to be sold or demolished. So I bought it for 1000$. And moved it onto my new lot, build a new foundation/ basement my total cost was 140 k for the project but the house is worth 225k it's currently rented and brings in about the same money as the first house 500/ month plus 350 paying down on the mortgage after expenses I wish I could post pictures

Your are definatly better off doing that than buying a home with not income. But if you looking for someone to tell you your deal is good , that is not going to happen, talk to someone that has rentals in your area and that is successful and not a wingnut, just because the numbers are good on paper doesn't mean it's all good. There's many factors like is the building going to attract low income bums? That will have pets smoke and not pay rent half the time? Is the building falling apart? Meaning tenants will move out because the old windows make it unaffordable to heat or cool or the walls are not sound proof and you will alway get complains about noise. Our area is booming right now , shiny new apartment are being built all over the place. What happens when you buy an older place , when the market is not so hot? Yours will be vacant and the new places will lower rents. Not trying to discourage you at all just sorta feel like you are looking for a (yes it's a good deal). But it depend a lot on where and what and you. Keep us posted

Well I'm new to this site but not to real estate. I have 3 income property's and I'm always looking for more. I have so many question for you guys. Robert kiosakis books were my mentor at 20 years old.Im now 32 self employed and working on my main goal which to aquire passive income via real eastate. It's been a long rocky road but very exiting and rewarding