All Forum Posts by: Ram Srinivasan

@Xuan-Thy (XT) Bui, only saw this message now, but happy to catch up next time you are in the area

@Lendo Mutambala

The Key to figure out your path forward is to figure out exactly what your strengths are:

For example, do you have a lot of time on your hands, do you have a wealthy investor network or personal access to credit and $$, and are you more interested in Cash flow or short term boosts in capital?

Do you know the answers to these three questions? Ram

@Dev Horn - That is one of the challenges of Canadian Real Estate, that's for sure. Information is highly restricted and governed by privacy laws.

It just means we have to be ultra creative and find and build solid relationships and look for win-win.

@Todd Shields @Luis Rojas

I believe wholesaling doesn't work in Canada as well as it does in the US for a couple reasons:

1) The rate of mortgage default is MUCH lower than it is in the states. CDN banks are notoriously strict for lending

2) Market is much pricier here than in the states, limiting the pool of investors who are looking to getting into the game

3) Canada's information laws are so much stricter than in the US where so much is information is public record. For example, you may pull the title of the house, and find an owner - but you are not able to know exactly where that owner resides. Pulling title costs $, which is another barrier to entry. We don't have a whole lot of "list source" type of companies that exist in the states.

I am no expert on the fix and flip whole sale game, but I believe door to door, mass marketing are probably the two ways wholesalers can play the game here.

@Brandon Upright 

@Ellen Hearsey- My experience only. I don't know why, but I recommended on of my Rent to Own/ Agreement for sale tenant buyers in the Edmonton Area to use Barry M, BUT my god did he ever charge her an arm and a leg, and generally  delayed things, in what was a time tested agreement I have used previously in other situations.

We ended up getting the deal done, But not before he took a big chunk of my tenant buyers money in legal fees. I genuinely feel bad she went with Barry.

Note, this is my experience, it may not have been shared by others.

I am not fully familiar with the work of Darren.

Regards,

Ram

@Chris Spacil Way to go!! That's the spirit. Good to see young folks getting involved.

@Glenn Thompson, there are a lot of 'B' lenders out there, who do not ask for verification of income - will loan strictly based on property, some are more expensive than others, depends on what you need. Mid West Mortgages is an example.

Let your mortgage broker know of the criteria - < 8% interest rate, up to 70% LTV etc and they should be able to find you a lender to meet your needs

@Steve Haight - I do believe Oil prices and Real Estate prices do go hand in hand, so yes there is potential for value of the real estate to drop. 

However, the tenant/buyer is also in a locked in lease for 3 years and has no intentions to move (has been living in the property for 3 years and have not been late on one payment, high daughter goes to school there and does not want to move). The tenants ability to qualify in the future and ability to fall through with this deal is perhaps the most important consideration, and on all accounts (Income, debt, character), I believe this tenant buyer has got the tools to get there.

Hi All,

I just had a R20 Deal land across my desk that I would seriously consider doing myself but at the moment, I am focused on closing the existing deals that I have on my plate. To that end, I'd like to assign  to another buyer. Please private message me if you are interested by Sunday January 17th. The reason for this tight timeline is that the landlord/owner of the property has reached out to me first and I have committed to getting him an answer ASAP.

As always, since this is forum/ community, I would love to see suggestions/pros and cons and advise you would like to offer.

Summary: As an investor, you are buying a $460,000 Edmonton property  with:

• Property located in the desirable neighborhood of Rutherford Heights SW.
• Landlord would like to sell to pull his equity out of the property for another business opportunity. 
• A rental agreement for 3 years of $2700 per month.
• An A+ tenant family who have lived and paid rent in the house for last 3 years, they have a strong six figure income, no debt. (No missed payments, verified with landlord). Tenant. Cannot qualify as no credit history has been built (pays cash and debit for all living expenses). Tenant is also professional trades person and willing to improve the property. You will have the opportunity to verify and conduct due diligence on the tenant as well
• Deal returns are  35%/yr and/or approx $25225 per year 
• Tenant option down payment total approx 5% ($23,000)
• Tenant is determined to purchase house in a 2 years time frame from you at a price of $480,000
• Aug 2015 appraisal confirms value to be $460,000 and landlord is willing to sell at the appraised value of TODAY if it checks in lower than $460,000
• Landlord also willing to hold back 5% second mortgage if required to minimize cash investment
• Looking to close before Feb 28, 2016 or sooner

@Ash Badry

HI Ash, a very cool approach, who wouldn't want a long term, cashflowing, buy and hold with no money down? I have a couple of questions for you and would be most appreciative if you can shed some light:

1) How do you close these deals? Do you use full Private or Hard Money? OR Do you go with a variable / open mortgage product with 20% down. Part 2, I trust you qualify for this mortgage yourself?

2) I assume that once the rehab and the legal suite is complete and you refinance the property, do you generally go back to the same lender that you put 20% down with (assuming you did in fact go with an A lender) in the first place to refinance the property?

3) 90% LTV is "generally" considered somewhat risky and expensive (you don't find many financial institutions in Canada going there for this reason and especially in this market), what interest rates do you provide? In addition, do you clear the second mortgage with the first mortgagee? Do you run into problems with adding the 2nd mortgage holder as a loss payee on the insurance policy?