Hello!
I have been in real estate sales for many years and bought the brokerage I work at in 2014 from my parents(which works well because I can find good deals), my first House in 2016, duplex rental in 2019 and just got a really good deal on a Modern 10,000 sq ft commercial property for $1.425M where my office will occupy about 1/4. I used a government owned business lending bank BDC(Canada) who was pretty good to deal with and they only required $175k down but it was a nail biter having to provide business plans and projections which is understandable. They used the income from my brokerage to qualify For the loan without any of the additional rental income....I incorporated a new company for ownership of the new asset for tax purposes and now I am starting to research acquiring more residential(Multi) and commercial(office and retail) real estate when the right deals come up.
The building I am buying with a purchase price of $1.425M will have $1.25M financed on it but, being in real estate, I know that the building I am buying is worth at least $2.5M (I said it was a good deal!) after I take ownership and make some small modifications to how it is managed, reclaim some wasted square footage and reduce the expenses.
Is there a way to get some of that equity out to put down on a new asset purchase for the corporation such as a 4–20 unit building with a PP of say 1M or 1.5M.....What is the best way to go about growing quickly but safely? Any advice or tips would be appreciated! I am located in Canada!!! 🇨🇦
