Hello Everyone,
Before I discovered this forum I was already looking to invest in real estate.
I am from Toronto Canada and looking to potentially invest in another province (New Brunswick).
I am working with a fellow who used to be a realtor. He runs a flipping business in new Brunswick.
I have about 35K to invest. Here in Toronto that is peanuts. The average home is well over 750,000 in some parts of Toronto.
New Brunswick property is much cheaper. You can get a repo(that needs significant work --20-30K) for about 30-40K.
This individual has worked with a few other investors.
Once an investor loans him money it is registered as a mortgage against the property.
He remits monthly payments for the use of your money for the term agreed upon.
He essentially buys, renovates, and then flips.
Upon the sale of the property the investor has their money returned.
I was intending to invest 35K with him and be registered as the second mortgage on the property.
The property tax assessment was 85K.
The first mortgage was 26K, mine would be 35K, and the third would be 40K.
So he has 3 investors investing in this property including me.
He purchased the property for 40K. This was a bank repo. Tax assessment was 85K.
The arrangement I've made with him is for a percentage of the profits upon the sale of the property.
He is promising 20K return on the 35K in 6 months(completion of renos & sale of the property)
What do you folks think of this?
If you would like any more information please feel free to ask.
I have alot of paperwork from the lawyers. I also have a run of all the numbers to all those who are interested.
I appreciate all the input.
God Bless!
Please pm me for my email address if you wish.
