All Forum Posts by: Zorya Belanger

Hi @Katherine Cabrera! I'm a full-time active real estate investor (former engineer) in Edmonton with 32 doors, and another 24 under contract. I'm the co-host of the Edmonton InvestHER chapter, and love supporting other women in real estate, so let me know if I can help. 

A few recommendations - learn as much as you can from books, podcasts, and attending free or low-cost real estate investor meetups in your area (in-person is best). Ask other investors about their story - what's worked, what hasn't, and what are they doing now. What they are doing going forward is really the most important, as what's worked in the past may not work in today's market. Try to figure our what strategy would suite your lifestyle and goals (there's SO many ways to do it!). Only then consider paying for help through a mentor or coach, who's been successful in your niche.

It is definitely possible for you if that's what you REALLY want.

The only time it makes sense to use a HELOC is if investing that money into real estate will give you a greater return than the interest rate you are paying. Otherwise, you're losing money. The cash flow from the property should be able to cover the interest payment on the HELOC. These days with high rates, I can see it being very difficult to find a property that would work.

I second what Stevo said, huge difference between 4plex (residential financing) and 6plex (commercial financing). If you can qualify for residential financing, that might make more sense. But it really depends on your specific situation, and your goals for investing in real estate.  Most venture into multifamily (5+ units) once they can no longer qualify on the residential side. Commercial financing carries more risk, and higher closing costs, but can be great if done right, on the right property, in the right location. Where are you thinking of buying?

Hi @Shirley Li where are you thinking of investing, and what strategy? Once you know this, I may be able to make some better recommendations. Keep in mind many books are US-focused and some advice may not apply to Canadians - especially legal and tax topics. A great first book is Real Estate Investing in Canada by Don Campbell.

I would start by listening to Glen Sutherland's podcast called A Canadian Investing in the US - tons a great information for free.

There's a reason investors are flooding into Alberta (and the US, though many more hurdles to get started there). It's hard for anyone to grow a portfolio with only negative cash flow properties (in growth markets). Though growth markets are attractive for the appreciation, I would balance it with some cash-flowing properties (in income markets), or properties in hybrid markets (where you can some cash-flow and some appreciation). I consider Edmonton a hybrid market right now.

Sure you can, you just have to get far enough away from the most desirable places to live. I wouldn't focus on the price of the property as much as its return on investment, and who is going to want to live in that $100k property?

Quote from @Park Sunghyun:

Thank you very much for all your responses! I find it interesting how everyone who replied either owns a property in AB or NB. If I can ask a follow-up question, how do you go about researching a market out of province? Where do you normally find information? 

For Alberta check out the Owl put out by ATB Financial - an Alberta credit union. Population has increased big time in Alberta lately, making the economy strong, real estate market busy. Edmonton is still affordable but prices and rents will be increasing, to catch up to Calgary, which is typically 12-18 months ahead of Edmonton. There’s a bigger gap now between the cities then there usually is, so I don’t expect it to stay that way.

The biggest thing is that we’re short on housing, and will continue to be for a long time. Even with all the building planned, we will still be short, so come a build a 6plex with 5-10% down. It will be rented easily.  

Edmonton’s the place to be right now - there’s not much more research you need to do :)

From the Owl:
Thanks to the influx from other provinces, Alberta’s population continues to grow at a faster clip than all other provinces. In the third quarter alone, it expanded by 1.3%, reaching 4.76 million as of Oct 1, 2023. The quarterly gain of more than 61,000 is the highest on record.

Over the latest one-year period, Alberta’s population grew 4.3%, far exceeding the national increase of 3.2%. PEI ranked second at 4.0%. Alberta has not seen an annual growth rate this high since 1981. In absolute terms, this is the strongest year-over-year change Alberta has ever witnessed - a stunning 195,058 new residents in the last four quarters.

I would talk to commercial mortgage brokers to understand your financing options.

Hi @Cora Hunchak

I realize this post is a bit old, but thought you may appreciate another Canadian perspective. So many are quick to suggest financing options only available in the US which I'm guessing is not too helpful.  My suggestion would be to look into working with partners and do a joint venture, or get into multifamily. We were in the same situation where the banks said no to more residential mortgages, but talking to a commercial broker opened up a whole new world of options! Commercial qualification is based on your net worth and the building's income, not your income.

Hi @Jan Chang (and @Sri K.) I'm hoping I can help! I've bought several residential and small multifamily buildings in Edmonton with investors. Before jumping in with any tips or recommendations though, I first have some questions for you. What do you mean when you say "multifamily"? Usually, that term means 5+ units and commercial financing. What are your goals and timelines? How much time do you have to dedicate to this? Since this may be personal, I'm happy to jump on a call sometime.