All Forum Posts by: Zorya Belanger

@Abi Carleigh  Hi Abi, was it a bank or mortgage broker who told you don't qualify? If it was a bank, I would suggest talking to an investor-focused mortgage broker, as they have a lot of different lenders they work with, with different criteria, and you may be able to qualify with someone else. Once you've explore that, and you still don't qualify with anyone, then I suggest to either bring in a joint venture partner (they could get a 10-20% ownership for helping you qualify for mortgage), or find something less expensive to buy.

@Brent Carmichael Happy to help! I will send you dm and we can connect.

Nobody is likely to share legal documents as they’ve spent thousands of dollars with their lawyer creating them. Plus each deal is unique.

I would recommend finding a real estate / corporate lawyer who is familiar with syndications and Canadian securities rules. 

@Monty Lopez I would really talk to an investor focused accountant, if you're main question is around tax benefits. 

Hi @Karen T Ryan! I just watched the episode you mentioned. It was a good one!

I can provide a bit more info. She's saying that it's backed by the government, so she is talking about CMHC-insured mortgages. CMHC (Canadian Mortgage Housing Corporation) is a federally-owned corporation. Their mandate is to make housing more affordable and available for Canadians, so if you are buying multifamily that is inline with that, then they will insure the loan for the lender, and then that comes with more favorable terms (long amortization, higher LTV) and lower interest rates.
You do have to pay a premium and it's quite the process to get it, but usually the better interest rate and terms, are worth it.

One thing on the podcast, when they were talking about the interest rate, they made it sound like she got that fixed rate for 35 years. I'm sure it is only fixed for 5 years, and the amortization is 35. In the US, you can actually get a rate fixed for 10, 20 , 30 years, but that's not a thing in Canada. Some people will take a 10-year fixed, but that's usually the max, as with longer terms, comes higher interest rate. Just something that wasn't clear when they were talking about it.

A commercial loan is not necessarily easier for everyone. For people who have lots of residential mortgages already, low income, self-employed, and high net worth, it is easier. The lender's look more at the building to qualify, rather than you so in that sense it can be easier. BUT, if you have a good job, with good credit, not many mortgages, it's pretty easy to get a traditional mortgage.

I recommend (1) getting more educated about multifamily (2) work with an experienced commercial mortgage broker. If you need some recommendations around those 2, just let me know!

Hi @Ellie Nasir Yes, I agree it's just about finding the right agent. When you find a really good one, they will be able to connect you with everyone else you may need on your team. Best way to find one is to get recommendations from other investors in your area, and then interview those agents. Ask (1) do you own any rental properties yourself? (2) do you have pocket listings? (3) what is the best type of investment property to buy in this city/town? what are most of your clients buying? ... this is more to find out how knowledgeable they are and to try and figure out what their area of specialty is. I find some agents won't tell you they have a specialty; they'd rather say they can find you whatever you want... but most do focus more in one area than others, whether it's new build, fixer uppers / foreclosures, multifamily, etc. Nobody can be an expert at everything. Then, go with the person who's answers you like the best!

Hi @Ellie Nasir! You usually get what you pay for. If commissions are less then there's probably less service. Careful about offering lower commissions to the buyer's agent as they will be less likely to show their buyer's your property.
I personally haven't used those sites. When starting out, buying your first rental property, I'd recommend working with an investor-focused realtor. They will know what types of properties are best to buy in your market and they often have pocket listings (off-market listings), which only their clients hear about. We bought our first condo privately from a friend before we knew anything about real estate and I wish we would have used a realtor. 

Where in Canada are you? 

Hi @Katie Willcox I'm in Edmonton, and I agree that those qualifications are reasonable. We once accepted someone with a credit score below our standards (at beginning of covid because we were worried about vacancies), and it would have definitely been better to just look for someone for another month or 2).

@Michael Grigo As far as the resources on BP and comments from people in US, like Theresa said, some of it is relevant and same for Canada, and some is not. When stuff is related to laws, taxes, and mortgage rules, you need to consult professionals in Canada.

Hi @Michael Grigo There are definitely many Canadians on here. My tip is to always include a location (city, province, and country) in your posts so that the Canadians see them. I get notifications for certain location keywords, and I know others have set up keywords as well.