In the last 10 months I have taken my cash and bought three properties. All three properties have positive cash flow. My cash is gone and it will take a while to come up with the cash for another place. How do I buy another property with out the cash for the down payment? How do I get my first three properties to buy my next one? I was told to get a line of credit against my properties I would have to wait a year. What are other ways to buy more properties. How do you buy properties with no cash?
I have three properties, what next!
- Thread starter ronda
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- Oct 7, 2007
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- 699
Hi Ronda,
First of all GREAT WORK for taking action!!
Next step involves 3 words...Other Peoples Money (or OPM)
If you have exhausted all of your current cash/equity, then it`s time to start learning some new strategies such as Joint Ventures, RRSP 2nd mortgages, Vendor Take Backs and Assumable Mortgages. Each has it`s own set of features and benefits, but the key is to become an expert in a particular strategy and run with it.
If it is JV`s then you need to become confident enough in yourself to "pitch deals" to people. They will need to buy into you and your experience before they will invest. To me RRSP`s are a huge pool of relatively untapped resources...this is an area that we tend to focus on as people are highly disappointed in their current investment returns and are looking for an alternative. VTB and assumables are great right now because there are many motivated vendors who desperately want to sell right now.
Become a specialist and got get `em!
First of all GREAT WORK for taking action!!
Next step involves 3 words...Other Peoples Money (or OPM)
If you have exhausted all of your current cash/equity, then it`s time to start learning some new strategies such as Joint Ventures, RRSP 2nd mortgages, Vendor Take Backs and Assumable Mortgages. Each has it`s own set of features and benefits, but the key is to become an expert in a particular strategy and run with it.
If it is JV`s then you need to become confident enough in yourself to "pitch deals" to people. They will need to buy into you and your experience before they will invest. To me RRSP`s are a huge pool of relatively untapped resources...this is an area that we tend to focus on as people are highly disappointed in their current investment returns and are looking for an alternative. VTB and assumables are great right now because there are many motivated vendors who desperately want to sell right now.
Become a specialist and got get `em!
- Joined
- Jun 9, 2008
- Messages
- 124
You would have to find a Joint Venture partner aka. someone with cash and get them to finance another property with you if you are looking to get another one immediately. Or you can wait a bit until you can refinance your current properties and put up the equity for another one. But joint ventures would be the way to go.
I`m 21 and a student and I am joint venturing with my parents for properties.
Good luck!
I`m 21 and a student and I am joint venturing with my parents for properties.
Good luck!
- Joined
- Feb 18, 2008
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- 1,284
QUOTE (ronda @ Nov 11 2008, 08:50 AM) Thank you for the great ideas. How do you go about finding the money. I am very new to this and I am worried that people will be scared off by my inexperience.
Start with the people you know. Family, very close friends, and keep it simple. I`m a big fan of picking a couple of people who have already done it before or who are good candidates and dont` actually have money. Chat with them, share your pitch and ask them why not, what didn`t work and how you can improve.
Russell wrote a JV Secrets package that`s great. It`s a little pricey, but you`ll make it back in one JV. I`ve got a copy and it`s awesome.
I`m sure there`ll be good suggestions offered by others on here, and there are some previous good threads. Check out the member`s only section on JVs.
Start with the people you know. Family, very close friends, and keep it simple. I`m a big fan of picking a couple of people who have already done it before or who are good candidates and dont` actually have money. Chat with them, share your pitch and ask them why not, what didn`t work and how you can improve.
Russell wrote a JV Secrets package that`s great. It`s a little pricey, but you`ll make it back in one JV. I`ve got a copy and it`s awesome.
I`m sure there`ll be good suggestions offered by others on here, and there are some previous good threads. Check out the member`s only section on JVs.
- Joined
- Jun 20, 2008
- Messages
- 6
How about using a hard money loan for the downpayment? This would be a second mortgage I believe, at a higher interest than the first. Do people do this? It is something that I would like to know about as I see myself getting in a similar situation - save to buy a property, and even with my JV partner we`ll be out of money for a while after. Hard money loan or a LOC could be paid off within a few years by the cash flow from the property.
Waldemar
Waldemar
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- Oct 7, 2007
- Messages
- 699
Hard money works OK...but you can typically only borrow up to 85% LTV and the terms are usually not very favorable (ie. 15% interest rates plus 1-3% fees, plus legal costs). So the deal must really be worth it to utilize this strategy.
- Joined
- Jun 20, 2008
- Messages
- 6
I was thinking of using hard money for the downpayment only. We can get 85% financing through our broker, and were thinking of borrowing 5-10% hard money for the downpayment, to speed things up, because it takes a while to save 15% for a $2M building. So, my question is really can I finance the downpayment with hard money, at higher interest rate, and still get CMHC for the other 85%?
Waldemar
Waldemar
- Joined
- Oct 7, 2007
- Messages
- 699
No I doubt it. As mentioned Hard Money Lenders have their own lending criteria and will typically not lend to 100% LTV. This is too risky for them.
You will have to find a way to raise at least 5-20% of the funds yourself or using JV`s.
You will have to find a way to raise at least 5-20% of the funds yourself or using JV`s.
Hi:Congratulations on reaching 3 properties! There are number of financing opportunities available in order to leverage your exisiting equity within your real estate portfolio. We are happy to review this for you and advise what capital can be extracted in order to access for investment properties.
Please give me a call for further information at the number below.
Cheers,
Jas
Jas Grewal, LL.B. , CMP
The Calum Ross Team
Senior Vice President, Mortgage Planner
The Mortgage Centre - Mortgage Professionals Inc.
:MS Sans Serif-->Build Wealth with our Client Personal Finance Library at: www.CalumRoss.comPhone. 416.410.9905 Fax . 416.410.9491
Putting our clients first has made us first. Our team has ranked in the top 1% in Canada since 2003.
Please give me a call for further information at the number below.
Cheers,
Jas
Jas Grewal, LL.B. , CMP
The Calum Ross Team
Senior Vice President, Mortgage Planner
The Mortgage Centre - Mortgage Professionals Inc.
:MS Sans Serif-->Build Wealth with our Client Personal Finance Library at: www.CalumRoss.comPhone. 416.410.9905 Fax . 416.410.9491
Putting our clients first has made us first. Our team has ranked in the top 1% in Canada since 2003.
- Joined
- Sep 18, 2008
- Messages
- 228
Hi Ronda,
Call kevin Boughen mortgage broker (416-509-4047). He will go as portfolio apprpach and will be help ful . I purchased four with his help and going for more. Thanks
Call kevin Boughen mortgage broker (416-509-4047). He will go as portfolio apprpach and will be help ful . I purchased four with his help and going for more. Thanks
- Joined
- Aug 30, 2007
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- 13,881
QUOTE (ronda @ Nov 10 2008, 09:21 PM)
In the last 10 months I have taken my cash and bought three properties. All three properties have positive cash flow. My cash is gone and it will take a while to come up with the cash for another place. How do I buy another property with out the cash for the down payment? How do I get my first three properties to buy my next one? I was told to get a line of credit against my properties I would have to wait a year. What are other ways to buy more properties. How do you buy properties with no cash?
you find investment partners .. you now have the right to do this as you have proven you can do it 3 times with your own money !
Congratulations !
You have reached stage 3 of the 5 ways to make money: using OPM (other people's money) .. more here: http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html
In the last 10 months I have taken my cash and bought three properties. All three properties have positive cash flow. My cash is gone and it will take a while to come up with the cash for another place. How do I buy another property with out the cash for the down payment? How do I get my first three properties to buy my next one? I was told to get a line of credit against my properties I would have to wait a year. What are other ways to buy more properties. How do you buy properties with no cash?
you find investment partners .. you now have the right to do this as you have proven you can do it 3 times with your own money !
Congratulations !
You have reached stage 3 of the 5 ways to make money: using OPM (other people's money) .. more here: http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html