In need for your advice

[Prof]

Hello everyone!

Happy new year!

I have been reading many posts and success stories on this forum and feel really great about it. I have also read Don Campbell`s `Real Estate Investing in Canada". I would like to join R.E.I.N but I have a question that I felt I needed to ask. I would like to know how difficult does it become to get financing after buying a few properties. I am sure I read that the Quick Start program covers the strategies for obtaining financing for acquiring more and more properties but how easy or difficult is it to implement those strategies?

Also, I would love to find out more about the benefits of the Quick Start program and the membership. Your kind advice will be greatly appreciated and will enable me to make a decision sooner.

Thank you,
Ayesha Syed.

 

[RedlineBrett]

QUOTE (Prof @ Jan 2 2008, 10:13 AM) Hello everyone!

Happy new year!

I have been reading many posts and success stories on this forum and feel really great about it. I have also read Don Campbell`s `Real Estate Investing in Canada". I would like to join R.E.I.N but I have a question that I felt I needed to ask. I would like to know how difficult does it become to get financing after buying a few properties. I am sure I read that the Quick Start program covers the strategies for obtaining financing for acquiring more and more properties but how easy or difficult is it to implement those strategies?

Also, I would love to find out more about the benefits of the Quick Start program and the membership. Your kind advice will be greatly appreciated and will enable me to make a decision sooner.

Thank you,
Ayesha Syed.

Hello Ayesha,

The short answer on financing is `it depends`. Lots of things like how much cash you have and how much you make, are you using partners etc. will influence what you can buy... But there are some very knowledgable brokers that post regularly on this forum that could work with you to get you set up in the best way for your situation.

From my experience getting two or three under your belt (if you have good credit and good ratios) isn`t a problem it`s once you get past that.... BUT my advice would be not to worry about what you`re going to do after you have three properties until you HAVE three properties! You will still be very far ahead with a couple under your belt.

I haven`t taken quickstart so I can`t comment on it... however I can say that one of the best (if not THE best) benefits to REIN membership is the networking available through REINspace... the `members only` section is chock full of excellent posts and you can get direct answers to any specific questions you have about your situation. The senior members are very good about answering stuff and getting involved yourself will help keep you motivated to put up numbers!

All the best and good luck!

 

[MikeMcCrae]

Yes the answer to getting credit is "it depends". Talk to a mortgage broker and get his/her advise on how to structure things over the long term. But having said that Brett is quite right get busy buying the two or three and work it thru. Try not get caught up on worrying so much about later that you don`t act now. Joining REIN is a great step if you are serious about being in the Real Estate business. Join now and benefit from the networking, then take quick start next time they run it. Knowledge is power!

 

[RobMacdonald]

Hi Ayesha,

The ease of getting credit for rental properties will depend on a number of factors, so the answer to that questions is `it depends`. But regardless, be sure that you`re dealing with a banker or broker that udnerstands your long term goals, ie. a 5 year plan. Decisions that you make today can seriously impact your ability to qualify in the future.

We run into clients regulary that `rushed` into their first 2 or 3 properties, and ended up with very poor financing terms, that really hinedered their ability to be approved for the 4th, 5th and 6th properties.

So, just be sure to do your due diligence with any bankers or brokers you are considering using.

 

[Prof]

Thank you all! I appreciate your advice and encouragement. I`m glad I asked.



Ayesha.

 

[Prof]

Hi Rob,

Is it possible you can list a few of the factors?

Thanks,
Ayesha.

 

[RobMacdonald]

Hi,

Credit History
Income, salaried vs Self Employed
Down Payment source
Ltv requested

Also, every lender has a slightly different formula on how they calculate the rental income and applicable rental offsets. This determines the amount of positive or negative cash flow for the application.

Hope that helps.