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Just received 567K from apt bldg refi ... and retired at age 41.

TangoWhiskey

0
Registered
Joined
Aug 26, 2010
Messages
380
We had never bought RE as an investment until 6 years ago when after paying off our house mortgage in 4 1/2 years of dedicated focus we switched gears, refinanced that house and put all 180K we pulled out as equity into buying a 24 unit apt building.
Although I knew nothing about apartment buildings I knew that building had to be a good deal as half the rents were at 750 but the other half were 585-650 as the owner lived in the building and didn't raise rents on people who didn't leave, and there was no rent control in this province stopping rent raises. Going through the CMHC financing process meant they wouldn't insure a deal on anything other than actual rent revenues. On the day of closing we were giving out rent increases of up to 200 $. I didn't understand the value increase that would mean, I only thought about the increased cashflow per month.
6 years later on Thursday the CMHC refinance process was finally completed and 567 125.48 landed in our bank account. The reduced interest rates over the 5 years between 2010 and now has meant that although the debt load is now 600K higher, the monthly cashflow is only 800 $ less... and now we have the cash reserves to ride out any kind of storm.
I type this from the south of France, where one apt building deal allowed me, my wife and family of 3 young kids to move and retire to at the age of 41. We added more to the portfolio over the years - 5 single family rent to owns, an 18 unit ocean front development - but it was just this one deal that set us free.
To anyone reading this I would say this: you too can find a deal that will change your life.
Good luck.
 

Rajiv7816

Rajiv J
Registered
Joined
Jan 27, 2016
Messages
16
That's an amazing n real story
Thanks for sharing and inspiration
 

Mark Baltazar

Excited to learn, invest and meet new people!!!
Registered
Joined
Aug 26, 2015
Messages
22
Awesome! Thanks for sharing. This will be an inspiration for many.
 

Stephanie3745

Inspired Forum Member
Registered
Joined
Apr 30, 2015
Messages
45
Thanks for taking the time to share, truly inspiring how one deal can be a life changer for you and those you love
 

carrie palmer

New Forum Member
Registered
Joined
Oct 25, 2016
Messages
10
We had never bought RE as an investment until 6 years ago when after paying off our house mortgage in 4 1/2 years of dedicated focus we switched gears, refinanced that house and put all 180K we pulled out as equity into buying a 24 unit apt building.
Although I knew nothing about apartment buildings I knew that building had to be a good deal as half the rents were at 750 but the other half were 585-650 as the owner lived in the building and didn't raise rents on people who didn't leave, and there was no rent control in this province stopping rent raises. Going through the CMHC financing process meant they wouldn't insure a deal on anything other than actual rent revenues. On the day of closing we were giving out rent increases of up to 200 $. I didn't understand the value increase that would mean, I only thought about the increased cashflow per month.
6 years later on Thursday the CMHC refinance process was finally completed and 567 125.48 landed in our bank account. The reduced interest rates over the 5 years between 2010 and now has meant that although the debt load is now 600K higher, the monthly cashflow is only 800 $ less... and now we have the cash reserves to ride out any kind of storm.
I type this from the south of France, where one apt building deal allowed me, my wife and family of 3 young kids to move and retire to at the age of 41. We added more to the portfolio over the years - 5 single family rent to owns, an 18 unit ocean front development - but it was just this one deal that set us free.
To anyone reading this I would say this: you too can find a deal that will change your life.
Good luck.



Hope something of this would turn my fortune. Inspiring experince. let it motivate many to start froma a small idea which makes abig impact in their lives
 

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Joined
Nov 11, 2012
Messages
71
In reading this post, I would like to share a story as well. It takes perseverance and dedication but great deals do show up. I have been in the trenches of residential for 16 years, and in a big way for about 6 years. Yes, I could write an exciting book of my adventures too. Among the ups and downs, every so often, there become these huge wins.
A month before I left sailing in Croatia this summer, a deal came across my desk for a 4 unit and a 7 unit apartment building situated beside each other. I was excited after I viewed the buildings as I saw an opportunity to create an 8th unit out of the storage area in the 7 plex. (Huge value increase). I asked my realtor what the price of the 7 plex was after it listed. He gave me a number which I thought was decent. It turned out that the number was for both buildings, and not just the 7 plex.
The vendors decided to tell the realtor what they needed out of the buildings and what to list for, not what the market dictated. The buildings had been poorly managed. There were 4 of 11 units vacant for no apparent reason. The 4 plex had even had a 60k renovation in the summer. As it turns out, I aggressively pursued this deal and took about 4% off an already low price, and got an accepted offer.
When I had an appraisal completed for the bank, the vendors had left over $250,000 on the table. I knew I had done well. What is even better is the $100k value I can add through proper management and adding another unit. As of last Friday, every unit has been leased. $350k. 6 months. These buildings cash flow about $5000/ mo. It took 16 years but I got my win. This one deal could let me retire again as well......
 
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