Multifamily investing help

[Jbaroni]

Here's my problem, hopefully someone can give me some tips.
I have been investing in single family for about 15 years and I want to jump into multi-family.

I took the multifamily investing secrets course it was great, I learned lots.
But I only have about $200000 cash I would like to invest.
Sounds like I shouldn't have a problem , but I live in Vancouver, so I will most likely have to look out of the lower mainland.

Realistically I'm looking for a property for $560000 because what I've been told by my mortgage broker is in my case the banks will prefer 35% LTV.

But that's not my problem, my problem is finding a realtor to work with. Most I email don't even respond, if I call they stop responding when they find out I'm not from their area, and the Vancouver realtors don't want to work out of town.

Do I have to show up at an office with, and hand over a in trust cheque before anyone will work for me?

Chilliwack/Fraser valley would be my first choice.

 

[Owenb]

If you are looking at Kelowna, I would recommend Steve Higgins with Remax. He has been great for us.

 

[SVS]

Here's my problem, hopefully someone can give me some tips.
I have been investing in single family for about 15 years and I want to jump into multi-family.

I took the multifamily investing secrets course it was great, I learned lots.
But I only have about $200000 cash I would like to invest.
Sounds like I shouldn't have a problem , but I live in Vancouver, so I will most likely have to look out of the lower mainland.

Realistically I'm looking for a property for $560000 because what I've been told by my mortgage broker is in my case the banks will prefer 35% LTV.

But that's not my problem, my problem is finding a realtor to work with. Most I email don't even respond, if I call they stop responding when they find out I'm not from their area, and the Vancouver realtors don't want to work out of town.

Do I have to show up at an office with, and hand over a in trust cheque before anyone will work for me?

Chilliwack/Fraser valley would be my first choice.

I could track someone down through my brokerage out that way and have them contact you.

 

[Thomas Beyer]

Try Randy Dyck in Abbotsford: http://www.homes.com/real-estate-agents/randy-dyck/id-10586305/

 

[Cory Sperle]

This is normal as most commercial realtors have their "A" list of clients which you are not yet on plus 200K would not get you very far in multi family, as to find a worthwhile project you are looking at 500K+ to more like 700-800K. Ultimatly you can count on only yourself to locate quality properties, as the first three buildings I purchased I found myself. I would get another mortgage broker too since 75% LTV in commercial is still very doable. Another good option is to co-invest with another operator with those funds on a larger project to get your feet wet, double your equity and then move onto your own project.

 

[Thomas Beyer]

This is normal as most commercial realtors have their "A" list of clients which you are not yet on plus 200K would not get you very far in multi family, as to find a worthwhile project you are looking at 500K+ to more like 700-800K. Ultimatly you can count on only yourself to locate quality properties, as the first three buildings I purchased I found myself. I would get another mortgage broker too since 75% LTV in commercial is still very doable. Another good option is to co-invest with another operator with those funds on a larger project to get your feet wet, double your equity and then move onto your own project.

Good insight here.

In BC's Lower Mainland it is impossible to get 75% LTV these days, due to very high land prices and extremely low CAP rates, frequently 4% or less. 60-65% LTV is more common, if that. Many assets are bought in cash, based on land speculation and anticipated higher density in the future. The buildings income of 2-4% is used to offset 1-3% LOC borrowing costs.

Other markets in Canada or many US cities or metroplexes, like Seattle, Portland, Dallas/DFW, Austin, Phoenix, Atlanta, Denver, ... are better with multi-family assets in the 5.5 to 6% CAP rate where one can get 75% LTV and a better cash-on-cash ROI in 5 years.

 

[TrevorW]

Wise words above.

I have been hunting long and hard for the last year for a multifamily property in the Lower Mainland that would produce the returns desired by myself and my joint venture partners. Really not much out there above a 5% cap. This had me running to secondary markets and even then, still finding vendors wanting less than 6% cap.

In my mind, I need greater than a 7% cap to make it worth my time and my investors $$. Anything less is essentially break even in terms of cash flow. With limited cash flow you run the risk of needing deep pockets to ensure the proper repairs and maintenance are addressed. I prefer to sleep at night.

Just looked at an older multifamily building in Nanaimo (2X) suiter. Needed a bunch of work. Vendor wanted a 5.3% cap. I nearly drove off the road... Same story in Kelowna, Vernon, Kamloops etc. Prince George had lower cap rates but you are buying in a flood plain in many areas...

I would be really curious to speak with anyone getting >65% LTV in the LM. I don't think the banks agree with the cap rates being as low as they are.

 

[Cory Sperle]

Don't waste your time in BC for all of those reasons plus add rent controls into the equation. 75% LTV is found in Saskatchewan and Alberta with better upside potential hence higher ROI.

 

[Thomas Beyer]

In BC's major centers we see lots of parked Asian money as land supply is limited and $s plentiful. A land play really with an optional building on it.

 

[TrevorW]

Really disappointing. I was quite enjoying the idea of buying more multifamily properties in BC, where I spend my time. Speaking of time, I'm not sure I have enough to learn another province and town(s) from an investment perspective. It's a lot of work!

 

[Thomas Beyer]

We're buying a MHP in Cranbrook at a 6% cap in the next few weeks. Even those are now 5% cap in other areas like V Island or Okanagon.

In BC you have to develop i.e. build for serious ROIs !

As Cory said solid 6% caps still available in AB and SK, and ON outside of GTA. Or in the US but with 40-50% higher interest rates and exchange rate risk.

 

[Cory Sperle]

Really disappointing. I was quite enjoying the idea of buying more multifamily properties in BC, where I spend my time. Speaking of time, I'm not sure I have enough to learn another province and town(s) from an investment perspective. It's a lot of work!

I would comment that the amount of additional work required to operate in province/town with the strongest fundamentals is really inconsequential to your goal of delivering maximum ROI to your investors. Thomas has been doing it now for well over a decade. Investigage where you want to invest, and build a local team there and take action.

 

[Micro]

Thomas, Trevor and/ or other Real estate Investor Opportunists;
Are you interested in either purchasing or JVing on Devp land parcels with projects on Van Island (ranging from 50 to 600 units - with existing zoning) where attractive Cap rates can be achieved with high demand products. Options to build and sell for a lift with an affordable product which has a large end-use audience, or keep for in house Holdings with great cash flow where there are Rental demands . Some subdivisions parcels have existing improvements (i.e. ; older rental houses providing for interim cash-flow or offsetting debt servicing etc) during municipal development & construction processes. Thx

 

[Micro]

I could track someone down through my brokerage out that way and have them contact you.

If you are interested in investing on Vancouver Island I may have some opportunities that might work well for M/F with your current limited liquidity avail.

 

[Micro]

Here's my problem, hopefully someone can give me some tips.
I have been investing in single family for about 15 years and I want to jump into multi-family.

I took the multifamily investing secrets course it was great, I learned lots.
But I only have about $200000 cash I would like to invest.
Sounds like I shouldn't have a problem , but I live in Vancouver, so I will most likely have to look out of the lower mainland.

Realistically I'm looking for a property for $560000 because what I've been told by my mortgage broker is in my case the banks will prefer 35% LTV.

But that's not my problem, my problem is finding a realtor to work with. Most I email don't even respond, if I call they stop responding when they find out I'm not from their area, and the Vancouver realtors don't want to work out of town.

Do I have to show up at an office with, and hand over a in trust cheque before anyone will work for me?

Chilliwack/Fraser valley would be my first choice.

If you are interested in investing on Vancouver Island I may have some opportunities that might work well for M/F with your current limited liquidity avail.

 

[Jbaroni]

If you are interested in investing on Vancouver Island I may have some opportunities that might work well for M/F with your current limited liquidity avail.

I could do Vancouver island. What area, can you pm me?

 

[Micro]

I could do Vancouver island. What area, can you pm me?

ok sounds good
what is your email address & Ph # to discuss
thx
Mark

 

[Jbaroni]

Jason
[email protected] 6045374021

 

[Thomas Beyer]

Here's my problem, ...

Realistically I'm looking for a property for $560000 ...

Chilliwack/Fraser valley would be my first choice.

Isn't that price point a single family house in the Fraser Valley these days ?

 

[Jbaroni]

Yes, I already own single family.