Hello REIN Members,I`ve successfully tied up 2 condos in Slave Lake, Alberta, home to some of the highest rents and lowest vacancies in the province, both at well under list price and other recent sales in the same complex.
Deal 1: Already spoken for, sorry, but for the record I picked up a 1-bedroom condo for just $81,000!
Deal 2: 3 bedroom townhouse, fully rented, fully managed, purchase price: $137,000!
Where else in Alberta are we getting purchase prices like that right now?
Option 1: 0% Down with a $10,000 Line of Credit buffer
I`m looking for an investor with strong income to qualify using CMHC`s new 100% on investment property product.
Since this product requires no money down, the property will have a larger mortgage and hence, some negative cash flow, albeit small compared to other properties these days. Therefore, all I ask for is a nominal $10,000 Line of Credit to be made available for this purpose. This will provide us with at least a 2.5 year negative cash flow buffer. I`ll even pay your LOC interest charges for the first two years, and then 50% of them every month thereafter! Over time, the rents will continue to increase as well so this buffer will most likely last even longer than 2.5 years.
In summary, All you need to get a 50% stake in this deal is good qualifying power and $10,000 Line of Credit access. Any monies spent using the LOC for the first two years will be paid by yours truly! This is about as low risk a deal as you`ll find anywhere!
Option 2: 20% Down with a $2,000 buffer
If you`d prefer to use a more conventional lending product, I`m offering for you to invest 20% down with a $2,000 Line of credit buffer to the investor and a `no cash call for 2 years` guarantee.
If there is negative cash flow, your $2000 will be used to offset this for as many months as possible, and then anything after that I will take care of up to two years from the purchase date. After that, if there is still any negative cash flow, we will split the payments 50/50.
In both option 1 and option 2, I`m offering 50% of the equity to the investor. The investor can go on title, and we will register a JV agreement on title to signify my interest in the property.
Possession for this property is Jan.1, 2008 so I`d like to have the property spoken for by Nov. 5, 2007 at the latest.
Thank you for your interest in this property,
Kevin Ablett
403-880-0138
Deal 1: Already spoken for, sorry, but for the record I picked up a 1-bedroom condo for just $81,000!
Deal 2: 3 bedroom townhouse, fully rented, fully managed, purchase price: $137,000!
Where else in Alberta are we getting purchase prices like that right now?
Option 1: 0% Down with a $10,000 Line of Credit buffer
I`m looking for an investor with strong income to qualify using CMHC`s new 100% on investment property product.
Since this product requires no money down, the property will have a larger mortgage and hence, some negative cash flow, albeit small compared to other properties these days. Therefore, all I ask for is a nominal $10,000 Line of Credit to be made available for this purpose. This will provide us with at least a 2.5 year negative cash flow buffer. I`ll even pay your LOC interest charges for the first two years, and then 50% of them every month thereafter! Over time, the rents will continue to increase as well so this buffer will most likely last even longer than 2.5 years.
In summary, All you need to get a 50% stake in this deal is good qualifying power and $10,000 Line of Credit access. Any monies spent using the LOC for the first two years will be paid by yours truly! This is about as low risk a deal as you`ll find anywhere!
Option 2: 20% Down with a $2,000 buffer
If you`d prefer to use a more conventional lending product, I`m offering for you to invest 20% down with a $2,000 Line of credit buffer to the investor and a `no cash call for 2 years` guarantee.
If there is negative cash flow, your $2000 will be used to offset this for as many months as possible, and then anything after that I will take care of up to two years from the purchase date. After that, if there is still any negative cash flow, we will split the payments 50/50.
In both option 1 and option 2, I`m offering 50% of the equity to the investor. The investor can go on title, and we will register a JV agreement on title to signify my interest in the property.
Possession for this property is Jan.1, 2008 so I`d like to have the property spoken for by Nov. 5, 2007 at the latest.
Thank you for your interest in this property,
Kevin Ablett
403-880-0138