So what now?

[mrembecki]

Hello Property Investments Enthusiasts,

I was wondering what you would recommend for a father/son property investment project. We did one in last year which was a fix and lease strategy and had fun doing it. How would you recommend securing financing deal #2, assuming that it takes 20% in home equity to get a HELOC??

Sidequestion: If we fixed the property and increased its` value, does this mean that we can somehow pullout the new created equity from the home?

Where can I find material (books,etc.) to deepen my understanding of such issues?

Thanks,

Marty.

 

[RobMacdonald]

Hi Marty,

I would recommend reading Real Estate Investing in Canada. It talks about a more systematic approach to investing and buying with a long term perspective.

You are correct that you need a minimum of 20% equity for a HELOC, but there are some other options depending on what your long term strategy is.

In regards to pulling equity out of a repaired property, it is absolutely possible to do. There are several products available that can reduce your financing costs in the long run. The property can be purchased, renovated and in many cases re-appraised and re-mortgaged within the first few months. Working with a mortgage professional that understands your strategy will be the key.

 

[mrembecki]

QUOTE (RobMacdonaldCMT @ Mar 25 2009, 03:40 AM) Hi Marty,

I would recommend reading Real Estate Investing in Canada. It talks about a more systematic approach to investing and buying with a long term perspective.

You are correct that you need a minimum of 20% equity for a HELOC, but there are some other options depending on what your long term strategy is.

In regards to pulling equity out of a repaired property, it is absolutely possible to do. There are several products available that can reduce your financing costs in the long run. The property can be purchased, renovated and in many cases re-appraised and re-mortgaged within the first few months. Working with a mortgage professional that understands your strategy will be the key.

Thanks Rob