Best multi-family mortgage rates right now?
- Thread starter Jeremy Barham
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V as of purchase price + reno. We paid 4.5% to CMHC. Thanks
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We use a guy out of Vancouver.... Derek Townsend of Citifund. He's been great and I would recommend him. Hope he can get us a deal like WSJ got! I'll post what we get when we decide to fund
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It was TD.
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That is how I bought my first few buildings in the early 2000's .. 15% down. Hard today.
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I have tried to get some CMHC refinance opinions but their valuations are a complete joke. This seems like an extremely rare case, congrats!
Hi,
Nice. Do you still own apartment buildings purchased in the early 2000's?
Or you rarely hold for more than 10 years?
Thanks
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Yes I still own assets bought as far away as 2004 .. 12 years ago .. still have CMHC mortgages on those assets from the last re-fi.
As Cory said, CMHC valuations are very low these days and unless you are happy with 60 or 65% LT"true-V"s non-CMHC is the way to go to get 70-75% mortgages. Our last refi of a large Calgary based asset was at 2.36% for around 70% LTV. CMHC would have been 1.8% or so but we would have had to pay a 4.5% fee on their 85% LT"CMHC-V" so over 5 years it would have been more expensive, actually.
As Cory said, CMHC valuations are very low these days and unless you are happy with 60 or 65% LT"true-V"s non-CMHC is the way to go to get 70-75% mortgages. Our last refi of a large Calgary based asset was at 2.36% for around 70% LTV. CMHC would have been 1.8% or so but we would have had to pay a 4.5% fee on their 85% LT"CMHC-V" so over 5 years it would have been more expensive, actually.
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Hi,
Nice. What percent of the buildings you purchases more than six (6) years ago, do you still own? Like 25% or 75%?
In other words, do you still own most of them or sold most of them?
Thanks
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We transacted about 40 buildings worth over $200M since 2000 and own about ten today .. See my upcoming article in the May REIN magazine about
Sell or refi
The Agony and the Ecstasy
( I'll post here once article is out)
Hi,
Did you change your mind since or was it your JV partners who wanted to sell where otherwise you would not?
Thanks
Guess what you meant is that your average building was sold for about $5M(?) {and purchased for significantly less}
Interesting. If I understand correctly, you sold about 75% of your buildings. If I recall correctly, in another thread of yours, you recommended the opposite - as a rule of thumb not to sell - only refinance.
Did you change your mind since or was it your JV partners who wanted to sell where otherwise you would not?
Will read your article when posted.
Thanks
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Yes, partners wanted out. Or to build track record. Or to fund kids university education and trips to Europe. OSld many buildings in questionable cities far away. Should have sold more in Edmonton in 2014 when market was hot hot hot. But, life goes on. Yes, on average, refi not sell.
Hi,
Thanks
But you sold Most. so you still don't believe in selling but had to sell for different reasons.
This too I do not understand. With a good appraiser who understands our business you are often able through tax free re-fi to take out at least the same $ amount as selling.
Thanks