Sell or refi - the agony and the ecstasy https://blog.reincanada.com/sell-or-refinance-the-agony-and-the-ecstasy/ Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com

Small towns can work well. Liquidity can be an issue though ie exit as can management. Who will manage this property impeccably? You yourself? You live close by?

Don’t be too levered. Debt has downside too. Usually maximizing each property one by one with cheap 75-80% res mortgages sub 2.5% the cheapest way. Commercial has four drawback A) 2-4% upfront fees, B) lower LTVs, C) higher upfront costs for legal, appraisers, property condition reports and...

Blanket mortgages work as an alternative ie one large mortgage across multiple properties. Drawback: higher rates and lower loan to value. Holding residential assets in a corporation works as you state but also higher rates and lower loan to values. Commercial mortgages are usually 1.25 DCR...

Ain’t gonna happen .. Sent from my iPhone using myREINspace

Are you referring to an “agreement for sale” ie a “wrap mortgage” ie a contract where seller stays on title for a while while purchaser’s interest is wrapped around it? Or a normal purchase agreement ? For residential or commercial? What specifically do you want to know ? Sent from my...

Correct. Lending ie interest is usually considered passive income. Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com

Most trustees allow a balloon payment structure but insist on an annual payment say 2% or prime. OlympiaTrust rules here https://rsp.olympiatrust.com/assets/forms/arms-length-mortgages/GeneralInformation.pdf To get ROI outside the RRSP you need shares in a company or another JV arrangement...

Yes it can be done (and I have done it) as your RRSP becomes the lender and you swap cash out and a mortgage in. Only a few RRSP trustees like OlympiaTrust do it, for an upfront and annual fee plus legal fees. What specifically do you want to know? Thomas Beyer, Asset Manager, Investor...

Well said. Buy it (with your own money or borrowed money or a JV partner). Or move on. Decide how important your relationships are to your three siblings, their spouses and kids. Very important? Don’t care? No need to spend money on lawyers as situation is pretty clear to a neutral third...

Find a MIC (mortgage investment corporation) that will lend you (or your son) the required money. You need to buy one asset from the trust to be fair to all parties .. maybe 2. Why do you need to buy all three? MICs lend money at 6-16% depending on asset value, loan to value, risk of...

Go with a variable rate if you may wish to sell prior to 5 year anniversary as max 3 month penalty unlike fixed rates. Line up mortgage with your property goals. If long term then 5 year ok unless it’s well over 2%. So in your case 2.04% is fine if you envision owning 5+ years although of...

Too much negative Covid fear mongering? Delayed tenant payments ? Tight cash flow? Fear not: Why housing is still a great investment. According to the CMHC, average Canadian house values have increased by over five per cent annually over 25-year periods going back to the Second World War. That...

Yes SFH with suite potential ALWAYS preferred over a condo. Land goes up in value not the deteriorating structure on it. That’s why I like multi-family buildings and mobile home parks and have done well there, but of course you need 20-35% cash down so more cash than an old TH or SF home. Look...

Yes it’s a good place but you need to dig deeper into specifics, ie asset type, micro location, asset condition AND price. $500,000 might be a good price for a certain condo or TH or it might be 50-85,000 too much. More here in the first post of “How to get started”...

Further thoughts on cash flow vs total return in real estate: what is better ? Real estate is like a three course meal (TM). It has three profit centers: cash-flow (or the appetizer), mortgage paydown (the main course) and equity appreciation through asset improvements and inflationary rental...

Nice vision. Where will you work in 5 years? Focus on that, too. 20,000 monthly cash flow is NOT (!!) achievable with only $1M networth. Maybe $2500 (or 30k/yr) assuming a 6% cash on cash return on 500k inverses and a mortgage free 500k house. More is ONLY achievable if you and your wife work...

Upgrade only sensibly and rent it out managed impeccably. Don’t over-upgrade. A 4-plex construction is a far riskier and costly undertaking. Can you add a legal suite in basement for a second income? Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor...

Assuming 1000 sq ft per unit, budget $200/sq ft hard cost or $200,000 PLUS soft cost ie architect, permit, off site levies like DCCs, insurance, utilities, demolition, interest on loans, legal fees for strata, surveying, taxes, engineering .. so maybe $1M for 4 units. Likely NOT (!!) worth it...

CMHC has been wrong before. Sent from my iPhone using myREINspace