New Investor

[rascalz]

Hi all,

Ive been a long time reader and have already gained so much through this forum and all of Don`s books. Im 20 years old from London Ontario, and just finished my first year at University of Western Ontario. I have been reading about real estate for the past 2 years, and hoping that it will be either a career for myself - or at least stable stream of income towards my future.

I have been constantly on the lookout for cashflow properties in my area, and have come across quite a few. I am very eager to get started hopefully this year...but have a little fear since im a student and dont have a great amount of assets/cashflow at this time in my life.

I have been investigating using CMHC 100% financing program for duplexes, and have still been finding properties that will generate great numbers including a premium charge. Has anyone applied for this program and been successful with a beginning credit rating?! I am a little reluctant since I dont have much credit history in my past, and feel my beacon score will not meet the standards. I am not sure whether the best route at this point would be to hold out on investing until finishing my education, or if denied for the program possible find a family member to cosign on a mortgage. Any opinions on the best route to take?!


I cant say how valuable all of the information on this forum has been for a beginner. I thank you all for everything in advance. If anyone on this forum is an investor in or near the London Ontario region and wouldnt mind providing some insight to a new investor please let me know, everything is appreciated.

 

[invst4profit]

I would use the next few years to learn as much as possible but hold off investing in real estate until you graduate and have a full time job to support yourself.
Being a landlord, starting a business, can be very time consuming and very distracting from other aspects of your life.
Unless you intend to quit university and do real estate investing full time finish your education first.

 

[kboughen]

QUOTE (rascalz @ May 22 2008, 11:34 PM) Has anyone applied for this program and been successful with a beginning credit rating?!

You mentioned you have "beginning credit"; this is very subjective. For some people it may mean 1 week with 1 credit card, for others it may mean 2 years with 2 credit cards. CMHC 100% financing does require a combination of good beacon score, trading history and employment. If you don`t qualify on your own, a family member with established credit may be able to help.

If the property is strong enough for a 100% CHMC financing (but you don`t qualify) there may be other profitable solutions such as a JV, VTB or second mortgage.

2 years studying real estate is quite extensive, but only you can decide if you are ready to invest. If you are, I suggest you get a Mortgage Broker with real estate investment experience on your team.

 

[CarlaJohnson]

In 2007, I was out in Edmonton for a REIN seminar and had a great talk with a young REIN member out there. He had just graduated from college and owned 3 semis (half-duplexes). He bought the first one with his mom and then found partners for the next two. At that time he was working on another partner for his 4th.

You have to know yourself. Some students can juggle all the responsibilities, but others would struggle with the stress. I think university is a really important time in your life. You are learning wonderful things about life and yourself. You are strengthening the foundation of who you are.

If you had a good money partner, it might be smart to buy a semi for yourself and rent rooms out to other students. London prices are good and you could live for next-to-nothing for the remainder of your years at UWO. You would be learnng and earning.

All the Best.

Carla

 

[IanSzabo]

QUOTE (kboughen @ May 23 2008, 08:22 AM) You mentioned you have "beginning credit"; this is very subjective. For some people it may mean 1 week with 1 credit card, for others it may mean 2 years with 2 credit cards. CMHC 100% financing does require a combination of good beacon score, trading history and employment. If you don`t qualify on your own, a family member with established credit may be able to help.

If the property is strong enough for a 100% CHMC financing (but you don`t qualify) there may be other profitable solutions such as a JV, VTB or second mortgage.

2 years studying real estate is quite extensive, but only you can decide if you are ready to invest. If you are, I suggest you get a Mortgage Broker with real estate investment experience on your team.

Thank You Kevin for the great info

 

[greghough]

Hello there,

I am currently 19 year old entering my third year at UWO. We purchased our first student rental two years ago on Oxford street (I am sure that you are aware of it).
Here at Next-REI we developed the Student Housing Investment Program (SHIP) and are currently expanding in London, Hamilton, Guelph, and obviously KWC.

We have not used the 100% financing for any of our purchases... nor do we plan to. Many people tend to shy away from Student Rentals but i believe there is excellent opportunities after the proper due diligence has been under taken.

My colleague and I will be putting on a number of presentations next year at UWO. These presentations will consist of us getting students into a room and letting them know how we can assist in finding positive cashflowing student rentals. This will allow for their parents to realize an profit instead of a rental expense.

If you are interested in anything i have said above please contact me at [email protected]