Hi there,I just joined the msg board...I`ve ben investing for about 7 years buying a 1or 2 rentals fixing and flipping...now I have 2 rentals and my primary residence.. all in calgary I feel stuck as to my debt ratio being to high for banks to approve me for further loans...I wanting to sell 1 property to free up some cash ..would you recommend holding on to all 3 and getting a home equity loan?I`m also looking in Toronto as there are much more homes that have suites and are easier to fix n flip...Calgary has gotten way to expensive to buy and make money...any ideas ??
stuck at 3 properties
- Thread starter mozsmen
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- Sep 11, 2007
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- 462
QUOTE (mozsmen @ Mar 27 2008, 07:38 PM) Hi there,I just joined the msg board...I`ve ben investing for about 7 years buying a 1or 2 rentals fixing and flipping...now I have 2 rentals and my primary residence.. all in calgary I feel stuck as to my debt ratio being to high for banks to approve me for further loans...I wanting to sell 1 property to free up some cash ..would you recommend holding on to all 3 and getting a home equity loan?I`m also looking in Toronto as there are much more homes that have suites and are easier to fix n flip...Calgary has gotten way to expensive to buy and make money...any ideas ??
Have you tried different banks? Using a mortgage broker who specializes in revenue property financing?
Your TDS may be high at one or two banks - but right in line at another that uses a different way of qualifying. There are lots of lenders out there and lots of products. A good broker or banker, that works with portfolio clients knows how to properly package the application to get the mortgage approved!
If that fails, there are plenty of ways to reduce your ratios and many ways to continue investing. Get a co signer or a JV partner, refinance to pay down some debt etc.....
Have you tried different banks? Using a mortgage broker who specializes in revenue property financing?
Your TDS may be high at one or two banks - but right in line at another that uses a different way of qualifying. There are lots of lenders out there and lots of products. A good broker or banker, that works with portfolio clients knows how to properly package the application to get the mortgage approved!
If that fails, there are plenty of ways to reduce your ratios and many ways to continue investing. Get a co signer or a JV partner, refinance to pay down some debt etc.....
- Joined
- Aug 31, 2007
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- 323
QUOTE (mozsmen @ Mar 27 2008, 09:38 PM) ..would you recommend holding on to all 3 and getting a home equity loan?
You mentioned that you are considering a home equity loan. If you do have this much equity, a secured LOC me be an option which frees up cash at prime. If not, it is time to find a partner and help them make money with their cash.
You mentioned that you are considering a home equity loan. If you do have this much equity, a secured LOC me be an option which frees up cash at prime. If not, it is time to find a partner and help them make money with their cash.
- Joined
- Aug 30, 2007
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- 13,879
QUOTE (mozsmen @ Mar 27 2008, 07:38 PM)
Hi there,I just joined the msg board...I've ben investing for about 7 years buying a 1or 2 rentals fixing and flipping...now I have 2 rentals and my primary residence.. all in calgary I feel stuck as to my debt ratio being to high for banks to approve me for further loans...I wanting to sell 1 property to free up some cash ..would you recommend holding on to all 3 and getting a home equity loan?I'm also looking in Toronto as there are much more homes that have suites and are easier to fix n flip...Calgary has gotten way to expensive to buy and make money...any ideas ??
consider these 4 options:
a ) get a HELOC that may lower your overall debt and monthly payment and may free up some cash .. also read this: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-2302-What_is_better_a_mortgage_or_a_line-of-credit_.html
b ) sell ONE property .. the one with the most headaches or the least cash-flow .. and consider re-investing in SMALL AB towns or N-Alberta (where is is cheaper) or in the US or SK or ON .. although there is cost and in-efficiencies involved going far away .. so this may not make sense for a single family home or small $ amounts ..
c ) IMPROVE the existing assets as this may increase cash-flow and in time, the ability to sell or re-fi and pull cash-out
d ) consider doing nothing .. ride it out for a while .. rest, relax, plan, think, talk to potential JV partners, talk to banks, check the market elsewhere .. THEN act when the time is right !
Besides the noble art of getting things done, there is the more noble art of leaving things undone !
Hi there,I just joined the msg board...I've ben investing for about 7 years buying a 1or 2 rentals fixing and flipping...now I have 2 rentals and my primary residence.. all in calgary I feel stuck as to my debt ratio being to high for banks to approve me for further loans...I wanting to sell 1 property to free up some cash ..would you recommend holding on to all 3 and getting a home equity loan?I'm also looking in Toronto as there are much more homes that have suites and are easier to fix n flip...Calgary has gotten way to expensive to buy and make money...any ideas ??
consider these 4 options:
a ) get a HELOC that may lower your overall debt and monthly payment and may free up some cash .. also read this: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-2302-What_is_better_a_mortgage_or_a_line-of-credit_.html
b ) sell ONE property .. the one with the most headaches or the least cash-flow .. and consider re-investing in SMALL AB towns or N-Alberta (where is is cheaper) or in the US or SK or ON .. although there is cost and in-efficiencies involved going far away .. so this may not make sense for a single family home or small $ amounts ..
c ) IMPROVE the existing assets as this may increase cash-flow and in time, the ability to sell or re-fi and pull cash-out
d ) consider doing nothing .. ride it out for a while .. rest, relax, plan, think, talk to potential JV partners, talk to banks, check the market elsewhere .. THEN act when the time is right !
Besides the noble art of getting things done, there is the more noble art of leaving things undone !