Day: February 6, 2014

Uncategorized

A Good Plan Today is Better Than a Perfect Plan Tomorrow

Interest rates are more than likely to start going up in then next 6 months….very slowly I’m sure.

Are you fully taking advantage of the historic low rates?

Have you thought about refinancing your home?

Maybe pulling out some equity to invest in something?

Straight out buying an investment?

It’s the time to start thinking about it and even to explore opportunities. A lot of times people don’t think they could ever get involved for one reason or another. Some believe they don’t have enough money, some think it’s too risky. Well…There are ways to get in for relatively cheap and even FREE, and when it comes to risk, well…driving can be risky too…but that doesn’t mean you have to be a risky driver.

Remember that Ottawa is a slow and steady market, so the bread and butter to long term wealth here is buying and holding. There are plenty of opportunities out there right now.

I myself am looking to upgrade my personal residence this year and have a secondary dwelling in the walk out lower level to subsidize my mortgage. If rates weren’t where they are I would be staying put for another few years until I completely outgrew my home and had more equity – but instead I’m taking advantage of a good buying environment and upping the ante.

Are you making any moves?

Uncategorized

Investing in Real Estate with Little to No Money Down

2 ways to do this:

First one: “100% Financing” from lending institutions.  Now I have this in quotations because TECHNICALLY it’s not 100% financing, but PRACTICALLY it is. Many banks are offering a loan at 95% value, and if you qualify for the program they will CASH BACK 5% on closing. There are a couple hoops to jump through with this program but it IS available for those who qualify. This would only apply to a principle residence (strategy to get into other projects is below) but there are strategies to make the best investment use of your home as well (see a few blogs ago).  If you want a contact name for a lender that I trust that offers this program email me at mevans@evanselattar.com.

Second way to get involved is called a Joint Venture. Essentially what this strategy entails is you getting someone else to pay for an investment with you as their equal partner. Now why on earth would someone do that? Well if you had a solid team with a Realtor, Lawyer, Developer,  Lender, Appraiser and Property Management company AND you had the ability to find great deals before anyone else did and acquire them for a stellar price, offering them an opportunity and return they can’t match anywhere else – why WOULDN’T they be a silent partner?  You disclose that you are expecting X amount of money from this project, and their return is Y. The difference is yours to keep.  Again- if they get to be a silent partner and get the money they want, AND are satisfied with the risk involved – then giddy up.

Don Campbell wrote a fantastic book on this subject. I believe it’s simply called Joint Ventures in Canada. You should get it.

My team offers projects like these, and we have partners that are always interested in expanding their investor/partner base.

There you have it – 2 ways to get in the game.

Be safe and consult your professional Salesperson before jumping in.

Cheers

Renters, Uncategorized

Making Money with a Townhouse

Here’s another one for you.

Buy a townhouse within walking distance to a major public transportation route. 97, 95, 96, O-train, and if you’re feeling confident in the Lightrail project – along it’s proposed path. Walking distance means a distance that you wouldn’t mind walking in bad weather.

Ideally the property is no more than a few years old so you can hold it for a solid 10 years without having to replace or repair anything.

Advertise the property for rent as a 4 bed townhouse perfect for mature students (3 beds upstairs and a lower level as a bedroom). The going rate of a student bedroom for something like this is about $550 a room, so you can try to push for 600 for the basement and master, and 500 for the other smaller rooms – $2200/month and advertised as such (no room by room leases – just one big lease). You should be able to make some great cash month over month. Now more money also means more risk – as I’m assuming you first thought when you read the word “student” – so do a thorough check on them and use your gut instincts. Get their parents all to co-sign as well. I also tell my student tenants that I’ll gladly give them references once they leave and do my best to help them get great rents on their next place. That usually keeps them wanting to be in my good graces. Finding and keeping good tenants is a topic for another blog.

Now what’s great about this strategy is that if you do this right, not only will you be able to make some fantastic cash month over month, but in the event you need to sell this asset at the 10 year mark or sooner – according to a recent CMHC study, townhouses are set to appreciate a little more than all other property types due to the amount of further aging baby boomers and influx of immigrants that want a home but not too much to maintain for their own reasons.

A nice cash flowing asset and a good looking exit strategy with a serious chunk of equity at the end.

Now don’t get ahead of yourself and go running out there thinking this will all work out without some serious diligence and a little risk taking. Consult your trusted professional salesperson.

If you would like some of the finer details of how this could work and a personal step by step walk through, complete with examples of what could work – send me an email at mevans@evanselattar.com