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
The Evans Real Estate Group Blog 