Why NOT to buy in the USA?

[Perp]

Are you able to update us with the latest news on your current MFR offer?[end/quote]
Thanks for your kind words, Trace. The deadline for offers was extended two weeks, so I'm guessing there are no cash buyers around, which is good news.

Also, have you bought any property in the USA to date, or are you concentrating all your efforts on sourcing one of these large MFR deals?

The latter. It's a strategic decision.

 

[sutnorinvest]

Any updates to report Perp?

 

[Perp]

Any updates to report Perp?

The property's still on the market. The lender's not willing (or not able, under the receivership agreement) to finance me into it.

The two remaining options that I'm aware of are:

1) See if I can "sell the deal" (including my appraisal and due diligence) to another investor, and

2) See whether the lender is willing and able to give me a lease with option to buy. That would enable me to spend, say, 6 months improving occupancy rates, and I may then be able to get conventional finance. I'm considering whether I'm committed enough to this project, after some recent time out for reflection, to go for this option.

So if a lease option (2) is aligned with my new goals, I'll do that, otherwise I'll see whether option 1 is viable.

My new goals relate to me reconsidering which investments best fit with my lifestyle goals, nothing to do with any change in my view of the viability of the market.

 

[kathryn d]

Perp,
Financing is extremely tight, as you are now experiencing. We personally have a mortgage come up for renewal last week.The lender no longer offers mortgages in Canada, so we are forced to use another lender. NO ONE will refinance our property (atm) even though it is 50% LVR. However the mortgage brokers are very quickly to offer their "private mortgages" of 14% of the mortgage up front + 12% interest. The idea is to be able to secure financing the conventional way in 12 months...or refinace again with the 14% +12%. Very soon they own your property..... Still searching for a lender.

My son applied for his first mortgage. I was going to finance it thru my Registered Retirement Saving Plan (equivalent to your Super Annuation) He was only required to qualify for mortgage insurance. He was refused, not because of bad credit, but because of no credit. He doesn't have any debt or credit cards. When he was denied, our bank appealed, and said he should be approved..but he was denied again. We are trying another lender, who doesn't require the use of this particular mortgage insurer, to see if that will help. My son can prove he has genuine 10% downpayment, and a power bill he has never been late paying for 3 years. Not acceptable, unless he is a new immigrant. Citizens aren't awarded this consideration.

Other son wanted to borrow $15K for a mobile home, and use this property as a collateral. No longer permitted.
Today we put in an offer for this property using installment payments. We will find out tomorrow the result.

We, as Canadians, are being penalized for what is happening in the USA market, even though we had nothing to do with it. Their mortgage rules are nothing like ours.They can simply hand back the keys and walk away, while with us, they can continue to chase you for any shortfall owing.

Perp, I would suggest you not put any money into a lease option.It is stacked in their favor, unless you think you can buy with other funds at a later date.
We offer Lease Options on properties, but I would never go that route.

 

[locko24]

Hi Perp

How much cash do you actually need? Have you thought about looking for interest on SS? If you 'only' need another 100k, surely you could find 10 people on here willing to invest 10k each?

Just a thought...

 

[Perp]

Financing is extremely tight, as you are now experiencing.

It's a bit ridiculous when you can't finance <50% LVR, CF++ properties, hey?

Perp, I would suggest you not put any money into a lease option.It is stacked in their favor, unless you think you can buy with other funds at a later date.
We offer Lease Options on properties, but I would never go that route.

Thanks for your insight. I share your concern about financing at the end of 6 months.

How much cash do you actually need? Have you thought about looking for interest on SS? If you 'only' need another 100k, surely you could find 10 people on here willing to invest 10k each?

1) Strictly prohibited to solicit funds on Somersoft.

2) In any case, if you split up the deal more than, say, 2 ways, it's difficult for every party to get sufficient ROI - in absolute $ - to justify doing the deal.

 

[Heatseekers]

Hi Perp

I came across this thread as Im interested in purchasing some family homes as an investment. I have spent the last few days reading through it.
It seems like you have put a lot of time and effort into searching. How much time and money have you spent just looking for the past couple of years? You must be very well educated now.
How did the deal go? Any new ones on the horizon?

I'm going to start a new thread with what im looking for and my questions as I just typed it here and it was way too long!

 

[DEC]

It's a bit ridiculous when you can't finance <50% LVR, CF++ properties, hey?

Thanks for your insight. I share your concern about financing at the end of 6 months.

1) Strictly prohibited to solicit funds on Somersoft.

2) In any case, if you split up the deal more than, say, 2 ways, it's difficult for every party to get sufficient ROI - in absolute $ - to justify doing the deal.

Kiva loans?