It seems that there are no listings for hard money lenders or foreclosures in Canada as there are in the US. Can anyone fill me in? I’m new to this game and the courseI’m taking is from the US so we’re having a bit of a barrier
Im with Pat on this one, if anyone can help us out, please do. I have looked in the papers, searched the web, and the investors that I have found are ridiculous. They are looking for properties like the same rules apply as the U.S.
First off, we cannot target [i]pre-foreclosures[/i] as easy, since there is a privacy act, we have no way of [i]obtaining[/i] this information like in the States, we can advertise ourselves, but come on, someone in this situation would much rather hear from a professional, and have someone contact them to show them their options, than pick up the phone and call an ad they saw in the penny saver that says Stop Foreclosure! We Buy Homes! (sure it might work, but not with great success).
Secondly we have Power of Sale, not foreclosure, and the biggest problem with this is, the bank will take the home, and try to resell it back at full market value, regardless of what amount of equity was dumped into the house, where is the justice in that? :anger:
Thirdly, abondoned properties are taken over by the government within 1-2 years I believe since the taxes are not being paid, and advertised through their rea agents, and the chances of finding abondoned properties that we can pick up at a discount is slim to none.
Every target market has a flaw due to rules and regulations.
This brings me back to the first point of hard money lenders, I have a lender, that is asking 18% plus 3 points at the end…my question is are you nuts? In Canada? Toronto Ontario especially? But lets say that I agree to this, since it is my first deal, okay, Ill do this deal with you taking most of the profits that it took me to work for, four months, and yet they said that a home with $100,000-110,000 margin to work with is not enough!!! :ibs:
I currentley have a 5 bedroom 3 washroom house, that is 3000 square feet, it has beautiful curb appeal. It needs a rehab, cosmetic mostley. Second floor needs carpet ripped out and new floors put in, there is a large wasted “sitting area” upstairs which I plan to turn into
a fourth washroom, to give it 2 master ensuites, and convert it into a 5, 4. The basement is almost finished, studs are up and needs drywalling to complete, bathroom pipes are all in place. Sep entrance is in place. Purchase price is 330k, selling price based on fair market comp reports is 440k, rehab is 20k max to be safe. The selling price minus the aquisition expenses, rehab expenses, holding expenses, hedge expenses etc. + purchase price+realtor fees, allows the investor to walk away with 50-60k in 4 months maximum, lets say 6 months for some unknown reason it took waaaay longer to sell than expected.
Why is it that 2 people cannot split $50,000-60,000 amongst the two of them and be happy???
From what I have read this deal would work smoothley in the states, I would probably own the home right now and be doing my own demo, instead of typing, but I’m not. I am banging my head against the wall trying to figure out how to fund this deal, because lenders are not happy with 30k in 4-6 months…go figure. Now if you will all excuse me, … :banghead:
Hi guys,
Here in New Brunswick the banks have to publicly notify the owners of houses that they intend to foreclose, it’s all in the paper. You can go knock on the door or look up the owner in the phone book.
Land titles are not subject to privacy legistlation, you can look up any address to get a PID number… with that, you can find the owner.
Here in NB, I can get any owner info I want with a map printed out with the property dimensions at the gov’t office for $15.
There are hard money lenders based in Toronto that do business here in the Maritimes for 12% plus 4-5 points. Go to your REIO clubs and meet them.
Local lenders here will do these deals for 1.25 to 1.5% per month for short term deals.
Most of what you see being done on US boards can be done in Canada, you just have to learn the little differences in legal terminology.
Some things are different, such as no banks will do short sales when the loan has CMHC insurance. They’re better off foreclosing and getting reimbursed by the Federal Gov’t.
Cheers.
Dave
In any province in Canada, you may go to a court house and search pre & foreclosure filings, the information is fully accessable by the public. As for finding the investors or hard lenders, it is very tough, almost impossible. The best way to get funds is advertise for a private inestor. Offer them say 12% to 15% per annum on a 1 year term with a balloon payment at the end and a potion to re-invest. Secure the investment 100% with property. An agreement like this let you flip numerous homes rather then having to pay out as soon as the first home is sold. As long as you always have a property on the go, the investment is always secure. This gives you the opportunity to make the profit on a number of houses with one interest fee. You’ll pay the anual interest on the first house, the rest id all profit. To attract the investor to re-invest at the end of the year, pay him additional interest over and above what you contracted, as a profit bonus.
In a power of sale situation, the bank is bound by law to try and get market value, over a specified time period, with the profit being turned over to the owner. If the property remains unsold after this time period, then the property is signed completely over to the bank and this is when you can ge a great deal. Power of sale is an eastern canada, mainly Ontario thing, most other provinces have foreclosure.
You can also subrcibe to a weekly listing of government siezed property, they are also listed on the government web sites.