JASON KILBORNE
Professional Mortgage Specialist
204-995-5722
(Click To Call on Mobile Device)
(Click To Call on Mobile Device)
JASON KILBORNE
Investment Property Loans
Many people think that investing in Real Estate is the key to wealth and Winnipeg has a great housing market to support real estate investing.
When it comes to arranging mortgage financing to purchase an investment property, there are a few different ways to do it. The right way depends on what type of investment property you're purchasing. Rental Properties Many people like the idea of owning a property and renting it out either short or long term. A short term rental might be a home/cottage or condo in an area that is popular for tourists. The people that rent these types of properties usually only do so for a week or two at a time. Long term rentals are generally homes or condos which are rented by people as a place to call home. When purchasing a rental property, the mortgage is structured a little differently than a mortgage on a residential home that you'd be living in. Your down payment must be at least 20% of the purchase price (under current regulations) and there may be a slight premium added to the interest rate but other than that, they are pretty much the same mortgage products as the one you'd get for your primary residence. |
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Some people have done very well by purchasing either a Duplex, Triplex or Quadroplex and living in one of the units themselves while renting out the other units. This can be a very lucrative strategy because your renters pay the bills for the property so you get to live in the property for free!
Another benefit to this strategy is that, if you're going to live in one of the units, you don't necessarily need a 20% down payment. You may be able to qualify to purchase a multi-unit building for as little as 5% down (under current mortgage regulations)
Flipping Houses (Flips)
Another way to potentially make money in real estate is to flip houses. Flipping houses involves purchasing a home at one price, upgrading the home over a short period of time and then selling the home again at a hopefully healthy profit.
Financing a flip can be tricky mainly because Mortgage Lenders don't want to put in the time, effort and cost, to set up a mortgage that is just going to be paid off within a very short period of time. For this reason, if people want to flip houses and need financing to do so, Private Lenders are usually the sources of funds.
Private Lenders are expensive to work with. When arranging financing with a Privater Lender, there are significant setup fees charged and the interest rates on the mortgages themselves are very high.
Completing a successful flip is hard to do. You really need to crunch the numbers as best as you can in advance to see if the possibility of profit is there.
Some people have done very well by purchasing either a Duplex, Triplex or Quadroplex and living in one of the units themselves while renting out the other units. This can be a very lucrative strategy because your renters pay the bills for the property so you get to live in the property for free!
Another benefit to this strategy is that, if you're going to live in one of the units, you don't necessarily need a 20% down payment. You may be able to qualify to purchase a multi-unit building for as little as 5% down (under current mortgage regulations)
Flipping Houses (Flips)
Another way to potentially make money in real estate is to flip houses. Flipping houses involves purchasing a home at one price, upgrading the home over a short period of time and then selling the home again at a hopefully healthy profit.
Financing a flip can be tricky mainly because Mortgage Lenders don't want to put in the time, effort and cost, to set up a mortgage that is just going to be paid off within a very short period of time. For this reason, if people want to flip houses and need financing to do so, Private Lenders are usually the sources of funds.
Private Lenders are expensive to work with. When arranging financing with a Privater Lender, there are significant setup fees charged and the interest rates on the mortgages themselves are very high.
Completing a successful flip is hard to do. You really need to crunch the numbers as best as you can in advance to see if the possibility of profit is there.
Investment Property loans are a little more complex than just your regular mortgage.
No matter what type of investment property you're interested in, it's still important, possibly even more important, to choose the right mortgage product so that you can make the most of your investment.
I'd be more than happy to sit down with you to discuss the various options with you.
No matter what type of investment property you're interested in, it's still important, possibly even more important, to choose the right mortgage product so that you can make the most of your investment.
I'd be more than happy to sit down with you to discuss the various options with you.
