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Hi Alby,
If you are not interested in buying it, let me know where it is and the agent too please.
Consider using a broker when you want to buy more than 3 units in the same development. They can help you obtain finance from two different lenders and you may not need to go commercial.
The overall cost of the property is not high, the reason it is commercial is because there are 4 or more units.
I know of a deal like this recently with 8 units. Two lenders, 4 units with each lender. They were all strata titled.
Tracey[biggrin]
“the difference in repayments between a commercial loan and residential loan are quite significant and may tie the persons finances up too much, particularly if on a low income.”
The premise of my post is to bring on board experienced advisors – preferably with a successful track record in real estate investment.
The size of the project is relatively inconsequential – the project in question would be a good platform for implementing this “strategy”.
The experience will bring forth the capital.
One of the first lessons a qualified real estate investor will advise is finance the project with “other people’s money” – private and institutional. Before getting to this phase, considerable time will go into the deal – which is a cost in itself and should be positioned this way.
If the numbers stack up and the deal is viable – and there are people behind the “front man” with a successful track record, the deal will come together with persistence.
As a result, the difference between a commercial and personal loan is a moot point. The same can be said for the individuals income.
— Michael
P.S. Tracey’s enthusiasm highlights the reason why this individual should follow through with the deal – or at least make a few dollars handing it to someone else.
