E098 Can This CMHC Financing Flexibility Secure Your Next Deal?
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In E098, Andrew Hines and Jacob Campagnaro delve into the details of a real estate investment opportunity in Toronto's desirable Beaches neighborhood, focusing on a sixplex property. They discuss the advantages of quick closing in securing better deals, noting that understanding the seller's motivations—such as the need for speed—can lead to more favorable pricing. The property, a six-unit walk-up that has been meticulously maintained by the owner for over 12 years, presents significant value-add potential, particularly through rent increases and creative financing strategies.

Jacob highlights that while the current rents are below market, there is a substantial opportunity to increase revenue as units turn over. The owner-occupied unit will be vacant at possession, offering immediate rental potential or the option for the buyer to negotiate terms, such as the owner staying on temporarily or providing rental guarantees.

They also discuss various financing options, including the possibility of using a Vendor Take-Back (VTB) mortgage to mitigate tax liabilities and reduce the buyer's upfront costs. Jacob explains that the property has not been refinanced in over a decade, leaving room for creative financing solutions like a VTB, which could be structured in multiple ways depending on the buyer's needs.

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E098 Can This CMHC Financing Flexibility Secure Your Next Deal?

1:08 - Overview of the Toronto Beaches Sixplex Property

3:19 - Rent Potential and Market Spread

5:00 - Financing Options and CMHC Underwriting

6:02 - Negotiation Strategies: Understanding Seller Motivation

7:14 - Creative Financing: Vendor Take-Back (VTB) Mortgage

8:23 - Market Conditions and Opportunities in Toronto

9:45 - Potential for Airbnb and Investment Strategies

11:18 - Tenant Relations and Cash for Keys

12:05 - Creative Deal-Making and Structuring Offers

14:01 - Final Thoughts on Investment Potential

16:00 - Closing Remarks and REI Hot Seat Insiders Invitation

Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.

Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.

His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.