Just wondering about VTB. If the seller still has a mortgage existing on the property am i still able to use a VTB to purchase the property? Or does the seller have to have the property completely paid off?
On Deal # 3, what was the exit plan at the end of year 5? When structuring a VTB for a long term buy and hold, are the terms similar to a traditional mortgage?
VTB terms can be as flexible as you can imagine. For example, I negotiated a 13 year term on a VTB at 96% LTV, for 3%. Today, that would be even more hard than it was the time. The terms themselves are really dictated by the sellers needs, how much equity they have, the condition of the building / parameters of why they're selling, and what you are willing to trade. As Thomas Sowell said, "there are no solutions, only trade-offs". I traded a higher purchase price in exchange for the seller trading off time / money now. So it may or may not look exactly like traditional bank terms, as Seller's may view a loan as more risky than the bank would - remembering that the seller likely only has the equity and capacity to manage one of these loans compared to the bank making millions of these loans and spreading their risk across each. I hope that helps, adamjdmartin
Quick question about VTB. Typical lenders (take Scotia for example) don't like having secondary financing. How do you show a VTB as your downpayment or get around this hurdle? TIA
What does “1st or 2nd position” mean? Also, would most real estate lawyers be able to draft the agreement or should I look out for a lawyer that specializes in VTBs?
Why would he or anyone default? If someone can commit to making mortgage payments on a consistent routine basis what's the difference if it's to a bank or an individual, especially when you can coordinate better terms for both buyer and seller?
Some people sell with a VTB with every intention of foreclosing after the buyer pours their heart and soul into the property. Their first move is to send in property standards enforcement to scuttle what’s left of your bank account.@@CanadianRealEstateChannel
Just wondering about VTB. If the seller still has a mortgage existing on the property am i still able to use a VTB to purchase the property? Or does the seller have to have the property completely paid off?
Will like to know the answer to this also.
The seller has to own the property outright in order to issue a VTB.
What if the seller has an existing mortgage on property? Does seller need to own property free and clear for VTB to work?
This question needs to be answered. How can you be on title but they hold the mortgage?
Yes
Kyle - " the value tripled, but it's not for sale". Love it haha
I am a Quebec investor, thanks for the knowledge
On Deal # 3, what was the exit plan at the end of year 5? When structuring a VTB for a long term buy and hold, are the terms similar to a traditional mortgage?
VTB terms can be as flexible as you can imagine. For example, I negotiated a 13 year term on a VTB at 96% LTV, for 3%. Today, that would be even more hard than it was the time. The terms themselves are really dictated by the sellers needs, how much equity they have, the condition of the building / parameters of why they're selling, and what you are willing to trade. As Thomas Sowell said, "there are no solutions, only trade-offs".
I traded a higher purchase price in exchange for the seller trading off time / money now. So it may or may not look exactly like traditional bank terms, as Seller's may view a loan as more risky than the bank would - remembering that the seller likely only has the equity and capacity to manage one of these loans compared to the bank making millions of these loans and spreading their risk across each.
I hope that helps,
adamjdmartin
Quick question about VTB. Typical lenders (take Scotia for example) don't like having secondary financing. How do you show a VTB as your downpayment or get around this hurdle? TIA
What does “1st or 2nd position” mean? Also, would most real estate lawyers be able to draft the agreement or should I look out for a lawyer that specializes in VTBs?
This was great. THANK YOU!
Im in the US but this was very helpful. Thank you
Hy your channel deserves much more views and subscribers ❤️
Lets say it my personal residents? Will I loose my principal residentsy exemption?
Yes.
The 3rd example. Seller wanted vtb. How do you locate these investors that are offloading and want vtb?
Spectacular video!!Thanks for posting!
The info is good the audio in this is awful get some sound dampening panels, damn
Yeah, do not do this 🤣 this is how you go broke and end up dead or in jail when you ultimately default.
Why would he or anyone default? If someone can commit to making mortgage payments on a consistent routine basis what's the difference if it's to a bank or an individual, especially when you can coordinate better terms for both buyer and seller?
Some people sell with a VTB with every intention of foreclosing after the buyer pours their heart and soul into the property. Their first move is to send in property standards enforcement to scuttle what’s left of your bank account.@@CanadianRealEstateChannel
10 million is not a lot
Why work