In today’s post, I would like to talk about illegal suites in apartment buildings as something you need to watch out for, especially in older properties, when you are considering purchasing an apartment building. 

By illegal suites, I mean apartment units that were often added after the time of the initial construction of the building and for which the property owner may not have obtained a building permit from the municipality to add these new units.

This can have negative consequences from a financing point of view as the income from these illegal suites will not be taken into account by the bank and in the calculation of the net operating income (NOI). This means the bank will reduce the loan amount accordingly.

You see, in the world of multifamily investing, the value of the property is mainly derived from the property’s income, called NET OPERATING INCOMEor NOI. When the NOI is lower, so is the value of the property. Therefore, banks and CMHC want to see an...

Hi!

When I speak or teach about investing in apartment buildings, I'm often asked how much money do I need to get into the big leagues of real estate investing.

 Of course, the answer to that question will depend namely on the size of property you are looking at purchasing and based on the amount of capital you have available.  That's part of your planning phase before you start writing offers on multifamily properties.

 Please, if you have not done so already, make sure to download my Ebook: 'Multifamily Investing Secrets Revealed' as it will help you with your planning by having you answer five key questions (click here to download Ebook: https://www.multifamilyinvestingcanada.com/)

Accordingly, the answer I give people when they ask me how much capital they need to get started into investing in commercial residential properties, that is apartment buildings of five or more units, is a percentage of market value and it will also depend on the following...

I finally got a chance to rest after delivering my two annual 2.5-day live training workshops last October in Edmonton and Hamilton, both of which my students rated over 9 out of 10 for the second year in a row.

I feel very blessed and grateful to have the ability to do something I love which is to share my expertise in the area of multifamily investing with students who are committed to taking action in order to create a legacy and improve their lives.  

My training programs, online or live workshops, are a pure labour of love and the result of years of hard work to develop them with the assistance of a professional consultant.  

After years as a national speaker and trainer in this subject area and giving these live training programs I found a way to deliver the content in a fun way while at the same time creating a positive human experience that enhances one's learning ability.  

Learning about real estate investment and mortgage...

In this vlog post I discuss the concept of 'Lending Value' because in my days at CMHC as a multifamily underwriter I remember many an investor being stumped when they found out from their banker they were not getting the amount of financing they thought they could get.  

Very often that was because the lending value used by the bank, and more than not by CMHC, was not the same as the market value or the purchase price.

First let's define 'Lending Value'.  

For mortgage purposes, lending value is defined as the lesser of appraised value (by formal appraiser) and the sale price.

Banks and CMHC use the lending value to determine what portion of this lending value they will give you in financing. This portion is called the loan amount. The percentage of the lending value you get in financing is called loan-to-value. 

Not getting the expected amount of financing from your banker can be dramatic as this means investors have to come up with a larger down payment in...

 In my next post, I’ll be talking about the very important concept of ‘LENDING VALUE’ which often confuses novice multifamily investors.

 In the meantime, don't forget I still have seats available for my upcoming 2.5-day live multi-family investing workshops in Edmonton (Sept. 14 pm only to 16, 2018) and Hamilton (Sept. 28 pm to 30, 2018).

You can check it out HERE!

Enjoy what's left of summer! 

Cheers,

Pierre-Paul

Hi folks.  

It's Pierre-Paul Turgeon, Canada's Authority in multifamily investing and former Insider. I used to be an underwriter at Canada Mortgage and Housing Corporation (CMHC) and now I'm a full time apartment building investor with a portfolio of 160 doors worth over $22M. I'm also a national speaker, coach/trainer and author on this topic.

I just spontaneously shot this short introductory video while on a hike in the Canadian Rockies near my home. Sorry for my rugged look. I want to let you know that I'll start blogging regularly from now on on various topics related to investing in apartment buildings in order to help you out on your journey to invest in this type of asset.

I have amazing multi-family investing hacks and strategies I'm going to share with you that will shave years from your learning curve. I'll also be sharing interviews I did with other apartment building experts such as bankers, mortgage brokers, and other successful investors.  

I will also be...