Financing, end if the road??

by Steve DeVoe
(Mississauga, Canada)

I have a finite amount to invest and although my personal covenant is good, I don't understand how I can keep building a portfolio when my equity is exhausted.

I'm 50 and I don't want to wait while appreciation and equity build-up give me enough to buy something more.

I realize investors maybe an option but most want you to have a piece in as well, and I don't want to fight over who's driving the bus. I want to drive my own bus!

Not sure where to go from here?

Steve

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Dec 14, 2009
Road Bumps
by: Tom Karadza

Hi Steve,

In Canada we are bound to the lending practices of the Canadian banks and they are mostly "income" and "capital" based.

Unfortunately, when you run out of equity there's only one answer - you need to find more.

I know that's not what you want to hear.

And you're right about Joint Venturing with other people. You can do that but you do lose some control.

You can go the "hard money" route and borrow money, however, you'll pay higher interest rates than normal and many banks won't accept borrowed funds as a form of down payment so you'll need to work closely with a good investment oriented mortgage broker.

I would highly recommend talking with a good mortgage broker about your goals and see if they have a plan for you.

I recall working in the software industry with many startup companies and finding more equity/capital to grow was always the #1 issue on the table - and it's the same with growing a real estate portfolio.

I wish I could help more than this!

Let me know if you have further questions...

Tom.

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