An old friend of mine has been renting for years. (Such a waste! ) She has plenty of money for a hefty down payment but is too scared to do anything.
Give her a copy of Hot Tips and have her read about Aqlim’s purchase of eight houses and six condos. Inspiring stuff! At the start Aqlim was afraid too but she overcame her fear by finding a good realtor and following the game plan clearly outlined in Hot Tips (pp. 7-9). If your friend follows Hot Tips’ advice about location, type of house and price parameters (p. 7) and then gets involved in the search and becomes very knowledgeable about prices, she is well on her way to understanding the market and acquiring the courage necessary to make that first offer.
During your/her search, make sure she knows such things as the “eight vulnerable scenarios” (p. 24) and when she finds a promising unit, suggest that she read how Aqlim negotiated each of her purchases (pp. 76, 81 in particular). Remind her of the section called “fine-tuning your offer” (p. 102). This will boost her confidence.
I’m trying to get my son started in real estate. We have very limited funds but would like to help. Our son has a steady job but it pays only $8 an hour. My husband and I know that if he buys an apartment it will lead to bigger and better things. Any ideas?
Hot Tips has lots ot good ideas for you. Check out the sections on reverse mortgages (p. 86), CMHC’s 5% down program (p. 87), renting with an option to buy (p. 89) and sharing (pp. 27, 36, 71, 92). Maybe you can help with the reverse mortgage. Sharing is an excellent way too (e. g. with a Murphy bed). It might even be worthwhile for him to go without a car for a couple of years if doing this will get him into his first unit. By the way, if the bank is reluctant to give him a mortgage, try this: loan him $10,000 (or whatever) and have him deposit the money. It will make him/her look like a non-risk. As to repaying it, you can make some kind a creative deal with your son/daughter. (for a copy of my article on buying a condo in partnership send $3 (Can.) to R. Thomson, phone toll free 1 888 560 3433, or e mail firstname.lastname@example.org).
I’m thinking of going In 50/50 on some property but I don’t have much of a down payment. My partner’s situation is just the opposite–his job doesn’t bring in much money. Can this work?
It should. Read Hot Tips, p. 92. It’s quite common these days for property-buying partnerships to be formed between one person who has the down payment (but no steady investment income) and another person who has no down payment but does have a well-paying job. As stated above (p. 4), Aqlim went in 50/50 at least four times, twice with her realtor.
A word of caution. No matter how much you like your partner, have an agreement drawn up by a lawyer and don’t under any circumstances omit the “shotgun clause” (See Hot Tips p. 92). If one of you wants to sell and the other doesn’t, things can get ugly…