Real Estate Investment Myth #1 : “‘I can’t buy that property because I don’t have a (big enough) downpayment”
This past week I had the good fortune of helping a client buy the real estate investment property they are currently renting in. It’s really a great story how it all came about.
The Reitzel team in our office listed a gorgeous duplex on Schneider Street in Kitchener, Ontario, right at the opening to Victoria Park. Lovely old home, built in 1911, original hardwood & wood trim etc. Very nice. When it came on the market, I scheduled a showing for the property, for two reasons: 1) I like to see every income property that comes on the market so I can keep on top of inventory for my clients, and 2) because Sarah and I are currently looking for a duplex.
When I set up the showing, I got an email from a friend of mine, who as it turns out, was renting the first floor of the duplex. She told me how much she loved living there, and asked me to let any of my clients know, should they happen to buy the property, that she’d like to stay. The next two times I saw her, she was talking about how she’d likely have to move, since a buyer may want to live in the lovely first floor apartment; since she loved her place so much that would be an unfortunate situation.
One morning at Toastmasters, I asked her if she had looked into buying the property. She replied back, without batting an eye, that she would love to, but alas, she didn’t have a 25% downpayment, ergo she couldn’t buy it.
I told her I’d have my mortgage broker email her, and as it turns out, she qualified to buy a property (in fact, qualified for up to 15K more than what she paid) with zero downpayment.
Whereas her rent was $875 for the lower unit, the mortgage on the entire home is approx $1350. The upper unit brings in approx $900.
Suffice to say, she is exctatic. Moral of the story: You can afford to start investing in Real Estate TODAY!
To explore the wealth building opportunities available to you in real estate investment, contact me at 519 570 4447 or benjamin(AT)benjaminbach.com
Benjamin Bach is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo. Benjamin loves to help people start building equity and get on the road to financial freedom and abundance. He wakes up each morning excited to fulfil his mission of building wealth for great lives through comprehensive Real Estate investment planning, and helping people achieve success.
If you are interested in how you can start your Real Estate Investment portfolio, have any questions about buying a home or selling a home in the Waterloo Region, or are looking for a good book to read please email Benjamin (benjamin(AT)benjaminbach.com) or call him at 519 570 4447.