Title: *PRE CONSTRUCTION UNITS_ Investing & Financing Tips
Host: Evelyn Lopes, Realtor - The Evelyn Lopes Realty Team, iPro Realty Brokerage
Guest: Kyle Cole, Mortgage Specialist with BMO- Bank of Montreal
NOTES:
Pre-Construction Units - Investing & Financing Tips
Season 1 Episode 8
Introduction
- Are you considering investing in builder pre-construction units but not sure where to start?
- In this podcast episode, we will share valuable insights and tips from a mortgage specialist and discuss important considerations you need to know about investing in pre-construction units.
- We'll cover the potential benefits, the risks involved, and how to mitigate them. Plus, we'll dive into the financing options available so you can make an informed and strategic decision.
Benefits of Investing in Pre-Construction Units
- Flexibility of deposit structures, allowing investors to make payments in installments over time.
- Leveraging the increased value of the property over time can allow investors to potentially build multiple properties and increase their long-term wealth. Find out how this works.
Risks of Investing in Pre-Construction Units
- Challenges with financing and pre-approvals. It's important to work with a trusted lender and do thorough research to avoid potential challenges down the road.
- Uncertainties in the construction process and delays in completion.
- Changes in interest rates and ways to mitigate these challenges
Financing Options for Pre-Construction Units
- BMO offers financing based on the appraised value of the unit at the time of closing versus the purchase price.
- Appraisal process:
- BMO orders an appraisal once the property is about 97% complete, which is typically two to three weeks before closing.
- Pre-approvals can provide flexibility in terms of making payments in installments, but it can be challenging to obtain a pre-approval letter if the purchaser does not have the full down payment at the time of purchase.
- It's crucial to be financially sound in the investment and consider the potential risks and uncertainties.
Conclusion
- Investing in builder pre-construction units can be a smart and lucrative investment strategy, but it's important to understand the potential benefits, risks, and financing options available.
- Do your research, consult with professionals, and make informed decisions that align with your investment goals and risk tolerance.
- With the right guidance and knowledge, investing in pre-construction units can be a strategic and rewarding investment opportunity.
Contact information:
Kyle Cole | Mortgage Agent with BMO- Bank of Montreal
647-331-8850
kyle.cole@bmo.com
Evelyn Lopes | The Evelyn Lopes Realty Team | iPro Realty Brokerage
905-965-5902
evelyn@evelynlopes.com
