Glossary

What is a Vendor Take Back? A VTB or Vendor Take Back is when the seller (vendor) of a property provides you with a some or all the mortgage financing for purchasing his/her property. This type of financing is more common on commercial properties (including multi residential) however you can tap into this strategy on residential purchases. A VTB can also entail the seller covering one or more of your closing costs such as land transfer tax, appraisal, survey or application fees. Why Consider a Vendor Take Back There are many reasons as to why seller-arranged financing may be attractive to you as a buyer: 1. Buying a distressed property. If you are a flipper or looking to buy distressed properties with the mindset of improving/renovating those to increase value then a VTB may come in handy, simply because some lenders may shy away from lending against such a property or may lend at whopping interest rates. When dealing with distressed properties, it is often beneficial that you finance your purchase through a combination of a VTB, Line of credit, your own cash and then approach a lender once you have brought the property to a certain standard. 2. You are unable to obtain Financing through the standard lending sources. Qualifying for a VTB is a matter of negotiating one with the seller while getting a mortgage requires you to qualify with the lender. If your financing application got declined and you have exhausted your...

The federal government introduces some changes to down payment requirements for federally regulated lenders. This video breaks down the "old" rules versus the "new" rules.

Numbers of unit X 12 Months) : Ex $5,772/4=$1,443, $1,443/12=$120.25

NOI / Debt Service (Principal+Interest)

Use double o7 (Ex $200,000X0.007=$1,400(Monthly)   Than $1,400 x12 = Annual (Always use annual)

NOI x 10 = Offer price  Gross Revenue (Income) X GRM = Purchase price

NOI / Price

 

Price/numbers of unit

Cash Flow(x12) / Down payment x100

NOI - Debt Services 

Gross annual income – Expenses = NOI

Meaning TLC means "tender, loving care." A home that needs TLC will require additional work. Significance A home that requires TLC may or may not be a good investment. You can purchase the home at a bargain price, but you may wind up spending a great deal of money fixing the problems it has. Considerations Have any house you are considering inspected by a professional. A professional home inspector can give you information regarding the repairs a house will need. Potential There can be true potential for houses that need TLC. Sometimes construction is started on a house, but not finished. This type of home would need TLC, but a buyer is essentially getting a newly constructed home. Other Phrase Another phrase that is similar to TLC is "Handyman Special." The two phrases convey the same message. You will need to spend additional time and money on the home.

A method by which monthly mortgage payments are equalized over the life of a loan, despite the fact that the proportion of principal to interest changes.

The summary of the public records relating to the ownership of a particular piece of land. It represents a short legal history of an individual piece of property from the time of the first recorded transfer to present.