Realty Bytes- Conversations on Real Estate and Lifestyle

PRE CONSTRUCTION UNITS_ Investing & Financing Tips

Episode Summary

Welcome to Realty Bytes, Conversations on Real Estate and Lifestyle with your host, Evelyn Lopes. In this episode, Evelyn is joined by Kyle Cole, a mortgage specialist with BMO- Bank of Montreal, to discuss the topic of investing in builder pre-construction units. As a veteran realtor with over 35 years of experience, Evelyn shares her insights on the potential benefits and considerations of investing in pre-construction units, as well as the risks involved and how to mitigate them. Kyle offers his expertise on financing options available to investors, including tips on securing a mortgage and building a strong credit. Whether you're a seasoned investor or just starting out, this podcast provides knowledge and tools to make informed decisions when it comes to investing in pre-construction units and achieving your real estate investment goals. Tune in to this exciting episode and learn everything you need to know about investing in pre-construction units. Sit back, relax, and join Evelyn and Kyle as they dive into the world of real estate investments.

Episode Notes

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