Purchase Plus Improvements Financing Seminar.

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Purchase Plus Improvements Financing Seminar.

• You Love The House, But!!!

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Introduction

• I would like to take the opportunity to thank you
  for taking the time to view this very special
  presentation.
• I am one of the only mortgage specialists who has
  chosen to specialize in this financing area.
• Not many people are even aware this program
  exists.

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Introduction

• This seminar will touch on the following subjects

What is Purchase Plus Improvements ?
How does it Work ?
This Seminar
Who to contact for the Renovations
Example of an actual deal
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What is Purchase Plus Improvements

• As the homes in Burlington and the surrounding
  area, are getting older, more and more are in
  need of some sort of repair.
• A house might need new windows, new furnace, or
  even new carpeting.
• There is a very narrow window of opportunity
  which would allow a purchaser to roll the costs
  of those renovations into the new mortgage.

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What is Purchase Plus Improvements

• Even if you are a first time homebuyer buying a
  home with 5 down, you can take part in this
  program.
• When you are out looking for that perfect home,
  in that perfect neighborhood, please keep this
  program in mind.

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What is Purchase Plus Improvements

• The following are items that could be included in
  the improvements.
• Roofs
• Windows and Doors
• Driveways
• Garage Doors
• Fencing and Decks
• Furnace and Air Conditioning
• Flooring,(Carpeting, Hardwood and Ceramics)
• Kitchen and Bathroom Remodeling
• General Contracting and more.

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What is Purchase Plus Improvements

• Instead of telling your realtor I love the house
  but. , buy that house in the condition that it
  is in, usually for a lower price, and fix it up.
  
• The older homes have more charm and lets face it,
  much larger properties. Dont settle for a new
  32 X 100 lot, when you could by an older home
  with a 60 X 120 lot for the same price. You
  would also benefit from mature trees and
  landscaping in an older property.

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What is Purchase Plus Improvements

• I have personally used this program for the last
  house I bought. After seeing how simple it was,
  I question why more people dont benefit from
  this program.

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How does it work ?

• STEP 1
• Before you submit your offer, you should have
  your mortgage pre-approved, to establish your
  maximum financing limit. If the renovations will
  push your mortgage requirements above your limit
  then this may not be a viable option.
• If you would like to discuss a pre-approved
  mortgage, please email me _at_ dkendall9_at_on.aibn.com

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How does it work ?

• STEP 2
• Submit your offer with your Real Estate agent,
  but make sure your offer is Conditional on
  Financing, because until you know the cost of
  the renovations it is difficult to decide if you
  want to buy the house.
• Also have your agent input a Re-Visit Clause in
  your offer, this will allow the contractors to
  enter the house generally with 24 hours notice,
  to provide a written estimate for the work that
  needs to be done while your deal is conditional.

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How does it work ?

• STEP 3
• Before you finalize your offer, try to set your
  new closing date 1 week before you need to move
  out of your current home. If you have a home to
  sell, you will require bridge financing. It is
  not as expensive as most people think and this
  will allow the renovator time to complete the
  renovations in an empty house. Much less
  disruptive at moving time as well.
• If you require information about bridge
  financing, click below to email me at
  dkendall9_at_on.aibn.com

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How does it work ?

• STEP 4
• Contact the contractor(s) to get the written
  estimates for the work that needs to be done.
• Have them call your Real Estate Agent, to set up
  a time so they can get in the house. This also
  needs to be done, ASAP, because these estimates
  are needed to get the increased mortgage
  approved.

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How does it work ?

• STEP 5
• When I submit your mortgage, I increase the
  purchase price of the home by the cost of the
  renovations. We then finance, based on the
  higher price.
• Now, I can not guarantee that CMHC or the lending
  institution will always accept the renovations,
  at a dollar for dollar increase.
• However as long as the amount is reasonable for
  the work being done, and you are not increasing
  the price of the house beyond a marketable value,
  they will usually approve the total increase.

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How does it work ?

• STEP 6
• Once the mortgage is approved
• Contact your Real Estate agent and waive your
  financing condition.
• Contact the contractor to set a date to complete
  the renovations. If you managed to have the one
  week over lap in closing dates, that should be
  when the work is completed.

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How does it work ?

• STEP 7
• When we advance your mortgage on closing, what
  will happen is, the monies intended for the
  renovations will be Held Back by your
  solicitor, until confirmation that the work is
  completed. Once confirmation is received then
  the monies are released by your lawyer to you
• You then pay your contractor.

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How does it work ?

• RECAP
• This sounds a little complicated, but I have
  tried to cover all aspects in detail.
• The basics of this program is that you submit the
  cost of the renovations at the same time you are
  getting your mortgage approved, we increase the
  value, and you have now bought a Perfect house
  in the condition you want it.

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How does it work ?

• RECAP
• I added a few steps, from mistakes I made
  personally.
• We had all new carpeting installed throughout the
  upstairs. We did not bridge for the week.
• This meant when we were moving in, all the
  upstairs furniture had to go in the garage, until
  the carpeting was installed. Not very convenient.

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Example of an Actual Deal

• A client saw a house that needed a new garage
  door, new flooring in the kitchen and main floor
  bath, and the carpet throughout the upstairs was
  very worn and outdated.
• Why would any one want to buy this house ?
• The price was right, it was in a great
  neighborhood and had a great size lot.
• They loved the house but

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Example of an Actual Deal

• The original price of this house was 200,000
• They submitted the conditional offer at 195,000,
  and the deal was accepted.
• The renovations cost 8000.00 in total .
• The client only wanted to put 10 down.
• So the deal was set up as follows

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Example of an Actual Deal

• Original Purchase Price 195,000
• Renovations 8,000
• Revised Purchase Price 203,000
• Down payment 20,300 (10 down)
• Mortgage 182,700
• CMHC Fee (2.0) 3,654
• Total Mortgage 186,354

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Example of an Actual Deal

• Mortgage payment for the renovated home.
• 186,354 Mortgage at 7.25 (sample rate only) 25
  year mortgage.
• 1334.14

• Mortgage payment for non renovated home
• 179,887 Mortgage at 7.25 (sample rate only) 25
  year amortization.
• 1287.84

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Example of an Actual Deal

• So as you can see the 8000 in renovations ended
  up costing 46.30 per month as an increase to the
  mortgage payment.
• Every 1000 in renovations costs approx 7.16 per
  month. (Based on 7.25 sample rate)

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Example of an Actual Deal

• Now some skeptics out there will say, by
  amortizing the renovations into the mortgage, you
  are paying a lot of money over 25 years.
• I dont disagree with that statement, however, if
  the house already had those renovations done, you
  would have had to pay a higher price for it
  anyways.
• A small price to pay for the new carpets, new
  ceramics, and new garage door.
• You also would not have had the opportunity to
  pick the colours, style, or quality of the items
  being renovated.

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How Burlington Home Buyers.com will implement the
purchase plus Improvement program.

• The reason why more people have not used this
  program before is that it requires the
  co-operation of numerous individuals.
• Burlington Home Buyers.Com covers every possible
  area involving the transaction of buying a home.
  
• Each individual who has elected to advertise on
  this site has had the purchase plus improvement
  program explained in great detail, and understand
  their role in this transaction.

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How Burlington Home Buyers.com will implement the
purchase plus Improvement program.

• The Buying a Home section, has brought together
  the web site of numerous of Burlingtons top real
  estate agents, as well as a easy way to search
  for homes on the internet.
• We have also provided a mapping link which will
  help you locate exactly where a home is once you
  know the address.

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How Burlington Home Buyers.com will implement the
purchase plus Improvement program.

• The Buying a Home section also provides links
  to some of most active Real Estate Lawyers, Home
  Inspectors, and Home Insurance agents in
  Burlington.
• I have also provided a link to my own web site
  for mortgage financing which also contains a 52
  page presentation for 1st time home buyers as
  well as, mortgage rates, rate guarantees, a
  payment calculator and a economic update.

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How Burlington Home Buyers.com will implement the
purchase plus Improvement program.

• If you would like to link to the Buying a Home
  section, just click below
• Buying a Home Section
• For information about the Renovation and Repair
  section , continue with this presentation.

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Who to Contact for the Renovations ?

• I was amazed to find out that most of the
  renovators were also not aware of this financing
  program either.
• It can be difficult to explain to renovators that
  they will be paid from the mortgage proceeds,
  once the work is done.

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Who to Contact for the Renovations ?

• BurlingtonHomeBuyers.com will help you choose a
  renovator.
• Now please be advised that I personally do not
  endorse the work of any of the renovators listed
  on this site, but I have explained the Purchase
  Plus Improvements Program in depth to each
  company that has chosen to advertise on
  BurlingtonHomeBuyers.com
• (I need to state this for liability purposes.)

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Who to Contact for the Renovations ?

• To see advertisements and web sites of local
  renovators please click on the link below.
  http//www.burlingtonhomebuyers.com/
• Thank you for taking the time to view my seminar.
  If you would like any additional information
  about this program, or please email me at
  dkendall9_at_on.aibn.com/
• Or call me at 1-905-336-8448, ask for Dave
  Kendall, Mortgage Specialist, Mortgage Financial
  Corporation.

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To Exit The Presentation

• Please feel free to complete Online Seminar
  Survey located at the Online Seminars section of
  Burlington Homebuyers. Com.
• To leave this presentation, just click on the X
  located on the top right hand corner of this
  window.