Which is why, if I wanted to be a landlord, I would do commercial. Much easier to deal with payment issues, no LTB, hopefully no parents as co-signers, etc. No pay, change the locks very shortly after.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
Interesting that I never hear anyone in a position of influence, mayors , MPPs , federal politicians, say , if the LTB wasn’t such a pita and backlogged years , and if there wasn’t such unfair judgements lobbed at landlords , maybe someone would embrace the rental business . Nope it’s all about how we can get municipal and city housing built( which looses millions a year) .
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The downside of commercial is in a recession no one wants your space for work. They still need a place to live.
I bought my unit for less than the price of construction because of the 1990's recession. Landlords were offering free rental space. Just pay some of the carrying costs but yeah, no pay and paper on the window and it's break and enter if they go in. You hold their stuff hostage.
You're beating up the poor homeless that haven't worked in generations.
Another court decision in favor of a seller. Buyer required a reduction of 355k as appraisal was less than the amount they had agreed to pay. Court said too bad, you signed, you have to pay agreed price. Deal didn't close, buyer has to pay 330k for a home they never owned that they had agreed to buy for 1.15M.
We need more of these stories publicized. All of the genius investors that brag about how much things appreciated before closing aren't willing to take their lumps when things don't go their way.
realestatemagazine.ca
We need more of these stories publicized. All of the genius investors that brag about how much things appreciated before closing aren't willing to take their lumps when things don't go their way.
Buyer doesn't close, liable for property value loss of over $330,000
Discover the risks of negotiation missteps in property transactions. Find out how making certain demands can result in financial losses.
realestatemagazine.ca
Issuing an ultimatum when you're on thin ice and pushing the limits to boot isn't the sign of real estate expertise.Another court decision in favor of a seller. Buyer required a reduction of 355k as appraisal was less than the amount they had agreed to pay. Court said too bad, you signed, you have to pay agreed price. Deal didn't close, buyer has to pay 330k for a home they never owned that they had agreed to buy for 1.15M.
We need more of these stories publicized. All of the genius investors that brag about how much things appreciated before closing aren't willing to take their lumps when things don't go their way.
Buyer doesn't close, liable for property value loss of over $330,000
Discover the risks of negotiation missteps in property transactions. Find out how making certain demands can result in financial losses.
It would appear the property sold for above the buyers appraisal number. They would have had their cake with extra icing.
It would be interesting to know how much cash the buyer has in hand. The $50K deposit is toast but the other near $300 K they have to come up with could have been a partial cash down payment or was it a highly mortgaged deal and they have to scramble to come up with settlement money?
Going forward the ex-buyer has a drained bank account and they may be making high interest payments on a settlement loan while at the same time maintaining their existing home. The real estate equivalent of "Hold my beer."
Odds are good that a buyer looking at a house over 1M already has a dwelling. I wonder if the seller can get a lien on their existing house? Could the courts force payment now with a settlement loan? Ime, courts issue a lot of judgements but then do little to expedite the settlement.
Considering the buyer having a problem getting a mortgage to honour his commitments, he may have problems getting a settlement loan or a mortgage renewal.
Courts issue judgments but collecting on them isn't a walk in the park. Unless there is criminal content it's hard to get personal bank information. Big companies can do it. A friend owed Visa big time and they managed to take part of his CPP.
Small amounts are the worst. Getting the judgment could cost as much as the principle amount and pursuing it even more. However a judgment never goes away. 40 years later an inheritance pops up and the jaws of justice clamp tight.
Does the judgment survive bankruptcy I would assume the person owing is going to go into bankruptcy
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It looks like court ordered fines survive bankruptcy but lawsuit judgements can be discharged in bankruptcy. That being said, if the buyer was in a remotely reasonable place to be buying a house for 1.15, their net worth should be hundreds of thousands (or at least it was a few years ago). Bankruptcy at least speeds the process up for the seller. No need to hound them for years to get your pittance.
Mad Mike
Well-known member
Collecting judgments can be tough, lots of people will need to set up an enforcement hearing and do another round with the courts. A judge can issue a seizure order on cash or assets, garnish wages. You can also ask for additional damages to cover costs and other losses. .
It can be impossible if someone decides to leave the country.
If a person chooses to leave the country instead of paying what they agreed to pay, I call that a win for the country. Sucks for the seller though.
AllistonGT
Well-known member
Getting those funds will be the real challenge.
A buddy had an unconditional sale fall through. Lawyer said take the deposit, don't waste your time trying to get more as you almost never actually get the money. Lucky for my buddy, it sold right away for more than the first guy was going to pay, so a double win for him.
Former neighbor sold his farm twice , developer gave a hefty down payment, the defaulted after 8 yrs of making payments , Gord sold the place to a second developer, with a hefty down payment and they then payed him out . Holding the first mortgage gave him a nice retirement. Second sell made him very comfortable.
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Mad Mike
Well-known member
That can be a dirty way of making money.
A fellow I partner with on the occasional deal where he buys unmortgagable fix-r-uppers cheep, then sells it to a wannabe flipper/renovator. Buyer gets a 50k LOC, buddy does a VTB at prime +interest only for 1 year, usually at an agreed price of $20over what he paid.
He gets about 1/2 the places back after a year from buyers that cannot finish or refinance. They walk, he keeps their initial $50k down, then resells to the next wannabe flipper. Rinse and repeat.
I don’t see a dirty side to any of that , it’s just business. You can trace that program back through history , loan them enough money to bury themselves , then start buying back .
So many flippers over estimate thier skills and miss understand the market reality.
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So many flippers over estimate thier skills and miss understand the market reality.
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Mad Mike
Well-known member
I have one on the go like that -- wasn't my intention to get it back, but based on progress the buyers bit off more than they can chew. I'll probably get it back in Jan -- hopefully not, but it's not looking good.
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