The Mortgage Files Part 7

** This is part 7 of a longer story. If you want to understand what’s going on I recommend starting with PART ONE (which is packed full of intensely awesome action), but if understanding isn’t a priority… by all means… read on!**

So here we are. The last chapter of the story, and I’m not going to lie to you… you won’t like the ending.

It’s not a complete cop out… I promise you it hasn’t ‘all been a dream’. It really happened.

In fact… it’s still happening.

Yup, our five day financing clause has become (after 2 extensions given by an extremely gracious seller) a 15 day financing clause. And although we’re close to having to make a final decision I won’t pretend like I know exactly how it’s all going to end.

So there won’t be a satisfying, conclusive ending today. But, let’s be honest, if you thought an ‘X files’ themed mortgage story was going to have a conclusive ending… I kind of feel like that’s on you.

Coming away a little richer

Even though it’s up in the air whether we will add to our net worth, we have definitely added to our store of knowledge. The entire process has been a series of lessons. So here are a few of the things that I’ll definitely be walking away with…

The Mortgage Files Part 7 - Lesson 1

It’s a bit of an R2R mantra. There are 8 billion things in life that are completely out of our control. Don’t worry about those. Get the few things you can control under control… and then let the rest go.

  • Work on your credit – anyone can have good credit. Just pay your bills… and if you can’t afford to pay your bills… have fewer bills. (#grossoversimplication)
  • Save a bunch of money – so much more than you think you need. There are always costs that you never thought of, things that end up being twice the price. If you can barely afford the downpayment… you probably can’t afford to buy. Plus… lenders don’t want to just see a downpayment, but also your ability to support that investment. So save your little butt off.
  • Have your financial records in good order – don’t be like me, flailing around and digging things out of piles of paper an hour before a deadline. If you’re serious about buying property make sure you have all the docs you need ON HAND (maybe even scanned already so you’re ready to act).

The Mortgage Files Part 7 - Lesson 2

You cannot know everything about the real estate world before jumping in. It’s a lifelong learning type of thing, so you need to have people that you can ask all the questions to, and there are going to be a ton of questions.

Our team has been fantastic through it all, not only in the work that they’ve done, but the patience that they’ve shown with all of our questions. They’ve been available, attentive, supportive and just all around awesome people.

  • Mortgage agent – it’s a crazy world that I wouldn’t think of entering without an ally. If you’re an artist and want to work with someone who will understand the world you’re coming from check out CARDINAL MORTGAGES. 
  • Real estate agent – she was an invaluable resource, not just as a real estate agent, but also as an owner of rental properties who could give us some great tips.
  • Lawyer – there is so much paper work, you want to have someone who’s going to watch your back… legal styles.
  • Accountant – I could do ten posts on rental property tax implications. Having a professional walk us through the basics was a huge part of making this decision.

The Mortgage Files Part 7 - Lesson 3

One of the reasons I really wanted to tell this story is not because it’s the ‘definitive guide on buying a rental property in Toronto’, but because so many things can happen…

Every property tells a different story. Every lender has a different set of conditions. And every buyer comes with a certain set of financial pluses and minuses.

When I was looking at it from the outside it seemed like the hardest part of it all was going to be getting a seller to accept our offer (that’s the dramatic part on TV), but as you can see from our experiences… that’s just the beginning.

So have a few cold beers in the fridge, a batch of emotional support brownies at the ready, and strap yourself in for the roller coaster that is property buying.

It’s fun?

The Mortgage Files Part 7 - Lesson 4

I really believe in this, and our whole experience just kind of confirmed it.

Investments can be great. There is a right person and situation for just about every investment out there… but it’s up to you to figure out which ones are the right ones for you.

Real estate can be such a ‘standard’ write of passage that you just assume it’s ‘good for you’. But maybe it’s not.

That’s up to you to decide.

For us, we really want to build up a collection of investments that can produce income… so that in our later years there will be a base level ‘salary’ coming in that’s not dependent on any other factors.

After we had that plan it was easy to see how this specific condo might fit into that goal.

We knew what we wanted before we found it.

The Mortgage Files Part 7 - Lesson 5

When you’ve been living an up and down story it’s hard not to become invested. At some point it’s difficult not to feel like you’ve put so much emotional energy into a project that you couldn’t possibly walk away.

We’ve talked about this a lot.

Making sure that we’re not just continuing because we don’t want to quit.

Mimi and I are both not-quitters, almost to a fault. That’s why it’s been so important for us to remind each other that we can always walk away, and that we SHOULD walk away if at any point this seems like something we’re uncomfortable with.

I really believe that you shouldn’t invest in something if you don’t understand it, or don’t feel comfortable with how the numbers work, or it just doesn’t serve the life that you want to live.

But it’s easy to get swept up in the excitement… and forget what you’re really doing it for.

So what happens next…

With this condo, I’m not sure (although I promise I’ll keep you posted… I also promise it won’t be in the form of daily 7 part posts… #sorry).

What I can say for sure, is that this experience hasn’t turned us off of our plan. Whether it’s real estate, an extensive dividend/fixed income portfolio, or something yet undiscovered… we will find a way to build the kind of stable income producing wealth that works well with this crazy variable income life.

It has been crazy (and it’s not even over yet), and at times completely overwhelming, but diving into new worlds and learning on your feet is an amazing way to take it all in.

What will happen next? I really don’t know, but… the truth is out there.

***Just for the record let me make clear that this is a story of OUR experiences with ONE MORTGAGE SITUATION. If there’s anything that I’ve learned about this crazy world is that every person and property brings up a whole new set of circumstances. If you have questions talk to a broker (I know a great one). ***

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