noeeen Mh emer estat rete oe vette toe ain

Creativity key to
landing dream home

IF YOU have little or no money but still dream of buying
a home, whether your own or an investment property, use
your imagination and creativity to help make your dream

come true.

That was the advice Peter Cle-
ment gave 112 people who attend-
ed his one-day seminar ‘for those
who want to invest in residential
real estate.*’

Although aimed primarily at the
investor interested in revenue
property, many of Clement's tips
also apply to people who simply
want to buy their own home as
both a personal and a financial
investment.

In previous columns, {| have
suggested approaches like borrow-
ing from family, inviting a family
meniber to share in ownership and
living in part of the home while
renting out the rest.

**There is no free lunch,’’ said
Clement, who coaches real estate
investors individually, through
seminars and with «a workbook-
and-cassette course. ‘‘But there
are plenty of people willing to
take you to lunch. What will you
bring to the party?

“You can look to somebody
else to help with the financing as
long as you have something to of-
fer in exchange - even if that
something is simply a creative ap-
proach that benefits all concern-
ed.”’

The key, said Clement, is to

Michael
Grenby

DOLLARS AND SENSE

find a willing partner, whether it’s
the person selling the property,
the bank or other lender, the real
estate agent, an investor - or any
combination of those involved.
**Let’s say you find somebody
who really wants to sell. The ask-
ing price is $100,000 and there’s
an $85,000 mortgage on the place.
You ask the vendor (seller) to take
back a $10,000 second rnortgage
and you assume the first mor-

tguge. You have just bought a
home for five per cent down.”

Asked whether a bank might
balk at a purchaser with only 2
five-per-cent down payment, Cle-
ment suggested having the vendar
approach the bank to arrange to
have the purchaser take over the
mortgage.

“*As Tong as your credit checks
out and you have the ability to
make payments, you should be
fine."’ said Clement. Other,
“nothing down" examples:
¢ You share the purchase with an
investor (not necessarily a family
member). The investor puts up the
down payment and closing costs
in exchange for a share of the
profit (or loss) when the place is
sold. You agree to joint ownership
and a buyout formula. ‘You must
draw up and sign a joint venture
agreement with each of you get-
ting independent legal advice,"'
said Clement.
¢ The vendor takes back a second
mortgage for the difference be-
tween the first mortgage and the
purchase price. ‘'This approach is
worth paying full price or even
more for the home,’’ Clement
said.
® Let’s say you are buying revenue
property. On closing day, your
tenant pays one month’s rent plus
damage deposit, the agent

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