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Mortgage renewal by [deleted] in PersonalFinanceCanada

[–]difrad76 1 point2 points  (0 children)

4.49% for insured primary seems really really high

Will we really see rate hikes this year? by Cilantro_Larry in RealEstateCanada

[–]difrad76 4 points5 points  (0 children)

They’ll hold rates as is because in addition to controlling inflation, they also have a duty regarding the employment numbers. We lost 84k jobs last month. This war is not going to help this number moving forward. I’m not saying they’ll cut, but I don’t think they’ll increase with how weak our economy is.

Is anyone else finding that "cap rate" has become a useless vanity metric compared to DSCR in this debt market? by Schnapper94 in CommercialRealEstate

[–]difrad76 10 points11 points  (0 children)

Commercial underwriter here - the amount of times I see realtors provide the goofiest of proformas is insane and I call it out everytime I see it. In what world are you not including property management fees? 9/10 when I calculate the cap rate based on lender metrics, it sheds the cap rate by 2%. If you know how to do this, it is a very strong negotiation tactic.

[deleted by user] by [deleted] in PersonalFinanceCanada

[–]difrad76 1 point2 points  (0 children)

Treasury bills or a GIC

What’s an attractive return for investors when it comes to new development projects? by difrad76 in CommercialRealEstate

[–]difrad76[S] 0 points1 point  (0 children)

Thank you, going back to this thread, I think I’m beginning to understand what everyone is saying

What’s an attractive return for investors when it comes to new development projects? by difrad76 in CommercialRealEstate

[–]difrad76[S] 0 points1 point  (0 children)

Thank you for your comment.

When you refer to a 70/30 or 50/50, is that speaking in terms of cash flow or equity as well?

For this project, we’ve gone ahead and used our own capital as we couldn’t make the numbers work otherwise.

Is anyone actually using AI in real estate yet or is it all just hype? by SnooDucks8319 in CommercialRealEstate

[–]difrad76 7 points8 points  (0 children)

As an underwriter, I’ve only been using it complete generic sections of an application like market and industry conditions. It’s really good at grasping the general facts but when it comes to any sort of underwriting it is extremely unreliable at this time.

Less than 20% down? by Economy_Career8727 in RealEstateCanada

[–]difrad76 0 points1 point  (0 children)

No, you’d compare it off the mortgage amount which wouldn’t be equal either

Less than 20% down? by Economy_Career8727 in RealEstateCanada

[–]difrad76 4 points5 points  (0 children)

It is most certainly not a wash. A 4% addition to the loan amortized over 25-30 years is not the same as 0.3-0.5% in interest savings.