E097 How Can You Turn Commercial to Residential and Score Big with CMHC?

Become an REI Hot Seat Insider: ⁠https://submit.jotform.com/info_Admin_info831/rei-hotseat-insider-sign-up-form In E097, Andrew Hines is joined by Brad McCrae and David Hulshof to discuss a unique real estate deal involving the conversion of a commercial townhouse complex into residential units. Brad, a first-time guest on the show, explains that this deal is particularly attractive because it offers a straightforward path to stabilizing the asset, refinancing, and potentially pulling out most or all of the invested capital within 12 to 18 months. The property, currently home to a few commercial tenants with no leases, is set to be converted to residential use, with preliminary approval from the city. The guys delve into the details of the conversion process, discussing zoning changes, environmental assessments, and the potential financial benefits of the project. They also touch on the importance of due diligence and risk management in real estate investing, highlighting how the deal could be highly profitable for the right buyer. Don't forget to join the Insiders list for access to off-market deals and other unique opportunities. Andrew's linktree : https://linktr.ee/theandrewhines REI Hot Seat Instagram: https://www.instagram.com/reihotseat/ E097 How Can You Turn Commercial to Residential and Score Big with CMHC? 0:39 - Introduction & Deal Overview 1:06 - Why This Deal is Significant 2:17 - Deal Details: Commercial to Residential Conversion 17:50 - CMHC Scoring Strategy 19:30 - Analyzing the Financials 25:50 - Final Thoughts & Due Diligence Tips Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision. --- Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively. His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.