Real Investment Property Income: Recent Episodes
Jonathan Tillger & Geoff Edie
Jonathan Tillger is one of Canada's top mortgage brokers. Together with Geoff Edie, the two offer a unique and off beat approach to understanding real estate investing and financing. Whether you're a first time homebuyer, a rookie investor, or a seasoned pro, these guys have practical knowledge, and sound strategies you can apply today. There's a million different real estate strategies out there, which one actually works for you?
Over the last couple of decades the investing landscape has changed dramatically. From the dotcom era to bitcoin, it can be tough to keep up. But one thing holds true, those who are ahead of the curve, and had some foresight, have been able to make a ton of money.
But how do you know which ones will be winners?
I don’t know about you, but I’m not much of a gambler. It’s too damn hard to make money. I don’t want to risk it on unfavourable odds.
I’m a firm believer in the basic business principles that have stood the test of time. Strong leadership, a solid customer base, and of course… revenue. As flashy as something like NFT investing is, to me, if it doesn’t make sense on paper, it just doesn’t make sense.
Our guest on this episode of “Guide 2 the Grind” offers a unique perspective on modern investing with old school principles. Kyle Kuderewski is the Operations Manager for WebStreet. WebStreet offers passive investments in Web based businesses. They merge the old with the new to create an entirely new way for investors to diversify and take advantage of burgeoning areas of technology.
It’s a whole different way of looking at digital investing, you definitely want don’t want to miss this episode.
www.guidetothegrind.com
Since the dawn of time one thing has always captured our imagination. From Neanderthals sitting around a campfire, to Hollywood blockbuster movies, we are captivated by stories.
I used to work in the film business. I worked on tons of tv series and feature films. I can recall countless times that I watched directors and lighting technicians spend hours getting a scene to look just right, then spend only a minute or two actually filming. The one thing that always stuck with me in those moments was the thought that no matter how visually pleasing you make the scene, if the content is crap, nobody’s gonna care.
An example that immediately comes to mind is the movie “Locke” with Tom Hardy.
The entire movie is just one person, Locke, driving somewhere in his car and taking phone calls. Not the type of movie that captures your attention with car chases and explosions, but I was totally enthralled by the story. I couldn’t stop watching it.
Why is this important?
Because we as business owners are great at telling our customers every fact, figure, and detail about what we do, but very few of us tell the story of what we do, or how we can matter to our customers.
There’s an old saying in the sales world… “Facts tell, stories sell”.
Yes, our clients need to know that our product or service is going to do what we say it’s going to do, but why is it better for them to do business with us rather than our competitors?
It’s the personal connection they create in their minds that keep them coming back to us. Now, you might think it’s because we create a great relationship through our product and service, but that’s not where it starts. It starts when they feel a reason to pick up the phone, or send an email.
How many people do you know that always vote for the same party regardless of the candidate? Or always drink the same coffee, even though the coffee sucks?
Or drive a Ford?
Or drink Coke?
What’s the first thing that pops into your head when you think of these brands?
Any 80’s kid can remember the polar bear commercials at Christmas. Is there a more heartwarming image?
The best way to attract new customers is by creating an emotional connection with them immediately when they discover us. The easiest way to do this is to draw them in with a story.
But it doesn’t have to be super complicated. One of the best “stories” I can recall in advertising are the Motel 6 ads. “I’m Tom Bodett, and we’ll leave the light on for you”.
This is such a simple story, but makes us think of images of home, being a road weary traveler, and being welcomed by a friendly face.
It doesn’t have to be a massive theatrical production, it just has to be good.
Our guest on this episode of “Guide 2 the Grind” understands this completely. Wayne Stanley works with fortune 200 companies and small businesses to help them understand what story they should be telling, and how to get that story out there. This conversation was truly a treat for me, and I’m super glad I had the chance to meet Wayne.
No matter what business you’re in, you need to hear this!
www.guidetothegrind.com
Have you ever had a great business idea and thought “If I only had the money”?
We all know there are ways to get early stage business funding, but few actually understand it. I would definitely include myself in that category.
Our guest on this episode of “Guide 2 the Grind” is Nathaniel Harding, the Managing Partner of Cortado Ventures.
Cortado is a Venture Capital firm in Oklahoma City. They specialize in early stage development funding and have a whole range of programs for educating and coaching the CEOs they work with.
Nathaniel walks us through both sides of the Venture Cap world from business selection and underwriting, to investor expectations and returns.
If you’ve ever thought about starting a business that needs Venture Capital, this is a conversation you don’t want to miss!
www.guidetothegrind.com
An interesting realization that I’ve had while trying to craft this is, it’s not easy to talk about charity. In fact it’s downright uncomfortable.
There’s a lot of psychological factors at play wherever you are on the spectrum of “being charitable”. If you don’t give, you may feel guilty that you don’t. Or you don’t give enough, or if you do give enough you don’t want to talk about it, so you don’t seem like you’re being “holier than thou”.
Regardless which bucket we fall into, we can all agree that giving is important. Whether it’s time or money, there’s folks a whole heck of a lot less fortunate than us out there.
But where do you start?
What are the tax benefits?
Our guest on this episode of “Guide 2 the Grind” is John Bromley, CEO of Charitable Impact. Charitable Impact is designed to help individuals and companies make more knowledgeable charity contributions without having to do all the research themselves.
As well, they help folks realize the tax benefits without having to commit to a specific charity right away. It’s a really interesting model, and one that’s helped facilitate $1.2 billion of donations since its inception.
www.guidetothegrind.com
Have you ever thought about a second career?
I know, it’s hard to think about giving up what you’ve spent so many years doing, but there comes a time where lifestyle begins to trump security.
For corporate executives looking to transition into ownership, investors who understand passive (or at least semi-passive) income streams, or the average person looking to make a change and build something for themselves, franchising may be a great option.
In recent months I’ve had my eyes open to new franchising models, and different ways of looking at the strategy as a whole.
To me, the first thing that comes to mind is burger chains and coffee shops, but that’s not what it is anymore. There’s a whole world of businesses out there that have far better profit margins than food, and allow you to spend less time working on the business that something like a fastfood chain would require.
Guiding us through the “matchmaking” process on this episode of “Guide 2 the Grind” is the top franchise coach in the US, and founder of the Daly Coach, Kim Daly. Kim has been featured in a ton of media, including USA Today, and is recognized as the foremost expert in franchising today.
You don’t want to miss this!
@thedalycoach
www.guidetothegrind.com
When I first got started in sales I was encouraged to start reading and listening to personal development greats like Jim Rohn and Zig Ziglar. I remember how much this expanded my mind in the first few years. I learned new philosophies for business and life, but one quote always stood out to me.
“When the student is ready, the teacher appears”
To me it was a saying without meaning. Because it hadn’t been proven to me… yet.
Looking back now I can see that I’ve been blessed with many teachers along the way. Some taught me a lot, some a little. Some stayed for years, and some faded away almost as quickly as they appeared.
But I learned from all of them.
At this stage in my life I still listen to the teachers I had early on, but their messages aren’t mind blowing as they once were, for the simple fact that I’ve applied most of what I’ve learned from them. Yes I’ve grown as a person because of it, but I was ready for the next level.
That’s when a new teacher appeared.
Our guest on this episode of “Guide 2 the Grind” is Archie Merigold, the epitome of an entrepreneur. In the 80’s he gave up a good job to start a business. After finding massive success with that he began investing in real estate and eventually got into land development.
I’ve had the good fortune to connect with Archie in my personal life, and I’m learning a ton from him. Trust me when I say you don’t want to miss this interview.
www.guidetothegrind.com
The hardest thing about being an investor is learning. For the average Joe venturing into the world of investing to say that it’s overwhelming is a huge understatement. I know for myself I’ve been in the financial world for over a decade, and I still learn about new strategies and tactics all the time. It’s one of the reasons I’m so grateful we have Guide 2 the Grind.
We get to meet so many brilliant professionals.
As we wrap up 2023, and the 3rd season of doing the show, I’m super excited about the coming year. We’ve learned so much this year, and have some pretty big things planned for the near future.
… and one massive announcement I’ll get to after I talk about our last guest for season 3.
Kyle Mowery is the Managing Director of Grizzly Rock Capital in Chicago. They’re a small cap equity fund that invests in publicly traded companies. On this episode of “Guide 2 the Grind” Kyle talks about his due diligence process, where he’s seeing opportunity in the market right now, and how you can mimic his process no matter what level of investor you are.
Happy New Year!!
Oh yeah… the big announcement…
Jonathan and I have been working for the last few months on our brand new “MORTGAGE HACKER” course. We’ve taken all of the best strategies we’ve learned and made them accessible to everyone that either owns a home, or is thinking about buying one in the near future.
We show you how “Hack Your Mortgage” by using a few key strategies the bank won’t tell you about. You’ll learn the 3 secrets of how to keep your payments low, and how to be debt free in half the time.
We’ll be hosting a LIVE event this coming Wednesday night at 7pm. Best of all… it’s absolutely FREE.
All you have to do is go to www.guidetothegrind.com to learn more about it, and get registered for the event.
Have a great New Year and we’ll see you there!
www.guidetothegrind.com
As we approach the end of our third year doing this podcast, I look back on all of the great guests, and the multitude of strategies they’ve shared. We’ve met some incredible people, and learned so much.
But none of them have been able to make investing as simple as this guest.
Most of the time we’re speaking with folks who’ve been in the investing world for a decade, maybe even two, but never have we had the opportunity to chat with someone that has the breadth of knowledge you can only acquire from over 40 years in the business.
In the last 4 decades we’ve seen both the best and worst of times. The market cycles have ebbed and flowed more than a couple of times, and understanding what happens at each stage of those cycles is paramount for investors today.
Admittedly you only need to study the history of these cycles to understand them, but there’s one thing that can only be achieved by living through them… clarity.
Clarity can only be gained through proper perspective, and it takes an intimate knowledge of all of the information available to have that perspective.
Steve Selengut is a man that’s been in the investment business for over 4 decades. He’s seen the rise and fall of markets, the forging of new ones, and protected his clients through all of it. We’re fortunate to have him as our guest on this episode of “Guide 2 the Grind”.
Have a listen to this fascinating episode as Steve breaks down his strategy for investing in close ended funds, and totally blows my mind with just how simple investing really is.
(BTW… this is our most popular episode so far!)
www.guidetothegrind.com
It’s refreshing in an era of Robin Hood pump n’ dumps, Forex Traders, and so called Crypto experts, to hear someone say that preservation of capital is far more important than making a quick return.
Chris Vermeulen is a Technical Trading expert who teaches his students the slow and steady path to financial independence.
Ever since Chris’ dad lost everything they had in a land deal gone wrong, his focus has been on building a strong financial foundation that will last long after he’s gone. Creating a true legacy for his kids and beyond.
Have a listen to how Chris approaches investing in today’s market on this episode of “Guide 2 the Grind”.
www.guidetothegrind.com
“Improvise, Adapt, and Overcome”
- Clint Eastwood, Heartbreak Ridge
No guest we’ve had on the show embodies this more than our guest on this episode.
Gary Hibbert is a real estate entrepreneur which I can say from personal experience has a massive heart, and truly cares about other people’s lives.
I first met Gary through a random phone call back in 2015. Since then I’ve had the great pleasure of attending his meetups, learning from him and his team, and breaking bread together.
Gary’s journey to success has not been an easy one. But with every challenge he’s found a way to “Improvise, adapt, and overcome”.
Have a listen to this extremely candid conversation with one of the principled people I’ve had the pleasure of meeting in the investment world, Gary Hibbert, on this episode of “Guide 2 the Grind”.
www.guidetothegrind.com
As we approach the end of our 3rd season, I look back and think about all the guests we’ve had. Some have been back a couple of times… some never showed up the first time.
But on this episode we have my all time favourite guest, not just because he’s an expert in the Crypto space, but because he’s become a true friend, even though we’ve never met in person.
The more time I’ve spent with Zach, the more fascinated I am by his faith, knowledge, and depth of character.
Yes it’s a bit of a bro-mance.
And one of the reasons I’m so grateful to connect with such an abundance of great guests on our show.
Have a listen to the conversation we have with Zach Morrow, covering everything from Crypto to mindset. It’s one of my absolute favourite conversations. (Yes I know I say that a lot, but I mean it every time)
Check out this episode of “Guide 2 the Grind” with Crypto expert Zach Morrow.
www.guidetothegrind.com
Every once in a while we have a guest that has so much great insight to share that JT and I barely have to speak.
Preston Brown is one of those guests.
He’s a serial entrepreneur with over 18 operating businesses, a college drop out, and makes nearly $200M dollars a year. So he’s got few insights to share. Lol
Have a listen to our conversation, or should I say, lesson with Preston Brown on this episode of “Guide 2 the Grind”.
www.guidetothegrind.com
We all know the market is terrible, the sky is falling, and we should all probably just give up on trying to get ahead.
…at least if you listen to the news.
But there’s opportunities in every cycle of the market, and it’s no different today. Think about the “go-go 80’s”. They were some of the most prosperous times the western world has ever known. Yet mortgage interest rates were in the high teens and low twenties.
How can that be?
Are we looking back on those times through rose coloured glasses, or is it that higher mortgage rates don’t mean the end of the world?
Yes there are absolutely some folks that are gonna get screwed over by the rates. And yes there will be some folks that can’t afford to stay in their homes. But the antidote to the poison being spewed by most major news outlets is simple…
…education.
See the market is cyclical. About every 12 - 15 years the market corrects. Those that are educated know this and can prepare for it. Those who don’t either seek education, or get swallowed up by the changing tide.
One entrepreneur that stands out in this market is our guest on this episode of “Guide 2 the Grind”. Shannon Robnett has been in the real estate world as a developer, realtor, and syndicator of investments for nearly 30 years. He’s seen how the market cycles shift, and he’s been able to keep his head above water, and the heads of his investors, through all of it.
Have a listen to some of the strategies Shannon uses to underwrite his projects, and the education he shares with his investors to keep them growing toward their goals no matter what the market is doing.
www.guidetothegrind.com
One of the biggest problems we’re seeing right now is that buyers just don’t qualify for enough money to buy the homes they want. Banks have really tightened their lending restrictions, and the stress test isn’t giving them enough buying power.
But is the market really as bad as everyone thinks?
Truly, I don’t know.
Here’s what I do know… Everyone hates change, and nobody is happy with the way it is.
At the root of it, that’s what’s happening right now, change. It doesn’t mean the market is bad though. What it does mean is that we’ve gotten used to ridiculously low mortgage rates, and they couldn’t stay that way forever. They had to rise at some point.
The biggest problem is the cost of housing. Houses are just too damn expensive for most to afford. We simply aren’t producing enough homes to keep up with our immigration. Not to mention the international students and migrant workers that come here looking for a place to live.
So… all this being said, how can folks get a leg up in this market?
There are always going to be opportunities in any market, and that’s exactly what we’re talking about on this episode of “Guide 2 the Grind”.
The Equity Assist Program is helping first time homebuyers qualify with a 20% down payment.
It’s a co-investment program that’s counting on the appreciation of the homes they co-invest on, so there’s no extra monthly payment, and folks are saving on insurance fees and even land transfer tax.
Sounds too good to be true right?
That’s exactly what I thought when I first heard about it too, but have a listen to what Jonathan’s discovered and I’m sure you’ll be as fired up as I was.
www.guidetothegrind.com
When most people think of franchising its fast food joints and coffee shops that come to mind first. And anyone that's owned this kind of business will tell you, it's not easy, and it's not a 9-5 kinda lifestyle.
But what if there are franchises that offer passive, or at least mostly passive income?
On this episode of "Guide 2 the Grind" we're talking with Bob Bernotas. Bob helps folks create an exit plan from their corporate backgrounds, and buy franchises that offer mostly passive income.
Have a listen to this different way of looking at franchising.
www.guidetothegrind.com
It’s no secret that homeownership is becoming out of reach for a lot of first time homebuyers.
But does that mean they’re going to have to rent forever?
Our guest on episode 128 of “Guide 2 the Grind”, Franco Perez, proves that there’s always opportunity in real estate, no matter what the market is doing.
By shifting his client’s focus away from buying their "dream home” right off the bat, and being house poor, he’s able to show them that there’s a far more affordable way to start building equity.
Mobile homes.
We’re not talking about the stereotypical images that most folks conjure up when you mention trailer parks. These are purpose built mobile home parks that are already central to most major cities. And there’s a ton of opportunity for first time homebuyers to get into the market.
This strategy helps folks start building equity years sooner!
Don’t miss this fascinating conversation.
www.guidetothegrind.com
When I first got into sales (well over a decade ago now) I remember my mentors talking about building relationships. I remember learning all sorts of “tactics” to endear myself to people, but it always felt fake. Deep down I knew there was more to it.
Relationships come down to one very simple concept: caring about other people.
John Maxwell said it best when he said “People don’t care how much you know, until they know how much you care.”
This is a hard and fast rule that I choose to live my life by, and it’s not easy. Relationships take work. You need to answer the phone when someone needs help moving. You have to listen to people’s problems. And you have to really want to do it. Even when it sucks.
But the rewards for your effort are exponential.
I learned this a few years ago when I moved out of Toronto back to my hometown. Toronto was great, and I have some incredible friends there. But we were always so busy that we rarely got a chance to see each other.
Moving back to a slower pace of life, and being surrounded by family showed me just how much it means to have relationships in my life.
Money is great, trips, boats, and all of the luxuries that it can afford. But it’s the relationships you have, and the depth of those connections that make life truly rich. (Like chocolate cake, not the money kind)
Our guest on this episode of “Guide 2 the Grind” is the embodiment of this ethos. Rob Dundas is a Realtor in the Niagara Region, and he runs his business heart first. Everyone one of us can benefit from the way Rob runs his business, and his life.
www.guidetothegrind.com
Ya know, every once in a while you meet someone that’s so impressive, and such a high achiever, you can’t help but be in awe of their personal power.
On this episode of “Guide to the Grind” we sit down with the CEO of Highness Capital, Amana Manori.
Amana is a lawyer, an exempt market dealer, and manages up and coming artists. The story of how she moved out on her own at a young age, and worked her way up to owning two very successful businesses is nothing short of remarkable.
You’ll definitely want to have a listen.
www.guidetothegrind.com
In a world of divided opinions, and people unwilling to hear the merits of their opposition’s arguments, more than ever, the ability to make a new decision based on new information shows a certain level of maturity, and intelligence.
That’s exactly what happened to me after speaking with this week’s guest.
For years I’ve thought that trading in stocks was a risky and pointless endeavour. After all, there’s no physical asset backing them up like there is with real estate or gold.
I’m happy to say, I couldn’t be more wrong.
Our guest on this episode of “Guide 2 the Grind” is stock trading expert Jason Brown.
Jason built up a six figure trading account in just ten months, by using his student loan. Some would say this was high risk, but Jason is happy to prove those folks wrong. He’s completely self-taught, and now shares his strategies on channelling patterns, options trading, and shorting stocks with anyone that wants to learn.
You can find Jason at www.thebrownreport.com, or have a listen to this episode to learn more.
www.guidetothegrind.com
My favourite thing about doing this show every week is, I get to interview really intelligent people that are using some pretty avant garde strategies to help people make real returns on their money.
This week however, I totally get to geek out on our guest’s strategy.
I’ve been passionate about pooled mortgage strategies for a long time. I believe it’s the best chance the average person has to make a decent return in a truly passive real estate investment, while having it secured against a real asset - property.
Heather Dreves is the Director of Funding for Secured Investment Corp, a US based company using pooled mortgage investments to create steady, better than the market, returns for their clients.
On this episode of “Guide 2 the Grind”, we talk with Heather to understand the differences between the Canadian and US pooled mortgage funds, and folks are using their registered funds to take back their returns tax free. You can’t afford to miss this conversation.
Also... here's a link to Heather's free book - Download the Free Book
www.guidetothegrind.com
With all the changes in the market lately there’s been a surge of folks seeking private financing. The trouble with that is, the private lending space is way more vast and diverse than most people realize.
There’s everything from highly regulated mortgage investment entities, lawyers, and somebody’s Uncle Joe who all seem to be in the arena.
But they are all VERY different.
On this episode of “Guide 2 the Grind”, Jonathan and I have an in depth conversation about the private lending world, and how to make sure it’s the right solution for the right borrower.
www.guidetothegrind.com
Every once in a while we’re fortunate enough to have a guest that takes us outside the limits of our normal conversations and thinking. This week’s guest is one of those.
We had a great conversion with Terrie Schauer, author the #1 Best Selling book, “Mindful Landlord”.
Terrie is a 3 time Brazilian Jiu Jitsu World Champion, and holds a PHD. She maps out for us the mental processes she used to accomplish the achievements, and how she now applies them to her REI business.
Have a listen to this unusual, and enlightening conversation on this episode of “Guide 2 the Grind”.
www.guidetothegrind.com
Hey |FNAME|,
In a changing market it's important folks tend to look at more alternative investment solutions. Ones that can ride the ebbs and flows of the market, while creating a predictable return.
But where do you look?
Maxwell Nee is our guest on this episode of "Guide 2 the Grind". He specializes in luxury investments in wine and whiskey. A truly recession proof asset class, that until now, hasn't been widely available to the general public.
You'll definitely want to listen to this captivating conversation as we explore the most interesting, and tasty, investment class we've had the privilege of learning about in the three seasons we've been doing the show.
www.guidetothegrind.com
No matter what’s going on in the market, someone is always making money. As the market ebbs and flows, what was making money may not be now, but that opens up doors in other areas.
But how do you find them?
There’s no real trick to it. It takes a lot of time and effort to study all the different facets of the markets you invest in. Real estate happens to be my area of study, but even when crypto took a nosedive before Christmas, I know people making 15 - 25 percent returns during a crashing market.
The secret to knowing where the opportunities are is hard work. Yours, or team up with people who’ve already done all of the leg work for you.
Today we sit down with one of the top Realtors with Condos.ca to figure out exactly where the best timing in the market is right now… and it’s surprising.
Don’t miss this episode of “Guide 2 the Grind” with Marlow Singh.
www.guidetothegrind.com
By now we’re all aware of the massive advancements that have been happening in the Artificial Intelligence space. Whether you’re afraid SkyNet is about to come online, or a college student using Chat GPT to write your next term paper, we know that AI is changing the world in a massive way.
One of the most fascinating fields to me is video content.
For years I’ve been using a system I call “Creating My Client” to create an avatar of my ideal client before I ever start a marketing or content campaign. It’s not a quick process.
I get really deep into the psychographics and demographics of the ideal person I want to work with. I give them a name, a family (or not), a backstory, and really try to learn the psychology of the person I most want in my business. This helps me make sure that every piece of content I release stays on message and speaks directly to that person.
This is mostly because it’s darn near impossible to know what someone is thinking when they’re watching a video... or reading an email.
Until now…
EmotionTrac is a new AI based software that’s changing the game completely!
This software, after obtaining permission of course, uses the front-facing camera on their test audience’s (150M+) device to read the micro expressions on their face, and measure engagement with videos. It uses something called FACS or the Facial Action Coding System developed by Paul Ekman to read the small releases and contractions in our facial muscles.
It’s really fascinating stuff, and our face really does give away our every emotion. It’s just happening so fast that we aren’t aware that we’re registering it.
Realtors, lawyers, filmmakers, marketers, and dozens of other communication based industries are using EmotionTrac to get real emotional data about their video content before they put it to work in their respective fields.
Today we sit down with Aaron Itzkowitz, the CEO of EmotionTrac. Check out this episode of “Guide 2 the Grind”, and have a listen to how this software could revolutionize some of the biggest industries in the world.
www.guidetothegrind.com
It seems all you hear about the real estate market lately is doom and gloom. Every time you turn on the news you’re being bombarded with messages that the sky is falling, mortgage rates are higher than they’ve been in years, and the whole “bubble” is about to collapse.
But it’s a huge load of malarkey.
The truth about these changing times is, yes some people are going to feel real pain in the very near future, and for others it couldn’t be a better time to buy. The most recent buying frenzy happened in no small part because of the historically low interest rates. Everyone wanted in while the lending market was cheap. But those who didn’t get properly educated before signing up for the largest purchase of their lives are going to feel the pain of higher rates… unless they prepared for future possibilities.
See, no one should be buying a home at the top of their affordability bracket when the rates are as low as they’ve been. Even with the “stress test” on household income a lot of people are feeling the crunch of variable rates over the last six months, and they’re now extremely cash poor with mortgage payments in some cases being double what they were less than a year ago.
For folks in that position I fear there’s no easy answer, aside from selling their current home and downsizing, or moving to a cheaper region.
However… for the first time in years we’ve seen a normalization in the real estate world. Yes sales have slowed, but only back to a point of sanity. Buyers actually have time to shop and make decisions now. Let’s not forget as well that even though rates are higher, in a lot of areas home prices have come down, so the math works out to be more or less the same.
At the end of the day mortgage rates aren’t nearly as important as we’ve been led to believe they are. A quarter of a percent difference on rate equates to maybe a $15 or $20 a month difference on your payment. It’s not huge.
What really matters though are the conditions. What’s the price if you have to break your mortgage for some unseen reason? Is your mortgage portable? What’s your pre-payment option? If you don’t have the right conditions for your unique situation, and don’t have the right contingencies in place, it could cost you waaaay more than a rate that’s gone up a couple of percent.
Here to talk all about what’s going on in the mortgage market on this episode of “Guide 2 the Grind” is the Chair of Mortgage Professionals Canada, Veronica Love. As the top dog of Canada’s mortgage industry association she has first hand knowledge of what’s happening in the sector, and directly consults with government policy makers.
You’ll definitely want to hear insightful views on what’s happening in the market.
www.guidetothegrind.com
First things first… Happy New Year!
We’re kicking things off right for 2023.
This single most important skill to master in business, and life in general, is creating strong and meaningful relationships.
Though networking isn’t something you can get a diploma in, some folks seem to possess PHD level abilities in the cultivation of power connections.
I assure you though, it’s no accident.
This is a learned and practiced skill. One that’s far too often overlooked.
Our guest on this episode of “Guide 2 the Grind” is a Master at the art of creating relationships.
I had the good fortune to meet him at an event back in 2016, and thanks to his skills we’ve become friends since. Tom Chenault is one of the most successful network marketers on the planet, with over 1,000,000 distributors in his organization. He hosts the longest running home based business radio show in the world, and has a massive, commanding sphere of influence.
You absolutely need to hear what Tom has to share.
www.guidetothegrind.com
Right now the media is flooded with all sorts of experts giving their opinion on the market and what’s happening. Some say it’s good, some say the sky is falling. The one thing nobody seems to be talking about though is the psychology behind what's happening.
Though people generally only think about numbers when they picture the markets in their minds, behind all of those numbers are people, and those people are making choices based on their current psychology.
I’m talking about behaviour and the thought processes behind that behaviour.
So what makes someone invest or not invest?
There’s all kinds of sub-categories we could explore, but at the end of the day, it all comes down to fear. See, we like to think that we’re rational and logical beings, but that typically only comes into play once the decision is already made based on emotion. Most people “go with their gut” and justify their choice later based on their view of the facts. (Or at least the story they tell themselves)
Either you fear missing out on an opportunity, or fear losing your money, which is in turn, losing the opportunities that money can afford.
Your definition of “risk” is the deciding factor.
And we hope that that risk doesn’t lead to the most self-destructive emotion of all… Regret.
Have a listen to JT and I on this episode of “Guide 2 the Grind” as we explore some of the behavioural psychology behind investing, and who the right type of investor is to take advantage of current market conditions.
www.guidetothegrind.com
Despite what the media is propagating, there hasn’t been a better time in recent history for first time home buyers to get into the market.
Yes interest rates are higher than they’ve been in well over a decade, but purchase prices have also come down massively. This dichotomy of higher interest and lower pricing means that the affordability has remained the same, but the barrier to entry is significantly lower.
On this episode of the “Guide 2 the Grind”, we’re talking with experts in the Greater Toronto housing market, expert Realtors Belinda Lelli and Suzanne Stephens.
Their opinion on the state of the market is entirely different from what’s been in the news as of late. You definitely need to hear this engaging conversation.
www.guidetothegrind.com
Have you ever heard of the concept of “Infinite Banking”?
I certainly haven’t. That is until we had Russ Morgan of “Wealth Without Wall Street” on the show.
Russ and his team specialize in the re-education of most folks’ thoughts around money and how they view investing. They’re strategies are simple, yet revolutionary in their ability to create truly passive income.
Russ asks, “What percentage of your income today is truly passive? Is it ten percent, fifty percent? It’s only when our passive monthly income is equal to our monthly expenses that we become financially free.”
There’s a ton of value in today’s episode of “Guide 2 the Grind”, with Russ Morgan.
www.guidetothegrind.com
It’s no secret that we’re in changing times. Economically, socially, and politically the world is pretty darn uncertain right now. The one thing I know however is when the world doesn’t know what’s going to happen next, there’s always opportunity.
Whenever there’s a time downturn in the economy, there’s also problems that need to be solved. And if you’re the one that comes up with the solutions to those problems, there’s a lot of money to be made. After all, any great business is just offering a solution to a problem, or in different terms, fulfilling a need.
The trick however is being nimble enough to pivot.
See, real estate is always a good investment long term. The trend has always been upward over a long enough period of time. But in an evolving market, what’s the best real estate strategy to get behind?
Unfortunately there’s no easy answer. The amount of statistics and data needed to understand all of the options available is overwhelming. Where do you even start?
Thankfully there are people and companies out there that specialize in doing all of that leg work. And the one commonality that I see with all of them is that they focus on one strategy and completely master it before moving on to anything else.
Our guest on this episode of “Guide 2 the Grind” is a Principal at VanWest Partners in Denver, Colorado, and he’s a textbook example of someone that has mastered his niche, knows the metrics inside and out, and truly has his finger on the pulse of the market.
www.guidetothegrind.com
You know, when I was a younger man, I thought insurance was the most boring subject on the planet. I always harkened back to the line in John Prine’s “Illegal Smile”, “all my friends have become insurance salesmen”.
But I didn’t truly understand just how powerful the right insurance game plan can be.
See, making money isn’t just about working hard and hoping to get rich. We’re taught that there’s virtue in hard work, and I’m sure there is, but hard work alone won’t make you wealthy. I know plenty of really hard working guys that are broke.
It takes a plan and a whole butt load of discipline to break through the income barrier of “financially free”. Then, once you’ve broken that ceiling, It's about protecting what you have and creating a legacy for the generations that come after you.
Insurance is the key player in that stratagem.
On this episode of “Guide 2 the Grind” our good friend, Financial Advisor, Melanie (Money Mama) Rousseau is joining us to talk about some of the lesser known, more advanced strategies available in the insurance world. You need to hear what she has to say.
Positioning is one of the most important, yet least examined, parts of human interaction.
Every time we pick up the phone to call a prospect, or try to convince our significant other to do what they don’t want to do, or even when a child is asking for something from their parent, someone is the “F-U” or “Alpha” position, and someone is in the “Beta” position.
Let’s take a look at this in the simplest of terms, a child asking their parent for something like ice cream when it’s getting close to dinner time. The parent is in the Alpha position, because they have something the child really wants. Now the only way that the child is able to convince their parent to give them ice cream before dinner, is to give the parent something they want in return.
Kids are the best at this by the way, because they don’t have the fear of what others may think to hold them back. If being cute doesn’t work, they start to ask “why”, and the inevitable “because I said so” comes next. Depending on the child and the parent relationship this can escalate to crying and yelling, and temper tantrums… until one side gives in.
Here’s the thing, the struggle only occurs when the Beta side (the child) isn’t getting what it wants. So they try to bargain, then deploy emotional tactics, then finally launch an all out assault on the senses with their temper tantrum in an effort to figure out something that the Alpha side really wants. In a lot of cases the Alpha side gives in because they’d rather have peace and quiet, and the ice cream seems a fair exchange for that.
Let’s flip this and apply it to a sales situation. A lot of sales people, especially newer ones, think that the prospect they’re calling is in the Alpha position. I mean let’s face it, we’ve all had those crappy cold calls where someone was super rude, or downright mean. (Back to those childhood tactics.) But a great salesperson knows instinctively that they’re in the Alpha position before they ever pick up the phone.
Here’s why… belief.
If you don’t believe that what you’re selling is the best damn sprocket that's ever been produced in the history of sprocket production, then you need to find the best sprocket maker and go work for them. If the product or service you sell isn’t the best there is, at least in your mind, and doesn’t provide the most value for the customer, then there isn’t much point in selling it.
But let’s say you truly believe that it is, wouldn’t you want people to know about it?
In fact, wouldn’t you be doing the world a disservice by not letting your potential customers know about it? Wouldn’t they love to save money, save time, and look great doing it?
That belief alone puts the sales professional in the Alpha position long before the prospect is ever contacted. It’s a solution to a problem they have, and you’re simply letting them know that you can solve it for them.
It’s funny how when problems are made apparent, the solution becomes more valuable than money.
Here's an example… you know you should do regular maintenance on your vehicle, but you’ve been putting off an oil change for a while. Then, the car breaks down. You were too busy or didn’t have the money to get the oil change done, but now that the problem has come front and centre, you figure out how to come up with the extra money to get the car fixed, and the oil changed while it’s there.
A great salesperson knows they’re in the Alpha position right from the beginning of the call, and helps the prospect realize they’re in the Beta position by being great at understanding their prospects' problem, and showing them how they can fix it.
Do you listen to the news?
Years ago one of my mentors taught me to go on a “low information diet”. I was a junkie too. I’d get up in the morning, turn on the computer, and pull up the local 24 hour news channel. I felt so plugged in…
… and stressed out.
Do you know that when 9/11 happened, people halfway across the continent were getting treated for PTSD, even though they were nowhere near the towers when they collapsed? They saw the event broadcast so many times, over and over again, that it affected their mental health.
News today has become a competitive bloodsport for your attention. The more doom, gloom, grime, and gore they can show in ultra high definition, direct to your living room, the better.
One of the most poignant examples of this as of late, is the rise in interest rates. If you’re listening to the news, it’s armageddon.
But what are the people actually in the trenches doing the work saying about it?
That’s exactly why we brought on one of our good friends, expert Realtor, Andrew McAllister, to tell us what’s really going on in the world of real estate. Not from some talking head on TV, but from a super successful professional who’s out in the market every day.
Get your information from a true authority in the space, Andrew McAllister, on this episode of “Guide 2 the Grind”.
Times are getting a wee bit crazy.
Inflation is stupid, gas prices are outta hand, and interest rates are on the rise. If you listen to the news… the sky is falling.
Are we in a time of flux?
Yes.
Is it the end of the world?
Of course not.
No matter what the financial climate, there’s always going to be opportunity when there’s change. Yes there’s a whole lot of people that are going to be behind the financial 8-ball in the next little bit, but not everyone.
See the problem lies in doing what everyone else is doing.
Most people have no strategy to adjust to times of flux. The worst thing you can do is nothing. Hoping it gets better ain’t gonna work, and doing what you’ve always done is not going to get you the same results it used to, when the world is changing around you.
So what’s the answer?
A better strategy.
You see, Jonathan and I knew this change was coming. It was predictable if you knew what to look for. We didn't know when, but we knew it would come. When times of rising interest rates happen, people get cash strapped, and in dire circumstances can even lose their houses. But this doesn’t have to be the way things go down.
We’ve been quietly working on a system to show folks just like you, how to pay off their mortgage in half the time, and save HUNDREDS OF THOUSANDS OF DOLLARS in the process. (That doesn’t even include the equity they build while they're doing it.)
You absolutely need to listen to this week’s episode of the "Guide 2 the Grind” podcast. Jonathan talks about this Mortgage Mastery strategy, and how you can make the bank’s rules work for you.
Check it out here.
Get your FREE VIP ticket here www.eventbrite.ca/e/366006544427/?discount=VIP
Every now and then someone close to me does something so extraordinary that I’m both humbled, and honoured to call them my friend. Today’s guest is one of those people.
Melanie Rousseau works in the mortgage and life insurance fields, she’s a master networker, has one of the best smiles you’ve ever seen, and is a single mom to two beautiful kids.
You’d think that would be enough to keep her busy, but Melanie also has a massive heart and when she was called to called to serve, she set everything aside, and made the decision to help her friends who've been working with Ukrainian refugees fleeing into Bulgaria.
Warning… this episode is a bit of a tear-jerker, but you absolutely need to hear this harrowing tale of human compassion and connection, on this episode of “Guide 2 the Grind”.
One of my all time favourite sayings is a quote by John Maxwell that reads “None of us is as smart as all of us”.
We’re all susceptible every now and then, some of us more now than then, to believing that our opinions are facts. And there’s nothing that causes more conflict than two sides that absolutely know they’re right and that the other side is wrong.
Back when I used to work in the film business I had an opportunity to learn from a very well established Producer. I’ll always remember something he told me about making movies. He said that he never wanted the Writer, the Director, and the Producer to be the same person. You always get a better product when there’s more people that have creative control.
I do my best to think like this all the time. I’m always open to learning about new ideas and paths to making the world a better place, but like everyone I’m sometimes a slave to my own opinions…
… and I love when I’m wrong.
Everybody knows somebody that won’t shut up about Crypto.
This is probably one of the reasons that it’s taken me so long to spend any sort of real time learning about it. Kind of a “I don’t hate the band, I just can’t stand their fans” type scenario. But when the right person, with the right track record, takes the time to explain it, we all tend to listen with different ears.
We loved our first conversation with Zach Morrow, the VP of Customer Relations at Boron Capital, so much that we had to have him back and take a much deeper dive into the realm of CryptoCurrency.
This hedge fund is taking steps to create some of the “gold standards” in the future of the Crypto investing world, and they’re doing it in a huge way. Have a listen on this episode of “Guide 2 the Grind”
Every time we speak with Zach, it just leads to more questions, and I have to say… I’m very happy to learn just how wrong I was about the Crypto investing world.
I believe gratitude is one of the most powerful mental states that humans can achieve. It’s only when we take time to truly appreciate where we are in this moment, and the journey we’ve taken to get here, that we understand how much we’re capable of.
So from both Jonathan and myself, I want to say THANK YOU.
When we started producing content (Real Investment Property Income podcast), we really did it with the intention of having fun, and providing as much value as possible to anyone who took the time to listen.
Here we are a year and half later doing our 100th episode.
The first hundred have been an amazing journey. We’ve had some incredible guests on the show. We’ve laughed, we’ve cried, and we’ve learned so much from everyone we’ve had on the show, and from everyone that’s reached out to us along the way.
We’ve created some fantastic relationships both personally and professionally, and sadly lost one of my best friends along the way. (Trif Chaitas Eps. 51 & 52, rest in peace my brother) But through it all, what meant the most to us was you.
I’m so thankful for all the emails of encouragement and gratitude that we’ve gotten. Every time someone reached out to let us know they’re listening, and learning, and getting real value for the time they invest with us, that’s what’s really touched me along this journey.
So… with that… we’re expanding to bring even more value to you. Content has to evolve or it grows stale, so we’re bringing experts in other areas of success and investing knowledge. Along with this expansion, we’re changing the name of “Real Investment Property Income” to…
“Guide 2 the Grind - Money, Mindset, Momentum”
We had to take a minute to say thank you and express our gratitude, and we’ve got some great stuff lined up for the next 100 episodes.
and from the bottom of our hearts… Thank you!
Have you ever thought about raising investor capital?
This typically follows one of those “good problem” moments. You know the kind where a unique opportunity pops up, you don’t have enough capital to do it on your own, and it’s time to level up your investing career?
We've had some really great guests on the show over the past year and a half. We’ve spoken with hedge fund managers, developers, Realtors, all different kinds of investors, and many of them have had watershed moments in their careers where they were forced to level up and start using investor capital.
Out of all of those guests however, we’ve never had one teach us their formula for raising that capital…
...until now.
Marcin Drozdz is an active real estate investor, with an extensive background in private capital markets. He began his career quite young, and rose to the top quickly. Taking what he learned from those early years raising capital for other people, Marcin has created a step by step guide to raising Investor capital aptly named “How to Raise Capital for Real Estate - 5 Day Challenge”.
Geoff has actually taken the 5 Day Challenge and got huge results immediately.
There’s a high demand for Marcin to attend speaking events, he has one coming up in Toronto with Kevin O’Leary. He and his investor group own multi-family properties in the US, he runs the M1 mastermind group, and on top of all of that he’s a new father. I know you’re going to get a huge return for your time invested in today’s episode of the “Real Investment Property Income” podcast.
Check it out here.
One more thing, if you want to connect with Marcin, his email address is marcin@marcindrozdz.com
One of my favourite things about doing the podcast is all of the incredible guests we get to meet. We’ve met all kinds of fascinating people at different points in their journey as investors and entrepreneurs.
The most interesting part, to me, is the progression people have made on their path to where they are now.
Joe Evangelisti is no exception. He started out doing fix and flips… a lot of them.
He and his partner finally got to the point where they felt maxed out with where they were going, and needed to make a shift. That’s what led Joe to the storage space and the company he’s built around the lifestyle he was missing.
After all, what’s the point in building a successful company if it doesn’t give you time with the people you love?
Learn about Joe’s journey and his unique strategy on this episode of the “Real Investment Property Income” podcast.
What do you think of when you think about being by the lake?
For me it’s sepia toned memories of rope swings, family dinners, and endless summer afternoons.
... I can practically smell the BBQ as I write this.
One thing is for certain, if you’ve ever spent time living by the water, you understand the emotional pull that lifestyle has on you.
Scott Freerksen and Christine Mosier know this pull better than most. They’ve not only made it their lifestyle, but a massively successful business as well. This dynamic team has become the foremost authority on lakeside living in the US, so much that even Hollywood Location Scouts use their website and listings as a resource for shooting locations.
Chris and Scott are the total embodiment of the Lakeside Living ethos, using the “campfire test” for new partners to ensure that they attract the right people.
Learn how Scott and Chris intentionally create their reality, and shape the world around them with their philosophy, on this episode of the “Real Investment Property Income” podcast.
I remember when I first started in Real Estate, it was such a massive subject. The first couple of years were really about trying to piece together all of the different strategies, finding what I liked, and more importantly, what I didn't like.
Heck, let’s be honest….. Most of that time was spent just trying to learn the lingo and not look stupid when I was networking.
But a funny thing happens along the way when you’re intentionally seeking knowledge, you get it.
By being around the right people, learning the market you’re in, and really diving deep into areas of specialty, something magical happens, and you achieve what seemed so daunting in the beginning.
Today’s guest on the “Real Investment Property Income” podcast is a perfect example of that. Karl Krauskopf started flipping houses in his spare time, and now has a stable of investors with a big appetite for his project expertise. Karl’s value-add strategy around Seattle specific opportunities truly highlights the value of learning as much as you can about the market you’re in, mastering it, and expanding.
It’s all well and good to learn everything you can about investing, but what are the two most important things a person needs to learn?
Number one is easy… don’t lose money.
Number two is harder… get started.
Today on the “Real Investment Property Income” podcast, Geoff and I are talking about some of our experiences when we first started investing, and the key takeaways he garnered.
It’s funny, we don’t realize it as we’re growing, but looking back, you can certainly see that it’s been a long journey.
Well… this conversation took a huge turn from where we started out.
Zach Morrow is the VP of Investor Relations for Boron Capital, and a veteran of the Marine Presidential Security Force.
(Side note… I love that I get to meet people like this all the time!)
Boron is a real estate hedge fund down in Lubbock, Texas. That’s where the conversation began, totally normal, talking about their investing strategies, and how they assess their properties, and understanding how they acquire both the business and the property.
That’s when the conversation changed.
You see, Boron also invests in crypto, about which Geoff and I know very little.
I have to say, after this conversation, I can see why so many people are shouting from the rooftops about this technology. We really only started to scratch the surface of Zach’s knowledge of the space, and what he had to say was nothing short of mind blowing.
Heck, it even left Geoff speechless. (that’s very rare)
Listen to Zach Morrow educate us on the Crypto sector, and just some of the ways this technology is transforming everything it touches, on this episode of the “Real Investment Property Income” podcast.
Crypto is a far deeper subject that we could have imagined, and it truly does have the power to change the world!
So… you may need to hold on tight for this guest. We covered so much in an hour, and barely scratched the surface of all the things he’s achieved.
From writing books, to flipping houses, to building skyscrapers in New York City, to developing “horizontal skyscrapers”, and even performing stage magic, Ken Van Liew is getting every drop of “juice” out of life.
Ken has a massive amount of energy, an endless drive to help people, and so much going on in his world that it’s mind boggling. Yet Ken is absolutely in the driver seat, and truly living every moment with intention.
It’s absolutely necessary to give this episode of the “Real Investment Property Income” podcast a listen. The interview with Ken Van Liew is incredibly inspiring!
As a homebuyer, or an investor, we expect the professionals we hire to look after their area of specialty.
Realtors handle the purchase and sale… mortgage Brokers handle the financing…home Inspectors handle the inspection…
But what’s missing?
That’s a tough question to answer when you don’t know what you don’t know.
Due diligence is our responsibility as the one buying a property, but we need to know what to look for during the “DD” period.
You see, it’s not enough just to hire a team of professionals to help. All of the licensed professionals can be the best in their field, but there's always a chance for gaps to appear between their areas of specialty.
For instance… What is the zoning on the land?
It's possible that if the property isn’t zoned correctly, a lender won’t finance it.
All it takes is a small miscommunication, or a small gap in knowledge, to make a deal go south in a hurry.
On this episode of the “Real Investment Property Income” podcast, we’re talking about due diligence, and what to look out for when you’re buying a property. Whether you’re an investor, or buying your first place, you’ll want to take some notes during this one.
Have you ever had to start over?
I know I have.
Life is nothing if not unpredictable, and the financial, but more importantly, the emotional impact of a reset can be crippling. So how do you deal with it?
Today on the “Real Investment Property Income” podcast, Geoff and I share some of our personal experiences with starting over, and the strategies we've used to get through it.
Whether it’s the closure of a business, the ending of a relationship, an illness, or any other of the myriad challenges that life can throw our way, it never hurts to hear how others were able to combat the tumult that follows.
With Valentine’s Day just around the corner, the romantic in me can’t help but have one thing on my mind…
…credit
That’s right, not flowers, or chocolates, not dinners, or a night by the fire, but good ol’ fashioned credit.
I can already hear the comments popping up, “that’s not very romantic”, or “boy I’m glad that’s not my man”, but hear me out.
While romantic evenings, and intimate moments with your significant other are super important to keep the home fires burning, they’re only temporary. And what’s worse, if you do them too often, they aren’t nearly as special, it’s just human nature to take things for granted after a while.
I understand that credit isn’t very romantic, and it’s certainly not sexy, but… in the world we live in, at least here in North America, it’s integral to the long term success of any relationship. After all, what’s the most common argument that couples have?
Money.
In this episode of the “Real Investment Property Income” Podcast, Geoff and I are talking about everything from debt, to credit repair, to how to get a perfect credit score.
So, if romance makes me think about credit, and credit is one of the most important keys to keeping a relationship together long term, doesn’t that make me more romantic than most?
Happy Valentine’s Day,
Well… we made it. We’re celebrating our one year anniversary…
…a little late.
But better late than never.
Anyhow, we decided to revisit our most popular episode, and also the very first one we ever did, “Knowing the True Cost”.
I’m sure there’s some things we missed, and of course there’s a million different variables that affect the bottom line, but we did our best to cover all the costs associated with all types of lenders, including Rent To Own, and private lenders.
We also highlighted some of the pitfalls to look out for at every level of lender, on this week’s episode of the “Real Investment Property Income” podcast.
Today on the “Investment Property Income” podcast, we have one of our closest friends and business associates, David Hirsch, joining us.
David made the shift from Realtor to Real Estate Investor, and now owns four multi-family rental buildings in Long Beach, California.
His “Value Add” strategy is earning him some very comfortable returns, and he’s now in a position to re-finance and take equity out of the existing properties to purchase more properties.
Not only is he a savvy investor, but he’s also a great guy to hang out with.
It’s one of my favourite things in the world to see real estate investors finally take the leap from student to practitioner. When they finally take that step and buy their first investment property, it’s truly something special to watch all of their fears go away.
It’s not that they don’t have things that concern them, but it changes. The primary fear that causes people to hesitate is “What if I lose all my money?”.But the first thing that happens to new investors is their mindset shifts from “What if I lose all my money?”, to “How do I make this work?”.
It might not seem like much from the outside, but that fear keeps people locked in “Analysis Paralysis” for months, years, or sometimes forever.
I mean think about it, we all that friend or relative who’s told us something like,
“Ya know… I coulda bought that property way back in the ‘70s for next to nothing. Have you seen what it’s worth now?”
The worst part is, that’s a regret they’ve been playing over in their mind for decades, and it’s going to continue to play until the day they die. The fear of losing what seems like a minuscule amount now in comparison, kept them from taking action, and caused them to miss out on the benefit of owning that property now. A time in their life when that extra income would make a massive difference.
So how do you overcome that fear?
That’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast. Our first guest of 2022, realtor, investor, property manager, Bailey Kramer, got started in real estate investing just over a year and a half ago. He now owns 7 short term rental properties in different parts of the US, and did it all using other people’s money and experience.
The most fascinating part is he’s only 21, and doesn’t have a background in Real Estate. He decided that he wanted to learn. Found every meetup he could. Networked with as many people as possible, and no matter what was going on in the world, set a goal and is on track to achieve income independence by the spring.
Everyone needs to hear Bailey’s inspiring story.
As we work our way into the start of the year, something that’s on a lot of people’s minds is, “What the hell is going on with the economy?”
Canada’s inflation rate has hit an 18 year high at 4.7%, and it's almost double that for our neighbours to the south. Housing prices are skyrocketing, food has jumped massively in price, supply chains are stressed, if not breaking down entirely…
what does it all mean to me?
Well, this is a bit of a touchy subject for some, but I’m always reminded of what the great orator, Jim Rohn, used to say.
Whenever Jim was asked what he thought the economy would be like in the coming years, his response was always the same.
“About the same as it’s been for the last 10,000 years of recorded history.”
Human history has always been a mix of prosperity and poverty, turmoil and triumph. Some people blame the politicians, some blame the virus, some blame their neighbour’s dog. The fact of the matter is, when the winds start to blow in a different direction, you have to set a different sail.
It’s up to us to determine our direction, regardless of the wind that’s blowing.
For example, 2008 was one of the worst financial collapses in history. People lost fortunes, and businesses closed. Yet we marched on as a species.
In fact there are a lot of people who made fortunes during that time because they were able to pivot.
I think specifically of one friend that told me a story about how 2008 was the best thing that could have happened for him. He was working at the bank just after the collapse happened. He realized that his pay increases weren't keeping up with inflation and he was making less money every year. So he decided to start investing in real estate.
Right after the collapse you didn’t need a down payment to buy a home. This created massive opportunity to those who had set their sails to the changing winds.
Now, 14 or so years later, he runs a super successful real estate business with his wife, and he’s never looked back.
No matter what’s going on in the outside world, we all have the ability to pivot when things are changing, and that’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast.
I hope you had a great holiday season!
This time of year, as we all know, everyone is talking about setting goals, and making resolutions.
I’ve already accomplished one of my goals for the year. My goal was to go to the gym as much as possible… since all of the gyms are closed down again in my province… I got to go once, goal achieved!
I say that as a joke, and it’s also how a lot of people approach their goal setting. They make a bunch of outlandish statements about money, and health, and relationships, then a few weeks later, they’re right back to the same old habits, except they feel a little worse because they’ve let themselves down… again.
This becomes so much of a burden to some folk’s mental state, that eventually they quit setting goals all together.
So… is goal setting a waste of time?
Absolutely not.
We have to have direction that we’re moving in. If we don’t have our compass set to a point on the map, life gets stagnant. We, as humans, work better when we’re progressing toward something.
Here’s the trick, well actually it’s a two parter. First you have to know what it is you’re going after. It has to be specific, and based on real emotional anchors. It doesn’t have to be logical at first. After all, we make decisions based on emotion, and then justify them later with logic, don’t we?
The next part is breaking down the end goal by time and effort needed. Here’s what I mean, let's say your goal is to make $10k extra this year. Break that down by weeks, months, and days. $10k is a big number to think about. But, if you break it down, that’s only earning an additional $27.40 a day.
Is it easier to figure out how to make an extra 25 bucks, or 10 grand?
On this episode of the “Investment Property Income” podcast, Geoff and I take a deep dive into this very different, very attainable system of setting your sail for the year.
There’s all sorts of so-called “gurus” out there that talk about how to keep a positive mindset, but very few talk about what happens when you lose.
If you play the achievement game long enough, you’re bound to lose at some point, so how do you deal with it?
That’s exactly what we’re talking about on this episode of the “Investment Property Income” podcast. Geoff and I are sharing some of the strategies we’ve used to overcome losses, not only financially, but psychologically as well.
There’s a lot of useful content here, you’re not gonna want to miss it.
By now it’s no secret the darn near every media outlet that talks about first time buyers has nothing but the most dire of news to report. Every time you tune into something related to first time homebuyers, all you hear about is how hard it is, or how you’ll have to save for decades to be able to get into the market.
What none of them are talking about however is how is it possible now?
You see the media has a vested interest in getting people to focus on the negatives, because we’re naturally drawn to the click bait. Of course they’re gonna report the bad stuff, they get way more people to listen that way.
Today on the “Investment Property Income” podcast, we’re doing the exact opposite of what the news teaches us. Geoff and I are discussing new ways that first time home buyers can not only get into the market, but make their real estate investment viable long term.
It’s not what happens in the market that matters, but rather how you respond to current conditions that makes you successful.
I don’t know if you’ve been watching what’s happening in real estate news lately, but if you haven’t…. don’t.
If you have, ask yourself this… which headline is gonna get more clicks, “Everything is Just Fine.” or “The Bubble is Gonna Burst!?”.
It seems that every time I search for real estate news, because I like to stay informed on my industry, inevitably there is always a headline somewhere in the search, or on the page I pull up, saying something about the bubble is gonna burst, or a correction is coming, or it’s be be the end of days.
For the most part… it’s all crap.
Let me qualify that statement. First, who is the person reporting this? Are they a real estate expert? Do they have intimate knowledge of how finance works? What’s their reason for putting this story together as a journalist?
Something I learned a long time ago is, be very careful whose opinion you buy. If you buy their opinion, you buy their lifestyle. I’m not saying all reporters are bad, but make sure it’s the right person’s opinion.
Secondly, it’s real estate. It’s probably the most controllable investment class on the planet. I can’t really influence the value of a stock on my own. If it’s taking a nosedive in the market for whatever reason, there’s nothing I can directly do to step in and keep the stock from going to zero.
With real estate though, I have so much more control over my own property. I can make improvements to the property, I can change the zoning, I can build it up, tear it down, or just do nothing and ride out the storm.
As long as you have a sound strategy from the beginning, and you remain able to adjust and adapt over time if you need to, there’s no reason to be worried about what the news keeps saying. In fact, you can ignore it all together, and just concentrate on what matters to you.
Today on the “Investment Property Income” podcast, we’re talking about why now is the best time to invest in real estate, why it’s not nearly as scary as the media would have you believe, and some of the strategies to keep your investments safe in stormy waters.
How far can you go as a real estate investor?
Is there a ceiling on what you can achieve?
In short, the only limitations on our personal, and financial growth, are the ones we have in our own minds.
That’s why it’s so important to always be seeking out new ideas, and learning from as many sources as possible. People and ideas open your mind to new possibilities.
Being on your own as a real estate investor leaves you with blind spots you don’t even know exist. It takes other people, with different experiences and perspectives to shine light into the areas that are darkened by a lack of understanding.
Today on the “Investment Property Income” podcast, we have a bit of a different discussion. Jacob Vanderslice from VanWest Partners joins us today to talk about the institutional approach their fund takes when investing in storage and commercial properties.
Jacob and his partners have raised a number of funds for real estate investing, and have several million dollars under management. Of course this requires a lot of technical and experiential knowledge. After all, it’s not just their money any more. They’re managing other people’s money too. That’s a lot of responsibility.
What’s really crazy… Jacob started with only one rental property.
This is what I mean when I say the only limitations are the ones we have in our mind. Like most RE investors, Jacob started small. As his knowledge base grew, so did his aspirations. Now he and his partners are running a multi-million dollar fund.
So I ask you… how far can you go as a real estate investor?
One of the biggest challenges I see investors face is the funding ceiling here in Canada. This usually happens when you have 4 - 6 single family homes as rental properties, and the bank no longer looks at the financing the same.
The shortest, and simplest way around this is making the leap to multi-family residential properties.
This can seem like a giant leap though.
Thankfully, I can say with absolute certainty that it’s not nearly as big of a stretch as you might think. In fact, it’s easier to get a multi-family property financed than multiple single families.
For example, did you know that you can get CMHC insured mortgages on multi-family properties?
Heck, even the mortgage rates are a whole lot cheaper than you’d think.
So what’s holding you back?
Today on the “Investment Property Income” podcast, Chris Larsen, author of Next Level Income, joins us once again to discuss how he made the leap from single family homes, to owning over 2000 doors in multi-family rentals. He shares a ton of great experience with us.
Have you ever set a massive goal, achieved it, and then realized it wasn't what you thought it would be?
Astronauts, Olympic Athletes, and business owners alike know the disappointment that can come with the realization of a dream.
So what do you do about it?
It’s not as simple as just setting bigger goals. You need to have a vision. Not just any vision, but one that’s going to last for the rest of your life.
Proverbs reads, “Where there is no vision, the people perish”
You see, the challenge that all achievers face is, after a goal is reached, there’s nothing to look forward to.
Here’s a smaller example that pretty much everyone can relate to. When you’re looking forward to a vacation, everything is so exciting. You spend days, if not weeks planning your retreat. As the date draws nearer, you get steadily more excited. Until finally that last day before you leave, your excitement hits a peak.
That excitement lasts a day or two, but then you start to count the days until vacation is over, trying to make the most of every one. Then, inevitably the vacation ends, you come back home, and that empty feeling comes over you. That feeling of having nothing to look forward to.
That’s the same feeling that all achievers have had to contend with at one time or another.
Today on the “Investment Property Income” podcast Chris Larsen, author of “Next Level Income” joins us, and shares his experience in the disappointment of achievement, and what he did to create a long term vision for his life.
This conversation took a very deep, and meaningful turn from where it started. I know you’ll want to listen.
One of the hardest parts of becoming a real estate investor is being on your own, and not knowing what to do when challenges arise.
OPE, or Other People’s Experience, is the shortest route through these challenges. At times when things seem the most bleak however, it’s difficult to know where to turn for that experience.
More importantly… who to trust.
We welcome back to the “Investment Property Income” podcast, Mark Stubler from Joe Home Buyer. Mark shares what instils in the investors he works with, and some of the places they turn when unexpected circumstances arise in your investing business.
One of the biggest challenges I’ve seen real estate investors face over the years is being by themselves, and not knowing where to turn when challenges arise in their business.
From marketing, buying, selling, negotiation, each part of the business has its own nuances, and requires experience to truly “sharpen the axe”, so to speak.
Today on the “Investment Property Income” podcast, our guest, Mark Stubler, talks about his Joe Homebuyer Franchise system. A system that he and his team have created to give real estate entrepreneurs a turn key, systematized approach to real estate investing.
Mark and the Joe Homebuyer team help real estate investors overcome their challenges with constant coaching, consulting, and a step by step plan that not only tells you how to deal with those challenges, but gives you a heads up before they even happen. It’s like having a crystal ball into the future of your real estate business. You’re not going to want to miss this episode.
Check it out here.
Well, it’s that time of year again… the “Bubble List” came out, and Toronto made the number two spot. Is it time to ring the alarm bells?
Not likely.
Toronto has made this list a whole bunch of times. For well over a decade now the “bubble” has been set to burst. And yet, somehow, it never does.
But why?
Today on the “Investment Property Income” podcast, we’re talking about ALL of the factors that have kept the Toronto market propped up, and more importantly, what’s going to keep it there for a long time to come yet.
I remember the first time I heard the term “residual Income”. Not only did I have no idea what it meant, I also didn’t think it was possible unless, by some miracle, I recorded a hit song, or wrote the next great novel.
Boy was I wrong.
Imagine knowing that all of your bills are taken care of every month, whether you go to work or not. Never having to stress if you have enough money. How much of your time do you spend thinking about that stuff right now?
Better yet, what would you spend your time thinking about if you never had to worry about your income again?
Today we welcome back Brent Bowers on the “Investment Property Income” podcast. Brent isn’t just talking about residual income, but walks us step by step through the process he used to create a truly passive income in real estate.
What I love most about this conversation with Brent is the way he looked at his income as he was building his real estate empire. It’s not pie in the sky. It’s a systematic approach… one bill at a time.
You’re definitely going to want to learn how Brent engineered his lifestyle.
Whenever we have a guest on the show, I love to ask them about how they got started. Inevitably the subject of fear comes up.
Today’s guest has a whole different take on fear.
Brent Bowers served in the Armed Forces as a first Lieutenant and fought on the front lines overseas.
First of all, I have the utmost respect for the folks that serve in the military.
Second, when Geoff asked Brent which was scarier, being shot at by an enemy, or changing his career and starting a business, I was shocked by his answer.
It was starting a business.
You see, when he was in combat, he had his team with him. They were looking out for each other, and they could rely on one another. But in business, he was out there all alone. No one was there to keep him safe.
It was freakin scary.
On today’s episode of the “Investment Property Income” podcast, Raw Land investor, Brent Bowers shares his experiences transitioning from the military into real estate investing. Brent talks about his fears, how he overcame them, and most importantly… why he was driven to do so. This may be our best interview yet.
Investors and homeowners got a new choice in the market this week.
Well… sorta.
TD announced this week that they’ll be offering their “HELOC” product through the broker channel.
I know, I know, exciting right? (insert eye roll here)
But this is actually a big step for consumer choice. Not only is it another product available through mortgage brokers, but it signals a shift in the way the banks are looking at mortgage brokers.
For years it felt like borrowers had to walk, hat in hand, into the bank and ask on bended knee, to be deem worthy of a mortgage loan.
But those days are far behind us.
Of the nearly $400 billion of mortgage loans originated in Canada yearly, mortgage brokers account for nearly half of that.
So why does this matter?
Simple, more choice for consumers.
But more choice isn’t always a good thing.
There were studies done a few years ago that too much choice causes people to freeze in “analysis paralysis”. In other words, confused people do nothing. Instead of trying to figure out the multitude of choices themselves, consumers are increasingly choosing to go through brokers who understand which products fit their lives the best.
Imagine trying to figure out every product, from every lender, before you even apply for a mortgage, or do a credit check. I’d be willing to bet some people would never buy a home.
But you, the people have spoken. Much like seeing your family doctor before visiting a specialist, mortgage brokers understand your situation and send you to the right place to get your challenge solved.
...and the banks are starting to listen.
Today on the “Investment Property Income” podcast, we’re talking about TD’s new product roll out, and the shift that’s taking place in the market. As always, we started out talking about one thing, and Geoff took us way off in interesting and unexpected territories with his questions.
If you’ve ever renoed, or built a home from the ground up, you know that one of the biggest variables is getting permits and approvals.
Though the government bureaucracy can take the personal feel out of the process, at the end of the day, you’re still dealing with people. And in most cases, it’s people who want what’s best for the community they’re working in.
Adam Gilbert understands this better than most. By making sure that his projects are not only an aesthetically pleasing addition to the community, but also built with the community in mind. This helps with the neighbours, as well as the approval process. Because the people in the community were top of mind right from the beginning of the project, there’s less, or no resistance.
Understanding the people the factor is paramount when approaching any project that needs council, and more importantly, public approval.
Today on the “Investment Property Income” podcast, Adam is sharing his secrets for value-add strategies, and how he ensures that the projects get the approvals needed. His was of thinking just makes so much sense.
You know, I’ve met a lot of very successful people over the years, and the number one thing that they all attribute their success to is mindset.
Specifically… seeing things the right way.
This isn’t so simple as “the glass half full” kind of thinking. It’s far more powerful than that. It’s the ability to see the glass and the water as separate resources. Being creative enough to find different uses for both resources. And most importantly, not letting your emotions cloud your judgement.
I’ll give you an example. One of my mentors used to own a radio station back in the 80’s. The radio station was called “The Rock”, because with a name like that, they obviously played rock music. But they also named it that for another reason.
The station was in a regular residential style house, except for one thing, there was a giant boulder in the front yard.
They were trying to figure out how to get rid of it. It was too big to lift by crane, and they couldn’t blast it in the middle of the neighbourhood. They needed another solution. My mentor came up with a brilliant idea.
They ran a charity campaign over the radio, to “Own a Piece of The Rock”.
Their listeners could come down to the station, pay whatever donation they could afford, and they would get a hammer, chisel, safety glasses, and a certificate of authenticity.
Two weeks later, the boulder was gone, and they had raised several thousand dollars for charity.
Mindset isn’t about negative and positive, it’s about seeing things differently. At first it’s an art to be able to see things this way. But the more you do it, the more it becomes a honed skill.
Today’s guest is the very embodiment of this ethos. Adam Gilbert began his career as an attorney in the Indio Valley of California. He soon realized the potential that vacation rentals possessed, and pivoted into real estate. Now he’s primarily commercial real estate, and runs his team at the Firm Commercial.
We had a great time chatting with Adam on the “Investment Property Income” podcast, and we know you’re going to get a lot out of the way he sees the world.
Wow, we’ve certainly had a lot happen in the last week or so!
Of course, the federal election was the major news topic, but there was so much more that didn’t make the headlines. So called “disruptor banks” are starting to make their mark on the Canadian lending scene. New tax proposals, lower interest rates, the Bank of Canada clawing back its bond buying, the price of lumber dropping, and the lack of housing supply has a lot of folk's heads spinning.
But what does it all mean?
In short, think long.
No matter what’s happening in the market, if you're thinking long term, the ups and downs of the market, the supply and the demand, doesn’t really affect you.
Here’s why…
The long term trend in real estate, since the dawn of time (or at least since folks began tracking the numbers), has always been up. If your time horizon is long enough, you’ll experience a gain in equity, higher rents, and mortgage pay down, regardless of what's happening short term.
That’s why real estate has always been such a great investment, and created so many millionaires. No matter what, it’s still backed by a physical asset (real property).
Today on the “Investment Property Income” podcast, we take a look at everything that’s going on in the market, and offer some strategies to make sure your investments are secure.... long term.
Have you ever had a moment in your life that you had to take a leap of faith?
You know, one of those moments that if you don’t take it, you’ll always wonder what could have been?
I do my best to live my life by the credo, “It’s better to regret something you’ve done, than something you haven’t”. Today’s guest is the very embodiment of that.
On this episode of the “Investment Property Income” podcast, we welcome back Edna Keep. We had such a great time learning about Edna’s journey from being a single mom at 16, living in subsidized housing, to owning more than $75,000,000 worth of real estate.
Edna used the exact same strategy that the Investment Property Income system is based on. Using what you already have to create the life you truly desire.
Learn how she made the initial leap of faith, and hasn’t looked back since.
You don’t want to miss this episode.
I’m sure you’ve heard the old adage of the glass being half full vs. half empty. What’s the real meaning of that cliche though?
In a word… Mindset.
In business, and life, the major determining factor in success is mindset. That’s why two people can look at the same situation, and one sees it as a loss, while the other sees it as opportunity.
I know there have been a million moments in my career that looking at events through the right lens created an outcome that could have been disastrous if I’d looked at it the wrong way.
Don’t get me wrong, I’m not saying that life is all rainbows and unicorns, I’m not naive. Bad things happen all the time to good people. But folks that possess the right mindset before that stuff happens, tend to recover faster, get better outcomes, and are generally happier.
Today’s guest is no exception. Edna Keep went from being a single mom at 16, living in subsidized housing, to owning a real estate portfolio worth more than $75 million dollars. It wasn’t an easy road, but a journey she is eternally grateful for.
Listen to how mindset shaped her experience throughout her journey, and more importantly kept her on track, even in the tough times, on today’s episode of the “Investment Property Income” podcast.
We had a great time talking with Edna, and know you’ll love her too.
Up until recently, I thought that the only way to invest in raw land for profit had to do with zoning changes, or land banking. (sitting on it for years until it’s worth a bunch more than you paid for it originally)
I’m happy to say… I was wrong.
One of the best parts of what we do is talking to interesting people and learning new strategies. I’ve had my eyes open to new ideas a few times, and this is one of the best I’ve ever heard!
Today’s guest has not only figured out how to purchase land for pennies on the dollar, but also how to create a monthly cash flow on that land without “Renters, Renovations, or Rodents”.
Mark Podolsky is known as “The Land Geek”. He went from a high stress career in Investment Banking, to becoming one of the best, and most well known raw land investors in the United States. (I know, we’re Canadian, but we can do this too).
With over 5000 successful transactions under his belt, and 4.5 million downloads of his podcast, Mark has shifted his focus from working his business, to teaching others how to do it.
I’m super excited to say that today on the “Investment Property Income” podcast, Mark is lifting the curtain, and showing us exactly how he’s built his empire. More importantly, how you can do it too. You’re not gonna want to miss this episode.
With the elections quickly approaching, and campaign promises abounding, what results can we really expect from the changes each party is proposing?
Today on the “Investment Property Income” podcast, we take a look at the strategies each of the parties have proposed, and more importantly, the long term effects those changes might bring to Canada’s housing market.
It’s that time again, when Canadians are called to exercise their democratic rights, and vote for the candidate they feel is best suited for the job of leading our country.
And of course, with every new election year, comes new election promises.
Today on the “Investment Property Income” podcast, we break down the changes to real estate and lending regulations, proposed by all of the parties. More importantly, we look at the long term impacts of each proposal, and what it really means to you. This is an important discussion, and one you don’t want to miss.
We’ve been hearing a lot about it in the news lately, and there’s certainly been a lot of blame going on. But what’s really caused the inflation we’ve been experiencing lately, and how does it affect the price of real estate?
We’re talking about this, and more, on today’s episode of the “Investment Property Income” podcast.
Recently the NDP leadership announced that they would push for a 30 year amortization period for high ratio mortgages, if elected.
Is this a good thing?
I’m not sure if you recall, but there used to be 40 year mortgages back before 2008. Post the financial crisis, banks really tightened their lending criteria in an effort to keep Canadians from feeling the full weight of the mortgage industry collapse.. and for the most part, it worked.
Just how much will this affect Canadian’s ability to enter the housing market?
This is exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast. It’s certainly time we explore the idea, but what difference would it actually make?
We’ve heard tons of speculation about the market “correcting”, or even crashing, but what’s the really mean for Canadians?
Today on the “Investment Property Income” podcast, we’re talking about the real impact this could have on our housing market. Here’s a sneak peak… it’s not that bad.
I remember falling in love with the game Monopoly when I was a kid. There was just something about collecting the properties and buying houses, that always appealed to me. So much so, that later in life I became a real estate investor, and started buying properties for real.
One thing always perplexed me about the game though… how would you make the leap from owning four houses, to putting a hotel on the property?
That seemed like a giant step to me.
Well… I’m happy to say… it's not.
In fact, it’s a lot easier than you’d think to make the leap from owning single family properties, to owning multi-family properties.
Of course there’s a lot more to being a real estate investor than just trading in your houses for a hotel, but it’s not as big a leap as you might think. The best part is, you don’t even have to trade in your houses to do it.
On today’s episode of the “Investment Property Income” podcast, we’re talking about making the leap from single family homes, to multi-family properties. I think you’ll be surprised at just how similar, and simple the financing can be… including the ability to use a CMHC insured mortgage.
If you’ve ever applied for a mortgage, you know that it can be quite an involved process. From income verification, to down payment, to document collection, it can be pretty time consuming.
But why?
You see, every lender is different, and every borrower is different. Document and qualification requirements can even vary with the same lender, and two different clients.
When you add up all the lenders out there, and all of the options they have for borrowers of all shapes and sizes, it can be completely overwhelming. I know I was totally dumbfounded when I first started in the industry.
It took me years to understand how to best serve the folks that I work with. What’s more, the landscape is constantly changing. You really have to know the lenders to know if they’re the right fit in any given situation.
Today on the “Investment Property Income” podcast, we’re excited to have a guest that’s worked for one of, if not the largest mono-line lender in Canada, Brett Nesbitt. It was amazing having someone who knows the lender perspective so well, on the show. I know you’ll enjoy it as much as I did.
Today on the “Investment Property Income” podcast, Geoff and I get into a deep discussion about the mindset required to be a long term investor.
Dealing with losses, naysayers, and success, all have their own pitfalls. Learn some of the psychological tricks we’ve used throughout our careers, to overcome the obstacles we’ve encountered.
This was a far more in-depth conversation than I originally thought it was going to be.
So, here we are, the 5th and final secret of wealthy homeowners…
Borrow to invest.
You see, in the past, most folk’s strategy was to pay off their mortgage and live in their house debt free. That was a great strategy at the time.
But times have changed.
Today’s ridiculously low mortgage rates have created an opportunity that didn’t exist even a few years ago. We now have the ability to borrow at 1.5 - 2 percent, and lend at 6 or 8, or even higher, depending on your strategy. This has created a massive opportunity that Canadians are beginning to take advantage of.
Here’s the way I like to look at it, separating equity from the bricks and mortar property is a bit like splitting aces in blackjack. (with way less gambling involved of course) You’ve got a better chance of getting to 21 if you split the aces. Just like splitting the house and the equity gets you to your financial goals faster.
Of course there’s risks involved, of course you have to have a good strategy in place, of course there’s details that need to be learned, and that’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast. This was a rather in-depth conversation, I know you’re gonna get a lot from it.
Continuing with the “Secrets of Wealthy Homeowners” series, today we’re talking about Secret #4, the purchase, plus improvement mortgage.
With this little gem of a financing option, it’s totally possible for you to increase the value of your home right from the get go. Of course there’s some stipulations and strategies needed to make it work, and that’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast.
Jonathan
One of the most misunderstood structures for mortgage payments, is the bi-weekly, accelerated, mortgage.
Sure it’s super common for people to set up bi-weekly payments. However, a lot of people think they’re paying more down on their mortgage this way, when in fact, all they’ve done is set up a bi-weekly payment.
Here’s the difference...
A simple bi-weekly payment takes the amount you would owe for the twelve months of the year, and instead of making monthly payments, it’s divided into a bi-weekly amount. This doesn’t pay down any more of the principal than the monthly payments, it just makes the payments a little smaller, and quite often is aligned with a person’s pay schedule.
This is the most common set up for a bi-weekly mortgage, and where I recommend most people start. Especially first time home buyers. There’s all sorts of expenses that come with home ownership versus renting, and until you’re used to the new expenses, it’s easiest to set things up this way.
The “accelerated” mortgage is only slightly different. With this structure you’re still setting up the mortgage with bi-weekly payments, but you’re making one month’s extra payment every year.
What’s great about this is the amount of time and money it saves you in the long run. You see, when you pay more against the principal in the first year, it means you don’t have to pay interest on that money over the term of a mortgage. This can save thousands of dollars, and take years off the time it takes to pay off a home.
Start with a standard bi-weekly payment, and later talk to the bank at any time to bump it up to an accelerated payment.
We’re talking about this, and a few other ways to keep more of your money, on today’s episode of the “Investment Property Income” podcast.
If you’ve been listening to the podcast for a while, you’ll know I’m not a big fan of the RRSP. However, when used correctly, it can actually be a powerful tool to increase your bottom line.
Of course there’s a lot of drawbacks to RRSPs, not the least of which being that your money is locked into an account until you’re 65, but today on the “Investment Property Income” podcast, we’re talking about strategies to increase your return, put your money to work for you, and generating a tax return when it really matters.
It’s almost like free money!
One of the most common misconceptions among first time home buyers is the belief that it’s better to have a down payment larger than 5%.
Most consider paying the mortgage insurance premium too expensive, and they want to save where they can.
Perfectly rational thinking… until you do the math.
There’s a few different ways you can think about it, but at the end of the day, the numbers truly tell the story. If you add up the appreciation a home can make over a couple of years, you’re losing money by not being in the market.
And it’s not just a little bit.
Let’s take a look at just one of the factors, how much you’re earning on your money while it’s sitting in a savings account. At the absolute best, you may be getting 2% in a “high interest” savings account. Meanwhile the inflation rate is nearly 3% a year.... you're guaranteed to lose money.
If you take that same money, say $25k, and buy a home with 5% down, that would be enough down payment for a $500,000 home. We can reasonably expect the home to appreciate by at least 3% a year. That means your $25k investment will return $15,000.
That’s a 60% return... in one year!!
And that’s just one of the factors affecting the numbers.
Today on the “Investment Property Income” podcast, we’re breaking down all of the numbers, and explaining exactly why waiting to save more, actually loses a ton of money.
We’re lucky enough to have expert realtor, and CGA, Trif Chaitas joining us one more time to discuss the proposed changes in the current bidding system for home purchases.
Recently there’s been a call for reform in the transparency of the “blind bidding” system in Canada. Though some see this as an answer to help cool the market, Trif offers a different opinion.
It’s his belief that the current system offers the only fair solution in home purchase transactions, and he makes some great points.
He certainly gave me some things to think about on today’s episode of the “Investment Property Income” podcast.
We’re super excited to have Trifon Chaitas joining us once again on the “Investment Property Income” podcast.
Today we’re talking about savings accounts that have tax strategies attached to them… that’s right, RSPs and TFSAs.
I get it, it doesn’t seem like the most enthralling topic, at least not at first. But as you start to dive into the different ways you can use these accounts to your advantage, it becomes more real, and enticing.
The improper use of these accounts can cost you thousands of dollars. Learn to use the correctly however, and they can save you a fortune over your lifetime.
Today of the “Investment Property Income” podcast, we are super excited to be celebrating our 50th episode. To celebrate, we’ve brought back our first ever guest, Realtor, and Certified General Accountant, Trifon Chaitas.
Trif is talking about the business of investing.
It’s not easy to know the future of your investing ventures, but some thought, and time, right from the beginning, can save you massive amounts of money on taxes down the road.
Learn from the expert all about starting your investing business the right way, from the beginning.
You know, one of the things that I come across all the time that still bothers me, even after all these years in the mortgage business, is people not knowing, or understanding what their mortgage actually costs them.
Sure, everybody knows what they pay monthly, and most know what their rate is, but how many folks actually know what their total cost for borrowing money really is?
The answer... not many.
See, here’s the thing, there’s all kinds of costs associated with borrowing your mortgage, and a lot of those costs don’t get factored into the bottom line. Sometimes it’s as simple as the cost of a lawyer to close the deal, or how much it costs for an appraisal, and sometimes it’s far more consequential.
So many focus on what annual rate they’re getting, but miss costs like mortgage breakage fees, or outrageous broker and lender fees.
Of course every borrower, and every situation is going to be different. No two are ever the same. There are however some general rules to follow when figuring out the total cost of borrowing.
That’s exactly what we’re talking about today on the “Investment Property Income” podcast. The rules can change slightly depending on the type of lender you’re using, and we discuss all of that in this episode.
Have you heard of anyone you know using the First Time Home Buyer Incentive program?
As a mortgage broker, I can say that it’s pretty rare.
Today on the “Investment Property Income” podcast, we talk about the recent report on the First Time Home Buyer Incentive, and what could be done to make it better.
The number one thing that keeps deals from closing is “borrower documents”.
No matter how hard everyone is working on the deal, if the necessary documents aren’t gathered, and passed on to the mortgage broker, nothing can happen. Lenders want what they want, when they want it, and they need to be submitted before the lender will make a decision to fund... or not fund the project.
So how do we make sure this process is as painless as possible?
First, getting a pre-approval from your mortgage professional is key!
A lot of realtors, especially the best and most experienced, won’t work with a buyer until they’ve gotten a pre-approval. Nobody wants to do a bunch of work, just to have the deal fall apart because of financing. We all want to get paid for our work.
The pre-approval is a pretty simple and basic process. Once you’re pre-approved though, you know how much you’re actually going to be able to borrow. I’ve even seen cases where having a pre-approval letter from a lender has helped a deal close because it was one less condition that needed to be satisfied.
Typically, after the pre-approval, there’s more documentation that’s needed to complete the final financing. That’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast.
Have you ever stopped to think about what’s actually driving the demand in our housing market?
There are obviously a number of factors that go into it, but why do people keep paying higher and higher prices for homes, and when…..if ever, is the bubble going to burst?
Depending on your mind set, here’s the good, or bad news… It’s not a bubble.
Home prices in the GTA have been steadily rising for 20 years or more.
Why?
Because Toronto is just catching up with the rest of the world. Compared to other world class cities, Toronto has been undervalued for a long, long time, and it’s not going to get cheaper any time soon.
Today on the “Investment Property Income” Podcast, we take a deep dive into the economic drivers in the market, and how you can take advantage of them.
Have you ever wondered what the bank’s number one investment is?
It’s you.
More specifically, they invest in your ability to repay a mortgage to them. They study the borrower, assess their risk, decide whether or not they’re going to lend you money to buy your house, and set up a nice 25 year income for themselves.
So if the banks think mortgages are such a great investment, why don’t they offer them to you as an investment option?
In fact, if you walked into the bank and asked them if you could participate with them in lending mortgages, they’d probably look at you pretty funny, right?
Then of course there’s the complete opposite of that. We’ve all heard of someone’s rich uncle Terry that lends people mortgages, but then he ends up owing their homes, and making his money with the “loan to own” mentality.
The good news is, there’s a happy medium… Mortgage Investment Corporations.
You’ve probably heard us talk about Mortgage Investment Corporations, or MICs (pronounced micks), as a source for alternative financing, but did you know that you can invest in them too?
MICs are a great alternative investment. They offer security that you only normally find in GICs and Bonds, with returns you don’t see almost anywhere else. It’s a truly passive investment in real estate, and the best part is… they don’t charge fees!!
Your return is actually yours!
On today’s episode of the “Investment Property Income” podcast, dig deep into both sides of the Mortgage Investment Corporation world. You’ll definitely want to listen and learn about this investment option.
With the price of lumber through the roof, a lot of folks have been putting off renos because they’ve just become too expensive. But will the prices come back down?
Who knows?
What I do know for sure however, is there’s a ton of ways to access money to get renos done. Whether it’s a new home, a flip, or an upgrade to the home you live in, there’s a whole bunch of options to get the funds you need to complete your reno project.
Today on the “Investment Property Income” podcast, we’re talking about all sorts of strategies to get your reno done, and hopefully increase the value of your property at the same time.
Today we get to chat again with Jen Robertson, from Royal LePage NRC, and I actually got really excited during our discussion... for three reasons.
First, Jen is awesome! She really knows her stuff, and she’s just plain fun to talk with. We had a great time having her on the show.
Second, I got to learn something new. As long as I’ve been in the business, there’s always more to learn, and that always gets me excited.
Lastly, what I learned about... the Niagara Homeownership Program.
I was not aware of the forgivable loan that the Niagara Region has in place for first time home buyers. It’s a local incentive only offered by the Niagara Region, for area residents. It’s a replacement for the federally offered First Time Home Buyer Incentive. Unlike the federal program, this doesn’t have to be repaid... under the right circumstances.
And it’s just over $23,000 of FREE money!!
What’s crazy is that only a local would know this. Which just goes to demonstrate the importance of working with a local realtor. They truly know what’s available to their clients in that particular area.
I mean, I’d be pretty happy if somebody gave $23,000.
Learn all the details from Jen, on today’s episode of the “Investment Property Income” podcast.
Ok, I know it’s no secret that the pandemic has made the world go mad, but what the heck is going on out in the Niagara Region??
Ontario’s wine country is catching up to Toronto, but it’s done in one year what Toronto has done in the last fifteen or twenty.
Prices have risen 36% on average in the region this year alone!
With the higher home prices come higher rents. This leads to the age old debate of "when’s the best time to get into the market?" The prices are higher, but so are the rents, and the interest rates are the lowest they’ve ever been.
So is it a good time to buy in Niagara?
We’re very fortunate to have an expert in Niagara Region real estate on this episode of the “Investment Property Income” podcast.
Jen Richardson is a realtor with Royal LePage NRC, and has been serving the area off and on since the 1980’s. She shares her insights and success strategies in this great edition of the show.
I’m sure by now you’ve heard all about the new changes to the “Stress Test”. It’s been all over the news, and I’ve already heard it explained a thousand different ways…..and really….it’s not that big of a deal.
At least, if you learn to think like a lender.
See, banks are investors just like you and I. They have way more money, and a ton of people that work for them, but at the end of the day, they follow one simple rule. The same rule that every investor has followed since the dawn of time. The number 1 rule in investing…
... don’t lose money.
Whether you’re lending your crazy uncle $20 and he promises to pay you back $25, or lending $1,000,000 on a home at 2%, the same rule applies. No one wants to lose money. It’s no fun.
The number 2 rule in investing?
Make a return on your investment.
There’s a few other rules that can be applied to most investments, but these two laws of investing are universal. What’s not universal is how lenders go about assessing the risk related to their investments.
For instance, the A banks want to know that the people borrowing their money are good at making payments on time and in full. So they look at the credit history of the borrower first.
Whereas a private lender will most likely look at the equity in the property first, then how the payments are going to be made. Even if it’s the same property, and the same person borrowing the money, the criteria for the lenders are completely different.
Learning to think like a lender will help you get more deals closed, and ultimately make you more money as a real estate investor.
Of course, as you’re learning and growing, it’s best to use a broker who knows what they’re doing. There’s no limit to the amount of deals that can pass right by an investor who doesn’t know which lenders are looking for what.
If you haven’t guessed, today’s episode of the “Investment Property Income” podcast is all about understanding how lenders think, and what they look for. This will help you get more deals closed.
Over the years, one of the most important rules I’ve learned in business is, trust your gut!
I remember having dinner once with a very prominent businessman, and he told me, “If you get a gut feeling about someone, trust it. It’s actually your subconscious brain referencing old information. You might not know exactly what it’s referencing, or why, but you’ve seen something like this before, and it didn’t end well.”
One of the most important things to me in my business is, working with people I like and trust.
That’s one of the best things about the real estate business!
I get to choose the team I work with. If someone is too pushy, doesn’t communicate well, or just generally doesn’t mesh well with myself, or the team people I work with, I don’t have to work with them.
Now of course, from time to time we all have to work with someone we may not completely mesh with. But, unlike a job, I don’t have to work with them long term.
On today’s episode of the “Investment Property Income” podcast, we’re talking about surrounding yourself with the right team of people. Choosing them on their strengths, communication, and whether they’re a good person or not. After all, why work with people you don’t want to, when you don’t have to?
I was asked this week “What’s the difference between the First Time Home Buyer’s Plan, and the First Time Home Buyer’s Incentive?”.
This really made me think, because I haven’t heard of it in a while. In fact, I’d pretty much forgotten about it.
When Geoff asked me the difference, it brought up some old strategies that I haven’t used in a while, and led to today’s episode of the “Investment Property Income” podcast.
We go deep on this one, and I even changed Geoff’s mind on why the First Time Home Buyer’s Incentive can be such a great thing for folks just getting into the market.
This is an important one for anybody thinking about buying their first home!
Have you ever heard the quote, “If your why is strong enough, the how doesn’t matter.”?
I remember hearing it many years ago when I first started to learn about sales. It didn’t really resonate with me back then, but it’s something I’ve never forgotten.
Then, on today’s episode of the “Investment Property Income” podcast, Geoff started asking me questions about how I got started in the real estate and mortgage business. Once we started talking about the beginning, something almost magical happened. I started to feel the old feelings I had when I was brand new in the industry.
Since recording this episode, I’ve been truly inspired. It’s amazing how much that saying resonates with me now. Reconnecting with the reasons why I do this business has really sparked an energy in me that I haven’t felt in a long time.
I encourage you to take the time to look at your goals, re-examine your “why”, and don’t sweat the rest. Once you really connect with the reason why, the how won’t be an obstacle anymore.
Have you ever had a massive project ahead of you? I mean one that’s so big, you just look at it and say, “I don’t even know where to start.”?
We all have at one point, right?
That’s when all of the little voices in your head start to kick in. The ones that make you procrastinate, think you can’t do it, start to bargain with yourself, and eventually either get started, or tell yourself you can't do it, and forget it ever existed. (Although it's always there in the back of your mind.)
Unfortunately, this is the same thought process that stops so many people from becoming investors.
You see, the challenge is that the goals seem so big, and so far out, that most people don’t bother getting started. It’s just easier...at least in the beginning.
Jim Rohn said it best, “We must all suffer from one of two pains: the pain of discipline or the pain of regret. The difference is discipline weighs ounces while regret weighs tons.”
So how do we gain the discipline to begin?
Break it down into small, manageable steps. A lot of folks want to start by buying a multi-family residential property, and retire on the residual income it provides. While that’s totally possible with enough experience and time, it’s not where you start.
You start by reading a book. Go to a meetup. Attend a course. Contact a realtor. Talk to a mortgage broker….listen to our podcast.
The first step isn’t buying a house. The first step is learning about real estate. Gathering information. Cultivating discipline through other people’s experiential knowledge.
This doesn’t mean you won’t make mistakes along the way. It happens to even the most savvy of investors. But it does mean that by creating a discipline, first around your knowledge gathering, then around your investing strategy, you'll be taking it one step at a time, instead of trying to tackle the entire thing at once.
Dreaming big is important, and it’s what keeps people going once they take those first steps, but without a disciplined approach in the beginning, you’ll never get to your ultimate goal.
Today on the “Investment Property Income” podcast, we’re talking about the psychology of getting started, versus the psychology of dreaming big. Learn which one to use when, and create a solid strategy to avoid feeling overwhelmed in the beginning.
Have ever heard a real estate “guru” preaching that you can become a real estate investor with “no money down”?
If you haven’t already, stay in the industry long enough and you most definitely will.
Typically that claim is followed by a sales pitch offering to teach you the secret formula for some ridiculous price, and only for a limited time…..act now!
These types of tactics are what end up washing a lot of people out of the real estate investment industry, and ultimately rob them of their dreams of passive income. It’s a downright shame.
So let’s set the record straight. Is real estate investing in Canada possible with no money down?
No….mostly.
You see, the vast majority of books made on the subject are written about the U.S. market. It’s a different country, with different rules. Though a lot of the strategies and tricks they use do translate to the Canadian market, the no money down tactic doesn’t. You need money to become a real estate investor. That’s the bad news.
The good news?
Once you get started, it’s pretty easy to keep going. Truly the sky is the limit. Once you have the right team in place, getting good properties, good tenants, and the right financing in place is so much simpler.
Of course there are exceptions to every rule, and we do talk about one of those exceptions that exist here in Canada, on today’s episode of the “Investment Property Income” podcast.
No money down is possible in Canada, but it’s a rare and very niche thing to find.
Do you remember the golden era of pension plans in Canada?
A time when folks went to work, raised their families, and generally enjoyed life without worrying about their retirement, because they had a company pension?
Careful, your answer to those questions will show your age.
Of course I’m being a little cheeky, but it’s true. Most people under 35 or so, don’t remember a time when all the best jobs had pensions. Now contract work, internships, and employee turnover are the norm.
A lot of older folks want to say that the younger generation is lazy, or they can’t keep a job long enough to become a career, but the same incentives aren’t there for them either. Why should anyone spend 20 or 30 years working at a job that gives them nothing when they retire?
That’s why so many younger folks have opted for business ownership. They’ve made a shift in thinking that a whole lot of older folks haven’t. They realize that if they ever want to retire, they have to generate increasing income, and save as much of it as possible, so they can become investors.
Young folks these days don’t have the same ideals of buying one house, paying down the mortgage and living there forever. They want to make a profit off of their investment. Yes it’s a home, but it’s also a means to creating greater wealth for their retirement. Especially since the government, and most employers, aren’t going to do it for them.
It’s this critical shift in thinking that’s making all the difference for families today.
The realization that real estate investing is a way of setting up your own pension plan. A way of generating an asset that not only grows in value year after year, but also creates a monthly income for you later in life.
The best part is, it doesn’t actually take that long, it just takes the right strategy.
Today on the “Investment Property Income” podcast, we’re talking start to finish, how to create your own pension through real estate investing.
Check it out here.
The sky truly is the limit once you get started.
Inspiration can be a double edged sword. On one hand, it gets people motivated, and dreaming of things they never thought possible for themselves. On the other, some tend to dream too big in the beginning and can get very discouraged by the reality of things.
That’s not to say that big dreams aren’t possible, they totally are!
It’s easier though, to start out small, earn your chops, and build your dreams as you grow as an investor.
I field a lot of calls from beginners that have read a couple of books about real estate, and think they can go out and buy a large apartment building. They can, but not right away, at least in most cases. There are always exceptions to every rule, but the vast majority of real estate investors start out small.
You see, lenders don’t want to risk their money. They don’t evaluate deals by the amount of zeal in the investor. They want cold hard numbers. Money, credit worthiness, years in the industry, and collateral. All of these things, and a whole lot more, help the lender mitigate the chances of losing their money on a real estate loan.
It’s far easier to borrow smaller amounts of money, on properties that are easier to market. A single family detached home, especially in today’s market, has a much larger pool of prospective buyers than a large apartment building does. In real estate lending, it ultimately comes down to what happens in a worst case scenario. Is the lender able to recover their investment?
Starting small is just plain easier to get started.
On today's episode of the “Investment Property Income” podcast, we are talking about the different levels of experience in real estate investing, and how to match property types with experience levels.
It’s important to keep in mind though, just because you start out small, doesn't mean you have to stay small.
Today’s episode of the “Investment Property Income” podcast is an unusual one. It’s not often that you’ll find a mortgage broker, and a mortgage specialist from one of the major banks, on the same show… and getting along.
Mobile Mortgage Specialist, Nancy Dass, joins us again today to discuss the differences, pros, and cons of working wit an independent broker, versus a bank employed mortgage specialist.
This is a great conversation.
So.... this was a bit of an eye opener for me.
Jim Rohn famously asked, “Why does a goose fly south for the winter? Because it’s a goose!”
Humans however, are not geese, we have the ability to change our direction at any time.
Where am I going with this?
Rent to Owns.
In the past I’ve met Rent to Own companies that have left a bad taste in my mouth. For many years I had a less than favourable opinion of the entire Rent to Own industry.
I’m proud to say though, I am not a goose. With new information, I have formed a new opinion, thanks to Rent to Own expert, Nancy Dass.
Nancy has been working with both investors, and tenant-buyers for nearly a decade. She knows the business inside and out, and has enlightened me to the fact that there are good RTO companies out there.
Just like any industry, there are a lot of so called professionals who are completely predatory in the way they do business. Nancy, is not one of them. She educated me on the business, and I now definitely see it as a viable solution for the right person. Both as an investor and a buyer.
You can tell when Nancy starts talking, that she really knows her stuff, but more importantly her heart really comes through.
Check out today’s episode of the “Investment Property Income” podcast. I hope you find it as enlightening as I did.
Something I’m certainly starting to see a lot more of these days is folks trying to buy properties out of province... especially the east coast.
Call me conservative in my investing mentality, but I’m not a huge fan.
Don’t get me wrong, I totally understand the appeal... especially living in Toronto. The prices are a lot lower, the properties are bigger, and then of course the romanticism of beautiful locales. It’s hard not to fall in love with the idea. The truth is, it’s worked for a lot of people.
There’s been a lot of folks in the last year or two that have sold their homes in Toronto and moved to the east coast, bought a larger place for next to nothing, and seem to be living happily ever after.
There’s a reason for this, a particular set of circumstances.
First, they’re selling a home in Toronto. I’m not even sure if there’s any homes left in Toronto that are less than a million dollars (of course I know there are, I’m just trying to illustrate a point). So they sold a highly valuable property in a hot market, and got top dollar. There’s also a good chance that their work situation has changed, and they’re either retired, or telecommuting. Lastly, the prices of homes on the east coast look ridiculously low...at least if you’re coming from a market like Toronto.
The thing is, for that person, that strategy works.
What I see a lot of however is very different. Folks want to buy an investment property out of province. Here’s why I’m not a huge fan.
Unless you’re an experienced investor, owning an investment property out of province adds a level of risk that I would never suggest people take on. You can’t visit the property regularly, the laws can be somewhat different in other provinces, and totally different in other countries, and you’re not as familiar with the market.
Here’s the thing, if the price is low... there’s a reason.
Now don’t get me wrong, I’m not a fatalist. I’m not saying you can’t overcome these challenges, educate yourself, and make it a profitable investment. I’m just saying that it’s more challenging, and it’s easier to cut your teeth on a property much closer to home.
All that being said, if you still want to buy something out of province, we’re talking about exactly that on today’s episode of the “Investment Property Income” podcast.
When I was first introduced to the strategy of buying “pre-construction”, I had no idea how vast the subject actually was.
Here’s the craziest thing I learned about it…..
You can make a ton of money investing in pre-construction, without ever closing on the property.
I know that sounds too good to be true, but it is. Of course there’s a number of nuances that you have to understand before you can do this, but it’s totally possible...especially in today’s market.
In fact, a colleague of mine recently made $160,000 off of an $80,000 investment. Right place, right time, right strategy. That’s why it’s so important to understand multiple strategies in real estate. A lot of them depend on timing and market conditions.
All of the real estate strategies work, otherwise people wouldn’t do them, but there are climates that are better suited to certain strategies. Today, with the barrier to entry so high in most existing homes, pre-construction offers flexibility in the up front payment structure, and different exit points, depending on your strategy.
All in all, pre-construction has a lot to offer, and the more you learn about it, the more opportunities it presents to make money.
That’s exactly what we’re talking about on today’s episode of the “Investment Property Income” podcast.
You know, sometimes it’s really hard to make a topic relatable. Some topics are just not interesting to most people. Today’s discussion is one of 'em… insurance.
A long time ago, when I was first learning the business, I was taught that “facts tell, stories sell!”.
Meaning, if you want to explain a topic to folks, and have it be relatable, you have to tell it in a story. People are far more drawn in by stories, than they are by pie charts and graphs.
So...on today’s episode of the “Investment Property Income” podcast, Geoff shares a story that’s very personal to him. Not only does it explain the importance of insurance, but also gives us a relatable, real world example of how it can help people in times of hardship. You don’t want to miss this one.
Geoff and I take a bit of a divergence from the standard financing topics today, and get a lot more personal with some of our investing and business experiences.
A few days ago Geoff was having a conversation with one of our colleagues, and she mentioned that she prefers to work with people who have “weathered the storm”, so to speak.
This began a whole conversation about the “fear of loss”.
Probably the most common thing that stops most people from beginning their journey as a real estate investor is the fear of screwing up and losing money. All sorts of people train you on how to avoid pitfalls, strategies to minimize risk, and ways to protect yourself.
But what if the worst happens?
What if by some random twist of fate or circumstance you lose money? What happens then?
This is the real meat of the conversation.
Here’s the thing, people who’ve lost money, think differently. They’re more calculating in their decisions, and they have both positive and negative experience to draw from.
There’s an old saying… “When a man with money meets a man with experience, the man with experience leaves with the money, and the man with the money leaves with experience.”
Losing money is not altogether a negative experience. Yes, it sucks in the beginning. It feels like your whole world is ending, but then you start to gain some perspective. You realize you’re still breathing. You may have been broken down for a while, but if you’re strong enough to recover, you come back better than you ever were.
Losing money is not the end of the world, it’s the beginning of a new one, like a caterpillar becoming a butterfly. It’s metamorphosis.
Most of the successful business owners that I know, have lost a great deal of money at some point in their career. But here’s the most important part... the person they became in the process. Once you’ve become someone who can make enough money that it hurts to lose it, you can make it back, and avoid the same pitfalls next time.
It’s also great to get around people like this because when you start to compare battle scars, yours will probably diminish in size and severity when compared to what some people have experienced.
Today’s episode of the “Investment Property Income” podcast is about loss, and more importantly, recovery of your investment adventure. This one is important!
Sometimes the hardest step is anything is the first one. The fear and trepidation can cause folks to procrastinate indefinitely, or worse, not get started at all.
This is why an entire industry has sprung up around teaching people how to invest in real estate.
Folks spend their hard earned money on seminars, books, and courses learning how to become rich by investing. Of course there is always value in education, as long as you aren’t substituting education for action.
A lot of people fall into this trap.
The ultimate goal of education is application. Knowledge without action is useless. In the beginning, whether out of fear, or great marketing, a lot of people become seminar junkies. They attend every meetup, every event, they know the material inside and out, and yet somehow they still haven’t moved from student to investor.
It’s been said that the antidote to fear is education. While that is correct, it’s incomplete.
If you look at action as having a before, during, and after, or beginning, middle, and end, education is just the middle, or during part. The end/after is the result, in this case, becoming an investor, but where do you actually start?
You must begin with intention!
Here’s what I mean, you absolutely must begin with the end in mind. Where are your investing goals going to take you? If you don’t know why you’re becoming an investor, it will be far too easy for you to get derailed by fear or setbacks.
Having a long term plan in place gives you something to focus on and get excited about when things don’t necessarily go as planned. Stuff always comes up, how much focus and attention you dedicate to it determines how big it is. Having your goal on the other side of it means the difference between a speed bump and a wall.
On today’s episode of the “Investment Property Income” podcast, we break down the steps to becoming an investor, talk about some of the emotional pitfalls, and ultimately how to take that first step toward your goals.
I hope you get as much out of it as we did.
It’s no secret that we’ve been experiencing one of the largest real estate growth spurts, at least in the “905” regions, that Canada has ever seen.
With the rising home prices comes a lot of skepticism and even fear.
The Canadian regulatory bodies released the guidelines for their new stress test, just a few days ago. We’re going to be talking about how the new test works, and more importantly, what it tells about the state of the market, on today’s episode of the “Investment Property Income” podcast.
Do you have any elderly relatives?
Today we hit pretty close to home with the “Investment Property Income” Podcast.
Geoff is helping one of his elderly relatives get set up for a long term game plan, and he’s running the mortgage arrangements by me to make sure that everything is the best it possibly can be.
We do a quick breakdown of the situation, and run over the concerns, and considerations. I offer a few different options to help set his elderly relative up for long term success, and there’s a bit of surprise ending to all of this.
I’m sure you’ll find a ton of value in this episode.
Our topic today is a big one. There are all kinds of books out there about real estate strategy, and creative ways to get financing, but do they really work?
In short...it depends.
A lot of the books are written for US investors, and unfortunately a lot of what they talk about simply doesn’t apply to Canadians. For better or worse, things are just a little different up here.
So let’s break down what I call the “Scale of Lenders” in Canada. A, B, C (or P for private), and everything else.
I like to start at the top with the cheapest rates...the “A” lenders. These are your “schedule 1” banks. Obviously your least expensive money to borrow, but they have an ever increasingly tight box of lending criteria, leaving a lot of folks ineligible for their loans.
That usually means my clients need a “B” lender. Now, to be clear, this isn’t a bad thing. True, the rates aren’t as low as the “A” lenders, in most cases, but they’re easier to qualify for. There’s a thriving market for these lenders, and it’s a great alternative for those who don’t fit into the major bank’s profile of the perfect borrower.
It’s important to note that there’s always going to be a lender that’s sort of a hybrid between the A’s, B’s, and C’s.
Then of course we have the “C” or “P”, REGULATED private lenders. I’ll explain the “regulated” distinction in a moment. This is where the game gets very different. Not in a bad way, but this route requires a solid game plan to make it a viable solution. The rates are higher because they take riskier clients. They don’t make their decisions on the borrower as much as the A and B lenders do, they care about how much the property is worth, how long it will take to sell it in a worst case scenario.
Here’s why I made such a fuss about “regulated”... in the world of private lending, there are two types of private lenders. First, and most reputable are the “regulated” private lenders. These are well established companies, with many investors, and the provincial regulators make sure that everything in their business is on the up and up. In short, these lenders have a good business of lending money to people who don’t qualify for the A and B lenders. They want to help you own a home with a shorter term loan (1 to 2 years usually), and make a good return on their money in the meantime.
This type of lender requires a solid financial plan, but can be a great alternative.
This leads us to the “Unregulated” area of private lending. This is the area not often spoken of by mortgage brokers because most brokers don’t deal with this area. There’s all sorts different, and sometimes very risky lenders in this arena.
This is where you find strategies like Rent to Owns (RTOs), Vendor Take Back mortgages (VTBs), Hard Money lenders, Joint Ventures (JVs), and someone’s rich Uncle Barry that lends private money to people.
These can all be very viable solutions, especially when you pair it with other types of lenders to make your strategy work, but you REALLY need to know your stuff when you start dealing with these types of lenders.
That’s exactly what we’re talking about today on the “Investment Property Income” podcast.
If you’re thinking about alternative financing, you need to listen to this episode.
This week we broke new ground on the “Investment Property Income” podcast. We did our first ever live Zoom recording. I’m happy to say, it went pretty well. We had a couple of guests drop in, and covered some pretty interesting stuff. Not the least of which…
...what makes a “bubble”?
Now I’m not saying 100% that we’re in a bubble, however there are a lot of signs that would traditionally indicate that a correction is coming.
Things like the divergence of purchase prices and rent prices, bidding wars, and the exodus of people from major metropolitan areas. Each of these alone do not a bubble make, but when they start to stack on top of one another, it’s time to make sure you have a sound long term plan in place.
It’s no secret that rising interest rates, coupled with a real estate buying frenzy, are really starting to look like a bubble that’s gonna burst.
So how do you avoid it?
Here’s the thing, the most important thing you can do is educate yourself. If you’re reading this email, congratulations, you’re already ahead of the crowd.
Lots of people overextend themselves. They buy houses they can barely afford right now, and don’t really have a plan for the future when the interest rates return to a more “normal” level.
Is it going to be “armageddon”?
For some it will probably feel like it, but I believe that with a proper long term plan in place, and the right team around you, you just have to weather the storm.
After all if you’ve got the right plan in place, what does it matter whether the home values drop, or mortgage rates rise? If you’re already expecting and planning for it, it should have very little impact on your long term goals.
That’s what we’re talking about on today’s episode of the “Investment Property Income” podcast.
Today’s episode of the “Investment Property Income” podcast was a really interesting experience for me personally. If you’ve listened to a few of our podcasts, you know that Geoff and I have a good time and poke fun at each other along the way. It’s all good natured, and we try to keep the atmosphere light.
This time around though, Geoff really challenged me. Not in a bad way, but in a way that made me go back to the very basic, first time getting a mortgage, way of thinking.
I’ve been in the industry a long time, and it’s easy to forget that a lot of folks have no idea where to start when it comes to mortgage financing.
So today, we’ve gotten back to the very basics of mortgages, starting with the four cornerstones that every home buyer and investor needs to get started.
Credit, Income, Downpayment, & Property.
We take a deep dive into each cornerstone, and really breakdown what each one is all about. For example, credit...it’s not just a number. We really pull it apart, and discuss what the number means, how credit is obtained, how it can be fixed, and some of the things to avoid…
…..especially when it comes to credit repair companies.
I know you’ll get a lot out of this episode.
Have you ever heard of the “the curse of knowledge”?
Simply put, it’s what happens when you become masterful at anything in your life. You’ve acquired so much knowledge that you don’t remember what it’s like for someone that’s just starting to learn.
This is really common with entrepreneurs and business owners. They know so much about their business and tend to throw so much information at someone just starting out, that the person gets overwhelmed and can miss some pretty key things that could really help them.
Ever tried to explain a card game to someone for the first time?
The concept is pretty simple to the people that already know the game. The new person however, looks confused as all heck. Then...even worse...everyone wants to tell them something they need to know right off the bat, and the new person ends up getting way too much information from everyone, and can even end up quitting before they ever start playing.
Then somebody suggests that they just play along for a few hands, and they’ll catch on as they go.
Before you know it, they pick up everything they need to know along the way and end up winning!
Beginner’s luck.
The real estate world is exactly the same. There’s so much information out there, from so many different sources, where do you even start?
My suggestion...at the beginning.
Learn the key professionals in any real estate transaction. Then learn what they do, what makes them good, and what’s most beneficial to you.
Today we take a bit of a step back, and try to shake off the curse of knowledge on the “Investment Property Income” podcast. We’re talking about the difference between the “Mortgage Specialists or Mortgage Advisors” at the bank, and “Mortgage Brokers”.
It’s the day before St. Patty’s day, and to me that’s always the unofficial start of spring. As mentioned in my last email, that brings the spring market, and with the spring market comes another round real estate celebrities selling the next best course for investors.
Now I’m not about to start bashing them. It’s just that my philosophy has always been, if you’re going to spend several thousand dollars on taking one of these courses, why not just invest that in your first property and learn by experience?
All that being said, this led us down a very different path on today’s podcast. Geoff and I began a conversation on the different ways that Investors, Realtors, and Mortgage Brokers all think.
It’s not that any of them are wrong, or a bad way of thinking, but they’re all incomplete. That is, in order to become a truly savvy real estate professional, in any capacity, you have to acquire all three ways of thinking.
It takes the entrepreneurial spirit of the investor to take that first step and start acquiring knowledge, and then to actually buy their first property.
A Realtor’s knowledge is indispensable when it comes to finding and obtaining the right property.
Then of course none of it happens without the proper financing, and a Mortgage Broker that understands the way lenders think.
On this episode of the “Investment Property Income” podcast, we discuss these different mindsets, and how to avoid some of the pitfalls that can happen by sticking to one way of thinking.
I don’t know about you, but I meet the spring time change with mixed emotions. Yes it’s the end of winter, and the start of nice weather, but I also lose an hour. I am acutely aware of just how precious time is, even a single hour.
Jim Rohn said it best with his quote, “You can get more money, but you cannot get more time.”
As the spring market rolls in with the nice weather, timing is everything for investors and homeowners alike when it comes to finding, and making the right deals happen.
Having a mortgage broker on your team can either make, or break a deal.
Back in 2017 there was massive media coverage on the bidding wars that were taking place in Toronto. Homes were going for outrageous “over asking” amounts. Everyone was trying to buy at the same time. What the media didn’t cover though, is how many of those homes actually closed.
You see, a lot of those homes weren’t appraised at the same value that people were buying them for. Those folks came up short on the financing and couldn’t make the deals happen. This resulted in lost deposits, angry sellers, and even lawsuits.
However, the most important thing that it cost those people was time.
Whether they lost a couple of months, or a couple of years, they lost time that their investments could have been growing.
That’s why it’s so important to have the right team around you when you’re looking to buy and invest. I’m willing to bet that most of those folks that couldn’t close their transactions weren’t working with a good mortgage broker.
So how do you know if your broker is good?
That’s the topic of today’s podcast. This episode of “Investment Property Income” is all about what to look for in a really good broker, and some of the red flags to avoid.
A number of years ago I was sitting with a group of friends, and one of our other friend’s name came up. By this point in life he’d done very well for himself by investing in real estate early.
As we were sitting there talking about how he’d become rich, and had a lifestyle that many will only dream of, I was surprised by the comments that followed next.
We all agreed that we’d love to be rich and have that lifestyle, but then the most common objection I hear about real estate starting coming out…
“Yeah he’s done well for himself, but I don’t want to get phone calls at two in the morning to change lightbulbs and fix leaky toilets.”
Good grief!
If I had a dime for every time I’ve heard this.
Could it happen?
Yes.
Is it common?
Absolutely not.
I’ve owned many properties, over many years, and not once have I ever gotten a call in the middle of the night to change a lightbulb, or fix a toilet.
In fact, I had one tenant completely redo the bathroom for me, for free!
Two things tend to happen psychologically that keep people from taking the step into becoming a real estate investor.
First, we lie to ourselves. We as humans have an incredible ability to tell ourselves something long enough that we start to believe it.
Ever heard someone say they’d love to win the lottery, and then turn around and say that all rich people are money grubbing scoundrels?
The truth is, because they don’t have it, and they don’t know how to get it….other than winning the lottery, they convince themselves that money is bad, or that it changes people.
The other thing that happens is the “fear of loss”.
This is such an interesting behaviour. We’re more scared of what we could lose, than what we could gain. This fear makes people procrastinate for years, sometimes decades.
As my partner Geoff always says, “I’d rather regret something I’ve done, than something I haven’t.”
I know what real estate investing has done for my life, and my financial future. Have I had challenges? Absolutely. The rewards have far outweighed the risks though.
So how do I overcome this fear?
By understanding that every year my money isn’t invested and growing, I’m losing far more future money than present money. I look at the long term. Sure the money I have in my bank account today feels good. But it’s not going to feel good in a few years when inflation has devalued its buying power and I still can’t afford the lifestyle I want.
Today we talk about some of my investing stories, and the things that keep most people out of the game far longer than they should, on the “Investment Property Income” podcast.
As the saying goes, “The best time to invest in real estate is ten years ago. The next best time is now.”
It’s quite incredible how the hint of spring in the air really lifts people’s spirits. Just the anticipation of nice weather, and being able to spend time outside again, has people feeling better.
But it’s not here yet.
Now we know it’s going to happen eventually, but we don’t know exactly when. In anticipation of its arrival, we’re already doing things like booking campgrounds, buying summer stuff, and working on our beach bodies...(well some of us are working on them).
What I’m getting at is, having an emotional response to something that hasn’t actually happened.
The mere expectation of something causes us to react in an emotional way. This can be a great thing when we’re expecting something good to happen, and it can be debilitating when we’re expecting something bad to happen.
Unfortunately this is how many people make their decisions when it comes to investing.
Some people put off investing for years, if not decades, because they’re afraid of losing their money. Others panic buy houses for fear that they’ll never be able to buy one if they don’t act now.
The ability to respond instead of reacting, is the key skill that differentiates the most successful investors.
Real estate investing is a long play. It’s not about quick profit, it’s about long term sustainability. Yes, I know there’s strategies like flipping, and RTO, which for the investor is a shorter term investment, but those strategies still need to have overall sustainability in order to make investors wealthy over the course of their life.
Real estate investing is not about “one and done”.
There are always going to be fluctuations in the market. There’s always going to be a great deal to be found. There’s always going to be someone with a horror story about their uncle’s cousin’s friend who lost their shirt in a real estate deal. And goodness knows, there will always be people who tell you not to do it.
Investing is a mathematical decision, not an emotional one.
Because the long term trend of real estate has always been upward, with a long enough timeline, you simply have to do the math. This takes all of the emotion out of it.
Obviously we’re talking about how emotions impact investing, and some of the tactics you can use to take the emotion out of it, on today’s episode of the “Investment Property Income” podcast.
It’s no secret that the entire landscape of the real estate market has changed in the last year. Over 50,000 people left Toronto alone in 2020.
So what does that mean for you?
Well, depending on your mindset, it either means a time doom and gloom, or a time of prosperity you may never experience again in your lifetime.
One of my mentors taught me that real estate is a long play.
There will always be fluctuations in the value of properties. There’s always going to be a push and pull between a “buyer’s market” and a “seller’s market”. But over time, the long term trend of real estate value has always gone up.
So how does one take advantage of tough times?
By being educated.
Whatever you’re hearing on TV or the radio, is just information being relayed after it’s already happened. Don’t get caught up in it. Learn first what your goals are. From there you can start to identify the opportunities that align with those goals. Never buy just to buy.
Today on the “Investment Property Income” podcast, we’re talking about some of the advantages and disadvantages to owning condos and houses. We discuss some of the strategies around financing each, and which is a better option for you.
Anyone with a long enough memory can remember the last days of the 1980’s, when mortgage interest rates were insanely high. Folks have told me that they were paying 18 or 19 percent interest on their homes.
Here we are some 30 years later, and obviously the entire landscape has changed. Not just in Canada, but the entire world.
Now, more than ever, we feel the effects of what happens on the other side of the planet. Communication and industry have become global in a way that most couldn’t have even imagined back in the 80’s.
It’s never been a better time for investors and homeowners alike to borrow money.
The real question is, should you lock in at today’s rates, or go for the marginally cheaper variable rate mortgage?
As always, my answer to that “depends”.
There’s always variables for everyone’s personal situation, and here’s a general rule that I go by…
……. If you need predictability in your monthly payments, then choose the fixed rate.
Especially right now, it’s unlikely that we’re ever going to see interest rates this low again in our life times, however…..there’s exceptions to every rule.
I know that I hedge a lot on some of the things that I say when it comes to mortgages, but that’s because it really is a personal thing. A mortgage, like fine clothing, really needs to be tailored to the individual.
The real difference is, you can tell when someone is wearing a “one size fits all” suit off the rack, but it’s not so easy to spot when it comes to a mortgage.
Today in the “Investment Property Income” podcast, we’re talking about variable vs. fixed rate mortgages, and how the interest rates actually get set by the Bank of Canada.
This is a pretty interesting one.
Let’s talk turkey about commercial financing.
There’s a lot to this topic, because there’s a lot of different types of commercial financing. There’s of course the straight up commercial building which we’re all familiar with, but what about mixed use properties, or multi-family residential, or if you own more than five properties as an investor.
Of course you can drill down even further into all of those categories and find a ton more variables. It’s such a diverse subject that it takes years to truly understand how all of the different funding options work...and more importantly...what the lenders want to see.
We’re going to cover the broad strokes of commercial lending in today’s episode of the “Investment Property Income” podcast.
The March 1st deadline for RSP contributions is coming up soon, and I thought this would be a good time to dispel some of the myths and legends around using your RSP to buy a home.
I’m not going to talk about whether RSPs are good or bad, but there are a couple of things that we should definitely know.
Let’s start with the first time home buyer program. That’s what most people think of when it comes to using your RSP. Yes you most certainly can use it to buy your first home, but that’s not the only time you can use it.
If you’ve owned a home before, and don’t own one now, you can use your RSP for a downpayment.
That’s right, it’s not just first time home buyers that can use their RSP.
There are some limits on how you’re able to use it, like length of time since you’ve owned a home, but you can still use it.
Second, there can be some major tax advantages using the right strategy. Depending on contribution limit, time of the contribution, and having a good team around you, there’s some major value in knowing how to use it to your advantage.
I don’t get upset often, and confrontation really isn’t in my nature, but sometimes I just have to speak up when I see something misleading.
I’ve seen numerous different companies advertising systems to help you pay your mortgage sooner, save tens of thousands of dollars in interest, make you sleep better, get better looking, lose weight, run faster, all for the low low price of………..
This really roasts my turkey!
First of all…..their math is either misleading or straight up wrong. And you know what, the majority of the time I believe it isn’t intentional, I believe they just don’t truly understand it. That doesn’t make it ok, but at least that’s not done with malicious intent…...usually.
The second part is what really makes me upset.
Charging people money to learn the “Secrets of the System”.
I hate to tell ya…….there is no secret.
There is no magic formula for paying off your mortgage sooner. There’s no magic pill, and certainly no magic beans.
Don’t get suckered in.
On today’s episode of the “Investment Property Income” podcast Geoff and I get into a, shall we say…..spirited conversation, about early mortgage repayment, and how the math really works. You’re not gonna want to miss this one.
For years I remember seeing those commercials marketing the reverse mortgage to seniors. As my partner Geoff would say, they always seemed to play during re-runs of Matlock and Murder She Wrote.
For a lot of people, this seemed to leave a bad taste in their mouth.
Maybe it was the way it was marketed, maybe the face that it seemed to be targeting seniors, or maybe……….we just didn’t understand it at the time.
Here’s the deal…….
Like any other mortgage product, if it’s good for your situation, then it’s a good product.
There’s a lot of benefits to using this type of product to access the money in the home you’ve worked so hard for all these years.
In today’s episode of the “Investment Property Income” podcast, we talk about the reverse mortgages, and how to make them work for you.
This one is pretty darn informative.
In this episode we talk about the ups and downs of private lending. Things to look out for, and how to use it properly as a part of your investing strategy.
We designed the material around the “Investment Property Income” system to help folks thrive in regular times, and speed up their process exponentially in times of opportunity.
First we start with what you truly want, then naturally we see how easily the system works over time.
Is it better to have bad credit, or no credit? How long do bankruptcies and consumer proposals stay on your history? How do you repair your credit fast?
We'll talk about all these challenges and more on this episode of the Investment Property Income Podcast.
www.InvestmentPropertyIncomeBook.com
In this episode of the Investment Property Income podcast, we talk about when to refinancing vs. simply renewing your mortgage. The advantages, uses, and disadvantages of both.
As well, we discuss the different ways of structuring a refinance to make it as suited to your current needs as possible.
If you have any questions, or would like to be a guest on the show, feel free to send us an email at IPincome@amortgageplan.com
Today tax expert, and realtor, Trifon Chaitas joins us to talk about the tax implications of real estate investing. We'll dispel some of the myths and mindsets around taxation, and most importantly...explain how and why to get "free money" for real estate investors.
In todays' episode we'll cover the Purchase Plus Improvements home loan, and exactly what you need to name it happen.
In this episode we talk about mortgage insurers, and how to skirt the rules to get your second property with only 5% down as opposed to the normal 20%.
We dive into helping business owners understand how they can get qualified for financing, even though they may not be declaring much personal income.
Mortgage Penalties can cost homeowners tens of thousands of dollars. Knowing what they are, how they're calculated, and how to minimize them means everything when signing your mortgage contract.
Know the difference, and know the true cost, before you sign anything!