The Little Book of Real Estate Investing in Canada – Don Campbell

The Little Book of Real Estate Investing in Canada – Don Campbell

Treat real estate like a business, purchase properties in areas where the economic fundamentals support the greatest possibility for equity appreciation, and only by properties that produce monthly net cash flow.

I learned, very early on, to only take advice from someone who has been very successful in what I want to be successful at.  You will notice I did not just say relatively successful, and I am also not talking about someone who got lucky in a hot market.  I want to learn from, discover insights from and hear the good and the bad side of the investment world from someone who has seen it all and knows how to respond to all market conditions.

Residential properties located within 800 metres of light rail or rapid transit stations typically can charge rents that are 5 to 11 percent higher than the prevailing market.

National stats mean nothing to the sophisticated investor.  The fact that prices are up 5 percent across the country means nothing in a city where they have dropped 5 percent or have risen 8 percent.  Ignore national stats.  Focus on your chosen geographic zone.


The 10 Fundamentals of Successful Real Estate Investing.

  1. Mortgage Interest Rates.
  2. The disposable income effect.
  3. Increased Job Growth.
  4. The Real Estate Doppler Effect.
  5. Local Regional and Provincial climates.
  6. Critical Infrastructure Expansion.
  7. Areas in Transition.
  8. Creating Highest and Best Use.
  9. Buy Wholesale, Sell Retail.
  10. Quality Proactive Marketing.

The Pseudo-Fundamentals

  1. Renovation and Sweat Equity.
  2. Speculation.

I expanded our portfolio while staying true to the 3 most important principles of my system:

  • Cash flow is King.
  • Market Appreciation is a Bonus.
  • Following the economic data is the foundation to making great investment decisions.

Your job as an investor is to study the fundamental, analyze the actual property you are buying and then manage that property through all types of market conditions, not to out-guess the cycle.

The strategic investor knows that if he can’t find positive cash flow properties in his target market, the system is working, not broken.

I believe that sound investment advice, given by someone who is actually experienced and doesn’t profit if you buy a property, is available; just be careful of pretenders.  I only take advice from someone who meets the following criteria:

  1. They must be actively investing in Real Estate.
  2. They must have at least 10 years of personal experience investing in Real Estate, which ensures they have come through the ups and downs.
  3. They must have been successful over that time.  This point is critical because lots of unsuccessful investors turn to teaching rather than becoming better investors.

Over time I have learned to give myself a pat on the back every time I walk away from a property that would have wakened my portfolio because that is exactly what a sophisticated investor is supposed to do.  

Regardless of what is at the root of the problem with a property ( financial or economic fundamentals, access to renovators ), if my system tells me I can’t fix it within my parameters, I must move on.  The fundamentals may be telling me to buy, but I simply cannot justify borrowing money to invest in a property that can’t provide cash flow.

A strategic investor would wait until the project starts, then buy from the speculators who want to get out with their quick buck.  Because the investor’s decision is based on fundamentals, he gets the benefit of lower risk with long term profits.  In sum, the sophisticated investor might keep an eye on properties affected by a hot tip.  But they are unlikely to buy until the development proceeds.  Veteran investors sometimes joke that they make their money as settlers, not as pioneers.

You must always take responsibility for the bad results in your business if you also want to take credit for the good results.  Ignore this rule and you risk your reputation as a professional.


Rules of Engagement when communicating with team members:

  1. Set goals and write them down so everyone agrees on the expected volume.
  2. Have an agenda for every meeting and stick to it.  No rambling or tangents.
  3. Separate the person from the problem.  Come up with solutions, not blame.
  4. Discover the team member’s real motivations.  Often is not money, even if they say it is.
  5. Only respond to reason, not pressure.  ( Stick to your system! )
  6. Be willing to walk away before you saying something you will regret.

Credible Real Estate Investors:

  1. Show up on time for appointments.
  2. Do what they say they will do.
  3. Under promise and over deliver.
  4. Know they are judged on the reputation of the people they choose to do business with.
  5. Like knowing their record can speak for itself.

Riding a bicycle is one way to increase your physical fitness and improve your chances of living long and healthy life.  Of course, jumping on a bike for the first time in years and sprinting at an Olympic pace can have exactly the opposite effect, making you unwell to the point at which you require resuscitation.  That is why slow and steady progress over a few years ( giving you time to build up to Olympic levels ) is so critical.

Building your portfolio slowly and steadily, rather than pushing for explosive growth all at once, can lead to your achieving the equivalent of an Olympic level in a financial goal.  Building it fast and furiously can lead t catastrophic financial and emotional issues.

Real Estate investor Thomas Beyer of Prestigious Properties compares real estate to a satisfying dinner:

Real estate is like a three course meal.  The appetizer is the positive cash flow, always appreciated but nor required as break even is okay too.  The main course is the mortgage pay down and must be there moth after month.  You will get rich and fat just on the main course.  The dessert is the equity appreciation.  Like an appetizer it is always appreciated but not required for a meal or wealth creation.

Unfortunately beginning and inexperienced investors only focus on the dessert, and just like in real life, if that is all you eat you will die soon.

Top Reasons to Invest in Real Estate:

  1. It is a more tangible investment, one you can see, one you can improve to maximize return, and overall you are more in control of it.
  2. Tenants help pay the mortgage and expenses, and after 25 years of so, you will have a fully paid investment to help with your retirement.  We certainly can not count on Canada Pension Plan to fund our retirement.
  3. If you can’t get financing on a single family home, then a multiple family dwelling is a more affordable entry point into the real estate market, which will help you build your equity.
  4. Historically real estate has delivered strong returns.

 

 

L’independance finnanciere grace a l’immobilier – Jacques Lepine

L’independance finnanciere grace a l’immobilierL’independance finnanciere grace a l’immobilier – Jacques Lepine

“Vous ne pouvez jamais en savoir trop”  –  On n’a jamais trop d’argent.. ( pour faire affaires ) M. Tasse.

Benefices fundamentaux a tout bon investissement:  Les Revenus, La Croissance, La Capitalisation, Les Avantages Fiscaux, Le Effet Levier.

Cartes De Affaires: Je suis un investisseur immobilier, j’achete et vend des immeubles. Je ne suis pas un agent immobilier. Je suis un investisseur prive.

Les ingredients d’une aubaine:

1. La propriete est sous evalue.
2. Potentiel d’amelioration.
3. Loyer trop bas.
4. Despenses trop elevees.
5. L’utilization peut etre changee.
6. Peut etre achete avec peu comptant.

Ojo P155.

https://www.corpiq.com  Service d’enquete pre location.

Courtiers Immobiliers:

www.immoconseilglc.com
www.remax.ca
www.sutton.com
www.patricesimmard.com
www.royallepage.ca
www.lacapitale.com
www.propriodirect.com
www.c21.com

Courtiers Hypotecaires:

www.bobmortagemail.com
www.h123.ca
www.invis.ca
www.hypotheca.ca
www.multi-prets.com

 

 

Successful Real Estate Investing, How to avoid the 75 most costly mistakes – Robert Shemin

Successful real estate investing
Successful Real Estate Investing, How to avoid the 75 most costly mistakes – Robert Shemin

I only have one asset, and that is time.  Set up automated systems.

The number one determinant of success is what you believe.  You must continually educate yourself to boost your belief.  The second determinant for success is know-how, and the third one is consistent action.

Make lots of offers.

I challenge you to start your own business, even if you do it on the side part-time.  Working for someone else is like going to the gym five times a week, but your boss builds all the muscle.

It is about the numbers, take the emotion out of your deals.

If you are considering long term investing, find out what are the job and growth prospects in your area.  They are related to supply and demand.

Track how you spend your time and what makes money for you.

Mistake 17: Not taking advantage of affordable legal services.  Look for prepaid legal services.

Mistake 18: Not developing a long term plan to protect your real estate assets.

Who are the people who sue other people?  Upset and angry people.  Therefore, here is the best policy you can ever adopt: Don’t make people angry. ( Return phone calls, do repairs, talk politely to tenants ).

Mistake 30: Not having a systematic way to run your rental business.  Set up a system that makes it possible to run your business in autopilot. Ex: set up voicemail messages explaining stuff when potential renters call.

Mistake 41: Not charging tenants for damages to your property:  The only damages owners should be responsible for are normal wear and tear.  When tenants move in, they sign a damage disclaimer in addition to the lease: “You are responsible for the damages you and your guests cause, this is an estimate of costs, it might cost more… “ Then if a sink costs 75 to fix, I charge them 150.

Mistake 45: Penalizing bad tenants and not rewarding good ones:  Ex Reparations done in 3 business days, if not, we can reimburse some rent: “here is your 60 for 2 days in cash, we are sorry and we hope it does not happen again”.  If tenants declare they are going to move we send them a letter adding up the costs of moving ( up to 2.000! ).

Mistake 47: Not inspecting properties regularly:  The lease should say that someone can go in at second tuesday of the month to inspect the property. When you inspect your property every 30 days of less your tenants will know you are serious about caring for it, the managers will know you are checking up on them, and it will help you take care of your investment.

Mistake 52: Not having a per-day penalty for contract work that is not finished when promised.

Mistake 55: Relaying on what people tell you, not what they do.  Don’t set expectations on what people tell you, that will only bring frustration, map your reality on what people do, not what they say.

Top Mistakes:

1. Not making a list each morning of your priorities and what you intend to accomplish that day.
2. Not reviewing the activities list at the end of every day.
3. Not trying to find a deal every day.
4. Not making an offer today.
5. Not having an organized folder system.
6. Not setting up and abiding by strict office hours.  If you don’t follow this policy your personal life, family life and spiritual life will all suffer.
7. Not duplicating what has worked for you in the past.
8. Not spending at least 30 minutes a day on improving your knowledge and skills.
9. Not thanking someone today who has helped you become successful.
10. Not reminding yourself every day of the bigger picture.

Top Negotiating Strategies:

1. Never mention a number until you absolutely have to: ask the seller, how much would you pay? what is the absolute rock-bottom price you would take today? then stop talking, let the silence hang heavy…. “uhmm, can you do any better?… can you do better? ask several times.  Always offer an odd number 321.473 ( I have a system ).

2. Ask questions: Why that price? What are you doing with the money. Also pose questions that elicit a “no” but go in your favor ( people are more likely to respond to questions with “no” ), for ex: is there any reason why you couldn’t consider this offer?. No, why not?

Link to book on Amazon: Successful Real Estate Investing, How to avoid the 75 most costly mistakes – Robert Shemin

Couple Millionnaire de l’immobilier – Jacques Lépine

Couple Millionnaire de l'immobilier
Couple millionnaire de l’immobilier – Jacques Lépine

Logiciels comptables pour évaluer les propriétés : Hopem, Proprio Expert de Magex Tech, Side Manager.

Questionnaire au propriétaire P89.

Pour un calcul rapide de rendement, le prix demande doit être entre 12 et 15 fois les revenus net avant le paiement de l’hypothèque pour être intéressant.

  • Entretien et réparation est aprox 10 – 15 % des revenus
  •  Taxes aprox 5%
  •  Assurances aprox 4%
  •  Frais d’administration aprox 5%

Exemple : Si l’entretien est 4% des revenues, il faut investiguer d’avantage, il est possible que toutes les dépenses n’aient pas été déclarées, mais si il est vrai il es signe d’une bonne gestion.

Mise de fond :

  • 5% pour maison unifamiliale
  • 10% Multi familial si on y habite.
  • 15% Multifamilial si on n’y habite pas.
  • 15% multi, plus de 6 unités, en tout cas.
  • 20% pour ne pas avoir besoin de l’assurance de CMHA or Genworth.

Le Millionnaire que j’appelais Grand-Papa – Martin Paquette

Le Millionnaire que j'appelais Grand-Papa
C’est étrange comme le vent éteint les petites bougies, mais anime les plus grands feux.

Les femmes savent des choses par instinct, nous comprenons seulement les choses par des faits. Elles ont une longueur d’avance sur nous.

Le vrai principe, je l’applique et je le prêche toujours : pour devenir riche et réaliser les choses que l’on veut, il faut toujours réinvestir la moitié de ce que l’on gagne. Si tu gagnes un dollar, mets cinquante cents de côté pour réinvestir plus tard.

J’ai déjà dit que si les gens pouvaient connaître et voir les résultats de leurs efforts, tous deviendraient et demeureraient motivés. C’est pourquoi les gens qui travaillent dans les grandes organisations sont si difficiles à motiver; ils ne sont responsables que d’une partie de la réalisation et souvent très loin des résultats. On dit souvent que la routine détruit la motivation.