Tag Archives: 0 liability real estate investing

Becoming a Successful Full Time Real Estate Investor

Becoming a Successful Full Time Real Estate Investor

 

This is a continuation of  Becoming a Successful  Full Time Real Estate Investor – Setting goals

In order to be successful, both the rookie real estate investor as well as the veteran needs to continue to implement strategies to improve their business. There is always a way to sharpen your skills to create more success.  One of those necessary implementations is goal setting.

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Mortgage Jargon – Part 5

Mortgage Jargon – Part 5

If you missed the previous article – Mortgage Jargon – Part 4

We will continue in our series of Mortgage jargon. As full time Canadian real estate investors, we need to utilize the following definitions as part of our everyday language.

Estopple Certificate

This is a document that outlines the legal and financial state of a condominium corporation. When a condominium corporation is formed, and goes on for a period of years, they have certain legal outlines and an annual (if not monthly) financial statement that is created by its members. If you are getting into purchasing a condominium project, you must understand the state of it financially and legally by getting an Estopple certificate.

Continue reading Mortgage Jargon – Part 5

Mortgage Jargon – Part 2

Mortgage Jargon – Part 2

If you missed the previous article – Mortgage Jargon – Part 1

We will continue in our series on mortgage jargon. Many of these references should or will soon become apart of your language in real estate investing.

Total debt/service ratio

This ratio is calculated by your mortgage broker. This is a standard by most lenders which states that no more than 40% of your gross income can be utilized to service your property. Your total debts are principle interest, property taxes, heating, 1/2 condo fees, plus all other monthly obligations, such as credit cards, leases, loans, lines of credit, etc.

Switch

This term applies to changing lenders at the end of a term. When a mortgage is at the end of it's term, or coming to the end of it's term, another lender may pay the costs of switching over to their company. This means that if there is a mortgage penalty, the other lender may pay that penalty for you to break your mortgage and move the mortgage to them. They may also offer you a reduced rate to come to them from a competitor.

Cap rate

A cap rate is a calculation that is used mostly in the commercial side of real estate. The the fair market value is divided into net operating income (rent minus expenses, not including mortgage). Capitalization rate is essentially a percentage calculation that is better when higher. The higher the result, the better rate of return.

Closed Mortgage

A closed mortgage is closed for the term, usually 5 years, but it can be anywhere from 1-5 years. It cannot be paid out unless there is a penalty involved which can be discharged at a cost of either three months interest, or an interest rate differential.

Interest Rate Differential

The IDR is a penalty for an early pre-payment of all or part of the mortgage outside the normal payment terms, or even pre-payment terms. This is calculated as the difference between the existing rate and the rate for the term remaining, multiplied by the principle outstanding and the balance of the term. For example, if the mortgage balance is $100,000 at 9% with 24 months remaining and the current 2-year rate is 6.5%, the different between 6.5% and 9% is 2.5%. The interest rate differential is $100,000 outstanding mortgage, times 2-years times 2.5% will equal $5,000 dollars.

High Ratio Mortgage

A mortgage that is greater than 80% loan to value(LTV). What is loan to value?  It is the ratio of loan compared to the value of the property. For instance: if the mortgage was a 70% loan to value on a $100,000 property, the value of the loan would be $70,000.

Equity

Equity is the difference between the value of what you can sell your property for (or fair market value), compared to what is owed against it. So the more equity in a property for a real estate investor, the better.

We will continue in our mortgage jargon series in a following article.

World Wealth Builders offers many unique, practical, "out of the box" real estate investor trainings which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.worldwealthbuilders.com

To read the next article – Mortgage Jargon – Part 3

www.WorldWealthBuilders.com/live

P.S. Take Action now to attend the eye-opening seminar and walk away with confidence, knowledge, and specific "action ideas" that can help you achieve your dreams and leave the rat race behind.

We have been training Canadian Real Estate Investors since 1993

 

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Picking The Correct Date for Closing

Picking The Correct Date for Closing

As a full time Canadian real estate investor, we must take into consideration everything that may effect our bottom line. As an educated investor, we will continually increase our bottom line through a skills and techniques that  allow us to make much more money in every transaction.

A real estate investor's career will see many types of deals. A vast number of these deals, as part of our training , will require zero money from the investor in order to make money. Another part of an investor's career will include purchasing a property with their own  money, or a joint venture partner's money.

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Creating a Bird Dog Network Part 3

Creating a Bird Dog Network Part 3

If you missed the previous article – Creating a Birddog Network Part 2

As a full-time Canadian real estate investor, we must do our best to creating massive and passive income. This includes driving more and more deals to us from as many sources as possible.

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Getting The Seller To Pay All Closing Costs

Getting The Seller To Pay All Closing Costs

As a full time Canadian real estate investor, you will come across many situations that involve negotiation. Negotiation is key to your success. Understanding the methods of negotiation and all that is available to negotiate for is crical to making perhaps a good deal even better.

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Creating a Bird Dog Network Part 2

Creating a Bird Dog Network Part 2

If you missed the first article – Creating a Birddog Network Part 1

Establishing a team

In the last article I spoke about the importance of building a network of bird dogs. Let’s discuss how these everyday people can drive business to you in order for you to make massive and passive income as a full time real estate investor. So, who are these bird dogs and how can you get them to work for you?

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Creating a Bird Dog Network Part 1

Creating a Bird Dog Network Part 1

As a full-time Canadian real estate investor, we must do our best to creating massive and passive income. This includes driving more and more deals to us from as many sources as possible.

Did you ever wonder why other real estate investors seem to be closing on great deals and others are having issues just getting one deal from their realtor that make sense?

Continue reading Creating a Bird Dog Network Part 1

Becoming a Full-Time Real Estate Investor

Becoming a Full-Time Real Estate Investor

Becoming a full-time Canadian real estate investor is a desire a lot of people have. They get an idea in their head that where they are today financially is not where they would like to be and real estate investing will solve all of their problems.  Real estate is a great business, yes but it can be very challenging  and if not done properly, is rarely achieved.

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Assignments in Canada

Assignments in Canada

A Career Real Estate Investor

A career as a full-time Canadian real estate investor is very interesting and fulfilling. There are many triumphs and challenges one faces on a regular basis. For some investors who are just “flippers”, the time between triumphs can be long and arduous. Quite often the flipper can become almost broke as they are waiting for a property to be completed and sold before they get their money.

One of the challenges then is keeping money flowing in regularly so you are not in a feast or famine situation. So creating both massive and passive income is the key to success as a full-time Canadian real estate investor.

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