Tag Archives: Canadian real estate investor secrets

Automate Your Rent Collection

Automate Your Rent Collection

As a full-time Canadian real estate investor or landlord, you only have enough time in the day, and that time should be spend creating massive and passive income for yourself by acquiring more property and/or making more deals. So having to go and collect rent cheques every month, depending on the amount of your portfolio, can be quite time-consuming. Continue reading Automate Your Rent Collection

Cutting The Cost of Repairs

Cutting The Cost of Repairs

Stay Out of the Repair Business

One of the worst things that a full-time Canadian real estate investor despises is getting calls from tenants for some small insignificant thing  in your unit that needs fixing.

There are ways to be able to alleviate this  and have the tenant want to be responsible for small insignificant repairs and never bother you with them, thus keeping your maintenance to zero. Is this possible?

Continue reading Cutting The Cost of Repairs

How To Pick The Best Tenants

How To Pick The Best Tenants

As a full-time Canadian real estate investor or landlord, we only have enough time in the day to do certain things, and one of them should not be responding to a continuous barrage of tenant problems. We need to utilize our time in creating more massive and passive income for ourselves.

Continue reading How To Pick The Best Tenants

Creating an Entourage of Experts Part 1

Creating an Entourage of Experts Part 1

As a full-time Canadian real estate investor, we must be able to create multiple streams of income for ourselves. In past articles I have gone through many strategies of creating a network and database in order to create an flow of deals  coming to us on a regular basis.  But that is not enough… it is never enough!

Continue reading Creating an Entourage of Experts Part 1

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.”

Becoming a full time real estate investor means creating opportunities for ourselves on a regular basis to build massive and passive income for ourselves, just like a regular business would.We need to set it up so we can get paid on a regular basis.

We need to do things differently than what amateur “conventional” minded real estate investors do. From my experience, the average real estate investor uses his/her own money for every stage of a property purchase. They continue to put money into a property that is being used for the typical uses such as flipping that property or holding that property for appreciation. Both these “strategies” end up buying us a job in becoming a landlord or a renovator, and both take way too much time!

Continue reading Becoming a Successful Full Time Real Estate Investor

Three Tips for Millionaire Networking

Three Tips for Millionaire Networking

As a full-time Canadian real estate investor we must do all we can in order to drive business towards us. This goes far beyond waiting for a realtor to bring us a list of properties that are deemed “good deals” in their mind. As an entrepreneur, we must be making massive and passive income in order to create a  successful  full time real estate investing business.

Continue reading Three Tips for Millionaire Networking

Top Ten Marketing Tips For Real Estate Investors

Top Ten Marketing Tips For Real Estate Investors

As a full-time Canadian real estate investor, we need to create massive and passive income for ourselves. We cannot only rely on a realtor to help build our portfolio, otherwise we could become broke  or our portfolio could grow very slowly. We must however rely on our marketing skills to create many, many deals for us.

Continue reading Top Ten Marketing Tips For Real Estate Investors

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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Navtaj Chandhoke
www.CanadianWealthBuilders.com | www.preigCanada.com
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Turning a Tenant Into a Buyer

Turning a Tenant Into a Buyer

As a full-time Canadian real estate investor, we must create various forms of deals to be able to build massive and passive income for ourselves. The way we do this is a continuous stream of income that is produced by short-term holds; creating deals without using any of our own money or incurring any liability, as well as building our portfolio with long-term holds. The latter does not always mean being a landlord. There are many other ways of creating long term holds with monthly income and a very nice backend return.

Continue reading Turning a Tenant Into a Buyer

How To Put Your Tenants To Work For You

How To Put Your Tenants To Work For You

As a full-time Canadian real estate investor, we have a limited amount of time each day to oversee our portfolio of rental properties. Even having one or two can be time consuming, right? Some of us have a property manager but even still, we have a responsibility to our properties and to our tenants.

Continue reading How To Put Your Tenants To Work For You