Using your RRSPs as a Mortgage

There is a large pocket of untapped money available in the market that investors can use to fund their Real Estate deals. These funds are in the form of Registered Savings Accounts. In Canada, Canadians currently hold about $700 Billion collectively in RRSPs. That is a lot of potential money for you to use if you know how to tap into that funding source.
 
What if you have RRSPs yourself? Are you earning the returns on your investments within those accounts that you want to be earning. Using your own RRSPs as a mortgage on a property is a great way that you could start earning double digit returns. Knowing that investors are always in search of money to lend on their deals, can put you in a unique position to help them out. Investors also like to borrow from private investors as well as there is a lot less hassle going through private people that with the banks.
 
What if you only have a small amount of money in your RRSPs? Not enough for a full mortgage? Many times after an investors has held a property for a period of time and have built up some equity that they would like to tap into for what ever reason. You can come in and loan a small amount in an second mortgage position as a short term loan. Many investors are willing to pay high interest rates on these short term loans allowing you a good return in the process. 
 
When you get together at the end of the day with your friends, and they start talking about how bad their investments are within their registered accounts, you can stand proud knowing that you have been earning healthy double digit returns using the Arms Length Mortgage method.
 
To learn more about this exciting investment strategy, I recommend you read the book " The RRSP Secret: Defend and Build Your Wealth with This Powerful Investment Strategy." By Greg Habstritt

Know Your Provincial Tenancy Acts

 As you get started investing in Real Estate it is a good idea to read through the Tenancy Act of the province you are looking to own a rental property in. There are differences in each of the provinces and how they regulate the rental real estate business. Knowing the Act will help you to best manage your properties for maximum success when dealing with your tenants. In the end the Act will win out in any dispute.
 
One thing to note is if the province has any sort of Rent Control. This will dictate how much you can raise your rents every year. In some provinces they will tell you the percentage in which you can raise the rent, in others like Alberta there is no stipulation on how much you can raise the rents. Get to know what the rule is for the province you are investing in so you can plan your cash flow accordingly.
 

Other differences you should look into is how much security deposit is allowed to be collected. In Alberta for example you are allowed to charge a full months rent as a security deposit, yet in British Columbia you can only collect 1/2 of a months rent as a security deposit. You should also know what the rules are regarding holding the deposits and how you can hold back portions or all of the deposit when a tenant moves out and you have to preform cleaning and repairs.
 
Once again, knowing the Act in the area you are interested in investing in is part of your job as an investor to ensure you are running your properties correctly. If any dispute happens between you and a tenant and you have been following the proper procedures according to the Tenancy Act, you should be protected within it. 
 

Your Network Determines Your Net Worth

There is an old adage that goes, "Your network determines your net worth." Basically this means the more people you associate with the more potential you have towards developing the wealth you want to attain. However, I would like to add this: Your network needs to be made up of people who will assist you towards reaching your financial and personal goals, and not bring you down away from them.
 
Take stock of the 5 people you spend the most amount of time with on a weekly basis. Are their current financial situations where you would like to see yourself? Many times when people do this exercise they find out that they tend to hang around the people who may be the reason for them not at the level of success they want to be at. If this is what you have found, you many need to change up who you focus most of your time and attention on.

 
So where do you go to meet these new people? 
 
Depending on the route you are taking to achieve success (whether through Business, Real Estate, Stock, etc.), there are many different clubs and meet ups that run regular events of meetings. These are the perfect opportunity to meet new people who will support you towards your goals.
 
So, instead of going out every night to a local pub with your buddies, take a time to attend an event that will allow you to meet new people, hand out your cards, and grow your business.
 
As your circle of influence starts to change, you will notice a shift in your personal success. As well you may even notice a shift in your overall attitude as well, as those who are supporting you will tend to make you happier, than if you spend it with people who just complain. SO, order your business cards, put on some nice clothes and get out there and network!
 

The Power of Having a Mentor

 Many people in today's society like to adopt the do and learn method on their own. They do not like to be told by others how they should do something. However, this is not necessarily the smartest or the most efficient way to getting the outcome you desire. What would be a better way then?

 
Getting a Mentor!!
 
A mentor is someone who has more experience than you do in a particular field. The people who embrace having a mentor can make all the difference of them having average success vs. outstanding success. But what can a mentor really do for you?
 
More likely than not a mentor is someone who has the level of success you are aiming for. These individuals can help you to navigate the path you are on and can assist you in identifying future road blocks before they happen. How? Because they probably have hit these same road blocks already and can draw on their experience to help you watch out for them.
 
A mentor will be there to both challenge and motivate you at the same time. When you have questions, you will have someone who can answer them right away. They may even be able to provide you shortcuts to problems, as they have perfected the method of getting past them.
 
If you don't already have a mentor, it may be a good idea to find one who is where you see yourself in the future. These are people if you make their time worth while to help you and not waste their time, they may even use you to pass on their legacy to.

Wholesaling for Quick Profit

There are many different techniques available to investors in Real Estate. A few of them can even allow you to control the properties without even owning it. That means you are making money on properties you are not even on title for.

One of these strategies can net you into the tens of thousands per month. We call this technique Wholesaling. Most people think, when they hear the term wholesale, it is about getting a retail item on sale that is close to what the retailers pay. Yes it is similar in concept. You are essentially getting an accepted offer on a house below market value. In many cases these properties from Sellers who are really motivated and the houses themselves sometimes are in need of a little TLC or possibly in need of a complete overhaul.

So how do you control these properties without owning them? With the process of wholesaling, you as the investor will go into the negotiations work out the terms of the offer to purchase with the owner. Once you have submitted an offer and it has been accepted by the Seller, you have effectively tied up that property to you for the length of time of the conditions.

From here you would need to have developed your database of investors who are looking for the type of property you have under contract. If you have an investor who would like to take over the deal, you can assign the contract over to them. Of course when you do this you will charge a fee to assign that contract. This is where you make your money as a Wholesaler. And this assignment fee can range in price depending on how much equity you get the in property on the buy and how much your investor is willing to pay for it.

With this strategy you can put in as many offers as you want on properties. As you assign them out, you will generate your income. Now this technique in not only limited to just fixer upper houses. Any type of property can be wholesaled. Basically you will be getting paid to facilitate and set up deals. So it is time to go out there and start making offers. You are not doing this business unless you are making offers.

Are you prepared for 2014?

Did you accomplish the goals you had set out in 2013? If not, WHY? Many people make New Years Resolutions that deep down they truly do not intend to keep. They may intend to "keep" them, but allow themselves to fall to their excuses to justify why they did not attain them.
 
What needs to change then? You are making goals after all, at the beginning of the year. Here are a couple of tips that can help get you started, that the successful people employ everyday.
 
It has been said that a goal is only a dream until it is written down. So step 1: Pull out a piece of paper and your pen and start actually writing down your goals. Not only should you write down the goals, you need to really think about them and ensure they are S.M.A.R.T. goals.
 
Specific
Measurable
Attainable

Relevant

Time-Bound

 

Using SMART goals is a method to determine the "How" and "when" of your goals. But it doesn't stop there. You now need to review these goals regularly to make sure you are on track. This is especially true if they are time sensitive. 
 
Now take a look at the 5 people you spend the most time with. Do they motivate and inspire you to achieve your goals?  Are they always complaining about things and suck you into that negative mindset? You want to surround yourself with people who are going to lift you up on a regular basis and give you that boost you need, not listen to you complain and add to it. Take an inventory of your friends and see where they fit.
 
Do you have a mentor? Every successful person has had a mentor to guide them. Of course you need to be careful, who you take advice from. You want to find a mentor who has been where you want to go, and has had the hurdles you are going to run into. Many people would be extremely happy to mentor you and pass on their knowledge. However, you need to ensure you do not waste their time. Successful individuals do not like sitting down with someone, only to have them do it their own way anyways. 
 
There are many other ways to help you reach your goals for 2014. Take the time on your goals before you commit fully, to ensure they are really what you want. Once you have them down on paper, sign it and do not let any excuse get in your way to achieving the satisfaction of attaining your goals!!

The Difference Between Successful and Unsuccessful Realtors

There is a key difference between those who are extremely successful in business and Real Estate to those who are unsuccessful. It all boils down to their mindset. Successful people actually think differently than most of the people in the world today.
 
So what are some of the key things you can do today, that can start to change your mindset and put you in the frame of being successful?
 
One habit you can start with, but can be hard to change, is that of changing the vocabulary you use everyday. There are many words that we use in your everyday exchanges with other people, and even yourself, that will limit our success. Many people are not even aware of how often they use these words, so it is mostly becoming aware of the words we use everyday. These words are ones that have negative connotations. Words like "can't" are extremely detrimental to success. Once you start to say you "can't do" something, you actually convince yourself it is true. Millionaires do not have the word "can't" in their vocabulary. Instead they think "HOW". This starts their mind focusing on creating solutions vs. just shutting down.
 
Another simple sounding change (yet takes a lot of practice) is changing your daily energy level. Successful individuals operate at a level of high energy everyday. High energy people are contagious and can uplift and motivate those around them. When you are operating on low energy, your mind will not necessarily get into the creative mode it needs to be in to find solutions, and it will be easier to put task off till later. So you need to find out what it is that boosts your energy from the moment you rise out of bed, and can carry you throughout your entire day.
 
Millionaires feed their brain every day. Once you finish High School or College, does not mean you are done learning. Education is an ongoing process, especially if you would like to be successful. There is always something new you can learn. There are many great books, audio tapes, and seminars you can attend that will give you the new information you need to stay up to date. There are actually many great resources on mindset itself that go into much further detail about what the most successful people do on a daily basis. Always be feeding your mind everyday!
 
Remember, it starts with you! You can either choose to be successful or you can choose not to be. It is all in your MIND!