Real Estate Investing Update Amidst COVID-19

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Every Monday at noon, CREIC members have a live call where they get coaching and market updates. While we don’t normally share these recordings with the public, we thought that during these unprecedented times that it would be good to share with everyone.

Highlights from this session:

  • The market is in turmoil–appraisers are on the front line for determining real estate value at the moment amidst the confusion of what properties should be worth. This can potentially open up some great opportunities for us as investors. However, more importantly than ever, we need to ensure that we are creating win-win-win solutions for everyone: There will most likely be a huge increase of people in distressed selling situations and we can still help them–you and your investors (CREIC members) can win too.
  • Now is not the time for evictions. Do what you can to cover yourself, but remember we need to help our tenants and take care of each other too. Contact your bank to apply for mortgage/loan deferrals so you can continue to allow your tenants to live rent free for awhile. Lenders should be offering up to six months deferral, but each lender is making their own terms for the moment until (hopefully) governments legislate a system-wide policy.
  • Prime rate has dropped, though this hasn’t translated to banks giving us a break–most likely to protect themselves from potential losses during this time …
  • However, Be ready with cash for deals. Opportunities that may arise during this time will most likely require fast action. Lending rates are so low right now that borrowing money is practically free. Take advantage of this now and refinance your home and properties if needed to be ready.
  • We, other investors, and CREIC members are ready for joint venture opportunities and will help anyone on a deal-by-deal basis. Bring your deals!

Interested in joining us? Visit the members website here.

Or, you can be notified when we have our next free event, open to the public (usually once a month). To assist in social distancing, our next event will be held virtually via a webinar.

The 5 Biggest Risks in Real Estate Investing

Is investing in real estate still worth it?

Many people are looking for ways to invest to increase their net worth and generate passive income. One of the biggest questions we’re regularly asked is about whether or not it’s a good time to invest in real estate.

In 2008, when the housing prices took a significant drop, people speculated that the bubble was bursting and it was a terrible time to invest in real estate because prices would continue to fall. In 2016 when values has nearly doubled what they were in 2008, and the government stepped in with new tax and mortgage rules to cool down the market, people thought that there was a bubble and it was a terrible time to invest because the bubble was going to burst.

Here was are now in 2020 and still no bubbles bursting. The real truth is that the trend in real estate is always upward. The other real truth is that you should be investing based on cash-flow if you want a recession-proof investment. At CREIC, we invest in real estate assuming that the market will drop and never count on speculation of the market. This is how real wealth is made.

Besides, what other type of investment will allow you to control 100% of the asset with only a 20% down payment?

That said, like any investment, real estate also has risks. By educating yourself and working with seasoned experts you can drastically minimise these risks, making real estate investing one of the least risky investment vehicles available in Canada.

Here are the top five biggest risks you could be faced with when investing in real estate and some basic strategies to mitigate these risks:

#1 Bruising your credit
Besides needing a mortgage to buy real estate, some investors will also borrow money from a line of credit for the down payment or renovations. While this may all be fine in practice, it’s important to be aware of how this may affect your credit score, which of course can also affect your ability to qualify for future mortgages. Be wary about using credit, and if you do make sure you stay on top of your payments and regularly check your credit reports.

#2 Over-spending on renovations
It’s easy to want to turn your investment property into a dream home for your tenants. However, it’s imperative that you stay within your numbers to make sure that it will still produce passive income and not go underwater (when the cost of the house/renovations/mortgage exceed the market value).

#3 Managing bad tenants
Generally speaking, the landlord-tenant laws tend to favour the tenants, so it’s important to be well-aware of these laws. Of course, it’s best to minimise these issues in the first place by carefully screening potential tenants. Credit checks can be very valuable in helping you screen. Having a solid lease agreement and carefully reviewing it with your tenants is imperative as well. CREIC members get complimentary credit checks for screening tenants as well as access to our tried-and-true lease agreements.

#4 Being sued
Being a landlord means you are responsible for any legals issues that could arise related to your property, which could include medical, personal injury, and other entitlements. As previously mentioned, a solid lease agreement can help mitigate some issues, but you will also want to consider insurance with adequate liability coverage.

#5 Losing your property
Accidents can happen and so can natural disasters and catastrophes, causing damage and destruction such as fires and flooding. Insurance will cover such disasters, but you also need consider loss of rental income, which certain policies will cover as well. Also, don’t be a slum-lord and risk having the city raze your property due to public safety concerns.

The Canadian Real Estate Investment Club is operated by seasoned, active real estate investors. Our mandate is to help new, prospective, and other seasoned investors minimise their risks and maximise their cash-flow and net worth. We believe it’s always a good time to invest in real estate because of our recession-proof investment strategies which have proven lucrative through various market scenarios over the last 15-20 years. Furthermore, the Canadian Real Estate Association (CREA) is forecasting a 7.5% increase in sales activity for 2020. What are your goals for this year?

Come visit us at our next meeting on Tuesday, January 28th from 6pm-9pm.

 

If you have already registered, fantastic! Otherwise, information is below. Be sure to reserve your seat early, as we have limited space.

Looking forward to seeing you soon!

Brian d’Eon & Ranjit Dhaliwal

Reserve a Seat Now

CREIC Monthly Event – Official Club Meeting

  • CREIC HQ – 40 Maritime Ontario Blvd, Suite #33, Brampton, ON
  • Tuesday, January 28th, 2020
  • Guests/Members: 6:00pm – 7:00pm
  • Members Only: 7:30pm – 9:00pm
NOTE: Please bring a copy of your invitation (after you RSVP) sent to you by email with the QR code (mobile phone is okay) in order to speed up registration process.
Reserve a Seat Now
– CREIC Launch Event Meeting, May 29, 2019 @ CREIC HQ
 

 

CMHC Housing Market Outlook 2019

Housing activity is expected to recover after declining in 2018 and 2019.

“Housing starts are projected to stabilize in 2020 and 2021 at levels in line with long-run averages. This follows two years of declines from elevated levels in 2017. Resale activity and house prices are expected to fully recover from recent declines, supported by growth in income and population.”

View the full report in the CREIC Members Resources Area.

Mindset is the #1 “Secret”

PIC Expert PanelAt the Club meeting in September, 2017, real estate investment experts were asked their opinion on the #1 “secret” to becoming a millionaire.

On the panel from left to right: Cora Cristobal (Toronto Women’s Club), Amit Ambegaonkar (Your Profound Success), Terry Stallwood (PIC Winnipeg), Brian d’Eon (Canadian Wealth Masters), Sadhana Sabharwal, Bogdan Marzewski, Robert Elder (Millionaire Possibilities)

“I’d have to say Mindset,” replied Brian d’Eon, of Canadian Wealth Masters. “… you have to believe that you will … you have no other choice! Having the right mindset affects your approach to everything in your life. Your door is always open for opportunities to have money flow your way.”

As Henry Ford once said, “If you think you can, or you think you can’t–you’re right!”

 

From Zero to A Million–Brian d’Eon on the Experts Panel

At the next Club meeting in Mississauga on September 30th, 2017, Brian d’Eon (Canadian Wealth Masters) will be a special guest featured on the Experts Panel.

This is an event not to be missed! Learn from the experts–and those who went from net worth of $0 to over $1M in 24 months with real estate investments.

Do You Want To…
==> Learn how to make money in real estate in the current risky times?
==> Know if you should still buy properties in the Toronto area?
==> Know how to go from 0 to a Million in 24 months?
==> How to buy properties even if you don’t have lot of money or a good credit?
==> Get access to joint venture partners or private money?
==> Get access to cash flowing properties?
==> Come join me at the next exclusive PIC meeting in Mississauga.

Discussing Mortgage Rules with the Minister of Finance

Bill Morneau

from left to right–Bill Morneau (Finance Minister), Brian d’Eon, Ranjit Dhaliwal

Tonight we met with the Finance Minister, Bill Morneau, to talk about the impact of the recent changes to the mortgage rules. He advised there are no plans for further tightening and was happy to hear from us that housing prices have started to soften, which was their intended goal. I stressed my concern about CMHC pulling bulk insurance and the impact it’s had on the smaller (mono line) lenders and the eventual impact of higher costs for borrowers, due to lack of competition. Essentially, he said he had no choice but to slow down the drastic increase in house prices–what the government perceives to be the number one threat to the Canadian economy.

Jack Canfield in Toronto

Canadian Wealth Masters recently had the pleasure of a visit from Jack Canfield in Toronto. Jack is a real inspiration to everyone, with profound wisdom to share on how to be truly successful in whatever you choose to do!

Working with people from all walks of life, from full-time moms to CEOs at large companies, I’ve distilled many universal truths about success. There’s a secret I’ve learned that works quite well at helping you to achieve what you want: Decide what you want. —Jack Canfield

Successful people maintain a positive focus in life no matter what is going on around them. They stay focused on their past successes rather than their past failures, and on the next action steps they need to take to get them closer to the fulfillment of their goals rather than all the other distractions that life presents to them. —Jack Canfield

If you are not moving closer to what you want, you probably aren’t doing enough asking. And you’re probably not asking the single most important question that can help you achieve a higher level of success and personal fulfillment: How am I doing? —Jack Canfield