Have you ever stopped to think about what’s actually driving the demand in our housing market?

There are obviously a number of factors that go into it, but why do people keep paying higher and higher prices for homes, and when…..if ever, is the bubble going to burst?

Depending on your mind set, here’s the good, or bad news… It’s not a bubble. 

Home prices in the GTA have been steadily rising for 20 years or more. 

Why?

Because Toronto is just catching up with the rest of the world. Compared to other world class cities, Toronto has been undervalued for a long, long time, and it’s not going to get cheaper any time soon. 

Today on the “Investment Property Income” Podcast, we take a deep dive into the economic drivers in the market, and how you can take advantage of them. 

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Have you ever wondered what the bank’s number one investment is?  

It’s you.  

More specifically, they invest in your ability to repay a mortgage to them. They study the borrower, assess their risk, decide whether or not they’re going to lend you money to buy your house, and set up a nice 25 year income for themselves.  

So if the banks think mortgages are such a great investment, why don’t they offer them to you as an investment option?  

In fact, if you walked into the bank and asked them if you could participate with them in lending mortgages, they’d probably look at you pretty funny, right?  

Then of course there’s the complete opposite of that. We’ve all heard of someone’s rich uncle Terry that lends people mortgages, but then he ends up owing their homes, and making his money with the “loan to own” mentality.  

The good news is, there’s a happy medium… Mortgage Investment Corporations.  

You’ve probably heard us talk about Mortgage Investment Corporations, or MICs (pronounced micks), as a source for alternative financing, but did you know that you can invest in them too?  

MICs are a great alternative investment. They offer security that you only normally find in GICs and Bonds, with returns you don’t see almost anywhere else. It’s a truly passive investment in real estate, and the best part is… they don’t charge fees!!  

Your return is actually yours!  

On today’s episode of the “Investment Property Income” podcast, dig deep into both sides of the Mortgage Investment Corporation world. You’ll definitely want to listen and learn about this investment option. 

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With the price of lumber through the roof, a lot of folks have been putting off renos because they’ve just become too expensive. But will the prices come back down?  

Who knows?  

What I do know for sure however, is there’s a ton of ways to access money to get renos done. Whether it’s a new home, a flip, or an upgrade to the home you live in, there’s a whole bunch of options to get the funds you need to complete your reno project.  

Today on the “Investment Property Income” podcast, we’re talking about all sorts of strategies to get your reno done, and hopefully increase the value of your property at the same time.  

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Today we get to chat again with Jen Robertson, from Royal LePage NRC, and I actually got really excited during our discussion... for three reasons.  

First, Jen is awesome! She really knows her stuff, and she’s just plain fun to talk with. We had a great time having her on the show.  

Second, I got to learn something new. As long as I’ve been in the business, there’s always more to learn, and that always gets me excited.   

Lastly, what I learned about... the Niagara Homeownership Program.  

I was not aware of the forgivable loan that the Niagara Region has in place for first time home buyers. It’s a local incentive only offered by the Niagara Region, for area residents. It’s a replacement for the federally offered First Time Home Buyer Incentive. Unlike the federal program, this doesn’t have to be repaid... under the right circumstances.  

And it’s just over $23,000 of FREE money!!  

What’s crazy is that only a local would know this. Which just goes to demonstrate the importance of working with a local realtor. They truly know what’s available to their clients in that particular area.  

I mean, I’d be pretty happy if somebody gave $23,000.  

Learn all the details from Jen, on today’s episode of the “Investment Property Income” podcast.  

www.guidetothegrind.com

Ok, I know it’s no secret that the pandemic has made the world go mad, but what the heck is going on out in the Niagara Region??

Ontario’s wine country is catching up to Toronto, but it’s done in one year what Toronto has done in the last fifteen or twenty.

Prices have risen 36% on average in the region this year alone!

With the higher home prices come higher rents. This leads to the age old debate of "when’s the best time to get into the market?" The prices are higher, but so are the rents, and the interest rates are the lowest they’ve ever been. 

So is it a good time to buy in Niagara?

We’re very fortunate to have an expert in Niagara Region real estate on this episode of the “Investment Property Income” podcast. 

Jen Richardson is a realtor with Royal LePage NRC, and has been serving the area off and on since the 1980’s. She shares her insights and success strategies in this great edition of the show. 

www.guidetothegrind.com

I’m sure by now you’ve heard all about the new changes to the “Stress Test”. It’s been all over the news, and I’ve already heard it explained a thousand different ways…..and really….it’s not that big of a deal. 

At least, if you learn to think like a lender. 

See, banks are investors just like you and I. They have way more money, and a ton of people that work for them, but at the end of the day, they follow one simple rule. The same rule that every investor has followed since the dawn of time. The number 1 rule in investing… 

... don’t lose money. 

Whether you’re lending your crazy uncle $20 and he promises to pay you back $25, or lending $1,000,000 on a home at 2%, the same rule applies. No one wants to lose money. It’s no fun. 

The number 2 rule in investing?

Make a return on your investment. 

There’s a few other rules that can be applied to most investments, but these two laws of investing are universal. What’s not universal is how lenders go about assessing the risk related to their investments. 

For instance, the A banks want to know that the people borrowing their money are good at making payments on time and in full. So they look at the credit history of the borrower first. 

Whereas a private lender will most likely look at the equity in the property first, then how the payments are going to be made. Even if it’s the same property, and the same person borrowing the money, the criteria for the lenders are completely different. 

Learning to think like a lender will help you get more deals closed, and ultimately make you more money as a real estate investor.

Of course, as you’re learning and growing, it’s best to use a broker who knows what they’re doing. There’s no limit to the amount of deals that can pass right by an investor who doesn’t know which lenders are looking for what. 

If you haven’t guessed, today’s episode of the “Investment Property Income” podcast is all about understanding how lenders think, and what they look for. This will help you get more deals closed. 

www.guidetothegrind.com

Over the years, one of the most important rules I’ve learned in business is, trust your gut!

I remember having dinner once with a very prominent businessman, and he told me, “If you get a gut feeling about someone, trust it. It’s actually your subconscious brain referencing old information. You might not know exactly what it’s referencing, or why, but you’ve seen something like this before, and it didn’t end well.”

One of the most important things to me in my business is, working with people I like and trust. 

That’s one of the best things about the real estate business!

I get to choose the team I work with. If someone is too pushy, doesn’t communicate well, or just generally doesn’t mesh well with myself, or the team people I work with, I don’t have to work with them. 

Now of course, from time to time we all have to work with someone we may not completely mesh with. But, unlike a job, I don’t have to work with them long term. 

On today’s episode of the “Investment Property Income” podcast, we’re talking about surrounding yourself with the right team of people. Choosing them on their strengths, communication, and whether they’re a good person or not. After all, why work with people you don’t want to, when you don’t have to?

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I was asked this week “What’s the difference between the First Time Home Buyer’s Plan, and the First Time Home Buyer’s Incentive?”.

  This really made me think, because I haven’t heard of it in a while. In fact, I’d pretty much forgotten about it. 

 When Geoff asked me the difference, it brought up some old strategies that I haven’t used in a while, and led to today’s episode of the “Investment Property Income” podcast.

 We go deep on this one, and I even changed Geoff’s mind on why the First Time Home Buyer’s Incentive can be such a great thing for folks just getting into the market. 

This is an important one for anybody thinking about buying their first home!

www.guidetothegrind.com

Have you ever heard the quote, “If your why is strong enough, the how doesn’t matter.”?  

I remember hearing it many years ago when I first started to learn about sales. It didn’t really resonate with me back then, but it’s something I’ve never forgotten.  

Then, on today’s episode of the “Investment Property Income” podcast, Geoff started asking me questions about how I got started in the real estate and mortgage business. Once we started talking about the beginning, something almost magical happened. I started to feel the old feelings I had when I was brand new in the industry.  

Since recording this episode, I’ve been truly inspired. It’s amazing how much that saying resonates with me now. Reconnecting with the reasons why I do this business has really sparked an energy in me that I haven’t felt in a long time.  

I encourage you to take the time to look at your goals, re-examine your “why”, and don’t sweat the rest. Once you really connect with the reason why, the how won’t be an obstacle anymore. 

www.guidetothegrind.com

Have you ever had a massive project ahead of you? I mean one that’s so big, you just look at it and say, “I don’t even know where to start.”?  

We all have at one point, right?  

That’s when all of the little voices in your head start to kick in. The ones that make you procrastinate, think you can’t do it, start to bargain with yourself, and eventually either get started, or tell yourself you can't do it, and forget it ever existed. (Although it's always there in the back of your mind.)  

Unfortunately, this is the same thought process that stops so many people from becoming investors.  

You see, the challenge is that the goals seem so big, and so far out, that most people don’t bother getting started. It’s just easier...at least in the beginning.  

Jim Rohn said it best, “We must all suffer from one of two pains: the pain of discipline or the pain of regret. The difference is discipline weighs ounces while regret weighs tons.”  

So how do we gain the discipline to begin?  

Break it down into small, manageable steps. A lot of folks want to start by buying a multi-family residential property, and retire on the residual income it provides. While that’s totally possible with enough experience and time, it’s not where you start. 

You start by reading a book. Go to a meetup. Attend a course. Contact a realtor. Talk to a mortgage broker….listen to our podcast.  

The first step isn’t buying a house. The first step is learning about real estate. Gathering information. Cultivating discipline through other people’s experiential knowledge.  

This doesn’t mean you won’t make mistakes along the way. It happens to even the most savvy of investors. But it does mean that by creating a discipline, first around your knowledge gathering, then around your investing strategy, you'll be taking it one step at a time, instead of trying to tackle the entire thing at once. 

Dreaming big is important, and it’s what keeps people going once they take those first steps, but without a disciplined approach in the beginning, you’ll never get to your ultimate goal.  

Today on the “Investment Property Income” podcast, we’re talking about the psychology of getting started, versus the psychology of dreaming big. Learn which one to use when, and create a solid strategy to avoid feeling overwhelmed in the beginning.  

www.guidetothegrind.com