Today on the FI Garage The Mechanic and The Accountant have a beer and get to speak with Kevin & Jeannine, who use their RRSP’s to do second mortgage lending and consistently achieve +10% returns on their cash!

Introduction

Beer #1 – Sneaky Weasel by Balderdash Brewing (0:55)

Mortgage Lending

The RRSP Secret (2:10)Kevin & Jeannine Background (2:30)What is an arms-length mortgage (4:40)How the loan is secured (6:00)What accounts are eligible (8:10)Rate of return on the loans (9:10)Security on the loan (10:10)What you need to evaluate on each deal (12:15)Why lending instead of investing directly in real estate yourself (14:30)Minimum loan amounts (15:30)Term (16:00)Who are you loaning to? (16:30)How has this changed your path to Financial Independence (19:30)Doing loans outside of registered accounts (23:00)Example of how mortgages can be funded from multiple places (23:50)What Canadian banks will allow you to do this (25:15)Canadian Western TrustOlympia TrustFees related to loans (25:50)How long does it take to find a deal (33:35)How often does your broker send you deals? (35:30)Have you had to deal with and loan defaults? (36:55)Beer #2 – Big Surf Beer Co (45:00)We fire The Economist (46:30)What are the provincial differences with regard to foreclosure? (47:30)What are the steps in the lending process? (50:00)Would you sell index funds to start mortgage lending? (1:02:00)REIN – Real Estate Investment network