hey everyone this is stefan from
projectlifemastery.com and i'm being
joined if my brother andreas yet again
this time we're gonna dive into real
estate investing my brother has been an
active real estate investor for many
years built a multi-million dollar
investment portfolio I use a lot of
experience you buy a land he buy
residential properties do you want to
share with people you know when did you
first get started with real estate
investing yeah so I in my probably a
boat I think my first property I bought
it was about 27 years old 26 27 years
old but 14 years ago I bought a I bought
a townhouse or condo townhouse with with
my partner and and we were conservative
we were looking for a place that we
could rent out so we weren't gonna
overcome and ourselves something that
we'd be able to you know do some spruce
and not spend a lot of money on Renaud's
so we were looking for a specific kind
of purchase and was gonna be easily
rentable so location was very important
um you know not having rental
restrictions was important and and so so
that's how it where I started we
primarily wanted I rent it for about
eight months and I said I'm not doing
this and if you lived there I mean not
this one I rented another place in
Vancouver first for about eight months
and I said to my partner I said I'm not
doing this I'm just throwing money away
yeah I mean the minimum let's buy a
place and own it ourselves and and and
that's how I felt
now I was heavily influenced because I
had a British mentor from the UK who had
a massive portfolio over 100 properties
in Vancouver he had retired at 35 years
old he was a before that he owned car
lots and he would bike used cars fix
them up and then then sell them on his
lot and so he kind of took that model
into the real estate and kind of bought
all over Vancouver started 40 years ago
and so when I've gone into construction
I got him as a client and and and and
was just mesmerized of where I want all
these jobs and he owned all these
properties from condos to townhouses to
houses and and so I kind of just said to
him I said would you mind men
and and you know I'm gonna hope that I
can make some money and then you can
guide me into that and he essentially
just took me under his wing and and he
would call me and he would send me
articles and and and he would spend time
with me and there was a cost of course
and so I paid it I paid a cost for that
boy as I started to accumulate
properties the cost seems so small
relative to what I was doing
and so when I bought my first place you
know I down with him and he gave me tips
on on you know this is you gotta watch
for this you know you got to get this
you got you so he gave me a list of five
or ten things and and we bought our
first place and I still have that place
fourteen years later and it's beautiful
so you know things like by the water you
know make sure as transportation Jo
transit you know I always try to get
like a two-bedroom instead of a
one-bedroom because then if economic
times get really tough you can rent a
two-bedroom at the 1-bedroom price and
and have competition and eliminate the
one so he gave us tips like that so that
was so valuable in my mid-20s going into
this new business and having someone
that I could just pick up the phone and
and and spend a half an hour with or get
together and so it started with cheap
investment spend one hundred forty nine
thousand on my first place you know it
was a two-bedroom one-bathroom and
beautiful area block away from the ocean
that you know close to all amenities and
on the nice part of the city a suburb
outside of Vancouver and but I knew in
my mind that that was just gonna be a
temporary yeah I was gonna fix it up
certain point and then move into the
next place so how many properties have
you have now right now I'm coming up on
ten that's a mixture of residential and
land so I've shifted now in my golden
years yeah just my lifestyles changed
and so I decided to go with something a
little bit less less maintenance and
just look
not so short-term like raw land can be a
leaving longer term investment than
maybe houses and realist and rental
properties I'm just looking at it I'm 40
years old I'm gonna look for something
like 2025 years old and no maintenance
you know you buy it outright you sit on
it pay your property tax and it's real
simple so what is what's kind of like
the overall strategy that you had and I
know it's maybe kind of evolved since
but it was it mainly like you're looking
for properties that you know the
basically the rent can pay for the
mortgage the insurance all the expenses
or at least either breaking it even or
are you looking for like a positive cash
flow on that like a passive income from
it and is a strategy just to hold them
in either the value goes up and sell
them at some point or you pay off the
mortgage and you just get the passive
income yeah for me
like for a lot of people I know they try
to create a passive income from it for
me it was about because I had a I had a
career with construction I was making
money and so for me it was trying to put
the least amount as a downpayment which
meant that your mortgage payment will be
a bit higher so I just wanted to break
given I wanted whatever rent come in to
pay my expenses my mortgage my taxes
whatever cost was associated even when
my cash flows broke and even a lot of
people don't realize that is that you're
still accumulating equity because you're
turning around you're paying your
mortgage and part of that mortgage is
principal so you've got principal that's
growing every single month even though
you don't see it you only see it if you
pull that equity in refinancing or down
the road when you sell it so for me I
was flying with just breaking even on
paper but I knew that equity was
accruing at the same time I was having
capital appreciation right the land was
going up real estate the houses and so I
was banking on really making the most
money from that side of things but of
course when interest rates go down and
you refinance your mortgage goes down
and so I started to see a positive cash
flow from it so interest rates play a
big role and how much you're borrowing
how far you're advertising there are a
number of variables that will determine
your cash flow if you can have a
positive cash flow which anybody can
depending on how much you put down yeah
and maybe there's certain markets that's
probably easier like an
Coover looks like it's pretty tough to
do that like there's probably markets
out there if you wanted to find you know
find around yeah like now I've moved
away two years ago and I've moved five
hours from Vancouver and it reminds me
of when I started because when I started
I could buy a place for 150,000 yeah and
where I live now there are houses I can
buy for two for a quarter of a million
and I can rent that out and easily cover
whereas you can't buy hosting Vancouver
for under six seven hundred thousand now
right so you you have bigger capital
upfront the interest rate plays a bigger
role on the amount you're boring the
equity so there it's much tougher in in
Vancouver to make that work as an
investor but you know this video is
gonna go out to how many people and
they're gonna be all over the world and
so you might be living in a different
country a different city where you look
around and the basic principles are all
going to apply the same is just make the
numbers work if you can make the numbers
work cover your expenses capital
appreciation land is always gonna go up
if you look at the history of time land
is always going up it'll be pull backs
but it over 10 20 30 40 it'll always go
up yeah I know I know I for me I bought
my first property I think when I was 25
years old or so and you definitely
helped me a lot with that process too
but I'm in the process right now
refinancing it and taking out the equity
and then using that eques equity to two
other investment purposes and stuff so
it's a it's it's amazing how I mean real
estate it's just another asset like
maybe talk about being diversified and
everything but it is an asset that you
know it is always gonna go up in value
hey we'll well I mean you know it's
tough to make it as a primary business
like you know because you need capital
so to go and buy 10 properties and then
to live off of that income becomes
really challenging but if you have the
ability to have extra income I mean
nothing beats diversity so while you're
grinding in a job or a career being an
entrepreneur you know taking five
thousand or ten my first place I bought
for 150 I put five grand down as a down
payment that was it and and that place
today is my neighbor selling for over
400
so I've seen a $250,000 appreciation
even more because mine would be worth
more in over a decade but at the same
time I've had my mortgage paid down over
that decade and I've pulled that equity
out and I've invested it in other
vehicles and I'm making money off equity
that you know it's just sitting there
still growing so you know it diversity
for me I knew that I was going to be
immersed in my construction in my other
businesses so for me I just wanted to
invest it and let time you know work for
itself and can just have appreciation so
for a lot of people that have some extra
money and you know already have a place
for themselves then diversify even safer
people that are young that not
necessarily maybe own their own place
like you did rent rent a place where if
you had bought that place it would've
cost you an arm and a leg so you can
enjoy the lifestyle at a lower cost and
commitment and invest in real estate
where you're renting it out and and you
know where the numbers work so it's
largely using leverage right because
you're and we can talk about that but
you're using the bank's money yeah right
you're putting down the minimum down
payment maybe it's more different based
on where I guess we're you know yeah
where you might live maybe in the u.s.
it might be different in Canada and
everything but you're trying to borrow
that you're getting a low interest rate
and you're just having that cover they
expect you to the equities going up and
then I guess how would you be able to
scale that would you as obviously you
have to have good credit you have to I
mean you'd have to have you know you
maybe be limited in how much you can
borrow from the banks at a certain point
because there's certain factors oh look
it's all about leverage because you know
you look it back at myself the first
place we bought it was only hundred
fifty thousand so we didn't need a lot
of credit to buy that place
were you is it maybe because you weren't
able to borrow more than that or as they
go no no we we just found a great deal
and we didn't want to go in too much
because we wanted to be able to just fix
it
renting it within a year and move on to
the next the second year I'd bought the
second year too I bought a house for
three hundred twenty-five thousand and
big shift from 150 325 but it had a you
know residents upstairs you know three
bedrooms
through a kitchen and downstairs a
how-to suite so when I did the numbers
it wasn't the best area and that was
something my mentor always say says you
cannot have an emotional attachment to
an investment if it's gonna be an
investment you're in a rent oh the
numbers have to work so I sat down I did
the numbers and when I could when I look
at the rent that I was collecting
downstairs and the fact that a house
doesn't have strata fees and you know
HOA in the United States things like
that then I was actually gonna save
money and we were gonna have a bigger
place a yard a garage and land what a
house we'll always appreciate more than
a condo you know town else will
appreciate more than a hotter than a
condo so I said let's do it so we jumped
in but at that time when I did it I
didn't even know I was still in the
family I was leaving the family business
and I was starting my own business so I
didn't really have credit so I had to I
had to leverage myself and manipulate
the bank's to believe what I had right
and that was by building a good
relationship with a financial with the
with a bank manager letting him have
access to my business accounts so he
could see the progress of the revenue
now things have gotten tougher here in
Canada for instance in regards to all of
that they're they're much more stringent
why I just heard in the United States
for example that Trump just did easing
on bank and lending so it's even easier
now to get mortgages in the u.s. than it
was past the subprime he just released
that a couple weeks ago so in the United
States for example it's a lot easier for
someone new to get a mortgage where
after the subprime problem it was really
hard and there's places all over the
world that are gonna be easier than
Canada Canada they have a fear there's a
little bit of a bubble and so they're
trying to control it and they make it
tougher for lending but back when I was
doing it 14 12 14 years ago it wasn't as
highly regulated so I could find ways to
you know whether I borrowed money from
someone and through to my bank and let
the bank see it so I had the money and
then throw it back in so I did
strategies like that just to impress the
bank's so that they would lend it to me
now I over leveraged myself I took risk
right but I believed like my mentor just
said it's land I've got 100 properties I
have a lot more to lose than your one or
two right and I'm not getting out of it
so so long as you can just grind it out
and get and you'll be okay right
and so I believed in here
and I went all-in and I did that now it
got easier as I accumulated a couple
properties because the the values
started to go up and I had equity so now
I could go back to the bank refinance
like you pull the equity out and that
was a down payment for the next place so
I guess the long term term strategy I
mean if you're holding it long term
they'll will probably be times that it
will go down oh for sure and what's your
mindset when that happens there's a lot
of people they might panic maybe they
need the money which may shouldn't be
investing in things like that well I
give you a story had a great story I was
in a situation one of my townhouses
where my neighbor he got into a battle
with a strata I bought over a parking
spot this is crazy and was he had argued
that when he bought the place he got two
parking spots and in fact strata said no
we only get one everybody gets one and
he put just park his cars there so
strata retaliated and towed his car and
then he would put his car there and it
was so then all these towing Bill's got
racked up and finds the strata would
find him and so then he sued the strata
over this situation make a long story
short a five year lawsuit that was like
a fifty dollar parking ticket turned
into basically at a foreclose on his
house two hundred thousand dollars on
his house so we had foreclosed I had
bought that place for two hundred fifty
thousand and he was foreclosure you
couldn't pay went bankrupt you know they
had to could get a bailiff to remove
them the court no court order and and
then the strata took over it and then
had to sell it well of course they were
just trying to sell it so now they
dumped it at one hundred and seventy
five thousand and I had seen my place
that I bought for two hundred fifty if I
wanted to sell it now is 175 and so I
was like oh my god the bank could recall
their loan they could come to me today
and say we want our money because this
is not value now here in Canada they
don't typically do that in the United
States very different they're a little
bit more tough on that but in Canada
they as long as you're making your
payments you're fine
so I wrote it out well today that place
is over six hundred thousand dollars
right and and so I mean that was maybe
years ago and how much it's changed and
now it's not part of the minutes anymore
because here they keep a record for two
years minutes and you have to provide it
to the seller so there's no one even a
log of it anymore that what that
happened in that building and he's long
gone
and that's just history but it was a
scary time because it was like I I
didn't know if they had recalled it I'm
thinking kid where am I gonna pull this
money to pay off because my mortgage was
higher than then what the place was
worth right now yeah so what what advice
would you give to someone that is
looking to invest in real estate I mean
obviously you have to take a step back
first make sure that financially you're
managing your money properly you know
you have some cash flow for that maybe
you even have money just kind of
factoring in some additional costs legal
fees or even repairs and whatnot but I
guess at what point would someone be
ready and prepared to be able to focus
on okay I'm ready to buy a place ready
to buy a place if you are so the easiest
way to get into the market is to buy a
place for yourself okay if you're in a
position where you're paying rent then
you probably are in a position that you
could buy a place your biggest challenge
is gonna be that down payment but
nowadays we live in a world where credit
is quite easy in a lot of areas where
you can maneuver that credit around for
that down payment I think the key is
don't overextend yourself so if you're
paying $1,000 rent
look for a place that in the end you
have minimal down payment and you're
paying $1,000 in rent and I think that
most people like I said I bought my
first place hundred fifty thousand put
five thousand down my girlfriend put
five thousand dollars down so ten grand
and a lot of places not in Canada and
now because they have a higher down
payment but in the United States or in
Europe and think you can get away with
that still five ten percent down I think
a lot of people want to have the bells
and whistles and that is when real
estate doesn't work for you they want
the beautiful counters and this going to
be sacrifice going back to the sacrifice
right you got to look at it and say I
can keep paying my rent which I'm making
land
rich which is fine by me or you know
because I'm a landowner but our landlord
or you can look at and say I'm paying
down some equity and then after some
time that equity grows and you could
pull that equity and maybe you can
upgrade your place right where you can
buy a bigger place for yourself a nicer
one and then rent out the place below
yeah you might typically have to make
that sacrifice because you know you know
a thousand bucks a month rent might be
you know you might get a lesser place if
you're to buy it yourself maybe you have
to move out in the suburbs yeah but more
that's a sacrifice right and and I did
that I had friends who would go and buy
places for five hundred thousand dollars
in the city and I looked at and said
this is short term for me I'll be able
to live wherever I want ten years from
now so I'm just gonna move 20 minutes
out go over a bridge buying the nicest
area there at one-third the cost and
I'll be able to rent it and let it pay
for itself and then I can move on and
that's what I did I bought a townhouse
and then I moved into a house and then
after a house about a couple of
investment properties and then I moved
into a nicer house yeah live there for
five six years and then I built my home
out there so I progressively did slowly
scaling slowly scared now another key
thing is my mentor told me at the very
beginning he says for entrepreneurs we
don't have a pension so we're always
thinking about our long-term he says
when you own real estate and you rent it
out it's an indexed pension because it's
always gonna demand the rent that people
can pay so if the city and that's what
we experienced in Vancouver if wealth
goes if the city becomes expensive rent
goes up with it right and that's what
we're seeing here is rental rents are
blown out of the roof and it's become
crazy and that's because the city has
done so well and the land values have
gone up and the landlord's can attract
more for rent and then the rent goes
down because less people can afford and
like right now there's very little
vacancy it's hard to find a place to
rent so it'll always be indexed with
what people can afford in the area that
you live in okay and and inflation
occurs 2% almost every year so your
rents always going up and whereas as an
entrepreneur we have to find ways to
create income when we retire and unless
we invest wisely it's
next yeah awesome so we are a little bit
limited on time so I wish I could talk
more about this but you do have a
coaching program too maverick maverick
coaching you do on Amazon and publishing
but you also do the really investing in
real estate side you want to share a
little bit about that component yeah so
it's a great program for teaching people
their options either the investing or
the real estate so real estate there's a
number of things you can get into you
can get residential commercial land and
so we cover that where we go through
what's gonna be a good fit for you
because as an investor you need to know
what you can stomach and you can't make
an investment you can't sleep at night
so we gotta find out what is good for
you in regards to your cash flow in
regards to your skill set how you can
save costs and now you can grind it out
at the beginning and then have options
moving forward in the investing program
the basic investing program once again
showing you your options from stock
markets to mutual funds to real estate
different types of options that you know
we find out what kind of investor are
you your risk taker
are you a media you know intermediate
are you conservative and then looking at
the different types of vehicles that you
can invest in in your country or abroad
and and and getting and taking action on
that after we figure out how much you
have and you don't need a lot like even
the investing program you can start you
started with twenty five dollars a month
remember when you got your first fun you
called us right yeah 25 bucks a month
old 18 years old and I got you to do
that right and and that and that was a
good feeling for you because you went
about your business a year later you had
this money yeah and you were motivated
to find ways to add more yeah so what's
with the website for them to learn more
same thing maverick publishing CA you go
there you go to the coaching section it
has all the programs and you can learn
more about it and you can always reach
out to me privately on Facebook and I
can answer your questions and get you
set up if you want to get into it
cool awesome well thank you so much so
check out maverick maverick Publishing
CA all the link below thank you guys for
watching well he'll probably do some
more videos talking about real estate
investing whatever you guys are most
interested in hearing from Andreas but
thank you guys for watching we'll talk
to you again soon
you
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