Our	
  Philosophies	
  
Make	
  financial	
  decisions,	
  NOT	
  emo3onal	
  decisions	
  
	
  
Time	
  is	
  EVERYTHING	
...
Success	
  Pyramid	
  	
  	
  	
  	
  	
  	
  	
  

7.	
  
Wealth	
  
6.	
  Equity	
  
5.	
  Cash	
  Flow	
  
4.	
  Risk	
...
Build	
  Your	
  Business	
  Like	
  a	
  Machine	
  
How	
  do	
  you	
  build	
  your	
  business	
  like	
  a	
  machin...
Build	
  Your	
  Business	
  Like	
  a	
  Machine	
  

What	
  are	
  the	
  first	
  steps	
  to	
  building	
  a	
  machi...
It	
  All	
  Starts	
  With	
  A	
  Plan!	
  

“He	
  who	
  fails	
  to	
  plan,	
  plans	
  to	
  fail”	
  
	
  	
  	
  ...
The	
  4	
  Way	
  to	
  Win	
  With	
  	
  
Real	
  Estate	
  
[ANCHOR	
  SLIDE]	
  
The	
  4	
  Way	
  to	
  Win	
  With	
  Real	
  Estate	
  

1. Passive	
  AppreciaTon	
  
[ANCHOR	
  SLIDE]	
  

2. AcTve	...
 

Investor	
  Tool	
  1:	
  Financial	
  Projec3ons	
  	
  
[ANCHOR	
  SLIDE]	
  
 

Financial	
  Projec3ons:	
  Scenario	
  1	
  
	
  
Buy	
  1	
  Property	
  and	
  hold	
  it	
  for	
  15	
  years	
  
...
Financial	
  Projec3ons:	
  Scenario	
  1	
  
Buy	
  1	
  Property	
  and	
  hold	
  it	
  for	
  15	
  years	
  
year	
  ...
AmorTzaTon	
  Schedule	
  

[ANCHOR	
  SLIDE]	
  
AmorTzaTon	
  Schedule	
  

[ANCHOR	
  SLIDE]	
  
Financial	
  Projec3ons:	
  Scenario	
  1	
  
Buy	
  1	
  Property	
  and	
  hold	
  it	
  for	
  15	
  years	
  
year	
  ...
[ANCHOR	
  SLIDE]	
  
Financial	
  Projec3ons:	
  Scenario	
  2	
  
	
  
Buy	
  1	
  Property	
  each	
  year	
  for	
  5	
  years	
  
	
  
[ANC...
 

	
  
	
  

Financial	
  Projec3ons:	
  Scenario	
  2	
  
	
  
Buy	
  1	
  Property	
  each	
  year	
  for	
  5	
  years...
Financial	
  Projec3ons:	
  Scenario	
  2	
  	
  
Buy	
  1	
  Property	
  each	
  year	
  for	
  5	
  years	
  
year	
  

...
ExponenTal	
  Growth	
  
	
  
“The	
  Snowball	
  Effect”	
  
[ANCHOR	
  SLIDE]	
  
ExponenTal	
  Growth	
  
	
  

Money	
  
[ANCHOR	
  SLIDE]	
  

1	
  

2	
  

3	
  

4	
  

5	
   Year	
  
Financial	
  Projec3ons:	
  Scenario	
  2	
  	
  
Buy	
  1	
  Property	
  each	
  year	
  for	
  5	
  years	
  
year	
  

...
Financial	
  Projec3ons	
  

	
  
	
  

	
  
You	
  can	
  do	
  this	
  for	
  any	
  combinaTon	
  of	
  
numbers	
  
[A...
2	
  Rules	
  of	
  Business	
  

	
  
	
  
[ANCHOR	
  SLIDE]	
  
1.  You	
  need	
  money	
  to	
  Start,	
  Operate	
  a...
Allocate	
  Business	
  Funding	
  
Allocate	
  Business	
  Funding	
  
OPERATIONAL	
  

TRANSACTIONAL	
  

GROWTH	
  
Allocate	
  Business	
  Funding	
  

“Funding	
  Mix”	
  

OPERATIONAL	
  

TRANSACTIONAL	
  

GROWTH	
  
Allocate	
  Business	
  Funding	
  
OPERATIONAL	
  

GROWTH	
  
TRANSACTIONAL	
  
Allocate	
  Business	
  Funding	
  
OPERATIONAL	
  

TRANSACTIONAL	
  
GROWTH	
  
Allocate	
  Business	
  Funding	
  

OPERATIONAL	
  

TRANSACTIONAL	
  

GROWTH	
  
Allocate	
  Business	
  Funding	
  
How	
  will	
  you	
  allocate	
  funding	
  for	
  
your	
  Real	
  Estate	
  Busines...
4	
  steps	
  to	
  finding	
  an	
  Income	
  
Property	
  
1. Sourcing	
  ProperTes	
  
2. Evaluate	
  an	
  InvesTng	
  ...
Sources	
  of	
  ProperTes	
  
There	
  are	
  two	
  main	
  sources	
  of	
  properTes	
  to	
  buy:	
  
[ANCHOR	
  SLID...
Sources	
  of	
  ProperTes	
  
1.  From	
  private	
  sellers	
  
• 

• 

They	
  find	
  [ANCHOR	
  SLIDE]	
  
you	
  
•  ...
Sources	
  of	
  ProperTes	
  
2.	
  From	
  professionals	
  
	
  
[ANCHOR	
  SLIDE]	
  
Your	
  Realtor	
  will	
  find	
...
The	
  Property	
  Search	
  
[ANCHOR	
  SLIDE]	
  
The	
  Property	
  Search	
  

1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 

8	
  ProperTes	
  to	
  look	
  for	
  
	
  
[ANCHOR	
  SL...
The	
  Property	
  Search	
  

1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 

8	
  ProperTes	
  to	
  stay	
  away	
  from	
  
	
  
[ANC...
The	
  Property	
  Search	
  
How	
  About	
  When	
  To	
  Look?	
  
	
  
[ANCHOR	
  SLIDE]	
   of	
  Week	
  
Time	
  
	...
The	
  Property	
  Search	
  
[ANCHOR	
  SLIDE]	
  
The	
  Property	
  Search	
  
[ANCHOR	
  SLIDE]	
  
The	
  Property	
  Search	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  

Become	
  a	
  local	
  area	
  expert	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
Divide	
  the	
  area	
  Sdata	
  into	
  three	
  categories:	
  
[ANCHOR	
   LIDE...
Evaluate	
  an	
  InvesTng	
  Area	
  

Past	
  

[ANCHOR	
  SLIDE]	
  

	
  
What	
  has	
  been	
  the	
  trends	
  for	...
Evaluate	
  an	
  InvesTng	
  Area	
  

Past	
  

[ANCHOR	
  SLIDE]	
  

	
  
Research	
  the	
  Data	
  
	
  
1.  Average...
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  

Present	
  

	
  
[ANCHOR	
  SLIDE]	
  
Research	
  the	
  local	
  Data	
  
	
  
...
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
[ANCHOR	
  SLIDE]	
  

Organize	
  the	
  Data	
  
Evaluate	
  an	
  InvesTng	
  Area	
  
Present:	
  
	
  
Compare	
  [ANCHOR	
  SLIDE]	
   other	
  markets	
  
the	
  Data...
Evaluate	
  an	
  InvesTng	
  Area	
  
Present:	
  
	
  
Compare	
  [ANCHOR	
  SLIDE]	
   other	
  markets	
  
the	
  Data...
Evaluate	
  an	
  InvesTng	
  Area	
  

Future	
  

	
  
[ANCHOR	
  SLIDE]	
  
Don’t	
  predict	
  the	
  future…	
  
	
  ...
Evaluate	
  an	
  InvesTng	
  Area	
  
	
  	
  	
  	
  	
  	
  Past:	
  Compare	
  the	
  current	
  local	
  market	
   	...
Evaluate	
  an	
  InvesTng	
  Area	
  
Where	
  to	
  Start	
  SLooking?	
  
[ANCHOR	
   LIDE]	
  
	
  
1.  Your	
  Budget...
The	
  80/20	
  Rule	
  
Approximately	
  20%	
  oSf	
  your	
  invesTng	
  decision	
  should	
  be	
  
[ANCHOR	
   LIDE]...
The	
  80/20	
  Rule	
  
[ANCHOR	
  SLIDE]	
  
It’s	
  more	
  important	
  to	
  get	
  a	
  good	
  
property	
  than	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
IdenTfy	
  the	
  EsTmated	
  Market	
  Value	
  (EMV)	
  
	
  
[ANCHOR	
  SLIDE]	...
IdenTfy	
  an	
  Income	
  Property	
  
IdenTfy	
  the	
  EsTmated	
  Market	
  Value	
  (EMV)	
  
	
  
[ANCHOR	
  SLIDE]	...
IdenTfy	
  an	
  Income	
  Property	
  
Income	
  MulTplier	
  
	
  
[ANCHOR	
  SLIDE]	
  
•  Easy	
  to	
  standardize	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
The	
  three	
  golden	
  quesTons:	
  
[ANCHOR	
  SLIDE]	
  
	
  
1.  Does	
  it	...
IdenTfy	
  an	
  Income	
  Property	
  
Does	
  it	
  CASH	
  FLOW?	
  
[ANCHOR	
  SLIDE]	
  
	
  
	
  
INCOME	
  –	
  EXP...
IdenTfy	
  an	
  Income	
  Property	
  
Does	
  it	
  CASH	
  FLOW?	
  
[ANCHOR	
  SLIDE]	
  
	
  
	
  
FORMULA	
  1:	
  	...
IdenTfy	
  an	
  Income	
  Property	
  
Does	
  it	
  CASH	
  FLOW?	
  	
  Example	
  
	
  
	
  
[ANCHOR	
  SLIDE]	
  
	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
Calculate	
  GOI	
  and	
  GOE	
  
[ANCHOR	
  SLIDE]	
  
	
  
GOI=	
  Total	
  of	...
IdenTfy	
  an	
  Income	
  Property	
  
GOI	
  
[ANCHOR	
  SLIDE]	
  
	
  
•  Rent	
  is	
  the	
  main	
  scheduled	
  in...
IdenTfy	
  an	
  Income	
  Property	
  
AMR	
  (Average	
  Market	
  Rent)	
  
[ANCHOR	
  SLIDE]	
  
	
  
•  What	
  are	
...
IdenTfy	
  an	
  Income	
  Property	
  
Does	
  it	
  CASH	
  FLOW?	
  	
  Example	
  
	
  
	
  
[ANCHOR	
  SLIDE]	
  
	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
Calculate	
  GOI	
  
[ANCHOR	
  SLIDE]	
  
	
  
	
  
GOI=	
  Total	
  of	
  all	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
Calculate	
  GOE	
  
	
  
[ANCHOR	
  SLIDE]	
  
GOE=	
  Total	
  of	
  all	
  oper...
IdenTfy	
  an	
  Income	
  Property	
  
Calculate	
  GOE	
  
	
  
[ANCHOR	
  SLIDE]	
  
GOE=	
  Total	
  of	
  all	
  oper...
IdenTfy	
  an	
  Income	
  Property	
  
Does	
  it	
  CASH	
  FLOW?	
  
[ANCHOR	
  SLIDE]	
  
	
  
	
  
FORMULA	
  1:	
  	...
IdenTfy	
  an	
  Income	
  Property	
  
Does	
  it	
  CASH	
  FLOW?	
  
[ANCHOR	
  SLIDE]	
  
	
  
	
  
FORMULA	
  2:	
  	...
IdenTfy	
  an	
  Income	
  Property	
  
How	
  Much	
  does	
  it	
  CASH	
  FLOW?	
  
[ANCHOR	
  SLIDE]	
  
	
  
	
  
CAS...
IdenTfy	
  an	
  Income	
  Property	
  
Is	
  the	
  CASH	
  FLOW	
  enough	
  for	
  me?	
  
[ANCHOR	
  SLIDE]	
  
	
  
	...
IdenTfy	
  an	
  Income	
  Property	
  
	
  
	
  

	
  

[ANCHOR	
  SLIDE]	
  

Time	
  to	
  introduce	
  Cash	
  On	
  C...
IdenTfy	
  an	
  Income	
  Property	
  
Is	
  the	
  CASH	
  FLOW	
  enough	
  for	
  me?	
  
[ANCHOR	
  SLIDE]	
  
	
  
C...
IdenTfy	
  an	
  Income	
  Property	
  
Is	
  the	
  CASH	
  FLOW	
  enough	
  for	
  me?	
  
[ANCHOR	
  SLIDE]	
  
	
  
IdenTfy	
  an	
  Income	
  Property	
  
Is	
  the	
  CASH	
  FLOW	
  enough	
  for	
  me?	
  
[ANCHOR	
  SLIDE]	
  
COCR=	...
IdenTfy	
  an	
  Income	
  Property	
  
What	
  is	
  your	
  TOTAL	
  ROI	
  on	
  $40,000	
  invested?	
  
	
  
[ANCHOR	...
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  NOI	
  to	
  determine	
  property	
  value	
  
	
  
[ANCHOR	
  SLIDE]	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
	
  
[ANCHOR	
  SLIDE]	
  
	
  
FORMULA	
  2:	
  	
  NOI	
  –	
  Mortgage	
  Payme...
IdenTfy	
  an	
  Income	
  Property	
  
	
  

[ANCHOR	
  SLIDE]	
  

	
  
Time	
  to	
  introduce	
  Capitaliza:on	
  Rate...
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  NOI	
  to	
  determine	
  property	
  value	
  
	
  
[ANCHOR	
  SLIDE]	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  NOI	
  to	
  determine	
  property	
  value	
  
	
  
[ANCHOR	
  SLIDE]	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  NOI	
  to	
  determine	
  property	
  value	
  
	
  
[ANCHOR	
  SLIDE]	
 ...
IdenTfy	
  an	
  Income	
  Property	
  
[ANCHOR	
  SLIDE]	
  

R

I

Net	
  Income	
  
Triangle	
  

V
IdenTfy	
  an	
  Income	
  Property	
  

CF

[ANCHOR	
  SLIDE]	
  

COCR

Cash	
  Flow	
  
Triangle	
  

CI
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  COCR	
  to	
  establish	
  your	
  budget	
  
	
  
[ANCHOR	
  SLIDE]	
  
...
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  COCR	
  to	
  establish	
  your	
  budget	
  
	
  
[ANCHOR	
  SLIDE]	
  
...
IdenTfy	
  an	
  Income	
  Property	
  
Using	
  COCR	
  to	
  establish	
  your	
  budget	
  
	
  
[ANCHOR	
  SLIDE]	
  
...
IdenTfy	
  an	
  Income	
  Property	
  
IdenTfy	
  the	
  EsTmated	
  Market	
  Value	
  (EMV)	
  
	
  
[ANCHOR	
  SLIDE]	...
The	
  9	
  Rules	
  of	
  Wealth	
  
What	
  is	
  Wealth	
  to	
  You?	
  
“The	
  real	
  measure	
  of	
  
wealth	
  is	
  how	
  much	
  you’d	
  
be	
  worth	
  if	
  you	
  lost	
  all	
  
you...
The	
  Rules	
  of	
  Wealth	
  
1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 

Anybody	
  can	
  be	
  wealthy,	
  you	
  just	
  h...
The	
  Rules	
  of	
  Wealth	
  
What	
  steps	
  can	
  you	
  take	
  TODAY	
  to	
  learn	
  to	
  be	
  Wealthy?	
  

...
The	
  Rules	
  of	
  Wealth	
  

What	
  can	
  I	
  do	
  TODAY	
  to	
  move	
  
towards	
  wealth?	
  
How	
  Does	
  a	
  Flip	
  Deal	
  Work?	
  
1.	
  Find	
  the	
  perfect	
  property	
  
	
  
2.	
  Increase	
  the	
  V...
Is	
  there	
  a	
  beler	
  
way?	
  
“Flipping	
  To	
  Yourself”	
  
1.	
  Find	
  the	
  perfect	
  property	
  
	
  
2.	
  Increase	
  the	
  Value	
  
	
  ...
STEP	
  3…	
  

Flip	
  it…To	
  Yourself	
  

Refinance	
  the	
  Property	
  
1.  Refinance	
  aJer	
  improvements	
  
2....
Case	
  Study	
  2:	
  Building	
  an	
  
Income	
  Suite	
  
[ANCHOR	
  SLIDE]	
  

One	
  of	
  the	
  best	
  tools	
  ...
Case	
  Study	
  2:	
  Building	
  	
  
an	
  Income	
  Suite	
  
	
  
Property	
  Shopping	
  	
  
	
  

Know	
  this	
  ...
Case	
  Study	
  2	
  
• 
• 
• 
• 
• 
• 
• 
• 

3	
  bedroom,	
  2	
  bath	
  1400squ	
  side	
  split	
  
Purchase	
  Pri...
Important	
  InformaTon	
  
Transparency	
  

	
  
This	
  does	
  not	
  happen	
  overnight	
  
	
  
You	
  must	
  cons...
4	
  steps	
  to	
  finding	
  an	
  Income	
  
Property	
  
1. Sourcing	
  properCes	
  
2. Evaluate	
  an	
  InvesCng	
  ...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
You	
  have	
  already	
  qualified	
  the	
  Cash	
  Flow	
  from	
 ...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
What	
  to	
  do	
  before	
  you	
  arrive	
  

	
  
[ANCHOR	
  SLI...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
What	
  to	
  do	
  before	
  you	
  arrive	
  

	
  
[ANCHOR	
  SLI...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
What	
  to	
  do	
  before	
  you	
  arrive	
  

	
  
[ANCHOR	
  SLI...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
What	
  to	
  do	
  before	
  you	
  arrive	
  

	
  
[ANCHOR	
  SLI...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
	
  

	
  

What	
  to	
  do	
  before	
  you	
  arrive	
  
[ANCHOR	...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
	
  

What	
  to	
  do	
  when	
  you	
  arrive	
  
[ANCHOR	
  SLIDE...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
	
  
	
  	
  

The	
  Walkthrough	
  
[ANCHOR	
  SLIDE]	
  

	
  
Re...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Exterior	
  

	
  
[ANCHOR	
  SLIDE]	
  
Prop...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Exterior	
  

	
  
[ANCHOR	
  SLIDE]	
  
Wind...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
	
  
• 
• 
• 
• 
• 
• 

The	
  Walkthrough:	
  Exterior	
  
[ANCHOR	...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Interior	
  

	
  
[ANCHOR	
  SLIDE]	
  
All	...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Interior	
  

	
  
[ANCHOR	
  SLIDE]	
  
All	...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Interior	
  

	
  
[ANCHOR	
  SLIDE]	
  
Bedr...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Interior	
  

	
  
[ANCHOR	
  SLIDE]	
  
Bath...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Interior	
  

	
  
[ANCHOR	
  SLIDE]	
  
Kitc...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
The	
  Walkthrough:	
  Interior	
  

	
  
[ANCHOR	
  SLIDE]	
  
Base...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
Following	
  Up	
  

	
  
[ANCHOR	
  SLIDE]	
  
	
  
•  Record	
  yo...
IdenCfy	
  an	
  Income	
  Property	
  On	
  Site	
  
LifeCme	
  Wealth	
  Academy	
  Decision	
  Making	
  Model	
  
[ANC...
MarkeCng	
  Plan	
  
MarkeCng	
  Plan	
  
Three	
  main	
  target	
  markets	
  

BUYERS	
  

SELLERS	
  

TENANTS	
  
MarkeCng	
  Plan	
  
MarkeNng	
  Blueprint	
  

1	
  
Research	
  

2	
  

3	
  

Test	
  and	
  
Measure	
  

Nurture	
  ...
MarkeCng	
  Plan	
  
Research	
  
	
  

•  What	
  is	
  your	
  market	
  looking	
  for?	
  
•  What	
  problem	
  are	
...
MarkeCng	
  Plan	
  
Test	
  and	
  Measure	
  
OpNons	
  

FREE	
  
AdverNsing	
  

PAID	
  
AdverNsing	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Kijiji	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
BulleCn	
  Boards	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Social	
  Networking	
  
•  Facebook	
  
•  Twifer	...
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Property	
  Sign	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Bandit	
  Signs	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Company	
  Website	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Company	
  Website	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Company	
  Vehicle	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Business	
  Swag:	
  T-­‐Shirts,	
  Hats	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Free	
  AdverCsing	
  
Referral/Word	
  of	
  Mouth	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure	
  

PAID	
  AdverNsing	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Paid	
  AdverCsing	
  
Newspaper	
  ads	
  
Online	
  featured	
  ads	
  

Test	
  and	
  Measure:	
  Paid	
  AdverCsing	
  
Online	
  featured	
  ads	
  
MarkeCng	
  Plan	
  
Headline	
  is	
  the	
  most	
  important	
  
Allow	
  the	
  prospecCve	
  tenant	
  to	
  contact	...
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Paid	
  AdverCsing	
  
Google	
  Ads	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Paid	
  AdverCsing	
  
	
  
	
  
	
  
How	
  Do	
  You	
  Measure?	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Paid	
  AdverCsing	
  
MarkeCng	
  Plan	
  
Test	
  and	
  Measure:	
  Paid	
  AdverCsing	
  
MarkeCng	
  Plan	
  
Nurture	
  Prospects	
  and	
  Customers	
  
	
  
•  Capture	
  prospect	
  informaCon	
  
•  Add	
  ...
MarkeCng	
  Plan	
  
Nurture	
  Prospects	
  and	
  Customers	
  
MarkeCng	
  Plan	
  
MarkeNng	
  Blueprint	
  

1	
  
Research	
  

2	
  

3	
  

Test	
  and	
  
Measure	
  

Nurture	
  ...
MarkeCng	
  Plan	
  
Systemize	
  
	
  

•  Organize	
  your	
  ads,	
  documents,	
  responses	
  
•  Have	
  everything	...
MarkeCng	
  Plan	
  
MarkeNng	
  Blueprint	
  

1	
  
Research	
  

2	
  

3	
  

Test	
  and	
  
Measure	
  

Nurture	
  ...
MarkeCng	
  Plan	
  
Manage,	
  Review	
  and	
  Improve	
  
	
  

•  Manage	
  your	
  outsourced	
  markeCng	
  
•  Time...
MarkeCng	
  Plan	
  
Manage,	
  Review	
  and	
  Improve	
  
	
  
• 
• 
• 
• 

Manage	
  your	
  outsourced	
  markeCng	
 ...
MarkeCng	
  Plan	
  
Manage,	
  Review	
  and	
  Improve	
  
DECISION	
  TIME	
  
	
  

Most	
  
•  Manage	
  your	
  outs...
The	
  Leasing	
  Process	
  
MarkeCng	
  Plan	
  
Leasing	
  Blueprint	
  

1	
  

2	
  

3	
  

4	
  

5	
  

Pre-­‐
Screen	
  
Tenants	
  

Set	
  

...
The	
  leasing	
  process	
  
Screen	
  Tenants	
  

	
  
TradiNonal	
  methods	
  
•  ApplicaCon	
  
•  Credit	
  check	
...
MarkeCng	
  Plan	
  
Leasing	
  Blueprint	
  

1	
  

2	
  

3	
  

4	
  

5	
  

Pre-­‐
Screen	
  
Tenants	
  

Set	
  

...
The	
  leasing	
  process	
  
	
  

• 
• 
• 
• 

Set	
  Appointments	
  
Prospect	
  tenant	
  calls	
  you	
  
Prospect	
...
MarkeCng	
  Plan	
  
Leasing	
  Blueprint	
  

1	
  

2	
  

3	
  

4	
  

5	
  

Pre-­‐
Screen	
  
Tenants	
  

Set	
  

...
The	
  leasing	
  process	
  
Before	
  you	
  show	
  the	
  Property	
  

	
  
•  Email	
  nurture	
  sequence	
  
•  Ha...
The	
  leasing	
  process	
  
	
  
• 
• 
• 
• 
• 
• 

Show	
  the	
  Property	
  
Set	
  appointments	
  10	
  minutes	
  ...
MarkeCng	
  Plan	
  
Leasing	
  Blueprint	
  

1	
  

2	
  

3	
  

4	
  

5	
  

Pre-­‐
Screen	
  
Tenants	
  

Set	
  

...
The	
  leasing	
  process	
  
Select	
  Tenants	
  

	
  
• 
• 
• 
• 

ApplicaCon	
  
Credit	
  check	
  
Income	
  and	
 ...
MarkeCng	
  Plan	
  
Leasing	
  Blueprint	
  

1	
  

2	
  

3	
  

4	
  

5	
  

Pre-­‐
Screen	
  
Tenants	
  

Set	
  

...
The	
  leasing	
  process	
  
	
  
• 
• 
• 
• 

Sign	
  the	
  Lease	
  
Send	
  them	
  a	
  copy	
  of	
  the	
  lease	
...
 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

The	
  leasing	
  process	
  
Elements	
  of	
  a	
  Lease	
  Agreement	
  
Address,	
...
Management	
  Plan	
  
Managing	
  Tenants	
  for	
  Success	
  
1. StarCng	
  the	
  relaConship	
  
2. Stay	
  Organized!	
  
3. Maintaining	
 ...
Managing	
  Tenants	
  for	
  Success	
  
StarCng	
  the	
  relaConship	
  

	
  
•  Welcome	
  Gim	
  
•  Monthly/Quarter...
Managing	
  Tenants	
  for	
  Success	
  
	
  
• 
• 
• 
• 

Move-­‐In	
  
Be	
  there	
  
Document	
  everything	
  
Have	...
Managing	
  Tenants	
  for	
  Success	
  
Management	
  Blueprint	
  
1. StarCng	
  the	
  relaConship	
  
2.  Stay	
  Org...
Managing	
  Tenants	
  for	
  Success	
  
Stay	
  Organized	
  

	
  
•  Set	
  it	
  up	
  right	
  the	
  first	
  Cme	
 ...
Managing	
  Tenants	
  for	
  Success	
  
Management	
  Blueprint	
  
1. StarCng	
  the	
  relaConship	
  
2. Stay	
  Orga...
Managing	
  Tenants	
  for	
  Success	
  
	
  

Maintain	
  the	
  relaConship	
  

Communicate	
  every	
  90	
  days	
  ...
Managing	
  Tenants	
  for	
  Success	
  
	
  

Maintain	
  the	
  relaConship	
  

Maintenance	
  
•  Quarterly	
  inspec...
Managing	
  Tenants	
  for	
  Success	
  
	
  

Maintain	
  the	
  relaConship	
  

Repairs	
  
•  Repair	
  items	
  with...
Managing	
  Tenants	
  for	
  Success	
  
Management	
  Blueprint	
  
1. StarCng	
  the	
  relaConship	
  
2. Stay	
  Orga...
Managing	
  Tenants	
  for	
  Success	
  
	
  

Go	
  over	
  and	
  above	
  expected	
  

•  Holiday	
  card	
  and	
  g...
Managing	
  Tenants	
  for	
  Success	
  
Management	
  Blueprint	
  
1. StarCng	
  the	
  relaConship	
  
2. Stay	
  Orga...
Managing	
  Tenants	
  for	
  Success	
  
	
  

Repeat	
  Customers	
  and	
  Referrals	
  

•  Set	
  up	
  a	
  system	
...
Managing	
  Tenants	
  for	
  Success	
  
Management	
  Blueprint	
  
1. StarCng	
  the	
  relaConship	
  
2. Stay	
  Orga...
Managing	
  Tenants	
  for	
  Success	
  
Know	
  Your	
  Rights	
  and	
  ResponsibiliCes	
  
	
  

Common	
  Reasons	
  ...
Managing	
  Tenants	
  for	
  Success	
  
Know	
  Your	
  Rights	
  and	
  ResponsibiliCes	
  
	
  

Document	
  Everythin...
Managing	
  Tenants	
  for	
  Success	
  
	
  
Governing	
  Body	
  in	
  Ontario	
  
	
  
The	
  Landlord	
  and	
  Tenan...
Managing	
  Tenants	
  for	
  Success	
  
Common	
  Scenario	
  
	
  
	
  
	
  

1. 
2. 
3. 
4. 
5. 
6. 

“My	
  tenant	
 ...
Building	
  Your	
  Team	
  
Delegate!	
  
Building	
  Your	
  Team	
  
STAGE	
  3	
  

Contractor	
  
	
  AssociaCons	
  
Private	
  Investor	
  
Admin	
  Assistant...
Building	
  Your	
  Team	
  
Where	
  to	
  find	
  Team	
  Members?	
  
	
  
4.	
  Local	
  directory	
  
3.	
  Online	
  ...
Rules	
  of	
  Engagement	
  
Rules	
  of	
  Engagement	
  
“This	
  is	
  a	
  people	
  business,	
  not	
  a	
  paper	
  business”	
  
	
  
Part	
  2...
Rules	
  of	
  Engagement	
  
“This	
  is	
  a	
  people	
  business,	
  not	
  a	
  paper	
  business”	
  
	
  
Closed	
 ...
Rules	
  of	
  Engagement	
  
“This	
  is	
  a	
  people	
  business,	
  not	
  a	
  paper	
  business”	
  
	
  
Open	
  E...
Rules	
  of	
  Engagement	
  
“This	
  is	
  a	
  people	
  business,	
  not	
  a	
  paper	
  business”	
  
	
  
1.  Part	...
Rules	
  of	
  Engagement	
  
“This	
  is	
  a	
  people	
  business,	
  not	
  a	
  paper	
  business”	
  
	
  
Add	
  Va...
Rules	
  of	
  Engagement	
  
	
  
• 
• 
• 
• 
• 
• 

Give	
  even	
  more…	
  Get	
  even	
  more!	
  
TesCmonials:	
  gi...
Main	
  types	
  of	
  Business	
  
Ownership	
  
Main	
  Types	
  of	
  Business	
  Ownership	
  
1.  Sole	
  Proprietor	
  
2.  Partnership	
  
Main	
  Types	
  of	
  Business	
  Ownership	
  
1.  Sole	
  Proprietor	
  
2.  Partnership	
  

	
  
1.	
  Tenants	
  in	...
Main	
  Types	
  of	
  Business	
  Ownership	
  
1.  Sole	
  Proprietor	
  
2.  Partnership	
  
3.  CorporaPon	
  
4.  LLP...
ConvenPonal	
  Financing	
  and	
  
Leverage	
  
ConvenPonal	
  Financing	
  

The	
  “Big	
  5”	
  
	
  

	
  
1.  Canadian	
  Imperial	
  Bank	
  of	
  Commerce:	
  CIBC...
ConvenPonal	
  Financing	
  

In	
  Canada	
  there	
  are:	
  
	
  
24	
  Schedule	
  1	
  Banks	
  
22	
  Schedule	
  2	...
ConvenPonal	
  Financing	
  
	
  
1. 
2. 
3. 
4. 
5. 

Most	
  common	
  forms	
  of	
  FI	
  lending	
  
Mortgage	
  
Sec...
ConvenPonal	
  Financing	
  

How	
  They	
  Qualify	
  The	
  Buyers	
  

	
  
1. Employment	
  Status	
  
2. Down	
  Pay...
ConvenPonal	
  Financing	
  
Employment	
  Status	
  
	
  
Income	
  
Employment	
  History	
  
	
  
Job	
  Security	
  
	...
ConvenPonal	
  Financing	
  
Employment	
  Status	
  
	
  	
  

	
  GDS	
  
	
  
The	
  percentage	
  of	
  gross	
  annua...
ConvenPonal	
  Financing	
  
Employment	
  Status	
  
	
  	
  

	
  

	
  

	
  GDS=	
  Annual	
  Mortgage	
  Payment	
  +...
ConvenPonal	
  Financing	
  
Employment	
  Status	
  
	
  	
  

	
  

	
  TDS	
  
	
  	
  
	
  The	
  percentage	
  of	
  ...
ConvenPonal	
  Financing	
  
Employment	
  Status	
  

	
  
	
  
TDS=	
  Annual	
  Mortgage	
  Payment	
  +	
  Property	
 ...
ConvenPonal	
  Financing	
  
Down	
  Payment	
  
	
  
•  Measured	
  in	
  Loan-­‐To-­‐Value	
  (LTV)	
  
•  >80%	
  LTV	
...
ConvenPonal	
  Financing	
  
	
  
	
  

CMHC	
  Fees	
  
LTV	
  

Amor*za*on	
  Period	
  (years)	
  

25	
  

30	
  

35	...
ConvenPonal	
  Financing	
  
Personal	
  Credit	
  

	
  
“It	
  is	
  the	
  measure	
  of	
  the	
  fiscal	
  responsibil...
ConvenPonal	
  Financing	
  
Credit	
  Agencies	
  

	
  
1.  Equifax	
  	
  www.equifax.com	
  
2.  Transunion	
  www.tra...
ConvenPonal	
  Financing	
  

How	
  They	
  Qualify	
  The	
  Property	
  

	
  
4.	
  Use	
  listed	
  on	
  lisPng	
  
...
ConvenPonal	
  Financing	
  
Financing	
  Structures	
  

	
  

Structure	
  1	
  
80%	
  Mortgage	
  	
  
20%	
  Equity	
...
ConvenPonal	
  Financing	
  

Price	
  vs	
  Terms	
  
ConvenPonal	
  Financing	
  
Instant	
  Access	
  to	
  Principle	
  Recapture	
  
Sco*abank:	
  STEP	
  Mortgage	
  
CIBC...
ConvenPonal	
  Financing	
  
Flip	
  to	
  Yourself	
  
Sco*abank:	
  Purchase	
  Plus	
  Improvements	
  
CIBC:	
  Purcha...
ConvenPonal	
  Financing	
  

Cash	
  Back	
  Mortgage	
  
ConvenPonal	
  Financing	
  

Talk	
  to	
  the	
  right	
  expert	
  for	
  
INVESOTRS!	
  
ConvenPonal	
  Financing	
  
Financing	
  on	
  US	
  Proper*es	
  
BMO/Harris	
  Bank:	
  Canadian	
  Gateway	
  Program	...
ConvenPonal	
  Financing	
  
Credit	
  Unions	
  
•  Provincially	
  Regulated	
  
•  Can	
  provide	
  80%	
  LTV	
  HELO...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  
1. 
2. 
3. 
4. 

Most	
  common	
  forms	
  
Seller	
  Financing	
  
Hard	
  ...
Non-­‐ConvenPonal	
  Financing	
  
	
  
• 
• 
• 

Seller	
  Financing	
  
Also	
  called	
  VTB	
  or	
  seller	
  carryba...
Non-­‐ConvenPonal	
  Financing	
  
	
  

VariaPons	
  of	
  Seller	
  Financing	
  
	
  
All-­‐inclusive	
  mortgage	
  	
...
Non-­‐ConvenPonal	
  Financing	
  
VariaPons	
  of	
  Seller	
  Financing	
  

	
  
	
  
Lease	
  Op*on	
  
	
  
•  tenant...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  
1. 
2. 
3. 
4. 

Most	
  common	
  forms	
  
Seller	
  Financing	
  
Hard	
  ...
Non-­‐ConvenPonal	
  Financing	
  
	
  
• 
• 
• 

Hard	
  Money	
  Loans	
  
asset-­‐based	
  lending	
  
short-­‐term	
  ...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  
1. 
2. 
3. 
4. 

Most	
  common	
  forms	
  
Seller	
  Financing	
  
Hard	
  ...
Non-­‐ConvenPonal	
  Financing	
  
	
  
• 
• 

Private	
  Investor	
  
requires	
  a	
  return	
  on	
  their	
  money,	
 ...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  
	
  
	
  

Private	
  Investor	
  

Don’t	
  forget	
  the	
  RSP	
  Mortgage...
Non-­‐ConvenPonal	
  Financing	
  
Also	
  eligible	
  to	
  be	
  self	
  directed:	
  
	
  
RESP:	
  Registered	
  Educa...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  
1. 
2. 
3. 
4. 

Most	
  common	
  forms	
  
Seller	
  Financing	
  
Hard	
  ...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  

Joint	
  Venture	
  Partnership	
  
"A	
  business	
  undertaken	
  by	
  tw...
Non-­‐ConvenPonal	
  Financing	
  
	
  
• 
• 

Joint	
  Venture	
  Partner	
  
Equity	
  share	
  
Max	
  50	
  investors	...
Non-­‐ConvenPonal	
  Financing	
  
	
  
	
  

• 
• 
• 
• 
• 
• 

Joint	
  Venture	
  Partner:	
  The	
  Agreement	
  
IniP...
Non-­‐ConvenPonal	
  Financing	
  
Joint	
  Venture	
  Partner:	
  ContribuPons	
  

Money	
  

Knowledge	
  

Time	
  
Co...
Non-­‐ConvenPonal	
  Financing	
  
Joint	
  Venture	
  Partner:	
  ContribuPons	
  
Partner	
  1	
  

Time	
  

Experience...
Non-­‐ConvenPonal	
  Financing	
  
CreaPve	
  Financing	
  Deal	
  Structure	
  
15%	
  Personal	
  Cash	
  
20%	
  Privat...
Non-­‐ConvenPonal	
  Financing	
  
CreaPve	
  Financing	
  Deal	
  Structure	
  
15%	
  Personal	
  Cash	
  
20%	
  Privat...
Non-­‐ConvenPonal	
  Financing	
  
CreaPve	
  Financing	
  Deal	
  Structure	
  
20%	
  Personal	
  Cash	
  
15%	
  Privat...
Non-­‐ConvenPonal	
  Financing	
  
CreaPve	
  Financing	
  Deal	
  Structure	
  
10%	
  Personal	
  Cash	
  

90%	
  Selle...
Is	
  100%	
  Financing	
  Possible?	
  
5	
  ways	
  to	
  do	
  a	
  “No	
  Money	
  Down”	
  deal	
  
20%	
  Personal	
...
Is	
  100%	
  Financing	
  Possible?	
  
5	
  ways	
  to	
  do	
  a	
  “No	
  Money	
  Down”	
  deal	
  
20%	
  Private	
 ...
Is	
  100%	
  Financing	
  Possible?	
  
5	
  ways	
  to	
  do	
  a	
  “No	
  Money	
  Down”	
  deal	
  
25%	
  Business	
...
Is	
  100%	
  Financing	
  Possible?	
  
5	
  ways	
  to	
  do	
  a	
  “No	
  Money	
  Down”	
  deal	
  

100%	
  Mortgage...
Is	
  100%	
  Financing	
  Possible?	
  
5	
  ways	
  to	
  do	
  a	
  “No	
  Money	
  Down”	
  deal	
  

100%	
  Private	...
RenovaPons	
  
RenovaPons	
  
4	
  steps	
  to	
  a	
  successful	
  renovaPon	
  

	
  	
  
1. Have	
  a	
  plan	
  
2. Find	
  a	
  con...
RenovaPons	
  

Planning	
  your	
  renovaPon:	
  	
  
3	
  Factors	
  to	
  Balance	
  
RenovaPons:	
  Have	
  a	
  Plan	
  
SCOPE	
  

QUALITY	
  

MONEY	
  

TIME	
  
RenovaPons:	
  Have	
  a	
  Plan	
  
	
  

1.	
  SCOPE	
  

•  Scope	
  of	
  work:	
  list	
  of	
  what	
  must	
  be	
 ...
RenovaPons:	
  Have	
  a	
  Plan	
  
	
  

2.	
  MONEY	
  

•  Create	
  a	
  budget	
  for	
  each	
  opPon	
  
•  Afforda...
RenovaPons:	
  Have	
  a	
  Plan	
  
	
  

3.	
  TIME	
  

•  Make	
  a	
  ‘Pme	
  budget’	
  
•  construcPon	
  calendar	...
RenovaPons:	
  Have	
  a	
  Plan	
  
	
  

QUALITY	
  

•  No	
  compromises!	
  
•  Everything	
  you	
  can	
  see	
  an...
RenovaPons	
  
4	
  steps	
  to	
  a	
  successful	
  renovaPon	
  

	
  	
  
1. Have	
  a	
  plan	
  
2.  Find	
  a	
  co...
RenovaPons:	
  Finding	
  a	
  Contractor	
  

	
  

• 
• 
• 
• 
• 
• 

Find	
  the	
  contractor	
  
Local	
  bandit	
  s...
RenovaPons:	
  Finding	
  a	
  Contractor	
  
Do	
  your	
  homework	
  

	
  
•  Research,	
  research,	
  research	
  
•...
RenovaPons:	
  Finding	
  a	
  Contractor	
  

	
  
• 
• 
• 
• 

Ask	
  ques*ons	
  

Are	
  they	
  licensed?	
  Ask	
  f...
RenovaPons:	
  Finding	
  a	
  Contractor	
  

	
  
• 
• 
• 
• 
• 

Professionalism	
  
Do	
  they	
  even	
  have	
  a	
 ...
RenovaPons:	
  Finding	
  a	
  Contractor	
  
Shop	
  around	
  

	
  
•  Get	
  bids	
  from	
  3	
  different	
  contract...
RenovaPons	
  
4	
  steps	
  to	
  a	
  successful	
  renovaPon	
  

	
  	
  
1. Have	
  a	
  plan	
  
2. Find	
  a	
  con...
RenovaPons:	
  RenovaPon	
  Process	
  
Contractor	
  Renova*on	
  Blueprint	
  

1	
  

2	
  

3	
  

4	
  

5	
  

Agree...
RenovaPons:	
  RenovaPon	
  Process	
  
1.  Agree	
  on	
  the	
  project	
  
• 
• 
• 
• 

SCOPE	
  
TIME	
  
MONEY	
  
QU...
RenovaPons:	
  RenovaPon	
  Process	
  
2.	
  	
  	
  	
  Sign	
  the	
  Documents	
  
• 
• 
• 
• 

Independent	
  contrac...
RenovaPons:	
  RenovaPon	
  Process	
  
3.	
  	
  	
  	
  Building	
  Permits	
  
• 
• 
• 

No	
  work	
  starts	
  unPl	
...
RenovaPons:	
  RenovaPon	
  Process	
  
4.	
  	
  	
  	
  Changes	
  and	
  payment	
  
• 
• 

Always	
  sign	
  a	
  ‘cha...
RenovaPons:	
  RenovaPon	
  Process	
  
5.	
  	
  	
  	
  Final	
  Sign-­‐Off	
  
• 
• 
• 
• 

• 

Walk	
  through	
  renov...
RenovaPons	
  
4	
  steps	
  to	
  a	
  successful	
  renovaPon	
  

	
  	
  
1. Have	
  a	
  plan	
  
2. Find	
  a	
  con...
RenovaPons:	
  Follow-­‐Up	
  and	
  
Measure	
  Results	
  
• 
• 
• 
• 

Check	
  the	
  renovaPons	
  aoer	
  30	
  days...
Plan	
  of	
  AcPon	
  
Plan	
  of	
  AcPon	
  
1.  Know	
  your	
  goals	
  
2.  Develop	
  your	
  business	
  plan	
  
3.  Build	
  your	
  tea...
Plan	
  of	
  AcPon	
  

	
  

Important	
  

Con*nue	
  to	
  educate	
  yourself	
  
	
  
Add	
  value	
  to	
  other	
 ...
[ANCHOR	
  SLIDE]	
  
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Transcript of "Workshop Slides"

  1. 1. Our  Philosophies   Make  financial  decisions,  NOT  emo3onal  decisions     Time  is  EVERYTHING     How  you  act  in  here  is  how  you  will  act  out  there     Leverage  is  the  key  to  business     Prac3ce,  Prac3ce,  Prac3ce  
  2. 2. Success  Pyramid                 7.   Wealth   6.  Equity   5.  Cash  Flow   4.  Risk  Management   3.  Ac3on  Plan   2.  Knowledge   1.  Investor  Mindset  
  3. 3. Build  Your  Business  Like  a  Machine   How  do  you  build  your  business  like  a  machine?   1   Build   slowly  and   properly   2   Document   Everything   3   Systemize   Everything     4   5   Stay  Very   Organized   Every  task   must  be   do-­‐able  by   someone   else  
  4. 4. Build  Your  Business  Like  a  Machine   What  are  the  first  steps  to  building  a  machine?         A  BLUEPRINT!  
  5. 5. It  All  Starts  With  A  Plan!   “He  who  fails  to  plan,  plans  to  fail”                                                                          -­‐Winston  Churchill  
  6. 6. The  4  Way  to  Win  With     Real  Estate   [ANCHOR  SLIDE]  
  7. 7. The  4  Way  to  Win  With  Real  Estate   1. Passive  AppreciaTon   [ANCHOR  SLIDE]   2. AcTve  AppreciaTon   3. Principle  Recapture   4. Cash  Flow  
  8. 8.   Investor  Tool  1:  Financial  Projec3ons     [ANCHOR  SLIDE]  
  9. 9.   Financial  Projec3ons:  Scenario  1     Buy  1  Property  and  hold  it  for  15  years   [ANCHOR  SLIDE]                    Deal  Details   Property  Value:  $350,000   Amor3za3on:  30  Years   Interest  Rate:  4.0%   Apprecia3on  Rate:  3.0%  
  10. 10. Financial  Projec3ons:  Scenario  1   Buy  1  Property  and  hold  it  for  15  years   year   0   1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   EMV  3%   $350,000.00   $360,500.00   $371,315.00   $382,454.45   $393,928.08   $405,745.93   $417,918.30   $430,455.85   $443,369.53   $456,670.61   $470,370.73   $484,481.85   $499,016.31   $513,986.80   $529,406.40   $545,288.60   Accumulated   AppreciaTon   $0.00   Accumulated   Principle   Recapture   $0.00   [ANCHOR  SLIDE]   $10,500.00   $4,599.57   $21,315.00   $10,950.59   $32,454.45   $17,560.36   $43,928.08   $24,439.42   $55,745.93   $31,598.75   $67,918.30   $39,049.76   $80,455.85   $46,804.34   $93,369.53   $54,874.85   $106,670.61   $63,274.16   $120,370.73   $72,015.67   $134,481.85   $81,113.33   $149,016.31   $90,581.64   $163,986.80   $100,435.70   $179,406.40   $110,691.23   $195,288.60   $121,364.59  
  11. 11. AmorTzaTon  Schedule   [ANCHOR  SLIDE]  
  12. 12. AmorTzaTon  Schedule   [ANCHOR  SLIDE]  
  13. 13. Financial  Projec3ons:  Scenario  1   Buy  1  Property  and  hold  it  for  15  years   year   EMV  3%   0   1   2   3   4   5   6   7   8   9   10   11   12   13   14   $350,000.00   $360,500.00   $371,315.00   $382,454.45   $393,928.08   $405,745.93   $417,918.30   $430,455.85   $443,369.53   $456,670.61   $470,370.73   $484,481.85   $499,016.31   $513,986.80   $529,406.40   15   $545,288.60   Accumulated   AppreciaTon   Accumulated   Accumulated   Principle   Cash  Flow   Recapture   $0.00   [ANCHOR  SLIDE]   Value  added   Total  Increase   RenovaTons   $10,500.00   $21,315.00   $32,454.45   $43,928.08   $55,745.93   $67,918.30   $80,455.85   $93,369.53   $106,670.61   $120,370.73   $134,481.85   $149,016.31   $163,986.80   $179,406.40   $0.00   $4,599.57   $10,950.59   $17,560.36   $24,439.42   $31,598.75   $39,049.76   $46,804.34   $54,874.85   $63,274.16   $72,015.67   $81,113.33   $90,581.64   $100,435.70   $110,691.23   $0.00   $6,000.00   $12,000.00   $18,000.00   $24,000.00   $30,000.00   $36,000.00   $42,000.00   $48,000.00   $54,000.00   $60,000.00   $66,000.00   $72,000.00   $78,000.00   $84,000.00   $0.00   $0.00   $0.00   $0.00   $0.00   $10,000.00   $0.00   $0.00   $0.00   $0.00   $20,000.00   $0.00   $0.00   $0.00   $0.00   $0.00   $23,099.57   $48,265.59   $74,014.81   $100,367.50   $127,344.68   $154,968.06   $183,260.19   $212,244.38   $241,944.77   $272,386.40   $303,595.18   $335,597.95   $368,422.50   $402,097.63   $195,288.60   $121,364.59   $90,000.00   $30,000.00   $436,653.19  
  14. 14. [ANCHOR  SLIDE]  
  15. 15. Financial  Projec3ons:  Scenario  2     Buy  1  Property  each  year  for  5  years     [ANCHOR  SLIDE]           What  is  the  5  year  financial  forecast  of   your  porbolio?    
  16. 16.       Financial  Projec3ons:  Scenario  2     Buy  1  Property  each  year  for  5  years   [ANCHOR  SLIDE]     Deal  Details   Property  Value:  $350,000   Amor3za3on:  30  Years   Interest  Rate:  4.0%   Apprecia3on  Rate:  3.0%   Acquisi3on  rate:  1.0  
  17. 17. Financial  Projec3ons:  Scenario  2     Buy  1  Property  each  year  for  5  years   year   EMV  3%   1   $350,000.00   2   $710,500.00   Accumulated   Apprecia3on   Accumulated   Accumulated   Value  added   Principle   Total  Increase   Cash  Flow   Renova3ons   Recapture   [ANCHOR  SLIDE]   $10,500.00   $4,599.57   $6,000.00   $2,000.00   $23,099.57   $31,815.00   $15,550.16   $18,000.00   $6,000.00   $71,365.16   3   $1,081,815.00   $64,269.45   $33,110.52   $36,000.00   $12,000.00   $145,379.97   4   $1,464,269.45   $108,197.53   $57,549.94   $60,000.00   $20,000.00   $245,747.47   5   $1,858,197.53   $163,943.46   $89,148.69   $90,000.00   $30,000.00   $373,092.15  
  18. 18. ExponenTal  Growth     “The  Snowball  Effect”   [ANCHOR  SLIDE]  
  19. 19. ExponenTal  Growth     Money   [ANCHOR  SLIDE]   1   2   3   4   5   Year  
  20. 20. Financial  Projec3ons:  Scenario  2     Buy  1  Property  each  year  for  5  years   year   EMV  3%   1   $350,000.00   2   $710,500.00   Accumulated   Apprecia3on   Accumulated   Accumulated   Value  added   Principle   Total  Increase   Cash  Flow   Renova3ons   Recapture   [ANCHOR  SLIDE]   $10,500.00   $4,599.57   $6,000.00   $2,000.00   $23,099.57   $31,815.00   $15,550.16   $18,000.00   $6,000.00   $71,365.16   3   $1,081,815.00   $64,269.45   $33,110.52   $36,000.00   $12,000.00   $145,379.97   4   $1,464,269.45   $108,197.53   $57,549.94   $60,000.00   $20,000.00   $245,747.47   5   $1,858,197.53   $163,943.46   $89,148.69   $90,000.00   $30,000.00   $373,092.15  
  21. 21. Financial  Projec3ons         You  can  do  this  for  any  combinaTon  of   numbers   [ANCHOR  SLIDE]   Deal  Details:   Property  Value:  ??   AmorTzaTons:  ??   Interest  Rate:  ??   AppreciaTon  Rate:  ??   AcquisiTon  rate  ??  
  22. 22. 2  Rules  of  Business       [ANCHOR  SLIDE]   1.  You  need  money  to  Start,  Operate  and   Grow  this  business   2.  You  must  re-­‐invest  into  your  business    
  23. 23. Allocate  Business  Funding  
  24. 24. Allocate  Business  Funding   OPERATIONAL   TRANSACTIONAL   GROWTH  
  25. 25. Allocate  Business  Funding   “Funding  Mix”   OPERATIONAL   TRANSACTIONAL   GROWTH  
  26. 26. Allocate  Business  Funding   OPERATIONAL   GROWTH   TRANSACTIONAL  
  27. 27. Allocate  Business  Funding   OPERATIONAL   TRANSACTIONAL   GROWTH  
  28. 28. Allocate  Business  Funding   OPERATIONAL   TRANSACTIONAL   GROWTH  
  29. 29. Allocate  Business  Funding   How  will  you  allocate  funding  for   your  Real  Estate  Business?   TRANSACTIONAL   OPERATIONAL   GROWTH  
  30. 30. 4  steps  to  finding  an  Income   Property   1. Sourcing  ProperTes   2. Evaluate  an  InvesTng  Area   3. Evaluate  an  Income  Property  From  Home   4. Evaluate  an  Income  Property  On  Site  
  31. 31. Sources  of  ProperTes   There  are  two  main  sources  of  properTes  to  buy:   [ANCHOR  SLIDE]   From  Private   Sellers   From  Realtors  
  32. 32. Sources  of  ProperTes   1.  From  private  sellers   •  •  They  find  [ANCHOR  SLIDE]   you   •  Market  to  a  distressed  seller   •  Market  to  a  distressed  property     You  find  them   •  FSBO  online  lisTngs   •  Drive  around   •  Google  alerts:    “need  to  sell  home,  must  sell   home,  home  for  sale  as  is”   •  Investor  Network:  Referrals,  Word  of  Mouth  
  33. 33. Sources  of  ProperTes   2.  From  professionals     [ANCHOR  SLIDE]   Your  Realtor  will  find  a  property  that  meets  your  criteria        
  34. 34. The  Property  Search   [ANCHOR  SLIDE]  
  35. 35. The  Property  Search   1.  2.  3.  4.  5.  6.  7.  8.  8  ProperTes  to  look  for     [ANCHOR  SLIDE]   Student  rentals   MulT  unit   ExecuTve  rentals   MoTvated  sellers   Hidden  potenTal   Needs  extensive  rehab   High  DOM’s   Mixed  use  
  36. 36. The  Property  Search   1.  2.  3.  4.  5.  6.  7.  8.  8  ProperTes  to  stay  away  from     [ANCHOR  SLIDE]   War  Zone  ProperTes   No  en-­‐suite  potenTal   2  bedrooms  or  less   Small  bedrooms     Small  kitchen  with  no  potenTal   Major  structural  damage   Environmental  issues   High  Turnover:  bought  and  sold  over  10  Tmes  in  15  years  
  37. 37. The  Property  Search   How  About  When  To  Look?     [ANCHOR  SLIDE]   of  Week   Time     Time  of  Month     Time  of  Year  
  38. 38. The  Property  Search   [ANCHOR  SLIDE]  
  39. 39. The  Property  Search   [ANCHOR  SLIDE]  
  40. 40. The  Property  Search   [ANCHOR  SLIDE]  
  41. 41. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]   Become  a  local  area  expert  
  42. 42. Evaluate  an  InvesTng  Area   Divide  the  area  Sdata  into  three  categories:   [ANCHOR   LIDE]     1.  Past   2.  Present   3.  Future  
  43. 43. Evaluate  an  InvesTng  Area   Past   [ANCHOR  SLIDE]     What  has  been  the  trends  for  the  last  10  years?     Can  we  idenTfy  palers?  
  44. 44. Evaluate  an  InvesTng  Area   Past   [ANCHOR  SLIDE]     Research  the  Data     1.  Average  home  prices  for  the  last  10  years   2.  Average  rents  for  the  last  10  years  
  45. 45. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  46. 46. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  47. 47. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  48. 48. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  49. 49. Evaluate  an  InvesTng  Area   Present     [ANCHOR  SLIDE]   Research  the  local  Data     How  does  the  market  compare  to  larger  averages?   •  NaTonal  Average   •  Provincial  Average  
  50. 50. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  51. 51. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  52. 52. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]  
  53. 53. Evaluate  an  InvesTng  Area   [ANCHOR  SLIDE]   Organize  the  Data  
  54. 54. Evaluate  an  InvesTng  Area   Present:     Compare  [ANCHOR  SLIDE]   other  markets   the  Data  with  
  55. 55. Evaluate  an  InvesTng  Area   Present:     Compare  [ANCHOR  SLIDE]   other  markets   the  Data  with  
  56. 56. Evaluate  an  InvesTng  Area   Future     [ANCHOR  SLIDE]   Don’t  predict  the  future…     Use  past  and  present  data  to  Iden:fy  Pa=erns  
  57. 57. Evaluate  an  InvesTng  Area              Past:  Compare  the  current  local  market              d[ANCHOR  ith  other  Tme  periods   ata  w SLIDE]     Present:  Compare  the  local  market  data  with            other  geographic  markets     Future:  Use  past  and  present  data  to  idenTfy        palerns  that  suggest  future  market                behavior.  
  58. 58. Evaluate  an  InvesTng  Area   Where  to  Start  SLooking?   [ANCHOR   LIDE]     1.  Your  Budget   2.  Close  to  Home   3.  Network  RecommendaTons  
  59. 59. The  80/20  Rule   Approximately  20%  oSf  your  invesTng  decision  should  be   [ANCHOR   LIDE]   made  based  on  the  health  of  the  area.     The  other  80%....?       CASH  FLOW!  
  60. 60. The  80/20  Rule   [ANCHOR  SLIDE]   It’s  more  important  to  get  a  good   property  than  a  good  area     You  have  no  control  over  the  area,  but   full  control  over  the  property  
  61. 61. IdenTfy  an  Income  Property   IdenTfy  the  EsTmated  Market  Value  (EMV)     [ANCHOR  SLIDE]   Three  methods:     1.  Replacement  Value:  Insurance  Companies   2.  Comparable  Proper3es:  Banks  for  residenTal  property   3.  Income  Mul3plier:  Banks  for  commercial  Property      
  62. 62. IdenTfy  an  Income  Property   IdenTfy  the  EsTmated  Market  Value  (EMV)     [ANCHOR  SLIDE]   Three  methods:     1.  Replacement  Value:  Insurance  Companies   2.  Comparable  Proper3es:  Banks  for  residenTal  property   3.  Income  Mul3plier:  Banks  for  commercial  Property                    INVESTORS!  
  63. 63. IdenTfy  an  Income  Property   Income  MulTplier     [ANCHOR  SLIDE]   •  Easy  to  standardize  and  make  repeatable   •  REMOVES  EMOTION  FROM  THE  DECISION      
  64. 64. IdenTfy  an  Income  Property   The  three  golden  quesTons:   [ANCHOR  SLIDE]     1.  Does  it  CASH  FLOW?   2.  How  much  does  it  CASH  FLOW?   3.  Is  the  CASH  FLOW  enough  for  me?  
  65. 65. IdenTfy  an  Income  Property   Does  it  CASH  FLOW?   [ANCHOR  SLIDE]       INCOME  –  EXPENSES  =  CASH  FLOW  
  66. 66. IdenTfy  an  Income  Property   Does  it  CASH  FLOW?   [ANCHOR  SLIDE]       FORMULA  1:    NOI  =  GOI  –  GOE       FORMULA  2:    CASH  FLOW  =  NOI  –  Mortgage  Payment  
  67. 67. IdenTfy  an  Income  Property   Does  it  CASH  FLOW?    Example       [ANCHOR  SLIDE]     Property  123  Main  St     Asking  Price=  $200,000   Down  payment  20%=  $40,000   Mortgage  Balance=  $160,000  @  5%  interest  rate  
  68. 68. IdenTfy  an  Income  Property   Calculate  GOI  and  GOE   [ANCHOR  SLIDE]     GOI=  Total  of  all  incomes  minus  Vacancy  (5%)     GOE=  Total  of  all  operaTng  expenses  
  69. 69. IdenTfy  an  Income  Property   GOI   [ANCHOR  SLIDE]     •  Rent  is  the  main  scheduled  income,  and  ouen  the  only   income.   •  Two  ways  to  calculate  the  rental  income   1.  Current  rental  income   2.  Establish  the  AMR  (Average  Market  Rent)  
  70. 70. IdenTfy  an  Income  Property   AMR  (Average  Market  Rent)   [ANCHOR  SLIDE]     •  What  are  similar  units  in  the  area  renTng  for?  
  71. 71. IdenTfy  an  Income  Property   Does  it  CASH  FLOW?    Example       [ANCHOR  SLIDE]     Property  123  Main  St     Asking  Price=  $200,000   Down  payment  20%=  $40,000   Mortgage  Balance=  $160,000  @  5%  interest  rate   AMR=  $1800/month,  $21,600  year  
  72. 72. IdenTfy  an  Income  Property   Calculate  GOI   [ANCHOR  SLIDE]       GOI=  Total  of  all  incomes  minus  Vacancy  (5%)                =  $21,600  minus  $1080  (5%)                =  $20,520  
  73. 73. IdenTfy  an  Income  Property   Calculate  GOE     [ANCHOR  SLIDE]   GOE=  Total  of  all  operaTng  expenses   •  Property  Taxes:  Found  on  lisTng  or  by  calling  the  City   •  Insurance:  Get  an  esTmate   •  Condo  Fee’s:  On  lisTng   •  U3li3es:  ask  seller  for  last  years  expense   •  Lawn  Maintenance:  Get  an  esTmate   •  Cleaning:  get  a  quote   •  Repair  and  Maintenance:  5%  of  GOI     •  Other:  Build  team,  get  an  esTmate  
  74. 74. IdenTfy  an  Income  Property   Calculate  GOE     [ANCHOR  SLIDE]   GOE=  Total  of  all  operaTng  expenses   •  Property  Taxes=  $2200   •  Insurance=  $1000   •  Condo  Fee’s=  $0   •  U3li3es=  $0   •  Lawn  Maintenance=  $300   •  Cleaning=  $300   •  Repair  and  Maintenance=  $1026   TOTAL  Opera3ng  Expense=  $4826  
  75. 75. IdenTfy  an  Income  Property   Does  it  CASH  FLOW?   [ANCHOR  SLIDE]       FORMULA  1:    NOI  =  GOI  –  GOE       GOI=  $20,520   GOE=  $4,826     NOI  =  $20,520  –  $4,826  =  $15,694    
  76. 76. IdenTfy  an  Income  Property   Does  it  CASH  FLOW?   [ANCHOR  SLIDE]       FORMULA  2:    CASH  FLOW  =  NOI  –  Mortgage  Payment       Cash  Flow  =  $15,694  –  $10,306.92          …($858.91  x  12  months)     CASH  FLOW  =  $5,387.08/year                                                  
  77. 77. IdenTfy  an  Income  Property   How  Much  does  it  CASH  FLOW?   [ANCHOR  SLIDE]       CASH  FLOW  =  $5,387.08/year              =    $448.92/month    
  78. 78. IdenTfy  an  Income  Property   Is  the  CASH  FLOW  enough  for  me?   [ANCHOR  SLIDE]      
  79. 79. IdenTfy  an  Income  Property         [ANCHOR  SLIDE]   Time  to  introduce  Cash  On  Cash  Return       Measures  your  return  against  the     Opportunity  Cost  of  your  cash     COCR  =  CF  /  CI  
  80. 80. IdenTfy  an  Income  Property   Is  the  CASH  FLOW  enough  for  me?   [ANCHOR  SLIDE]     CASH  FLOW  =  $5,387.08/year                                                 Cash  Invested=  $40,000     COCR=        CF      =      $5,387.08                                    CI                    $40,000     COCR=  13.47%  
  81. 81. IdenTfy  an  Income  Property   Is  the  CASH  FLOW  enough  for  me?   [ANCHOR  SLIDE]    
  82. 82. IdenTfy  an  Income  Property   Is  the  CASH  FLOW  enough  for  me?   [ANCHOR  SLIDE]   COCR=  13.47%     What  will  other  investments  pay  you  for  your  cash?     Bank=  0.000001%   GIC=  2.2%   Mutual  funds=  5%   Stocks=  7%   Private  InvesTng:  12%   Income  Property  COCR=  13.47%  
  83. 83. IdenTfy  an  Income  Property   What  is  your  TOTAL  ROI  on  $40,000  invested?     [ANCHOR  SLIDE]   Annual  Cash  Flow=  $5,387.08  or  13.47%       Annual  Principle  Recapture=  $2280  or  5.7%     Annual  Passive  Apprecia3on  (2%)=  $4000  or  10%     Annual  Ac3ve  Apprecia3on=  $0  or  0%     Total  Annual  Return  on  Investment=  $11,667.08  or  29.17%    
  84. 84. IdenTfy  an  Income  Property   Using  NOI  to  determine  property  value     [ANCHOR  SLIDE]     Property  Value=    ?                                  
  85. 85. IdenTfy  an  Income  Property     [ANCHOR  SLIDE]     FORMULA  2:    NOI  –  Mortgage  Payment  =  CASH  FLOW                                                    
  86. 86. IdenTfy  an  Income  Property     [ANCHOR  SLIDE]     Time  to  introduce  Capitaliza:on  Rate     The  metric  used  to  compare  different     ProperTes  based  on  performance  (NOI)     Cap  Rate  =                    NOI              .                                                                        Market  Value    
  87. 87. IdenTfy  an  Income  Property   Using  NOI  to  determine  property  value     [ANCHOR  SLIDE]     Property  Value=    _____NOI____                                                                Market  Cap  Rate       FORMULA  1:    NOI  =  GOI  –  GOE       Find  Cap  Rate:      Same  method  as  ARM      or      Published  Data    
  88. 88. IdenTfy  an  Income  Property   Using  NOI  to  determine  property  value     [ANCHOR  SLIDE]   $24,000     Property  Value=    _____NOI____                                                                Market  Cap  Rate   6.8%      
  89. 89. IdenTfy  an  Income  Property   Using  NOI  to  determine  property  value     [ANCHOR  SLIDE]     Property  Value=    _____NOI____                                                                Market  Cap  Rate     PV=    $24,000      =              24,000                          6.8%                                0.068                 PV=  $352,941.17                       MAX   Purchase     Price  
  90. 90. IdenTfy  an  Income  Property   [ANCHOR  SLIDE]   R I Net  Income   Triangle   V
  91. 91. IdenTfy  an  Income  Property   CF [ANCHOR  SLIDE]   COCR Cash  Flow   Triangle   CI
  92. 92. IdenTfy  an  Income  Property   Using  COCR  to  establish  your  budget     [ANCHOR  SLIDE]   $7,600     Max  Cash  Investment=    _____CF____                                                                                                      COCR   8%    
  93. 93. IdenTfy  an  Income  Property   Using  COCR  to  establish  your  budget     [ANCHOR  SLIDE]     Max  Cash  Investment=    _____CF____                                                                                                      COCR     MCI=    $7,600=              $7,600                                8%                              0.08                                
  94. 94. IdenTfy  an  Income  Property   Using  COCR  to  establish  your  budget     [ANCHOR  SLIDE]     Max  Cash  Investment=    _____CF____                                                                                                      COCR     MCI=    $7,600=              $7,600                                8%                              0.08                 MAX  Cash   MCI=  $95,000                       you  are   willing  to     invest  
  95. 95. IdenTfy  an  Income  Property   IdenTfy  the  EsTmated  Market  Value  (EMV)     [ANCHOR  SLIDE]   Three  methods:     1.  Replacement  Value   2.  Comparable  ProperTes   3.  Income  Mul3plier      
  96. 96. The  9  Rules  of  Wealth  
  97. 97. What  is  Wealth  to  You?  
  98. 98. “The  real  measure  of   wealth  is  how  much  you’d   be  worth  if  you  lost  all   your  money.”                                          -­‐Bernard  Meltzer  
  99. 99. The  Rules  of  Wealth   1.  2.  3.  4.  5.  6.  7.  8.  9.  Anybody  can  be  wealthy,  you  just  have  to  apply  yourself     Wealthy  people  know  the  difference  between  Price  and  Value     Wealthy  people  understand  Scarcity  vs  Abundance     Wealthy  people  make  the  difficult  decisions,  and  they  don’t   hesitate   Wealthy  people  have  mulTple  income  streams   Wealth  is  a  behavior;  a  habit  that  can  be  learned  and  pracTced   Make  money,  repeat.  Once  you  have  figured  out  what  works   on  the  small  scale,  repeat  the  same  process  for  big  returns.     Wealthy  People  think  long  term.  Long  term  investments  and   relaTonships   Wealthy  people  take  acTon  
  100. 100. The  Rules  of  Wealth   What  steps  can  you  take  TODAY  to  learn  to  be  Wealthy?     1.  Observe  how  the  wealthy  think  and  act,  and  copy  them   2.  Don’t  be  afraid  to  make  a  deal,  you  never  know  where  it  will   take  you   3.  Set  aside  dedicated  Tme  to  work  on  your  wealth  plan   4.  If  you  are  going  to  get  financial  advise,  pay  for  it!   5.  CulTvate  a  skill  and  it  will  repay  you  over  and  over  again   6.  Work  with  a  coach;  someone  who’s  been  there,  walked  the   road  you  want  to  walk,  and  follow  them   7.  Do  not  make  emoTonal  decisions.  Always  make  a  financial   decision.  
  101. 101. The  Rules  of  Wealth   What  can  I  do  TODAY  to  move   towards  wealth?  
  102. 102. How  Does  a  Flip  Deal  Work?   1.  Find  the  perfect  property     2.  Increase  the  Value     3.  Sell  for  the  property  for  profit    
  103. 103. Is  there  a  beler   way?  
  104. 104. “Flipping  To  Yourself”   1.  Find  the  perfect  property     2.  Increase  the  Value     3.  Sell  for  the  property  to  YOURSELF  for  profit!    
  105. 105. STEP  3…   Flip  it…To  Yourself   Refinance  the  Property   1.  Refinance  aJer  improvements   2.  Refinance  before  improvements      
  106. 106. Case  Study  2:  Building  an   Income  Suite   [ANCHOR  SLIDE]   One  of  the  best  tools  to  create  CASH  FLOW     One  of  the  best  tools  to  create  VALUE     Plan  it  before  you  buy     These  deals  are  everywhere…If  you  know  how  to  spot  them    
  107. 107. Case  Study  2:  Building     an  Income  Suite     Property  Shopping       Know  this  is  your  exit  strategy  upfront  
  108. 108. Case  Study  2   •  •  •  •  •  •  •  •  3  bedroom,  2  bath  1400squ  side  split   Purchase  Price  $244,000,  MV  $270,000   20%down  =  $48,800                 CASH  FLOW   Principle  Balance=  $195,200   $700/Month   RenovaTon  and  Rent,  $12,000   Re-­‐appraised  MV  for  $310,000   80%  LTV  =  $252,000  -­‐  $195,200  =  $56,800   $56,800  -­‐  $12,000  reno  =  $44,800  
  109. 109. Important  InformaTon   Transparency     This  does  not  happen  overnight     You  must  constantly  educate  yourself     You  must  re-­‐invest  some  of  your  profit  back  into  your  business     You  must  work  hard  and  work  smart     Surround  yourself  with  the  right  people  
  110. 110. 4  steps  to  finding  an  Income   Property   1. Sourcing  properCes   2. Evaluate  an  InvesCng  Area   3. Evaluate  an  Income  Property  from  home   4. Evaluate  an  Income  Property  on  site  
  111. 111. IdenCfy  an  Income  Property  On  Site   You  have  already  qualified  the  Cash  Flow  from  home     [ANCHOR  SLIDE]   You  TIME  is  very  valuable,  be  efficient     Know  what  you’re  going  to  look  for  before  going  to  the   property     Have  everything  set  up  for  your  walkthrough  before  you   go  to  the  property    
  112. 112. IdenCfy  an  Income  Property  On  Site   What  to  do  before  you  arrive     [ANCHOR  SLIDE]   Know  the  layout  of  the  property     •  How  many  rooms   •  What  size  are  the  rooms   •  Basement  condiCon     •  Basement  size   •  On  site  parking  available    
  113. 113. IdenCfy  an  Income  Property  On  Site   What  to  do  before  you  arrive     [ANCHOR  SLIDE]   Know  the  condiCon  of  the  property     Look  at  as  many  photos  as  possible     •  Bathroom     •  Kitchen     •  Basement    
  114. 114. IdenCfy  an  Income  Property  On  Site   What  to  do  before  you  arrive     [ANCHOR  SLIDE]   Know  the  history  of  the  property     •  Are  their  any  building  permits  for  the  property?   •  Are  their  any  open  building  permits  for  the   property?   •  What  does  the  zoning  by-­‐law  allow?   •  What  is  the  sales  history  for  the  last  20  years?      
  115. 115. IdenCfy  an  Income  Property  On  Site   What  to  do  before  you  arrive     [ANCHOR  SLIDE]   Know  the  other  properCes  in  the  neighborhood     •  What  are  the  condiCon  of  the  rental  properCes?   •  Are  there  government  infrastructure  improvements   planned  in  the  area?   •  Commercial  Property?  
  116. 116. IdenCfy  an  Income  Property  On  Site       What  to  do  before  you  arrive   [ANCHOR  SLIDE]   Assemble  your  team  and  have  them  ready  to  meet   you  at  the  property     •  Realtor   •  Contractor   •  Handyman   •  Business  Partner   •  Assistant/Intern  
  117. 117. IdenCfy  an  Income  Property  On  Site     What  to  do  when  you  arrive   [ANCHOR  SLIDE]   Drive  the  neighborhood     Arrive  at  the  property  10  minutes  early:  Set  an   example  for  the  people  you  do  business  with     Have  all  your  checklists  ready  
  118. 118. IdenCfy  an  Income  Property  On  Site         The  Walkthrough   [ANCHOR  SLIDE]     Record  important  informaCon    
  119. 119. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Exterior     [ANCHOR  SLIDE]   Property   •  Where  are  the  lot  lines?   •  Is  the  lot  large  enough  for  a  future  severance?   •  Any  easements  or  encroachments?   •  How  close  to  the  adjacent  house?  
  120. 120. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Exterior     [ANCHOR  SLIDE]   Windows   •  Basement  windows   •  LocaCons     •  Above  or  below  grade     •  Cracks   •  Lintel   •  Window  Type  
  121. 121. IdenCfy  an  Income  Property  On  Site     •  •  •  •  •  •  The  Walkthrough:  Exterior   [ANCHOR  SLIDE]   Brick  or  siding   FoundaCon   Separate  entrance   Roof  condiCon   Eaves  and  downspouts   On  street  parking    
  122. 122. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Interior     [ANCHOR  SLIDE]   All  rooms   •  Walls   •  Windows:  Vinyl  or  wood?  Single  or  double  pane?   •  Light  fixtures   •  Switches  and  receptacles     •  Flooring  
  123. 123. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Interior     [ANCHOR  SLIDE]   All  rooms   •  HeaCng  system   •  Heat  source  in  every  room?   •  Water  damage  on  ceiling?    
  124. 124. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Interior     [ANCHOR  SLIDE]   Bedrooms   •  Window  size:  L.V.E.   •  Closets      
  125. 125. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Interior     [ANCHOR  SLIDE]   Bathrooms   •  Plumbing  under  the  sink   •  Tub  surround   •  Toilet  condiCon?  Quality  of  installaCon?  
  126. 126. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Interior     [ANCHOR  SLIDE]   Kitchen   •  Plumbing  under  the  sink   •  Appliance  condiCon   •  Flooring  
  127. 127. IdenCfy  an  Income  Property  On  Site   The  Walkthrough:  Interior     [ANCHOR  SLIDE]   Basement   •  Finished  or  unfinished?   •  Subfloor     •  Plumbing  and  electrical  system  
  128. 128. IdenCfy  an  Income  Property  On  Site   Following  Up     [ANCHOR  SLIDE]     •  Record  your  data  in  a  report   •  Group  email  to  all  parCcipants  with  your  report   •  Decision  Cme:       To  make  an  offer  or  let  it  go  
  129. 129. IdenCfy  an  Income  Property  On  Site   LifeCme  Wealth  Academy  Decision  Making  Model   [ANCHOR  SLIDE]   KNOW   THINK   ACT         To  make  an  offer  or  let  it  go  
  130. 130. MarkeCng  Plan  
  131. 131. MarkeCng  Plan   Three  main  target  markets   BUYERS   SELLERS   TENANTS  
  132. 132. MarkeCng  Plan   MarkeNng  Blueprint   1   Research   2   3   Test  and   Measure   Nurture   Prospects   and   Customers   4   5   Systemize   Manage   and   Improve  
  133. 133. MarkeCng  Plan   Research     •  What  is  your  market  looking  for?   •  What  problem  are  you  solving  for  them?   •  Market  research:  look  at  comparable   products   •  Collect  and  analyze  the  data   •  Create  your  own  research  data!  
  134. 134. MarkeCng  Plan   Test  and  Measure   OpNons   FREE   AdverNsing   PAID   AdverNsing  
  135. 135. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Kijiji  
  136. 136. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   BulleCn  Boards  
  137. 137. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Social  Networking   •  Facebook   •  Twifer  
  138. 138. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Property  Sign  
  139. 139. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Bandit  Signs  
  140. 140. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Company  Website  
  141. 141. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Company  Website  
  142. 142. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Company  Vehicle  
  143. 143. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Business  Swag:  T-­‐Shirts,  Hats  
  144. 144. MarkeCng  Plan   Test  and  Measure:  Free  AdverCsing   Referral/Word  of  Mouth  
  145. 145. MarkeCng  Plan   Test  and  Measure   PAID  AdverNsing  
  146. 146. MarkeCng  Plan   Test  and  Measure:  Paid  AdverCsing   Newspaper  ads  
  147. 147. Online  featured  ads   Test  and  Measure:  Paid  AdverCsing   Online  featured  ads  
  148. 148. MarkeCng  Plan   Headline  is  the  most  important   Allow  the  prospecCve  tenant  to  contact   you  in  as  many  ways  as  possible     Phone  call   Email   Text  
  149. 149. MarkeCng  Plan   Test  and  Measure:  Paid  AdverCsing   Google  Ads  
  150. 150. MarkeCng  Plan   Test  and  Measure:  Paid  AdverCsing         How  Do  You  Measure?  
  151. 151. MarkeCng  Plan   Test  and  Measure:  Paid  AdverCsing  
  152. 152. MarkeCng  Plan   Test  and  Measure:  Paid  AdverCsing  
  153. 153. MarkeCng  Plan   Nurture  Prospects  and  Customers     •  Capture  prospect  informaCon   •  Add  value  to  them    
  154. 154. MarkeCng  Plan   Nurture  Prospects  and  Customers  
  155. 155. MarkeCng  Plan   MarkeNng  Blueprint   1   Research   2   3   Test  and   Measure   Nurture   Prospects   and   Customers   4   5   Systemize   Manage   and   Improve  
  156. 156. MarkeCng  Plan   Systemize     •  Organize  your  ads,  documents,  responses   •  Have  everything  ready  to  use  at  all  Cmes   •  Outsource!       Time  is  EVERYTHING!  
  157. 157. MarkeCng  Plan   MarkeNng  Blueprint   1   Research   2   3   Test  and   Measure   Nurture   Prospects   and   Customers   4   5   Systemize   Manage   and   Improve  
  158. 158. MarkeCng  Plan   Manage,  Review  and  Improve     •  Manage  your  outsourced  markeCng   •  Time  Block  once  a  week  to  review   •  Be  different,  be  befer  
  159. 159. MarkeCng  Plan   Manage,  Review  and  Improve     •  •  •  •  Manage  your  outsourced  markeCng   Time  Block  once  a  week  to  review   Be  different,  be  befer   Allocate  your  Cme  and  money  to  what  is   performing  the  best  
  160. 160. MarkeCng  Plan   Manage,  Review  and  Improve   DECISION  TIME     Most   •  Manage  your  outsourced  markeCng   Important   •  Time  Block  once  a  week  to  review   Moment!   •  Be  different,  be  befer   •  Allocate  your  Cme  and  money  to  what  is   performing  the  best   •  Don’t  make  an  emoConal  decision,  make  a   financial  decision  
  161. 161. The  Leasing  Process  
  162. 162. MarkeCng  Plan   Leasing  Blueprint   1   2   3   4   5   Pre-­‐ Screen   Tenants   Set   Show  the   Property   Select   Tenants   Sign  the   Lease   Appointments  
  163. 163. The  leasing  process   Screen  Tenants     TradiNonal  methods   •  ApplicaCon   •  Credit  check   •  Income  and  employment  check   •  Reference  Check   Non-­‐TradiNonal  methods   •  QuesCons   •  ConversaCon  
  164. 164. MarkeCng  Plan   Leasing  Blueprint   1   2   3   4   5   Pre-­‐ Screen   Tenants   Set   Show  the   Property   Select   Tenants   Sign  the   Lease   Appointments  
  165. 165. The  leasing  process     •  •  •  •  Set  Appointments   Prospect  tenant  calls  you   Prospect  tenant  emails  you   You  call  prospect  tenant     You  email  prospect  tenant  
  166. 166. MarkeCng  Plan   Leasing  Blueprint   1   2   3   4   5   Pre-­‐ Screen   Tenants   Set   Show  the   Property   Select   Tenants   Sign  the   Lease   Appointments  
  167. 167. The  leasing  process   Before  you  show  the  Property     •  Email  nurture  sequence   •  Have  prospecCve  tenant  confirm  appointment   •  Email  ConfirmaCon                                      OR   •  Call  them  one  hour  before   •  Once  confirmed,  send  an  e-­‐copy  of  the  lease  
  168. 168. The  leasing  process     •  •  •  •  •  •  Show  the  Property   Set  appointments  10  minutes  apart   Or  set  appointments  all  at  the  same  Cme   Get  there  30  minutes  early   Scented  candles,  cookies   Have  lease’s  ready  to  sign   Have  a  sign-­‐in  sheet  for  your  records  
  169. 169. MarkeCng  Plan   Leasing  Blueprint   1   2   3   4   5   Pre-­‐ Screen   Tenants   Set   Show  the   Property   Select   Tenants   Sign  the   Lease   Appointments  
  170. 170. The  leasing  process   Select  Tenants     •  •  •  •  ApplicaCon   Credit  check   Income  and  employment  check   Reference  Check   How  did  the   references   answer  the   quesNons?     Do  they  have  a   stable  income  and   employment?    
  171. 171. MarkeCng  Plan   Leasing  Blueprint   1   2   3   4   5   Pre-­‐ Screen   Tenants   Set   Show  the   Property   Select   Tenants   Sign  the   Lease   Appointments  
  172. 172. The  leasing  process     •  •  •  •  Sign  the  Lease   Send  them  a  copy  of  the  lease  before  you  meet   Meet  at  coffee  shop,  house,  office   Go  through  the  lease  word  for  word   Set  expectaCons  and  responsibly  clearly  NOW   •  Appliance  damage  vs  wear  and  tear   •  NSF  Payment   •  Guest  Policy  
  173. 173.   •  •  •  •  •  •  •  •  •  •  •  The  leasing  process   Elements  of  a  Lease  Agreement   Address,  Price,  Term   Parking   Prepaid  rent  (security  deposit)   Assignment  and  Sublejng   CondiCon  of  Premises   Locks  and  Keys   Payments  of  Taxes,  UCliCes   Use  of  Premise   Liability   TerminaCon   Rules  and  RegulaCons  
  174. 174. Management  Plan  
  175. 175. Managing  Tenants  for  Success   1. StarCng  the  relaConship   2. Stay  Organized!   3. Maintaining  the  relaConship   4. Go  over  and  above  expected   5. Repeat  customers  and  referrals   6. Know  your  rights  and  responsibiliCes  
  176. 176. Managing  Tenants  for  Success   StarCng  the  relaConship     •  Welcome  Gim   •  Monthly/Quarterly  lefer/email/phone  call   •  Welcome  info  sheet  
  177. 177. Managing  Tenants  for  Success     •  •  •  •  Move-­‐In   Be  there   Document  everything   Have  them  sign  off  on  property  condiCon   Fire  Safety  
  178. 178. Managing  Tenants  for  Success   Management  Blueprint   1. StarCng  the  relaConship   2.  Stay  Organized!   3. Maintaining  the  relaConship   4. Go  over  and  above  expected   5. Repeat  customers  and  referrals   6. Know  your  rights  and  responsibiliCes  
  179. 179. Managing  Tenants  for  Success   Stay  Organized     •  Set  it  up  right  the  first  Cme   •  Leverage  technology!  AUTOMATE  
  180. 180. Managing  Tenants  for  Success   Management  Blueprint   1. StarCng  the  relaConship   2. Stay  Organized!   3.  Maintaining  the  relaNonship   4. Go  over  and  above  expected   5. Repeat  customers  and  referrals   6. Know  your  rights  and  responsibiliCes  
  181. 181. Managing  Tenants  for  Success     Maintain  the  relaConship   Communicate  every  90  days   •  Email   •  Phone  call   •  Hand  wrifen  lefer  
  182. 182. Managing  Tenants  for  Success     Maintain  the  relaConship   Maintenance   •  Quarterly  inspecCon   •  Maintain  and  repair  items  before  they  ask    
  183. 183. Managing  Tenants  for  Success     Maintain  the  relaConship   Repairs   •  Repair  items  within  48  hours   •  Furnace/AC/Appliance  protecCon  plan   •  Have  more  than  one  handyman  on  call   •  Submit  repair  requests  via  online  form  
  184. 184. Managing  Tenants  for  Success   Management  Blueprint   1. StarCng  the  relaConship   2. Stay  Organized!   3. Maintaining  the  relaConship   4.  Go  over  and  above  expected   5. Repeat  customers  and  referrals   6. Know  your  rights  and  responsibiliCes  
  185. 185. Managing  Tenants  for  Success     Go  over  and  above  expected   •  Holiday  card  and  gim   •  Annual  party  for  all  your  tenants      
  186. 186. Managing  Tenants  for  Success   Management  Blueprint   1. StarCng  the  relaConship   2. Stay  Organized!   3. Maintaining  the  relaConship   4. Go  over  and  above  expected   5.  Repeat  customers  and  referrals   6. Know  your  rights  and  responsibiliCes  
  187. 187. Managing  Tenants  for  Success     Repeat  Customers  and  Referrals   •  Set  up  a  system  of  rewards  for  referrals   •  Gim  cards   •  Cash   •  Keep  all  past  tenants  in  your  database.  Stay  in   communicaCon  with  them  when  future  properCes   become  available    
  188. 188. Managing  Tenants  for  Success   Management  Blueprint   1. StarCng  the  relaConship   2. Stay  Organized!   3. Maintaining  the  relaConship   4. Go  over  and  above  expected   5. Repeat  customers  and  referrals   6.  Know  your  rights  and  responsibiliNes  
  189. 189. Managing  Tenants  for  Success   Know  Your  Rights  and  ResponsibiliCes     Common  Reasons  to  Evict  a  Tenant:     1.  Non  payment  of  rent   2.  Unit  owner  is  moving  in   3.  Damage  to  unit   4.  Interfered  with  safety  or  enjoyment  of  another  tenant   5.  Too  many  people  living  in  the  unit   6.  Tenant  engaged  in  illegal  acCon  
  190. 190. Managing  Tenants  for  Success   Know  Your  Rights  and  ResponsibiliCes     Document  Everything  the  moment  you  suspect  a   problem.     •  Time/Date  logs   •  Pictures  and  Videos   •  TesCmonials:  Neighbors,  tenants,  contractors,  etc  
  191. 191. Managing  Tenants  for  Success     Governing  Body  in  Ontario     The  Landlord  and  Tenant  Board       Governing  LegislaCon  in  Ontario     The  ResidenCal  Tenancy  Act  2006      
  192. 192. Managing  Tenants  for  Success   Common  Scenario         1.  2.  3.  4.  5.  6.  “My  tenant  has  not  paid  the  rent  they  owe”   File  NoCce:  N4   Wait  14  days  (7  days  for  a  daily  or  weekly  rental)   File  applicaCon  L1  $170   Receive  hearing  date  from  the  board   NoCfy  tenant  of  hearing  date   Appear  at  the  hearing  
  193. 193. Building  Your  Team  
  194. 194. Delegate!  
  195. 195. Building  Your  Team   STAGE  3   Contractor    AssociaCons   Private  Investor   Admin  Assistant   Property    Manager     STAGE  2                                Accountant                        Bookkeeper          Appraiser                          Handyman            Partner     STAGE  1   Lender                              Realtor            Insurance  Agent   Home  Inspector                      Real  Estate  Lawyer  
  196. 196. Building  Your  Team   Where  to  find  Team  Members?     4.  Local  directory   3.  Online  search   2.  Networking  groups   1.  Referral/  word  of  mouth     Always  Grow  your  Network!    
  197. 197. Rules  of  Engagement  
  198. 198. Rules  of  Engagement   “This  is  a  people  business,  not  a  paper  business”     Part  2  QuesCons   Their   VISION   Their   PROJECTS   Their     IDEAS   Their   PASSION   Their   GOALS  
  199. 199. Rules  of  Engagement   “This  is  a  people  business,  not  a  paper  business”     Closed  Ended  QuesCons:  Second  layer  quesCon  difficult   Where  are  you   from?   How  long  have   you  been  there?   What  company  do   you  work  for?   Where  in  the  city   do  you  live?  
  200. 200. Rules  of  Engagement   “This  is  a  people  business,  not  a  paper  business”     Open  Ended  QuesCons:  Prompt  a  second  layer  quesCon   What  are  you   excited  about?   What  is  you   favorite  part  of   what  you  do?   What  is  the  last   good  book  you   read?   What  is  your   favorite  thing  to   do  on  a  day  off?  
  201. 201. Rules  of  Engagement   “This  is  a  people  business,  not  a  paper  business”     1.  Part  2  QuesCons   2.  Don’t  just  call  when  you  want  something   3.  Birthdays   4.  Follow  up   5.  Add  value  to  their  lives  first  
  202. 202. Rules  of  Engagement   “This  is  a  people  business,  not  a  paper  business”     Add  Value  to  Their  Lives   Lend  a  book   Share  an   umbrella   Introduce   them   Share  an   interesNng   arNcle   Give  your   Nme   Share  your   knowledge   Open  or   hold  a  door   Listen!  
  203. 203. Rules  of  Engagement     •  •  •  •  •  •  Give  even  more…  Get  even  more!   TesCmonials:  give  and  receive   Community  involvement   Educate  others   Charitable  events   Local  celebrity   IntroducCons       You  Are  A  Connector  of  People!  
  204. 204. Main  types  of  Business   Ownership  
  205. 205. Main  Types  of  Business  Ownership   1.  Sole  Proprietor   2.  Partnership  
  206. 206. Main  Types  of  Business  Ownership   1.  Sole  Proprietor   2.  Partnership     1.  Tenants  in  Common   •  If  one  partner  dies  only  their  percentage  is  transferred   to  their  estate,  not  to  the  other  partner   •  May  pay  land  transfer  tax  to  remove  names     2.  Joint  Tenants   •  Survivorship:  When  one  partner  dies  the  full  ownership   goes  to  the  other  
  207. 207. Main  Types  of  Business  Ownership   1.  Sole  Proprietor   2.  Partnership   3.  CorporaPon   4.  LLP   5.  Trust  
  208. 208. ConvenPonal  Financing  and   Leverage  
  209. 209. ConvenPonal  Financing   The  “Big  5”       1.  Canadian  Imperial  Bank  of  Commerce:  CIBC   2.  Toronto  Dominion  Bank:  TD   3.  Bank  of  Nova  ScoPa:  Sco*abank   4.  Bank  of  Montreal:  BMO   5.  Royal  Bank  of  Canada:  RBC  
  210. 210. ConvenPonal  Financing   In  Canada  there  are:     24  Schedule  1  Banks   22  Schedule  2  Banks   424  credit  unions         470  Lending  Ins*tu*ons  in  Canada  
  211. 211. ConvenPonal  Financing     1.  2.  3.  4.  5.  Most  common  forms  of  FI  lending   Mortgage   Secured  LOC   Unsecured  LOC   Secured  Loan   Unsecured  Loan  
  212. 212. ConvenPonal  Financing   How  They  Qualify  The  Buyers     1. Employment  Status   2. Down  Payment   3. Credit  History  
  213. 213. ConvenPonal  Financing   Employment  Status     Income   Employment  History     Job  Security    
  214. 214. ConvenPonal  Financing   Employment  Status        GDS     The  percentage  of  gross  annual  income  required  to  cover  payments   associated  with  housing.                      GDS=  Annual  Mortgage  Payment  +  Property  Tax                                        Gross  Family  Income  
  215. 215. ConvenPonal  Financing   Employment  Status            GDS=  Annual  Mortgage  Payment  +  Property  Tax                                        Gross  Family  Income     Example   Jack  and  Jill,  two  law  students,  have  a  monthly  mortgage  payment  of  $1,000   (annual  payment  of  $12,000),  property  taxes  of  $3,000  and  a  gross  family   income  of  $45,000.       This  would  give  a  GDS  of  33  %.       Based  on  the  benchmark  of  30%,  Jack  and  Jill  appear  to  be  carrying  an   unacceptable  amount  of  debt.  
  216. 216. ConvenPonal  Financing   Employment  Status          TDS        The  percentage  of  gross  annual  income  required  to  cover  payments    associated  with  housing  and  all  other  debts  and  obligaPons        TDS=  Annual  Mortgage  Payment  +  Property  Tax  +  Debt  payments                                                                                                    Gross  Family  Income  
  217. 217. ConvenPonal  Financing   Employment  Status       TDS=  Annual  Mortgage  Payment  +  Property  Tax  +  Debt  payments                                                                                                    Gross  Family  Income     Example   For  example,  Jack  and  Jill,  two  law  students,  have  a  monthly  mortgage   payment  of  $1,000  (annual  payment  of  $12,000),  property  taxes  of  $3,000,   car  payments  totaling  $1,000  and  a  gross  family  income  of  $45,000.       This  would  give  a  TDS  of  around  36%.       Based  on  the  benchmark  of  40%,  Jack  and  Jill  appear  to  be  carrying  an   acceptable  amount  of  debt.  
  218. 218. ConvenPonal  Financing   Down  Payment     •  Measured  in  Loan-­‐To-­‐Value  (LTV)   •  >80%  LTV  is  considered  High-­‐Ra3o   •  High  ra*o  lending  is  required  by  law  to  be  insured   •  Proof  of  Down  Payment   •  GiMs  can  be  given  as  history  
  219. 219. ConvenPonal  Financing       CMHC  Fees   LTV   Amor*za*on  Period  (years)   25   30   35   80.01%   1.75%   1.95%   2.15%   85.01%   2.00%   2.20%   2.40%   90.01%   2.75%   2.95%   3.15%   95.01%   3.1%   3.30%   3.50%  
  220. 220. ConvenPonal  Financing   Personal  Credit     “It  is  the  measure  of  the  fiscal  responsibility  a   person  displays  in  dealing  with  their  creditors.”     Factors  affecPng  your  personal  credit:     5.  Types  of  Credit   FICO  Score   4.  Number  of  Inquiries   300-­‐900   3.  Length  of  Credit  History   2.  Use  of  Available  Credit   1.  Payment  History  
  221. 221. ConvenPonal  Financing   Credit  Agencies     1.  Equifax    www.equifax.com   2.  Transunion  www.transunion.com   Note:  The  actual  formulas  used  to  calculate  credit  scores  are  the   property  of  private  companies  and  are  not  available  to  the  public.  
  222. 222. ConvenPonal  Financing   How  They  Qualify  The  Property     4.  Use  listed  on  lisPng   3.  History   2.  CondiPon   1. Comparable  value  
  223. 223. ConvenPonal  Financing   Financing  Structures     Structure  1   80%  Mortgage     20%  Equity     Structure  2   95%  Mortgage   5%  Equity     Down  Payment   Structure  3   65%  HELOC   15%  Mortgage     20%  Equity  
  224. 224. ConvenPonal  Financing   Price  vs  Terms  
  225. 225. ConvenPonal  Financing   Instant  Access  to  Principle  Recapture   Sco*abank:  STEP  Mortgage   CIBC:  Home  Power  Plan   BMO:  Readyline   RBC:  Homeline   TD:  Currently  not  available  
  226. 226. ConvenPonal  Financing   Flip  to  Yourself   Sco*abank:  Purchase  Plus  Improvements   CIBC:  Purchase  Plus  Improvements   BMO:  Currently  not  available   RBC:  Currently  not  available   TD:  Currently  not  available  
  227. 227. ConvenPonal  Financing   Cash  Back  Mortgage  
  228. 228. ConvenPonal  Financing   Talk  to  the  right  expert  for   INVESOTRS!  
  229. 229. ConvenPonal  Financing   Financing  on  US  Proper*es   BMO/Harris  Bank:  Canadian  Gateway  Program  
  230. 230. ConvenPonal  Financing   Credit  Unions   •  Provincially  Regulated   •  Can  provide  80%  LTV  HELOC   •  Membership  structure          
  231. 231. Non-­‐ConvenPonal  Financing       1.  2.  3.  4.  Most  common  forms   Seller  Financing   Hard  Money  Lending   Private  Investor   Joint  Venture  Partner    
  232. 232. Non-­‐ConvenPonal  Financing     •  •  •  Seller  Financing   Also  called  VTB  or  seller  carryback  loan   Asset  based  loan   CreaPvity  and  NegoPaPon  a  MUST!   PROS     •  you  don’t  need  to  borrow  the  full   amount  from  the  bank   •  deal  is  quicker  and  cleaner   •  Your  credit  and  employment  not   a  big  issue   CONS     •  high  than  bank  interest  rate   (5-­‐7%)   •  rare  for  residenPal  
  233. 233. Non-­‐ConvenPonal  Financing     VariaPons  of  Seller  Financing     All-­‐inclusive  mortgage       •  seller  carries  the  promissory  note  and  mortgage  for  the  enPre  balance  of  the   home  price,  less  any  down  payment     Land  contract     •  land  contracts  don't  pass  Ptle  to  the  buyer,  but  give  the  buyer  "equitable   Ptle,"  a  temporarily  shared  ownership.     •  aoer  the  final  payment  the  buyer  gets  the  deed.  
  234. 234. Non-­‐ConvenPonal  Financing   VariaPons  of  Seller  Financing       Lease  Op*on     •  tenant  pays  a  lump  sum  to  owner  for  the  opPon  to  purchase  the  property  in   the  future   •  some  or  all  of  the  rental  payments  can  be  credited  against  the  purchase  price.       Sandwich  Lease  Op*on      
  235. 235. Non-­‐ConvenPonal  Financing       1.  2.  3.  4.  Most  common  forms   Seller  Financing   Hard  Money  Lending   Private  Investor   Joint  Venture  Partner    
  236. 236. Non-­‐ConvenPonal  Financing     •  •  •  Hard  Money  Loans   asset-­‐based  lending   short-­‐term  loans   can  be  a  second  mortgage   PROS     •  backed  by  the  value  of  the   property,  not  the  value  of  the   borrower     •  can  be  available  quickly       •  •  •    CONS     highest  interest  rate  of  all  loans   have  lower  loan-­‐to-­‐value  (LTV)   (50  -­‐65%  max)  raPos  than   tradiPonal  loans   high  admin  Fees  
  237. 237. Non-­‐ConvenPonal  Financing       1.  2.  3.  4.  Most  common  forms   Seller  Financing   Hard  Money  Lending   Private  Investor   Joint  Venture  Partner    
  238. 238. Non-­‐ConvenPonal  Financing     •  •  Private  Investor   requires  a  return  on  their  money,  not  equity   Requires  YOU  to  be  experienced,  prepared  and  organized   PROS     •  Asset  based  lending       •  •  CONS     Interest  rates  @  10%-­‐12%   High  compePPon  
  239. 239. Non-­‐ConvenPonal  Financing           Private  Investor   Don’t  forget  the  RSP  Mortgage!  
  240. 240. Non-­‐ConvenPonal  Financing   Also  eligible  to  be  self  directed:     RESP:  Registered  EducaPon  Saving  Plan     RRIF:  Registered  RePrement  Income  Fund   TFSA:  Tax  Free  Savings  Account   LIRA:  Locked-­‐in  RePrement  Account      
  241. 241. Non-­‐ConvenPonal  Financing       1.  2.  3.  4.  Most  common  forms   Seller  Financing   Hard  Money  Lending   Private  Investor   Joint  Venture  Partner    
  242. 242. Non-­‐ConvenPonal  Financing       Joint  Venture  Partnership   "A  business  undertaken  by  two  or  more  individuals  or  companies  in  an   effort  to  share  risk,  use  resources,  Mme,  knowledge,  and  differences  in   experMse  for  a  common  goal"  
  243. 243. Non-­‐ConvenPonal  Financing     •  •  Joint  Venture  Partner   Equity  share   Max  50  investors  in  Ontario   PROS     •  Unlimited  deal  combinaPons   •  leverages  everyone  strengths   •  Unlimited  deals       •  •  CONS     you  give  up  equity   more  than  one  decision  maker  
  244. 244. Non-­‐ConvenPonal  Financing       •  •  •  •  •  •  Joint  Venture  Partner:  The  Agreement   IniPal  ContribuPons   ResponsibiliPes   Profit  Share   Cash  Calls   Exit  Strategy   Early  Exit  opPons  
  245. 245. Non-­‐ConvenPonal  Financing   Joint  Venture  Partner:  ContribuPons   Money   Knowledge   Time   Contacts   Skill   Experience  
  246. 246. Non-­‐ConvenPonal  Financing   Joint  Venture  Partner:  ContribuPons   Partner  1   Time   Experience   Partner  2   Contacts   Knowledge   Skill   Time  
  247. 247. Non-­‐ConvenPonal  Financing   CreaPve  Financing  Deal  Structure   15%  Personal  Cash   20%  Private  Investor   65%  Seller  holds  note  
  248. 248. Non-­‐ConvenPonal  Financing   CreaPve  Financing  Deal  Structure   15%  Personal  Cash   20%  Private  Investor   65%  Mortgage  
  249. 249. Non-­‐ConvenPonal  Financing   CreaPve  Financing  Deal  Structure   20%  Personal  Cash   15%  Private  Investor   65%  Seller  holds  note  
  250. 250. Non-­‐ConvenPonal  Financing   CreaPve  Financing  Deal  Structure   10%  Personal  Cash   90%  Seller  holds  note  
  251. 251. Is  100%  Financing  Possible?   5  ways  to  do  a  “No  Money  Down”  deal   20%  Personal  Income  LOC   80%  Mortgage  
  252. 252. Is  100%  Financing  Possible?   5  ways  to  do  a  “No  Money  Down”  deal   20%  Private  Investor   80%  Mortgage  
  253. 253. Is  100%  Financing  Possible?   5  ways  to  do  a  “No  Money  Down”  deal   25%  Business  Partner  Income  LOC   25%  Personal  Income  LOC   50%  Seller  holds  note  
  254. 254. Is  100%  Financing  Possible?   5  ways  to  do  a  “No  Money  Down”  deal   100%  Mortgage  
  255. 255. Is  100%  Financing  Possible?   5  ways  to  do  a  “No  Money  Down”  deal   100%  Private  Investor  
  256. 256. RenovaPons  
  257. 257. RenovaPons   4  steps  to  a  successful  renovaPon       1. Have  a  plan   2. Find  a  contractor   3. The  renovaPon  process   4. Follow  up  and  measure  results  
  258. 258. RenovaPons   Planning  your  renovaPon:     3  Factors  to  Balance  
  259. 259. RenovaPons:  Have  a  Plan   SCOPE   QUALITY   MONEY   TIME  
  260. 260. RenovaPons:  Have  a  Plan     1.  SCOPE   •  Scope  of  work:  list  of  what  must  be  done   •  ‘must  have’  vs  ‘would  be  nice’       •  Always  prepare  a  couple  opPons   •  Appeal  to  90%  of  populaPon,  90%  of  the  Pme    
  261. 261. RenovaPons:  Have  a  Plan     2.  MONEY   •  Create  a  budget  for  each  opPon   •  Affordable  materials  and  products   •  Plan  for  a  minimum  10%  conPngency  fund    
  262. 262. RenovaPons:  Have  a  Plan     3.  TIME   •  Make  a  ‘Pme  budget’   •  construcPon  calendar   •  Divide  the  renovaPon  into  3  or  4  Pme  stages    
  263. 263. RenovaPons:  Have  a  Plan     QUALITY   •  No  compromises!   •  Everything  you  can  see  and  can’t  see   •  QUALITY  is  result  of  proper  planning  of  SCOPE,   TIME  and  MONEY    
  264. 264. RenovaPons   4  steps  to  a  successful  renovaPon       1. Have  a  plan   2.  Find  a  contractor   3. The  renovaPon  process   4. Follow  up  and  measure  results  
  265. 265. RenovaPons:  Finding  a  Contractor     •  •  •  •  •  •  Find  the  contractor   Local  bandit  signs   Local  Directory   Online  search   Referral/word  of  mouth   Networking  group   Neighborhood  work  
  266. 266. RenovaPons:  Finding  a  Contractor   Do  your  homework     •  Research,  research,  research   •  Online  sites,  BBB   •  Ask  for  references  and  photos  from  recent  projects   •  Talk  to  references   •  Did  the  project  meet  their  expectaPons?   •  How  were  the  workers  and  subs?   •  How  was  the  SCOPE,  TIME,  MONEY,  QUALITY?  
  267. 267. RenovaPons:  Finding  a  Contractor     •  •  •  •  Ask  ques*ons   Are  they  licensed?  Ask  for  copy   Do  they  have  insurance?  Ask  for  copy   Ask  for  workers  comp  informaPon   How  long  have  they  been  in  business  for  and  what  is   there  area  of  experPse?   •  How  much  money  do  they  require  as  a  down   payment  for  the  work?   •  How  much  Pme  do  they  expect  the  project  to  take?   •  How  long  do  they  guarantee  their  work  for?  
  268. 268. RenovaPons:  Finding  a  Contractor     •  •  •  •  •  Professionalism   Do  they  even  have  a  standard  contract?   Do  they  recommend  permits?   Do  they  guarantee  the  work?   Appearance/demeanor/behavior/language   Branding?  
  269. 269. RenovaPons:  Finding  a  Contractor   Shop  around     •  Get  bids  from  3  different  contractors  
  270. 270. RenovaPons   4  steps  to  a  successful  renovaPon       1. Have  a  plan   2. Find  a  contractor   3.  The  renova*on  process   4. Follow  up  and  measure  results  
  271. 271. RenovaPons:  RenovaPon  Process   Contractor  Renova*on  Blueprint   1   2   3   4   5   Agree  on   Project   Sign   Documents   Get   Building   Permits   Changes   and   Payments   Final     Sign-­‐off  
  272. 272. RenovaPons:  RenovaPon  Process   1.  Agree  on  the  project   •  •  •  •  SCOPE   TIME   MONEY   QUALITY   Always  have  a   minimum  10%   con*ngency   fund  
  273. 273. RenovaPons:  RenovaPon  Process   2.        Sign  the  Documents   •  •  •  •  Independent  contractor  agreement   Scope  of  Work   ConstrucPon  Schedule   Payment  Schedule  
  274. 274. RenovaPons:  RenovaPon  Process   3.        Building  Permits   •  •  •  No  work  starts  unPl  you  see  building  permits   Building  permits  are  required  when  doing  most   renovaPons   Common  exempPons:  PainPng,  Flooring,  replacing   doors,  light  fixtures,  door  hardware  
  275. 275. RenovaPons:  RenovaPon  Process   4.        Changes  and  payment   •  •  Always  sign  a  ‘change  of  work’  order   Follow  the  construcPon  and  payment  schedule  
  276. 276. RenovaPons:  RenovaPon  Process   5.        Final  Sign-­‐Off   •  •  •  •  •  Walk  through  renovated  space  with  contractor   Use  scope  of  work  and  any  change  of  work  orders  as   a  sign  off;  both  iniPal  items  complete   Inspect  for  any  damage  done  by  contractor  or  subs   Make  final  payment  only  when:   •  Work  is  complete   •  Any  damage  is  repaired   •  Your  are  100%  saPsfied  with  the  work   Give  a  tesPmonial  and  ask  for  a  tesPmonial  
  277. 277. RenovaPons   4  steps  to  a  successful  renovaPon       1. Have  a  plan   2. Find  a  contractor   3. The  renovaPon  process   4.  Follow  up  and  measure  results  
  278. 278. RenovaPons:  Follow-­‐Up  and   Measure  Results   •  •  •  •  Check  the  renovaPons  aoer  30  days,  90  days  and  1   year   Make  note  of  material  and  labour  durability   Re-­‐use  durable  materials  and  labour   DisconPnue  use  of  poor  materials  and  labour  
  279. 279. Plan  of  AcPon  
  280. 280. Plan  of  AcPon   1.  Know  your  goals   2.  Develop  your  business  plan   3.  Build  your  team   4.  Organize  your  business   5.  Market  research   6.  PracPce,  pracPce,  pracPce   7.  Make  offers   8.  Purchase  one  property   9.  Repeat  
  281. 281. Plan  of  AcPon     Important   Con*nue  to  educate  yourself     Add  value  to  other  peoples  lives      
  282. 282. [ANCHOR  SLIDE]  

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