surrey real estate investors club - strategy selection
TRANSCRIPT
When I have conversations with successful
investors they never give me stock tips. They
always talk about fundamentals. There is a
lesson here for entrepreneurs: Without a solid
understanding of fundamentals, it is hard to
make smart wealth building decisions.
Learning to analyze quickly and efficiently –
this is the knowledge that will separate you
from the rest. And that knowledge is scarce.
Mark Ford (Michael Masterson)
Future Plans
1. Strategy & Getting Started
2. Area Analysis & RE Cycle
3. Property Selection and Cashflow
4. Financing
5. Due Diligence & Making an Offer
6. Tenant Selection & Management
Then….
Tonight‟s Agenda
• Why or why not use RE as part of your
investment strategy
• Different types of RE investing
• How to get started today!
The Legal Stuff…
The information contained herein (the “Information”) is intended for general informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either Aspire Holdings or any of its affiliates.
Views expressed in this presentation are based on research materials available from sources that Aspire Holdings (d.b.a. “Aspire Real Estate”) considers reliable but neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information.
All real estate opportunities come with varying degrees of risk and past performance is not an indicator or guarantee of future results. Prices can go up or down and current performance may be lower or higher than any performance data quoted for comparisons.
A Simple Retirement Plan…
• Buy ONE townhouse at $300k and rent it for the
next 25 years.
• Each year income > expenses
• Average appreciation = 3%
• 25 years later - zero mortgage, an asset worth
>$600k and several $1000’s in monthly income!
• Like adding $2,000 / month to your retirement!
Why Real Estate?
• You can touch it!
• Can be leveraged, manipulated and controlled
• This makes it interesting!
• Provides diversification
• But it is a business and often a means to an
end. What are YOUR goals?
Why NOT Real Estate?
• Lower liquidity
• More education required?
• It is not passive income
• There is always risk
•This is often higher with shorter term strategies
•Do you want to be a real estate investor?
• Why?
•Do you not want to be a real estate investor?
•Why not?
Ask Yourself:
Different Types of RE Investing?
• REITs
• Second mortgages
• Pooled investment / private equity fund
• Money partner (in a JV)
• Realtor
• Mortgage broker
• Property manager
What is Your RE Strategy?
• Canada vs. US (or elsewhere)
• Residential vs. Commercial
• Single vs. multi-family (>4 units)
• Duplexes, triplexes, fourplexes
• Condo, townhouse, SFH, recreational
What Are Your RE Tactics?
• Should be driven by the market, the cycle,
your experience, your strategy and your goals.
• Flips
• Wholesaling (assignments)
• Buy and hold (B&H)
• Rent-to-Own (RTO)
• Short / Medium / Long Term Exits
“The question is not what if I die tomorrow? It is,
what if I live another 20 or 30 years the way I am?”
-Kim Wolinski
Getting Started Today
Why???????!!!!!!
• What and How
• Fear/Greed/Hope
“Just as goals are the fuel in the furnace of achievement, reasons „why‟ are the forces that
intensify your desire and drive you forward”-Brian Tracy (Maximum Achievement)
Question:
What do you like to do?
What is your purpose?
What would you dream of if you could
not fail?
Why do you want financial freedom?
Why are you here (learning about real
estate)?
Grab a piece of paper and pen or pencil.
Gaining Clarity
Question:
Create a vision for yourself. What do you want
life to look like in 5 years?
I would like to spend more time with my kids.
I like to see them grow.
I love my kids.
I would like to be my own boss
I don’t want people controlling my time
I like to do…
Obstacles!
• But
“Our buts are HUGE. And the longer we sit on
them, the more they continue to grow”
-S. Stephenson (Get off your “butt”)
• Support
“Walking with a friend in the dark is better than
walking alone in the light”
-Helen Keller
• Disbelief
“What we think, we become”
-Buddha
• Giving up
“The secret of life… is to fall 7 times and get up
8 times.”
-Paulo Coehlo (The Alchemist)
Obstacles!
More obstacles???
• Identify them
• How are you going to solve it?
Obstacle identified Action you can take to overcome challenge.
I have been turned down for financing.
Find a JV partner.
Nitty Gritty
Question:
What do you need to be where you want to be in
5 years?
What can you do THIS YEAR to get you closer to
your 5 year vision?
Question:
Break down your goals even further.
5 year vision and what you need for it:
Need to earn $60,000 of alternate income a year to replace my current job.
1 year 6 months
• Increase alternatesource of income by 20% by investing in real estate.
Learn about investing in real estate
Buy one property to buy and hold
Question:
What can you do today??
5 year vision and what you need for it:
Need to earn $60,000 of alternate income a year to replace my current job.
1 year 6 months 1 month/TODAY
• Increase alternatesource of income by 20% by investing in real estate.
Learn about investing in real estate
Buy one property to buy and hold
Go to Surrey REIC Read 2 real estate
investing books
Prepare finances and talk to mortgage broker
Get in contact with a realtor
Take Away Summary
1. Educate yourself on the possibilities and options
2. The „why‟ dictates the „how‟
3. Keep taking action - however small!
“...the sure sign of failure is procrastination. Even setting a starting date of tomorrow is a bad sign. People who really, truly want to create a real and permanent change in their
lives want to start now.”
- Michael Masterson (Automatic Wealth)