Can REIN work for me right now

[dasilvja23]

First let me apologize for the fact that my keyboard has switched over to another input, so I cant put in an apostrophe, question mark, quotations, and probably a few others. Kind of funny.



Well, Im very interested in the resources REIN has to offer and I was hoping some experienced members (preferably some that started from scratch - which is where Im starting) could help by providing a little insight. I have only recently decided to pursue a career in real estate and I am a complete novice. As if that werent enough of a disadvantage, I have basically no capital at all to start with and a pretty bad credit score. I declared bankruptcy about 7 years ago. My credit bureau will be clear of it in next spring.



Having said all that, does REIN provide any advice and/or guidance for someone in a position like mine. Is it possible to, perhaps, to do a joint venture while in my position.



I have been doing a lot of research on a lot of different real estate investment training programs and resources and this seems like the one I would benefit the most from in the long term. But there are also some out of the US that would provide fast returns. I have had my eye, primarily, on on that focuses on tax delinquent properties and basically being a middle man so that I dont ever have to own the property. I would have to take a big tax hit but even with that I could earn some money to use to invest in more Canadian opportunities.



Do you think it would be wiser to invest what little money I have in REIN. Would it be realistic to expect any kind of significant return in the next 6 months if I do.



Thanks for taking the time to read this and thank you in advance if you choose to offer some advice.

 

[Thomas Beyer]

What is your special skill or past event in your life that someone would do a JV with you ?



Read some of these educational posts, such as five ways to make money and how to get started here: http://myreinspace.com/public_forum...9-Educational_REIN_Posts_by_Thomas_Beyer.html



You may wish to drop that first sentence in your post as it is irrelevant and one doesn't notice until one reads it. To attract JV capital, one needs confidence, experience and ideally a proven track record . Would you go to a dentist that advertised root canal work at 50% off because he has never done it before ? Perhaps someone might do it for 50% off by a foreign experienced dentist unlicensed here, but an inexperienced one ?



May I suggest that you start with the first way to make money as outlined in my link above, then take it from there, perhaps after your credit is repaired. Having no money and poor credit is a not a good base for real estate investment. However, some folks, and you may be one of them, are able to work hard, research well and convince people they know (father, grandma, brother-in-law, uncle Paul, ..) to qualify for a mortgage and put down the necessary downpayment and then take a share pf the proceeds down the road. REIN teaches you very well how to do that, but of course experience, your own cash and/or good credit would work better.

 

[Sherilynn]

REIN educates on all aspects of real estate, including ways to buy real estate with little to no money and without qualifying for a mortgage. There are many REIN members that have done exactly that. There are even members who started investing when they were unemployed.



And REIN members are happy to share their information and experience. The best way to learn these methods is by attending events such as the ones that REIN hosts, and talking to as many people as you possibly can.



I am unfamiliar with most US courses offering "fast returns." The only one with which I am familiar offers very expensive "coaching."



As for your keyboard issue, try clicking the keyboard icon at the bottom right of your screen and ensure that it is on "US." My keyboard often switches itself to Canadian French (just to mess with my head), and I'm guessing that's what yours has done.

 

[dasilvja23]

Thank you very much for taking the time to reply!



I currently work full-time (around 70 hours a week) but I will do my best to attend some of the seminars REIN hosts. I will also definitely take advantage of all the resources that have been made available online and pick the brains of everyone I can. I'm really eager to learn about real estate investing and I'm extremely grateful for the people in this community that are willing to help me along the way (even with issues regarding my keyboard).



The training I was referring too is more of a turn-key system by Jack Bosch where you find the owner of properties that are about to become tax delinquent and have them sign an agreement to sell you the property for a fraction of market value. You, apparently, set the closing date for approximately 6 weeks down the road and use that time to find an investor. You then sell the agreement to the investor at a higher cost than that of the due taxes and keep the surplus. At least that's how I understand it. I haven't ordered it yet.



I've read enough positive reviews to feel comfortable forking out the $1200 to give it a try. Mainly because Jack's team will buy the agreement themselves for a flat rate of $10,000 or 30% of whatever they profit from whatever deal they decide to do. All that I have to do is get in touch with those people, and how to do that, of course, is something he explains with the program.



My hope is that I can do this long enough to learn the system to do the deals on my own while saving whatever money I earn for more, dare I say, legitimate training here in Canada.



Thanks again for your reply and feel free to add anything you think might be relevant. I really appreciate it.

 

[Thomas Beyer]

[quote user=dasilvja23] I currently work full-time (around 70 hours a week) but I will do my best to attend some of the seminars REIN hosts.


How do you have time for real estate research on the ground ?



Yes, read some books and attend seminars. Some folks, and you may be one of them, even without real experience, are able to work hard, research
well and convince people they know (father, grandma, brother-in-law,
uncle Paul, ..) to qualify for a mortgage and put down the necessary
downpayment and then take a share pf the proceeds down the road. REIN
teaches you very well how to do that, but of course experience, your own
cash and/or good credit would work better.

 

[Sherilynn]

You may want to check out Barry McGuire's Rapid Cash Flow Program available through REIN. Then you would have a trusted, Canadian advisory team on your side.

 

[alaas1977]

Hello



I would just like to add that REIN can significantly save you time and money in the long. I myself at first grew my portfolio alone and joined later, with that being said I fully believe that I could be even farther that we are now had we joined REIN early on. Many people are scared by the time commitment and financial outlay, but in education you truly get what you pay for, and REIN really does work.



REIN is proven, I'd be a bit wary of investing in the U.S. as a novice, their banking systems are a lot different than ours, more capital is usually needed to place a down payment or pay in full for the property with a LOC. Please DO be scared of any programs that promise fast returns, truly in the end it still requires a lot of effort and real estate isn't necessarily a "Get rich quick" but it is definitely a "Get rich" tool.



Lisa

 

[Cory Sperle]

[quote user=dasilvja23]I was hoping some experienced members (preferably some that started from scratch - which is where Im starting) could help by providing a little insight.


Well since I started from scratch I will share what I did.


1. Read books, as it costs little and is invaluable, 80 lessons by Thomas Beyer, Canadian real estate investing by Don Campbell, and rich dad poor dad would be good to start.


2. scrounge and save to buy your first place with 5% down, with a suite that you can rent out.


3. eventually buy another place, and rent out both units in your first place and self manage. you may decide right then if you hate it or want to keep going. Now attend some training courses to get maximum value now that your feet are wet.


4. sell both of those places and buy some more units, and duplexes if you can.


5. sell those and start buying and selling multifamily, build your net worth by reinvesting all your gains while working full time to support yourself and for insurance in case one of your properties dips into negative cash flow.


Well, all that took well over 10 years for me, but I took baby steps and learned from each one. Every plan has a price, what are you willing to give up to get where you want to go? investing your own money and time while your friends are at the lake buying boats, etc. No one will dispute the key to success in RE is time. Those who go long and plan usually do well, those that go short not so much. Remember baby steps become bigger steps later, take a big step now and you hit a landmine.

 

[dasilvja23]

Thanks Cory!



I appreciate all the valuable insight. I'll definitely pick up those books and start reading right away. I have to admit, at this point real estate is a little intimidating so I'm eager to start learning as much as I can so that I can really grasp how it all works and how smart deals are made.



Thanks again,



Jay

 

[Cory Sperle]

Your welcome, and remember it is not the success that comes from hard work, it is remembering the journey that got you there so enjoy every minute of it, even the smallest success! I am now helping people who are close to me to achieve their goals, and that is really the best part, so far but I still have a long way to go.

 

[Thomas Beyer]

[quote user=dasilvja23]real estate is a little intimidating
yes it can be .. but does not have to be once you know what you are doing: research, educating yourself (for example joining REIN and/or reading a few books and talking to lots of people who have done it or are in in) then writing offers, getting a mortgage, finding a property manager .. all very very doable if you surround yourself with the right team and GO FOR IT !

 

[Dan Golby]

I'm a bit late with the reply, but here is my 2 cents.....and maybe that is all it is worth



I read Don's book that Cory suggested above about 3 years ago (as well as Rich Dad, Poor Dad, and probably 10 others). With the knowledge I acquired then I found the confidence to finally buy 1 rental property in March of 2012.



The parts of the book where he suggested joining REIN, I kind of wrote it off and thought to myself "that is for city people" because I live 3 hours from a major center. I did however continue to learn from books and online thanks to this website. Fast forward to October 2013 and I saw the ads for ACRE live on here which I finally told myself, "what the heck, I have to go see what this is all about". Plus I wanted a chance to personally thank some people who have helped me along the way, some of them without even knowing it.



ACRE live far exceeded my expectations, and I signed up as an online member due to my remote location. Even though I read a lot of books before that I took away more from that weekend than I ever expected. I made 30 pages of notes over 3 days! I also got to meet people who have already commented above and shake their hand, and in some cases buy them a glass of wine



Now back to your original questions:

Can REIN work for me right now?

REIN can work for anybody, but keep in mind the N stands for Network. I'm sure there are people that have been in your shoes that you can seek out and get coaching from, talk to them, learn from their mistakes etc. It is all what you put into it. REIN events are great because everybody is there for the same reasons, knowledge, and helping each other out. REIN doesn't do the work, you have to do that, but the cool part is you reap the reward of all that work.



Your other question:

Would it be realistic to expect any kind of significant return in the next 6 months if I do?

I think there will be a significant return, but it might not be money you actually see in your pocket, it will be money you saved by not making drastic errors. This is especially important if you are running low on cash.



Since joining REIN I went from owning one rental property to now owning 3 properties. I have learned a TON along the way, developed a better investment strategy that fits my lifestyle now and began executing. I have also taken advantage of member benefits which makes the fees basically free.



Hope this helps in some way, I would recommend REIN to anybody.

 

[dasilvja23]

Thanks Dan!



I really appreciate the reply. You have a lot to say, don't you? lol It's great to hear about the progress other people have made and the journey that it took to get them to where they are. Everyone seems to agree REIN is a great network of people. I fully intend to take full advantage. I'm taking everyone's advice to heart and doing my best to reach out to other like-minded people to pick their brains.



This is the beginning of what, I expect, will be a very long and ongoing journey of my own. I'm definitely going to look into ACRE live and swing by the bookstore and pick of some of the books people have been recommending.



Thanks again for taking the time to reply. I really do appreciate it!

 

[Dan Golby]

[quote user=dasilvja23] Thanks Dan!



I really appreciate the reply. You have a lot to say, don't you? lol




I am a bit exhausting



Good luck!

 

[MonicaPaslawski]

Hi - thought I'd add my two cents in here as well. I have "thought" and "dabbled" in real estate for many years. I even "thought" about joining REIN for a long time. I read a lot of books and "thought" some more.



In 2012, I finally read Don Campell's book. I actually took the time to write my personal Belize. I finally decided that I needed to invest money in my education, so I joined REIN with an on-line membership. If it hadn't been for that step, I would still be "thinking"!



Since then we have bought five buy and hold properties using the ACRE system and built a team through recommendations of team members by REIN. I have taken advantage of all the education that I can through the REIN network, and even though I have yet to attend a monthly meeting (we live a long way from Edmonton), I feel that I have gained so much knowledge, confidence and ability to take action that I am an entirely different person than I was before. I plan to grow my business with JV partners (something I could never have even imagined just a couple of years ago) and will continue to learn, think, and TAKE ACTION.



I do recommend this network - we are on our way to achieving our personal Belize. I have REIN to thank for much of our success and I plan to be a member for a long, long, time!



Thanks again to all the people who write in the forums - you teach me lots!



Monica Paslawski



Red Willow Investments

Growing your wealth one home at a time!

 

[emineo]

I'm not going to claim to be a pro because I'm just starting out myself, but if you look at many business leaders out there a ton of them were eating ketchup sandwiches living on a buddy's couch (Mark Cuban). I firmly believe in life if you truly truly deep down want something, things will happen to guide you along the way. I am a 70-hour a week construction guy myself so I know what you mean being pressed for time.



I think, first and foremost, you really have to put a vision together with extremely specific details so you can be given a nice reminder and a kick in the butt when its needed. I have found that people that are "too cool" to think about the WHY and want to skip right to the numbers get bored/fall off the wagon. It does seem like a weird exercise to think about, but we're always so busy with "life" we forget to pause and see where the heck we're actually at within our vision!



Good luck to you, I'll race you to achieving personal belize!

 

[LAndersen]

Well said! REIN teaches us to much. So glad we both joined!

 

[PB2015]

I've ready Don Campbell's books and recommend them to new landlords and property investors.



Very worthwhile reading.



Head to Chapters and pick up a couple and you will learn a lot.

 

[jameskeith]

Hi Corey/Thomas,



I am in the same position as the original poster minus the bad credit and bankruptcy. Starting from zero.



I have already learned so much from some of the books people are mentioning. It's actually how I came across REIN and these forums. I would also like to recommend "The Canadian Real Estate Action Plan" by Peter Kinch. I can't imagine starting to invest without having read this. I guess you could say I am well into #1 on your list Corey. I do plan on joining REIN but at this time I am still doing my own research and planning out what I can do while I save for that first down payment.



My question has to do with your 2nd point Corey. I was under the impression that high ratio mortgages were not ideal when it comes to creating positive cash flow on your properties. I was also reading that having a high ratio mortgage makes it difficult if not impossible to access equity in that property. Can you (or anyone) shed some light on this topic? Does it make a difference in this case because it will be your primary residence?



Thomas,



Reading your posts has clarified so many things for me.....and I am sure I will understand some of your other posts as my education progresses... ; ) I just ordered your book from Amazon. Can't wait to get it. Thanks again.



James

 

[Matt Crowley]

[quote user=jameskeith] I was under the impression that high ratio mortgages were not ideal when it comes to creating positive cash flow on your properties. I was also reading that having a high ratio mortgage makes it difficult if not impossible to access equity in that property. Can you (or anyone) shed some light on this topic?


Yes, both are true. To my current knowledge, a minimum LTV (loan to value) of 80% is required in order to access the equity. So, if you put down 5%...or even 15% that cash will actually be locked into the mortgage and you will not be able to access this capital.



The ability to access equity will be influenced by two things (1) principal pay down (2) appreciation. Both take time.



The primary advantage of being able to access the equity in your home (or other rental properties) is that it is viewed as good as cash for a down payment. By contrast, a LOC (line of credit) is not typically viewed as cash that can be used for a down payment (at least that is what my broker told me when we discussed it in January).



[quote user=jameskeith]Does it make a difference in this case because it will be your primary residence?


As "The Canadian Real Estate Action Plan" discusses, qualifying for mortgages is going to require income space and cash. The primary advantage of putting 5% down is that you will have the ability to grow your income qualifying capacity. By paying a mortgage on time, your credit score will grow considerably. Mine went from around 700 to 798 in less than a year.



You need somewhere to live whether you choose to invest in real estate or not. For starting out, suited houses are pretty ideal. In this position, I would look at an already suited house (maybe non-conforming) and live in the basement. I would rent out the top floor and garage to a tenant which would carry the mortgage. While living in the basement I would develop it into a legal suite, which changes the function of the house. Maybe that takes a year. By changing the function of the house, you have increased its value substantially. Once the home is legal, lenders will now view the home more like a duplex with two separate streams of income rather than like a single family home with only one stream of income (when there is a non-conforming suite in the basement).



Now you can go buy a second personal residence at 5% down. This could be funded by more cash you have saved or through a possible refinance of the property depending on its current value. Then repeat the above strategy and move into a non-conforming basement. (If you live in the basement suite for at least a year before moving you can avoid capital gains as well).



That's just what we have done...there are many strategies out there. Just pick one and stick to it!



To answer your original question, cash flow is not something you are probably going to have much of at all with a high ratio mortgage.