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Success and more - 4 properties and growing

johninottawa

0
REIN Member
Joined
May 27, 2011
Messages
78
I really meant get this done a few weeks ago, but after the REIN meeting last night I thought I'd really better get going on it. I joined REIN in September of 2011 and set my first goal based on the 17-3 program to get my first 3 properties in my first year. I have celebrated all along the way at each accepted offer, closing and signed lease but I had said I would really say I had a success story when I had bought and rented 3 properties. I closed on the 3rd property at the end of September of this year and the tenants moved in in December.



Along the way I have gone from knowing nothing about RE to become confident in analysis, geo specialization and negotiation. I have learned to focus on a property type and become comfortable with buying houses needing renovations to make the suites real good quality homes that I can be proud to rent out. I have built a team I rely on and have total confidence in with a realtor, inspector, lawyer, banker, renovators and property mangement. In December not only did I get that 3rd place rented, I closed on my fourth suited house and now have eight doors. I am so grateful to REIN and the REIN membership who have given me advice and encouragement along the way, James Knull my realtor, and Jared Hope whose company provides my management services. They haven't just worked with me but they have helped learn along the way and provided help and advice way beyond what I would have expected. I know I still have lots to learn but my proudest moments now are when I can share what I have learned and offer encouragement go other REIN members. Last night I received the BC Rookie of the Year award and besides just the honour of receiving it, I was rewarded with the chance to talk to several newer members and to be able to say yes, it is possible. While I am very comfortable speaking to groups, one on one networking is the hardest thing for me. To everyone who stops to chat with me thank you. This year I plan to Joint Venture now that I can show that I have a successful model and those chances to talk and share at REIN help me become comfortable in talking about my success and practicing attraction.



Meanhile if you want to know the story of how it all started, read on.



For many years I had imagined or wondered about Real estate investment but never did anything about it. In May of 2011, at work I was feeling that I had to keep sacrificing family time and needs to to hold a
job that was regularly threatened to be pulled out from under me
whether I did it well or not. I took a good look at my RRSPs and said how much longer was I working and was not at all happy. I wanted to reach the point where I worked because I wanted to do the work I was doing, not selling my soul because I had to hold on to the job for the family's future.



Something needed to change but I still didn't have a plan. I had always wondered about RE and decided I was going to learn about real estate investing and here was where the universe took an active hand. I am sure I could easily have become one of the seminar grads Don talks about but for what happened soon after. I picked up some oddball business tabloid that I had never seen before nor since and somehow noticed a tiny little 2 column by 4 inch ad for some meeting about real estate put on by some investment group I had never heard of. My first thought was "ah-a here we go". I really didn't know what or who the ad was describing, just that it was about real estate (seminar grad here I come). But then I looked and it was "all the way" in Surrey (I live in Coquitlam) and was the next day. So I thought " I can never get organized for that, it'll be to hard to arrange to get tickets" (the excuses we make). However, when I got home from work I found an email from someone I had met briefly months before. The email was sent to several contacts saying she had a few tickets for the same real estate investment event in Surrey the next day. So I said, "OK this is too weird. I have to go to this thing."



My contact met me there and pointed out the keynote speaker and asked me if I wanted to meet him. I had no clue who he was but I said sure and as we waited to talk to him I saw there were a few books on the table about investing in real estate and decided to buy one. I was introduced to the author who offered to sign the book. He wrote in it "live your dreams". I moved on and the event started. Eventually the keynote speaker came on, he talked about the investment climate in Surrey, how different cities are better at supporting investors etc. and began to talk about economic fundamentals. Wow, such clarity, insight and sense. Suddenly this thought that I could I invest in RE became real and tangible and hey there was a way to do it without guessing and speculating. I am sure you guessed by now that speaker was Don Campbell and the book I had picked up was Real Estate Investing in Canada. My photo here on myreinspace is me holding that book at that event.



I read that book in a hurry - twice. By September I was able to attend my first REIN meeting as a guest. The initial adrenaline rush had worn off and some skepticism had crept in. Did real people really do this, I thought? Although one on one networking is harder for me than presenting to a roomful of people, I did it and I was astounded. People were doing it, they were sharing all kinds of information with me and encouraging me. I joined that night and soon after attended the ACRE in Edmonton.



From there it was a matter of sticking to my commitment and keeping moving. I know how many say the first is the hardest. It wasn't with all the support I had (number 3 on the other hand...). If I can say one piece of advice it would be to just get started.



John Rogers

[email protected]
 

margaretcowan

0
REIN Member
Joined
Feb 22, 2008
Messages
469
Congratulations! I saw you accept the Rookie of the Year award this week in BC.



What an inspiring, beautiful success story! You put out your intention and things to help you move forward clicked into place. Not coincidences.



You educated yourself, followed the REIN principles, took massive action, used REIN to build a great team. You stuck with your vision of what you wanted and didn't let fear stop you.



Now you're an inspiration to others in REIN! Bravo!



Margaret



Mama Margaret & Friends Cooking Adventures In Italy

www.italycookingschools.com
 

MichelSelim

0
REIN Member
Joined
Nov 13, 2007
Messages
122
It's very inspiring story indeed!! Thank you for sharing and Congrats!
The hardest is not the first three properties, it's actually breaking out of the old mentality [renter/employee] and believing that you can do it with the help of the REIN community.
 

TAMI

0
Registered
Joined
Jul 10, 2011
Messages
78
John,
Congratulations beautiful story and very inspiring .
Good luck
Tamir ofri
 

DonCampbell

Investor, Analyst, Author, Philanthropist
Staff member
REIN Member
Joined
Aug 22, 2007
Messages
2,005
Hi John



Thank you so much for sharing your journey and congratulations on your 4th property!



I especially like that you read the book then attended the event with a level of skepticism - that is a healthy approach and will serve you well as you build your portfolio.



You sharing your story will help others see that it is possible to take control of their finances, set some targets and go after them. As long as you are surrounded with people who believe in you, people who are on the same path as you AND most importantly you have a vision of what it is you want to achieve.



Great story John! "KEEP... Living Your Dreams" :)



Don R Campbell
 

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Joined
Nov 11, 2012
Messages
71
Congratulations on following your dreams!

I have had somewhat similar experiences with the seminar thing. I think the first one I attended was through an online ad. It was for a seminar put on by the Trump Organization labelled 'The Trump Entrepreneur Apprenticeship.' I took the course, and soaked up the information, however they had a secondary agenda- to get me to sign up for a mentorship program and pay a crazy fee. They also investments for me in the US. I declined for the backended agenda. The second part was a Canadaian affiliate to this and I flew to Calgary for another program. It had a backend agenda as well, and very few attendees. I was actually many steps ahead of the instructors at that program.

I have heard and read about similar 'negative' type seminar agendas.



I read Don Campbells book years ago and decided to go online and find out about attending a seminar. I flew in and out of Calgary to attend a REIN meeting in the spring of 2012. I was surprised to see the professionalism, like minded people, and Canadian based program. As a Saskatchewan farmer at the time, I made a mental note to go to an ACRE event ASAP. I drove to Edmonton that fall, attended ACRE and became a REIN member.

I can proudly say that I just renewed my initial membership.



When I attended ACRE in Edmonton, I was stuck. Most investors get stuck, get out, and get stuck again. I wanted to buy a 12 unit building but did not know how. I can proudly say that after the event I was so pumped and inspired. On my way home driving, I did numbers in my truck. By the time I hit Lloydminster, I knew EXACTLY how I could buy that building. I phoned the realtor the next day to take action. Unfortuntely, it was conditionally sold.



When you get knocked down, you get up again.... I was determined so I dug deeper and found a 4-plex available. I closed on it. At the same time, and 8- plex listed. I closed it as well. I got the 12 units in a different manner. My confidence from REIN gave me momentum.



It is great learning systems and having education for going to the next level. I can say from that initial ACRE event, I have been on fire. My life has completely changed from spending hours sitting on a combine and tractor to being a full time investor. I am living the Dream. The members and leadership of REIN have been an inspiration!
 

johninottawa

0
REIN Member
Joined
May 27, 2011
Messages
78
Fantastic story as well Trevis, thanks for posting it it and congratulations on your own success.

Althought I am from BC, I am often at Edmonton events. So if you are going to any more Edmonton events (or Vancouver) I'd love to chat face to face.
 

3canctheayr

0
Registered
Joined
Nov 28, 2013
Messages
66
Hi Trevis-



I'm wondering if you could clarify what funds you sourced for the down payments on the 2 properties? Especially on something like a 4 plex & 8 plex which would need significant grubstakes.

ie. did you use existing home equity, RRSPs, savings, gifts?? or?



Thanks in advance.



Brian
 

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Joined
Nov 11, 2012
Messages
71
On my first rental many years ago after finishing university, I scraped together $10,000 as my down payment on a suited house. Fast forward 6 years, and the investment was paid off. I was naive at the time, and didn't understand things well, so I refinanced the property and used the money to build my primary residence (with some other money from my main business) This said, I had no mortgage on my house. Fast forward a few more years, and I reappraised my initial house, which had gained huge on appreciation, and I purchased for cash a couple other little homes. I had a suited house (with 2 lower units and an upper unit), and 2 single family homes (without mortgages), and my primary residence (which I built alot myself and which had no mortgage)

Fast forward many deals now..... At one point I took out a heloc and bought a ton of little homes. Some ugly, some not bad. Through quick renos, and then reappraisal, I kept growing my portfolio. One little house from a heloc for example purchased a duplex and a single family by using it as a downpayment. Then the duplex was renovated, reappraised, and the created value so I picked up a couple more homes....

So to answer the question, some of the money for the 8 and 4 came from reappraisal of existing properties and then using the proceeds as a downpayment, and some came from using little homes as downpayment that had no mortgage. I have been aggressivley buying rental houses privately with 'huge equity' on day one for any number of reasons..... access to capital, estate deals, health issues, foreclosures, and making deals by being creative. Yes, I recently bought a modular home in Strathmore with an intention of moving it 800 km as a rental. By knowing my area extremely well, and my market extremely well, I see gold where no others can. My crew of contractors was my turning point from going to a large operation. To paraphrase Steve Flaman, an owner of Flaman Sales 'Hire people to do things you are not good at, or that you do not have the time to do.'

The other turning point was when I lost out in my first attempt to buy a 12 unit building by another investor in August of 2011. I heard the quote attributed to Jerry Bourgault 'Fear is holding you back.' I stepped up and closed 6 deals in my combine. REIN made the next major difference.....
 
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