My Personal Collage & Vision/Destination for my Long-Term Wealth Based on the ACRE System.

[XavierCP]

Hi REIN forum members,

I am reading for the second time the book Real Estate Investing in Canada: Creating Wealth with the ACRE System written by Don R. Campbell and this time I am super motivated to apply all the action steps described in the book.

Here's my personal collage & vision/destination for my long-term wealth based on the ACRE system.



If you read the text of my vision, my collage would make more sense. Here it is:


MY VISION:

Thanks to the ACRE system I reached financial independence!

After being an Expat for 5 years in Bali, Indonesia, I return there regularly few weeks a year and stop by Jakarta to meet Intan, my former partner in life and in business and my beautiful cats (Litchee and Chummy). I am a young snowbird, I travel in different places around the world during winter in Canada.

I rent one residence in Bali or similar location (few weeks a year) in a quiet neighborhood, with very good and stable internet. In the morning, I open all the windows to let the breeze in, smell the nature and hear the birds singing. A lot of plants, trees and flowers surround the house.

From time to time, I receive guests to stay with me. No traffic for me because my office is literally in the living room of the house. The windows are large so I have a feeling to be connected with the outside.

The town has all facilities I need (laundry, gas station, good choice of restaurants, cinema, magazine shop, barber shop, massages etc).

I have 10 rental properties in Canada and a monthly cash flow of CAD$ 15,000. I spend few months per year in Quebec with my father. While I am in Canada, I apply the ACRE system to invest in more rental properties.

I cultivate and maintain good relations with a network of real estate investors and digital marketers. I don’t know when I will share my life with another woman considering I had a relationship for 5 years and plus with Intan.

I have very good friends which I trust and love. I am always there for my family when they need my presence or financial help.

I spend between 10-30 hours per week to monitor and pursue my next real estate investment. This make me happy because I can forecast new projects in the future.

I continue to work as a Digital Marketer 5-15 hours per week for my clients. This provide me an additional source of income and a second field of expertise. I use my marketing knowledge for my rental properties when I have the opportunity.

I am very curious by nature so I spend few hours to dig in different subjects like Politics, Science, Technology etc. I enjoy reading weekly publications like The Economist, Courrier International (to keep my native French tongue in shape). I often read online posts and books related to real estate investments and digital marketing.

I keep myself in a great form. No matter where I am in the world, I swim at least 3 times a week followed by a session of stretching for my back. I keep my weight around 165 lbs.

I am not a fine connoisseur of music but when I find a good playlist on Youtube for instance the musics from the TV Series Suit or The Get Down, I like to listen to it over and over again on my laptop.

During my travels, I discover new cultures, learn new languages. I often meet new people via Couchsurfing and join events for socializing.

My Financial freedom allows me to invest in new startups and give money to charities. As an investor, I follow new developments and latest technological advancements with great interest especially space exploration, IT, blockchain etc.

I am also helping NGOs close to my personal interests (Democracy Now!, Kurzgesagt etc.) by donating regularly.


Xavier Clapin-Pépin

 

[Christopher Franco]

Great Story and thanks for sharing your success!


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[Thomas Beyer]

Well said. Keep the vision alive.

Now the hard part: execution, specifically step by next step list to get to ten properties, with low to no mortgages to get to $15,000/month.

How many do you have already ?
What’s your current income?
REIN will help you buy first or second or 8th property, but some significant cash from your own jeans is usually required before you can ask others to participate with you, based on a small track record and some real world expertise. So what’s the SPECIFIC action list to get from 1 to 3 to 6 to 10 properties?

$15,000/month is $1500/property if you have ten. That assumes basically no mortgage. That usually takes 15-25 years. How do you plan to shorten that?

 

[Martin1968]

Is it your vision? Or just dreaming.......

How will you get there? Where will the money for investing come from?
5-15 hours a week working? 30 hours researching?

Sorry that I can’t be more positive.......

Maybe some of these quotes from famous people will help you;

*Formula for success is rise early, work late* (and strike oil) JPGetty
*Opportunity is missed by most people because it is dressed in overalls and looks like work* Thomas Edison

Having said all that, wishing you nothing but the best in your own personal Shangri La

 

[XavierCP]

Well said. Keep the vision alive.

Now the hard part: execution, specifically step by next step list to get to ten properties, with low to no mortgages to get to $15,000/month.

How many do you have already ?
What’s your current income?
REIN will help you buy first or second or 8th property, but some significant cash from your own jeans is usually required before you can ask others to participate with you, based on a small track record and some real world expertise. So what’s the SPECIFIC action list to get from 1 to 3 to 6 to 10 properties?

$15,000/month is $1500/property if you have ten. That assumes basically no mortgage. That usually takes 15-25 years. How do you plan to shorten that?

Thank you ThomasBeyer for your answer,

Yes, like I wrote I read the whole book "Real Estate Investing in Canada: Creating Wealth with the ACRE System" written by Don R. Campbell once and now I re-read it but actively i.e. applying all the Action Steps one by one.

Just writing my vision and making the collage was not so easy for me. Asking myself where and how do I project myself in 5 years if I apply the ACRE system, I never did such exercise before.

Now, I start the Chapter 4; The Four Most Important Words In Real Estate Investing: “What's Behind The Curtain?”

To answer your questions:

Q. How many do you have already ?

A. For now 0.

Q. What’s your current income?

A. CAD$ 2,682 / month, working as a SEO expert for my small agency.

Q. REIN will help you buy first or second or 8th property, but some significant cash from your own jeans is usually required before you can ask others to participate with you, based on a small track record and some real world expertise. So what’s the SPECIFIC action list to get from 1 to 3 to 6 to 10 properties?

A. Yes, Don R. Campbell explains well in his book all the initial cash require at the beginning. I presently have around CAD$ 20,000 liquid asset. I am aiming for a property around CAD$ 150,000 for my first rental property. A down payment of 10 % could allow me to have a mortgage of CAD$ 200,000 but I hope to be eligible for the 5% down payment if it's possible because there's all the other expenses to think.

My idea is to use the ACRE system to find a rental property with a positive cash flow so I can quickly move to my second property investment.

Q. $15,000/month is $1500/property if you have ten. That assumes basically no mortgage. That usually takes 15-25 years. How do you plan to shorten that?

A. Yes the CAD$ 15,000/month as my cash flow, first it's a gross estimate because like I wrote, I really want to follow the ACRE system step by step and I am not yet at that step to project a realistic cash flow. To be honest, it was a quick mental evaluation and it can be different let's say CAD$ 10,000/month. I had to answer the question to write properly my vision

Also I was more thinking about the cash flow before operating expenses.
Cash flow more in this term: In real estate terms, cash flow is the byproduct of owning a rental property and leasing it to tenants for a monthly rental income. Source: https://www.mashvisor.com/blog/what-is-cash-flow/

Let me know if my understanding of cash flow is wrong? I am a rookie as real estate investor.

 

[XavierCP]

My bad, I was wrong with the cash flow considering this:

1. What is Positive Cash Flow Property? Definition: Positive Cash Flow Property is an investment property where the annual rent exceeds the total annual expenses, after tax deductions and depreciation are taken into account.
source: https://www.smartproperty.com.au/positive-cashflow-property-investment/

Okay so the cash flow is after operating expenses

What can be a realistic cash flow for my vision in 5 years, if starting from now I use 100% the ACRE system to invest in rental properties?

 

[XavierCP]

Is it your vision? Or just dreaming.......

How will you get there? Where will the money for investing come from?
5-15 hours a week working? 30 hours researching?

Sorry that I can’t be more positive.......

Maybe some of these quotes from famous people will help you;

*Formula for success is rise early, work late* (and strike oil) JPGetty
*Opportunity is missed by most people because it is dressed in overalls and looks like work* Thomas Edison

Having said all that, wishing you nothing but the best in your own personal Shangri La

Hi Martin1968,

It's my vision of myself in 5 years from now, it's an exercise I made recommended by Don R. Campbell from his book Real Estate Investing in Canada: Creating Wealth with the ACRE System.

To answer your questions:

A. How will you get there? Where will the money for investing come from?

By applying the ACRE system so I only invest in positive cash flow properties. The money will come from mortgages.

I learned from the book that most bankers will not lend you a new mortgage if your TDS ratio is above 40 to 42 percent.
TDS = Total Debt Service Monthly Payments / Your Monthly Income.

But the secret is, if your ratio:
Total Rents / Debt Expenses (Mortgage Payments + Property Taxes + Condo Fees)

is above 110 percent, then they no longer include your mortgages into your personal debt service calculation which allow you to get more and more mortgages from the banks. The challenge is to find an investment property mortgage broker or banker who understands and is willing to proceed but I believe it's possible.

Q. 5-15 hours a week working? 30 hours researching?

Yes I am lucky for personal reasons, I can save my income fast so after my first mortgage, I will focus to save the necessary for my next cash down and the other professionals service expenses associated with buying a property. As soon as I have enough savings I start over again the ACRE system or before as it can takes months to find a property with positive cash flow.

To be honest, I can be wrong, my thinking is probably wrong but after an online research, it seems that the ACRE system taught by Don R. Campbell and the REIN association is true and work if all steps of the system are applied properly. It's a lot of work though...

 

[kfort]

Buy a principle res that requires some reasonable cosmetic upgrades. Complete upgrades while renting out at least one bedroom to offset your costs. Refinance when your equity boost allows and when projected rent will cashflow nicely overall. Then buy your next principle residence and make your first purchase a rental only.

Start freelancing in your spare time. Get that income up. Save every penny you can from freelancing. Heck, there’s only about a thousand members here who think their website is job number 1 and could likely make use of your services so you could even offer up your services to real estate investors here. Might just learn something about investing while working.

Worth noting: there is not one “right” way to proceed, everyone does this differently. The above is simply how I would approach it if I were in your shoes.

If you’re buying a condo, get real comfortable with the current and projected finances of the Corp before you even consider it.


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[Thomas Beyer]

Some thoughts on how to get started here http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/


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[XavierCP]

Buy a principle res that requires some reasonable cosmetic upgrades. Complete upgrades while renting out at least one bedroom to offset your costs. Refinance when your equity boost allows and when projected rent will cashflow nicely overall. Then buy your next principle residence and make your first purchase a rental only.

Start freelancing in your spare time. Get that income up. Save every penny you can from freelancing. Heck, there’s only about a thousand members here who think their website is job number 1 and could likely make use of your services so you could even offer up your services to real estate investors here. Might just learn something about investing while working.

Worth noting: there is not one “right” way to proceed, everyone does this differently. The above is simply how I would approach it if I were in your shoes.

If you’re buying a condo, get real comfortable with the current and projected finances of the Corp before you even consider it.


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Amazing advices kfort, thank you very much for your time!

 

[XavierCP]

Some thoughts on how to get started here http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/


Sent from my iPhone using myREINspace

Wow! So interesting informations ThomasBeyer, I definitely have to take the time to read your posts!
This forum is full of great info!