The Renegade Real Estate Investing Newsletter
"Cutting Through the Real Estate Investing B.S."
This FREE Real Estate Investing Tips newsletter is your window
into the world of real estate investing. You will never get closer
to the real action than learning straight from two Canadian brothers,
Tom & Nick Karadza, who are actually implementing the strategies they
In this weekly publication you will get access to our real world guides,
trends, tips, strategies and "how to" information that is being implemented
"on the streets" with real people, right here in Canada.
To access the full list of articles visit: www.TheRealEstateRenegades.com or check out their new blog: Blog.TheRealEstateRenegades.com
It is published every Thursday, if you have been forwarded
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Thursday September 25th, 2008
In this Issue:
- Renegade Commentary: Nick Back From Greece!
- Featured Article: "How To Get Started With Real Estate Market In Today's Market?"
Nick Back From Greece!
Nick is back from Greece and threw himself into the fire by showing up at our recent
FREE Training Class in our Burlington offices.
I don't think he was even off the plane for a full day yet. He's promised to share some
pictures over at our blog so check back
He made it to over to Egypt and the Red Sea for a few days as well. Wait until you hear
about the stories....lets just say his negotiation skills have made it to a new level!
With the U.S. financial crisis getting headline grabbing attention as it grows into a global topic
the most frequent question we're getting these days is "How do I get started in real estate in today's market?".
So we're going to share some thoughts on this in the the Featured Article below...enjoy!
And oh yeah, we'll be moving to a new email format over the next week or so. You may receive a "confirm
your subscription" email from us as we change providers.
And until next time...be a Renegade!
Tom & Nick Karadza
"The Real Estate Renegades"
p.s. Not yet an Income for Life Member?
Click here to apply...
New FREE Teleseminar CD
We recently interviewed some truly amazing real estate investors who reluctantly revealed the strategies they are using to create positive cash flow properties right in your own backyard.
This interview isn't "hype" but real results based on the implementation of a systematic investing approach.
We have made this available on an audio CD to anyone who requests it in an attempt to cut through all the B.S. we see and expose fundamentally correct strategies to real estate investing.
The audio CD comes with a 16-page report that tells you the truth about the system each of these investors used.
And why most people make things a lot harder than they need to be.
You request a free copy of the CD and report, while supplies last, by clicking here.
"How To Get Started in Real Estate Investing in Today's Market?"
OK, let's just get right to it...
Number 1. The first thing to keep in mind is that real estate investing is a local sport. So don't get caught up in the CNN headlines that say the U.S. market is collapsing. Is it suffering pretty badly? Yes. But not everywhere.
It's like me telling you that, "It's sunny in Canada today". Although that may be true in some parts of the country it's definitely not sunny everywhere. It can be sunny in Mississauga and I'll drive 10 minutes to Oakville and it's raining cats and dogs. Real Estate investing is the same way. You must ignore the headlines. It's mandatory.
Number 2. You must get the data yourself or work with people that have it. For example, with the "sky is falling" media everywhere I decided to look at the prices in Oakville, Milton, Burlington and Hamilton for August and found prices are up in August 2008 versus August 2009 3-5%.
Get the data for yourself. Use local real estate boards, they have great data. And use Census Canada data for population trends by community.
Number 3. In good economic times all housing increases in value. However, higher end homes spike up much higher than "starter" homes. So they are usually the ones that fall the most.
For those of you that know us you heard us explain that our family has personal experience in this from the early 90's crash. Be aware of this. When people say house prices are falling, ask them what type of house they are talking about. Make them get specific. Don't let lazy opinions sit unchallenged.
Number 4. In poor economic times (aside: if there even is such a thing, I know many people who just "decide" not to participate in bad times and go on to create amazing amounts of wealth when everyone else is running for cover) housing and shelter is still a need.
Read that again, housing and shelter is a need. So if you focus your investing on categories of homes that are needed (think starter homes) you exposure to risk is much less.
Number 5. The U.S. was giving out mortgages with no down payments to people who weren't working. Bad idea. Bad business. In Canada we had and still have some zero down mortgages but you actually have to have good credit and a job to qualify. Big difference. Really big.
In the U.S. you can deduct mortgage insurance off your taxes, in Canada you can't. You actually have to save some money in Canada to buy a house. This is a big deal. Does it mean Canada is immune to a downturn in the real estate market? No.
You know why? Downturns are normal. They are to be expected. To be planned for and to be profited from.
Number 6. Because real estate is played locally there are always opportunities in any market, up, down or sideways. Focus on good communities (employment diversity, growing popultation), think Burlington, Cambridge, Kitchener, Waterloo, even the Hamilton Mountain and Brantford.
Number 7. Then focus on good houses that will produce positive cash flow for you.
Don't get stuck "flipping" a house if you can't afford to hold it for many months without an offer. Been there, and it's not fun and it's not funny. Real estate investing is very different than real estate rehabbing. The later is more like creating a job for yourself.
Number 8. Find a good team of people. A good team of people knows how to invest. A good team will steer your past obstacles.
We've said this before and we'll say it again. The team is more important than the property. Remember that. Beginners forget it or don't know it. That's not you.
Number 9. History has proven that massive amounts of wealth have been created in times of uncertainty.
Think Carnegie, Getty, Rockefeller, Trump. Rob Minton has a great report about this that you can download here. More on this topic in a future article.
Number 10. Don't buy into the hype. Think for yourself. When everyone is running one way there is money to be made going the other way. Just the other day (September 2008) one of our investors got $13,000 up front in non-refundable money from a tenant in one of their properties.
People are making money right in your own backyard. Seriously. If you don't believe me track down the book "Acres of Diamonds", it's a short little story, it'll explain everything. I believe this may the original version here but I'm not certain.
Number 11. Use these 3 steps. First, find a team of people, second, use a proven system that others have tested and third, get started. Read and go to seminars but after six months if you haven't done anything you are wasting time. Will you make mistakes? Yes.
Will your team of professionals get you through them, yes. Will you grow and come out stronger? Definitely.
Number 12. Stop listening to your family and friends. Only listen to people who are doing it or have done it. Just stop listening and stop engaging in negative conversations.
Is real estate investing as simple as "colour by numbers"? No. But that's why there's money it, because not everyone will use their creativity to create wealth. You will use yours.
Number 13. Stop sleep walking and get busy. Hustle a little. It's good for you and it's a forgotten mode of operation.
Phew, there it is, now that it's off my chest I can enjoy my day....remember, be a Renegade, always!
For more real estate investing articles, case studies and guides visit www.TheRealEstateRenegades.com
About The Real Estate Renegades
Tom Karadza & Nick Karadza are authors of the book "Income For Life for Canadians",
available on Amazon.com by clicking here,
and work with a select group of real estate investors throughout the Greater Toronto Area.
They actually do what they talk about it.
They have been called 'Real Estate Renegades' because they are implementing
real estate investing strategies that were once thought to be impossible by
many 'industry professionals'. They focus on creating positive cash flow real estate.
In order to focus exclusively on real estate investing they have co-founded their own brokerage,
Rock Star Real Estate Inc.. The inspiration for the name came from the idea that we invest
in real estate to live life on our own terms. To create your very own "Rockstar Life", whether
that's time with the kids at the cottage or weekend getaways to L.A. and Tuscany!
Tom & Nick are also part of several mastermind groups in Canada and in the USA and publish a monthly 12-page real estate investing newsletter and audio series exclusively for their clients.
They also offer real estate investing classes, reports, one-on-one coaching
and mentoring, and other resources to help both beginner and experienced
real estate investors achieve ultimate success. Learn more now at:
You can meet them in person at their next FREE Real Estate Investing Class, "How to Invest in Nice Homes in Nice Areas" by signing up here: www.CanadianRealEstateTraining.com
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