The Renegade Real Estate Investing Newsletter

"Cutting Through the Real Estate Investing BS"

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 talk about!

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:

It is published every Thursday, if you have been forwarded this email and would like your own copy click here to sign up.

Thursday December 19th, 2008

In this Issue:

- Renegade Commentary: The "Sidney Crosby Syndrome"

- Featured Article: Residential Real Estate Investing...What You Should Know.

- Investing Strategy Tip of the Week: Interest Only Mortgages, "Are you nuts?"

The next FREE Real Estate Training Workshop:

Our next real estate training class is on Saturday January 26, 2007 at 10am in our Oakville offices. In this class you will learn how to profit from Real Estate without having to rehab and renovate distressed homes and create steady monthly income for yourself.

You will learn about actual real life success stories of investors doing this right in your own backyard. To get all the location details and hold your spot (because we regularly fill the class!) visit:

Renegade Commentary:
"The Sydney Crosby Syndrome"

The other day my five and a half your old son (or as he tells it "almost six dad!") was flipping wrist shots into a hockey net in our basement.

He wants to hit the top corner on every shot "just like Sidney does".

He must have shot a hundred times at the net, trying to get it in the corner just like his hero. Over and over again, putting in the time.

What happens to us big kids?

I have a similar story from a friend who wanted to hit a rocket of a drive off his brand new multi-thousand dollar Taylor Made golf clubs.

He spent the money because his hero is Tiger Woods and he wants to improve his game so he got the best clubs, the best shoes, the best balls, even the best towel to hang off his best golf bag.

Thing is, after 16 holes of slicing the ball into the trees he stops playing. That's it, gives up.

He had put in all of 2 hours with his new mega golf set and gave up, completely stopped. Just sat in the cart for the last two holes.

Another friend bought a $150 dollar hockey stick so he could shoot just like Sidney. After the first game with the stick and floating a few softies at the goalie with it, he blames the stick for seeing no difference in his shot!

Too many of us look at Sidney or Tiger and want to be just like them after an hour worth of work.

As kids we're not afraid to put in the time, we practice and practice.

As adults we want to cut to the finish line as fast as possible. "Gimme what I want now!" we scream.

What we forget is that time in the basement hitting the net or time on the course practicing your worst shot for the 100th time is where heroes are made.

Why am I telling you this?

The same thing applies to real estate.

Watch people who start out "investing". They're running around looking for the home run, the millionaire maker deal on their first at bat.

They're buying one book or course after another. The more expensive the better!

And then if they don't find a million dollar investment on their first attempt, they blame the course!

Do you see a pattern here?

All the wealthy I know spent time learning the ropes, picking up single family homes, letting them appreciate, building equity, using tax benefits and earning cash flow.

Then they moved into even bigger opportunties and some juicy ones began to present themselves.

They put in the sweat equity to learn the game and then the big opportunities just start to pop up.

You can't bank on a home run every time you pick up a property. But enough solid singles and doubles will make you a winner and a millionaire.

And then once you're in the game and you have a feel for it then every once in a while you'll hit a home run.

But you'll never get far swinging for the fences before you learn how to hit a single.

It's important to get yourself in the game but it's more important to stay in it.

Many people don't put in the time and effort, it's almost a lost discipline, don't let that be you.

Spending time "in the basement" learning the ropes, picking up valuable experiences that lead to hitting the top corner "just like Sidney does".

Happy Investing,

Tom & Nick Karadza
"The Real Estate Renegades"

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To request your own complimentary copy of our investing in "Nice Homes in Nice Areas" report go to and fill out the form at the bottom of the page.

Featured Article:

Residential Real Estate Investing
"A Step-by-Step Peak"

Residential real estate investing has so many great angles and opprotunities to create wealth it really gets my juices flowing with excitement.

For a beginner or even experienced residential real estate investor there is lots to learn and we're going to break out some of things to think about right here.

Everyone, and I mean everyone...your neighbour, friends, family, even in-laws have their opinions on what is right and what isn't when it comes to real estate.

And that's what makes this such an entertaining and if done right, profitable, topic.

Ready to rock? Let's go...

Residential Real Estate Investing
Commercial Real Estate Investing

One of the first things you should know about real estate investing is that in general any building that has four or more units in it is referred to as a commercial property.

Even if those units are used for residential purposes. So an apartment buidling is a commercial property.

There are exceptions to this but in general that's the case.

Commercial investment properties are also things like strip malls, office buildings, industrial units, warehouses etc..

This is important to know because lenders (the banks) treat these properties very differently when it comes to getting financing.

For commercial properties it's much more likely you'll have to put 25% or more as a down payment.

As we have discussed in last week's investment property mortgage article you can put 0% down on residential properties.

The difference with commercial transactions is that it's much more typical to see 'vendor take backs'.

This is where the seller carries back a portion of the value of the property (let's say 25%) and you pay a fixed amount every month to them just as you would the bank.

So the ability to get commercial investment properties at 0% down exists and there's definitely more creative vendor/seller take back financing that goes on in this arena compared to residential real estate investing.

If you use a mortgage broker for the transaction you will also likely pay a 'broker fee'. For residential real estate investing transactions the broker's fee is paid by the bank that takes the mortgage.

"What else is different with commercial versus residential real estate investing?"

The way residential properties are valued is very different than commercial properties.

For the full article click here to continue reading...

Investing Strategy Tip of the Week:

Interest Only Mortgages,
"Are You Nuts?"

Here's another example of why you shouldn't blindly be influenced by the opinions of the masses.

When interest only mortgages were announced in Canada a group of friends went on a long rant at how the whole country is headed towards disaster because these mortgages are "just getting out of control".

They then went on to convince themselves that interest only mortgages are the worst things possible. And that was the bottom line.

"Who would ever get that, you'll never pay off your mortgage that way....the world is coming to an end"

I found myself biting my tongue. I'm so excited that these mortgage products are available to Canadians.

Here's why...

As an investor I'm constantly looking to reduce my carrying costs. The interest on the mortgage is tax deductible and if this allows me to get into a cash flow property by leveraging the bank's money, use the tax deductions to my advantage and if I've bought wisely I'm anticipating some solid appreciation as well.

So for me, these are fantastic.

But maybe I'm a bit more aggressive than the majority.

And maybe you're thinking that the "public" won't be using these to create wealth, they'll be using them to buy their own houses.

Well, let's take a peak at that too.

I have a friend that has been renting in Toronto for the last 5 years after moving there from out of province.

I don't know the exact amount but let's guess he's paying $1,900 a month.

But imagine five years ago instead of choosing to rent he bought a property using an interest only mortgage with the same monthly payment.

He may not be building up any equity but he may have been making a smart financial move anyway.


Conservative appreciation on a $300,000 mortgage of 4% is $12,000 a year.

If they stay for 5 years, that's $60,000. And that belongs to him, not the landlord.

And that would not have been realized if he was "just renting" for that time.

They would still have to come up with a 5% down payment so there is some equity in the home.

Don't let headlines in the paper (that are designed to sell that paper to you) or "chit chat" from your peers freeze your independent thinking.

Now go out and take some action!

Be a renegade...happy hunting.

About The Real Estate Renegades

Tom Karadza & Nick Karadza run the Income for Life real estate investing system for their members throughout the Greater Toronto Area.

They have been called 'Real Estate Renegades' because they are implementing real estate investing strategies that were once thought to be impossible by many so-called 'industry professionals'.

They are authors of the book "Income for Life for Canadians", to be released in January 2008.

They also offer FREE real estate investing classes, FREE reports, 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:

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