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 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 April 3rd, 2008

In this Issue:

- Renegade Commentary: Nashville & Canadian Mortgages

- Featured Article: Finally, A Quick Guide To Investment Property Mortgages

The next FREE Real Estate Training Workshop

Our next real estate training class is on Saturday April 26th, 2008 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'll also learn about actual real life success stories of investors doing this right here in your own backyard. To get all the location details and hold your spot (because we regularly fill the class!) visit:

Nashville & Canadian Mortgages

We're coming at you from Nashville, Tennessee this week. Nick and I are staying at what has to be the closest thing to Disney World outside of Orlando. Check out some pictures of this place by clicking here. We're out here for one of the very few business/marketing conferences we are willing to travel to.

Flying in here yesterday from Toronto you can't help start looking for signs of massive foreclosure destruction on the ground. And chatting to locals down here you begin to realize how "conservative" Canadian banks and mortgage products really are.

We don't have any of the "interest only teaser rate mortgage payments for 2 years before we bump your rate and mess you up" mortgages. And these mortgages were given to applicants that really could barely afford them.

In Canada mortgage brokers must provide documented evidence of your income. In the U.S. if you could fog a mirror that was good enough to get hundreds of thousands of dollars in lending.

In Canada the number of lenders providing subprime mortgages was basically limited to a few smaller banks. In the U.S. some of the very largest lenders in the country were dishing these poorly qualified mortgages out like happy meals on a P.D. day.

Canadian banks are offering more and more mortgage programs and there continues to be tons of confusion around how many properties can a single investor acquire and what size of down payments will be necessary.

Basically in Canada you need enough documented income to qualify for he mortgages you acquire unless you are picking up commercial properties. Commercial properties are often funded based on the income the property itself produces.

I wrote a summary of the Mortgage Programs we Canadians can use a while ago and am including it this week because it is one of the most important areas to get comfortable with. As an investor part of your long term strategy should be planning how many properties you can acquire and when.

Try and find a mortgage broker that knows more than just how to read the mortgage programs and has actually worked with investors before. Or better yet, are an investor themselves. Don't listen to someone at the bank just ticking off a mortgage checklist. You may end up putting a lot more down than you really need to.

Check out the full article below...

Until next a Renegade!

Tom & Nick Karadza
"The Real Estate Renegades"

Real Estate Investing Step-by-Step:

To learn more about our investing approach and the system we use with our members you can request a copy of our FREE Report to be mailed to you. In it you will learn:

  1. How you can turn 3 Single-Family homes into 24 homes without investing any additional money by having homes buy homes. EASY WEALTH!
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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:

Finally, A Quick Guide To Investment Property Mortgages

Have you ever tried to get details on residential investment property mortgages?

Let me tell you, it's a real adventure.

Your local Canadian bank branch usually doesn't have a clue and ends up scaring you off from doing any residential real estate investing all together.

There are some excellent people in bank branches, you just need to find them.

Basically, bank branches aren't set up to deal with the questions investors have and they work on residential investment property mortgages so infrequently they usually don't know the details.

An experienced mortgage broker will usually serve you better in this area.

Canadian Banks & Mortgage Brokers

Some banks don't deal with mortgage brokers. BMO isn't using them right now and RBC has their own team of mobile mortgage representatives.

I have experience with the Royal Bank ones and they have proven to be very good.

One thing to note that when you are dealing with a bank directly you are limited to the mortgage products that they offer and sometimes you won't even know other, better suited, options are available to you.

For example, there is a 5% down investment property mortgage program available to Canadians right now. If your bank is not offering the program they may not even tell you that this exists elsewhere.

So if you are using BMO or RBC directly, or for that matter, if you are using any bank directly for your mortgage, it's smart to check in with an experienced mortgage broker as well.

That way you've covered almost all options available to you.

I say "almost" because there are private institutions that will lend you money (Xceed Financial) and "hard money" lenders. We'll discuss this in more detail in a future article.

"So What Should I Know About
Investment Property Mortgages?"

Know this...they are constantly changing and there are new mortgages for investment properties coming available almost monthly!

So again, an experienced mortgage broker is likely your best answer.

Invesment Property Mortgages
Some Background for Context

When buying an investment property you are likely looking to put as little down as possible to gain maximum leverage.

ASIDE: Now, be aware that when you do this if your property value falls you could have a mortgage amount that is more than the value of your property. You really want to work with a mentor or coach who can offer some experience and guidance.

When you put less than 20% down on a residential property in Canada you are using what is referred to as a "high ratio" mortgage.

ASIDE: A property is "usually" classified as 'residential' if it has up to four living units.

So single family homes up to four plexes. Anything greater is usually classified as a commercial property and the mortgage qualifications are very different. More on this in another article.

Whenever you put less than a 20% down payment the banks use "mortgage insurers" to insure the mortgage because of the percieved higher risk that you may default on the mortgage payments.

The largest mortgage insurer in Canada is CMHC, The Canadian Mortgage and Housing Corporation. Genworth Financial Canada is another mortgage insurer and is the largest private sector supplier of mortgage insurance.

Now, here's where things get interesting.

CMHC has dominated the Canadian market for mortgage insurance since I was sucking on a baby bottle.

Well, over the last few years Genworth, in what I believe must be an attempt to get more market share, has aggresively been offering fantastic new mortgage insurance programs.

One of the best was introduced in 2007. It was a 10% down payment mortgage program for investment property mortgages. Before this you had to put 15% and some banks would tell you that you needed to put 25% or even 35% down, pretty nutty.

Well the lack of mortgage insurance competition here in Canada has finally attracted some U.S. insurers.

And now AIG has entered the market and PMI and one other U.S. based insurer have plans to enter into Canada as well.

All the money that CMHC has been making has finally attracted some other players.

And this leads us to our next point...

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

Successful Investors "Spill the Beans"

My son came up with the idea of having some of our real estate investing clients "spill the beans" on a teleseminar call. He thought it would be a great idea if you could hear from others how they are creating wealth for themselves. Well, we couldn't agree with him more ;)

We did it and even helped him set up a website to share it with you.

If you want to eavesdrop on how people are making money in real estate right in your own backyard visit and you'll get instant access to a recording of the call right now!

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 'industry professionals'.

They are authors of the book "Income for Life for Canadians" and will be made available on the website shortly!

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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