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: www.TheRealEstateRenegades.com
It is published every Thursday, if you have been forwarded
this email and would like your own copy click here to
Thursday February 7th, 2008
In this Issue:
- Renegade Commentary: Snow Covered Driveways Are Clues...
- Featured Article: Trends Are More Important Than "The Numbers"
- Investing Strategy Tip of the Week: "Never, Let Me Repeat, Never, Lose Your Momentum. Ever."
The Next FREE Real Estate Training Workshop:
Our next real estate training class is on Saturday February 23, 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:
Snow Covered Driveways Are Clues...
If you live in this neck of the woods (Greater Toronto Area) you've shoveled some snow over the last 48hrs.
Or rammed your car through some.
And if you've got real estate on the mind, even a snow storm can offer some good investing insights.
Here's what I mean...
This morning I'm out shoveling (snow blower was parked safely in the garage - I can use
the exercise!) and as soon as finished up my own driveway I put my son on my shoulders
and walked over to my mother-in-law's to give her driveway a cleaning (yes, she really lives that close to us!).
And then I noticed it...
Around her house 3 other driveways were not shoveled.
I learned that the couple across the street can't shovel because she had an operation on her knee and the man of the house threw out his back.
The next door neighbors haven't shoveled because their snow blower isn't working and they
are an older couple that depends on it.
And the third house has an older gentleman living in it by himself and he recently had some
sort of operation as well that prevents him from lifting anything for a while.
Wow, what a neighborhood!
There I was, the only able body out of four houses. And this is a new community, the houses aren't
even 5 years old yet. So these people just moved in.
So why am I telling you all this?
Well this week's Feature Article is about trends. And this aging population of ours is a trend.
A major one.
We have the leading edge of the baby boomers getting older. These are people who are going
to pay for all kinds of services to help them over the next few years.
And they'll dictate housing trends over the next 25 years as well.
We'll see houses with "in-law" suites being built into them. We'll see a preference for single
floor houses (bungalows) where possible and we'll see a demand for stair case lifts on houses that have two floors.
And their tastes are changing. Have you noticed that "retirement homes" aren't called
retirement homes any longer....they're now "assisted living communities".
They don't want to consider themselves "retired" because they are still active.
These boomers will change the housing landscape and many of them have the money to demand exactly what they want.
This is a major trend that you should be aware of.
So always have your eyes open, even a huge dumping of snow can give you clues into housing trends!
Check out this week's feature article for another look at how to handle trends...
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:
- How you can turn 3 Single-Family homes into 24 homes without investing any additional money by having homes buy homes. EASY WEALTH!
- How you can create Income for Life in just ONE hour of spare time
a day! This means NO FIXING UP DISTRESSED HOMES!
To request your own complimentary copy of our investing in "Nice Homes
in Nice Areas" report go to www.LeaveWorkOneDay.com and fill out the form
at the bottom of the page.
Trends Are More Important Than "The Numbers"
Sometimes it's more important to look at the Canadian real estate trends instead of just focusing on "the numbers" of an investment property.
Let me explain in a kinda round about way...
There's a pretty commonly held belief system amongst most of the people around me who have achieved their goals.
It's even occasionally discussed "out in the open" - but it's rarely followed by the masses.
And for most people who don't want anything more than being "comfortable" with their lives it's often ignored.
Ready for it? Alright then, here we go...
Instead of me wasting thousands of keystrokes trying to explain it let me use a quote from Earl Nightingale that sums up what I'm referring to perfectly:
"If no given model for success exists in your chosen field of endeavor, then just do the opposite to the masses, and you'll win every time"
Read that one more time, and read it slowly, let it sink in.
From being exposed to the construction industry, software, sales, engineering, farming, raising kids (still in process) and real estate investing I'm willing to go out on a limb and conclude that from my experiences this statement is universally applicable to everything.
If you just look around and watch what the majority of your friends and neighbors are doing...and then do the opposite...you'll likely end up closer to your goals.
Even professionals that should know better get infected with a "herd mentality".
I'll give ya an example:
Years ago I was reading every book, every article, every email, every thing on real estate investing and Canadian real estate trends that I could get my paws on.
My journey ultimately lead me to a mortgage broker that handled an amazing amount of investment property financing.
As I was picking her brain in her office she said something to me that I took as law.
She was the expert right?
"Tom, I don't need to see the property, just show me the numbers. If the cap rate is right then you should make a deal. That's how all real investors work".
For a few years afterwards I kinda lived by that philosophy.
If the income minus the expenses looked good, then it was a good deal, end of story. I basically ignored all the larger Canadian real estate trends that surrounded the property.
I even repeated that to others. "Just show me the numbers, if the numbers look good lets make an offer".
I was analyzing small apartment buildings and looking at the cap rates. Nothing looked too good in the Greater Toronto Area so I began looking out of the big city.
I even had the mortgage broker start emailing me properties that were for sale with "good cap rates".
Well the properties with decent cap rates were hours out of the city and they were in nasty condition. Real nasty.
And it finally hit me, these things have good returns because they're cheap. And they're cheap because they're dumps.
And these dumps were in the middle of no where!
So although the numbers looked good, these properties had vacancies that had to be dealt with, the location was not in a desired market and for my name to be on the property I was going to have to invest in badly needed improvements.
For the full article click here to continue reading...
Successful Canadian Investors Share Their Secrets
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 www.MyDaddysTeleseminar.com and
you'll get instant access to a recording of the call right now!
Investing Strategy Tip of the Week:
"Never, Let Me Repeat, Never, Lose Your Momentum. Ever."
Here's a huge tip for you.
The easiest way to get moving towards your goals in to build momentum.
For example, once you have a property and begin setting appointments to show the place its easy
to just keep going.
But once you stop it's like climbing a mountain to get started again.
A few years ago I was doing a lease on a single family home and selling an option on the home
at the same time. so I was taking calls and setting up appointments for people to meet us at the property.
Then on the second visit someone confirmed that they would lease the house and we set an appointment
to sign the leases.
I stopped advertising the house. I stopped calling people back. I stopped everything.
Well, guess what...they disappeared on me.
She was a nurse at the local hospital so I image they didn't actually leave town, they were just
avoiding me. I didn't take it personally, but having to start the advertising again, having to start calling people back again and having to set appointments again was a real pain.
I had lost momentum. It's easy to give up on things when you don't have momentum behind you.
I didn't give up, but the thought did cross my mind. Dangerous.
Never lose momentum. Keep advertising, keep taking calls, keep setting appointments and showing
your property until you have money in your hands.
Momentum is important in business, in life and in real estate investing!
Always keep it going.
Donald Trump even wrote once that his biggest fear is losing momentum.
Now I understand why.
Oh yeah, and I did get someone else for the house. This time I took money from them right up front and kept advertising until they signed on the dotted line.
Until next time...be a Renegade!
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", it'll be available
on their website this month! (Note from Tom: We've been super busy and haven't
give the web guys the info they need to get it on there...we're the hold up!)
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: www.CanadianRealEstateTraining.com
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