Making your RRSP Port folio working for you in Real Estate .

by Martial and Danielle
(Rockland, Ontario)

My wife and I are in our mid 50's.
She is 3 years from retiring from a teaching career that she loved ( and still does) all her life!
I have been in the private world of Civil Enginnering.
We still have under our roof our 18, 20 and 23 year old siblings and a grandson...full house!

We finally took a giant step...a small condo as an investment property and also for our daughter and her son...under our HELOC arrangements with our principal residence.

I have managed over the last 20 years of contributions ( good years/bad years) to accumulate a modest sum in RRSP. Over the last 2 years, with our newly found Financial advisor, I have more systematically contributed $1200 monthly. Via my work, $400 monthly with the company matching to an upset limit of 5% of gross income...but also added as income! In all, I have +- $200,000 accumulated.

Is there a way this can be used as a leverage with this or future Real Estate investments???
We are tempted to reduce/stop RRSP contributions and re-direct towards Real Estate investments!

By the way...
I have introduced two couples of friends, with some experiences in investments and mortgage brokerage, as well as our Financial advisor, to your Web site and to your book.
We are looking forward to your 90minutes Seminar in Ottawa this Fall.

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Feb 26, 2011
 Why?
by: Newbie

I've just listened to an interview, offered to members of the Rock Star Inner Circle, where a broker describes investing in second mortgages. Whether RRSP money is used or not, I find myself confused trying to understand WHY would someone come for me (or other lender, for that matter) for a second mortgage paying 12%-15% interest PLUS lenders fees, when most lenders now offer a very low HELOC accounts or some other sort of lending against remaining equity. These currently have rates attached to them of about 3.5%. So while the theory sounds great, I'm still having hard time accepting that it is possible to make the kind of money described in the interview. Am I missing something?
Nov 17, 2010
 RE: RRSP cash ... can you invest in real estate with it?
by: Tom Karadza

Hi Guys,

I just answered this similar question right before reading yours...so I'm going to paste the same answer below to save myself some time! I think it applies:

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Some banks (e.g. TD) will allow you to invest your RRSP money into "second mortgages" on real estate.

For example, if you find a solid person with good equity in their property looking to extract cash from their property but can't do it b/c the banks don't like them at the moment (maybe a dentist looking to expand and buy more equipment).

You can lend them money on that property as a "second mortgage" from your RRSP and earn interest.

We know that many lawyers and brokers lend their own money out this way.

There are fees you have to be aware of and you obviously want a good property, a good person to lend to etc.

Find a good mortgage broker who does this ... they exist.

Tom.

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