RE0 Tips
The Wealth Hacker and Steevie
Tell the bank that you’d like to refinance
Get your income docs in order
Max amount you can pull out as cash is: 80% x FMV (Fair Market Value) – Existing Mortgage Amount
Bank orders an appraisal to determine the new FMV
Bank lends you at the current mortgage rate. You can also ask for blended rate. The cash you pull out is tax free.
Buy an investment property / Resale
Renovate your house
Contribute to your RRSP and get a tax deduction
Contribute to your TFSA and buy stocks
Buy crypto / NFTs
Start a business
Earn 10% interest on Nexo / Celsius / Block Fi
https://vm.tiktok.com/ZM8KShGEF/Stop trading your time for money.
Instead of working hard, learn how to work smart
Earn with your mind, not with your time.
Nobody will value you more than you value yourself.
https://vm.tiktok.com/ZM8KSHpty/Due to price increase people have enough equity in the properties which they can pull out by refinancing. If you take out $50,000 mortgage is increased only $5 per month. Because you will get amortization 30 years instead of 25. When rates are low always think about refinance.
DON’T use all the cash you pulled out to buy meaningless things!
Use it to INVEST in something and BUILD YOUR WEALTH.
https://vm.tiktok.com/ZM8KSMF3P/Banks asks about intention when you request for funds. You can change your intention as per circumstances but with valid reason. Like you shifted from any city to Toronto. But you have to get back after a while due to weather or some other reason.
You should always stay true with your intent.
https://vm.tiktok.com/ZM8K2rux6/AirBNB possible in rented property
Find a landlord willing to let you AirBNB. A lot of landlords are OK with this offer to pay extra rent upfront.
Buy cheap modern furniture from Marketplace.
Offer a discounted rate. $150 / night x 80% capacity = $3600/month
Rent + Utilities = $2000/month
Cash flow = $1600/month
Review 3 Ls: leases, laws and local regulations
https://vm.tiktok.com/ZM8K289Qs/Hidden Benefits of Paying Taxes
More income = More taxes
People focus on negative side of taxes
Don't get trapped in low-wealth mentality. Focus on your borrowing capacity
Use leverage safely = Financial freedom
Don't let taxes be a decision maker for your investments
Increased income = Increased borrowing capacity
Government just wants their cut
Government is partner with the banks to give you $5 credit for $1 you declare your income.
https://vm.tiktok.com/ZM8KreYtc/Earn $275 / month for free with smart approach
https://vm.tiktok.com/ZM8Kr3kAE/Claiming Capital Cost Allowance (CCA)
Inflation Tax Hack
Depreciate your rental property
Little to no tax to your rental income
Find out the city assessment value of the house itself
A portion of building falls under this because land is excluded
Half year rule (1st year); following years calculated on a declining basis
Most of the properties come under Class 1 (4%); (4%) write off every year
Finally tax would be paid on all write offs
This is valuable when inflation is high
Dollar has low value as compared to few years ago
Take advantage of way Less taxes
Preserve the value of your money.
https://vm.tiktok.com/ZM8Kr3Rpy/#1 Rule for Financial Freedom in Your 20s
a) Focus on borrowing as much as possible
b) Build credit with credit card and try to get line of credit (LOC)
c) Use your income to pay interest
d) Invest LOC in buying First Property (5% down payment), business
Even you lose money, you have time for yourself to restore
No risk, no reward
In 2019 a youth purchased a property in $190,000 / rented $1750/month now $2100/month
In 2021 $485,000
Take risk and do something bold
https://vm.tiktok.com/ZM8KkA2yB/5% vs 20% down:
5% is low upfront cost. First Time Buyers. Eligible to participate in the home buyers plan. You can pull money from your RRSP tax free. Condition is that money is there for more than 90 days and is used to purchase home. Hard to get mortgage.
Prices of properties are high. High sustainable income required for mortgage approval.
Less than 20% need to buy mortgage default insurance. This is equal to 4$ of the purchase price. Available for properties less than $1M; CMHC (Canada Mortgage And Housing Corporation), SCHL (La Société canadienne d'hypothèques et de logement), Genworth, Canada Guaranty.
With 20% down payment easy approval from A lenders and B lenders. Lower monthly payments.
If investment property 80% of market rent is considered income.
High upfront cost.
https://vm.tiktok.com/ZM8KBqqWJ/High cash flow rental properties in Windsor. Prices got triple in last 3 years.
In 2019 a youth purchased a property in $190,000 / rented $1750/month now $2100/month
In 2021 $485,000
In 2017 $1200 rental apartments are $2400 a month now.
3BR 1WR house for
$500,000 x 20% Mortgage $1600 Insurance $100 Property Tax $200 Property Management $100 Rent $2400 Free Cash Flow $400
With 5% down, you'll roughly breakeven
Investors have a very good flow in this city now
https://vm.tiktok.com/ZM8KBoc7B/Real Estate Wealth Hack; Huge Tax Refund for FTHBs. First Time Buyers 5%. Open an RRSP. Deposit your 5% down payment. Withdraw it right away.
Tax deduction on your deposit with no penalties for withdrawing to buy first home. You have 15 years to payback and pay no tax on it. You can do it every 4 years.
Marginal Tax Rate x Deposit = Estimated Refund
Great saving on First Home purchase
https://vm.tiktok.com/ZM8KS5nH5/https://www.tiktok.com/@tatlondono
https://www.tiktok.com/@dunbarrealestate?lang=en
Investment Property Calculation (Rent) USA
https://vm.tiktok.com/ZM8KXHP71/
First Time Home Buyer
RRSP $35,000 for 90 days to show income
https://vm.tiktok.com/ZM8KXA1F6/
COVID prices hike
https://vm.tiktok.com/ZM8KXhLKR/
https://www.google.com/search?q=toronto+real+estate+tiktok&rlz=1C1ONGR_enCA970CA971&sxsrf=AOaemvIvmO5VXjkWdXgg9Omas-aDh6Dv2A%3A1641002950843&ei=xrfPYZT0Mr2D9PwPjs6HgAE&oq=Toronto+Real+Estate+tiktok&gs_lcp=Cgdnd3Mtd2l6EAEYADIFCAAQgARKBAhBGABKBAhGGABQAFgAYIAUaABwAngAgAFmiAFmkgEDMC4xmAEAoAEBwAEB&sclient=gws-wiz
https://www.tiktok.com/@victortkchan?lang=en
https://www.tiktok.com/@steeviesoucie?lang=en
First Time Home Buyer (1)
Three things lender will look into; Income, Down Payment and Credit.
For job employment letter after probation period and not more than 30 days old.
Up to date pay stubs no later than 30 days. Last 2 years T4 and Last 2 years NoA (Notice of Assessment)
If any child benefit bank statement will show it
https://vm.tiktok.com/ZM8KoFUhN/Down Payment: proof from where it is coming from (2)
Last 3 months bank statement from where receiving that money
In case of First Time Home Buyer parents help for Down Payment
Gift letter stating that money is gifted to you. Better if 3 months money rests in your account.
https://vm.tiktok.com/ZM8Ko1HxH/Min credit score 680 (3)
If two person are going on title and one has higher score, it helps
Credit history and payment history also matters
Missed or late payment also matters
Maintain good credit score, careful, not neglectful
https://vm.tiktok.com/ZM8KohmGH/Mistake First Time Home Buyer make (1)
They try to time the market
They wait for market come down or market crash
Prices rise and they regret
Thumb rule is, if you can afford, buy now
https://vm.tiktok.com/ZM8Ko1Yew/Start home shopping before preapproval (2)
You make sure you qualify for mortgage or not
If yes how much
Otherwise you will waste your time and realtor's time
https://vm.tiktok.com/ZM8KoRACP/Market is very hot and sometimes properties get sold the same day it comes in market (3)
If buyer can't get which he liked then it becomes hard for them because they would start looking that same kind of property.
https://vm.tiktok.com/ZM8KoMqxd/Having brand new car may make difficult to get mortgage. Bank will look into First Time Home Buyer Debit service ratio. Income and Debit. If you have co-signer, it may make big difference.
Debit service ratio and credit history. Having no debit and no payment history is also negative point. If it is only car loan payment and no other credit card history, may be a good point. It all depends on situation.
Mistake First Time Home Buyer make (4)
After buying home they buy furniture and rack up their credit card. Change in debit ratio can affect your position. Before closing they may look into again. Any debit of any kind may be an issue.
Wait for closing before buying new car or putting anything on your credit.
First Time Home Buyer (Hidden Cost)
$500K then min down payment 5% = $25K plus 1.5% (roughly) closing cost which includes lawyer's fees, land transfer tax, title insurance. So you need more or less $30K
First Time Home Buyer (Co-Signing on Mortgage)
Most of the time parents co-sign for their kids. When a co-signer comes off title before the house is being sold, it is viewed similar to a sale and land transfer tax has to be paid. Lawyer can educate may be when you put as 1% owner then little money as land transfer tax required.
1) First Time Home Buyer (live with your parents as long as you can)
Live rent free or very very low rent payment
Save as much money as you can to pay down payment, closing cost and your own bills
While renting you are building equity for someone else
https://vm.tiktok.com/ZM8EqQwSm/2) First Time Home Buyer (don't get yourself into new debt nearing the time you are looking to buy - wait until after!)
New credit card, loans, car loan / lease; anything that can affect your debt service ratio
These things lenders look into; monthly debt load vs monthly total income
Wait until after you've closed on your house - you can still be affected by change up until closing
Here note difference between buying and closing
https://vm.tiktok.com/ZM8EqXuqJ/3) First Time Home Buyer (Build your credit)
You need credit history
If you are not using credit card very often, car loan payment would be helpful
Get a credit card with a limit of $2000, avoid spending $1000 on it, pay it off in a timely manner
https://vm.tiktok.com/ZM8EbR8rx/4) First Time Home Buyer: Don't get too caught up on minor issues; color of the walls, kitchen and bathroom; Cosmetics can easily be changed
Location, Square footage and ceiling height, layout, potential
https://vm.tiktok.com/ZM8Eg6Gk1/Cash Back Mortgage: your debt load is hurting the amount you qualify for - use the cash back towards debt to relieve some or all of that debt load to help qualify or more money.
You don't have enough money to cover your closing costs - take the cash back to cover the closing costs so you can still get into the market.
Interest rates are at an all time so low right now. So this type of mortgage could be a great option for you!
https://vm.tiktok.com/ZM8EgAMt5/Sell your existing house first before putting an offer on the next one. Sometimes people get stuck due to any reason. Take out the equity to buy next property is the best strategy.
https://vm.tiktok.com/ZM8E6U36e/As a new agent; Join a good brokerage where you get training. Join a good team for back up and experience. You need to spend money.
https://vm.tiktok.com/ZM8E6py6L/a) 25% ROI (Return on Investment). $500K property needs $100K from you and $400 comes from bank (mortgage). You rent it to cover your costs or you live yourself. If market 5% as usual. Property will be at $525K in one year.
https://vm.tiktok.com/ZM8E6gqRc/b) Risk does not = the amount of debt owed. Risk is a function of demand and control. Buy property in most in demand area. At Entry Level town homes are always in demand. Second thing is control. As compared to stocks, real estate is tangible (physically see, touch and feel). Rent, sell, change its use (make duplex, triplex), improve and reassess. Take the equity and buy another property.
https://vm.tiktok.com/ZM8E6WwF4/FSBO When you sell your house by yourself. One simple example and you will learn. A person wants to buy a Rolex watch. He goes to downtown. Pays money and buys the watch. Other person is looking Rolex watch from garage sales and finds exact same watch there. Price will obviously be different.
Same is with your property. People who would be looking for FSBO, looking for a deal.
https://vm.tiktok.com/ZM8EMDepe/New License: start from your sphere of influence (family, friends, neighbors, school dropping parents, barber, grocery).
Door Knocking and Cold Calling: Be extremely careful. [face to face is always better] Let someone know where you are at all times. Go with some buddy. Go in day light.
Grow your data base especially in the beginning. Social Media. It is free forum for advertisement.
https://vm.tiktok.com/ZM8EfbKuD/Focus on Listings. Listings are king. Leverage to retain existing business and to get more business. Having buyers and working with sellers gives lot more flexibility in schedule and freedom. There is no better advertising than actually selling in their neighborhood.
There is always another sale following a good sale.
https://vm.tiktok.com/ZM8EuykSk/Flyer, soon coming on sale
Help me to choose your neighbor
https://vm.tiktok.com/ZM8EumcfQ/2) Working with buyers takes a lot of time in showing. Mostly people don't see houses 9-5. It happens at evenings and weekends when they are off work.
It can be difficult to give every client attention / time they deserve when you are busy.
Listings are king.
https://vm.tiktok.com/ZM8EQs49d/Marketing 1) Invest in professional photography 2) Do a proper virtual tour of the property; it captures the layout and actual look 3) Do an agent introduction of the property.
Remember to keep the video about the property though, it's not about you.
Keep the intro short and sweet and get to showing the property.
https://vm.tiktok.com/ZM8ECJ8vR/It is situated at ... Enjoy your tour. I'm so glad you could / were able to make it. I'm dying to show this property. It's end unit, 4BedR, 3BathR. I'm making a transition.
https://vm.tiktok.com/ZM8oLM4Rr/Real Estate is not sales business. It's lead generation business. Begins from giant funnel (more conversation), slowly filter down into smaller down. At least 10 meaningful conversation a day about real estate (Sphere of Influence). Don't work as job. Go out and create business. Spend money and make money.
https://vm.tiktok.com/ZM8oLkwCF/1) Work with positive mindset, not negative. Real estate market is on fire even in pandemic. Market is hot. Everybody wants to know / talk about it. Only open house, we can't do. There are many other ways to get leads.
https://vm.tiktok.com/ZM8oLv47q/2) Cold call; you know and in your neighborhood, around listing that are just sold. One sale follow after the other. People are at home, more likely picking up their phone and having conversation with you. Snap out of negative mindset if you are there.
https://vm.tiktok.com/ZM8oLpjjn/Book; Millionaire Real Estate Agent - Gary Keller (Bible for)
Training, Culture, Capping System, Profit Sharing, More Opportunity
https://vm.tiktok.com/ZM8oNdy38/Capping System vs 90/10 split
https://vm.tiktok.com/ZM8oLveFm/Just sold; Hi dear; I'm ... , I'm local realtor with .. The reason I'm calling is that you might have noticed that I have Just sold a property last night and we have 6 offers on this property which means I have 5 buyers ready to buy in your area. If you are thinking about a move or you know someone about thinking a move.
https://vm.tiktok.com/ZM8oNUmx4/
****************
Location
First property buying; not be too picky. You are just putting foot in the market. This will not be your only property. Cosmetic things can be easily changed and will increase value.
Rather you focus on location and resale value when you upsize your house than you like the kitchen cabinets or not.
https://vm.tiktok.com/ZML1dNt93/
Commission Cut
Saving money on Commission is good. I appreciate your concern. The most important thing is more money in your pocket at the end of the deal rather than saving money on Commission.
Is that Commission reduction on the cost of cutting in services or from where this Commission reduction is compensating? This is my concern. How much they work hard on the negotiation?
https://vm.tiktok.com/ZML12mCs5/
Script for new leads
Hi dear, how are you doing today. My name is Mujahid. I am local realtor with BH. I am working in your neighborhood and curious if you thinking to move next 3 to 6 months.
https://vm.tiktok.com/ZML12XTac/
New Leads
When you think about move, would it be local or out of the area. If not serious answer then move on to next.
https://vm.tiktok.com/ZML12q6vy/
Mortgage Shopping
People consider the interest rate most of the time. Sure, this is extremely important but there are some other factors to be considered. For first time home buyer or purchase of very first investment property. It is important to think about your plan. How long you are planning to live in that house. If you are just entering the market and have a plan to live for 5 years in that house or it’s an investment, may be a flip project; just going in, renovating and selling; a bigger benefit to you rather than looking a low interest rate. When you need a mortgage for short period then emphasis should be on no high penalty rather than low interest rate.
https://vm.tiktok.com/ZML12CqUh/
[10:47 a.m., 2022-01-10] Mujahid Hussain: Comparison of Brokerages
https://vm.tiktok.com/ZML12PRMa/
[10:53 a.m., 2022-01-10] Mujahid Hussain: Career
https://vm.tiktok.com/ZML12xMte/
Pre-Construction is a good investment area. Then you should know about assignment sale. What assignment sale is that you buy a pre-Construction then assign the sale to another buyer.
Market price difference when purchased and now.
Not affording, some circumstances changed.
Make sure with the builder; some allow, some don’t. Also inquire about timeline for assignment sale.
https://vm.tiktok.com/ZML12baRU/
[10:55 a.m., 2022-01-10] Mujahid Hussain: Career
https://vm.tiktok.com/ZML12qhGH/
[10:56 a.m., 2022-01-10] Mujahid Hussain: Career
https://vm.tiktok.com/ZML12pKdn/
Career
Know your market, spend enormous time on MLS. Be expert in your area. Know in and out of script. Verbalize script strongly. Script navigate your through conversation with potential buyer / seller and make sure you ask all the right questions and you lead the conversation where you want to go. Mastering the script will help you to cover your less experience and build your confidence.
https://vm.tiktok.com/ZML125f9q/
Renting vs Owning
A monthly mortgage payment ia often cheaper than a monthly rent payment. Building your own equity and paying down your own mortgage instead of someone else's.
All that money going towards someone else's investment and you have nothing to show for it. Building wealth and doing more for yourself; equity is the best way for this.
Leveraging one house and purchasing another; building equity in one home and purchasing another property; rent it and have passive income.
https://vm.tiktok.com/ZML1M6ubR/
Houses vs Condo
Freehold House appreciate more than Condo. Data sows historically more equity and more resale value.
More space / More opportunity; can make multiple units in a home, can make more passive income through renting. In Condo, will be very challenging making more than 1 unit.
Houses appeal to more buyers (for singles, couples, with kids). It’s hot product.
Condo is still a great investment.
https://vm.tiktok.com/ZML1k6Nqq/
Balanced Market: Supply meets demand, healthy negotiations, houses will sell around asking price, Fair for both parties; no one is the 'bad boy'
Sellers Market: Supply does not meet demand, sellers are in the drivers seat, houses will sell for full ask or more; Sellers are the 'bad boy'
Buyers Market: Supply exceeds demand, lots for buyers to choose from, buyers are in the drivers seat, houses will likely sell under asking price; Buyers are the 'bad boy'
Covid-19 Market: No inventory, Bidding wars, the smell of tequila hand sanitizer, Houses sell in 5 seconds, Latex gloves everywhere
Send Help
https://vm.tiktok.com/ZML1B1aDq/
Home Renovation: Let’s talk about home renovation. It’s important to realize that there is a big difference between renovating to enjoy and renovating to sell. Renovation does not always give you dollar for dollar backend value. So be very smart when renovating if you have plan to sell. Before renovating invite realtor, will tell you what will increase resale value and what will. It will save your money and time.
https://vm.tiktok.com/ZML1knvd4/
Career: Success in Real Estate is Simple but not easy. It is simple formula; Lead Gen and Lead Follow-up
https://vm.tiktok.com/ZML1kc8yQ/
Safety Precautions: Always let someone know where you are
Meet at office or Public place first; not on the subject property
Park on the street, your car must not be blocked
Always follow behind your client
https://vm.tiktok.com/ZML1knAd8/
****************************
Investing in Real Estate: I’m here to help you. Purchase your 1st house and use it as leverage for the next! Save for your down payment, closing cost, get pre-approval; Purchase your 1st house.
Live in it for few years; build equity with rising house prices or renovate it. Get it re-assessed at a higher value because of the renovations then use that equity.
Purchase your 1st house and don’t move in. Stay with your parents. Just rent it out. Let the renters pay your mortgage, Build some equity; use the equity to purchase another investment property or sell it and use the money to purchase your dream home.
Buy a multi-unit property; live for free.
https://vm.tiktok.com/ZML1P9Pmt/
This is sellers’ market. People think that just putting the sign for sale you can sell the property. In some cases, yes. But it’s not always this kind of scenario.
https://vm.tiktok.com/ZML15WQoe/
Intro; Hi everyone, I’m MH from BH real estate team and I’m so excited for 2022. For many reasons, but one thing that I most looking for too; is all the amazing people that I’m going to meet and have a pleasure of working with this year. I wana tell you a little bit about myself and what makes me different from all the other area agents.
I have always have a passion for helping others. I believe in coming from contribution so if I can bring value to someone through my own personal experiences or if someone is seeking knowledge about something that I’m knowledgeable about it really excites me to be able to share with that person and help them.
I actually want to be teacher most of my life and I now find myself in my real estate career with the same passion as that of education.
Social media is one of the largest tools at our disposal and I choose to use that tool to educate my community about the real estate industry.
So whether you are a FTHB or someone who is looking to upsize to accommodate a growing family, an investor or anything in between I have you cover.
You don’t already follow me on social media I will love to connect with you on there and if you are looking to sell or purchase a home, I’d love to hear from you.
https://vm.tiktok.com/ZML1CTWGt/
Defining Work
Buyers who get preapproved before house shopping
Sellers who are reasonable and listen to your advice
Realtors who want work hard to get the deal done and respect you
Buyers who get into a brand new car payment before closing
Sellers who want to list $100,000 off market value
Realtors who think they know it all and don’t work in the best interest of their clients
https://vm.tiktok.com/ZML1C7GEq/
Steps for buyers; get preapproval before start shopping. Save yourself the disappointment of missing out on a home you love because you’re not preapproved.
https://vm.tiktok.com/ZML1CWQYy/
Location; Foot in the market, not be too picky. First home is not forever. Cosmetic things can easily be changed and will increase your value. Focus more on location and resale value rather than if you like the kitchen cabinets or not.
https://vm.tiktok.com/ZML1CsWn1/
Don’t Purchase a brand new car before closing; lease, loan or payment
Wait for finances complete until closing. Any new debt from the time you got approved for financing can be an issue that could hurt your closing.
https://vm.tiktok.com/ZML1CsJhN/
Business Planning, Goal Setting, Vision Board; Plan for work
Set out what you want to achieve
Remind yourself of these goals everyday
Don't knock it until you rock it. Basically, give something or someone a chance before you put it down.
https://vm.tiktok.com/ZML1C7Lfh/
Become a successful realtor.
Lead generation daily. Door Knocking on regular basis.
https://vm.tiktok.com/ZML1C3BLy/
License
https://vm.tiktok.com/ZML1Cw2c5/
BRRR Method; Buy, Renovate, Rent, Refinance, Repeat
Buy a property that needs some work. Renovate the property to increase its value. Rent it out to great tenants. (Passive income to pay your mortgage). Refinance at a higher value now that it has been renovated and rented out. Leverage one property to buy multiple properties.
https://vm.tiktok.com/ZML1XYVeN/
Safety tips
First time meeting in public place, get copy of driver’s license. Red Flag; hesitate to give you copy of license.
Always let someone know where you are, showing, open house, listing appointment, meet a client in the office (especially after business hours) with time limits.
Don’t park your car in the driveway (avoid car blocked); park on the road
Always follow behind your client; don’t turn your back to them. Open door for them; let them walk in and you follow behind them. Especially when walking upstairs, make sure you always behind them.
Take notice of all exits.
Be aware of your surroundings and potential weapons (sharp knife in the kitchen).
https://vm.tiktok.com/ZML1X6Y4L/
Be full time realtor
https://vm.tiktok.com/ZML1XS1X6/
Commission Song; When you are making $23,000 this month in closings from the work you did last year. From The top, left, right abundantly.
https://vm.tiktok.com/ZML1XURF5/
Family help; There is nothing wrong with getting help from family. But for all those out there doing it all on their own who feel discouraged about getting into the market ….. Let’s see …
According to CIBC average gift from parents to FTHB in Toronto > $130,000; in Vancouver > $180,000
https://vm.tiktok.com/ZML1Xk7Wx/
Anxiety on door knocking when people are rude. Be ready comfortable for uncomfortable feelings. Making it more bearable, keep in mind, if someone is nasty, you are always not responsible for the situation. Already may be something going wrong with him, you are not aware of that ruin his day. Because no sane (well balanced) person is that mean to a total stranger over that. It’s numbers game.
Daily door knocking is hard with no results but once you start getting commission cheques, spread and figure out how much you got per door knocking.
https://vm.tiktok.com/ZML1X5QCX/
FTHB Don’t purchase a brand new car / get themselves into a car payment or lease right before right before looking a property. In one year or few years before buying a property affect badly your mortgage approval. If you have good income, why not, go for both but wait after you have closed on your new house. NOT on preapproval or acceptance of offer.
https://vm.tiktok.com/ZML1XmJP2/
Team up
https://vm.tiktok.com/ZML1XURKW/
Comments
Post a Comment