2. Our
Philosophies
Make
financial
decisions,
NOT
emo3onal
decisions
Time
is
EVERYTHING
How
you
act
in
here
is
how
you
will
act
out
there
Leverage
is
the
key
to
business
Prac3ce,
Prac3ce,
Prac3ce
4. Build
Your
Business
Like
a
Machine
How
do
you
build
your
business
like
a
machine?
1
Build
slowly
and
properly
2
Document
Everything
3
Systemize
Everything
4
5
Stay
Very
Organized
Every
task
must
be
do-‐able
by
someone
else
5. Build
Your
Business
Like
a
Machine
What
are
the
first
steps
to
building
a
machine?
A
BLUEPRINT!
6. It
All
Starts
With
A
Plan!
“He
who
fails
to
plan,
plans
to
fail”
-‐Winston
Churchill
7. The
4
Way
to
Win
With
Real
Estate
[ANCHOR
SLIDE]
8. The
4
Way
to
Win
With
Real
Estate
1. Passive
AppreciaTon
[ANCHOR
SLIDE]
2. AcTve
AppreciaTon
3. Principle
Recapture
4. Cash
Flow
10.
Financial
Projec3ons:
Scenario
1
Buy
1
Property
and
hold
it
for
15
years
[ANCHOR
SLIDE]
Deal
Details
Property
Value:
$350,000
Amor3za3on:
30
Years
Interest
Rate:
4.0%
Apprecia3on
Rate:
3.0%
21. Financial
Projec3ons:
Scenario
2
Buy
1
Property
each
year
for
5
years
year
EMV
3%
1
$350,000.00
2
$710,500.00
Accumulated
Apprecia3on
Accumulated
Accumulated
Value
added
Principle
Total
Increase
Cash
Flow
Renova3ons
Recapture
[ANCHOR
SLIDE]
$10,500.00
$4,599.57
$6,000.00
$2,000.00
$23,099.57
$31,815.00
$15,550.16
$18,000.00
$6,000.00
$71,365.16
3
$1,081,815.00
$64,269.45
$33,110.52
$36,000.00
$12,000.00
$145,379.97
4
$1,464,269.45
$108,197.53
$57,549.94
$60,000.00
$20,000.00
$245,747.47
5
$1,858,197.53
$163,943.46
$89,148.69
$90,000.00
$30,000.00
$373,092.15
22. Financial
Projec3ons
You
can
do
this
for
any
combinaTon
of
numbers
[ANCHOR
SLIDE]
Deal
Details:
Property
Value:
??
AmorTzaTons:
??
Interest
Rate:
??
AppreciaTon
Rate:
??
AcquisiTon
rate
??
23. 2
Rules
of
Business
[ANCHOR
SLIDE]
1. You
need
money
to
Start,
Operate
and
Grow
this
business
2. You
must
re-‐invest
into
your
business
30. Allocate
Business
Funding
How
will
you
allocate
funding
for
your
Real
Estate
Business?
TRANSACTIONAL
OPERATIONAL
GROWTH
31. 4
steps
to
finding
an
Income
Property
1. Sourcing
ProperTes
2. Evaluate
an
InvesTng
Area
3. Evaluate
an
Income
Property
From
Home
4. Evaluate
an
Income
Property
On
Site
32. Sources
of
ProperTes
There
are
two
main
sources
of
properTes
to
buy:
[ANCHOR
SLIDE]
From
Private
Sellers
From
Realtors
33. Sources
of
ProperTes
1. From
private
sellers
•
•
They
find
[ANCHOR
SLIDE]
you
• Market
to
a
distressed
seller
• Market
to
a
distressed
property
You
find
them
• FSBO
online
lisTngs
• Drive
around
• Google
alerts:
“need
to
sell
home,
must
sell
home,
home
for
sale
as
is”
• Investor
Network:
Referrals,
Word
of
Mouth
34. Sources
of
ProperTes
2.
From
professionals
[ANCHOR
SLIDE]
Your
Realtor
will
find
a
property
that
meets
your
criteria
36. The
Property
Search
1.
2.
3.
4.
5.
6.
7.
8.
8
ProperTes
to
look
for
[ANCHOR
SLIDE]
Student
rentals
MulT
unit
ExecuTve
rentals
MoTvated
sellers
Hidden
potenTal
Needs
extensive
rehab
High
DOM’s
Mixed
use
37. The
Property
Search
1.
2.
3.
4.
5.
6.
7.
8.
8
ProperTes
to
stay
away
from
[ANCHOR
SLIDE]
War
Zone
ProperTes
No
en-‐suite
potenTal
2
bedrooms
or
less
Small
bedrooms
Small
kitchen
with
no
potenTal
Major
structural
damage
Environmental
issues
High
Turnover:
bought
and
sold
over
10
Tmes
in
15
years
38. The
Property
Search
How
About
When
To
Look?
[ANCHOR
SLIDE]
of
Week
Time
Time
of
Month
Time
of
Year
43. Evaluate
an
InvesTng
Area
Divide
the
area
Sdata
into
three
categories:
[ANCHOR
LIDE]
1. Past
2. Present
3. Future
44. Evaluate
an
InvesTng
Area
Past
[ANCHOR
SLIDE]
What
has
been
the
trends
for
the
last
10
years?
Can
we
idenTfy
palers?
45. Evaluate
an
InvesTng
Area
Past
[ANCHOR
SLIDE]
Research
the
Data
1. Average
home
prices
for
the
last
10
years
2. Average
rents
for
the
last
10
years
50. Evaluate
an
InvesTng
Area
Present
[ANCHOR
SLIDE]
Research
the
local
Data
How
does
the
market
compare
to
larger
averages?
• NaTonal
Average
• Provincial
Average
55. Evaluate
an
InvesTng
Area
Present:
Compare
[ANCHOR
SLIDE]
other
markets
the
Data
with
56. Evaluate
an
InvesTng
Area
Present:
Compare
[ANCHOR
SLIDE]
other
markets
the
Data
with
57. Evaluate
an
InvesTng
Area
Future
[ANCHOR
SLIDE]
Don’t
predict
the
future…
Use
past
and
present
data
to
Iden:fy
Pa=erns
58. Evaluate
an
InvesTng
Area
Past:
Compare
the
current
local
market
d[ANCHOR
ith
other
Tme
periods
ata
w SLIDE]
Present:
Compare
the
local
market
data
with
other
geographic
markets
Future:
Use
past
and
present
data
to
idenTfy
palerns
that
suggest
future
market
behavior.
59. Evaluate
an
InvesTng
Area
Where
to
Start
SLooking?
[ANCHOR
LIDE]
1. Your
Budget
2. Close
to
Home
3. Network
RecommendaTons
60. The
80/20
Rule
Approximately
20%
oSf
your
invesTng
decision
should
be
[ANCHOR
LIDE]
made
based
on
the
health
of
the
area.
The
other
80%....?
CASH
FLOW!
61. The
80/20
Rule
[ANCHOR
SLIDE]
It’s
more
important
to
get
a
good
property
than
a
good
area
You
have
no
control
over
the
area,
but
full
control
over
the
property
62. IdenTfy
an
Income
Property
IdenTfy
the
EsTmated
Market
Value
(EMV)
[ANCHOR
SLIDE]
Three
methods:
1. Replacement
Value:
Insurance
Companies
2. Comparable
Proper3es:
Banks
for
residenTal
property
3. Income
Mul3plier:
Banks
for
commercial
Property
63. IdenTfy
an
Income
Property
IdenTfy
the
EsTmated
Market
Value
(EMV)
[ANCHOR
SLIDE]
Three
methods:
1. Replacement
Value:
Insurance
Companies
2. Comparable
Proper3es:
Banks
for
residenTal
property
3. Income
Mul3plier:
Banks
for
commercial
Property
INVESTORS!
64. IdenTfy
an
Income
Property
Income
MulTplier
[ANCHOR
SLIDE]
• Easy
to
standardize
and
make
repeatable
• REMOVES
EMOTION
FROM
THE
DECISION
65. IdenTfy
an
Income
Property
The
three
golden
quesTons:
[ANCHOR
SLIDE]
1. Does
it
CASH
FLOW?
2. How
much
does
it
CASH
FLOW?
3. Is
the
CASH
FLOW
enough
for
me?
66. IdenTfy
an
Income
Property
Does
it
CASH
FLOW?
[ANCHOR
SLIDE]
INCOME
–
EXPENSES
=
CASH
FLOW
67. IdenTfy
an
Income
Property
Does
it
CASH
FLOW?
[ANCHOR
SLIDE]
FORMULA
1:
NOI
=
GOI
–
GOE
FORMULA
2:
CASH
FLOW
=
NOI
–
Mortgage
Payment
68. IdenTfy
an
Income
Property
Does
it
CASH
FLOW?
Example
[ANCHOR
SLIDE]
Property
123
Main
St
Asking
Price=
$200,000
Down
payment
20%=
$40,000
Mortgage
Balance=
$160,000
@
5%
interest
rate
69. IdenTfy
an
Income
Property
Calculate
GOI
and
GOE
[ANCHOR
SLIDE]
GOI=
Total
of
all
incomes
minus
Vacancy
(5%)
GOE=
Total
of
all
operaTng
expenses
70. IdenTfy
an
Income
Property
GOI
[ANCHOR
SLIDE]
• Rent
is
the
main
scheduled
income,
and
ouen
the
only
income.
• Two
ways
to
calculate
the
rental
income
1.
Current
rental
income
2.
Establish
the
AMR
(Average
Market
Rent)
71. IdenTfy
an
Income
Property
AMR
(Average
Market
Rent)
[ANCHOR
SLIDE]
• What
are
similar
units
in
the
area
renTng
for?
72. IdenTfy
an
Income
Property
Does
it
CASH
FLOW?
Example
[ANCHOR
SLIDE]
Property
123
Main
St
Asking
Price=
$200,000
Down
payment
20%=
$40,000
Mortgage
Balance=
$160,000
@
5%
interest
rate
AMR=
$1800/month,
$21,600
year
73. IdenTfy
an
Income
Property
Calculate
GOI
[ANCHOR
SLIDE]
GOI=
Total
of
all
incomes
minus
Vacancy
(5%)
=
$21,600
minus
$1080
(5%)
=
$20,520
74. IdenTfy
an
Income
Property
Calculate
GOE
[ANCHOR
SLIDE]
GOE=
Total
of
all
operaTng
expenses
• Property
Taxes:
Found
on
lisTng
or
by
calling
the
City
• Insurance:
Get
an
esTmate
• Condo
Fee’s:
On
lisTng
• U3li3es:
ask
seller
for
last
years
expense
• Lawn
Maintenance:
Get
an
esTmate
• Cleaning:
get
a
quote
• Repair
and
Maintenance:
5%
of
GOI
• Other:
Build
team,
get
an
esTmate
75. IdenTfy
an
Income
Property
Calculate
GOE
[ANCHOR
SLIDE]
GOE=
Total
of
all
operaTng
expenses
• Property
Taxes=
$2200
• Insurance=
$1000
• Condo
Fee’s=
$0
• U3li3es=
$0
• Lawn
Maintenance=
$300
• Cleaning=
$300
• Repair
and
Maintenance=
$1026
TOTAL
Opera3ng
Expense=
$4826
76. IdenTfy
an
Income
Property
Does
it
CASH
FLOW?
[ANCHOR
SLIDE]
FORMULA
1:
NOI
=
GOI
–
GOE
GOI=
$20,520
GOE=
$4,826
NOI
=
$20,520
–
$4,826
=
$15,694
77. IdenTfy
an
Income
Property
Does
it
CASH
FLOW?
[ANCHOR
SLIDE]
FORMULA
2:
CASH
FLOW
=
NOI
–
Mortgage
Payment
Cash
Flow
=
$15,694
–
$10,306.92
…($858.91
x
12
months)
CASH
FLOW
=
$5,387.08/year
78. IdenTfy
an
Income
Property
How
Much
does
it
CASH
FLOW?
[ANCHOR
SLIDE]
CASH
FLOW
=
$5,387.08/year
=
$448.92/month
79. IdenTfy
an
Income
Property
Is
the
CASH
FLOW
enough
for
me?
[ANCHOR
SLIDE]
80. IdenTfy
an
Income
Property
[ANCHOR
SLIDE]
Time
to
introduce
Cash
On
Cash
Return
Measures
your
return
against
the
Opportunity
Cost
of
your
cash
COCR
=
CF
/
CI
81. IdenTfy
an
Income
Property
Is
the
CASH
FLOW
enough
for
me?
[ANCHOR
SLIDE]
CASH
FLOW
=
$5,387.08/year
Cash
Invested=
$40,000
COCR=
CF
=
$5,387.08
CI
$40,000
COCR=
13.47%
82. IdenTfy
an
Income
Property
Is
the
CASH
FLOW
enough
for
me?
[ANCHOR
SLIDE]
83. IdenTfy
an
Income
Property
Is
the
CASH
FLOW
enough
for
me?
[ANCHOR
SLIDE]
COCR=
13.47%
What
will
other
investments
pay
you
for
your
cash?
Bank=
0.000001%
GIC=
2.2%
Mutual
funds=
5%
Stocks=
7%
Private
InvesTng:
12%
Income
Property
COCR=
13.47%
84. IdenTfy
an
Income
Property
What
is
your
TOTAL
ROI
on
$40,000
invested?
[ANCHOR
SLIDE]
Annual
Cash
Flow=
$5,387.08
or
13.47%
Annual
Principle
Recapture=
$2280
or
5.7%
Annual
Passive
Apprecia3on
(2%)=
$4000
or
10%
Annual
Ac3ve
Apprecia3on=
$0
or
0%
Total
Annual
Return
on
Investment=
$11,667.08
or
29.17%
85. IdenTfy
an
Income
Property
Using
NOI
to
determine
property
value
[ANCHOR
SLIDE]
Property
Value=
?
86. IdenTfy
an
Income
Property
[ANCHOR
SLIDE]
FORMULA
2:
NOI
–
Mortgage
Payment
=
CASH
FLOW
87. IdenTfy
an
Income
Property
[ANCHOR
SLIDE]
Time
to
introduce
Capitaliza:on
Rate
The
metric
used
to
compare
different
ProperTes
based
on
performance
(NOI)
Cap
Rate
=
NOI
.
Market
Value
88. IdenTfy
an
Income
Property
Using
NOI
to
determine
property
value
[ANCHOR
SLIDE]
Property
Value=
_____NOI____
Market
Cap
Rate
FORMULA
1:
NOI
=
GOI
–
GOE
Find
Cap
Rate:
Same
method
as
ARM
or
Published
Data
89. IdenTfy
an
Income
Property
Using
NOI
to
determine
property
value
[ANCHOR
SLIDE]
$24,000
Property
Value=
_____NOI____
Market
Cap
Rate
6.8%
90. IdenTfy
an
Income
Property
Using
NOI
to
determine
property
value
[ANCHOR
SLIDE]
Property
Value=
_____NOI____
Market
Cap
Rate
PV=
$24,000
=
24,000
6.8%
0.068
PV=
$352,941.17
MAX
Purchase
Price
92. IdenTfy
an
Income
Property
CF
[ANCHOR
SLIDE]
COCR
Cash
Flow
Triangle
CI
93. IdenTfy
an
Income
Property
Using
COCR
to
establish
your
budget
[ANCHOR
SLIDE]
$7,600
Max
Cash
Investment=
_____CF____
COCR
8%
94. IdenTfy
an
Income
Property
Using
COCR
to
establish
your
budget
[ANCHOR
SLIDE]
Max
Cash
Investment=
_____CF____
COCR
MCI=
$7,600=
$7,600
8%
0.08
95. IdenTfy
an
Income
Property
Using
COCR
to
establish
your
budget
[ANCHOR
SLIDE]
Max
Cash
Investment=
_____CF____
COCR
MCI=
$7,600=
$7,600
8%
0.08
MAX
Cash
MCI=
$95,000
you
are
willing
to
invest
96. IdenTfy
an
Income
Property
IdenTfy
the
EsTmated
Market
Value
(EMV)
[ANCHOR
SLIDE]
Three
methods:
1. Replacement
Value
2. Comparable
ProperTes
3. Income
Mul3plier
99. “The
real
measure
of
wealth
is
how
much
you’d
be
worth
if
you
lost
all
your
money.”
-‐Bernard
Meltzer
100. The
Rules
of
Wealth
1.
2.
3.
4.
5.
6.
7.
8.
9.
Anybody
can
be
wealthy,
you
just
have
to
apply
yourself
Wealthy
people
know
the
difference
between
Price
and
Value
Wealthy
people
understand
Scarcity
vs
Abundance
Wealthy
people
make
the
difficult
decisions,
and
they
don’t
hesitate
Wealthy
people
have
mulTple
income
streams
Wealth
is
a
behavior;
a
habit
that
can
be
learned
and
pracTced
Make
money,
repeat.
Once
you
have
figured
out
what
works
on
the
small
scale,
repeat
the
same
process
for
big
returns.
Wealthy
People
think
long
term.
Long
term
investments
and
relaTonships
Wealthy
people
take
acTon
101. The
Rules
of
Wealth
What
steps
can
you
take
TODAY
to
learn
to
be
Wealthy?
1. Observe
how
the
wealthy
think
and
act,
and
copy
them
2. Don’t
be
afraid
to
make
a
deal,
you
never
know
where
it
will
take
you
3. Set
aside
dedicated
Tme
to
work
on
your
wealth
plan
4. If
you
are
going
to
get
financial
advise,
pay
for
it!
5. CulTvate
a
skill
and
it
will
repay
you
over
and
over
again
6. Work
with
a
coach;
someone
who’s
been
there,
walked
the
road
you
want
to
walk,
and
follow
them
7. Do
not
make
emoTonal
decisions.
Always
make
a
financial
decision.
102. The
Rules
of
Wealth
What
can
I
do
TODAY
to
move
towards
wealth?
103. How
Does
a
Flip
Deal
Work?
1.
Find
the
perfect
property
2.
Increase
the
Value
3.
Sell
for
the
property
for
profit
105. “Flipping
To
Yourself”
1.
Find
the
perfect
property
2.
Increase
the
Value
3.
Sell
for
the
property
to
YOURSELF
for
profit!
106. STEP
3…
Flip
it…To
Yourself
Refinance
the
Property
1. Refinance
aJer
improvements
2. Refinance
before
improvements
107. Case
Study
2:
Building
an
Income
Suite
[ANCHOR
SLIDE]
One
of
the
best
tools
to
create
CASH
FLOW
One
of
the
best
tools
to
create
VALUE
Plan
it
before
you
buy
These
deals
are
everywhere…If
you
know
how
to
spot
them
108. Case
Study
2:
Building
an
Income
Suite
Property
Shopping
Know
this
is
your
exit
strategy
upfront
110. Important
InformaTon
Transparency
This
does
not
happen
overnight
You
must
constantly
educate
yourself
You
must
re-‐invest
some
of
your
profit
back
into
your
business
You
must
work
hard
and
work
smart
Surround
yourself
with
the
right
people
111. 4
steps
to
finding
an
Income
Property
1. Sourcing
properCes
2. Evaluate
an
InvesCng
Area
3. Evaluate
an
Income
Property
from
home
4. Evaluate
an
Income
Property
on
site
112. IdenCfy
an
Income
Property
On
Site
You
have
already
qualified
the
Cash
Flow
from
home
[ANCHOR
SLIDE]
You
TIME
is
very
valuable,
be
efficient
Know
what
you’re
going
to
look
for
before
going
to
the
property
Have
everything
set
up
for
your
walkthrough
before
you
go
to
the
property
113. IdenCfy
an
Income
Property
On
Site
What
to
do
before
you
arrive
[ANCHOR
SLIDE]
Know
the
layout
of
the
property
• How
many
rooms
• What
size
are
the
rooms
• Basement
condiCon
• Basement
size
• On
site
parking
available
114. IdenCfy
an
Income
Property
On
Site
What
to
do
before
you
arrive
[ANCHOR
SLIDE]
Know
the
condiCon
of
the
property
Look
at
as
many
photos
as
possible
• Bathroom
• Kitchen
• Basement
115. IdenCfy
an
Income
Property
On
Site
What
to
do
before
you
arrive
[ANCHOR
SLIDE]
Know
the
history
of
the
property
• Are
their
any
building
permits
for
the
property?
• Are
their
any
open
building
permits
for
the
property?
• What
does
the
zoning
by-‐law
allow?
• What
is
the
sales
history
for
the
last
20
years?
116. IdenCfy
an
Income
Property
On
Site
What
to
do
before
you
arrive
[ANCHOR
SLIDE]
Know
the
other
properCes
in
the
neighborhood
• What
are
the
condiCon
of
the
rental
properCes?
• Are
there
government
infrastructure
improvements
planned
in
the
area?
• Commercial
Property?
117.
118. IdenCfy
an
Income
Property
On
Site
What
to
do
before
you
arrive
[ANCHOR
SLIDE]
Assemble
your
team
and
have
them
ready
to
meet
you
at
the
property
• Realtor
• Contractor
• Handyman
• Business
Partner
• Assistant/Intern
119. IdenCfy
an
Income
Property
On
Site
What
to
do
when
you
arrive
[ANCHOR
SLIDE]
Drive
the
neighborhood
Arrive
at
the
property
10
minutes
early:
Set
an
example
for
the
people
you
do
business
with
Have
all
your
checklists
ready
120. IdenCfy
an
Income
Property
On
Site
The
Walkthrough
[ANCHOR
SLIDE]
Record
important
informaCon
121. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Exterior
[ANCHOR
SLIDE]
Property
• Where
are
the
lot
lines?
• Is
the
lot
large
enough
for
a
future
severance?
• Any
easements
or
encroachments?
• How
close
to
the
adjacent
house?
122. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Exterior
[ANCHOR
SLIDE]
Windows
• Basement
windows
• LocaCons
• Above
or
below
grade
• Cracks
• Lintel
• Window
Type
123. IdenCfy
an
Income
Property
On
Site
•
•
•
•
•
•
The
Walkthrough:
Exterior
[ANCHOR
SLIDE]
Brick
or
siding
FoundaCon
Separate
entrance
Roof
condiCon
Eaves
and
downspouts
On
street
parking
124. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Interior
[ANCHOR
SLIDE]
All
rooms
• Walls
• Windows:
Vinyl
or
wood?
Single
or
double
pane?
• Light
fixtures
• Switches
and
receptacles
• Flooring
125. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Interior
[ANCHOR
SLIDE]
All
rooms
• HeaCng
system
• Heat
source
in
every
room?
• Water
damage
on
ceiling?
126. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Interior
[ANCHOR
SLIDE]
Bedrooms
• Window
size:
L.V.E.
• Closets
127. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Interior
[ANCHOR
SLIDE]
Bathrooms
• Plumbing
under
the
sink
• Tub
surround
• Toilet
condiCon?
Quality
of
installaCon?
128. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Interior
[ANCHOR
SLIDE]
Kitchen
• Plumbing
under
the
sink
• Appliance
condiCon
• Flooring
129. IdenCfy
an
Income
Property
On
Site
The
Walkthrough:
Interior
[ANCHOR
SLIDE]
Basement
• Finished
or
unfinished?
• Subfloor
• Plumbing
and
electrical
system
130.
131.
132. IdenCfy
an
Income
Property
On
Site
Following
Up
[ANCHOR
SLIDE]
• Record
your
data
in
a
report
• Group
email
to
all
parCcipants
with
your
report
• Decision
Cme:
To
make
an
offer
or
let
it
go
133. IdenCfy
an
Income
Property
On
Site
LifeCme
Wealth
Academy
Decision
Making
Model
[ANCHOR
SLIDE]
KNOW
THINK
ACT
To
make
an
offer
or
let
it
go
136. MarkeCng
Plan
MarkeNng
Blueprint
1
Research
2
3
Test
and
Measure
Nurture
Prospects
and
Customers
4
5
Systemize
Manage
and
Improve
137. MarkeCng
Plan
Research
• What
is
your
market
looking
for?
• What
problem
are
you
solving
for
them?
• Market
research:
look
at
comparable
products
• Collect
and
analyze
the
data
• Create
your
own
research
data!
160. MarkeCng
Plan
MarkeNng
Blueprint
1
Research
2
3
Test
and
Measure
Nurture
Prospects
and
Customers
4
5
Systemize
Manage
and
Improve
161. MarkeCng
Plan
Systemize
• Organize
your
ads,
documents,
responses
• Have
everything
ready
to
use
at
all
Cmes
• Outsource!
Time
is
EVERYTHING!
162. MarkeCng
Plan
MarkeNng
Blueprint
1
Research
2
3
Test
and
Measure
Nurture
Prospects
and
Customers
4
5
Systemize
Manage
and
Improve
163. MarkeCng
Plan
Manage,
Review
and
Improve
• Manage
your
outsourced
markeCng
• Time
Block
once
a
week
to
review
• Be
different,
be
befer
164. MarkeCng
Plan
Manage,
Review
and
Improve
•
•
•
•
Manage
your
outsourced
markeCng
Time
Block
once
a
week
to
review
Be
different,
be
befer
Allocate
your
Cme
and
money
to
what
is
performing
the
best
165. MarkeCng
Plan
Manage,
Review
and
Improve
DECISION
TIME
Most
• Manage
your
outsourced
markeCng
Important
• Time
Block
once
a
week
to
review
Moment!
• Be
different,
be
befer
• Allocate
your
Cme
and
money
to
what
is
performing
the
best
• Don’t
make
an
emoConal
decision,
make
a
financial
decision
167. MarkeCng
Plan
Leasing
Blueprint
1
2
3
4
5
Pre-‐
Screen
Tenants
Set
Show
the
Property
Select
Tenants
Sign
the
Lease
Appointments
168. The
leasing
process
Screen
Tenants
TradiNonal
methods
• ApplicaCon
• Credit
check
• Income
and
employment
check
• Reference
Check
Non-‐TradiNonal
methods
• QuesCons
• ConversaCon
169. MarkeCng
Plan
Leasing
Blueprint
1
2
3
4
5
Pre-‐
Screen
Tenants
Set
Show
the
Property
Select
Tenants
Sign
the
Lease
Appointments
170. The
leasing
process
•
•
•
•
Set
Appointments
Prospect
tenant
calls
you
Prospect
tenant
emails
you
You
call
prospect
tenant
You
email
prospect
tenant
171. MarkeCng
Plan
Leasing
Blueprint
1
2
3
4
5
Pre-‐
Screen
Tenants
Set
Show
the
Property
Select
Tenants
Sign
the
Lease
Appointments
172. The
leasing
process
Before
you
show
the
Property
• Email
nurture
sequence
• Have
prospecCve
tenant
confirm
appointment
• Email
ConfirmaCon
OR
• Call
them
one
hour
before
• Once
confirmed,
send
an
e-‐copy
of
the
lease
173. The
leasing
process
•
•
•
•
•
•
Show
the
Property
Set
appointments
10
minutes
apart
Or
set
appointments
all
at
the
same
Cme
Get
there
30
minutes
early
Scented
candles,
cookies
Have
lease’s
ready
to
sign
Have
a
sign-‐in
sheet
for
your
records
174. MarkeCng
Plan
Leasing
Blueprint
1
2
3
4
5
Pre-‐
Screen
Tenants
Set
Show
the
Property
Select
Tenants
Sign
the
Lease
Appointments
175. The
leasing
process
Select
Tenants
•
•
•
•
ApplicaCon
Credit
check
Income
and
employment
check
Reference
Check
How
did
the
references
answer
the
quesNons?
Do
they
have
a
stable
income
and
employment?
176. MarkeCng
Plan
Leasing
Blueprint
1
2
3
4
5
Pre-‐
Screen
Tenants
Set
Show
the
Property
Select
Tenants
Sign
the
Lease
Appointments
177. The
leasing
process
•
•
•
•
Sign
the
Lease
Send
them
a
copy
of
the
lease
before
you
meet
Meet
at
coffee
shop,
house,
office
Go
through
the
lease
word
for
word
Set
expectaCons
and
responsibly
clearly
NOW
• Appliance
damage
vs
wear
and
tear
• NSF
Payment
• Guest
Policy
178.
•
•
•
•
•
•
•
•
•
•
•
The
leasing
process
Elements
of
a
Lease
Agreement
Address,
Price,
Term
Parking
Prepaid
rent
(security
deposit)
Assignment
and
Sublejng
CondiCon
of
Premises
Locks
and
Keys
Payments
of
Taxes,
UCliCes
Use
of
Premise
Liability
TerminaCon
Rules
and
RegulaCons
180. Managing
Tenants
for
Success
1. StarCng
the
relaConship
2. Stay
Organized!
3. Maintaining
the
relaConship
4. Go
over
and
above
expected
5. Repeat
customers
and
referrals
6. Know
your
rights
and
responsibiliCes
181. Managing
Tenants
for
Success
StarCng
the
relaConship
• Welcome
Gim
• Monthly/Quarterly
lefer/email/phone
call
• Welcome
info
sheet
182. Managing
Tenants
for
Success
•
•
•
•
Move-‐In
Be
there
Document
everything
Have
them
sign
off
on
property
condiCon
Fire
Safety
183. Managing
Tenants
for
Success
Management
Blueprint
1. StarCng
the
relaConship
2. Stay
Organized!
3. Maintaining
the
relaConship
4. Go
over
and
above
expected
5. Repeat
customers
and
referrals
6. Know
your
rights
and
responsibiliCes
184. Managing
Tenants
for
Success
Stay
Organized
• Set
it
up
right
the
first
Cme
• Leverage
technology!
AUTOMATE
185. Managing
Tenants
for
Success
Management
Blueprint
1. StarCng
the
relaConship
2. Stay
Organized!
3. Maintaining
the
relaNonship
4. Go
over
and
above
expected
5. Repeat
customers
and
referrals
6. Know
your
rights
and
responsibiliCes
186. Managing
Tenants
for
Success
Maintain
the
relaConship
Communicate
every
90
days
• Email
• Phone
call
• Hand
wrifen
lefer
187. Managing
Tenants
for
Success
Maintain
the
relaConship
Maintenance
• Quarterly
inspecCon
• Maintain
and
repair
items
before
they
ask
188. Managing
Tenants
for
Success
Maintain
the
relaConship
Repairs
• Repair
items
within
48
hours
• Furnace/AC/Appliance
protecCon
plan
• Have
more
than
one
handyman
on
call
• Submit
repair
requests
via
online
form
189. Managing
Tenants
for
Success
Management
Blueprint
1. StarCng
the
relaConship
2. Stay
Organized!
3. Maintaining
the
relaConship
4. Go
over
and
above
expected
5. Repeat
customers
and
referrals
6. Know
your
rights
and
responsibiliCes
190. Managing
Tenants
for
Success
Go
over
and
above
expected
• Holiday
card
and
gim
• Annual
party
for
all
your
tenants
191. Managing
Tenants
for
Success
Management
Blueprint
1. StarCng
the
relaConship
2. Stay
Organized!
3. Maintaining
the
relaConship
4. Go
over
and
above
expected
5. Repeat
customers
and
referrals
6. Know
your
rights
and
responsibiliCes
192. Managing
Tenants
for
Success
Repeat
Customers
and
Referrals
• Set
up
a
system
of
rewards
for
referrals
• Gim
cards
• Cash
• Keep
all
past
tenants
in
your
database.
Stay
in
communicaCon
with
them
when
future
properCes
become
available
193. Managing
Tenants
for
Success
Management
Blueprint
1. StarCng
the
relaConship
2. Stay
Organized!
3. Maintaining
the
relaConship
4. Go
over
and
above
expected
5. Repeat
customers
and
referrals
6. Know
your
rights
and
responsibiliNes
194. Managing
Tenants
for
Success
Know
Your
Rights
and
ResponsibiliCes
Common
Reasons
to
Evict
a
Tenant:
1. Non
payment
of
rent
2. Unit
owner
is
moving
in
3. Damage
to
unit
4. Interfered
with
safety
or
enjoyment
of
another
tenant
5. Too
many
people
living
in
the
unit
6. Tenant
engaged
in
illegal
acCon
195. Managing
Tenants
for
Success
Know
Your
Rights
and
ResponsibiliCes
Document
Everything
the
moment
you
suspect
a
problem.
• Time/Date
logs
• Pictures
and
Videos
• TesCmonials:
Neighbors,
tenants,
contractors,
etc
196. Managing
Tenants
for
Success
Governing
Body
in
Ontario
The
Landlord
and
Tenant
Board
Governing
LegislaCon
in
Ontario
The
ResidenCal
Tenancy
Act
2006
197. Managing
Tenants
for
Success
Common
Scenario
1.
2.
3.
4.
5.
6.
“My
tenant
has
not
paid
the
rent
they
owe”
File
NoCce:
N4
Wait
14
days
(7
days
for
a
daily
or
weekly
rental)
File
applicaCon
L1
$170
Receive
hearing
date
from
the
board
NoCfy
tenant
of
hearing
date
Appear
at
the
hearing
200. Building
Your
Team
STAGE
3
Contractor
AssociaCons
Private
Investor
Admin
Assistant
Property
Manager
STAGE
2
Accountant
Bookkeeper
Appraiser
Handyman
Partner
STAGE
1
Lender
Realtor
Insurance
Agent
Home
Inspector
Real
Estate
Lawyer
201. Building
Your
Team
Where
to
find
Team
Members?
4.
Local
directory
3.
Online
search
2.
Networking
groups
1.
Referral/
word
of
mouth
Always
Grow
your
Network!
203. Rules
of
Engagement
“This
is
a
people
business,
not
a
paper
business”
Part
2
QuesCons
Their
VISION
Their
PROJECTS
Their
IDEAS
Their
PASSION
Their
GOALS
204. Rules
of
Engagement
“This
is
a
people
business,
not
a
paper
business”
Closed
Ended
QuesCons:
Second
layer
quesCon
difficult
Where
are
you
from?
How
long
have
you
been
there?
What
company
do
you
work
for?
Where
in
the
city
do
you
live?
205. Rules
of
Engagement
“This
is
a
people
business,
not
a
paper
business”
Open
Ended
QuesCons:
Prompt
a
second
layer
quesCon
What
are
you
excited
about?
What
is
you
favorite
part
of
what
you
do?
What
is
the
last
good
book
you
read?
What
is
your
favorite
thing
to
do
on
a
day
off?
206. Rules
of
Engagement
“This
is
a
people
business,
not
a
paper
business”
1. Part
2
QuesCons
2. Don’t
just
call
when
you
want
something
3. Birthdays
4. Follow
up
5. Add
value
to
their
lives
first
207. Rules
of
Engagement
“This
is
a
people
business,
not
a
paper
business”
Add
Value
to
Their
Lives
Lend
a
book
Share
an
umbrella
Introduce
them
Share
an
interesNng
arNcle
Give
your
Nme
Share
your
knowledge
Open
or
hold
a
door
Listen!
208. Rules
of
Engagement
•
•
•
•
•
•
Give
even
more…
Get
even
more!
TesCmonials:
give
and
receive
Community
involvement
Educate
others
Charitable
events
Local
celebrity
IntroducCons
You
Are
A
Connector
of
People!
210. Main
Types
of
Business
Ownership
1. Sole
Proprietor
2. Partnership
211. Main
Types
of
Business
Ownership
1. Sole
Proprietor
2. Partnership
1.
Tenants
in
Common
• If
one
partner
dies
only
their
percentage
is
transferred
to
their
estate,
not
to
the
other
partner
• May
pay
land
transfer
tax
to
remove
names
2.
Joint
Tenants
• Survivorship:
When
one
partner
dies
the
full
ownership
goes
to
the
other
212. Main
Types
of
Business
Ownership
1. Sole
Proprietor
2. Partnership
3. CorporaPon
4. LLP
5. Trust
214. ConvenPonal
Financing
The
“Big
5”
1. Canadian
Imperial
Bank
of
Commerce:
CIBC
2. Toronto
Dominion
Bank:
TD
3. Bank
of
Nova
ScoPa:
Sco*abank
4. Bank
of
Montreal:
BMO
5. Royal
Bank
of
Canada:
RBC
215. ConvenPonal
Financing
In
Canada
there
are:
24
Schedule
1
Banks
22
Schedule
2
Banks
424
credit
unions
470
Lending
Ins*tu*ons
in
Canada
216. ConvenPonal
Financing
1.
2.
3.
4.
5.
Most
common
forms
of
FI
lending
Mortgage
Secured
LOC
Unsecured
LOC
Secured
Loan
Unsecured
Loan
217. ConvenPonal
Financing
How
They
Qualify
The
Buyers
1. Employment
Status
2. Down
Payment
3. Credit
History
219. ConvenPonal
Financing
Employment
Status
GDS
The
percentage
of
gross
annual
income
required
to
cover
payments
associated
with
housing.
GDS=
Annual
Mortgage
Payment
+
Property
Tax
Gross
Family
Income
220. ConvenPonal
Financing
Employment
Status
GDS=
Annual
Mortgage
Payment
+
Property
Tax
Gross
Family
Income
Example
Jack
and
Jill,
two
law
students,
have
a
monthly
mortgage
payment
of
$1,000
(annual
payment
of
$12,000),
property
taxes
of
$3,000
and
a
gross
family
income
of
$45,000.
This
would
give
a
GDS
of
33
%.
Based
on
the
benchmark
of
30%,
Jack
and
Jill
appear
to
be
carrying
an
unacceptable
amount
of
debt.
221. ConvenPonal
Financing
Employment
Status
TDS
The
percentage
of
gross
annual
income
required
to
cover
payments
associated
with
housing
and
all
other
debts
and
obligaPons
TDS=
Annual
Mortgage
Payment
+
Property
Tax
+
Debt
payments
Gross
Family
Income
222. ConvenPonal
Financing
Employment
Status
TDS=
Annual
Mortgage
Payment
+
Property
Tax
+
Debt
payments
Gross
Family
Income
Example
For
example,
Jack
and
Jill,
two
law
students,
have
a
monthly
mortgage
payment
of
$1,000
(annual
payment
of
$12,000),
property
taxes
of
$3,000,
car
payments
totaling
$1,000
and
a
gross
family
income
of
$45,000.
This
would
give
a
TDS
of
around
36%.
Based
on
the
benchmark
of
40%,
Jack
and
Jill
appear
to
be
carrying
an
acceptable
amount
of
debt.
223. ConvenPonal
Financing
Down
Payment
• Measured
in
Loan-‐To-‐Value
(LTV)
• >80%
LTV
is
considered
High-‐Ra3o
• High
ra*o
lending
is
required
by
law
to
be
insured
• Proof
of
Down
Payment
• GiMs
can
be
given
as
history
225. ConvenPonal
Financing
Personal
Credit
“It
is
the
measure
of
the
fiscal
responsibility
a
person
displays
in
dealing
with
their
creditors.”
Factors
affecPng
your
personal
credit:
5.
Types
of
Credit
FICO
Score
4.
Number
of
Inquiries
300-‐900
3.
Length
of
Credit
History
2.
Use
of
Available
Credit
1.
Payment
History
226. ConvenPonal
Financing
Credit
Agencies
1. Equifax
www.equifax.com
2. Transunion
www.transunion.com
Note:
The
actual
formulas
used
to
calculate
credit
scores
are
the
property
of
private
companies
and
are
not
available
to
the
public.
227. ConvenPonal
Financing
How
They
Qualify
The
Property
4.
Use
listed
on
lisPng
3.
History
2.
CondiPon
1. Comparable
value
230. ConvenPonal
Financing
Instant
Access
to
Principle
Recapture
Sco*abank:
STEP
Mortgage
CIBC:
Home
Power
Plan
BMO:
Readyline
RBC:
Homeline
TD:
Currently
not
available
231. ConvenPonal
Financing
Flip
to
Yourself
Sco*abank:
Purchase
Plus
Improvements
CIBC:
Purchase
Plus
Improvements
BMO:
Currently
not
available
RBC:
Currently
not
available
TD:
Currently
not
available
235. ConvenPonal
Financing
Credit
Unions
• Provincially
Regulated
• Can
provide
80%
LTV
HELOC
• Membership
structure
236. Non-‐ConvenPonal
Financing
1.
2.
3.
4.
Most
common
forms
Seller
Financing
Hard
Money
Lending
Private
Investor
Joint
Venture
Partner
237. Non-‐ConvenPonal
Financing
•
•
•
Seller
Financing
Also
called
VTB
or
seller
carryback
loan
Asset
based
loan
CreaPvity
and
NegoPaPon
a
MUST!
PROS
• you
don’t
need
to
borrow
the
full
amount
from
the
bank
• deal
is
quicker
and
cleaner
• Your
credit
and
employment
not
a
big
issue
CONS
• high
than
bank
interest
rate
(5-‐7%)
• rare
for
residenPal
238. Non-‐ConvenPonal
Financing
VariaPons
of
Seller
Financing
All-‐inclusive
mortgage
• seller
carries
the
promissory
note
and
mortgage
for
the
enPre
balance
of
the
home
price,
less
any
down
payment
Land
contract
• land
contracts
don't
pass
Ptle
to
the
buyer,
but
give
the
buyer
"equitable
Ptle,"
a
temporarily
shared
ownership.
• aoer
the
final
payment
the
buyer
gets
the
deed.
239. Non-‐ConvenPonal
Financing
VariaPons
of
Seller
Financing
Lease
Op*on
• tenant
pays
a
lump
sum
to
owner
for
the
opPon
to
purchase
the
property
in
the
future
• some
or
all
of
the
rental
payments
can
be
credited
against
the
purchase
price.
Sandwich
Lease
Op*on
240. Non-‐ConvenPonal
Financing
1.
2.
3.
4.
Most
common
forms
Seller
Financing
Hard
Money
Lending
Private
Investor
Joint
Venture
Partner
241. Non-‐ConvenPonal
Financing
•
•
•
Hard
Money
Loans
asset-‐based
lending
short-‐term
loans
can
be
a
second
mortgage
PROS
• backed
by
the
value
of
the
property,
not
the
value
of
the
borrower
• can
be
available
quickly
•
•
•
CONS
highest
interest
rate
of
all
loans
have
lower
loan-‐to-‐value
(LTV)
(50
-‐65%
max)
raPos
than
tradiPonal
loans
high
admin
Fees
242. Non-‐ConvenPonal
Financing
1.
2.
3.
4.
Most
common
forms
Seller
Financing
Hard
Money
Lending
Private
Investor
Joint
Venture
Partner
243. Non-‐ConvenPonal
Financing
•
•
Private
Investor
requires
a
return
on
their
money,
not
equity
Requires
YOU
to
be
experienced,
prepared
and
organized
PROS
• Asset
based
lending
•
•
CONS
Interest
rates
@
10%-‐12%
High
compePPon
245. Non-‐ConvenPonal
Financing
Also
eligible
to
be
self
directed:
RESP:
Registered
EducaPon
Saving
Plan
RRIF:
Registered
RePrement
Income
Fund
TFSA:
Tax
Free
Savings
Account
LIRA:
Locked-‐in
RePrement
Account
246. Non-‐ConvenPonal
Financing
1.
2.
3.
4.
Most
common
forms
Seller
Financing
Hard
Money
Lending
Private
Investor
Joint
Venture
Partner
247. Non-‐ConvenPonal
Financing
Joint
Venture
Partnership
"A
business
undertaken
by
two
or
more
individuals
or
companies
in
an
effort
to
share
risk,
use
resources,
Mme,
knowledge,
and
differences
in
experMse
for
a
common
goal"
248. Non-‐ConvenPonal
Financing
•
•
Joint
Venture
Partner
Equity
share
Max
50
investors
in
Ontario
PROS
• Unlimited
deal
combinaPons
• leverages
everyone
strengths
• Unlimited
deals
•
•
CONS
you
give
up
equity
more
than
one
decision
maker
265. RenovaPons:
Have
a
Plan
1.
SCOPE
• Scope
of
work:
list
of
what
must
be
done
• ‘must
have’
vs
‘would
be
nice’
• Always
prepare
a
couple
opPons
• Appeal
to
90%
of
populaPon,
90%
of
the
Pme
266. RenovaPons:
Have
a
Plan
2.
MONEY
• Create
a
budget
for
each
opPon
• Affordable
materials
and
products
• Plan
for
a
minimum
10%
conPngency
fund
267. RenovaPons:
Have
a
Plan
3.
TIME
• Make
a
‘Pme
budget’
• construcPon
calendar
• Divide
the
renovaPon
into
3
or
4
Pme
stages
268. RenovaPons:
Have
a
Plan
QUALITY
• No
compromises!
• Everything
you
can
see
and
can’t
see
• QUALITY
is
result
of
proper
planning
of
SCOPE,
TIME
and
MONEY
269. RenovaPons
4
steps
to
a
successful
renovaPon
1. Have
a
plan
2. Find
a
contractor
3. The
renovaPon
process
4. Follow
up
and
measure
results
270. RenovaPons:
Finding
a
Contractor
•
•
•
•
•
•
Find
the
contractor
Local
bandit
signs
Local
Directory
Online
search
Referral/word
of
mouth
Networking
group
Neighborhood
work
271. RenovaPons:
Finding
a
Contractor
Do
your
homework
• Research,
research,
research
• Online
sites,
BBB
• Ask
for
references
and
photos
from
recent
projects
• Talk
to
references
• Did
the
project
meet
their
expectaPons?
• How
were
the
workers
and
subs?
• How
was
the
SCOPE,
TIME,
MONEY,
QUALITY?
272. RenovaPons:
Finding
a
Contractor
•
•
•
•
Ask
ques*ons
Are
they
licensed?
Ask
for
copy
Do
they
have
insurance?
Ask
for
copy
Ask
for
workers
comp
informaPon
How
long
have
they
been
in
business
for
and
what
is
there
area
of
experPse?
• How
much
money
do
they
require
as
a
down
payment
for
the
work?
• How
much
Pme
do
they
expect
the
project
to
take?
• How
long
do
they
guarantee
their
work
for?
273. RenovaPons:
Finding
a
Contractor
•
•
•
•
•
Professionalism
Do
they
even
have
a
standard
contract?
Do
they
recommend
permits?
Do
they
guarantee
the
work?
Appearance/demeanor/behavior/language
Branding?
274. RenovaPons:
Finding
a
Contractor
Shop
around
• Get
bids
from
3
different
contractors
275. RenovaPons
4
steps
to
a
successful
renovaPon
1. Have
a
plan
2. Find
a
contractor
3. The
renova*on
process
4. Follow
up
and
measure
results
276. RenovaPons:
RenovaPon
Process
Contractor
Renova*on
Blueprint
1
2
3
4
5
Agree
on
Project
Sign
Documents
Get
Building
Permits
Changes
and
Payments
Final
Sign-‐off
277. RenovaPons:
RenovaPon
Process
1. Agree
on
the
project
•
•
•
•
SCOPE
TIME
MONEY
QUALITY
Always
have
a
minimum
10%
con*ngency
fund
278. RenovaPons:
RenovaPon
Process
2.
Sign
the
Documents
•
•
•
•
Independent
contractor
agreement
Scope
of
Work
ConstrucPon
Schedule
Payment
Schedule
279. RenovaPons:
RenovaPon
Process
3.
Building
Permits
•
•
•
No
work
starts
unPl
you
see
building
permits
Building
permits
are
required
when
doing
most
renovaPons
Common
exempPons:
PainPng,
Flooring,
replacing
doors,
light
fixtures,
door
hardware
280. RenovaPons:
RenovaPon
Process
4.
Changes
and
payment
•
•
Always
sign
a
‘change
of
work’
order
Follow
the
construcPon
and
payment
schedule
281. RenovaPons:
RenovaPon
Process
5.
Final
Sign-‐Off
•
•
•
•
•
Walk
through
renovated
space
with
contractor
Use
scope
of
work
and
any
change
of
work
orders
as
a
sign
off;
both
iniPal
items
complete
Inspect
for
any
damage
done
by
contractor
or
subs
Make
final
payment
only
when:
• Work
is
complete
• Any
damage
is
repaired
• Your
are
100%
saPsfied
with
the
work
Give
a
tesPmonial
and
ask
for
a
tesPmonial
282. RenovaPons
4
steps
to
a
successful
renovaPon
1. Have
a
plan
2. Find
a
contractor
3. The
renovaPon
process
4. Follow
up
and
measure
results
283. RenovaPons:
Follow-‐Up
and
Measure
Results
•
•
•
•
Check
the
renovaPons
aoer
30
days,
90
days
and
1
year
Make
note
of
material
and
labour
durability
Re-‐use
durable
materials
and
labour
DisconPnue
use
of
poor
materials
and
labour
285. Plan
of
AcPon
1. Know
your
goals
2. Develop
your
business
plan
3. Build
your
team
4. Organize
your
business
5. Market
research
6. PracPce,
pracPce,
pracPce
7. Make
offers
8. Purchase
one
property
9. Repeat
286. Plan
of
AcPon
Important
Con*nue
to
educate
yourself
Add
value
to
other
peoples
lives
