1 – The Blueprint to Financial Freedom with Real Estate Investing
In this episode, I'm talking to a new member of EducationREI.ca, where we get them familiar with the material, find their goals and direct them on where they can get started working toward those goals.
Quentin talks with a new member, who moved to Canada in 2006 as a first-generation migrant from India. He became interested in real estate in Canada while working at one of the top five banks in Canada. Meanwhile, he used the buy and hold strategy in India. After marriage, he and his wife decided that they wanted to become homeowners, which they were able to achieve. Now, they want to achieve financial freedom, and want to start with some cash flowing properties. To sustain their lifestyle, they are looking at an income of 100k. Talking about what the financial freedom looks like for him, he says that it has more to do with the time, what they could do, and the location they could be at.
Quentin shares a complete blueprint to help them get started with real estate investing. He says that if you've got 500k and you want to create $8,000 a month for cash flow, as you're investing in property, you’ll end up with cash flow that starts off smaller but increases over time. At the same time, you need to be careful. He adds that cash flow helps you to hold on to an asset, but what is really going to make you money is the mortgage paid down and the capital appreciation with that product. Over time, as you own that asset, let's say five to 10 years, then you can refinance the property. You can also use the cash flow to help support your income. He says that you have to have a longer-term mindset, there's too much of a day trading mentality when it comes to a lot of things, which is as true for real estate as it is for the stock market.
He adds that the way that you do well is, you have to invest in markets that are both appreciating and give you some cash flow. You can find cash flow by doing different strategies; working privately, networking with other investors to find opportunities, looking at areas along the 401 Corridor, etc. He recommends the courses to start off with is ‘Your First Million in Real Estate’, to learn some of the fundamentals that you want to be looking for when you're looking at all these markets. He further adds that you need to stay away from some of the smaller communities, because they can have these big rushes of appreciation, that can go on for 5, 10 years, but then they'll have flat periods. People don't see the flat periods because they don't have a long enough memory to be able to see it.
Quentin says that you've got to keep that in mind when you're looking at different types of investment property, not just cash flow. He suggests him to do his own research first. With regards to accessing funds, he recommends financing at this point. At the very least, a line of credit; home equity line of credit as a component of the mortgage, so that the mortgage payment amount doesn't change but you have access to the funds, as a secured line of credit. Then as you go along, you're going to look at the joint venture course. Quentin then suggests that he should go back to the meeting and listen to the meeting recordings because that is where we talk about what's happening right now, what areas and what strategies are working, where people are buying – those are the things that you really want to go in and listen to. Rather than the reports, he says that the videos would be more helpful.
In conclusion Quentin says that EducationREI.ca is essentially an education platform for people who are investing in other places, it's more about the fundamentals of real estate investing, the Q&A calls, the meetings and the connections that you make.
· Introduction [00:00:00]
· What Was His Experience Like and What Were His Returns While Investing in Real Estate India? [00:04:50]
· What is the Financial Freedom ‘Number’ for Him? [00:07:44]
· What Seed Capital Does He Have to Invest With? [00:09:10]
· Getting Started with Real Estate Investing [00:10:08]
Important Links and Resources