Coaching — Page 2 — Phoenix Real Estate

Credit Repair Mysteries – how do I fix my credit?

October 29, 2020 by admin

Credit is a mystery for most people that are not in banking or finance. For most people, if they have a good job and never defaulted on a credit card bill (the bane of many a millennial that didn’t know better and said screw telus/rogers/bell when they were 14 and then find out that really screwed up their credit when it was brand new) then you would have been able to get credit cards, car loans without too much trouble.

Then when you first think about buying a house you go into your bank (not my recommendation) and the cheerful banker asks you to sign some forms and fill in an application then plugs a bunch of numbers into a database tool and it spits out a number you can qualify for. That number was shockingly low for most people that are middle class, just like I was a bit shocked with I first tried to buy a property for myself – about 180K was my approval….which at that time in Calgary could have bought me a beautiful single story outhouse in a bad part of town!

So it was at that time I decide to buy a nice car because a house was out of the question, and after all I couldn’t drive the house to work…so that made sense to me at the time. Looking back is always easier than looking forward, was the the best financial choice? Maybe, maybe not – but as luck would have it that was just prior to the top of the market in the 2005-2007 era right before the crash. So, sometimes things work out even when we don’t have all the info to make the informed decision.

Now, some people might get a different answer from the banker’s little software – congrats you can afford 400K! If only your credit score didn’t suck and it is below their allowable guideline (typically 650+ for the “big 5” in Canada). At this point is where most people learn for the first time that your credit score is a big deal – unfortunate timing when you have a lease ending and you want to go house shopping!

The banker will know very little about credit and possibly give you some terrible device – so beware banks are not in the business of credit scores they are in the business of banking! Talk to a specialist or an amazing mortgage broker who knows about credit repair.

What to do? There are also many credit counseling advisors out there, which can give you good habits to follow. What we suggest is that you talk to a credit repair specialist that knows real estate and how to fix credit fast – because who wants to wait another 2-3 years? That will help expedite the process, contact us and we can recommend rock stars in this field.

Credit matters – why they don’t teach this somewhere in schools is unfortunate. We are here to help, also dispel myths about home buying such as: if you go bankrupt you can’t buy a house for 7 years. That is total BS and if that’s you give us a call because we have options. Home ownership could be closer than you think.

To your success,

Tim Reid

-Respect The Hustle

Filed Under: Uncategorized Tagged With: calgary, Coaching, education, Realestate, wealth

Book review by one of the greats

October 3, 2020 by admin

I love to read, as some of you may have seen from my posts – I have crushed a number of book since covid, frankly not driving around as much being stuck in traffic in addition to getting more sleep has really helped the book/month ratio. I will be including a comprehensive list from my book shelf here shortly.

Mr Bruce Firestone founder of the Ottawa Senators is one of my mentors and here is one of his latest blogs taking a review of corporate mergers which are not always the best for the employees…see the full article here

Delivering Profitability

Filed Under: Uncategorized Tagged With: amazon, buisness, Coaching, Investing, Realestate

Avoid Bank Penalties with Blended Mortgages

June 19, 2020 by admin

When real estate investors start out, normally they use their own resources: credit, down payment, bank financing. This is the common way we all get started in real estate investing, however without having knowledge of creative financing structures the penalties can bite into your profits big time!

Whether you plan to flip, RTO, or renovate and refinance the property how your mortgage is set up is key to maximizing your profits. The bank’s and most mortgage brokers will never tell you anything about how to use blended mortgages – why? Because it isn’t in their interest to help you pay less interest and reduce fees, that is how they make their money!

A blended mortgage is defined as using 2 or more different mortgage products to fund your deals. There are private mortgage and financing options that are available, further, a variable VS fixed-rate mortgage is important. LOC’s do not have penalties when paid out early, and fixed-rate/variable-rate mortgages have pre-payment penalties in almost all cases.

Some mortgages will allow you to blend/extend the mortgage and use it to purchase another property. However, this can be problematic because of the price difference between properties 1 and 2.

When you plan to refinance/sell the house in the short term, then finding creative ways to minimize that penalty is a wise thing to do. Using blended mortgages+private money to structure the deal is one of the things we specialize in at the phoenix group.

Example: a 300K property you could get a LOC for 65% of the value 195,000 and a fixed-rate mortgage for 15% (total LTV 80%) 45,000 to fund your project. Now, you have a penalty to pay on the fixed Mortgage of only 45K rather than the full 300k! This is one of the things the bank will never tell you, however with the right guidance they can be sold on these structures easily and effectively.

Stay tuned for more insider secrets like these.

PS: If you want to learn how this strategy and others work Contact Us to book a discovery call to have a chat on how we can serve and support your real estate pathway to wealth.

To your success,

Tim Reid

-Respect The Hustle

Filed Under: Uncategorized Tagged With: calgary, Coaching, education, Investing, Realestate, realestateprofits, wealth

3 Must Reads For Real Estate Investors

June 13, 2020 by admin

They have always said that readers are leaders! I totally agree with that in real estate investing and business – there are a lot of skills to be learned. There are a lot of real estate courses there, that they do a debatable job of teaching the real estate tactics, but what about the other business skills that you need?

I started to coach other real estate investors as a Canadian for Canadians because I learned how much I DIDN’T know after school and working my way through the corporate world.

Business is 80% the same for any industry, and having some great insights from people who have been there before will give you a head start and cut the learning curve by years.

3 Books that all Real Estate Investors should Read:

Duct Tape Marketing – John Jantsch. This book takes the fundamentals of all marketing and makes it applicable to the small business in simple easy to understand terms
The Lean Startup – Eric Reis. This book shows you how to take a product or service to the market efficiently without spending too much money.
The 4-hour workweek – Tim Ferris. One of the best books on the entrepreneurial method and how to think like a business owner and not a technician

Coaching will also exponentially cut your learning curve, and help you replace years of learning, reading, trial, and error – Contact us to set up a discovery call to help us serve and support you to the highest level

To your Success,

Tim Reid

-Respect The Hustle

Filed Under: Uncategorized Tagged With: alberta, Coaching, Investing, Realestate, wealth

RRSP Myths Real Estate Solves

June 5, 2020 by admin

We are told by banks, government, and traditional financial advice to save money in our RRSP’s because you get to grow your investments tax deferred. Now, what does DEFERRED really mean? What that actually means and many do not understand or even if they do it often gets forgotten…you pay the tax LATER is what that means.

Do you know what the tax rate will be in the future? I would suggest to you that it will be higher than it is today – during the great depression the highest tax rates increased. With the current state of the world I would bet your going to see increased taxes over the coming decades to pay for the assistance the Governments around the world have had to put into the economy.

When you start taking your RRSP funds out when you retire you will have to pay whatever tax rate that the feds decide to set at that time. Have 1,000,000 saved? That could only really be 600K or 700K you could actually spend – scary thought right?

I believe in Cash flowing assets – real assets like fully optimized single family homes (contact us to learn more about what that means) and multi-family assets. No matter the tax rate in the future, people will always need to have somewhere to live, and rental rates are tied to inflation protecting your earning ability.

RRSP’s only really benefit the owners if they are Self-directed and you use them for real estate backed arm’s length mortgages. This is something we help people with on a regular basis, after learning the TRUE COST of most mutual fund investments people are shocked at what a ride they are being taken on….in favor of the bank’s/mutual fund companies interest and not their own.

If you found value in this post please feel free to share!

PS: If you would like to learn more about how to analyze the fees your being charged on your investments/how to build a cash flow machine for generations through real estate. Contact us for a complimentary discovery call

To your success,

Tim Reid

-Respect The Hustle

Filed Under: Uncategorized Tagged With: Coaching, Investing, Realestate, RRSPS