Robert Klein Newsletter - May 2020/Edition 96

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

Foreclosures

 

May 2020 Abbotsford Detached
May 2020 Burnaby Attached
May 2020 Burnaby Detached
May 2020 Chilliwack Attached
May 2020 Chilliwack Detached
May 2020 Commercial
May 2020 Coquitlam Attached
May 2020 Ladner Detached
May 2020 Land
May 2020 Langley Attached
May 2020 Langley Detached
May 2020 Maple Ridge Attached
May 2020 Maple Ridge Detached
May 2020 Mission Detached
May 2020 Multifamily
May 2020 New Westminster Attached
May 2020 North Vancouver Attached
May 2020 North Vancouver Detached
May 2020 Okanagan
May 2020 Pitt Meadows Detached
May 2020 Port Coquitlam Attached
May 2020 Port Coquitlam Detached
May 2020 Port Moody Attached
May 2020 Richmond Attached
May 2020 Richmond Detached
May 2020 Shuswap
May 2020 Surrey Attached
May 2020 Surrey Detached
May 2020 Vancouver Attached
May 2020 Vancouver Detached
May 2020 West Vancouver Detached

Above is a list of foreclosures in the Lower Mainland and beyond.

Check them out at the links above.



What You Do Is More Important Than How Good You Are at What You Do

 

It took me 37 years to figure this out.

In 2017, I saw a post about a friend of mine who purchased 200 + doors of multi-unit residential properties.  He controlled $20,000,000 worth of real estate.  In order for him to make $1,000,000, his real estate investments would have to increase by 5% in value.  That's it. 

He compared himself to his doctor/dentist/business owner friends who were all successful in their own right, but could not touch the power of a $20,000,000 rental portfolio. 

When I read this, it was a hit in the gut.  I almost puked, because I knew he was right.  

This made me ask myself 1 question: What am I good at and how do I put that in front of money?

Answer: I'm good at technical home runs.  

Where is the greatest opportunity with my skill set?

1. Commercial Mortgages
2. Commercial Real Estate Sales
3. Development of Real Estate

This is where I'm going.  

Ask your self, can your business compete with a $20,000,000 rental portfolio? 



700 Year Trend Line of Interest Rates

 

I thought this was interesting.  Most graphs I've seen are maybe 50 years on interest rate trends.  

Here is the last 700 years:

https://www.visualcapitalist.com/700-year-decline-of-interest-rates/



I'm Raising Ninjas

 

For whatever reason, little Rob does kart wheels off everything.  He taught himself.  His biggest drop was doing a kart wheel off a 3.5-foot counter.  It's insane. 

Personally, I've never done a kart wheel in my life.  

Dandan has never done a kart wheel in her life. 

I asked little Rob if he wanted to go into gymnastics or a super top secret ninja school.

He picked ninja school. 



Extreme Mountain Bike Family

 

I bought my first real mountain bike in 1995 for a $1050 dollars.  I worked 40 hours a week during grade 10 @ $6 hour to make it happen.  

I rode North Vancouver's famous mountain bike trails till 1997.  I then went to college and took 23 years off mountain biking. 

I'm now back.  

I got Sarah her bike when she was less than 2.  I'm supposed to get her this bike when she is 3.  She can now go down hills without training wheels.  All she wants to do is mountain bike.  

Next step is to get Dandan a bike!



How Has Covid 19 Affected Mortgage Underwriting

 

Short answer: Made it much more difficult. 

If you lost your job and no longer earning income, the bank will no longer give you a new mortgage, unless you have a letter stating you have a guaranteed return date.  Good luck getting this.   

If you are self-employed and the bank thinks that your business has been impacted dramatically, banks will no longer give you a new mortgage.

On top of that, the underwriting process has become delayed.  Everyone is now working from home and the process of getting exceptions and timely email answer replies has been disturbed dramatically. 

What's the solution?

Patience. 



Robert Klein Newsletter - April 2020/Edition 95

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

April 2020 - List of Foreclosures

 

Abbotsford Detached
Cloverdale Detached
Vancouver West Detached
Burnaby Detached
Chilliwack Detached
Ladner Detached
Coquitlam Detached
Delta Detached
Vancouver East Detached
West Vancouver Detached
Vancouver West Attached
Chilliwack Attached
Vancouver East Attached
Surrey Attached
Cloverdale Attached
Langley Attached
Coquitlam Attached
Burnaby Attached
North Vancouver Attached
New Westminster Attached



BDC - $100,000 Loan for Businesses

 

BDC is Business Development Canada.  They are a government based lender.  

I just applied for it.  I have no idea what amount I will get.  

The requirements for qualifying are low: 

1. Canadian-based business
2. Generating revenues for at least 24 months
3. Good credit history
4. You’ve reached the age of majority in the province or territory where you live

https://www.bdc.ca/en/financing/business-loans/pages/small-business-loan.aspx



75% Wage Subsidy + $40K Loans to Business Owners

 

Small businesses will now be able to receive up to 75 per cent in federal government funds in order to keep paying their employees during the COVID-19 pandemic – up from the previously announced 10 per cent subsidy plan. 

Also, under the new Canada Emergency Business Account, storefront businesses will also qualify for up to $40,000 in loans which will be interest-free for one year, with up to $10,000 forgiven, Trudeau said. Business owners will have until June to pay GST and HST payments while taxes on imports will also be suspended.  



Extreme Little Rob

 

I'm impressed with how good of a mountain biker little Rob has become.  We regularly go on mountain bike trails, and on a particular trail he rides a 12 foot skinny over a little river.  



Extreme Litte Sarah

 

We are supposed to buy this bike for her when she is 3.  We got it for her at 20 months old.  She now cranks it down hills quicky.  It's impressive.



Homeowners Who Want To Call Their Lenders

 

If you need to contact your mortgage lender and discuss what financial assistance they can offer, you may find the number below:

B2B 1-800-263-8349

BMO 1-877-895-3278

Bridgewater 1-866-243-4301

CIBC 1-800-465-2422

Optimum 1-866-441-3775

Equitable 1-888-334-3313

First National 1-888-488-0794

Haventree 1-855-272-0051

Home Trust 1-855-270-3630

HSBC 1-888-310-4722

ICICI 1-888-424-2422

Manulife 1-877-765-2265

MCAP 1-800-265-2624

Merix 1-877-637-4911

Marathon 1-855-503-6060

RBC 1-866-809-5800

RFA 1-877-416-7873

RMG 1-866-809-5800

Scotia 1-800-472-6842

Street Capital 1-866-683-8090

TD 1-866-222-3456



Robert Klein Newsletter - March 2020/Edition 94

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

Mortgage Payment Help

 

*I did not write this

We believe that nobody should have to worry about their mortgage because of financial impacts of COVID-19.  CMHC made an announcement that they're working with Genworth, Canada Guaranty and lenders to help, by increasing their flexibilities to allow payment deferral of up to 6 months starting now. 

This applies to borrowers with an insured mortgage (generally those who bought with less than a 20% down payment - but not exclusively)

 You can read the entire CMHC COVID-19 Announcement

 Tools include:

 - Deferral of payment

- Re-amortization of the mortgage

- Capitalization of outstanding interest arrears and other eligible expenses

- Special payment arrangements

 If you find yourself in the position that you are about to be self-isolated, or quarantined and need help with your mortgage payments, please reach out directly to your lender. 

Most lenders have options available to skip-a-payment or put a payment on hold (even before this new CMHC announcement). 

It is imperative that you reach out to the lender and request this though.  Each lender has different options, and with how quickly COVID-19 is developing, lenders are updating their policies to help, regardless of whether you have CMHC default insurance on your mortgage, or not. 

To help make it easier for you, we have listed some of our most common lenders below, with phone numbers to their customer service department to get further details on skip or hold a payment options. 

Call volumes are very high, I would recommend that you try in the evening when call volumes have decreased a little.

LIST OF LENDERS CONTACT NUMBERS

ATB 1-800-332-8383
B2B 1 800 263 8349
BMO 1-877-895-3278
Bridgewater 1-866-243-4301
CIBC 1-800-465-2422
CMLS 1-888-995-2657
Optimum 1-866-441-3775
Equitable 1-888-334-3313
Connect First 403-736-4000
Chinook Financial 403-934-3358
First Calgary Financial 403-736-4000
First National 1-888-488-0794
Haventree 1-855-272-0051
Home Trust 1-855-270-3630
HSBC 1-888-310-4722
ICICI 1-888-424-2422
Manulife 1-877-765-2265
MCAP 1-800-265-2624
Merix 1-877-637-4911
Marathon 1-855-503-6060
RBC 1-866-809-5800
RFA 1-877-416-7873
RMG 1-866-809-5800
Scotia 1-800-472-6842
Servus 1-877-378-8728
Street Capital 1-866-683-8090
TD 1-866-222-3456
ATB 1-800-332-8383
Servus CU 1-877-378-8728



COV-19 Misinformation & Fact Check for Corona Virus

 

Please Check here first before spreading misinformations:

World Health Organization - Mythbusters section

CDC - Centers for Disease Control and Preventions

Snopes Fact Check on Corona-virus Memes Social Media Posts



How can I Assist?

 

Please reach out to me if you have any mortgage concerns: Mortgage payment deferring, pulling equity out, consolidating your debt into your mortgage.

Let’s talk through your options. Book a call with me here: Book a Call 



What's happened in the last week

 

*I did not write this

We are in unprecedented times with respect to quick financial market changes, government announcements, cancelled travel plans, and additional Covid-19 fears.

 I wanted to keep you informed with some quick mortgage points from this week(end)s news, (especially point 4 below):

1) The government of Canada announced that all current consultation regarding the mortgage stress test is “on hold”.  Therefore, the expected changes, which were to occur on April 6th, will not be happening.  The mortgage stress test rate will remain at 5.19% (for now). 

2) The government of Canada made an emergency rate announcement, dropping the Bank of Canada rate by another .50%, making for a total drop of 1% in the last 8 days.  The banks have dropped their Prime rate, however, some banks and lenders have already announced that they’re increasing both fixed and variable mortgage rates.  This is due to liquidity and market risks.

 3) Variable Rate Discounts are Disappearing: Similar to the last financial crisis, discounts on variable rate mortgage are headed the wrong way.  Scotiabank was the first bank to announce their new variable rate mortgages will be at Prime, or higher.  That’s an effective discount reduction off of Prime of about .70%.  Even though Banks dropped Prime by .50% as expected, NEW variable rate mortgages now become more expensive than they were yesterday.

 4) Springtime is usually the busiest time of year for lenders, especially a spring with near record low interest rates.  And now, many lenders and lawyers are telling staff to work from home due to Covid-19.  This will substantially affect the Spring market, though it is impossible to know specifics at this time.   

To be safe, we are recommending that our clients make sure to start their mortgage shopping well ahead of time, allow 30 days minimum to close their mortgage or purchase., and even more time than that if you’re refinancing or transferring your mortgage.

Please contact us if you have questions about how these changes will impact you and your family.  



Why Are Some Mortgage Rates Rising?

 

*I did not write this

Fears over the COVID-19 pandemic and plummeting oil prices have caused mortgage rates to plummet to multi-year lows over the past couple of weeks. However, now some lenders are actually starting to raise rates.

Fixed rates on certain terms have been creeping back up, while some of the big banks have been quietly cutting their discounts on prime rate (which affects floating rates). Scotiabank, for example, raised its published 5-year closed variable rate 60 percentage points on Saturday, from 3.45% to 4.05%. 

So, what's going on?  Fear has saturated the market to the extent that lenders are now concerned about liquidity and rising defaults... 

Read the full article here.



Robert Klein Newsletter - February 2020/Edition 93

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

February 2020 Foreclosures

 

Abbotsford Detached
Bowen Island Detached
Burnaby Attached
Burnaby Detached
Chilliwack Detached
Cloverdale Attached
Coquitlam Attached
Coquitlam Detached
Harrison Mills Detached
Ladner Detached
Langley Detached
Langley Attached
Land
Multifamily
Mission Detached
Maple Ridge Attached
Maple Ridge Detached
N. Delta Detached
Nanaimo Attached
North Vancouver Attached
North Vancouver Detached
New Westminster Attached
Richmond Detached
Richmond Attached
South Surrey White Rock Detached
Sunshine Coast Detached
Surrey Attached
Surrey Detached
Tsawwassen Attached
Tsawwassen Detached
Vancouver Attached
Vancouver Detached
West Vancouver Detached
Whistler Attached



Investor Update: Villa Virtuoso - 32 Unit Apartment Building Investment Offering

 

Our Investment Offering for our new Apartment Building "VILLA VIRTUOSO" is now open for "Expression of Interest".

This "Expression of Interest" stage is all about investors getting in queue, it's "Non Binding", and is intended to let us know your interest so that we'll save a priority placeholder for you when we hit the "Cash Call Button".   

We'll begin Pro Forma Presentations in the coming months, I'll send out a notice in advance of the upcoming Webinar, and In-Person presentations. 

This offering comes in the form of fully BCSC compliant Subscription and Shareholder Agreements.

This Project, "VILLA VIRTUOSO'', is Rezoning approved and scheduled to complete the Development Permit process by end of May followed by Building Permit issuance and begin Construction Fall of 2020.

We're offering investors who participate a 50% share in the profit on the project, including;

- Estimated return of 100% of your initial invested Capital in 3 years or less.

- Reinvestment of the same capital into the next project.

- Retain your % equity position for the lifetime of the project, 10 years or less. 

- Monthly Cash Flow

Minimum Investment is $100,000

The total offering for investor shares is currently $3.5 Million.

We have $1.5 Million committed to date.  Once we have our performa finalized, the rest will be raised quickly. 

I'll also be putting together a detailed video explaining the math behind a building like this.  



Little Robert Joining Jujutsu

 

Looks like little Rob loves Jujutsu.  

During one of the sessions, Rob was having a hard time doing a roll.  Sarah saw this and ran out to him in the middle of the mat and gave Rob a big hug....extremely cute.



Extreme Mountain Bikers

 

Sarah is getting good at the pushbike.  Little Rob is doing real mountain biking.  We suspect he will join Dirt Groms in the next couple of months. 

https://www.facebook.com/groups/1180645868748706/

Dirt Groms is a mountain bike group for kids.  



Moving Penalty Graph

 

Good article on swapping rentals.  Main indicators for this would be:

1. Market Rents going up
2. Rent Restrictions

No surprise to see BC cities topping the list.

https://www.saanichnews.com/news/greater-victoria-has-canadas-sixth-highest-moving-penalty/



700 Year Trend Line of Decreasing Interest Rates

 

This graph is very interesting.  It shows interest rates for the last 700 years.  

https://www.visualcapitalist.com/700-year-decline-of-interest-rates/



Robert Klein Newsletter - January 2020/Edition 92

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

January 2020 Foreclosures

 

Abbotsford Detached
Bowen Island Detached
Burnaby Attached
Burnaby Detached
Chilliwack Detached
Cloverdale Attached
Coquitlam Attached
Coquitlam Detached
Harrison Mills Detached
Ladner Detached
Langley Detached
Langley Attached
Land
Multifamily
Mission Detached
Maple Ridge Attached
Maple Ridge Detached
N. Delta Detached
Nanaimo Attached
North Vancouver Attached
North Vancouver Detached
New Westminster Attached
Richmond Detached
Richmond Attached
South Surrey White Rock Detached
Sunshine Coast Detached
Surrey Attached
Surrey Detached
Tsawwassen Attached
Tsawwassen Detached
Vancouver Attached
Vancouver Detached
West Vancouver Detached
Whistler Attached



Properties in this Sechelt, B.C. Neighborhood were once worth over $1M. They now cost $2

 

I could not imagine being the owner of these properties. Most people's net-worths are in their homes. 

It will be interesting to see who is responsible and who has to pay for this.  

City?
Developers?
Insurance?
Owners?

What a mess. 

What happened? Sink holes. 

https://bit.ly/2NP1EEm



0% Down Commercial Financing

 

A few years ago, Doctors/Dentists/Accountants were the main ones that could get access to 0% down financing.  

That's changing, it's now expanding to successful businesses.  

The core client for a product like this is someone who is paying a large lease. 

You are better off paying down your own mortgage vs paying down someone else mortgage.  



Dandan is a Canadian Citizen!

 

8 years later Dandan became a Canadian Citizen!

We now all have Canadian Passports which will make international travel easy :).

The next step is Sarah getting a bit older as we barely travel 30 minutes away from our house.  



Snow Time

 

We had a blast with the snow. The kids were sad to see it leave so quick.  I was happy.  I could not imagine living in an area with 8 months of snow. 



BC Multi Family

 

Interested in investing in Mult Family in BC.  This is a report to read.  

If you are going to buy, look for the cap rates over 5% or super high 4%.  This will allow you to maximize CHMC financing @15% to @25% down.  

CHMC financing can be @ 40 years amortization @ 2.7%.

Maximizes cash flow + maximizes mortgage amount.  

https://bit.ly/2TNE5j3



Robert Klein Newsletter - December 2019/Edition 91

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

Foreclosure List

 

DEC 2019 - Abbotsford Attached
DEC 2019 - Abbotsford Detached
DEC 2019 - Bowen Island Detached
DEC 2019 - Burnaby Detached
DEC 2019 - Chilliwack Attached
DEC 2019 - Chilliwack Detached
DEC 2019 - Cloverdale Attached
DEC 2019 - Coquitlam Attached
DEC 2019 - Coquitlam Detached
DEC 2019 - Land
DEC 2019 - Langley Attached
DEC 2019 - Langley Detached
DEC 2019 - Maple Ridge Attached
DEC 2019 - Maple Ridge Detached
DEC 2019 - Mission Detached
DEC 2019 - Multi-Family
DEC 2019 - Nanaimo Attached
DEC 2019 - New Westminster Attached
DEC 2019 - New Westminster Detached
DEC 2019 - North Vancouver Attached
DEC 2019 - North Vancouver Detached
DEC 2019 - Port Coquitlam Detached
DEC 2019 - Richmond Attached
DEC 2019 - Richmond Detached
DEC 2019 - S. Surrey White Rock Detached
DEC 2019 - Sunshine Coast Detached
DEC 2019 - Surrey Attached
DEC 2019 - Surrey Detached
DEC 2019 - Tsawwassen Attached
DEC 2019 - Tsawwassen Detached
DEC 2019 - Vancouver Attached
DEC 2019 - Vancouver Detached
DEC 2019 - West Vancouver Detached
DEC 2019 - Whistler Attached

Check out this month's foreclosure list!



How to Make $1,000,000 Dollars in Commercial Property

 

How to Qualify for Millions Worth of Mortgages in Canada

Let's assume a cap rate of 5%.

Value = Net Operating Income / Cap Rate

$1,000,000 = NOI / 5%

NOI = $1,000,000 x 5%

NOI = $50,000

Increase a property net operating income by $50,000 dollars, the value of your property just went up $1,000,000.  

If this is a foreign language to you, watch the video above.  The second half goes into the math of commercial. 

Residential Real Estate is not the same as Commercial Real Estate



2019 Tax Planning for Mortgages

 

The way you structure how much you pay yourself from your corporation will dictate how much residential and how much commercial property you can buy.  

If you plan correctly, you win. 

If you do no plan, you will either win or you will lose. 

1 month ago I bought a property that I did not plan on buying last February when I did my taxes.  

How many banks would lend to me at A rates? 

1 Lender. 

I was lucky.  I found a 1 off lender that would do it.  

If I knew I was going to buy this property last February, I would have structured myself accordingly. 



Santa Time!

 

Little Rob and Sarah were really excited to see Santa.  Every time we saw him on youtube/netflix, both would freak out.

You would think the excitement would continue when we saw him in person.  Wrong, excitement turned into silence.  

The only people who were still excited were myself and Dandan!



Cuddle Buddies

 



Strata Condo Insurance Complex Up 500% in Ft. McMurray

 

A week ago I came across a post by a young family losing their home in Fort McMurray.  I assumed missing mortgage payments would be the cause.  

It turns out it was about the increase of their insurance premiums on their strata complex.  It went up 500%, from $142,000/year to $800,000/year for 156 units.  That's $5128/unit.  

This is a direct result of the after-effects of the fire in Ft. McMurray.  Insurance companies don't want to insure in that area. The one that does, wants a fortune for it.  Alberta Government requires insurance coverage on all Stratas. 

Perfect Storm.

Here is the news article:
https://www.cbc.ca/news/canada/edmonton/fort-mcmurray-bankruptcy-condo-insurance-1.5393448?fbclid=IwAR0wwlK3kiKLqyaYukxK7kjdfcV-IprKIWVaJYvI6HMwWZ6Ll6-huJ5iS-8

Here is the Facebook post:
https://m.facebook.com/story.php?story_fbid=10156362826332587&id=505462586



Robert Klein Newsletter - November 2019/Edition 90

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

November 2019 - Foreclosure List

 

Nov-2019-Abbotsford-Attached
Nov-2019-Abbotsford-Detached
Nov-2019-Burnaby-Attached
Nov-2019-Burnaby-Detached
Nov-2019-Bowen-Island-Detached
Nov-2019-Chilliwack-Attached
Nov-2019-Chilliwack-Detached
Nov-2019-Cloverdale-Detached
Nov-2019-Coquitlam-Attached
Nov-2019-Coquitlam-Detached
Nov-2019-Land
Nov-2019-Langley-Detached
Nov-2019-Langley-Attached
Nov-2019-New-Westminster-Attached
Nov-2019-New-Westminster-Detached
Nov-2019-North-Vancouver-Attached
Nov-2019-North-Vancouver-Detached
Nov-2019-Port-Coquitlam-Attached
Nov-2019-Port-Coquitlam-Detached
Nov-2019-Richmond-Attached
Nov-2019-Richmond-Detached
Nov-2019-Sunshine-Coast-Detached
Nov-2019-Surrey-Attached
Nov-2019-Surrey-Detached
Nov-2019-Vancouver-Island-Attached
Nov-2019-West-Vancouver-Attached
Nov-2019-Whistler-Attached
Nov-2019-Tsawwassen-Detached
Nov-2019-West-Vancouver-Detached
Nov-2019-Vancouver-Attached
Nov-2019-Vancouver-Detached
Nov-2019-Vancouver-Island-Attached
Nov-2019-Whistler-Attached
Nov-2019-West-Vancouver-Attached
Nov-2019-Tsawwassen-Detached
Nov-2019-Vancouver-Attached
Nov-2019-Vancouver-Detached
Nov-2019-Vancouver-Island-Attached
Nov-2019-West-Vancouver-Attached
Nov-2019-West-Vancouver-Detached
Nov-2019-Whistler-Attached
Nov-2019-Multifamily
Nov-2019-Maple-Ridge-Detached



Should I Become a Commercial Realtor?

 

Over the last 4 months, I've done a lot of Facebook marketing that has generated a significant amount of people who are interested in purchasing commercial properties.  

The volume of requests has made me ask myself this question "Should I become a Commercial Realtor?".  

The problem with commercial financing is that it takes 3 months to a year to structure someone correctly to qualify for a specific property or a property in general.  

The second problem is that most Commerical Realtors do not have a strong understanding of what math/financial/corporate structures have to take place in order for the bank to say yes.   ***I can't blame them as it has taken me years to figure this out.***

So...why don't I just do both seamlessly together. 



What Stops Vancouver Developers from Developing Condos

 

Pre-sales.

They have to have a significant amount of units sold before the construction loan is provided.

There is one way around this. 

CHMC Insured Multi-Unit Loans.

The trick is to design your building to make sure CHMC would get involved in the end to replace your construction loan once your building is complete.

How many units have to be pre-sold under this strategy? 

0.



Check Out this 20 Foot Skid!

 

Little Rob is now into extreme mountain biking.  Our Youtube videos are now filed up with mountain biking shows.  

His number 1 goal is to do "60 million double back flips".  



I Bought a Mountain Bike!

 

In 1995 I bought a 1995 Kona Cinder Cone for $1050.  I worked 40 hour weeks in grade 10 to pull this off at $6/hour.  

In 1997 I went to college and stopped mountain biking.  :(

22 years later, I'm back.  

If there was a time to do it, it's now.  



0% Down Commercial Financing

 

Since the influx of commercial business that I'm working on has come in, I've had to streamline my systems to deal with it. 

One of those systems is to network directly with banks.  

How do I do that? 

I cold call them. 

Two Fridays ago, I met with RBC, TD, Scotia and Community Savings on the Island. 

It turns out 2 of the 4 have new programs that allow 0% down on owner-occupied commercial space. 

I now have 4 lenders that can do 0% down. 

Since it's 0% down, loan rates can be higher. 

In general:

1. Strong operating company
2. Your business has to go into the building



Robert Klein Newsletter - October 2019/Edition 89

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

October Foreclosure List

 

Sept 2019 Abbotsford Attached
Sept 2019 Abbotsford Detached
Sept 2019 Burnaby Attached
Sept 2019 Burnaby Detached
Sept 2019 Chilliwack Detached
Sept 2019 Commercial
Sept 2019 Coquitlam Attached
Sept 2019 Land
Sept 2019 Langley Attached
Sept 2019 Langley Detached
Sept 2019 Maple Ridge Attached
Sept 2019 Maple Ridge Detached
Sept 2019 Mission Detached
Sept 2019 Multifamily
Sept 2019 New West Attached
Sept 2019 New West Detached
Sept 2019 North Van Attached
Sept 2019 North Van Detached
Sept 2019 Okanagan
Sept 2019 Port Coquitlam Attached
Sept 2019 Port Coquitlam Detached
Sept 2019 Richmond Attached
Sept 2019 Richmond Detached
Sept 2019 Shuswap
Sept 2019 Surrey Attached
Sept 2019 Surrey Detached
Sept 2019 Vancouver Attached
Sept 2019 Vancouver Detached
Sept 2019 West Van Attached
Sept 2019 West Van Detached



Two Biggest Problems with Scaling into Real Estate

 

#1 - Not understanding what the banks will lend on easily
#2 - Not structuring your financials so the bank will easily lend to you

This problem has dramatically evolved over the last 5 years. 

The world of being entitled to mortgages based on equity and exceptions is gone.  

Is there a way around this? 

Yes.

Solve #1 and #2 = Scale. 



Real Estate Scaling Examples (Bad to Excellent)

 

Bad = Vancouver 1 bedroom Condo

Good = Fraser Valley 4 plex

Excellent = 15 plex @ 5.5% cap rate

In terms of financing, the average person might be able to qualify for 1 or 2 Vancouver condos. 

For a 4 plex in the Fraser Valley, that number increases to 4 to 5 or maybe more.  

For a 15 plex @ 5.5% cap rate, skies the limit.  As long as you have the down payment, the banks will line up to give you funds. 

https://www.youtube.com/watch?v=GpD5YvucKDA&t=1356s



New Mountain Bike!

 

Gears + brakes on the handlebars...not to bad for a 4.5 year old.  

Little Rob will be joining a local mountain bike club.  They train kids and have mock races all over Vancouver Island.  

He is so excited, that 50% of his youtube watching and evolved into Mountain Bike shows. 



Sarah Gets a Glider

 

A glider does not have peddles.  It allows you to push with your legs and learn how to balance. 

The glider is a little bit big for her at the moment.  We expect her to grow into it in the next 60 days!



Where Should You Invest?

 

The short answer is to check out ACRE event put on by REIN. 

https://rein.swoogo.com/acrevan

It's a 3-day event from Nov 1 to Nov 3.  

Don Campbell is the one you will want to listen to.  

I believe it costs $395 for the event.  

They will provide you a top 10 list of BC cities to invest into. 

This is the foundation of answering "where".  

I went last year and now I'm involved in developing a 32 unit rental building in Victoria.  

The key for me was knowing Victoria was in that top 10 list. 



Robert Klein Newsletter - September 2019/Edition 88

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

Foreclosures

 

Sept 2019 Abbotsford Attached
Sept 2019 Abbotsford Detached
Sept 2019 Burnaby Attached
Sept 2019 Burnaby Detached
Sept 2019 Chilliwack Detached
Sept 2019 Commercial
Sept 2019 Coquitlam Attached
Sept 2019 Land
Sept 2019 Langley Attached
Sept 2019 Langley Detached
Sept 2019 Maple Ridge Attached
Sept 2019 Maple Ridge Detached
Sept 2019 Mission Detached
Sept 2019 Multifamily
Sept 2019 New West Attached
Sept 2019 New West Detached
Sept 2019 North Van Attached
Sept 2019 North Van Detached
Sept 2019 Okanagan
Sept 2019 Port Coquitlam Attached
Sept 2019 Port Coquitlam Detached
Sept 2019 Richmond Attached
Sept 2019 Richmond Detached
Sept 2019 Shuswap
Sept 2019 Surrey Attached
Sept 2019 Surrey Detached
Sept 2019 Vancouver Attached
Sept 2019 Vancouver Detached
Sept 2019 West Van Attached
Sept 2019 West Van Detached



Ice Cream or Lollipops?

 

This is the crew hanging out on a Sunny afternoon at Cowichan Bay.  

There is a Candy store that specializes in Candy and Ice Cream. 

I told little Rob and Sarah, that they could either have 1 candy or 1 ice cream. 

Choose wisely.  

They chose lollipops.  

They choose wrong.  

I ended up having ice cream.  

At the end little Rob wanted to trade his lollipop for my ice cream!



Million Dollar Smile

 

This is the smile Sarah uses on everyone. 



Scrooge McDuck and Money (1967)

 

Scrooge McDuck and Money (1967)

This video is amazing.  For some reason in the 1960's, Disney was involved in teaching kids/people about money.  



Investors: 30 Unit Victoria Rental Condo Build + Joint Ventures on Medium Density Lots

 

In April of 2018 I moved my family to Mill Bay on Vancouver Island. 

Reasons we moved: 

1. Dream House
2. Two minutes from ocean
3. Ten minutes from a lake
4. < $1,000,000 Purchase Price
5. 2 young kids
6. Safe and friendly
7. Mortgage business is done from a computer
8. Real estate investing on the island is much easier than the lower mainland

Immediately I started to network with real estate investment groups based in Victoria.  My objective was to get to know the lay of the land. 

Some time in October 2018, I had a conversation with an investor who owned 3 condo building with around a 100 units.  He didn't buy these properties, he built them.  

That was intriguing.  

I then asked him what his back ground in building and development was and he answered he didn't have any.

This was an eye opening statement.  

I come from Vancouver, and my perspective on developments is that it takes years and years and costs 10's of millions of dollars.  

In Victoria, this was not the case.  

They were able to build small and more importantly keep the condo buildings long run.  

I immediately set up a time with an investment Realtor and went through a bunch of completed projects.   

I really liked what I saw. 

I called up my developer/investor friend of 10 years (Rick Genovese) and said "Come over to Victoria, something interesting is going on here". 

9 months later we tied down 6 lots and have 2 of the 6 being rezoned for a 30 plex.  

xxx

We have two opportunities for investment:

1. Invest direct into the 30 plex.  Once built, initial investment is returned  + keep ownership of the property.  Two year expected time horizon for completion.  
2. Joint venture on 4 lots that are zoned medium/high density.  Down payment + mortgage qualifying required.  Either we sell off to future developers or we develop ourselves.  

We can only accept investments from accredited investors or friends/family/business associates.  

Message back for more details.  



The Speed of Money

 

I sat in front of an excel for 3 months modelling out the financials of constructing a condo building to keep as a rental.

I started with a blank excel. 

At the end it integrated:

1. Cost of the building
2. Mortgage to build it
3. Mortgage to keep it
4. Cash flow analysis of keeping it
5. Investor returns

What was interesting was the speed of money for investors.

Example:

For a $10,000,000 project, investment would be $2,500,000 up front. 

At the end the project it could be worth $14,000,000.  

You then refinance and get a new mortgage for $10,000,000. 

The $2,500,000 is returned to investors and the ownership is maintained.  

The key is keeping the property and getting all your money out fast as possible.

Why?  So you can re-invest into another building again and again.  

If you have a 2.5 year cycle per building, over a decade the same dollars can be invested 4 times. 

I never thought of the speed of money until I was putting this excel and performa together. 

It should be part of your calculation for any investment you make.  



Robert Klein Newsletter - August 2019/Edition 87

Robert Klein - Mortgage Broker

robert@robertkleinmortgagegroup.com
778 896 6732
http://www.robertkleinmortgagegroup.com/

Robert - Facebook Robert - Twitter Robert - Linkedin

Foreclosures

 

July 2019 Abbotsford Attached
July 2019 Abbotsford Detached
July 2019 Burnaby Attached
July 2019 Burnaby Detached
July 2019 Chilliwack Attached
July 2019 Chilliwack Detached
July 2019 Commercial
July 2019 Coquitlam Attached
July 2019 Coquitlam Detached
July 2019 Land
July 2019 Langley Attached
July 2019 Langley Detached
July 2019 Maple Ridge Attached
July 2019 Maple Ridge Detached
July 2019 Mission Detached
July 2019 Multifamily
July 2019 New Westminster Attached
July 2019 New Westminster Detached
July 2019 North Vancouver Detached
July 2019 Pitt Meadows Detached
July 2019 Port Coquitlam Attached
July 2019 Port Coquitlam Detached
July 2019 Richmond Attached
July 2019 Richmond Detached
July 2019 Squamish Detached
July 2019 Surrey Attached
July 2019 Surrey Detached
July 2019 Vancouver Attached
July 2019 Vancouver Detached
July 2019 West Vancouver Attached
July 2019 West Vancouver Detached

Above is a list of foreclosures in the Lower Mainland.



6% Cap Commercial Properties

 

This is the sweet spot with commercial financing.  

It's the type of financing that the bank will provide 75% loan to value based on the property alone. 

Your personal income, corporate business income, number of properties you own, nor GDS/TDS ratios do not apply. 

It's the one type of property that as long as you have down payment, the banks will allow you as many as you want.  

Here is an example:2740 Dundas Road, Shawnigan Lake, BC 

Here is a good place to learn the math.  Second half is on commercial:

 https://www.youtube.com/watch?v=GpD5YvucKDA&t=3s



Nostalgic/Sentimental Vancouver (Pictures)

 

Awesome group.  People are posting their own pictures of Vancouver and explaining them. 

https://www.facebook.com/groups/128486813979056/?fref=nf



Looking Super Cool With Our Sunglasses

 

We are in Chemainus having breakfast at the Owl Nest Bakery and Bistro.  If you have never been to Chemnaius on Vancouver Island, it's a cool place to check out.  



Fun in the Sun

 

We picked up an inflatable pool for $40 bucks.  Best $40 bucks spent this year!

Most toys we buy have a shelf life of 24 hours. 

I'm surprised how much Sarah loves the pool considering she is only 17 months old.  



Is Your House Not Selling - Consider Rent To Own

 

Rent to own video

If your property is not selling in this market or you are not getting the price you want, structuring rent to own may be the way to go. 

I attached a video explaining what it is.  I did not watch it.  Found a video with 96% likes. 

If you decide to go down this path, do not do it by yourself.  I have a friend that you can pay to set up, including finding the tenant buyer.