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.  



Robert Klein Newsletter - July 2019/Edition 86

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.



The Bank of Canada Qualifying Rate Decreases (5.34% ---> 5.19%)

 

The Bank of Canada qualifying rate (benchmark rate) will be decreasing on Monday from 5.34% to 5.19%.

If you ever wanted to upgrade from a 500 square foot condo to a 505 square foot condo, now is the time to do it.



How to Qualify for Millions Worth of Mortgages in Canada for Residential and Commercial

 

How To Qualify for Millions Worth Of Mortgages in Canada

I put this video up again as the response has been over the the top.  



Aging App

 

If mortgages or real estate investing does not work out, I can always become a Sea Captain when I get older. 



Awesome Family Pic

 

This was taken waiting for the ferry.  Sarah passed out covered in chocolate.  Little Rob with a mischievous smile.  Dandan in the back seat taking care of everyone.  Myself, a professional chauffeur.



Secrets Of the Canadian Real Estate Cycle

 

This is a world class book.

If you are wondering what's happening with the real estate market, this will explain it.  

If you mastered this book, you will be able to tell the future with real estate and position yourself accordingly.  

It's written by Don Campbell, founder of Real Estate Investment Network (REIN).  

If you are a past client, message me and I will send you a copy.  

If you want to buy direct: https://amzn.to/2JRLyHk



Robert Klein Newsletter - June 2019/Edition 85

Robert Klein - Mortgage Broker

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

Robert - Facebook Robert - Twitter Robert - Linkedin

How to Qualify for Millions Worth of Mortgages in Canada for Residential and Commercial

 

How To Qualify for Millions Worth Of Mortgages in Canada

The response I've had on this video has gone beyond my expectations.  If you are an investor or are incorporated, this is a much watch.  

It will change your total perspective on real estate. 



Foreclosures

 

June 2019 Abbotsford Attached
June 2019 Abbotsford Detached
June 2019 Burnaby Attached
June 2019 Burnaby Detached
June 2019 Chilliwack Attached
June 2019 Chilliwack Detached
June 2019 Commercial
June 2019 Coquitlam Attached
June 2019 Coquitlam Detached
June 2019 Hope Detached
June 2019 Land
June 2019 Langley Attached
June 2019 Langley Detached
June 2019 Maple Ridge Attached
June 2019 Maple Ridge Detached
June 2019 Mission Detached
June 2019 Multi-Family
June 2019 New Westminster Attached
June 2019 North Vancouver Detached
June 2019 Pitt Meadows Detached
June 2019 Port Coquitlam Attached
June 2019 Port Coquitlam Detached
June 2019 Richmond Attached
June 2019 Richmond Detached
June 2019 Squamish Attached
June 2019 Surrey Attached
June 2019 Surrey Detached
June 2019 Vancouver Attached
June 2019 Vancouver Detached
June 2019 West Vancouver Detached
June 2019 Whistler Attached



How do You Value a Property

 

Real Estate Valuation Methods

I found this very interesting. Never thought of it like this. If you are into real estate, watch this. 



Sarah vs Big Rob

 

We look alike. Supermodels. 



Little Rob the Pirate

 

We went to Pirate days in Ladysmith.  They had a mini pirate ship come to the marina with 2 Pirates of the Caribbean characters.  Fun had by all. https://www.lmsmarina.ca/kids-pirate-day/



*Warning* Buying Property In the Future

 

Scenario:
You are going to buy a property in October.  Your down payment will come from another property you already own.

This is hard:
In October, you apply for two new mortgages at the same time, one for the purchase and one to get access to the equity for your down payment. 

This is easy: 
In June, you apply for a mortgage to set up your down payment.  In October you apply for a mortgage for the new purchase.  

Why?
1. Qualifying for 2 mortgages at benchmark rate at the same time is harder than qualifying for 1 mortgage at benchmark rate.

2. If you are moving from 1 principal residence to another, then 1 of them will be considered a rental.  This makes rates higher.  

Result:
Set up your finances way before you get into a contract to purchase a new property. 



Robert Klein Newsletter - May 2019/Edition 84

Robert Klein - Mortgage Broker

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

Robert - Facebook Robert - Twitter Robert - Linkedin

May 2019 Foreclosures

 

May 2019 Abbotsford Foreclosure Attached
May 2019 Burnaby Foreclosure Detached
May 2019 Chilliwack Foreclosure Detached
May 2019 Chilliwack Foreclosure Attached
May 2019 Burnaby Foreclosure Attached
May 2019 Langley Foreclosure Attached
May 2019 New Westminister Foreclosure Attached
May 2019 Langley Foreclosure Detached
May 2019 New Westminister Foreclosure Detached
May 2019 Mission Foreclosure Detached
May 2019 Richmond Foreclosure Attached
May 2019 New Westminister Foreclosure Attached
May 2019 Pitt Maple Foreclosure Attached
May 2019 North Vancouver Foreclosure Detached
May 2019 Surrey Foreclosure Detached
May 2019 Richmond Foreclosure Detached
May 2019 Surrey Foreclosure Attached
May 2019 New Westminister Foreclosure Detached
May 2019 Tri Cities Foreclosure Detached
May 2019 Tri Cities Foreclosure Attached

No surprise that there are more foreclosures this month.



Rentals: 700k 1 Bedroom Condo vs $1.2 Million Dollar Four Plex

 

At the moment I'm putting together a 45 minute long webinar discussing how to qualify for millions worth of residential and commercial mortgages. 

One of the case examples I explored was a Vancouver Condo vs a Fraser Valley fourplex.

It turned out that 1 bedroom condo would eat up income requirements by a factor of 3.18 vs a fourplex.

What does this mean.

If you borrowed $1 million in condo financing, 3.18 million could of been borrowed if you were buying a fourplex.  This is an income qualification equation and not down payment.  You would still need 25% down for both scenarios. 

Want early access to my webinar, message back and I'll put you on the list.  



Goodman Reports - Real Estate Investors - Download and Join

 

If you are a real estate investor, these reports are worth reading.  You will also want to sign up to their newsletter. 

https://goodmanreport.com/reports/



Let's Get This Party Started!

 

#blessed



Hugging it Out

 

Cute level 100.



Your Lender Does Not Have to Renew Your Mortgage

 

*Written by another mortgage broker (not sure who)

When your mortgage comes up for renewal, your current lender is not obligated to renew your mortgage. The reasons could range from something you have done, like not  having made your payments on time, to the lender has decided they want their money back.

I have seen home owners in precarious positions because they no longer qualify for the mortgage and the lender has decided that they don't want to renew because they are pulling out of the market.

In cases like this, we have had to take the mortgage to a private lender until the borrower qualifies again, this has been in situations where the home owner has lost their job around mortgage renewal time.

For reasons like this, I like to talk with home owners starting about 6 months before their mortgage comes up for renewal and we can review whether there is a reason that the mortgage might not be renewed. It also gives us the option of playing one lender off against another lender when there are no "non-renewal" issues.

Feel free to give me a call to talk about any renewal related questions.



Robert Klein Newsletter - April 2019/Edition 83

Robert Klein - Mortgage Broker

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

Robert - Facebook Robert - Twitter Robert - Linkedin

April 2019 Foreclosures

 

APRIL 2019 Abbotsford Foreclosure Attached
APRIL 2019 Burnaby Foreclosure Attached
APRIL 2019 Burnaby Foreclosure Detached
APRIL 2019 Langley Foreclosure Attached
APRIL 2019 Chilliwack Foreclosure Detached
APRIL 2019 Langley Foreclosure Detached
APRIL 2019 Mission Foreclosure Detached
APRIL 2019 New Westminster Foreclosure Detached
APRIL 2019 North Vancouver Foreclosure Detached
APRIL 2019 New Westminster Foreclosure Attached
APRIL 2019 Surrey Foreclosure Attached
APRIL 2019 Surrey Foreclosure Detached
APRIL 2019 West Vancouver Foreclosure Attached
APRIL 2019 Tri City Foreclosure Attached
APRIL 2019 Tri City Foreclosure Detached
APRIL 2019 Vancouver Foreclosure Detached
APRIL 2019 West Vancouver Foreclosure Detached
APRIL 2019 Vancouver Foreclosure Attached



Operating Companies Purchasing Commercial Property

 

Three years ago, I was exposed to this type of structure.  Today, it's now become a major part of my business.  

If you run your business out of a corporation, that corporation can qualify for financing on its own.  

To give you an idea.  

I have a client purchasing a $4.4 million dollar commercial building.  The building on its own merits, only qualifies for $1.3 million worth of financing.  This means if you are buying it as a rental only, you have to put $3.1 million down.   Since the client is putting their business into it, the qualification goes from $1.3 million to $3.8 million due to corporate financials.

That's 15% down vs 70% down.  

There are three types of clients for this structure:

1. A company that is already paying rent who wants to own the building instead.

2. A company that is not paying rent, but wants to own a building and put their business into it.  

3. A company that is not paying rent and wants to buy commercial investment property.  

Steps involved:

1. Structure corp financials to maximize lending

2. Purchase property that fits your corp financials

Notice how it's not, let's buy property x, then go to the bank and see if we can be approved.  

Reverse engineer everything to maximize the result.  

Got a corporation and want to know what it can do, feel free to message. 



Venezuela Collapse Explained

 

Venezuela Collapse Explained

Ever wonder what is going on with Venezuela? 

Excellent explanation in this video.  



We Have A 1 Year Old!

 

Our little Gummy Bear Princess is now 1 years old.  

Her favorite words: Mama, Dada, Nei Nei (cute way of saying milk in Chinese)

Favorite thing to do: Dancing to 70's and 80's music.  

Super Power Move: Her Smile



And a 4 Year Old!

 

Happy Birthday little Rob!

This year we had Teen Age Mutant Ninja Turtle theme. 

He was super excited it was his birthday.  He knew the secret formula

Birthday = Presents



Lock into Fixed Rate? - 5 Year Bond Rate Graph

 

If you did not like the run up on rates over the last year, it might be a good time to lock in now. 

Since November, bond rates dropped 1.0%.  Over the last month they went up .25%. 

Overall they are .75% below their highs.  

If you wanted to get into fix and were waiting for it to go lower, might be a good time to move on it. 

The key to doing this is understanding how your bank structures penalties.  Many banks have a bad penalty structure and some are good. 

Email back if you want to discuss. 



Robert Klein Newsletter - March 2019/Edition 82

Robert Klein - Mortgage Broker

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

Robert - Facebook Robert - Twitter Robert - Linkedin

Building an 18 Unit Condo or 24 Unit Condo Building

 

Over the last 2 months myself and a partner tied down 5 lots for condo developments. 

Our first project is a small 18 to 24 unit condo build on a 7499 square foot lot.  

Our objective is to build it, then rent them all out with CHMC financing.  

Stats:

4 stories high

1 level of above grade concrete parking garage on the ground floor

3 levels of wood frame Apartment Suites above, which is about 6300 sq ft per floor.

1 elevator.

The unit mix we’re targeting is:

15 – 950 sq ft 2 bedroom 2 bathroom units

9 – 310 sq ft micro units

If the above does work with the city, then at the minimum we are looking at

18 – 950 sq ft 2 bedroom 2 bathroom units

If you are wondering why we would keep them versus selling them off as condos... there is 3 x more money in keeping them over 10 years, then there is selling them off as condo's.

Why?

Property Value = Net Operating Income / Capitalization Rate

This is a magical formula.



How to Lose $1.1 Million Dollar's Worth of Mortgage Financing by Paying Out $80,000 in Dividends

 

How to lose $1.1 million dollar worth of mortgage financing

If you are incorporated or self employed, you should watch. 



Foreclosures

 

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



We Missed The Sun

 

We are thankful the sun is back.  I will never complain about heat waves again. 



Sarah's New Hang Out

 

We ended up moving everything that is plastic to the bottom drawers and moving everything non plastic to the higher drawers.  



February 2019 Stats

 

2019-02-West-Vancouver
2019-02-Vancouver-West
2019-02-Sunshine-Coast
2019-02-Tsawwassen
2019-02-Vancouver-East
2019-02-Squamish
2019-02-Whistler
2019-02-Port-Coquitlam
2019-02-Port-Moody
2019-02-Richmond
2019-02-Ladner
2019-02-North-Vancouver
2019-02-Maple-Ridge
2019-02-Metro-Vancouver
2019-02-Burnaby-South
2019-02-Burnaby-North
2019-02-Pitt-Meadows
2019-02-Coquitlam (1)
2019-02-Burnaby-East
2019-02-New-Westminster
2019-02-Coquitlam
2019-02-Bowen-Island

Click above to Access Monthly Condo/Townhouse/Detached Home Statistics



Robert Klein Newsletter - February 2019/Edition 81

Robert Klein - Mortgage Broker

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

Robert - Facebook Robert - Twitter Robert - Linkedin

Foreclosures

 

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

Above is a list of foreclosures in the Lower Mainland.



January 2019 Stats

 

2019-01-Vancouver-West
2019-01-Vancouver-East
2019-01-Sunshine-Coast
2019-01-Whistler
2019-01-West-Vancouver
2019-01-Tsawwassen
2019-01-Squamish
2019-01-Richmond
2019-01-Port-Moody
2019-01-Port-Coquitlam
2019-01-North-Vancouver
2019-01-Maple-Ridge
2019-01-Ladner
2019-01-Burnaby-South
2019-01-Burnaby-North
2019-01-Coquitlam
2019-01-New-Westminster
2019-01-Burnaby-East
2019-01-Pitt-Meadows
2019-01-Metro-Vancouver

Click below to access January 2019 Housing Statistics



Refinance Low, Buy Low

 

Most people sell their small property and upgrade into a larger property.  When they do this, they are selling high and buying high or they are selling low and buying low.  

Since the market has dropped and it's become a seller's market, a better solution could be to refinance your current property, keep it, then purchase another at current market lows. 

For example, if you condo is worth $500k and you have a $200k mortgage on it, you could pull out $200k in equity.  This $200k in equity can then be used to purchase $1.0 million dollar home.  

Your not forced to sell your condo and you get to upgrade into a bigger home.

This also works for purchasing rentals. 



Snow Man!

 

Dandan mentioned she was going to build a snow man.  Next thing I know she had put together a 6.5 foot snow man from scratch.  



Hugging It Out

 

Can't go wrong when you hug it out!



100% Financing On Commercial Properties?

 

It's possible to get 100% financing on commercial properties if you have an operating company. ('sort of' possible if you are a sole proprietor too)

The key to 100% financing (0% down) is having a profitable operating company and keeping the profits inside the company versus paying out dividends/salary to yourself.

***There is an exact mathematical equation for what has to be kept inside the company and it's based around the financials of the property you are purchasing.

For Example:

At the moment a client of mine is looking at purchasing a 4000 square foot office space that they have been renting for 12 years. When they started renting, the property was worth $400,000. Today it's worth $2,000,000.

***The landlord kept more money then what the businesses kept over the last 12 years. Key word is "kept".

Approximate numbers:

1. $2,000,000 mortgage @ 4.5% @ 25 year amortization = $11,117/month

2. Bank require a 1.3 debt cover ratio, which means the total net incomes have to be $11,117 x 1.3 = $14,452/month.

3. The property has multiple office spaces that are rented @ $7500/month. They occupy 3 of the offices for themselves.

4. This means there is a monthly short fall of $14,452 - $7500 = $6972/month.

5. The operating companies between the 3 partners have a combined net income of $8000/month that is left inside the companies.

6. This $8,000/month can support the $6972/month shortfall.

Without the operating company, this property might only support a $1.2 million dollar mortgage on its own. With the operating companies we are looking at $2.0 million dollar loan.

If you are self-employed/incorporated, you should structure your company to buy commercial property vs renting commercial property. In the short-term it most likely will cost you more. 20 years from now, its most likely one of the best move you ever made.



Robert Klein Newsletter - January 2019/Edition 80

Robert Klein - Mortgage Broker

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

Robert - Facebook Robert - Twitter Robert - Linkedin

Are Rates Going to Increase?

 

Probably not.  Since November, the 5 year bond rate has decreased by .7%.  

The only problem is residential lenders have not reflected that in their own rates.  

Assuming rates remain in this range, we should see rates decrease accordingly over the next 2 months.

If last year rate increases put you on edge, it might be worth locking into a fixed rate in the next couple of months.  



Client Case Study #1 - Partners

 

I have a client who invested into 20 condo's between 4 partners and put the ownership into 1 holding company.

3 years later, 1 of the partners (my client), needs to access equity.  

In order to increase the mortgage, all 4 partners have to be involved in the mortgage qualification. 

This creates a big head ache.  

Better solution was for the group to own 5 condo's each under their own holding company.  



January 2019 Foreclosures

 

JAN 2019 Chilliwack Foreclosure Attached
JAN 2019 Burnaby Foreclosure Attached
JAN 2019 Langley Foreclosure Detached
JAN 2019 Burnaby Foreclosure Detached
JAN 2019 Coquitlam Foreclosure Attached
JAN 2019 Langley Foreclosure Attached
JAN 2019 Maple Ridge Foreclosure Detached
JAN 2019 Maple Ridge Foreclosure Attached
JAN 2019 North Vancouver Foreclosure Detached
JAN 2019 Pitt Meadows Foreclosure Detached
JAN 2019 Surrey Foreclosure Attached
JAN 2019 Richmond Foreclosure Detached
JAN 2019 Richmond Foreclosure Attached
JAN 2019 Surrey Foreclosure Detached
JAN 2019 Vancouver Foreclosure Detached
JAN 2019 Vancouver Foreclosure Attached
JAN 2019 White Rock Foreclosure Detached
JAN 2019 Vancouver West Foreclosure Attached
JAN 2019 Vancouver West Foreclosure Detached



Just Saying "Hi"

 

Also "Check out my teeth, I have 8 of them!"



I Hide Goodies, He Finds Goodies

 

I asked him "what are you doing".  

Little Rob replied, "looking for goodies".

I can't blame him, I did the same. 



Real Estate Stats - December 2018

 

2018-12-Whistler
2018-12-West-Vancouver
2018-12-Vancouver-West
2018-12-Vancouver-East
2018-12-Sunshine-Coast
2018-12-Tsawwassen
2018-12-Port-Moody
2018-12-Port-Coquitlam
2018-12-Richmond
2018-12-Squamish
2018-12-Pitt-Meadows
2018-12-New-Westminster
2018-12-Metro-Vancouver
2018-12-Ladner
2018-12-North-Vancouver
2018-12-Maple-Ridge
2018-12-Coquitlam
2018-12-Burnaby-South
2018-12-Burnaby-North
2018-12-Burnaby-East