Today on the FI Garage The Mechanic and The Accountant have a beer and get to speak with Kevin & Jeannine, who use their RRSP’s to do second mortgage lending and consistently achieve +10% returns on their cash!
Introduction
Mortgage Lending
- The RRSP Secret (2:10)
- Kevin & Jeannine Background (2:30)
- What is an arms-length mortgage (4:40)
- How the loan is secured (6:00)
- What accounts are eligible (8:10)
- Rate of return on the loans (9:10)
- Security on the loan (10:10)
- What you need to evaluate on each deal (12:15)
- Why lending instead of investing directly in real estate yourself (14:30)
- Minimum loan amounts (15:30)
- Term (16:00)
- Who are you loaning to? (16:30)
- How has this changed your path to Financial Independence (19:30)
- Doing loans outside of registered accounts (23:00)
- Example of how mortgages can be funded from multiple places (23:50)
- What Canadian banks will allow you to do this (25:15)
- Fees related to loans (25:50)
- How long does it take to find a deal (33:35)
- How often does your broker send you deals? (35:30)
- Have you had to deal with and loan defaults? (36:55)
- Beer #2 – Big Surf Beer Co (45:00)
- We fire The Economist (46:30)
- What are the provincial differences with regard to foreclosure? (47:30)
- What are the steps in the lending process? (50:00)
- Would you sell index funds to start mortgage lending? (1:02:00)
- REIN – Real Estate Investment network