Interview #6 – How to get +10% returns in your RRSP.

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

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