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

• Beer #1 – Sneaky Weasel by Balderdash Brewing (0:55)

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)
  • Canadian Western Trust
  • Olympia Trust
• 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