
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
Thanks for having us on. It was fun!
Looking forward to getting together again in the future.
It was great having you! We’ll have to get you back in the garage soon