Become the Bank, Invest in Mortgages
with special Guest : Lou Perrotta, CPMB, Mortgage Broker, Private Lender
*Former director at IMBA (Independent Mortgage Brokers Association of Ontario).
*President at Domus Financial Corporation
Wednesday, June 17, 2015
@6:30 pm-10:00 pm
Cash Bar @ Baka Gallery Cafe, Bloor West Village (2256 Bloor St West, above the Bell Store) – FREE admission
It‘s tangible, it’s solid, it‘s beautiful. It’s artistic, from my standpoint, and I just love real estate. Donald Trump
Investing in Private Mortgages
- Private Lending / Money Lending
- Become the bank for higher returns on your investment
- Give a First or Second Mortgage to a property owner
You’ve seen how volatile the stock market can be, remember the crash of 2007? Do you want your future to be controlled by events that take place on the other side of the globe? Do you think your Stock Broker has yours or his best interests in mind? Is the park and pray investment method you have been using to grow your financial wealth working? It’s time to consider alternatives…like Private Lending.
The most secure and durable investments are in real estate property. Though real estate prices fluctuate from time to time, over the long-term, real estate property appreciates in value. The security for a mortgage is the real estate property itself, making mortgages a good place to invest.
Investing in private mortgages provides a regular income stream, tangible security and a real return to the investor that is superior to bank deposits, GICs and bonds. They are an eligible RRSP investment that is tax sheltered, and you can invest the interest over and over!
Here are some advantages of investing in private mortgages:
- Very low administrative costs: No Cost to You – The borrower is required to pay the costs to have the mortgage registered against title to their property. The investor simply sits back and goes about cashing the monthly payment without incurring any further cost.
- Cash-flow for the lender/investor: Monthly Income – A mortgage will generate cash each and every month. The amount of the monthly payment will depend on the size of the mortgage, the interest rate and amortization period.
- Protected Capital (secured by the underlying physical asset/property)- There is low risk associated with mortgage investments; they are secured by the real estate property if the borrower is unable to make payments.
- Flexibility – one to five year terms
- LIRA, RRSP or TSFA eligible
Money Lending can be a great investment, as there is security with the equity on real property and the property can be used to help pay off the mortgage if the borrower reneges. The lender is fully covered by the legal documents signed at the time of the mortgage, ensuring that the investment, as well as a profit, is collected.
First and Second Private mortgages allow investors to participate in the same lending space as the big banks, while benefiting from far better returns on their money than what the banks would traditionally offer through their investment vehicles.
6:30pm Doors Open ~ Networking & Mingling at the bar
7:15pm Laure Ampilhac, Mortgage Agent & Certified Wealth Management Advisor
7:20pm Lou Perrotta, CPMB, Mortgage Broker, Private Lender
Photo Credits: Mauricio Jimenez 647.688.5814 MAGIC VISION Photography
Voted – Top PHOTOGRAPHY STUDIO in Toronto ( Top Choice Awards – 2013) Visit us at www.magicvision.ca
7:15pm Laure Ampilhac
After working for 15 years in corporate sales and business development in France and Canada, Laure quit a comfortable job in the 2009 recession to follow her own entrepreneurial path.
Robert Kiyosaki’s Rich Dad Training led her to a brand new career in Real Estate Investing, while creating multiple sources of active and passive income. She is a real estate entrepreneur, a landlady, a property manager, a mortgage agent and now a Certified Wealth Management Advisor. She helps home-owners refinance to take out equity and acquire more properties. She also helps investors maximize their RSP with real estate investments.
Her company is called: “Retire Early With Real Estate”.
Mortgage Agent & Certified Wealth Management Advisor
✆ (416) 358-9686 ✆ (877) 764-9492
Mortgage Alliance Lic# 10530
7:20pm Guest Speaker: Lou Perrotta, CPMB, Mortgage Broker, Private Lender
*Former director at IMBA (Independent Mortgage Brokers Association of Ontario).
*President at Domus Financial Corporation
Lou has been assisting borrowers in financing real estate and investors in investing in mortgages since 1977 when he started working as a personal finance associate with a consumer credit company. Lou’s career advanced in the 1970’s and early 1980’s in various positions, which progressively carried more responsibility, with a mortgage company and real estate developer. Lou founded Domus Financial Corporation in 1992.
Lou’s experience, knowledge and industry relationships enable him to lead the Domus team that delivers practical, cost-effective, mortgage financing solutions for borrowers as well as attractive yields for investors, whether for residential or commercial properties. The members of Domus’ team share Lou’s belief that the company’s clients and partners deserve and must receive respect, integrity in dealings, and superior levels of service from all team members.
Lou was conferred with the Certified Professional Mortgage Broker (CPMB) designation in January 2007 and was awarded the Broker Of The Year award in Canada in April 2010, as well as the Shayam Kaushal President’s Award in April 2015.
Lou is a Member of the Independent Mortgage Brokers Association of Ontario (IMBA), having served as a Director of the Association from May 2001 to April 2015, and as IMBA’s President from May 2003 to April 2004. Lou has also served as IMBA’s Vice-President, Secretary and Treasurer throughout the years, as well as Chair of several committees.
Lou’s Licence Number as issued by the Financial Services Commission of Ontario is M08005042.
1100 Burloak Drive, Suite 300
Burlington, Ontario; L7L 6B2
8:45pm Qadira C. Jackson, Real Estate Lawyer: All your questions answered
Qadira C. Jackson
LEXON LAW Professional Corporation
LAWYERS & NOTARIES PUBLIC
1020 Matheson Blvd. East, Unit 10
Mississauga, Ontario L4W 4J9
Phone: 905 277-LAWS (5297)
Fax: 905 785-6258
PS: Admission is on us. FREE event. Bring lots of business cards and good vibes!
Laure Ampilhac | Mortgage Agent
The Nasser Yaltaghian Team, Top 1% of Mortgage Brokers Nationally
Mortgage Alliance Lic# 10530 #200, 2005 Sheppard Ave. E. Toronto, ON M2J 5B4
Natalia O. Popovich | Nat & Home
Todor Yordanov | Real Estate Investment Club
Monthly Educational Meetings: Real Estate Investments Club @ Center for Social Innovation CSI: 215 Spadina Ave., Toronto 416-902-9707 firstname.lastname@example.org
Canadian Real Estate Wealth Magazine
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The promo codes are: 6DEGREES1 (1 year subscription for $65, original price: $72)
6DEGREES2 (2 year subscription for $110, original price: $119). These prices are tax inclusive.
[ Connecting Real Estate Investors and Industry Professionals in an intimate & warm atmosphere ] Social Event gathering Real Estate Professionals and Investors Bring your business cards.
ABOUT SIX DEGREES REAL ESTATE INVESTORS MIXER
HOSTED NETWORKING EVENT
Laure will be there to connect you with the partner, lender, real estate professional that you have been looking for your project, real estate transaction or investment. Come to me during the event and we will introduce you to the right person! See you there.
THE BENEFITS OF INVESTING IN THE REAL ESTATE ASSET CLASS:
#1. Cash Flow
A big advantage real estate has over other investments, is that it can produce cash flow on a monthly basis. Positive cash flow is derived from the revenue collected in the form of rent and laundry income minus expenditures required to pay for and operate the building. The cash generated by a real estate investment will always be a much larger percentage cash-on-cash return than any other investment. The reason for this is leverage.
Leverage is the ultimate power of investing, and the fact is that there is no investment where the application of this tool is more powerful than real estate. In real estate the leverage is based on the asset itself, and even the notoriously conservative banks will loan up to 75-80 percent and sometimes higher of the total asset value. Banks are comfortable lending large sums of money for the purchase of real estate because they know it is one of the safest and most profitable investments available. Also when you leverage an investment, you reap the benefits of appreciation on the total asset value, while only having a small percentage of your own money in the deal.
Real estate generally is a long term investment, and its benefits are best realized over the long term. It takes time for real estate to appreciate in value; however, while the property is appreciating the residents are paying down the mortgage. On top of this the rental income grows on a percentage annual basis.
The average compounded annual increase in real estate nationally has been 5% per year for the last 25 plus years, since 1980. Depending on the real estate cycle at any given time, the geographic location and type of property, the percentage annual increase could be substantially higher of course. Residential real estate appreciates more than the annual rate of inflation over time.
#4. Hedge Against Inflation
Many people feel that the commonsense thing to do is to take your money and put it into a savings bond or bank account that yields 2 to 3 percent per year. The main argument for this type of investing is that it is “safer” than real estate or other types of investments. The problem with this strategy is that you do not make any money, due to inflation.
Inflation is the price we pay for goods measured against a standard of ability to purchase those goods. The long term average of inflation has been nearly 3.5 percent since 1913, the year it began being tracked. That means that putting your money into a bank investment or account that yields only 2 to 3 percent, earns you no purchasing power in the future. You are actually losing wealth because inflation is higher than your returns. The gain in interest is wiped out by the rising cost of living. You are not becoming wealthier, you are becoming poorer because the cost of goods is growing faster than the value of your money.
The beauty of real estate is that it is a tangible asset-a good. Meaning it will generally rise either at the rate of inflation or much higher. Historically real estate has risen at 5 percent per year -a full 2 to 3 percent higher than inflation. And that is just appreciation. That does not take into account the cash flow generated, nor the tax advantages such as depreciation, refinance, and tax deductible mortgage interest.
Depreciation is an income tax deduction that allows a taxpayer to recover the cost of wear and tear, deterioration, or obsolescence on an annual basis. For real estate, it is a nonoperational expense that can be used to your advantage come tax time.
Another advantage of real estate over other investments is the ability to withdraw cash through a refinance of the property. This, too, is a tax shelter. When you refinance a property you are restructuring your existing mortgage debt based on the added value of the property. Refinancing also allows for investors to pull their initial investment out, while still continuing to have a vested interest in the property, creating a cash-on-cash return of infinite because the capital investment is zero!
#7. Asset Protection
There are a number of ways to legally protect a real estate investment that cannot be utilized by other investments like stocks and bonds. If a stock or bond company has a bad year, and suffers losses, the individual investor is simply out of luck. Real estate is one of the few investments that can be insured and protected from damage caused for whatever reason. By having the proper insurance coverage, you are able to claim losses for the actual value of the asset before the loss, and during the loss.
Another distinct legal advantage of real estate is that it can be placed into a corporation or family trust that allow you to protect your personal wealth by individualizing and protecting your assets in an event of a lawsuit. There are also distinct tax advantages.
#8. Physical Asset
Real estate is a physical asset, that cannot be traded by a click of a button by an online brokerage. You can physically walk the grounds of the property, and inspect the building. As such, it’s not subject to the volatility of other investments like stocks, where change can happen fast. You are not at the mercy of the company’s public relations department, waiting to hear from them. Meaning, if the company announces poor earnings for a quarter, the stock will drop suddenly with little warning. Your only option is the react, but not before you’ve lost a substantial sum.
Real estate is different. While it still has its ups and downs, for the most part real estate takes a more tortoise like approach: slow and steady wins the race. By paying attention, and knowing what to look for, we can see the trends that lead to changes in the market, well before they happen. Allowing us to formulate an investment plan on how to change operations or to sell. This in turn maximizes our return on investment or cash-on-cash return.