Über die Autorin bzw. den Autor

Peter Kinch is the founder of The Peter Kinch Mortgage Team and the PK-Approved Dominion Lending Centres' network of brokers across Canada. He provides mortgage education on financing and real estate portfolio development through seminars, workshops, and presentations. Throughout his career, Kinch has worked almost exclusively with real estate investors. Through his expertise in this market, Kinch has become a lobbyist for the investor community with many chartered banks and trust companies. He was recognized as the #1 volume-producing mortgage broker in Canada for 2008 by CMP Magazine.
Peter is the author of The Mortgage Minute and is currently a featured mortgage guest on CTV News Channel, a frequent guest on various radio and television programs throughout the country, and a regular contributor to the News1130 Business Report with Russell Byth, heard on Rogers Radio in Vancouver, BC.
Kinch writes on matters relating to real estate financing for magazines and periodicals and is co-author of the #1 best-seller 97 Tips for Canadian Real Estate Investors. He is a highly sought-after speaker for real estate investment groups across the country.
For more information, please visit www.peterkinch.com

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Peter Kinch's Investors Succeed Because They Plan for Success

Peter Kinch's focus is on opening financing doors for real estate investors, and he is so successful at it that in 2008 he was named Canada's Top Mortgage Broker. His track record and reputation with banks is second to none. In other words, he knows exactly of what he speaks.

Peter's depth of knowledge of how the industry works has allowed him to consistently work magic for both large and small investors across the country. Where once investors were declined by lenders, Peter and his team show readers how to convince lenders to say "yes" to their plans. There are no tricks here, just the vital information you need to convince banks that your investment plans are sound. Investors who follow Peter's advice know that successful real estate investing happens by playing fully above board.

In the pages of The Canadian Real Estate Action Plan you will witness financing myths debunked, have investment lending made clear and, best of all, learn the exact steps to getting the financing you need to build your strong cash-flowing portfolio. Do not invest in another piece of real estate or approach a bank or mortgage broker without first reading this book.

Go for "yes" by learning from Canada's expert in real estate financing.
―Don R. Campbell, best-selling author of Real Estate Investing in Canada 2.0

As president of Canada's largest mortgage network, I have the sincere privilege of working with many of Canada's top experts in real estate investing. Peter Kinch has been leading this elite field for several years and continues to share his award-winning formulas in this very insightful book.
―Gary Mauris, President, Dominion Lending Centres

Aus dem Klappentext

Real estate, like any other investment, is a means to an end: that end might be a secondary source of income, a strategic plan for your retirement, or a way to attain complete financial independence. Whatever your goal is, you've decided that real estate is a tool you want to use. So how do you use it? How do you make it work for you and avoid getting burned in the market? And how much of it do you need to fulfill your ambitions?

Peter Kinch is one of Canada's top mortgage brokers and has helped thousands of investors clarify their dreams and turn them into reality. In The Canadian Real Estate Action Plan, Peter walks you through one of his investor workshops, helping you develop not just a plan, but your plan, including:

• Defining your end goal, and how much real estate you need to achieve it
• Determining the kinds of investments that are right for you
• Identifying obstacles to your success, and overcoming them
• Discovering financing options and solutions, including recent changes that affect investors

New investors will get the thorough background information they need to get started, while more experienced investors will benefit from exploring alternative options and lesser-known strategies. Both will see how long-term thinking is the key to their portfolio's continued profitability.

The best way to achieve your goals is to plan for your success, and there's no better tool to help you do just that than The Canadian Real Estate Action Plan.

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The Canadian Real Estate Action Plan

John Wiley & Sons

Chapter One

"Oh no, no. I was just wondering if you could help me find my way."

"Well that depends on where you want to get to."

"Oh, it really doesn't matter, as long as ..."

"Then it really doesn't matter which way you go." —Conversation between Alice and the Cheshire Cat, Lewis Carroll's Alice in Wonderland

BRIAN: Can you help me get financing for my next real estate investment?

PETER: Well, what is your goal over the next five years?

BRIAN: I want to buy real estate.

PETER: Why?

BRIAN: So that I can make more money.

PETER: What is your definition of "more money"?

BRIAN: Well, I'm not exactly sure....

Brian was quite surprised when he first walked into my office asking for a mortgage and I started by asking him about where he wanted to be in five years. Much like Alice, he wasn't clear on the direction he was heading. The truth of the matter is, for many Canadians, it is not uncommon for them not to know where they want to head either financially or otherwise. People know that buying real estate is a good thing to do—after all, that's what all the financial experts say. We've all heard the quote "The greatest number of millionaires have been created through real estate." The fact that you are reading this book indicates you believe real estate would be a good addition to your financial portfolio. The question isn't "Should you buy real estate?" but rather the question is, "Why should you buy real estate?" The more I could learn from Brian about his goals, the more I could help him achieve them. There is a big difference between simply buying one rental property and building a rental portfolio.

During a television interview in the summer of 2009, the question posed to me was whether or not it was a good time to buy a cottage or recreational property. I found this question quite interesting. When I probed a bit further, the interviewer suggested that many Canadians have become disenchanted with stock portfolios and were turning to real estate as a safer, more secure investment. The thinking was that since we were in the middle of a recession and prices had fallen off a bit, now might be a good time to purchase a cottage in the lake country or a cabin at the ski hill. That was when I realized something that I've taken for granted for many years—many Canadians don't realize that real estate "investing" can be much more than simply securing a recreational property for your family's future. In fact, the term "real estate investment" conjures up different impressions and definitions for various people. This was also when I realized just how valuable "goal-oriented" planning is before taking your hard-earned money and throwing it against the proverbial wall, hoping that this investment would work out better than the last one. Exiting the stock market to enter the real estate market can produce equally poor results if you do not have a plan. This was the reason I needed to ask Brian some questions before I simply processed a mortgage for him. The first thing I asked him was, "Why are you investing in the first place? What results do you want or need from your investment?"

It's important to note that I wasn't attempting to turn Brian into the next Donald Trump and he didn't need to show me a plan to conquer world hunger. In fact, it didn't matter how aggressive or conservative his goals were, but what was crucial was that he had a clear goal that his real estate investments needed to produce for him.

Brian's answers helped me to clarify what type of investor he was and, therefore, how I could best structure his real estate portfolio. Having worked with investors for over a decade, I've discovered that there are three basic types of real estate investors:

1. The "Mom and Pop" investor who likes to buy one or two rental properties as a way of diversifying their financial portfolio and supplementing their retirement pension. Also included in this category would be the couple who want to buy a cabin on the lake or a recreational property that will provide an immediate lifestyle benefit for their family, as well as appreciating over the long-term, adding to their net worth and, ultimately, passing it on to future generations. These individuals see real estate as an important, but complementary, part of an overall financial and retirement strategy.

2. The second group is made up of those individuals who use real estate investment as their primary vehicle for wealth creation and a major component of their retirement plans. These individuals want to increase their net worth, move towards financial independence and create wealth that can be passed on to future generations. They are not full-time real estate investors, but focus on creating sufficient cash flow from their investments over the years to potentially replace one of their incomes.

3. The third group comprises those individuals who not only see real estate as their primary vehicle for wealth creation, but also as their full-time job. These individuals want to build their real estate portfolio to the point where they will be able to quit their current employment and devote their energies full time towards developing a large real estate portfolio. The majority of the individuals in this group not only see real estate as a way to create financial independence, but also as a way to achieve larger goals, some of which are charitable in nature and go beyond just a larger house or a nicer car. These individuals will need to build a large portfolio with a significant number of properties that include both the potential for increasing their net worth and developing a significant monthly cash flow.

It really doesn't matter which of these three groups you fall into—you may, in fact, see yourself evolving from one group into another. The point is, regardless of which category you fit into, it is critically important that you are honest with yourself about what you require the real estate investment to produce for you. For example, if you see yourself in either category two or three above, then the answer to my television question would be no—this is not a good time to buy the cottage on the lake. That type of real estate investment would not be the best use of your investment dollars based on your goals. If, on the other hand, you fit into category one, then now may very well be a great time to buy that cottage/family investment property. The key is understanding that there is no right or wrong answer—it's simply a matter of determining what role real estate can play in order for you to achieve your goals. Not sure? Don't worry—that's the whole purpose of this book.

This book will walk you through a process I have developed over the years called the Real Estate Action Plan. It will not only help you to determine which category of real estate investment you are in, but will also help you clarify why you are buying real estate, what results you need to achieve from your real estate investments and allow you to put together a three-phase action plan to achieve those results.

WHY YOU NEED A PLAN

Generating wealth through real estate is not about simply purchasing one piece of property then sitting back and relaxing. Creating wealth...