Truly passive income is something we all tend to think about once we reach a certain level of semi-passive income, whether we're actively managing our own properties, or managing the manager - it's not passive, as much as we'd like it to be.
@@CanadianRealEstateChannel Maybe a good topic could be Private funds? You probably have the topic covered in your plethora of previous content, but maybe we could look at it from a different view, say, private LOC and lending that out at a higher interest rate and keeping the spread. 100% OPM? Quick brainstorm I guess.
They are different, but depending on how you operate your RTO there may not be a significant difference from an operations stand point but there is from a legal one With Bens model title/ownership officially changes.
I was hoping to hear something about Licensing, Legal requirements, Broker License etc needed to become a registered lender to homeowners vs a lender to Investors (non-owner-occupants / investment purposes). This would be a great follow-up discussion point. Here in the US we have some VERY strict laws against these things (Federal level). Also, never heard anything about potential Usury Laws, Rates, 1st vs 2nd position liens and how you'd enforce them accordingly. Great marketing though!!
Hi Matt! Question for you. How do you handle or can you do a video about tenant deposit interest? According to the landlord tenant act a landlord must pay each tenant interest on their deposits each year. Would love to hear your thoughts on this.
If you can always focus on providing value first, value you will always return to you. Ben's truly an inspiration and crushing it on a whole other level!
I was thinking about this model for a while,but wasn't to sure how to execute it. It would be more help he could go more in-depth,step by step. Thanks for this info!!!
I am very interested in this approach of becoming a lender, I am surprised that mortgage lenders permit that though? I am bit confused, does the bank permit you to lend on a property than you still have a mortgage on? Say I buy a house for 250k with a mortgage of 225k I can refinance at 350k. Instead of refinance I sell a mortgage to someone on the property at 350k. Then I pay my mortgage with the money from the other mortgage? Do they put a deposit down?
Doesn’t make sense you couldn’t pay the mortgage off with the passive cash flow. Maybe the OPM pays the mortgage of 225k then lends a mortgage of 350k to the buyer? Really would like to see the math to comprehend how it’s done.
how much did you need in capital before you can start loaning like this? seems like a great business but im not sure how i could loan 300k to someone to buy a house and still have enough to make another loan
So basically your doing land contracts / contract for deeds and wraps IF your truly doing notes and depending on the state the Only concern is the states foreclosure process. Good stuff. We’ve been doing the same. I typically do a lease with an option up front and when the customer shows that they can pay I’ll hold the note. Are you using a note servicing company ?
Ben is truly a inspiration! This is something I’ve always considered and definitely something I will definitely do. Just a question, what if I were to be a partner in a deal and make 8-12% interest on my money. Would it still be as passive as Bens business model ?
Have you guys done any work with First Nations? I am member of one. We have no taxes out here yet due to our treaty rights. But could there be an opportunity for us to network?
I personally haven’t, but if you are interested in networking I’d try local real estate meetups. There used to be regular ones in Windsor, Kitchener, london, etc. check Facebook and eventbrite.
The laws in your state must be different than here in CA...no private lender here will do the loan with the owner occupant...they will loan to you as the flipper but only because its a business purpose loan.
Return of capital and delayed return of appreciation are not passive income. The rate of return on mortgages is way too low for most high functioning investors.
Sounds great, Matt. We could do a london date and look at some of my student stuff. I actually just sent Mike a message about booking something for Carmen and Jordan’s most recent one. Huge project with a massive equity lift
I don't think this is applicable in the USA. Evictions are 30 days in many areas, but foreclosures can take 6 months minimum from what I've see. Sometimes several years. Please advise
But eventualy even this will need some kind of work, you wil need a team or some time in your office going thru paperwork and new clients once you grow large enough
Yes. He's buying them, renovating them, and renting them out at the highest market rate, then after building sufficient equity where it would make sense to either sell or refinance, he will sell to a Buyer willing to pay top dollar for Seller Financing- and lend out his equity to the Buyer in the form of a 2nd Charge mortgage registered on title. @adamjdmartin
Great video! I really want to learn more about real estate so I can diversify outside of the stock market in the future. Keep up the great work! I look forward to your future content.
Please do! There appears to be a lot more control involved and risk mitigation in real estate investing. When markets experience dips and lending gets tight, demand for rentals goes up. It's a win-win in REI no matter what cycle of the market you're in (and while the same can be said about trading, it seems to be a lot less predictable and stable).
What happens in a situation of a market correction/crash & the values plummet, so the landlord/owner decides not to pay the Mortgage and default cause they can’t afford to make the payments. Does the lender in that case power of sale the property?? And what if that 120k house example in this video is worth like 50k after a major correction (if it happens) and this situation takes place?? Please advise Matt!
Hey Matt, love your videos, I put them on anytime I’m driving I just listen and try to soak in as much information as possible. I’ve been going out looking at potential rental properties for about a year now but can’t seem to find anything nearly as good as the properties that are mentioned in these episodes in terms of cash flow or even value add. There seems to be a big gap here in Edmonton between house prices and rental rates. Wondering if you would have any input on a situation like that or potential strategies. Thanks in advance and thank you for the wealth of information you post here for all of us to benefit from!
While I appreciate his story and insights. This is far too complicated in both learning, work (had to purchase and rehab a house, find a tenant, etc etc) and execution for me to consider this "passive" . Honestly the flip and then investing the money in something that is then passive would be a lot easier it sounds. This does however seem like a nice way to diversify, but let's not lie to ourselves...this was legit work, and a lot of it.
Such an amazing strategy. So much nicer to be the bank than to be the Landlord. Just check out the Rosehart CBC exposed video to see why haha. Love this passive approach.
I would be curious to see one of these deals on paper. From the original purchase to the flip to creating the mortgage for the new buyer, what the interest rate is and what the mortgage terms are. Thanks
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So many inbox notifications I had to turn them off! Good work everyone for signing up!
Truly passive income is something we all tend to think about once we reach a certain level of semi-passive income, whether we're actively managing our own properties, or managing the manager - it's not passive, as much as we'd like it to be.
100% agree - there are levels to passive income
Let’s keep levelling up!
🔥🔥🔥
I just want top build my competence as an investor. I'm not too worried about passive income just yet.
Tenants.... nothing passive about them.
I have been watching the channel off and on for 2 months now. Appreciate all the help and knowledge.
That's great! Thank you for following :D
So happy to see another video with Ben. I clicked so fast when I saw the thumbnail
That's awesome! Thanks for the support! What should Ben and I discuss next?
MORE HUMBLE!!!
Time to research Private Mortgage Lending and keep learning. Thanks Matt & Ben💪🏾
Love the attitude Dontee! What should Ben and I discuss in our next video?
@@CanadianRealEstateChannel Maybe a good topic could be Private funds? You probably have the topic covered in your plethora of previous content, but maybe we could look at it from a different view, say, private LOC and lending that out at a higher interest rate and keeping the spread. 100% OPM? Quick brainstorm I guess.
MMM passive income
Another solid video.... This guy drops some gold nuggets. Keep it coming!
Thanks for the support - what should we talk about next?
Would love to get your thoughts on my real estate investing series! All videos are under 2 minutes.
Community is unity.
This model in 2024 will become more viable than traditional banking and mortgage. Empower people not banking corporations.
We're always excited for decentralized financing.
Mind blown!! Love this content!! Thank you!
Thanks Daniel! What else should Ben and I discuss? do you have any follow up questions for us?
🔥🔥🔥
The channel has come so far!!
#bethebank
Ok this is insightful. Just thinking, what is the difference between rent to own and Ben’s mortgage strategy?
They are different, but depending on how you operate your RTO there may not be a significant difference from an operations stand point but there is from a legal one
With Bens model title/ownership officially changes.
@@CanadianRealEstateChannel Interesting!
I was hoping to hear something about Licensing, Legal requirements, Broker License etc needed to become a registered lender to homeowners vs a lender to Investors (non-owner-occupants / investment purposes). This would be a great follow-up discussion point. Here in the US we have some VERY strict laws against these things (Federal level). Also, never heard anything about potential Usury Laws, Rates, 1st vs 2nd position liens and how you'd enforce them accordingly. Great marketing though!!
Wow, this was a very informative video. Thanks for sharing with us Matt & Ben!
Hi Matt! Question for you. How do you handle or can you do a video about tenant deposit interest? According to the landlord tenant act a landlord must pay each tenant interest on their deposits each year. Would love to hear your thoughts on this.
Perfect 23 mins spent with this knowledge packed video!
Been is such an intelligent guy. Really glad to see him on your channel! Tons of value here!
#Been
@@AdamJDMartin Bahahahahaha fuck!
This Should get a Million Views ! Thumbs Up !!!!
I love ben's perspective on a win win win situation on all deals; adding value to others, yourself, and making an impact.
If you can always focus on providing value first, value you will always return to you. Ben's truly an inspiration and crushing it on a whole other level!
he's doing some great things for families!
So key to create win-win situations.
WOW! I want to make $29,000 passively! this video was FULL of value. thanks Ben & Matt
BEN is CRUSHING IT!
Shrooms
@@stevenmygame6722 Yes, those exist!
I was thinking about this model for a while,but wasn't to sure how to execute it. It would be more help he could go more in-depth,step by step.
Thanks for this info!!!
Excellent podcast
I am very interested in this approach of becoming a lender, I am surprised that mortgage lenders permit that though? I am bit confused, does the bank permit you to lend on a property than you still have a mortgage on?
Say I buy a house for 250k with a mortgage of 225k I can refinance at 350k. Instead of refinance I sell a mortgage to someone on the property at 350k. Then I pay my mortgage with the money from the other mortgage?
Do they put a deposit down?
I have the same question.
Doesn’t make sense you couldn’t pay the mortgage off with the passive cash flow. Maybe the OPM pays the mortgage of 225k then lends a mortgage of 350k to the buyer? Really would like to see the math to comprehend how it’s done.
If there were ever an example of creating opportunity, this is it!
Great content. Do you work with clients?
Thanks
That's really amazing I need to watch it again . Awesome information Thank you Matt and Ben. this strategy sounds great.
Matt must be proud of those socks to be wearing them out in that dirt lot. lol Great channel. I love the value in all the content!
Great video as usual..
Thanks!
They both have awesome stories!
what kinds of returns we talking about on these private mortgages? 5% a year? 10%? awsome strategy!
how much did you need in capital before you can start loaning like this? seems like a great business but im not sure how i could loan 300k to someone to buy a house and still have enough to make another loan
He leveraged existing equity and continued raising capital from OPM for his other projects based on what I heard here.
So basically your doing land contracts / contract for deeds and wraps IF your truly doing notes and depending on the state the Only concern is the states foreclosure process.
Good stuff. We’ve been doing the same.
I typically do a lease with an option up front and when the customer shows that they can pay I’ll hold the note.
Are you using a note servicing company ?
Ben is truly a inspiration! This is something I’ve always considered and definitely something I will definitely do.
Just a question, what if I were to be a partner in a deal and make 8-12% interest on my money. Would it still be as passive as Bens business model ?
Does partner mean you're sharing risk? It could be easier to simply lend it in the form of a 1st or 2nd Mortgage?
Have you guys done any work with First Nations? I am member of one. We have no taxes out here yet due to our treaty rights. But could there be an opportunity for us to network?
I personally haven’t, but if you are interested in networking I’d try local real estate meetups. There used to be regular ones in Windsor, Kitchener, london, etc. check Facebook and eventbrite.
The laws in your state must be different than here in CA...no private lender here will do the loan with the owner occupant...they will loan to you as the flipper but only because its a business purpose loan.
Pretty funny that you have a suite and this socks
Thanks for watching!
MORE SOCKS!!!
Is this very similar to A RTO deal?
Return of capital and delayed return of appreciation are not passive income. The rate of return on mortgages is way too low for most high functioning investors.
Great story and super inspiring Matt and Ben!
Thanks Andrew! We need to coordinate a time to get you and some of your projects on the channel in the near future!
Sounds great, Matt. We could do a london date and look at some of my student stuff. I actually just sent Mike a message about booking something for Carmen and Jordan’s most recent one. Huge project with a massive equity lift
I'm so confused, why does your couch need a rug?
Hahaha. That's a good question - but I feel like it looks cool, no?
@@CanadianRealEstateChannel no, sorry.
I don't feel like sweeping before every video we shoot 😂
lol😁
As long as the content is amazing they can have 10 rugs ...
Sock game is lit! #realestate
I don't think this is applicable in the USA. Evictions are 30 days in many areas, but foreclosures can take 6 months minimum from what I've see. Sometimes several years. Please advise
very interesting video, maybe down the road after getting more doors this could be an option
But eventualy even this will need some kind of work, you wil need a team or some time in your office going thru paperwork and new clients once you grow large enough
#problemsorprofits ;)
This is amazing info
Thanks for the support!
I got lost with the strategy. Is he just buying houses and owner financing them?
Yes. He's buying them, renovating them, and renting them out at the highest market rate, then after building sufficient equity where it would make sense to either sell or refinance, he will sell to a Buyer willing to pay top dollar for Seller Financing- and lend out his equity to the Buyer in the form of a 2nd Charge mortgage registered on title. @adamjdmartin
Great video! I really want to learn more about real estate so I can diversify outside of the stock market in the future. Keep up the great work! I look forward to your future content.
Please do! There appears to be a lot more control involved and risk mitigation in real estate investing. When markets experience dips and lending gets tight, demand for rentals goes up. It's a win-win in REI no matter what cycle of the market you're in (and while the same can be said about trading, it seems to be a lot less predictable and stable).
Awesome video! Passive income ftw :)
Amazing strategy!!
I have big plans and ambitions.
Can't wait to see them come to fruition! 😎
Love this!
anything related with synthetic cdo?
No he’s directly the lender
What happens in a situation of a market correction/crash & the values plummet, so the landlord/owner decides not to pay the Mortgage and default cause they can’t afford to make the payments. Does the lender in that case power of sale the property?? And what if that 120k house example in this video is worth like 50k after a major correction (if it happens) and this situation takes place?? Please advise Matt!
What happens in a crazy black swan event? crazy things
I would like to see matt get some shoes.
I would like to see the continued amazing real estate knowledge.
And FREE
You're just jealous that his socks are nicer than your shoes.
Hey Matt, love your videos, I put them on anytime I’m driving I just listen and try to soak in as much information as possible. I’ve been going out looking at potential rental properties for about a year now but can’t seem to find anything nearly as good as the properties that are mentioned in these episodes in terms of cash flow or even value add. There seems to be a big gap here in Edmonton between house prices and rental rates. Wondering if you would have any input on a situation like that or potential strategies.
Thanks in advance and thank you for the wealth of information you post here for all of us to benefit from!
🔥
Thanks Allan!
❤
#clique
Ain’t no buddy f*cking wit da
While I appreciate his story and insights. This is far too complicated in both learning, work (had to purchase and rehab a house, find a tenant, etc etc) and execution for me to consider this "passive" . Honestly the flip and then investing the money in something that is then passive would be a lot easier it sounds. This does however seem like a nice way to diversify, but let's not lie to ourselves...this was legit work, and a lot of it.
power of sale is not western provinces
What’s the process there?
@@CanadianRealEstateChannel Judicial Foreclosure thru Queen bench court
www.cplea.ca/wp-content/uploads/ForeclosureGeneral.pdf similair process other western provinces@@CanadianRealEstateChannel
@@CanadianRealEstateChannel Power of Sale More Common in Ontario, Newfoundland, New Brunswick, and PEI
Take some of that 29k and buy some Oxfords.....Common man!
Michael K then they wouldn’t be able to sell socks in the top right hand corner of my screen as efficiently.
Become the bank....hmmmm!
Seems like a good idea to me - banks seem to do pretty well for themselves 😉
It's my favourite play
FIRST
🏆
Such an amazing strategy. So much nicer to be the bank than to be the Landlord. Just check out the Rosehart CBC exposed video to see why haha. Love this passive approach.
holy forehead
Smells like a con artist aka GURU. Typical BS. No such thing as passive income.
OK. Well do you mind enlightening us on exactly what is BS about the discussion we had?
😂😂😂
Did you watch any of this video? Lol
#problemsorprofits
Jealousy coming through hard with this one.....
🔥
Thanks! What should Ben and I talk about in future videos?
I would be curious to see one of these deals on paper. From the original purchase to the flip to creating the mortgage for the new buyer, what the interest rate is and what the mortgage terms are. Thanks