All Forum Posts by: Dan Falla

Windsor is a hot market for multi family. 

I got the package and emailed back and forth a few times with questions about grants.  I got general loans for small business - none applied to me.

Last Friday, I emailed cancel the program and get a refund.  I have not heard back.  The website states that I need to call to cancel.  I called to cancel and the phone went direct to a recording about an upcoming seminar.  Funny, the recording about the seminar mentioned the hotel but not the city!!

Next step is to dispute the transaction through the credit card company.

I just bought the package from grantfundingexpert.org

I know there are grants out there and funding. This guy claims for $1,400 that he would help you find them and apply.  Once you get your first, the $1,400 will be refunded.

It covers real estate, education and business.

Part of the program is one on one coaching from him.  I got my package and emailed in asking for help a couple weeks back.  No response so far.

I am about to send it all back and get a refund (they claim that if you are not happy, you can get 100% refund within 30 days.)

I'm posting this to ask if anyone knows of Chris Johnson and his program and if anyone has had any luck.

It's not expensive like other gurus and he claims to refund your money once you get a grant.  I dunno!

I just bought a copy at Staples in Canada for $149 = $100 US -  1/2 price sale.

Here is an update. I have been working with my big bank and they at first rejected my application for non arms length RRSP mortgage. As previously stated, I had 10 (now 11) Rent To Own properties. My average ROI on the downpayment is between 35-52% per year. Cash flow on each is between $250 and $600/month.

The bank rejected it saying that my cash flow was negative once they forced me to fit into their square hole.  They take 50% of the lease value then add on top of that expected repair costs, insurance and tax.  I was so upset that I was frothing at the mouth!  LOL

It took a while to sit down with the bank and explain how RTO works. I get a deposit from the client, they sign a three year lease, sign an agreement of purchase and sale dated three years out, pay my closing costs, plus taxes and insurance. They are also responsible for any maintenance including roof, AC, windows, furnace etc.

I showed them the contracts and asked to be bumped to a corporate credit manager. After a number of back and forths, they finally agreed it was very low risk to them. 

Oh and here is the kicker - I am replacing my existing mortgage on my own property with my own money from my RRSP.  It's not like I'm asking for new money.  I have never defaulted on a bank payment - ever!!!  Way too important to keep my credit rating up.

Next they had to send it to CMHC here in Canada because the rules state that the RRSP mortgage must be insured.  Usually this is a rubber stamp but not in this case.  I was denied stating that it was too risky and that I have not been in the business long enough (just about to pass 1 year).  Yeah I know, 11 properties in one year is a bit fast  but hey, they are all under three year contracts with a APS at the end and I have a deposit from them. They are contracted to pay costs too. These mortgages are secured by the bricks and mortar!  I'm applying for 80% of the value.

They also use the 50% lease rule - OMG!!! really???? all of my 11 properties will be vacant 50% of the time in a market that has a vacancy rate of 6%???

The bank is now going to send it to Genworth as another insurance company.

Sorry,  but I had to vent - It's just so silly!!!

Anyone else have a suggestion?  I just want to use my own money to loan back to me my own money. 

I have bought 10 properties this year and have had 15 inquires on my credit.  My question is; how much will those inquires hurt my credit rating?

I have hit the $$ wall like most investors.  Many opportunities exist but I don't have the downpayment to further my real estate investment. 

I have been researching how to make my RRSP, LIRA, etc work for me.

I have read Shirepoint site that teaches Arms Length RRSP but I would rather loan to myself.

After further investigation, I have come across TD's web site where you can do a Non Arms Length mortgage.  Before any of you respond that TD no longer does that, I have checked with my branch and they do.  What they no longer do is Arm Length.

Apparently, you can loan yourself from you self directed RRSP.  It is registered through a lawyer and the bank.  A mortgage insurer must also be involved.  Typical fee for CMHC, between 1.5% to 2.5%.  You charge yourself typical market interests rate.  So, you are paying yourself 10%-12% and it is insured by CHMC.  The 10-12% you are putting back in tax free.

Couple questions that I have

I want to take out this mortgage for my principle residence - since I will be using the money to pay off credit lines that I am using to fund my real estate investing - would the interest I am paying be.

What is the maximum rate I can charge myself?

How tough is CMHC on this type of plan? 

My credit is very good - no missed payments in years - but - I have had 15 inquires on my credit in the last year (bought 10 properties). How much will the inquires drop my rating?

I know the book well.  In fact I bought a couple copies.

Turns out that I follow his program pretty closely.  One thing I do differently than what Mark suggests is that I have my clients pay the closing costs (lawyer, land transfer, etc) vs my paying it. 

Hi Roy,

Patents are fun!  Thankfully the company I work for has a legal department to write them up. 

With regard to Rent to Own I follow a tenant first program.   In this program they find the house they want and I buy it.  They also sign a lease agreement and an agrement of purchase and sale dated three years out. 

I do require money down so they have "skin in the game". They are responsible for everything a homeowner would.  Taxes, insurance, maintenance etc. 

They are legally commited to buying three years out at a negotiated price.  

Typical people have poor credit. 

Helps both of us good return for me with low liability and they get a house and time to repair their credit. 

If things fall apart, I keep the house and they money they out into it.  

My occupation is as a scientist in the plastics industry with 21 patents issued under my name; however, my business is real estate investing. After reading Rich Dad Poor Dad, I realized I was stuck in a downward spiral and that I would always outspend my level of income.I needed to change what I was doing in order to have enough money to retire.

My long term goal is a combination of Rent To Own and multi family units in the form of duplex, triplex and quads.

Right now, I am very active in the Rent To Own program and find it very rewarding both from a financial perspective and helping people get into their own home.It’s a win win.

I got started into investing after being dragged into an open house unwillingly.This is where I met my real estate mentor.He had a Rent To Own program and was looking for investors.