Quote:

---

Originally posted by pratickm

Quote:

---

Originally posted by investpro
Howdy PratickM,
What's your take on 2nd mortgages? I have found that this gives me consistent returns, more than 7% annualized over even a 6 month period.

---

You mean take out an equity-only mortgage on your home?
And do what with the money?
Unless you mean take that money, invest it and take the tax credit.
Please clarify.

---

Quote:

---

Originally posted by investpro
Actually I meant lending money to people looking for a 2nd mortgage whereby you secure it with a piece of their property.

The principal lender has first rights of course.
Since you had to ask me to clarify, it would seem you are unfamiliar with the process, though I may be wrong.
nonetheless, should you wish to give your opinion anyways, fire away.

---

-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

Real Estate Investment Network (REIN):


On Saturday, August 23, 2008, real estate "investors" from across Canada gathered in the beautiful city of Calgary to attend the REIN™ Western Conference. For those of you who are not aware, REIN (Real Estate Investment Network) is headed by Don R. Campbell who helps individuals invest in real estate. Don also predicted that property prices in Calgary would appreciate by 11% in 2008 and listings would fall by April. Inventory is still high and prices have decreased thousands of dollars. REIN's success may have been amplified during the time of free credit, "innovative" mortgage products and coincidental economic boom. I would imagine the REIN network increased its member base the most during the last two years as many wanted to ride the wave of the boom and profit. I have spoken to some REIN members who are average income earners who bought multiple rental properties during the boom. Many individuals who subscribed to REIN during the boom may be in a bit of trouble with no clear distinguishable bottom to the real estate "soft landing."

The name of the conference is suitably coined: How to Create Wealth in Real Estate, No Matter What the Market Does.

Is this truly realistically possible?

As with many other organizations who's reputation and livelihood depend on real estate appreciation, the keynote to this conference was more an assurance to REIN members (each member pays a subscription fee of $3375.04 every 17 months - that's crazy!) that the sky isn't falling. I now understand why Don has to be so upbeat about the prospects of building wealth through real estate. People have invested alot of money, personal savings, trust funds etc. in his word and advice. Any honest and realistic negative sentiments would crumble the network.

Best-selling author, Steve McKnight was flown into town from Australia to present his insights on the Canadian Real Estate market. Invite an individual from another country to come speak to others about how to be successful in real estate investing in this country. Makes sense right? Isn't real estate mantra such that proclaims that markets are localized region to region? Are real estate invesment fundamentals applicable internationally now? I digress.

The following are Steve's "Six Generations of Wealth:"
1. Trade Time For Money
2. Save More Than They Spend
3. Asset Appreciation
4. Income Generation From Assets
5. Income Reinvestment
6. Asset Maximization

For those buyers who bought at the peak, "Generations" 2-6 are simply not plausible in the current softening real estate market as property values decline. One can argue if fundamental #1 is possible in a declining market is possible. Time spent worrying about financial health is not my deftinition of time well spent. I even believe that the second fundamental violates what most REIN members have been advised. An average income earner purchasing multiple rental units would be classified as not saving more than you spend. In bubble fundamentals, rent will never cover the full cost of mortgage payments, maintenance costs, etc. of the property. In a declining housing market, rent increases are not feasible (you will see rent decreases). So the owner of the property is responsible for assuming a month to month financial loss which negates the flowing from one generation to the other. The members of REIN are advised to hold real estate over the long term but to actually make it long term requires financial survival during these present times.

This is very interesting and I been to a number of such talks and seminars where you don't get much out of them but just a hot speech. They also suggest you to buy no down payment. Now ho win the hell will you make money with no down payment purchase. It is the cash they talk about but will u not loose sleep over the whole thing. Also, if you have less down payment you now carry mortgage insurance. In the end, you have to be a person who does not care to go bank rupt and then just follow what they say

Quote:

---

Originally posted by bc2on

I am wondering if there is anyone out there to provide ideas for investment. I am looking for ideas where investment is safe amd sound and generate over 7% on average or more. By safe and sound, I do not mean like a fixed deposit accounts but less risk relatively is acceptable.
Thanks

---

Can you tell me to invest in second mortgages please? I have never done this before and am interested.
Thanks

Hi, I was on TD canada site and noticed this GIC, its called "GIC plus", on an average they offer 21% for 3 years which makes it 7% per year. (see the product table link below)

http://www.tdcanadatrust.com/GICs/GICTable.jsp

On searching their site this information came up.

"Unlike regular GICs, our Market Growth GIC returns are linked to the performance of one or more stock market indices, so you have the potential for higher returns. But unlike stocks, your principal is guaranteed no matter which way the markets move. And your investment has no foreign currency risk."

Please see the link below. I'll request CD finance/investment professionals to guide us on the investment. Please let us know or if anyone has owned them?

http://www.tdcanadatrust.com/GICs/MktGrowth.jsp

Thanks............................Jona