Helping Frustrated Renters Become HAPPY Homeowners
 
March 21, 2018
                          No. 212
Ya blew it!A popular sportscast has a short segment near the end they call “Ya’ blew it!”
The two popular personalities who host the entertaining show had found a niche where they could be silly and entertaining, and sports fans loved it. They were so popular, they were woo’d to a major American network, where they didn’t fare as well.So they came back to Canada, set up a show of their own that’s once again, super popular. Near the end of the Jay ‘n’ Dan Show, in the “Ya blew it” segment, they reflect on their own performance of the previous 55 minutes, identify an error they made, and correct it while mildly chastising themselves.
Last week I alluded to the prospect of pitching the Dragons for my special idea. 

Buoyed by that self-motivation, I decided to take a shot at it, filled out the online application, then showed up to the auditions Friday morning.Arriving shortly after the 10 am opening hour, I was already #17 on the list. “Come back in an hour and a half,” they said. I quizzed them about what the audition entailed, and decided to run home, put together a proper audition, practice it a few times, and head back. I got there about ten minutes before my time.

It was a fun experience. “How’d it go?” several people asked me later. 

“Quite well, I think.”

“Did you remind them of your movie star doppelganger?” several people asked me.Do’h! I never even thought of that! Wow! That could add to the entertaining value of a TV appearance, and likely improve my chances of getting chosen. I averred that I hoped the adjudicator recognized the similarity to Walter White, and noted that in her notes.

Those who have read this blog for a considerable time know that I have on occasion been able to use that look-alike to some benefit. But, bottom line, this time, I blew it! I missed my opportunity. I’m gently chastising myself.

I’ll know within a month whether I get picked for the show. If I do, I won’t blow it again.Stay tuned! I’ll let you know the next chapter.

Real Estate Profit Centre #7

So, having covered six of the seven profit centres of real estate, are you convinced yet? Maybe #7 will convince you.

The seventh profit centre is “Reinvestment.” The various profit centres all work together, so I’ve already alluded to this when discussing Profit Centre #2, mortgage write-down.

It works simply like this: As you increase the equity in one property through appreciation and mortgage write-down, that equity can be used to “leverage” (profit centre #5) funds from your mortgage holder. You simply increase the mortgage on your first property, or take out a line of credit against it, and take the difference in cash to invest as a down payment on a second property. Now you have two properties producing multiple profit centres.

Wait a few years, until the equity on the two has again grown, take out some equity on one or both of the properties, and invest it in a third. And so it goes.

Now, you may protest that, “hey, each time you increase the mortgage or line of credit, you add to your payments, eating up the benefit.” Well, that may be true, but not necessarily. Each time you increase that mortgage, you are essentially taking out a loan at the current mortgage rate. When rates are as low as they are now, it’s a cheap loan. If you make a return on all seven profit centres that, combined, is greater than the interest rate you’re paying on the increased mortgage amount, then you’re ahead of the game. If not, then you should shy away from the strategy. Or tweak it by making such adjustments as raising the rents you charge or remortgaging at better rates.

If you can do a little math, you can do it.