Real Estate Investing in Canada E-Book

Don R. Campbell

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Veröffentlichungsjahr: 2010

Beschreibung

FREE DOWNLOAD OF PROPERTY ANALYZER SOFTWARE

Canadians in greater numbers than ever before are turning to real estate to build wealth. The Authentic Canadian Real Estate (ACRE) system is the first of its kind to show average Canadians how to profit from investing in residential real estate. In Real Estate Investing in Canada, you will discover how to cut through the hype and emotion of any real estate market and accurately assess the inherent risks and rewards. Whether you are buying your first property or your 100th, this book provides new-found tools, strategies and condence to help you achieve your investment goals.

WHAT CANADIAN INVESTORS SAY ABOUT REAL ESTATE INVESTING IN CANADA AND DON R. CAMPBELL:

"This is a great book. The information in just one of the chapters alone saved me over $28,000."
Michael Millenaar

"Full of practical Canadian content and presented in an organized and respectful system. It directly addresses how to get the money and financing you need to purchase real estate and achieve your goals."
Tamara MacLaren

"One of Don Campbell's great gifts is his near-genius ability to take something that appears complex and break it down into a simple step-by-step system that anyone can follow. I am convinced that everyone will thoroughly enjoy, and more important, benefit financially, by reading this book."
Russell Westcott

"The power of Real Estate Investing in Canada lies in the super simple, market-proven system that it offers you. It makes real estate dreams possible for any Canadian. If you are serious about learning the truth, cutting through the hype and being successful, this is your real estate bible!"
Valden Palm, MisterRRSP.com

The markets across the country are continually shifting and you must keep on top of the latest information. So, as a bonus, every registered reader of Real Estate Investing in Canada will have proprietary access to critical forms and ongoing market research at www.realestateinvestingincanada.com.

Leseprobe

Table of Contents

 

Praise

Title Page

Copyright Page

Foreword

Introduction

A CANADIAN SYSTEM FOR CANADIAN INVESTORS

CHANGE YOUR RESULTS BY CHANGING YOUR ACTIONS

 

Chapter 1 - YOUR REAL ESTATE SUCCESS ROAD MAP

 

ACRES OF WEALTH: YOUR REAL ESTATE SUCCESS ROAD MAP

THE SECRET OF MEDIOCRITY—LACK OF CONTROL

 

Chapter 2 - FLIGHT FROM NOWHERE

 

“HI, MY NAME IS RICH—ALTHOUGH I’M NOT”

THE DOWNFALL OF THE HOTDOG VENDOR

THE CURSE OF GENERALITIES

THE FINANCIAL AND EMOTIONAL COST OF MISSED OPPORTUNITIES

 

Chapter 3 - YOUR OWN PERSONAL BELIZE

 

REAL ESTATE INVESTING MUST NOT BE A SOURCE OF EXCITEMENT IN YOUR LIFE!

ARMAND’S HARLEY-DAVIDSON VISION

DEVELOPING YOUR OWN PERSONAL BELIZE—YOUR FOUNDATION FOR LONG-TERM WEALTH

RICHARD’S PERSONAL BELIZE

 

Chapter 4 - THE FOUR MOST IMPORTANT WORDS IN REAL ESTATE INVESTING: “WHAT’S ...

 

AS AN INVESTOR, YOU’RE AN OBVIOUS TARGET!

CHOOSE YOUR INVESTMENT “GURU” WISELY

THE THREE ESSENTIAL COMPONENTS TO REAL ESTATE INVESTING

 

Chapter 5 - HOW TO TELL IF A TOWN WILL BOOM OR BUST: THE 12 KEYS THAT UNLOCK ...

 

HOW TO IDENTIFY WHERE TO INVEST

WHERE ARE THE TOWNS WITH A FUTURE—NOT A PAST?

THE 12 KEYS THAT UNLOCK THE VAULT

THE PASSIVE FACTORS

ACTIVE FACTORS—THE ONES YOU CAN CONTROL

 

Chapter 6 - PROPERTY GOLDMINE SCORE CARD

 

HOW TO USE THE PROPERTY GOLDMINE SCORE CARD

 

Chapter 7 - SKIPPING STONES TO SUCCESS

 

SKIPPING STONES

 

Chapter 8 - NOT ANY PORT IN A STORM: HOW TO FIND THE BEST PROPERTIES IN THE ...

 

THE PROPERTY ANALYSIS PYRAMID

POSITIVE CASH FLOW

THE TWO RESOURCES OF A REAL ESTATE INVESTOR: TIME AND MONEY

THE CASH FLOW ZONE FORMULA

PUTTING THIS TOOL INTO ACTION

A PROFIT CENTRE IN THE GARAGE

IDENTIFYING MOTIVATED VENDORS

THE POWER OF THE DUE DILIGENCE CHECKLIST

THE DECISION MAKER

 

Chapter 9 - THE PROPERTY ANALYZER FORM WHERE THE RUBBER HITS THE ROAD

 

FINDING THE RIGHT REALTOR

THE PROPERTY ANALYZER FORM

RICHARD’S ANALYSIS

 

Chapter 10 - BELOW AVERAGE OR SUPER SUCCESSFUL: YOU CHOOSE!

 

FEAR OF TAKING ACTION: ANALYSIS PARALYSIS

WRITE, SCRATCH AND QUESTION

THE FEAR OF MAKING MISTAKES: WHERE WRONG IS RIGHT AND RIGHT IS RIGHT!

THE FEAR OF MAKING AN OFFER: WHEN EITHER YES OR NO MAKES YOU NERVOUS

YOUR ULTIMATE ADVANTAGE

 

Chapter 11 - PLACING YOUR OFFER AND GETTING IT ACCEPTED

 

THE OFFER TO PURCHASE

MULTIPLE OFFER STRATEGY

AND FINALLY—THE OFFER’S COVER LETTER

RICHARD AND EMMA PUT THE SYSTEM TO THE TEST

 

Chapter 12 - GETTING YOUR BANKER TO YES!

 

LEVERAGE: A POWERFUL TOOL

CASE 1

CASE 2

BUILDING RELATIONSHIPS: HOW THE BANKER BECOMES YOUR KEY ALLY

ALAN’S ADVICE—STAY OUT OF THE GREY AREA

PUT YOURSELF IN THE BANKER’S SHOES

 

Chapter 13 - SEVEN WINNING STRATEGIES FOR GETTING THE FINANCING

 

STRATEGY 1: LEARN ALL YOU CAN ABOUT BANKS AND BANKING

STRATEGY 2: CHOOSE YOUR BANKER OR BROKER CAREFULLY

STRATEGY 3: NEGOTIATE THE INTEREST RATE—SORT OF

STRATEGY 4: HAVE A PRE-POSITIONING DISCUSSION WITH YOUR BANKER: DESCRIBE YOUR ...

STRATEGY 5: USE SECURED PERSONAL LINES OF CREDIT WHEN APPROPRIATE

STRATEGY 6: GIVE THE BANK REFERRALS AND SOME OF YOUR OTHER BANKING BUSINESS

STRATEGY 7: PRESENT YOUR DEAL BETTER THAN ANYONE ELSE

THE SOPHISTICATED INVESTOR BINDER™

THE EXTRA 1O PERCENT MAKES ALL THE DIFFERENCE!

 

Chapter 14 - FROM CORPORATE JOB TO SUCCESSFUL REAL ESTATE INVESTOR

 

JOB DESCRIPTION OF AN OVERACHIEVING REAL ESTATE INVESTOR—PART I Key Traits

JOB DESCRIPTION OF AN OVERACHIEVING REAL ESTATE INVESTOR—PART II

 

Chapter 15 - NEGOTIATING SECRETS OF THE OVERACHIEVING INVESTOR

 

THE TRUTH ABOUT NEGOTIATING

WHAT EXACTLY ARE NEGOTIATIONS?

THE EIGHTEEN RULES OF NEGOTIATION

 

Chapter 16 - THE BIG CLOSE—A DAY OF RECKONING

 

Chapter 17 - WHAT BECOMES OF RICHARD AND EMMA?—CANADIAN SUCCESS STORIES

 

WHEN YOU’RE IN A HOLE, QUIT DIGGING!

SHARON AND AMY JOIN FORCES—WITH AMAZING RESULTS

 

Chapter 18 - YOUR PERSONAL ACTION PLAN

 

CREATING LONG-TERM WEALTH—NOT A GET-RICH-QUICK SCHEME

TWO COMMON REASONS YOU’RE BEING HELD BACK

PUTTING IT INTO ACTION

YOUR TEN-STEP ACTION PLAN

ROAD MAP TO SUCCESS

APPENDIX 1 - CHECKLISTS

APPENDIX 2 - CANADIAN REAL ESTATE GLOSSARY

REAL ESTATE INVESTMENT NETWORK—REIN

Acknowledgements

INDEX

End User License Agreement

Praise for the Authentic Canadian Real Estate System from Canadian investors:

“If you want a predictable real estate future, you must design it in advance. I know of no other real estate expert and educator who is as competent as Don Campbell. His research is unmatched and his results predictable.”

—Gordon D. Wusyk, Founder and CEO of Predictable Futures Inc.

“Seventeen months after joining and starting the ACRE system, I now own 141 units! I learned more from the author in this time about character, business, investing, money flow and personal goal setting than I have in my entire career. Don R. Campbell is a mentor and an inspiration, who provides something unique and extremely helpful.”

—Ernst Marsig, Investor and Business Owner, Y2 Marketing

“I have thought about buying real estate for income for 30 years. The ACRES Program has changed my mindset from thinking about it to doing it—and believing that it is not just possible, but necessary.”

—Joan Watson

“Using the ACRE System, I bought 154 positive cash-flow properties, all while working a full-time job. I now own over 350 properties.”

—Arlen Dahlin

“My journey began when I signed up for the ACRES Program. Since then I have bought four properties (two by myself and two as joint ventures) and sold one, helping pay off all my debt—all in less than 14 months. Last August I got married to the love of my life and we paid for our wedding—a very fancy one! I owe my success to what I have learned from Don Campbell and the network I have established through him.”

—Ali Ardakani, Momentous Consulting

“My involvement in REIN and the ACRES Program system since 1995 has significantly changed my life. Following your strategies, I have been able to create a lifestyle that has given me peace of mind in terms of financial security. In fact, I took a big jump in terms of lifestyle by taking a job I’ve always wanted—National Ski Team Coach. Not only does REIN positively affect my real estate, but it has had a huge overall impact on my life, providing me the freedom and confidence to attain my life goals.”

—Murray Cluff

“We’ve been implementing the various techniques in the system, with flawless results. Quite simply, this system is a must for all existing and prospective landlords. By implementing this system, you will increase your bottom line while significantly reducing your time commitment and headaches.

—Brent Beagle

“As a novice, I appreciate the opportunity to get the real, no-hype, nuts and bolts on real estate investing. After taking us step by step through the process, I am already feeling confident about putting it into action.”

—Nicola Battista

“I can’t imagine a better educational investment than being a member of the REIN group. The value of what we are learning doesn’t become evident until the rubber hits the road. It gives one the confidence to get into the deals and know we have someone to call when we need help.”

—Garet Bonn

“I joined REIN and, using their ACRES Program techniques and doing due diligence on my part, I was able to buy five investment properties in one month. Their extensive support, helpful forms, Insider Reports, and networking opportunities have given me the confidence and momentum to start my future full-steam ahead.”

—Brian Simpson

“This is extremely motivating. I am always amazed by how exciting it is to be with and meet others with the same objectives. A five out of five!”

—Angie Wu

“The best business decision I ever made was in joining the group (out of all the training I’ve done). I owe you a lot . . . you’ve changed our lives. Thanks so much for your continual commitment to the group and the inspiration you give to me and my family.”

—Madeleine Ficaccio

“Great information, I have spent thousands of dollars on other courses but this is the first one that I feel I can get started on with real action.”

—Patrick Plummer

“It has allowed me to increase my net worth exponentially. The very valuable information helps me to manage my properties with ease and fosters a great business relationship with my tenants.”

—Audrey Sloan

“This real estate business has not been easy. And many times my wife could not understand why I persisted. But from the ACRES Program program I discovered the very towns that I live and invest in are number one! Now my capabilities are unlimited. Your system has taught me the true power of a network and cooperating with like-minded people.”

—Jules McKenzie

“A real kick for overcoming analysis paralysis. ACRES Program is an excellent program to make someone take action. It provides one with the tools and skills along with a ‘go to it’ attitude.”

—Brian Soucie

“Finally, I am not scared of real estate. I realized that I can do it because this program gives me a focus and logical system to follow.”

—Duska Bazdar

“I have received insights into the art of creating deals that are simply mind-boggling.”

—Eldon Siemens

“A workable system with a lot of the uncertainty and guesswork removed. I like the balance between the money-making aspects and the necessary balancing-of-life aspects.”

—David Platt

“After only three months, I learned more than in all the years investing previously. Finally and certainly not the least important is the support and help I have received from the members I have connected with in the group. The willingness to help, the openness with knowledge and the integrity with their ventures has changed my view of the way it works. It has been quite inspirational!”

—Ken Wilson

“We really appreciate the opportunity to be part of such a fantastic organization. I will be eternally grateful for the skills I have learned which will enable me to succeed in real estate and raise my children at the same time.”

—Julie Hoffman

“Without the ACRES Program system and REIN, I would not be a full-time real estate investor. This freedom could never be equaled in my mind. It’s great!”

—Celeste Chaytors

“After joining the Real Estate Investment Network, our lives have completely changed and we are on the path to success. With the guidance of several members, we sold the house we were currently living in and turned it into four properties. One of these properties is the beautiful house we now live in and thoroughly love. The REIN system is so simple and easy to follow. All you have to do is take action and amazing things happen.”

—Jeff, Dick & Debbie Jeannotte

Also by Don R. Campbell with Barry McGuire, Peter Kinch and Russell Westcott

97 Tips for Canadian Real Estate Investors51 Success Stories from Canadian Real Estate Investors

Copyright © 2009 South Pacific Education Corporation

All rights reserved. No part of this work covered by the copyright herein may be reproduced or used in any form or by any means—graphic, electronic or mechanical without the prior written permission of the publisher. Any request for photocopying, recording, taping or information storage and retrieval systems of any part of this book shall be directed in writing to The Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright license, visit www.accesscopyright.caor call toll free 1-800-893-5777.

Parts (rewritten) of chapter 5, 13, 14 and appendix 1 have appeared in Future of Canadian Real Estate(1997) and How to Get the Bank to Say Yes(1995), copyright Alan Jacques. All material used with permission.

Care has been taken to trace ownership of copyright material contained in this book. The publisher will gladly receive any information that will enable them to rectify any reference or credit line in subsequent editions.

REIN is a registered trademark of South Pacific Education Corporation. Cash Flow Zone is a registered trademark of South Pacific Education Corporation. ACRE System is a registered trademark of South Pacific Education Corporation. The Sophisticated Investor Binder is a registered trademark of South Pacific Education Corporation. Beacon® is a registered trademark of Equifax Inc. Empirica® is a registered trademark of Trans Union LLC.

Library and Archives Canada Cataloguing in Publication

Campbell, Don R

Includes index.

eISBN : 978-0-470-73866-5

1. Real estate investment—Canada. 2. Residential real estate—Canada. I. Title. HD316.C.63’240971 C2008-905759-7

The material in this publication is provided for information purposes only. Laws, regulations and procedures are constantly changing, and the examples given are intended to be general guidelines only. This book is sold with the understanding that neither the author nor the publisher is engaged in rendering professional advice. It is strongly recommended that legal, accounting, tax, financial, insurance and other advice or assistance be obtained before acting on any information contained in this book. If such advice or other assistance is required, the personal services of a competent professional should be sought.

Production CreditsCover design: Ian Koo Interior text design: Mike Chan Typesetting: Thomson Digital Printer: Tri-Graphic Printing Ltd.

John Wiley & Sons Canada, Ltd. 6045 Freemont Blvd. Mississauga, Ontario L5R 4J3

TR

100% of the Author Royalties from this book (as well as Don Campbell’s other bestsellers, 97 Tips for Canadian Real Estate Investors and 51 Success Stories from Canadian Real Estate Investors) are donated directly to Habitat for Humanity to assist those in our society who need a hand up.

To date, over $400,000 has been raised through these books and the Members of the Real Estate Investment Network for this worthy cause. For more details, please visit the real estate discussion forums at www.myREINspace.com.

FOREWORD

In this stormy age of corporate greed, shady mismanagement and out-of-control egos, Don R. Campbell has forged a reputation as a man of integrity, with solid unwavering values and a vision to help people who want to create financial success. He is a straight shooter. I like people who tell it the way it is—no smoke screens, no guessing games, no hype.

What you’ll find in this special book is a simple step-by-step system for creating amazing results in Canadian real estate. Whether you are thinking of buying your first home or your 50th investment property, you will find this book to be a valuable resource. How do I know? Quite simply, it’s working for my son and me.

My son Andrew recently finished university. Like many young people, he’s ambitious and wants independence versus being stuck in a dead-end job. Slowly climbing the corporate ladder is definitely not for him! Reading inspirational books has ignited a spark in him. He and a few like-minded friends attended one of Don Campbell’s Real Estate Investment Workshops. They were impressed by two factors:

1. The integrity of the program.

2. Strategies and examples designed specifically for the Canadian market.

That initial spark quickly became a blowtorch! Within a year, my son and his friends had purchased one million dollars worth of residential real estate. Each of their properties is fully rented and has positive cash flow. They achieved all of this while studying full-time at university. How? Simply by following the systems that you’ll discover in this book. Now my son and his team of friends are looking forward to financial independence by age 35! Andrew says: “This program is simple and it puts you into action quickly. I was impressed with the fact that Don’s long-term focus is entirely on real estate and teaching people how to work the plan. Unlike others, he’s not trying to sell you a bunch of products at the back of the room, then disappear, leaving you stranded.”

Take it from me, Don Campbell walks his talk. Currently, he owns more than 200 properties and continues to invest using the systems he presents in this book. In addition to his own success, his main purpose is to change people’s financial lives for the better. As you’ll come to know, his greatest joy is the stories he hears from excited clients who have made their dreams come true.

The sad reality is that only 3 percent of Canadians ever get to fulfill their greatest hopes and dreams. The vast majority never achieves that elusive commodity called financial freedom, although many talk about it. The ultimate form of regret comes from not living life to the fullest, settling for just getting by when so much more is possible.

This book provides a proven plan for Canadians from all walks of life, a plan that really works. I have personally witnessed the results.

Les Hewitt co-author of the bestselling seriesThe Power of Focus

INTRODUCTION

A CANADIAN SYSTEM FOR CANADIAN INVESTORS

Oh no, not another real estate book! As someone interested in Canadian real estate, you’ve probably been very disappointed by the lack of information that focuses on our Canadian market. There are huge differences between our real estate market laws and those in the United States. Yet it seems that everywhere we look, all we have are U.S.-based books and programs.

The good news is the situation has changed. This book, over 16 years in the making, has been developed by successful Canadian investors for our fellow Canadians. Whether you want to buy your first property or your 100th, this book will provide you with a proven step-by-step Canadian system. You will discover the exact steps to take to ensure you are investing safely and securely, based on the economic realities of the market. This book focuses on turning your real estate dreams into realities—one property at a time.

How do I know it will work for you? Because I know it to be true by seeing the results of thousands of others who have used the system you are about to discover. What you’ll learn in this book has already allowed Canadians from all walks of life to invest in more than 24,500 properties with a total value that exceeds $2.34 billion in real estate purchased using the step-by-step strategies and secrets you’re about to discover in this book. These investors didn’t start with a huge load of cash or an IQ of 160. The people who have already proven the success of this system are average Canadians creating above-average results.

Over the last 16 years, I have been investing in real estate and teaching thousands of other investors. If you have a compelling reason why you want to create wealth using real estate as part of your portfolio, and you have determination, all you need to do is follow each step of this proven system, and your success will follow.

In this book, you’ll discover how to cut through all the hype that surrounds the real estate market, so that you can focus on one thing and one thing only—finally making your real estate dreams come true. You’ll discover, as thousands of other Canadians already have, that real estate investing can be simple, fun and very financially rewarding.

Whether your goal is to buy one property or more than 100 properties, the steps you’ll discover in this book will take you there. Allow the system to take you wherever you want to go financially. It is my earnest hope that you will have a real estate success story to share with us.

CHANGE YOUR RESULTS BY CHANGING YOUR ACTIONS

This book provides you with the ability and the tools to cut through all the hype, the theories, the sales pitches and all of the other frustrating experiences that surround real estate investing. In this book, I destroy some long-standing myths about real estate investing. I ask you to look at “What’s Behind the Curtain?” in every real estate transaction.

You will discover a real estate system that is based on fundamentals, not emotions. Why is this so important? Simply put, the results from emotional investing are the same as eating too much sugar: you feel good for a very short time, but then you crash. On the other hand, the results from investing based on true economic fundamentals, as you’ll discover, are similar to eating well for a lifetime. You’ll feel good for a long time, avoiding the major highs and crashes that emotional investing delivers. And most importantly, fundamental investing gives you results, which last for a long time with no regrets or ill effects.

I’m sure you’ve witnessed the major stock market swings—you may have even been caught in some. Uninformed investors in the real estate market are not immune to swings, either. But you will discover how to avoid any major swings—how to use fundamentals to tell you when to get in and when to get out. The ups and downs of the real estate market are predictable if you look at fundamentals. I’m not talking about market timing; I’m talking about inevitable real estate cycles.

The great news is that those “sugar crashes” of emotional investing are about to end for those who read and apply this book by following the proven Authentic Canadian Real Estate (ACRE) system. From now on, you’ll have the ability and tools to cut through the hype and analyze any sales pitch. Better yet, you’ll be able to identify exactly when and where to invest, and how to identify if you’re near the peak or not. This is not a get-rich-quick book; it is all about creating long-term wealth and making a real financial difference in your life and the life of your family. The decisions you make today not only affect you, but also many people around you.

If successful real estate investing is something you’ve always wanted to do, or have been doing for a while, the systems in this book will make you a better, more confident and much more successful investor. Combined with the special on-line updates you can receive, this book is a true road map to Canadian real estate success. The book is designed to ensure you are an investor, not a speculator.

I must warn you: some of the content will be controversial; some of it may even upset certain people in the industry. But my commitment is to inform you of what is working in today’s Canadian real estate market, not old theories or re-hashed strategies.

And I know, first hand, that these strategies work. How? Because these are the same strategies for buying investment real estate across the country that my clients and I continue to use today.

In addition to access to market research, throughout this book you’ll be given direct access to additional resources, analysis tools and research. These support tools are exclusive to registered readers of this book and are designed with one simple purpose in mind: to provide you with the confidence and knowledge to take this proven system and put it into action. It’s no longer time to dream of what may come—it’s time to make a real difference in your life.

SOPHISTICATED INVESTOR ACTION STEP

Special bonus: Free downloadable tools and software

The real estate market is constantly changing, and strategies that worked a few years ago may not work today. That’s why this book, and the ongoing updates made available to you, are so important.

Our real estate market research is continually updated, and as a registered reader of this book, you can tap into our most recent research for free. Simply visit www.reincanada.com/contact-us/register-your-book/ today and register your copy of this book. By doing so, you will receive updates on the latest strategies for today's market. You’ll also receive ongoing research updates regarding market changes. Register by visiting www.realestateinvestingincanada.com and clicking on the “Register My Book” icon.

By registering your book, you will also gain access to a free software program that will allow you to simply and easily analyze properties using the ACRE system you will discover in this book. Simply visit www.reincanada.com/software for access to the ACRE software. With a simple click of the button, you will be able to know if the property fits your system.

Don’t be shy with this book: write in it, highlight sections, fill in the blanks (there are exercises throughout), dog-ear the pages you feel are most important to you so you don’t lose track of them. Be sure to complete the exercises and checklists right on the pages. There are too many books sitting on people’s shelves that look brand new, obviously never having been put into action. Make this book a workbook and an idea book—a book of action!

With this in mind, here’s your first action step: Take a pen right now and on the first page, inscribe your name. That’s the first step in making the systems in this book your own—and putting them into your life. Over the 16 years I’ve been teaching Canadian real estate investors the truth about the markets, I have found that those who participated the most—and took the most notes and completed the most exercises—were always the people who became the most successful.

I like to remind investors of the often-quoted definition of insanity for investors: “Doing the same thing over and over again, expecting different results.” So, if you truly want to create different and more successful results, the first step you must take is to change your actions—starting with this book.

You will find that each section provides you with a clearly laid-out action plan, to which you can refer for each property you’re analyzing. Remember: if you continue to do the same thing, you will continue to get the same results.

KEY INSIGHT

You must change your actions to change your results.

The actions you take with this system affect your financial situation, and that of many others in your life—your family, friends, and even people you’ll never know. Imagine if your grandfather had created an extra $1 million of wealth in his lifetime for his family. Now imagine what kind of impact that would have had on your life. Starting today, you’re in a position to have this type of impact on those people around you. The time to make a difference is now.

So turn the page to discover how you can follow a simple system that has allowed thousands of Canadians to invest in more than $2.3 billion of positive cash flow properties right here in Canada. Think about it: You are one page fl ip away from starting to do the same. Real estate investing is not a race, it a long-term wealth creation strategy that, if done right with a focus on cash flow, can provide you with an amazing life.

1

YOUR REAL ESTATE SUCCESS ROAD MAP

If you don’t know where you’re going, you’ll never get there.

—Anon.

The statement above is especially true when you apply it to real estate investing. Often, when I ask someone what their real estate goal is, I hear, “I want to get rich!” or “I want to make a million dollars.” Well, as you’ll discover in this book, these goals are surefire recipes for failure.

First, you must define where you want real estate investment to take you financially. Be specific:

• How will you spend your time?

• What exactly will your financial picture look like?

• Will you continue to work in your field or will you live off the cash flow from your properties?

As with any successful journey, you need to know where you’re going in order to get there. And that destination needs to be very specific.

The next step is to set a time frame in which to achieve this success. Ask yourself:

• How long do I realistically believe it will take me to get there?

• What buffer time do I have in case of unforeseen detours?

• Will I be disappointed if I get to my financial destination later than expected?

• How will I feel if I get there earlier than expected?

The key is to be realistic and remember that proper real estate investing is not a get-rich-quick scheme, but a long-term wealth-creation strategy.

Third, your financial journey cannot be a success unless you have a clear road map showing you exactly how to get to your destination by the safest and most direct route. That’s exactly what this book will do for you—show you the road to take, the trouble spots to avoid and the key directions to guide you to your destination.

Finally, with all of the above in hand, no journey could ever come to a successful conclusion unless you actually take the first steps and make a commitment to see your journey through to the finish.

ACRES OF WEALTH: YOUR REAL ESTATE SUCCESS ROAD MAP

ACRES is an acronym for the Authentic Canadian Real Estate System—a system that has provided thousands of investors the exact steps to success. The ACRE system you’re about to discover in this book will take you to whatever fi nancial destination you choose. It could be that you wish to own one or two rental properties to increase your income and wealth, or you may want to use real estate as your major ticket to financial freedom. You choose the destination and the ACRE system will take you there. But you must take that very important first step.

Many of us know a colleague, relative or acquaintance who has clearly defined his or her personal financial goals, spent thousands of dollars on learning how to get there (through seminars, books and tape sets) and then, in the end, decided to do nothing with his or her new knowledge. Richard McTavish, the individual you are about to meet, is exactly that kind of person. He knows where he wants to be financially, but has not been able to get himself there.

Richard McTavish is one of those people who has planned his life away. He is 41 years old and lives in the suburbs of his hometown. He is married with two small children and his family is the love of his life. He has always wanted to provide them with more than he experienced while growing up, and to that end Richard has been a voracious reader of financial success books his whole life. In fact, his bookshelf is overflowing with self-help classics by Napoleon Hill, George C. Clason, Les Hewitt, Robert Kiyosaki, David Chilton and many more. He’s read them all.

He has also attended so many seminars on wealth creation and get-rich-quick strategies that he’s lost count. He’s on everyone’s mailing list as a “buyer” of information. He started with real estate (only to find that all of the information was U.S.-based); next it was high-tech stocks (well, we all saw what happened to that bubble); high-tech stocks were followed by stock options, and most recently he thought about getting into currency trading and get-rich-quick foreclosures. All of these ideas provided him with an initial rush of excitement. Some even yielded a few months of success. But in the end, none of them provided him with the means to reach his financial goals. These strategies have worked for many, but not for Richard.

Every time he attended another event or spent a few thousand dollars at another “free” workshop his wife Emma would shudder. She knew he’d come back excited about this new strategy, only to have real life prove that it didn’t work in his life. Emma also knew that the inevitable result would be a larger credit-card bill, a spurt of excitement, a little profit (maybe) and then nothing.

That’s why, for 15 years, Richard has continued to commute every single day to a job that’s comfortable but not very challenging. He earns a decent wage and has the golden handcuffs of a benefits package provided by his employer. However, just over three years ago, Richard was jolted out of his comfort zone. His friends and co-workers began losing their jobs through layoffs and the insult called “redundancy.” In some cases, these colleagues had been working at their job for over 10 years. He saw the stock market steal thousands of dollars from his supposedly secure retirement fund. He noticed that every time there was a bit of bad news or a negative headline in the newspaper, his RRSPs would drop in value. Life was not fun.

Adding to the family’s financial pressure, Emma’s hours at work were cut in half and her benefits taken away after her company was bought out. Meanwhile, their kids, ten-year-old Sam and seven-year-old Alison, were acquiring new and more expensive interests (hockey equipment and dance recital outfits don’t come cheap!) and his mother-in-law was facing a long-term stay in the hospital. His financial picture wasn’t looking very pretty. Maybe their comfortable existence wasn’t so comfortable after all. Even Emma, usually upbeat, was expressing concern, so Richard knew he had to take a hard look at where they were headed as a family. The financial wall was looming in the distance and Richard knew if he didn’t change something, they would hit that wall, and hit it hard.

One Sunday afternoon, when his kids were at their friends’ houses and Emma was visiting her mom at the hospital, Richard decided to go for a walk. He thought, “I’m 41 years old. Because of my insurance policy, I’m worth more dead than alive! I guess I better start getting serious. There are three other lives depending on me to make a better living.”

Across the street from the house they rented was a beautiful park with a pond. His thinking spot was a bench overlooking the lily pads and the geese. It was so secluded that Richard could only faintly hear the voices of others playing in the park. He wandered over and sat down in his spot, as he had done many times before. But this time it felt different.

Emma had recently voiced concerns about their finances, and Richard knew for a certainty that when Emma started to voice concern, it meant she had held it in for a long time. His wife is the most positive person he knows, so he definitely heeds her comments and takes them to heart. That’s why this time, sitting on his favourite bench, Richard knew it was time to be brutally honest with himself and take a hard, critical look at his life.

As the breeze brought a hint of autumn coolness, Richard thought of the many times he had come to this bench just to sit and think. Often, he would find himself here either full of excitement for a new venture, or feeling low because the venture hadn’t turned out the way he had wanted it to. This was his bench of transition.

He had heard at some seminar, many years ago, that it was important to inventory his financial achievements by taking stock of what was real in his life and compare it to what he wanted to achieve. This would provide him with a clear, if not pretty, picture of how well he’d done so far—and how much further he had to go.

After working through this thought process, what he discovered shocked him. The difference between what he had actually accomplished and what he had wanted to achieve was vast. He was finding out why most people avoided doing this exercise: honesty sometimes can be a difficult pill to swallow.

He started to look back at his many money-making schemes and what they had brought him in the end, and he noticed a pattern. Everything he went for had an element of excitement, a chance to win big in a short time, an emotional pitch that was almost impossible to resist. However, despite all of these big opportunities, here he sat wondering why he was barely achieving mediocrity.

THE SECRET OF MEDIOCRITY—LACK OF CONTROL

It became very clear to Richard why his life felt so mediocre—it was. As he reflected, he began to get a little embarrassed; he clearly saw that both his short- and long-term financial well-being were completely controlled by someone else. The short-term money—his job—was controlled by his superiors in the stagnating company for which he worked. They could end his job at any time as they had done for many of his buddies. He couldn’t increase his job income without begging for a raise, and that wasn’t going to happen given the state of the company’s finances.

For the long term, the meagre investments in his RRSP and bank mutual funds were controlled by the gyrations of the stock market. He understood that the markets were not really driven by long-term economics but rather by herd mentality and investor emotions. He’d invested in RRSPs to get the tax receipt, just like everyone else, and his returns were dismal.

Even his home wasn’t his own. Because he rented, he could be asked to move at any time. And to top it all off, because he was renting he was once again missing out on any increases in real estate values.

In other words, not one major financial decision was under his control. This realization made him feel angry that he had allowed others to have so much control over his future. Even though his wife had been patient with all of his investment ideas, he had to face the fact that all his get-rich-quick schemes had turned into next to nothing.

Richard could see his current road map was taking him nowhere, and he didn’t like it! Well, he thought, at least he was taking a week’s holiday to a place that he had decided on. He chuckled when he thought that at least this was one decision that he did get to make.

Richard and I met on the airplane that was carrying him back from his annual end-of-summer family escape from real life (oops, I mean holiday) to their favourite discount beach resort. He could only stay for a week because his boss wouldn’t let him get away for any longer. He was travelling home alone; his family stayed at the resort to enjoy a second week of fun and relaxation.

The stress of having to leave early had destroyed any relaxation gains Richard had made during his week on the beach. The scene as the family dropped him off at the airport played through his mind over and over again during the flight. He could still see the sadness on the kids’ faces and the look of concern on his wife’s. And even though he was returning from a vacation, I could see that he wasn’t a very happy person; he had a tired and sad look about him—not what you’d expect from someone who had just enjoyed a holiday.

I was returning home from making a special presentation to 200 successful real estate investors. I was still riding that special high you get when you hang out with positive and successful people. Speaking to and meeting groups of enthusiastic action takers is one of the pure joys I have in my life, and I grab that chance whenever I can.

Soon after we took off, I pulled out the notes from my presentation, planning to complete my regular post-event debriefing so that I could focus on my family as soon as I landed. (I feel it’s critically important to continually improve in everything you do, no matter how successful you are; that’s why I take the time to make notes.) I couldn’t help but notice that Richard, who was sitting beside me, was reading over my shoulder, trying to decide whether to make an introduction. Then he said, “Hi, my name is Richard McTavish. I see you’re involved in real estate. Man, I wish I had got in before the real estate boom.”

With that opening statement he unknowingly took his first step on what would prove to be his true financial journey. It would be a three-year journey that would take him from having zero control over his financial life to being a financial success in real estate, well on his way to achieving the dream, instead of just dreaming.

This also marks the beginning of your own personal journey to real estate success. The secrets and strategies that Richard discovered over the ensuing three years are exactly what you’ll discover in this book. No matter what your dream or what your current financial picture looks like (good, bad or amazing), you can use the ACRE system to turn your fi nancial life dream into a reality, just like Richard did.

Throughout the book, you’ll hear from the same experts who led Richard out of the investment wilderness. These veteran investors and other key people came to influence Richard’s life, and all of them played a key role in his success. In just the same way that these experts helped Richard, their strategies and secrets to personal success will propel you to become a confident and wealthy investor.

2

FLIGHT FROM NOWHERE

People are always blaming their circumstances for what they are. I don’t believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and if they can’t find them, make them.

—George Bernard Shaw

“HI, MY NAME IS RICH—ALTHOUGH I’M NOT”

“Hi, my name is Richard McTavish. I see you’re involved in real estate. Man, I wish I had got in before the real estate boom,” he said, just loud enough for me to hear. I had heard similar sentiments of regret many times over the years, from many people, most of whom just continued making such excuses and creating reasons why they didn’t act. However, this time when I looked up, I saw a spark in Richard’s eye—a spark of determination.

“Hi, my name is Don Campbell. Yes, I’m involved in real estate. Very observant of you to notice.”

“My name is Richard. Some people call me Rich, although I’m not rich, yet,” he said wryly, as if he had repeated this line a thousand times before. I knew there was a lot of work to do; starting with turning around the negative attitude he had about himself.

I asked him why he felt he’d missed the boom, although I already knew his answer. It was the same answer everyone gives who doesn’t understand real estate investing.

“Well, isn’t it obvious?” he chortled. “Prices have skyrocketed everywhere in the last 10 years. Then they slipped. They just can’t go any higher!”

“And what makes you believe they’re at the top?” I asked.

“Everyone I talk to is saying so. I read it in the media and hear it on talk radio every day. Prices are at all-time highs, interest rates are fluctuating and people can’t afford to pay the ridiculously high prices for a starter home—the boom is over! So once again, I missed the boat right when I finally decided to take control of my financial future. That’s just my luck.”

Then the floodgates opened. Obviously, Richard had decided to dump all of his life circumstances on someone, and I just happened to be the lucky one.

“And that’s not all!” he said. “I just completed an inventory of my financial situation and have found that all of my major decisions are made by someone else—RRSP, job, income, house—everything! I’ve taken so many courses, read so many books—heck, I know what it takes to be successful. But still I sit here, 41 years old, having missed out on another real estate boom. Do you have any secrets I can use?”

He was fishing for secrets or shortcuts because that’s what he had done all his life—looked for an easy fix to a not-so-easy situation. Then I asked the critical question: “These people who have told you that the boom is over, do any of them own any real estate for investment?”

“Well, yes, a few of them do own their own homes, but now that I think about it, none of them own any investment real estate.” I could see a light bulb turning on above his head, and it wasn’t the “fasten your seat belt” light.

“Richard, I find that whenever I ask that question of someone in your position the answer is invariably the same as yours, so don’t feel bad! We are all surrounded by people wanting to share their opinions on anything and everything, whether they have any real knowledge on the subject or not. The key is to fight your way through these uninformed opinions and get yourself to the facts as quickly as possible. We have lots of time on this flight; are you interested in hearing a short story about how to turn a raving success into an absolute failure?”

Richard nodded his agreement, and I launched into a story I was told many years ago by a sage advisor.

THE DOWNFALL OF THE HOTDOG VENDOR

“I’m sure you’ve seen those roadside hotdog vendors, with their brightly coloured umbrellas covering their well-used barbeques. Bob Grant was a very successful owner of some of these stands and they provided him with his livelihood.

“He was very hard of hearing so he didn’t own a radio, nor did he watch TV. He had trouble with his eyes, so he didn’t spend much time reading newspapers. His life was consumed with the intricacies of running his hotdog stands, and he did it better than anyone.

Bob had staked out the perfect high-traffic locations. He put signs by the side of the road telling all passersby, on foot and in vehicles, how good the hotdogs were. He even offered a guarantee that his dog would be the best dog you ever ate or your money back. People loved his secret sauce.

“He stood on the side of the road calling out, ‘Buy a dog, mister?’ Because he was so actively selling, people bought. Every day, he had lineups of regulars who brought their friends. He was incredibly successful in his selected niche. He increased his bun and meat orders on a regular basis. He bought more barbeques to keep up with the demand. His growth was amazing.

“Then, one day, his son came home from college to help him out, and that’s when his business started to change. After a few weeks of watching his dad’s business, he took him aside and said, ‘Dad, haven’t you heard the news? There is a recession going on. The unemployment rate is skyrocketing and energy prices are through the roof. People can’t afford to eat out any more like they used to.’

“His father thought, ‘Well, my son has been to college. He reads the newspaper and listens to the radio. I guess he ought to know.’

“So, despite the obvious demand for his dogs, Bob reduced his meat and bun orders. He took down his advertising signs and no longer bothered to stand on the side of the road asking for the sale. Not surprisingly, his hotdog sales fell almost overnight.

“‘Wow, you’re right, son!’ Bob proudly said to his son. ‘We are most certainly in the middle of a great recession. Thanks for warning me or else I wouldn’t have known because my business seemed to be growing at such a fast pace!’

“Bob’s son didn’t purposely try to hurt his dad’s business; he just gave his father advice based on what he had heard was happening through the media and his friends from college. The mistake he made was applying general overall strategies to a smaller specific market, and this misinformation became the downfall of his dad’s business.

“He didn’t know the hotdog business like his dad did, he didn’t understand how unique and well thought of his dad’s business was in the community, and he definitely didn’t understand that, although there was a general recession, the town in which his dad lived and operated was booming, no matter what the national averages were saying!”

THE CURSE OF GENERALITIES

Richard’s face revealed sadness mixed with anger. I said, “I admit the story is a bit depressing, but it’s also a great lesson. Bob’s son took generalized information and applied it directly to his father’s small and specific market. This has been a sure-fire recipe for disaster throughout history.

“Generalities are a killer for all investors, no matter what they’ve put their money in. During a downturn in a stock market, there are still stocks that skyrocket upwards, and during a slowdown in the national real estate market, there are always pockets that have their best years ever. If you imagine trying to comment on trends in Toronto real estate by applying statistics from St. John’s, I think you’ll get the picture.

“And that’s why, Richard, you must always, always check your sources of information. And while you’re at it, make sure two key components are in place:

1. The information is relevant to your specific market, and is not based on generalizations.

2. The source has extensive experience in the investment vehicle you are looking at.

“Ask yourself, do they really know what they’re talking about? Do they have experience in the areas of which they are speaking? Are they spouting generalities from something they read, or do they have knowledge about a specific market?

“I think in many cases, you’ll find people making grand, sweeping comments—generalities. Just as I’m sure your friends have done with you when they discouraged you from real estate opportunities.

“Even more sad and depressing than the hotdog story is the story of people like you, Rich, all across this country, who allow their dreams and enthusiasm to be squashed by misinformed friends, family and co-workers. The good news is, once you cut through all of that outside noise, you can and often do create results you hadn’t even dreamed of before.”

I could see that Rich’s mind was at work. “Don, you know what? When I look back at all of the opportunities I’ve been presented with over the last 10 years, I shudder to think about all of the money I’ve missed out on because I listened to naysayers you call the ‘misinformed. ’ I know that I have been easily distracted by ‘the next big thing,’ but it makes me angry that I allowed myself to be dissuaded by others’ opinions. I guess that’s why my job, my retirement and my overall financial security are held in someone else’s hands.”

“Wow!” I thought, “Richard is proving to be a quick study.” So I asked him, “Would you like to know a secret to cutting through all of that baloney?”

He just about jumped out of his seat and said, “Absolutely!”

SOPHISTICATED INVESTOR ACTION STEP

Highlight or circle these next two paragraphs so you don’t forget them!

“The key is simply to ask, at every opportunity that arises, ‘What’s behind the curtain?’ Yes, it sounds simple, but it is extremely powerful. Think of the movie, The Wizard of Oz. The truth was revealed to Dorothy, the Tin Man, the Lion and the Scarecrow when her dog Toto ripped open the curtain revealing that the so-called wizard was really just a man from Kansas named Oscar—not the powerful entity that everyone believed he was. That is how misinformation works; it hides behind general ideas and opinions that are peddled as fact.

“Your job as an investor is to continually rip open the curtain, revealing the truth behind any hype and misinformation. If anyone offers you advice, always ask yourself, ‘What’s behind the curtain?’ It doesn’t matter if it is me that is telling you something, or a family member, or one of your favourite financial TV hosts . . . always ask the question. Here are some other key questions to ask yourself about those who dispense advice. You should write them down:

• Do they really know what they’re talking about, or are they trying to influence me into buying or investing in something?

• Do they have a financial incentive to get me to take an action based on the information they’re giving me?

• Are they using the powerful emotions of fear or greed to get my attention?

• Do they have experience in the market or are they just part of the cult of opinion?

“Richard, to fully understand and assess an opportunity, keep asking yourself those four magic words until you get to the real answer. It is only after you cut through the first line of prepared answers that you’ll start to get to the real truth. You must make sure that any decisions you make are based on reality and not someone else’s perceptions or opinions.”

SOPHISTICATED INVESTOR ACTION STEP

Making clear notes is a critical success step. I find the most successful people in all walks of life take copious notes so they don’t forget key ideas and thoughts. I recommend to everyone who wants to be a leader that they should carry some sort of notepad at all times. Many of us believe we can remember far more than we actually do.