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Investing made easy – The Vancouver real estate market explained by a Vancouver realtor

Tuesday, April 27th, 2010

Hey its Richard Morrison!

I am actually in Osoyoos having one of the most fascinating experiences in my life. Just allow me two minutes to explain here..

I am in or at least around one of the most wonderful spots in Canada right now, The Osoyoos Desert.
And I am a guest and also a proprietor at the Casa Del Lago Resort, specifically a resort in Osoyoos. this is actually the only desert in Canada full of sandy beaches and wonderful weather.
And I am here because I wanted our team of agents to have a little break. You see I am in my own little slice of promised land here and there is something amazing about being able to hang out with the people you work with – especially in a little holiday town such as Osoyoos. You see, knowing that you are working with people that are the best at what they do and also being able to enjoy life with them is merely unbelievable!

Anyway, just check this out. About 8 years ago, I started my own Vancouver Real Estate business.

5 years ago, that same Vancouver Realtor business, allowed me to invest in more and more properties.

3 years ago, we grew and this allowed us to have our own team of salespeople – I INVESTED in more people- magisterial people to work with WITH us!
20 months ago, my real estate business allowed me to invest, INVEST! in another property to allow me to do what I am doing right now, drip ing time in my laptop in the shores of lake Osoyoos
So here I am on my laptop, telling you all about it.
Hmm..but why?

I remember what a hard decision it was to escape the world of corporate accounting to start my Vancouver real estate business. I mean, after spending one thousand s of dollars on my Business SFU Education and then putting all those years of really punishing effort into my career, just like walking away, wasn’t really an option. At least it wasn’t really an option that I wouldn’t feel REALLY guilty about it. Especially because I was yet paying off my student loans!

I mean don’t get me wrong.

I especially did not like that I was working those hours for someone else to make their business money while they took most of the credit. But I really LOVED what I was engaged in, I just didn’t want to do it for them anymore.
So I said to myself: “There is got to be a way to make my education and Vancouver real estate this business of mine.”

For a long time, all that affirmation turned out to be was this lip service, and I mean, nothing more than like a mental justification so I could be, you know, bold enough to say to the MAN “I quit!” and leave my career in the rear view mirror.
So, once I saw my family investing and, they started to create equity, renter s were paying their mortgages, and they started having more and more free time, and travelling more and more…! And I got excited!

Because I saw that this light at the end of the tunnel . and it was like this light was screaming YES! I was gonna able to use my passion and my established education and my career investment. for my real estate sales career and my Vancouver real estate business! It was all just a matter of letting go of that fear and getting off the sidelines to catch up with what I used to do at that accounting firm, except NOW I was doing it for me.

Now that I got off the sidelines. well forget about it …GAME OVER!

And it wasn’t like I knew that getting off the sidelines and investing in Vancouver Real Estate would be a game changer, I was just kinda hoping it would be.
This totally Vancouver real estate business and real estate career wasn’t some part of my master plan of evil scheme.BUT I did have my fingers crossed.

And then finally my first attempt and first experience at Vancouver real estate investing, resulted in me buying 2 condos using my 2 credit cards, and making over $200 thousand dollars by the time I sold them.
The next 2 times I used my guts, instincts and knowledge to buy Vancouver investment real estate, it resulted in more really huge successes! I mean thousands of dollars of wealth creation.

The result is simple: Investing in Vancouver Real Estate Simply Rules the Kingdom! It is one of the easiest and most effective way to increase Wealth.

And ya! I did say the easiest! And its not because I spent 10 years doing this stuff, or because my family has been doing it over 40 years.

Its because like most basics things, if you have the right selective information and can follow instructions, anyone can create wealth in Real Estate. Ya! Anyone!

And ya! You know. I guess through time I have earned the right to make this statement.I been doing it for so long and I got a pretty good track record.

Now would you wait just a moment? I have to relocate to the Spirit Ridge Winery, part of the Nk’mip because its lunch time here in Osoyoos and today’s special is a Grilled Bison Steak with Blue cheese topping.

They also have a wonderful set of wines from the Nk’mip winery. Nk’Mip Cellars is North America’s first Aboriginal owned and operated winery…and it has some of the most stunning views in the Okanagan.

Be right back..

Ok…delicious… you know what I love about the bison steak? It pairs amazingly well with the Nk’mip Merlot…

So anyway like I was saying:  Yup! Anyone can invest in Vancouver Real Estate and when I say anyone, I don’t mean like THE majestic anyone that is usually used in these marketing videos. I mean like Jane Smith from Abbotsford, BC, no offense Jane.
What you think may be a huge risk, is really less risky then staying in that accounting job working for other people! It is actually what has gotten people to a safe retirement for hundreds of years! Your Real Estate will pay for your retirement .. and then some. It’s not bleeding edge knowledge and can fit anyone’s budget.
Even if you went with a small flat. say in Chilliwack, for like normal market appreciation, we are still talking about a $1,300 per month retirement fund. And that is just ONE apartment! Image 5 of those in just 5 years…
That it what it takes for you to start!

My main point here is, that is what it takes to get something in your life that has consistently ameliorate d wealth and money time and time again in most people’s lives. You know. I am just thinking about what I just said and it occurred to me that it might be kinda unearthly to be here pontificating how easy and effective it is to invest in Vancouver real estate while I am working on investing on getting more and more properties.I mean think about how much real estate is worth! Just one parking spot in Yaletown costs way more than my laptop or in fact my car!
But you see, Real Estate is a different animal, they are big and expensive one, and while I am on this wild life analogy click, what you need to have, own, beg, work, slave away at, or take up, in order to own an investment property is about equal to the complexity of ant farm.

My first Vancouver real estate investment purchase was done with 2 credit cards that I got from University. and I had a connection with an international language school where I could get international students to rent my property. and of course I had to buy used furniture for my 2 apartments so the students could sleep there and I also provided them with internet service, tv, a telephone and a computer. I rented each apartment to cover my mortgage for 1 year, then took my first profit s out.

The point is, that was a simple creative solution that I came up with at the time. It PAID my mortgages. Those apartments generated a total of $3,000 per month. That is $36,000 per year income on 2 credit cards. Even if the market dipped to zero, those apartments would provide me with a $36,000 of retirement income when I was, 25 years senior, providing I had not sold them for a $200,000 profit.
Not rocket science! Just a little hard work.
Listen..there are batch of excuses for you not to invest in Real Estate in Vancouver. Here are just a few things in case you are feeling overly enthusiastic and ready to try new stuff and just need a little negativity in your life. nice guy aren’t I?

So… Reason s why I am not investing in Real Estate to improve my life and my family’s life.

Number 1.
I am Ugly and Lazy. My tenants won’t want to see my face when I go to collect rent and I don’t want to collect rent.

Number 2.
I don’t have enough time to look at investing in Real Estate because my job requires me to work 50 hours a week, and even though I know that if I buy say 2-3 apartments in my life I could be making the same amount of money in the end, I would rather continue to slave away hours at my job.

Number 3.
I don’t think I know how to purchase properties very well, because every time I go out to look at Vancouver properties I feel like my 3 year old knows better about real estate than I do.

Number 4
Real Estate freak s me out. After spending all month paying my landlord’s mortgage and seeing that all of richest people in the world made their money buying and Keeping real estate. WHEN I get home and try to get mine I get all weird.

Number 5.
I am pretty happy with the stage of income I make right now. Real estate? Pfff!
I mean, why would I want to try to improve my wealth tenfold or improve my life leaps and bounds through real estate?. I mean pff! What’s the point?

Here are some semi-witty answers to the above questions: 

In case you didn’t get the sarcasm in the above questions, let me just lay them immediately.
Here are some semi witty answers:

Number 1.
I am Ugly. PLEASE – Buying Vancouver Real Estate will make you beautiful (really, you are already beautiful if you’ve read this article to this point)!

Have you seen me when I go to collect rent on a Friday night Oct 31st Halloween night? THAT was by far the best looking I have ever been when I went to collect rent. My tenants actually thanked me for wearing a mask!
Have you seen the landlords that collect rent lately? Trust me, star search magazine or GQ is not in search of Canada’s next top model for the landlords I have seen landlords going around collecting rent. Most of the time be glad if they wear deodorant!
I am Lazy? PLEASE! Get off your butt:
Here is what you need to do to collect rent from a renter.

a. Put keys in your car, turn it on.
b. Drive to your property, park.
c. Knock on the door, be pleasant, and collect rent.
d. Place rent in deposit slip and deposit into your bank, drive back home.

Got it?

Number 2. Ummm READ Number 1, the lazy part. PLEASE!. Unless you are ok at slaving away for a few more eons and you want to look back and say “I wish I bought 5 years ago.”

Number 3.
I don’t know how to invest in real estate very well.
Believe me. Your 3 year old probably does not know more about real estate than you do. what they DO have however is no FEAR.

The rest is easy. Have courageousness, knowledge and make sure your property cashflows in a good fundamentally good area that will grow over a LONG PERIOD OF TIME.

Here is how simple it is:
1) Place offer
2) Buy Property, rent it
3) Collect rent from renters
4) Sell property or hold for profit
5) Make more money than any of my other co workers over and over again
6) Retire with Wealth and happy
This Is a simple concept. It is exactly that simple. The only thing that stops people from doing it is FEAR.
We will hold your hand if you like, but you must have courage. Pure and simple, the rest is easy.

I mean, of course the real estate market will go through its peaks and valleys, every market is cyclical But what matters is that all property in Vancouver real estate will be higher in 10 years from now and guess what? Your tenant paid for your entire property while you slept! Well. you did have to collect rents once a month for about 1 hour per month or so. And there was that episodic leak in the cellar where the plumber charged you a little for fixing up the downstairs kitchen sink. Sorry, some work, a little cost, HUGE PAYOFF. Got it?

Number 4.

Real Estate Freaks me out.
Well. FRIEND. Real Estate Investment is gonna ask that you spend a few insomniac nights to get used to. Sorry if it freaks you out!
Why don’t you try to think of it as that thing that could turn into an in-home ATM, giving out cash out each calendar month Maybe that image will freak you out less.
And its TONS MORE FUN! When I say owning property is tons more fun than going to work mundane nine to five, believe me, I MEAN IT! ITS TONS MORE FUN :D
“But Richard I am distressed that my Vancouver investment won’t rent out. What will I do if I can’t rent it out?” Rest assured when I tell you there is a 99.0% chance, in most of the lower mainland, that you will rent your property. Seriously. The vacancy rate in most of the lower mainland is almost 0%!
This means that you have about a 1% risk of not finding a tenant.
I firmly beleive that the risk that you may lose that accounting job is higher than that!

“Richard, the Vancouver real estate market may go down in value.” Ahem. what market doesn’t? Markets will go up and will go down. That is the nature of real estate markets.

The Vancouver real estate market has shown consitency over many years…What I can show you is that The Vancouver Real Estate Market has consistently grown stronger and stronger-over the course of 10-25 year terms! And did I mention that your renter paid off that mortgage by the time you retire? That means that you will have FREE rental income coming in every month without having to work.What retirement pension plan does THAT?

The point is, if you are an investor don’t worry about the MARKET, because it it’s the DEAL YOU MAKE that matters. If you are covering your mortgage payments, KEEP IT and you will have doubled your wealth every ten years.

2 DRASTIC CONCLUSIONS HERE:
1. Even if all you did was allow us to show you how to buy 2 CASH FLOW properties TODAY, there is a greater than 51% chance that you will be more financially successful than most of 95% of your co-workers who go to work 9-5 every day (not that there is anything wrong with this).

2. We can show you how to figure out WHAT AND WHEN TO PURCHASE, just like with all of our clients and our seminars (we spend a ton of time showing you and researching what to buy and how to buy it), because its like a formula. Our system works time and time again.

Number 5

You’re ecstatic with your level of income right now and you have not had to invest in any property and you are gonna stick to your RRSPs and GICs and you have a bank account with interest savings and you are all set.

Well, that’s amazing! I am indeed happy for you… this is certainly not for everyone

I am very glad also that you do not need any more PASSIVE INCOME in your life. Perhaps this is a content spot in your life and you need this as it allows for you to have a safe lifestyle. Congrats – I’m not being critical here!

BUT PLEASE! Don’t look back 10 years from now and say, “I wish I had bought real estate 5 years ago because it has doubled in value.” I hate to do this, but I am going to show you a surreptitious sales technique(called future pacing), that sales professionals use to tell value. The only difference is: I am going to tell you I am doing it.

Look to the graph…This is a graph showing over 25 years of real estate values in Vancouver. You see that? That shows that it has CONSISTENTLY grown upwardly for 25 years. Of course it does not go up in a straight line! There are always ups and downs But as long as you purchased a cash flow property and were pleasant to your renter, then you rode out all of those peaks and valleys! You see? This sales technique show you with empirical proof that as long as you invest a cash flow property in Vancouver, your property will more than likely be worth much more 5 years from now.

Well, it’s bbq time here in Osoyoos, we are gonna toast up some stakes in our bbq especially because we have a sundown and everyone likes to watch sunsets while cooking a steak – especially cooking for a great group of people like my familiy.By the way, the only spice I use on my steaks is sea salt. Great way to tenderize and spice up the meat.
Be right back…

I love my bbq and my sunset.

Now, I got together with my team during our bbq and asked my group this question “What is going to be our greatest challenge when it comes to teaching real estate investment to all our clients?”

And they all agreed: “Richard, they are all thinking that the Vancouver real estate market has increased too much and they will want to wait for the market to dip again.”

FACT: It makes perfect sense why someone would have such a stance, but there FACT is that there is only 2 types of people out there. 1) Those who invest and 2) those who don’t. Period.

Those who invest wisely know that its not what the market does BUT WHAT THEY ARE DOING that matters.
And here is why..

You always make your own market and your own deal whenever you buy an investment property. it does not matter what the market is doing – its always the DEAL you make!There are numerous properties out there and so much opportunity that these investors are aligning long term with low rates!

Got it? Now look, I think this is gonna be a little Bragger Lee…but I think our team of experts is the best group of folks in Vancouver that can guide you on any real estate investment strategy you can possibly ever think of in British Columbia – in any real estate market.

 We provide all the answers to the investor in one simple and effective package, making it easy and seamless for you, the investor.

As a Vancouver realtor, I will finish by saying: I made my money by BUYING REAL ESTATE, NOT SELLING IT. If you wanna learn exactly how to make money and wealth in your life, our team has the proven real estate formula and have repeated success for our clients over and over again – regardless of the market.

Just to make the burden a little EASIER – we offer a free consultive analysis of your plans and future goals and dreams and assure you we will show you just how easy it is to engage in real estate investing, which is going to generate more wealth, more revenue, more time to spend doing exactly what you’ve always dreamed of doing and an healthy retirement.
Well, this is our last day here in Osoyoos. well at least for this weekend. I am going for a dip in the lake now and later joining my crew for a little boat fun. I hope they have olives for my martinis. ;)

Oh, don’t forget to visit our Vancouver BC Real Estate website and let`s get started! 

Listen, I KNOW this is a wonderful thing. You do too! After all, you would not be here reading this if you didn’t think so.

If you are shy to call, you can also try us by email: just email me directly at rich@homesandbusinesses.net

Bye for now!
Richard Morrison.

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