Tom Karadza & Nick Karadza

Show Me The Money and Get In.........I'll Drive!

I had a conversation with an investor who lives in Toronto recently.  She has been holding two rental properties for a few years but was looking to get back into action (good for her!).

We were speaking about opportunity in Ontario when she bluntly said, 'Those don't really make sense for me since they are not in my area". 

I must admit, I was a bit shocked.

My line of thinking is so different that it caught me off guard.  Now, don't get me wrong, I am not saying that the way I think is the only way or the correct way.  But to me this is like having opportunity around the corner and not seeking it out because it won't come knock on your front door.

We were talking about opportunity less that an hours drive away.  This would bring her to a market with stronger fundamentals that her own.  Instead of losing jobs, this area has one of the lowest unemployment rates in the ENTIRE COUNTRY!  Add that to the strong population growth, and new transportation routes that are popping up and you have some great indicators for some potential in a real estate investment.

There are other fundamentals to look at when evaluating your investment decisions but we didn't have a chance to get to them because we weren't speaking of her immediate area of Toronto.

Listen, I am a believer in Toronto, there are some areas that have great growth potential and hold a lot of opportunity.  But I am also open to other places.

I don't see many stock market investors buying only Canadian stocks.  They want to open themselves up to opportunity elsewhere, most likely countries with strong growth potential and economic fundamentals.

These are the things smart investors look for.

When our conversation ended I sat back and thought that maybe all the media coverage about the high energy costs lately made her think that the travel expense wasn't warranted.  That must be it, right?

Then I remembered that she regularly travels to her cottage which is about 3 hours away.....there goes that logic.

Statistics Canada released a study in 2005 showing that in the Toronto area, the average commute to work was 79 minutes round trip.

Isn't it surprising that people will travel this route everyday but not travel at all to realize a good opportunity?

Maybe Not!

The more you take notice of the average person, or complaint, around you you will start seeing that no one wants to be inconvenienced at all.  Most people would never do a thing if they could have their needs taken care of and handed to them.

Take notice, you will be surprised......but don't forget this is a GOOD thing.

Yes, it is that type of mentality that makes it possible for the rest of us to get ahead.  Because all you have to do is take some responsibility for yourself and the opportunity that is around you.

Here's what it boils down to, and it's not rocket science

If there is opportunity within your grasp, go out there and get it!!  No one is going to bust down your front door begging you to take advantage of it.

And I've got news for you, there is much more going on than what you see in your neighbourhood, especially in real estate.

Income For Life "Members Only" Event

Well we had a blast at last week's Income for Life "Members Only" event.

And the feedback was fantastic.  We try to balance some fun with content, it's a real challenge and we'll continue to tweak, improve and grow!

Here are some pictures from the event.

On the way in everyone had their picture taken with Gene Simmons. 

We choose Gene because not only does he provide shock value when in costume but his work ethic and business skills are impressive. 

He's definitely worth studying and he show "Family Jewels" on A & E can easily be written off as just another reality show...but it's more like a business show than fluff TV.

The next picture is a quick shot of the room.  We've grown.  This is only our third event and we had 98 Income for Life members turn out. 

These members are people interested in fundamentally sound real estate investing.  Not "hype", but real investing for real results.

We also announced the creation of Rockstar Real Estate Inc. 

This is the new brokerage arm of Income for Life.  (That's the new logo you see in the picture.)

We're no longer tied to another real estate brokerage, we control our own fate now! 

For those that know us they also know that this is the beginning of a dream we've had for a few years now. 

To have a real estate brokerage in Canada run by investors, for investors.  By Canadians for Canadians.  Let the fun begin!

Next we had Mike on our team unleash his implementation of the idea "pay it forward" from the movie of the same name. 

His "chain of action" is going to land him a seat on Oprah. 

We'll chat about it more here in a few weeks, the website is almost done and Income For Life Members will be the very first to get the Chain of Action Key Chains!

To end off the night we invited Harry Stinson (a well known Toronto real estate developer) to share his thoughts on investing.

He has had highs and lows in his career and continues to persist in the face of some of his biggest challenges to date. 

The room was silent when he was speaking, he was a better presenter than I had expected.

All in all it was an amazing evening and we're planning for the next one this Fall already! 

Until next time...be a Renegade!

Tom & Nick.

Herd Mentality

No matter what you do or where you are you can view the mob mentality in action.

I actually wrote this blog post on my Blackberry while waiting for a movie to start but I had some problems with the Internet access so I couldn't post it until now.

Because of the rainy Sunday afternoon my wife and I decided to head out to a movie.

And with the big release of "The Dark Night" this weekend it was the obvious choice.

For the first time in a while I was willing to line up to spend hours with my eyes glued to a screen......but hey, we all need a break sometimes (although since I am writing this right you could say I am still working)......I know my wife would ;-)

Once they opened the doors there was a small stampede in front of us to get into the theatre, all through the one door that was open. It was a typical 'monkey see monkey do' scenario

Since I often notice this type of behaviour, I always look for another option, and of course right beside the stampede there was another door only it was closed.

It was very easy for me to think for myself and open that door. We quickly by passed the crowd into the perfect seats that everyone was pushing for.

Now I am not telling you this thinking I outsmarted people......opening a door at the movies is far from something that elevates you to another level.

But it is yet another example of how you finish ahead by not following the herd and acting on your own accord

Why couldn't all the people that were trying to jam themselves through a single door see such an obvious solution?  Because they had their heads in the butts of the the rest of the herd in front of them.

People often think that it takes timing and luck to see opportunity.  But it doesn't, you just need to start looking for it.

And by training yourself to look for solutions no matter what size the situation is you can only finish further ahead.

Who knows the opportunity that might be behind the next door I open?  I am happy that the herd will continue to pass it by!

- Nick Karadza

Canadian Lending Rules Are Changing

Have you heard?

The Canadian government has decided to limit access to some of the newer mortgage programs that were available to home buyers.

You can take a look at the article here

Perhaps the best part of the article are the comments at the bottom.

It never ceases to amaze me how negative the majority of people I speak with are (just like the comments in the article).  No matter what the news is, they focus on the negative.

I applaud Sunil (check the article comments) for using a 40 year mortgage to his benefit.  It is people like him that finish ahead of the crowd.

Now, on to the mortgage changes......

To sum it up there are two major changes that have been made.  The government will not allow CMHC to insure mortgages amortized over 40 years, or mortgages with 0% used as a downpayment, any longer.

So what does this mean to you and me?

It can depend on a lot of things.  There are advantages and disadvantages depending on your what you are using your mortgage for.

The point of view differs depending on whether you are a homebuyer or investor as well.

There is one constant and that is the anticipated effect these changes will have on the real estate market.

Chances are anyone that can only qualify for a home with these programs may be anxious to get into the market before they come into place in October which could cause a slight bump.

Then, with less people being able to qualify for homes because of the changes there is a potential that this will contribute to a bit of slowing in the market.

WAIT....DON'T PANIC!!

This will not cause a market crash.  Don't fall into the trap of listening to the negativity around you.

In fact in you are an investor this may be some welcome news, as your rental pool is about to grow with qualified candidates.

I look at this as good news for my current and future investments.  I think this only makes the investment market stronger.

As an investor it is extremely important to get the 'real' story and look behind the headlines and make yoursefl more educated.  How does the news relate to you specifically? in your specific investment and market?  That is how success is bred!

Unfortunately my day is completely booked today so I don't have much time to elaborate.  But this is something we will be looking at in the current issue of our Income For Life newsletter that all our private coaching clients receive.

If you are an investor in Ontario you should check us out.  Our application form is online at www.IncomeForLifeApplication.com we work hand in hand with all our members to ensure their success.

Enjoy the weekend!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

Long Weekend Lessons

So another long weekend is upon us, well kinda, I guess.

The work day on Monday throws a curveball at us this year but I think many of us will find a way around it :-)

So how can long weekends and real estate investing possibly mix?

It gives us a chance to notice things that are going on only a short distance away from us.  Sometimes there is great opportunity right under our noses but we are so ingrained in our daily routines we never get out there and explore.

Last year I was driving along to 401 on the Canada Day weekend to Kingston.  And although I was getting close I knew I wasn't there yet, but I still saw a development of big box stores being built.

I quickly began scanning for a sign of the city I was in and it was.......are you ready for this......Napanee, Ontario.

The only reason I even knew the name is because I had heard the Canadian pop singer, Avril Lavigne, grew up there.

But here I was in Napanee watching some of the biggest corporations in the world expand into the area.  Now for any real estate investor this is big news.  This is a very positive sign of future development and growth.

This is something I would not normally have seen but I made a mental note to follow its progress.  So not only was I able to escape for some relaxation time, I was also able to continue realizing opportunity.

One of the other things you might notice this long weekend is some newer developments of condominium townhome bungalows.

Now that's a mouthful.

This has definitely not been a popular type of development in the past.  But keep your eyes peeled as there are more and more of them on the way.

Remember, the Baby Boomers are starting to retire and downsize.  This type of housing, away from the city, has low maintenance and not many stairs.

Once you notice one of these developments you won't stop, because they are popping up everywhere.

There are things going on all around us but often because we have the same trip to and from work we don't get the opportunity to see what is going on.

If you are taking a trip this weekend keep your eyes open.  There is a lot to learn and realize about the areas you are passing, and there is a mountain of opportunity out there if you realize it.

And, most importantly, be safe!

- Nick Karadza

Got Problems? Go to 2,500 ft.

We often talk about getting over hurdles and 'pushing thru' challenges.  And these are both important points if you are going to be successful in anything you do especially Real Estate Investing.

But one other extremely important trait is to be able to view things from a distance even when you are caught right in the middle of them.

The picture is of me getting ready for my first ever hot air balloon, and boy was it a treat!

It really was a fantastic time, but more than that it really shed some light on things for me.

It made me realize that when you are caught up in the middle of a tough situation, one in which you think there is 'no way out'. (as a side note, there is always something that can be done) Often the best thing you can do is get away from it. 

No, I don't mean run for the hills and never turn back! 

I mean take a step back to get a clear picture.  Sometimes the solution is right in front of you but you are so entrenched in things you can't see it.

The perfect example hit me in the hot air balloon.  We were in the midst of a peaceful flight, it really is the most surreal, relaxing way to fly. Then down below I noticed a maze made out of hedges.

Looking at this maze from 1000ft. in the air, as we were rising all the way up to 2,5000 ft., the solution was clear.

Because I was not in the middle of the problem, being blinded by obstacles, I could easily figure out the best course of action.  I could take my little finger and trace my out with ease.......yes, I really did that :-)

But it reminded me of the times that I needed this sort of clarity, this bird's eye view.

That is why so often when you are able to get away from a problem it seems crystal clear when you return.

But there is one thing we have to be careful of!

We can't go too far away, because if that is the case you aren't viewing the issue or thinking about it enough to move forward. 

Let's go back to heights for a second.

At low altitudes the maze is crystal clear.  But if I were to go too far away from it I wouldn't be able to figure it out at all, it would look like one big glob of green.

You can take a look at this video of me skydiving to see what I mean, or check out Tom's.  When the airplane door opens we are about 10,000 ft. in the air.  You can see that there is not much detail to anything, most things blur together.

If I was trying to solve the maze from there I would have a much harder time.....and that's not including the fact that I was terrified!

So there is a balance to where we have to be.  It can be extremely important to view things from a distance but stay focused and stay on it.

If you can stay in the middle ground there will be no problem you can't overcome.  Each time you do it it will become part of your subconcious and only make it easier the next time.

So the next time you have a difficult tenant, or a little hiccup with something at one our your investment properties, and you can't figure out a way to make things flow easily again.  Remember the solution is there you might just need to get up to 2,500 ft. to figure it out!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

Happy Birthday......But Should I Really Celebrate?

This past weekend I celebrated my 30th birthday.  My wife and I arranged a BBQ at my home for our friends and it was a great time.  I love an excuse to get together with family and friends and enjoy each others company.  After all, life really is about relationships isn't it?

Having this birthday and gathering put me into a bit of a reflective mood.  It made me realize something.

We celebrate birthdays like they are an accomplishment, but are they?

Most people view the fact that they have lived another year as something to recognize, no matter the circumstances.  But what if we barely scraped through the year?  Or we sat on the couch and did nothing with the gifts that we have all been given?

Or maybe we got up every morning tired and grumpy, dragged ourselves to work complaining, did barely enough not to lose our job, moaned about traffic on the way home, ate a high calorie dinner, and plopped down in front of the TV for the night.......for a whole year!!  I know I can think of a few people like that.

Is that really something to celebrate?

Not as far as I can tell.

We shouldn't be celebrating the fact that 'we made it' we should celebrate 'what we made' of the last year.  What accomplishments have I completed?  What goals have I achieved?  What have I contributed to my legacy? How have I grown as a person?

It should be the over achieving answers to all those questions that should be celebrated.

I have seen investors just be happy that they purchased an investment property.  But they haven't done anything with it!

They will take time just to bask in the glory of becoming an 'investor'.

I've got news for you, that vacant, run down house you own, it's not much of an investment unless you do something with it.

You have to overcome the hurdles and make something of it.  Money usually being the prime objective.

The work or effort that it takes to make it a success can vary, but that is what should be celebrated.  Once you have taken a journey down the road in which that investment will lead you, and you have overcome some of the potholes and turns, you will be a better person because of it.

And then it's time to celebrate, and make it the best party ever.

Let me clarify one thing.  I do feel that being around for another year is a gift for us all and I am grateful for it.  I also think that anyone that makes an investment should pat themselves on the back as it can hard breaking through the fear barrier.

But let's save the real celebrations for our accomplishments.

On my birthday I was continually congratulated for making it to 30.  That is great but to me the real celebration is around the real estate I acquired, or the book I have co authored (which you can find on Amazon by the way :-) you can click here), or the hundreds of private coaching clients I have helped make hundreds of thousands of dollars.

Now that is a year to remember.  These are achievements worth celebrating.

Before I forget about the investor I spoke of earlier.......He did the work he needed to and turned his property into a great investment, and the celebration followed shortly after.  But the plan for next time is to get to the party sooner.

So make this your year to really party!!

If it is real estate investments you are striving for get out there and do it.  When you look back you will have grown personally and financially because of them.

And the parties will just keep getting bigger and better!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

Look at People as Dollar Signs Baby!

This might sound a bit harsh, but hear me out.  I promise there is a great lesson here.

But first let me explain why 'Baby' is in the title........OK there is no real reason except I thought it sounded good.  Now that I have come clean let's get to the point.

In business it is important to understand your costs and your return on investment.  I think that is fairly simple.  But it seems that many people just have not clued in yet.

Recently I ran an ad in the local paper by our offices.  This is a company, and ad rep that I have spent tens of thousands of dollars with in under two years.  For the first time since I started working with this company they ran the ad without my final approval.

I am not an overly picky customer so I would have been fine with it EXCEPT they made changes to the ad that I didn't ask for.  So I have now paid for an ad (just over $600) that is not what I had requested, and I wasn't given the final say on the changes.

Now, I have never been in advertising sales but what I can say is that I have placed many ads with a lot of different companies.  And I'll let you guess what the one constant thing is........Right, they all send you a proof before the ad runs to make sure you are happy with it.  I even get this service with a $100 classified ad if I ask.

So I decided to call and mention that I was not sent a final proof of the ad for approval and changes that were not requested were made.  I was not angry but I felt that there should some sort of recourse for such an incident.  Really I thought this would be a small thing that we would get resolved and move forward......it wasn't!

I will keep it short for our purposes but by the end of it I was in contact with the Advertising Director at the paper.  And after a couple of emails to which he did not even acknowledge that they ran an incorrect ad or answer any questions posed to him, he finally called me.  His tone was harsh and condescending but he grudgingly agreed to a 50% refund.  Which works out to about ($300 + tax). 

It sounds good, but the only problem is now I am left with an entire different outlook on the company as a whole, and it persuades me not to do business with them any longer.

Let's look at this because it applies directly to business and real estate investments.

Let's guess that I have only spent $15,000 with this company, and up until this point was happy with everything.  Because of the way I was treated for their mistake, which they did not verbally accept responsibility for, I am now left with a bad taste in my mouth.  All because of the $300 I has asked for.

If handled correctly this could have been the best $300 they ever spent.  If that's what it took to keep me happy and spend another $15,000 that would be a 5000% return on their investment in under two years.  Did you catch that? 5000%

Would you be willing to spend $300 to have a customer with a proven track record that shows that kind of return?

I would everyday of the week, and do it happily.  And so would any other smart business owner.

The problem is that this Advertising Director didn't understand the long term value of customer or the big picture of a business relationship.

I agree, it is sad but true.  Think about the owner of the paper that just lost out on this future revenue, he or she must be thrilled right?  Nope!

How does this apply to real estate investing?.....Good question

The same principle applies.  You should be looking at your potential customer thinking about the return on your money for working with that person.

I have seen negotiations that would make an investor over $20,000 break off over paint that would cost $500.  You can do the math on that one.

This investor wasn't looking at this person as dollars.  If he was and he realized the dollars these poeple represented, he would have, and should have spent it.

In business or investing each person or customer we come in contact with has a value to them.  Our job is to determine the value, and if justified, establish the relationship needed to maximize it.

Investing is a business and as with any other one, it is a heck of a lot easier to keep good existing customers (or tenants) that to find new ones that are good.

That is why I just spent $300 on a new BBQ for some good tenants that I have.  I could have said 'No', it was not my obligation to do it.  But through working with them over the last three years (remember, I am 'working' with them, it is a business) I have realized they are people I want to continue dealing with.

It is becasue I see the dollars in our relationship and because I value them.  And little things like a BBQ help them value me as well.

Oh and by the way, I didn't even flinch at the request I smiled and agreed.

Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

Quit Being a 'Loser'!

'Are you a winner or are you a loser?' this was the questions posed to me a few weeks back.  It sounds like a fairly simple question right? Let me explain.

I was sitting at a table with Lloyd Irvin who is a master at getting many, many things done, all at once!  We were going over some other topics when he told me how he operates.

Every time he wants to get off track or do something to waste some time in the day he will ask himself 'Are you a winner or are you a loser?' It's a big question. 

Then he will analyze what he was going to do and if he thinks it is a loser task he will move on to something productive.

I don't know about you but I don't wake up in the morning and look in the mirror at a face of a loser.  This line of questioning gets my competitive fire burning.

Throughout the course of the day it is easy to get distracted from the productive tasks, typically those are the ones that are longer and more complicated than the simple ones like answering emails or more likely checking out your favorite time wasting site while at work (Facebook, YouTube, News).

It really breaks down to this.

The key to success is implementation you could have all the knowledge and drive  in the world but if you are not doing anything with it, it is wasted. 

You need to implement.  Most of us get so tied up with useless tasks that we don't ourselves the opportunity to be nearly as productive as possible.

If we look into our habits and what is holding us back it is easy to see most of the time.  Often it is filling our time with the easy, reactive things that come our way.  People wonder how successful people can accomplish so much.  There isn't a big secret that they are hiding, it is their commitment to being productive that sets them apart.

I am wrapping up a week where our office was a ghost town since so many vacation schedules collided.  To make matters worse I was committed to a full time course as well.  But things still had to get done.

I didn't have the luxury of any extra time at all.  I was forced to stay focused and pick the most productive tasks to keep our momentum going. 

Have you ever been in such a situation?  Perhaps the final days before a vacation?  I was forced to fit a full days work (which is not 8 hours when you are running multiple things) into five hours every day.  Split up between early morning and late evening.

It is amazing what you can do when you are forced to.  When you sit down and focus on the tasks of winners.  But if you don't have that fire behind you pressing you forward most people start adding the loser tasks back into their daily routine.

There were many times in the last week that I wanted to take a break, and I had to ask myself if I was a winner or a loser. 

It sounds kinda corny right? I agree!

But what isn't as laughable is the amount of productive tasks that I plowed through day in and day out. So instead of being a loser and sitting back in your chair today, the day before a holiday weekend.  Decide to do something productive.  Make the most of your time.

I can tell you that the successful winners in life are not sitting around surfing the internet aimlessly or checking their email 10 times a day.  You just have to choose to be one of them and, most importantly, act like it!

- Nick Karadza

p.s.  Remember, if you're looking for Real Estate Investing information, tips and guides straight from two Canadian brothers who work with Canadian Real Estate Investors investing in their own backyard sign up for the Renegade News Letter by clicking here!

"Fat Dog Don't Hunt"

Nick and I were recently down in Myrtle Beach discussing real estate investments with a great group of people and someone next to me blurted out these words, "Fat Dog Don't Hunt".

For the next few days we've both been blurting it ourselves.  Not sure why but it really sticks.

I wrote about it over at the Income for Life blog, check it out by clicking here.

You'll never look at a fat dog the same again!

- Tom Karadza

p.s. Yes, that's really a cartoon representation of me below, wait until you see Nick's!