Jan 18, 2019
I am passionate about helping new and experienced real estate investors grow their real estate portfolios and build a passive income lifestyle that gives them greater financial options and opportunities. My vision is to empower people by educating them on financial options.
Over the last nine years, I have built my own real estate portfolio to over 520 doors with a value of $60 million. I focus on long term buy and hold, apartment buildings and multi-family units. While I continue to add doors to my portfolio (I added another 85 in 2018 alone and have another 87 under contract to close shortly), my focus is on training others to do what I have done.
I am a real estate investment coach. Multiple Ways to Wealth is a training, education and membership organization for real estate investors that I have developed. It is based on my experience, knowledge and training.
I provide training, coaching and educational resources. Through my programs, I share my real-life experience and practical knowledge. I give those in my programs access to my network of successful real estate investors to learn from their knowledge and experience.
My specialty is finding the money. I know how to find, attract and keep investors happy. I help my students attract the right investors so they can add hundreds of doors to their portfolios by investing with joint venture partners.
Living the life you desire takes work. I am a firm believer that with the right mindset and the best training we can solve our biggest problems to live the life we deserve.
Hey, hey. It's Edna Keep here. Welcome to the seven figure real estate podcast. I'm your host. I hope you enjoy the episode.
Hey, good morning everyone. Edna Keep here live for free coaching Friday. Okay, so welcome. I heard a lot of really positive feedback this week about mindset Monday. A lot of people are really finding it's a great way to get them focused for the week and thinking positively and thinking about what they can do, as opposed to what they can't do. Get them thinking about what they did do last week as opposed to all the things we didn't get done because that's a big one. I just want to say that today we're going to talk about retirement, RSP’s and real estate. And again, if you have any questions about anything, go ahead and ask them and I'll come back and answer them. Anyway, one of the things I want you guys to think about is the fact that there is a lot of baby boomers in our country.
First of all, what is a baby boomer? Well, most of us know this, but its people born in the years following World War Two when there was a temporary sharp increase in birth rates. So, the baby boomers have actually ran a lot of things in our country. They got the minivan, they made a ton of money off that because everybody was having kids and housing and they just ran a lot of things. So, if you've never read a book about baby boomers, I recommend getting one because it's really interesting how that whole demographic has changed things for us. You know, we all think that we're meant to be rich. Some of us are working towards it. There's a little bit of entitlement there, but you know what the biggest thing is that we've had a lot more say, even as we age then people used to in the past. So, I find that really, really interesting.
So right now, there are nine point six million baby boomers in Canada, maybe even more. What does this mean? Well, it means that a bunch of people are set to retire all at once and when they do these Canadian baby boomers will squeeze the government budgets and they'll do that with higher costs for major services, like healthcare. I don't know if you guys have paid attention, but there's a number of retirement homes coming up all over the place and the reason is because the government realizes that we need them, more and more people getting into their late sixties, seventies, eighties. They need that place where they've got three third and fourth level care and so we have to cater to that. There's no doubt there's going to be some money to be made in those areas because I strongly believe that some of that stuff is going to have to be privatized because the government can't handle everything. Already they've got a lot of debt.
According to the National Post in 2014, the Canadian government paid nine point two billion dollars’ worth of interest payments on pension-related debt. Does that even seem possible? It is. So, you know, so that's something we have to be aware of. Another alarming fact, the pension system for federal employees was already underfunded by more than a hundred and fifty billion dollars in 2012, representing Ottawa biggest liability next to hundreds of billions of federal debt. So, let's not forget that once those baby boomers all retire, there's going to be that much less taxes going into the system. I mean there will be taxes coming from people's RSP’s and stuff like that because it's taxed just like income. So, we will have tax coming from that. But you know what, the government runs out of money and that's what they do is they increase our taxes. So be aware of that.
So, when they say there may not be a pension left, when it's time to retire, it's probably wise for you to listen up and really have a good solid plan B in place. I feel we're in a very unique time in our history. Over the next twenty to thirty years we'll see a large spike in the aging population. And because of modern medicine, many people are living longer and longer. Things that used to kill people are now just making them ill and they last a lot longer and you know what the government again, and they probably aren't going to be able to carry this load. So, when you see privatization, you know, don't balk at that because first of all, for people that have money, they'll spend it because why not? What are they going to do with it? If they don't spend it, then they die or they're very, very uncomfortable.
So, baby boomers with money will be spending it and the ones without money are the ones that are going to absolutely have to rely on the government. I used to have some different clients that would say, “well why would I save all my money and look after myself when I'm old, when my neighbor over there, he doesn't save a damn dime. He goes everywhere and he's drinking every weekend and he’s got a new truck, he doesn't save anything and I'm going to have to support him when I retire because I saved my money”. Well, you know what, we can't change that. That's life. That's how people think. Some people don't think about the future. They don't think about that at some point they're going to be too old to work. And you know what it happens to everyone. You know, people that I know that are energetic as can be in their fifties, you know, when they're seventy and more, that energy's gone. They cannot physically do a lot of the work that they used to be able to do and nor mentally, they're tired. They're more tired, you know, stuff like that.
And I do think you'll see a group of baby boomers that will, you know, keep young. They'll look after themselves, they'll eat properly, they'll exercise, but you'll still get a lot of them that don't. And don't be the one that relies on government because then you know what, you're going to be limited in what you can do. If you build up your own wealth, well then you have a say, maybe you own that retirement home that you and all your buddies live in. Wouldn’t that be cool as opposed to being the one who gets way down on more because they don't have any money and they get the crappy food and all that.
You want to be in the high-end home where you know that you've got good people looking after you. And the best people go where the money is there's no doubt about that. Terry says, “I already feel too old to work”. How old are you Terry? That's possible. But I know what you mean. You know what, as we age, we realized that it's not so much about physical labor anymore. It's about getting this thing to work properly so we don't have to work as hard physically. And, I mean, women tend to figure out that a little bit earlier. But men, a lot of times they just think they're going to be strong and healthy forever and that doesn't always work. So, it's time for us to put those plans into place.
So, I do have a few ideas for you today of what that can look like. We need to learn how to become the CFO of our own investment portfolio. We cannot sit back and hope and pray that somebody else is going to look after us. Yeah. Forty-two is pretty young Terry get back to work. Just kidding. Hi, guys come on in. We're going to have special guests here this morning, two of my young students have stopped by. We're working on some plans today, so I'm going to have them talk to you in a few moments, but I'm going to finish up here. So anyway, here's the problem we're facing, nine point six billion boomers, a government in debt to pension for a hundred and fifty billion, nine point six less people paying taxes very soon, strained government services. And most importantly, the boomers are relying on pensions. RSP’s are mutual funds to carry them through their golden years. If we don't have a pension and if or when the stock market crashes again, we'll have a heck of a lot of snowbirds without any money who will be moving in with their kids or grandkids.
So right now, parents and grandparents, if you've got those children staying at home a little longer than you expected, you know what? Suck it up because in another ten, fifteen years you're going to be moving in with them or most of you are. So, you better be nice to them so that they'll be nice back. So anyway, this potential crisis is going to affect people of all ages. What can we do to brace ourselves for an obsolete pension or market meltdown? Well, one of the things I'd like to suggest is this isn't everything for everybody, but it's one thing to keep in mind. Real estate investing, get into real estate buy a couple houses, have a couple long term rentals that tenants are paying off for you. And Yeah, you know what? It's going to be work. There's going to be times, especially if you decide to manage it yourselves, you're going to be called out to fix toilets.
There's going to be times when your place is left a heck of a mess, but you know what? Think of your alternative. You're going to sit on your butt and watch tv every night, you go get that house. It's a little bit of extra work, but at least you have a retirement plan where somebody else is paying you some money every month that you can't rely on from the government. And I love this quote from Franklin Roosevelt. He says, “Real estate cannot be lost or stolen, nor can it be carried away, purchased with common sense, paid for in full, managed with reasonable care. It's about the safest investment in the world.” And you know, the banks think real estate's one of the safest investments in the world too. So even though maybe the safest way is to actually have it all paid off.
The second safest way is to leverage it and get your tenants to pay it off for you. So, it doesn't have to be paid cash now, but in fifteen, twenty years when it's ready to retire, then you start collecting all the cash flow after your mortgage is paid. So, when the stock market crashes and your money just vanishes into thin air, well you'll still have a place for a tenant to go and live and collecting rent money. So even if the housing market takes a temporary downturn, a property investment cannot just disappear, maybe you have higher vacancy, maybe you have not the best tenants. Maybe you don't even have a lot of cash flow the whole time that you're owning it, but your tenants are helping pay it off. So, it builds your wealth for you.
So, some of the ways are: you can use existing RSP’s to secure investments in real estates. And there's many different ways. One is through exempt market dealers. You can get apartment buildings as a group or you can find people, like us, who invest in real estate and are always looking for investors. Or you can be the person that invests in real estate and help save the rest of your family or friends and take them along with you. Wouldn’t that be a cool thing to do? So, here's how RSP’s are able to lend money, secured on a title by a mortgage on a property that's the second way. So, first way, exempt market products you can buy in or you can invest with private investors like us. Or the third way is, I guess I said second, but I meant third. You can actually lend your RPS’s as a second mortgage or even a first mortgage, if people are doing fix and flips or stuff like that, you can put your RSP on a property and earn a decent rate of return on them.
Just be careful that the people you're dealing with know what they're doing because in a fix and flip, that money can get eaten up pretty fast and you don't always make your money back. So, make sure that the people you're dealing with have done this before and done it successfully. So, take the money you already have and leverage it to create a safer, stronger investment. The equity build on property will happen in your sleep while someone else makes your mortgage payments. I think I've mentioned before that right now we've got over three hundred thousand dollars a year in mortgage paydown alone and we're not paying it. That's the coolest part. I love, absolutely love that. It's my favorite part about real estate because I know I can have my tenants pay my buildings off, I can go do whatever I want. I can have free time. They're going to work every day to pay off my mortgage. Isn't that cool?
Plus, potential rental income can be you're spending money for all the little extras that you want or if you think you would like to be the person that retires early, maybe ten to fifteen years from now. Then just put every penny that you’ve got towards the mortgage or get two or three properties where tenants are paying it down and then at the end maybe sell one of them and keep two or sell two and keep one that's totally paid off. So then maybe you got a thousand dollars a month in cash flow and you know what? If you have a vacancy every once in a while, okay, you don't have a thousand dollars a month, but at least if you get out there and get working, you can get a tenant in there and have them paying for you again.
One of the things I want to explain now is how you go about putting your RSP’s as a second mortgage. So, what it's called is arm's length mortgage and as long as it's not you dealing with brothers and sisters and parents or kids, you can loan your money to someone else and put a second mortgage on their property. Now if you want to go into great detail on that, one of the books that I highly recommend, and it is a bit old, but you know what, it still works. It still works. There might be a few rules that have changed, but it gives you the general idea. And the book is called the ‘RRSP Secret’ by Greg Habstritt and I know you can buy it on Amazon. And that is a great way to learn about how you can take your RSP’s and be in control of them. You know what? And with this information, share it with people. Share with people that you know, share it with people that you love, share it with people that you trust, and you want to help, you know, let them know. We're actually doing a three-day event coming up at the end of March. There's going to be a ton of really good information on this and we've got speakers coming in from out of town. If you're not on my email list, get on it. We'll be sending out details. We've got details of the speakers that we have coming in. Very powerful group again this year. This is our third year. We've had excellent feedback from the past and like I said, we've got some really good speakers coming in.
One of the next things I want to point out is next Wednesday is our monthly meeting for our Profit in the Prairies real estate investment group. It's the last Wednesday of every month and this month it happens to be the 22nd because it's a short month and it's at the Sandman Hotel and Suites on Victoria Avenue, kind of behind Moxie’s there. Wide open. Come on in, first-time outs free. Fifty dollars a month to join as a member, or fifty dollars a month even just for a drop in if you just want to show up every once in a while. This month our guest speaker is a city councilor and real estate agent Jerry Flegel, so I'm sure he'll have some good takes on what's happening in the Regina real estate market. He’s going to talk about some new property developments and even investment opportunities that are happening here. Doors open at 6:30 for networking and if you haven't attended before, please join us, the first-time out's free. You'll get to see the value that we provide. And believe me, it's worth every penny.
Register for your spot on event brite. That just allows us to plan for how many people we have coming out. If you don't live in the Regina area, you can still be an online member and then you can gain access to the recorded videos every month. We also have, oh and Amanda's posted it online where we can get. Oh, we will always give people a chance to present any possible deals that they might have at that evening. So, a good opportunity if you've got any deals to present, good time to ask any questions about anything that you're wondering about. We always have at least one speaker, sometimes two and great opportunity to network with like-minded individuals. If you're struggling, get out there. Get out there and meet the people that are doing. And seeing what the heck they're doing that's different from you. Oh, and so the website, if you want to check that out too is ppreig.ca. And if you want to learn more about getting started in real estate, you can go to my website which is EdnaKeep.com. There are tons of free resources there, so use them up. It'll give you an idea if it's something that you want to look at.
So, Rob says, “We're thinking that we will wholesale the Medicine Hat strip mall as our investors are favoring apartment buildings. Can you comment on how we can get the word out about this deal and how we go about it?” First of all, I would post it both on the site. If you're a member, you can do that I'm not sure if you are yet, Rob. Or post it in the joint venture secrets group, post in your ninety day to five k group because those people are always buying, and it might be a good way to either partner up if you still want to stay in the deal or just wholesale it if that's something that you want to do.
Terry says the 27th is the deadline. So what Terry's talking about is the three-day event that we have coming up. We have a special deal that we are offering free tickets if you sign up early, now there's one catch. And that is, you need to commit to coming. Basically, what you need to do is put in a ninety-nine dollar deposit down to save your seat. When you show up, you get that back, you don't show up. We get to keep it. Now, the reason we need to do that is we have a lot of people that indicated interest and then, all sometimes, they just don't show up and they don't think about the cost and the effort and everything else that it costs us to put an event like this one. So, we do need support by you guys to be able to do that.
It's not a one man show. It's not a one woman show, people need to do this as a group. If we're going to grow Saskatchewan, we need you to come out. We need you to support this kind of stuff. We'll support you, but you need to support us back. It's going to be a very great three days. Like I said, we've had nothing but good positive feedback. Harry says, “so I can bring my wife in for ninety-nine dollars?”. Absolutely. And Harry, you're a member of ninety days to five k. So, you get your free ticket to. I still need you to put your deposit down because I need to know because we're shooting for two hundred people this year. So, if you're not coming, I need to fill that seat, so I need to have committed people ahead of time.
And then as of February 27th is when there will actually be a fee if you're not registered, meaning that it'll be ninety-nine dollars and you don't get it back at the door. So, the only people that get the money back at the door is the ones that pay it. And I can't remember, check your emails or maybe you can let us know. Is that February 24th? I think the deadline is February 24th. There's a lot of stuff that needs to be planned. We've got speakers we've got to pay for. We've got the hotel rooms booked. I've already had to put down a nice sized deposit. I have screens and I've got sound people that I've got to pay and like there's a lot that goes into putting on an event like this and we just need to know that people are going to be there and support us.
And share it with anyone that you think might get value out of it. It might be an investor, your potential investor, it might be your kids who maybe want to look at something different than going to university and spending thirty, forty thousand dollars a year. They can earn while they learn, and you know, take some real estate courses here and there and actually be making money while they're learning this. Now, speaking of that, I'm going to do a little shout out right here and I think Tyler is actually listening to me. So, Tyler and Bailey, if you guys can come to my office, I want to introduce you to everybody that's on the group here. Tyler and Bailey are students of mine and have been since I believe it's about May. And they took the ninety day to five k program and got a ton of value out of it. They'd been in the mastermind since and they're little rock stars, you know, they've got a twelve unit now that they took possession on December one.
They're are doing really well with it. They're managing it very proactively and we're working with them to purchase two more twelve units actually. And so very excited and they're actually going to be giving up their full time, day jobs and coming to work for me. So, we want to be a little bit more proactive about reaching out to you guys, see what you need, what we can do for you, different things like that. We want to give as much value as possible. So, we're going to be checking in with you in what classes you'd like to hear, what topics you'd like to hear about when we're doing real estate free coaching Friday and so they're going to be my people doing that. And of course, they've got some success, so they can share with you what they learned. And, you know, sometimes a person needs to hear it two or three times, two or three different ways.
Hi everybody. This is Tyler and Bailey. Yeah, maybe stand back a little just because. Anyway, this is Tyler and Bailey and like I said, they're going to be working with me. So, you're going to start to hear from them, you know, they're going to be helping with educating you on what they've been able to do with real estate in such a short period of time. Do you guys want to share with the group a little bit about where you guys are, what our plans are for the upcoming months and even how you got your building so early and so young?
Probably last April we started, and we knew nothing about real estate, nothing at all. Literally nothing. And then next thing you know, fast forward in December 1st when we signed for our first apartment building, twelve-unit building, a brand-new building. So, we've been crazy busy with that. And then we're currently working on another deal worth around three million right now. So, we’re working on that as well. And it's just been escalating like crazy. But really what got us really started was doing the course and getting the education and the knowledge. That's the biggest thing. But on top of that, we work so hard. I mean we were out every single day nonstop. We don't watch TV, movies, nothing. It's always about the real estate. And that's why we've been able to fast track.
And also, when we first started, like Tyler said, we didn't know anything about real estate at all. So, the main thing that set us off was Emma’s course ninety days to five k. We had no clue, we were going to spend that money on a down payment for a house in the hood, that needed so much work that we did not even know how to do or how to start anything. So, we decided, we took a step back and we went through Emma's ninety days to five k program. And from there it's just escalated us so quickly and so fast.
And one thing is too that, so real estate’s been escalating like crazy and we're staying so busy. And recently we both are going to be doing our real estate full time now and work with Edna full time. We both just quit our jobs. I was working at Mercedes for around two and a half years. And I was working at an industrial scaffolding and I hated it. So, it got to the point where we really need to go full time with the real estate because the real estate was taking over. We were getting all these calls, all these emails. We got to send all these documents to the lawyer, the accountant, everything while we're at our day jobs and we weren't able to focus on that. We would be able to balance it, but we realized that our jobs are holding us back from really taking our real estate to the next level to where we want it and it should be. So, we decided to take that leap. For a lot of people, it may be a little bit harder to take that leap. But we just said, you know what? We got to give up who we are now for who we want to be in the future. It's just holding us back because we are at the point now, we’re only working two hours well, from about seven at night till about ten, so only about three hours a night. We've made it this far, so we thought, well if we take out the other eight to twelve hours that were working during the day, imagine what we can get to. Yes. So, we're very excited for what the future has to bring. We look forward to speaking with all of you. We're going to start doing our Facebook lives and all that. Now we finally have time to do more networking online for our own sake as well, so we're super excited for that.
Perfect. Okay. Thanks very much, guys. I really appreciate the step in here, we are going to. I'm just going to do a quick check, see if I have any questions here and then we'll probably sign off. Thanks again for joining us and we will talk to you Monday, mindset Monday. We're going to talk, we've got some really good stuff planned so be there and we'll get you guys all on track. Take care.
Thank you so much for listening. It's my sincere intention that you got value from this episode. If you're interested in learning more about building your passive income through real estate either by investing with us, as a joint venture partner or as a student discovering how you can attract investors to your deals and build your seven figure real estate portfolio by helping others build their passive income. Check out my website Ednakeep.com or watch my free masterclass Ednakeep.com/90daysto5k.