On March 6th, join us for an exclusive workshop to elevate your real estate investments using advanced tax strategies! This online event is packed with actionable insights and strategies to maximize cash flow and accelerate your journey to financial freedom.

Here’s what you will learn:
?Innovative ways to leverage your Home Equity Line of Credit for investment purposes.
?Strategic tax planning techniques to reduce liability and increase net income.
?Step-by-step guidance on using Rent to Own investments to attain financial freedom quicker.
?Exclusive insights into using your primary residence to fortify your investment portfolio.

Event Title: Maximizing Cash Flow with Rent to Own: Advanced Tax Strategies Workshop

Date: March 6, 2025 (Thursday)

Time: 6 PM to 8:30 PM EST

Register here: https://webinar.zachcahill.com/advanced-tax-strategy

The post Event on March 6th: Advanced Tax Strategies: Maximizing Cash Flow With Rent to Own appeared first on Andrew C. MacDonald.

First is the chart the media will probably like the best since it looks scary. If we just look at prime rate since 2009 (when rates hit new lows following the 2008 financial crisis), it seems we are at record highs (we aren’t even close).

Second is a longer term chart of the last 80+ years and you can see prime has usually been at 5%+.

As an investor it is important to put things in perspective. Turn off the TV and focus on the opportunity this will create.

1) Prices will continue to soften in the short term

2) You can still line up capital by adding a secured line of credit on your home if you haven’t already done so (at near peak values)

3) You can actually get a conditional offer accepted again (remember those?!?)

4) You will be able to buy hard assets (real estate properties) that hedge against 40 year record high inflation WITHOUT competing against 27 irrational people making emotional offers (and then knowing you overpaid if you actually succeed against that many crazy frustrated buyers)

The sky is not falling. Real estate is never going to $0. Take a deep breath and look for the opportunity.

The last decade has seen historically low interest rates and we have grown accustom to cheap money. Since early 2020 when central banks slashed overnight rates to near zero we have seen borrowing at near all time lows for an extended period. After a couple years this starts to feel normal, but it’s not. Over the longer term a more normal prime rate has been 5%+ and we aren’t even back to that level yet (as of July 13, 2022). In the next few months you’ll see prime increase by another 1-2% depending what happens with inflation and economic output.

So what does all this mean for investors and strategies? Well, a couple things are going to be tough:

1) Flips are not going to be easy in the coming months but can still work for smart investors who buy off market properties from motivated vendors and even then having a 2nd exit strategy or plan B would be smart.

2) Turn key rentals probably aren’t going to cash flow very well (they stopped making sense a while ago actually). But, smart investors will still find the opportunities.

On the flip side, here are a couple things I have seen smart investors doing:

1) BRRRs that add value to properties with a 5yr+ exit (no more easy recycling of your down payment, sorry)

2) Converting to highest and best use – I see some smart investors taking office space which is abundant (because working from home is here to stay) and converting it to residential (because we have a long term housing supply issue)

3) Short term rentals – more hands on but better cash flow and no need to deal with the Landlord Tenant Board (which is a disaster these days and a subject for another rant) … but be careful with your financing as lenders hate STRs.

Buffet says be fearful when others are greedy, and greedy when others are fearful. So, get greedy (or at least ready to be greedy) because people are scared right now. Get your capital lined up, and look for smart opportunities to make money that will be popping up right, left and centre as the market shifts.

If you need great advice on how to get your financing in order to take advantage of the market (or even just want to discuss the usual boring fixed/variable discussion), contact me and I’ll be happy to help.

The post Historical Canadian Mortgage Prime – A Helpful Perspective appeared first on Andrew C. MacDonald.

It’s hard to miss the fact that mortgage rates are increasing with so much coverage in the media. These are some of the articles from just the past 2 days:

• Jumping Mortgage Rates Further Tighten Debt Vise for Canadians (Bloomberg)
• Why did mortgage rates just surge? (Maclean’s)
• Toronto-Dominion Bank lifts mortgage rate in ‘biggest move in years,’ RBC follows suit (Financial Post)
• TD, Royal Bank both raise their fixed mortgage rates (CBC)
• CIBC to raise five-year fixed-rate mortgage rate today (Globe and Mail)
• CIBC follows TD, RBC to raise its five-year fixed mortgage rate today (Financial Post)
• CIBC raising fixed 5-year mortgage rate by 15 basis points on Tuesday (BNN)

Just 2 weeks ago at the last meeting we heard “Bank of Canada holds rates steady, remains ‘cautious’ on future hikes“, so if the BoC isn’t raising rates why are the banks?

How Mortgages are Priced

A lot of this can be clarified by understanding how mortgages are priced. There are 2 main types of mortgages, fixed and variable rate mortgages, and each are priced differently.

Variable Mortgage Pricing

Variable mortgage rates are priced based on the prime rate and fluctuate as the prime rate moves up or down. The prime rate does tend to move when the Bank of Canada changes it’s overnight rate which is why we’ve seen 3 increases already in the past year matching the 3 Bank of Canada rate increases.

Fixed Mortgage Pricing

Fixed mortgage rates are priced based on bond yields of comparable terms which aren’t directly related to the Bank of Canada rate. The best indicator for 5 year fixed mortgage rates is to track the 5 year government bond yields. Over the same 1 year period here is what we see:

Consistently higher yields on the 5 year government bond have led the banks to increase their 5 year fixed rates.

Bond Yield Curve

Bonds price in market expectations of where rates will be in the future. Without getting into complex economics, just know there are very smart people with very powerful computers and lots of money at stake in getting these predictions to be as accurate as possible. The bond yield curve can give you a hint of where rates are likely to be in the future as well (eg. at your renewal time). Here’s how the bond yield curve looks as of today:

The black line represents today’s yields for various terms, and the blue line represents the same yield curve from 1 year ago. What we see is:

1. Rates have risen
2. The expectation is for higher rates across all maturities
3. We are expecting rates to rise faster now than we were a year ago (look how we get to ~2% on a 2 year term vs. the expectation a year ago that it would take more than a 10yr maturity to get that same yield)

Fixed vs. Variable 5 Year Comparison

Over the long run borrowers tend to win with variable rates so long as they can handle the risk. Here’s a comparison of how fixed and variable rates have looked over the past 5 year period:

The gap between the 2 lines is essentially your interest savings as the borrower.

So, what should you do about it?

It depends on many factors such as:

• What is your income today vs what do you expect it to be in the future
• What does your budget look like on a monthly basis? Are you cash strapped or do you have some breathing room?
• Is there a chance you will move within the next 5 years? (Beware the penalties on long fixed mortgages)
• Are you aggressively paying down your mortgage to eliminate bad debt?
• Are you paying down your mortgage and then borrowing to invest so you can convert bad debt to good debt?
• What is your personality type? Are you very conservative or are you okay with some uncertainty?

If you’re variable now or have a renewal approaching within the next year, you may want to consider locking in before rates rise further, but it all depends on your financial situation and discount to prime.

Contact me today and I’d be happy to have a look at your current situation and offer great unbiased mortgage advice on topics like whether fixed or variable will help most with your financial goals.

The post Why Do Banks Raise Rates When Bank of Canada Doesn’t? appeared first on Andrew C. MacDonald.

The new rankings for towns best positioned to have good real estate performance over the next 5 years based on economic fundamentals:

• #1 Ottawa
• #2 Kitchener, Waterloo, Cambridge
• #3 Hamilton
• #4 Barrie
• #5 Brampton
• #6 Durham Region
• #7 Toronto
• #8 Kingston
• #9 Orillia
• #10 Grimsby & St. Catharines

So, where are you putting your money to work over the next 5 years?

Want some help using this info to create more wealth? Here are a few ways I may be able to help you get started with real estate investing:

• Reviewing your financial situation to see what options exist for you to get access to capital for down payments on rental properties
• Providing you with a pre-qualification for rental purchases so you know exactly how much mortgage qualifying power you currently have
• Connecting you with knowledgeable Realtors in any market in Ontario who know what’s important to real estate investors

If you need help getting started with real estate investing, just contact me and I’ll be happy to see how I can help you create more wealth.

The post New Top 10 Ontario Investment Towns List appeared first on Andrew C. MacDonald.

Presentation Overview

In this presentation I will be covering the following:

• What rent to own is
• The 3 major types of rent to own
• The benefits and drawbacks of rent to own investing
• How you can safely earn double digit returns while helping Canadian families
• Keys to structuring “WIN-WIN” deals
• Real life rent to own examples

On top of my presentation, there will be an interactive Q&A period and the opportunity to network with other likeminded investors.

How to RSVP

To learn more about this workshop being held on the evening of Thursday, October 9th, 2014 at a downtown Toronto location, please contact Michelle Read at (416) 879-7323 or by e-mail: mx.mr@sympatico.ca

We hope to see you there!

The post Event on October 9th: Secrets of Win-Win Rent to Own Investing appeared first on Andrew C. MacDonald.

Presentation Overview

In this 30 minute presentation I will be covering the following:

• Overview & Private Private Mortgage Basics
• Private Mortgage Fundamentals
• Private Mortgage Due Diligence & Structuring
• RRSP & Registered Account Basics
• The Complete Process
• Avoiding Pitfalls, Other Options & Comparison to Traditional RRSP Investments
• Bonus Resources

Following my presentation, there will be a 15 minute interactive Q&A. The evening will also include another keynote speaker with experience in the same field. Finally, the evening will finish up with some time to network with other investors.

How to RSVP

You can see more details about the meeting and RSVP online at MeetUp.com.

I hope to see you there!

The post Event on June 23: Private Mortgage Lending 101 appeared first on Andrew C. MacDonald.

Presentation Overview

In this 30 minute presentation I will be covering the following:

• What rent to own is
• The 3 major types of rent to own
• The benefits and drawbacks of rent to own investing
• How you can safely earn double digit returns while helping Canadian families
• Keys to structuring “WIN-WIN” deals
• Real life rent to own examples

Following my presentation, there will be a 15 minute interactive Q&A, another keynote speaker with a sizeable portfolio who has some great tips on real estate joint venture investing, and finally some time to finish up the evening by networking with other investors.

How to RSVP

You can see more details about the meeting and RSVP online at MeetUp.com.

I hope to see you there!

The post Event on March 20th: Secrets of Win-Win Rent to Own Investing appeared first on Andrew C. MacDonald.

On January 8th, 2014 I will be speaking for the Durham Real Estate Investors group at 7pm and I’d like to invite you to join me if you’re interested in learning more about Rent to Own investing.

Presentation Overview

In this 45 minute presentation I will be covering the following:

• What Rent to Own Is
• The 3 Major Types of Rent to Own
• The Benefits and Drawbacks of Rent to Own Investing
• How You Can Safely Earn Double Digit Returns
• Real Life Rent to Own Examples
• How to Attract and Qualify Rent to Own Tenant-Buyers
• Planning for a Successful Exit Strategy
• How to Properly Structure the Legal Agreements
• The Importance of the “Win-Win” Philosophy
• 2 Ways and 2 Resources You Can Use to Get Started Today

On top of the presentation, there will be a 15 minute interactive Q&A, another keynote speaker, and some time to finish up the evening with by networking with other investors.

How to RSVP

You can see more details about the meeting and RSVP online at:

• The Durham REI website
• Meetup
• Facebook

Please note there is a cost of $30 to attend a Durham REI meeting as a guest.

Get Off to the Right Start in 2014

What better way to kick start your investment efforts in the New Year than an opportunity to learn and network with other successful investors?

Speaking of making the most of 2014, here is a great presentation by Quentin D’Souza, a successful real estate investor who heads up the Durham REI group:
Top Tips to Propel You Forward in Real Estate Investing in 2014

I hope you find Quentin’s presentation helpful and that I’ll see you on January 8th!

The post Event on Jan 8th: Secrets of Win-Win Rent to Own Investing appeared first on Andrew C. MacDonald.

Andrew C. MacDonald, President of Ownership Solutions will be speaking for the GTA West Real Estate Investing Network Group on September 24th, 2013. We’d like to invite you to see Andrew’s presentation and learn more about Rent to Own.

In this condensed 40minute presentation he will be covering the following:

• What Rent to Own Is
• The 3 Major Types of Rent to Own
• The Benefits and Drawbacks of Rent to Own Investing
• How You Can Safely Earn Double Digit Returns
• Real Life Rent to Own Examples
• How to Attract and Qualify Rent to Own Tenant-Buyers
• Planning for a Successful Exit Strategy
• How to Properly Structure the Legal Agreements
• The Importance of the “Win-Win” Philosophy
• 2 Ways and 2 Resources You Can Use to Get Started Today

If you are interested in boosting your cash flow or making your real estate investments more passive, you won’t want to miss this meeting.

On top of the presentation & interactive Q&A, there will be some time to finish up the evening with by networking with other investors. What better than a an opportunity to learn and network… for free?

You can see more details about the meeting and RSVP online at: http://www.meetup.com/GTA-West-Real-Estate-Investing-Network/events/134811352/

Hope to see you there!

The post Event on Sep 24th: Secrets of Win-Win Rent to Own Investing appeared first on Andrew C. MacDonald.

• What Rent to Own Is
• The 3 Major Types of Rent to Own
• The Benefits and Drawbacks of Rent to Own Investing
• How You Can Safely Earn Double Digit Returns
• Real Life Rent to Own Examples
• How to Attract and Qualify Rent to Own Tenant-Buyers
• Planning for a Successful Exit Strategy
• How to Properly Structure the Legal Agreements
• The Importance of the “Win-Win” Philosophy
• 2 Ways and 2 Resources You Can Use to Get Started Today

If you are interested in boosting your cash flow or making your real estate investments more passive, you won’t want to miss this meeting.

On top of the presentation & interactive Q&A, the last half of the night will be for networking. You definitely do not want to miss this opportunity to learn and network with other investors.

Admission is $5 at the door to pay for snacks and beverages. You can see more details about the meeting and RSVP online at: http://www.meetup.com/KWC-Real-Estate-Investors/events/126813612/

The post Event on Sep 16th: Secrets of Win-Win Rent to Own Investing appeared first on Andrew C. MacDonald.