Mortgage Leads From Facebook Messenger? Believe It.

 

Nine out of 10 mortgage professionals can’t generate good quality leads from the web. Are you one of them?

If you want to grow your mortgage business, you have to steadily and consistently generate good quality prospects and leads. However, the landscape is changing rapidly and moving in a direction where conventional marketing is becoming less effective at generating qualified and engaged prospects that you can turn into mortgage deals.

There’s both a huge problem and an even bigger opportunity here, depending on how you look at it. Smart brokerages will capitalize on this change in market behaviour and take advantage of it for significant growth.  Others will ignore it, and continue marketing themselves the way they’ve always done it, and risk being left behind.

With all the powerful tools we implement in our marketing and all the money we spend to get our message in front of the right people, we still fall far short of meeting people where they are and giving them what they need the way they want it.

But there has been no other option up to this point. Text-based email open rates continue to decline as inboxes are flooded with noise. And it isn’t slowing down.

  • Average open rate across industries: 20.8%
  • Average click rate across industries: 2.43%

 

People are shifting how they do everything from accessing music and media to searching for and purchasing products. It’s all going mobile through apps.

People are using their smartphones and tablets more than ever to search for and consume media, information, education, and to search for, research and purchase products and services.

And they’re using apps to do it instead of browsers.

Mobile More Prevalent Than Ever

  • People today have two times more interactions with brands on mobile than anywhere else—including TV, in-store, etc. (Google, 2017)
  • 80% of smartphone users are more likely to purchase from companies with mobile sites or apps that help them easily answer their questions. (Google, 2018)
  • 94% of respondents in a Facebook survey (of one million people) have a smartphone on hand while watching TV. (Facebook, 2018)
  • During TV shows, viewers paid attention to mobile 28% of the time, and during TV ads, they paid attention to mobile more than half the time. People ages 18–24 looked at their smartphones 60% of the time during TV ads, and people ages 45 and over did so 41% of the time (Facebook, 2018)

I hope it’s becoming clear that mobile is the future of the mortgage business and marketing online. Now, let’s look at how people are using their mobile devices.

Spam filters are becoming more strict and almost too good at restricting access, to the point where your content may not be seen by your prospective clients.

The experience is broken. When you click a link you have to leave your email client and move to another application to view the content. On top of that, people have become wise to text-based email marketing and are less responsive to it.

NBC News, 2018

What are They Doing on Their Mobile Devices?

Consumers are using apps on their mobile devices significantly more than web browsers to get things done.  And social media apps and messaging apps are at the top of the list.

It’s clear that people want an instant, seamless, frictionless experience that meets them where they are and gives them the power to do it their way. Apps give them that.

  • Apps account for 89% of mobile media time, with the other 11% spent on websites. (Smart Insights)
  • Users spend on average 69% of their media time on smartphones (Comscore, 2017)
  • In 2017, 95.1% of active Facebook user accounts accessed the social network via a mobile device (Statista, 2018)

Your customers are on Facebook and Facebook Messenger where it’s easier to reach them and get their attention.

What is Facebook Messenger & Why Should I Care?

Messenger is Facebook’s messaging platform and application. Think text messaging, but through Facebook and 100 times more powerful and better.

And 1.2 billion people use it monthly on both desktop through browser and on mobile through dedicated apps.

And everyone who interacts through Facebook Messenger has a Facebook profile, which means they can be targeted by ads.

Most importantly, this is a messaging app that people use to communicate with friends and family regularly so they’re very comfortable using it.  And it’s how they want to communicate.

So if that’s the case, wouldn’t it make sense to tap into that channel if you could?

Well you can, and it’s one of the best marketing decisions you can make, if you make it soon.

Why Use Facebook Messenger as a Marketing Channel?

Statistics show Facebook Messenger is a channel you should pay attention to.

  • Over 2 billion messages are sent each month between people and businesses. If you think Facebook Messenger is only for people and not brands, you’re wrong. (Inc)
  • 260 million new conversations are started daily. These are not just new threads between people, but between people and businesses too. This number will only grow. (Inc)
  • Messaging apps surpassed social networks in monthly active users sometime in 2015 according to a report on Business Insider.
  • Facebook Messenger has 1.3 billion users. That is more users than Snapchat, Twitter and Instagram combined. (Inc)
  • Messenger adds 100 million new users every five to six months. Facebook Messenger hit 1.3 billion users in September 2018. (Inc)
  • 64% of monthly Facebook users use messenger. (DMR, 2018)
  • Users have 7 billion conversations on Messenger every day. That’s over 2.5 trillion conversations every year. For comparison, Snapchat users send 3 billion photos per day. (Inc)

One of the Best Marketing Opportunities

By 2020, customers will manage 85% of their relationships with businesses without interacting with a human (Gartner).

Commerce is moving that way, whether you adopt it or not.

This tool and channel allows you to communicate with customers the way THEY want: one-to-one, on their phones or tablets, whenever is convenient for them.

It keeps your customers within the safety of Facebook and removes friction and barriers from the process, making it easier to move the relationship forward faster.

And, most importantly, Facebook Messenger marketing creates conversations, not leads. You don’t need a complex funnel when you interact with customers the way they want.

The result is a better experience for the customer and that translates to a better first impression of your brand, which leads to a whole host of benefits for both you and your clients in the long term.

So… let’s talk about what you would actually get out of Facebook Messenger marketing if you decided to implement it for your mortgage business.

Messenger Marketing – What’s in it for My Mortgage Business?

(Search Engine Journal, 2018)

1) Generates a conversation, not a lead.

In every other type of marketing you can do for your mortgage business, you’re never in an active conversation with the prospect in real time throughout the marketing process.

Marketing is meant to drive people to the conversation and make that conversation happen. Although, it can take a while. It’s never instant. Facebook Messenger makes this possible.

Now imagine this scene for a minute:

What if when you were watching a TV commercial, you could just walk up and press a button on the screen during the commercial and a conversation started right there between you and a person from that company?

That is exactly what happens with Facebook Messenger marketing. The customer clicks the ad and the conversation starts. The moment they click, they’re in an active dialogue with you and your brand.

That means you get to talk to them the moment they’re most interested in what you’re offering.

2) It gives the customer the simplest path to getting their problem solved without confusion.

It feels natural to them, so their guard comes down. Every time you have to leave one app for another to get something done, the friction reduces the likelihood you will turn them into a customer.

Most sales and marketing funnels are comprised of landing pages in one tool, a website on another platform, text-based email marketing in another tool, analytics in another tool…you get the picture.

That means that the user is going to have to figure out how to navigate through landing pages and multiple emails and website pages to finally get to the point where they can take the next step.

The image below is a comparison of a customer’s experience through a conventional landing-page funnel versus a Facebook Messenger funnel experience.

  • Each dot represents a touch.
  • Each red arrow represents a change from one software, app or device to another throughout the process.

The entire conversion process can take place almost entirely within Messenger. It’s a straight path to a solution.

That means prospects trust your brand faster and convert into a qualified lead and customer faster.

3) It’s automated, but not too much.

Once the user clicks the ad, they go directly to Facebook Messenger where the conversation is handled automatically by a Messenger bot.

A “bot” is simply a software version of a robot that you program to converse with users through Facebook Messenger just like a person…well, almost.

This means that your virtual assistant (the bot) is having a conversation behind the scenes with your prospective client, qualifying them, giving them more resources, gathering information about them, getting them interested and ready to talk to someone.

Then that prospect is handed over to the business to take over by phone or a scheduled appointment.

All of the lead generation and prequalification happens automatically.

4) Open up a channel four times more effective than email to communicate with your prospective customer whenever you want.

For someone to get value from what you send them, they have to consume it/access it/find it.

Facebook Messenger has an 80% open rate compared to text-based email with only 24%. Facebook Messenger has a 56% response rate compared to text-based email with less than 3%

Using Messenger Marketing in your Mortgage Business

Marketing is becoming harder and more expensive. People aren’t listening to channels like email and phone calls like they used to. They’re migrating to apps on their mobile devices to search for your services and products and do everything else.

With this huge shift in consumers to mobile, you need to have a strategy that focuses on reaching them there and engaging with them the way they want to do it – through apps like Facebook Messenger.

Let me ask you two quick questions.

1) Is your mortgage business positioned to take advantage of the mobile channel and channels like Facebook Messenger marketing rather than get left behind?

And…

2) Do you want to continue to generate leads that are getting more and more expensive by the day that hardly ever turn into conversations, let alone customers?

If your answer is “No” to either or both of the above questions, Facebook Messenger marketing could be the solution you need. If you want to explore this form of marketing for your mortgage business, or you have some questions, let’s connect and talk. Feel free to email me directly at javed@empression.ca

Source: Canadian Mortgage Trends – Javed S. Khan 

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How couples can save for a downpayment and stop arguing about money

According to a poll by the Bank of Montreal, 68 percent of Canadian couples surveyed cited fighting over money as a top reason for divorce, ahead of infidelity. Buying a home together only raises the stakes — bank accounts are merged, couples are collectively preparing for the biggest purchase of their lives and are budgeting together to chip away at a downpayment.

Octavia Ramirez is the founder of Paper & Coin — a financial coaching company that helps Millennials reach their personal finance goals. “Money can be a huge stressor in relationships. So why not get ahead of the problem?” she says.

Photo: Paper and Coin 

The finance pro is uniquely qualified to help couples. Since getting married, Ramirez has never once fought about money with her husband. “Obviously, I enjoy finances but it’s taken years of practice to get here,” she tells Livabl.

It all comes down to communication and understanding your partner’s unique worldview — especially when it comes to money. Dr. Katelyn Gomes (Ph.D., C.Psych), a clinical psychologist with CBT Associates, echoes this: “We each have unique personal histories that define our values, rules, dislikes and assumptions for living in and viewing the world — including how we spend money, save money, even what’s important in the home you purchase.”

Octavia Ramirez and Dr. Katelyn Gomes spill their tips for communicating about finances and, in turn, making your partnership even stronger.

Photo: James Bombales

1. Work together as a team by joining your accounts

“I often see couples not working together as a team by splitting their expenses. This divides your efforts and can interfere with what you’re trying to accomplish,” Ramirez explains.

When it comes to buying a home, Ramirez makes a case for joining your bank accounts, “When my husband and I get paid, it all goes into the same checking account and we move the money accordingly. We don’t treat it as my money, your money. Consider that both of your incomes together are the grand total.”

When couples put their savings into separate accounts, they also diminish their returns. “Splitting your accounts is a democratic way of doing things, but you won’t get as much bang for your buck that way,” she says.

Ultimately, if you’re in a serious committed relationship, be in a serious committed relationship. “If you divide things based on your separate incomes, it gives the person who makes more a leg-up versus feeling like you’re equally respected in the relationship,” says Ramirez.

Ultimately, you will both be living in the house together. If one person makes considerably less, going 50/50 can potentially lead to selling yourself short — and building resentment long-term.

Photo: Paper and Coin

2. Agree on your collective goals, then make a transparent budget

Ramirez often hears her clients explain that they have budgets — in their head. “It’s important to have a shared document that communicates your budget and spending at a glance.”

Before putting numbers into a Google spreadsheet, agree on your short-term and long-term financial goals with your partner. Working towards homeownership? Start by determining the cost of the house you want to buy, then work backwards to see how much you will need to save each year to make it happen.

“Once you know how much you’ll have to save in the year ahead, go back month-by-month and see what areas of your budget can be cut or if you can increase your income to reach that goal,” explains Ramirez.

Even if it means passing on your yearly vacation and doing a staycation, instead.

Octavia and Will Ramirez. Photo: Paper and Coin

3. Have regular budget meetings with your partner

Once you’ve set your budget and are tracking your expenses and spending, set monthly or bi-monthly meetings to stay on track.

“Getting a downpayment together is a huge accomplishment. It’s a long-term process and there are occasionally going to be slip-ups in your savings efforts. It’s important to come back together regularly to remind yourself of your ‘why’. Maybe you didn’t reach your goal one month. Don’t dwell on it for too long, and instead decide together to get back on the saddle,” says Ramirez.

Dr. Katelyn Gomes explains, “We have this tendency to incorporate comments from our partners using faulty or unhelpful interpretations. These are known as cognitive distortion and it includes things like mindreading, jumping to conclusions, catastrophizing or thinking of the worst-case scenario. When we think our partners opinion, wants or needs don’t align with our lens it can lead to difficulties in communication, clashes or arguments.”

When you keep the lines of communication open over your spending habits, it creates an opportunity to have the necessary dialogue to avoid miscommunications or jumping to conclusions.

“Whether it’s contentious or not, just showing up to have that conversation is really important to keep couples on the same page,” explains Ramirez.

Photo: Paper and Coin

4. Save for an emergency fund

To avoid major money stress down the line, Ramirez recommends having an emergency fund in place: “Before you buy a house, prioritize saving three to six months of expenses in advance. If you break up or someone loses a job, you won’t risk going into extreme debt while you figure out your next move.”

5. Stay in the loop, even if you aren’t handling the finances

If you’re the one to handle the finances, Ramirez recommends letting your partner in on exactly what’s going on — whether it’s your insurance policy, the status of the car payments, how much interest you’re paying on the mortgage, or how much credit card debt each person has brought into the relationship.

“Because I enjoy finances, there’s a temptation to not keep my husband in the loop,” says Ramirez. “But even when I handle everything, I always debrief him after. He knows the passwords for the bank accounts and where things go, so he can take over at any point. Having everything on the table encourages you to trust each other.”

Source: Livabl.com –  

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Renting Versus Buying: A Real Estate Expert Breaks It Down for Us

The renting versus buying dilemma is one my friends have started to face since they’ve begun leaving Manhattan and escaping to the suburbs (I’m still not there yet, but when I think about how much money I “throw away” each year on rent, it’s actually cringe-worthy). But, maybe it’s true when they say the grass is always greener. Buying doesn’t come without its own set of problems, considering both sets of my friends who recently purchased homes faced movers damaging their patio, gas leaks, and even a broken washing machine within the first week. (They’ve confided in me that their bank accounts are still recovering.)

Since we’re no experts on the topics, we decided to tap Scott McGillivray, a real estate/renovation expert and TV host, to get his professional take. “Neither renting or buying is intrinsically right or wrong,” he says. “It basically comes down to your goals and your lifestyle.” That being said, he encourages getting into the real estate market once you feel financially prepared to do so. And what if you’re worried about going all in? McGillivray suggests trying a practice mortgage in which for one year while you’re renting, you put aside the amount you’d have to pay as a homeowner (mortgage, property tax, potential repairs). This gives you a realistic idea of how your lifestyle and budget will be affected if you buy.

“If you can manage, go for it,” the expert says. “And the bonus is that at the end you’ll have some extra cash for a down payment.” Since renting versus buying is no small debate, we asked McGillivray to break down all the pros and cons for each. Keep reading to get the full scoop.

 

 

Source: MyDomaine.com – by 

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12 most affordable cities for millennial first-time homebuyers

Affordability stands in the way for millennials as one of the main barriers to homeownership.

But not all housing markets are created equal, and many cities offer this generation plenty of options within a price range they can afford.

“Millennials who dream of owning a home will have better luck if they move inland to places like St. Louis, Columbus and Pittsburgh,” Redfin chief economist Daryl Fairweather said in a press release. “These cities used to have economies that relied heavily on manufacturing, and during the recession a lot of young people moved away in search of jobs.”

With home price growth currently plateauing, the time for millennial buyers to strike could be now before that changes.

“However, now these cities have more diverse economies based on education, healthcare and technology, and there are open jobs with salaries that are high relative to cost of living. But millennials may want to move as quickly as possible because even in most inland cities the share of homes affordable to the typical millennial is shrinking as housing prices go up,” Fairweather said.

From just below the Mason-Dixon Line to the gateway to the West, here’s a look at the 12 housing markets with the highest percentage of homes affordable to millennial purchasers with median incomes.

Redfin calculated the share of homes in each housing market that were affordable during 2018 to households making the median income for millennials in that metro area, assuming a 20% down payment, an interest rate of 4.64% and a monthly mortgage payment no more than 30% of gross income.

 

12. Baltimore, Md.

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Median list price: $308,595
Median millennial salary: $85,562
Homes affordable to millennials: 81.3%

11. Raleigh, N.C.

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Median list price: $298,081
Median millennial salary: $76,729
Homes affordable to millennials: 81.4%

 

10. Oklahoma City, Okla.

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Median list price: $198,000
Median millennial salary: $60,462
Homes affordable to millennials: 82.8%

9. Indianapolis, Ind.

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Median list price: $190,000
Median millennial salary: $62,054
Homes affordable to millennials: 83.5%

 

8. Cleveland, Ohio

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Median list price: $164,900
Median millennial salary: $56,151
Homes affordable to millennials: 84%

7. Minneapolis, Minn.

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Median list price: $284,900
Median millennial salary: $83,933
Homes affordable to millennials: 85.1%

 

6. Kansas City, Mo.

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Median list price: $225,000
Median millennial salary: $71,313
Homes affordable to millennials: 85.2%

5. Hartford, Conn.

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Median list price: $249,900
Median millennial salary: $76,235
Homes affordable to millennials: 85.7%

 

4. Cincinnati, Ohio

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Median list price: $199,900
Median millennial salary: $68,511
Homes affordable to millennials: 85.9%

3. Columbus, Ohio

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Median list price: $215,500
Median millennial salary: $71,181
Homes affordable to millennials: 87.1%

 

2. Pittsburgh, Pa.

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Median list price: $179,900
Median millennial salary: $70,169
Homes affordable to millennials: 87.5%

1. St. Louis, Mo.

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Median list price: $189,900
Median millennial salary: $68,805
Homes affordable to millennials: 88.1%
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Source; National Mortgage News – Paul Centopani February 12 2019
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9 tips for buying profitable investment condos in Toronto

Photo: Jenny Henderson

Real estate is not a one-size-fits-all strategy. Pierre Carapetian, a top 1 percent agent in Toronto and an avid real estate investor himself, shares what we should know about buying an investment property in Toronto. Here are his tips to profitable purchases.

1. Understand your goals

The type of product you invest in will depend on your goals as an investor. Are you investing for equity gains or are you looking for an investment that generates cash flow?

Cash Flow

Toronto’s lucrative condo market and rising interest rates have raised carrying costs, making it more challenging to find cash-flow positive properties. There are, however, strategic ways to improve your margins, like a higher downpayment or purchasing the right product. Your Realtor will know best.

Type of property to invest in: Resale

Equity Gains

If it’s equity gains you’re after, you’ll need to think long-term. Toronto condos are a great option as prices in the core have been stable and rising substantially. An experienced Realtor can help guide you to the right product and the right neighbourhood so that you can achieve higher equity gains.

Type of property to invest in: resale or pre-construction

2. Know your budget and closing costs

Ensure you know how much cash you will need and how much mortgage you can afford to carry. This will influence the types of properties to evaluate when investing. If this is your principal residence you are allowed to purchase with as little as 5 percent down. However, as an investor purchasing a secondary property you must have at least 20 percent down.

5 Percent vs. 20 Percent Downpayment

Different products have different downpayment structures:

Type of property to invest in with < 20 percent downpayment: resale
Type of property to invest in with 20 percent + downpayment: resale or pre-construction

Closing Expenses

Beyond your downpayment, you’ll also need to account for closing expenses. These include Land Transfer Taxes and, on pre-construction condos specifically, HST (capped at $24,000).

Use this Land Transfer Tax Calculator to find out how much you’ll owe. First-time buyers are also eligible for a partial Land Transfer Tax rebate.

When investing in a pre-construction condo, you’ll need to pay HST on the registration date (approximately four years after purchase) to a maximum of $24,000. With a one year lease in place though, this amount is fully refundable as you’re able to file for a full HST rebate.

3. Understanding price per square foot averages in the neighbourhood

Paying attention to the price per square foot is a great indicator of an investment’s profit potential. Look for properties that have a low price per square foot compared to a comparable unit trading in that same neighbourhood. This will also help you determine if the best deal is pre-construction or resale.

“If the average resale condo in King West is trading for $900 per square foot and the current pre-construction deal is selling for $1,100 per square foot, you’re likely going to generate higher returns investing in resale,” says Pierre.

Photo: Jenny Henderson

4. Know how to spot a good deal

Beyond the price per square foot, there are many other factors to consider when spotting a profitable investment condo. Some of these include:

  • Does the builder have a good reputation?
  • Does the location or floorplan allow you to rent for a premium?
  • Is there future infrastructure development coming to the area?

We aren’t all real estate whisperers — if you don’t know how to spot a good deal, or maybe don’t have the time, hire an experienced Realtor to help you.

“I’m always scouring the market for profitable purchases that I can send along to my investor clients.”

5. Purchase investments where you can charge a premium in rent

There are key factors to look for as you search that will help guide you to a profitable investment property.

Rental prices favour condos along major transit/subway lines. You can also typically charge about the same rent for a two-bed, two-bath, 750-square-foot condo as you would a two-bed, two-bath 800-square-foot condo if they are in the same building. That 750-square-foot condo, however, will cost less to purchase, so you actually will improve your margins and lower your carrying costs.

6. Buy in gentrifying neighbourhoods

When it comes to equity gains, the biggest wins to be had are in pre-construction properties in up-and-coming neighbourhoods. If you can invest in areas when prices are low, you’ll reap the benefits in years to come as the area becomes more desirable.

Leslieville is a great example of how gentrification impacts property values. Condo prices there have increased 50 percent since 2014.* Investment opportunities in up-and-coming neighbourhoods where rental inventory is low will also allow you to charge a premium in rent.

PRO-TIP: Be on the look-out for investment opportunities on the Danforth along the subway line.

7. When purchasing, think long-term

When it comes to investing, it’s always wise to think long-term. The longer you hold your investment, the more equity you amass. As your investment’s market value goes up and your mortgage goes down, you’re able to leverage that equity into other investment condos. Learn about Pierre’s leveraging strategy and building a real estate portfolio.

PRO-TIP: Borrowing to invest can dramatically improve ROI.

8. Understand the tax implications

Knowing how your investment will affect your taxes — and the amount you owe — can make all the difference when purchasing property.

Capital Gains

When you sell your investment property, you are required to pay Capital Gains Tax. This means that 50 percent of your net profit will become taxable income. You are entitled to deduct expenses incurred during the investment from these gains (like interest on a loan and cash-flow losses).

HST

As we mentioned earlier, when investing in a pre-construction condo you’ll need to pay HST to a maximum of $24,000 when the building registers with the city (typically four years after your initial purchase). Your lawyer can file for a full HST rebate, refunded approximately four to six weeks later, provided you have a one year lease in place.

If you do not rent out your property for the minimum one year, you are not eligible for the HST rebate.

9. Ensure you’re playing by the rules

Ensure you play by the rules when investing. This includes understanding the rules regarding short-term rentals (eg. Airbnb) in the building to flipping condos and the financial consequences that come with it.

If you sell your investment too quickly you run the risk of being taxed as a trader rather than as an investor, which means you can be taxed on 100 percent of your profits as it’s seen as business income. It is best to get legal and property advice from your lawyer and/or accountant regarding tax implications as a flipper.

When it comes to spotting profitable investment opportunities in Toronto, just remember: it’s not about buying something, it’s about buying the right thing. Equipped with these nine investment tips, you can rest assured you’ve invested with sound advice and guidance from one of Toronto’s top real estate brokers.

You can read more on Pierre’s investment strategies here.

*Based on E01’s average condo price for 2018 compared to 2014

 

Source: Livabl.com – Feb 11, 2019

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Naborly protects landlords’ investments

As every landlord surely knows, running a credit check during the tenant selection process is paramount. However, not every landlord realizes what to do with the information the credit check reveals.

“Every independent landlord knows that to screen a tenant, you have to look at their credit, but a lot of them have no idea how credit relates to a tenant’s ability to pay rent on time,” said Jerome Werniuk, director of sales at Naborly Inc., which runs free credit and background checks. “Ninety-five percent of landlords have tenants show up with their own credit file, meaning they go to Credit Karma or Equifax, but when we hear professional tenant stories, these people come with doctored credit checks.

Doctoring a credit check is as easy as finding a template online and filling it in as one wishes. It’s what Werniuk describes as a huge problem within the industry.
While savvy landlords realize they can obtain credit checks from Equifax or TransUnion, many still don’t know, nor have time, to mine the information therein to decipher a tenant’s capacity for prompt rent payments.

“To get a credit file from either of the credit bureaus, they have to pay for it and a set-up fee for the individual’s report, but there’s a heavy credentialing process to pull somebody’s file,” said Werniuk. “Even when the landlord gets a credit file, they don’t know how to read it. They don’t know exactly what an R9 is or how someone paying a cell phone bill on time impacts their ability to pay rent. So credit is not necessarily a good tool for independent landlords.”

Naborly builds a different type of credit report using critical criteria like contemporary cost of living and verifiable income to determine a potential tenant’s ability to pay rent. It has proven so popular that, when it launched in February 2018, Naborly screened 100 people a week. Now, it screens at least that many people in a day.

“The biggest feedback we’ve received from landlords is our tool is amazing at assessing risk so that they can properly evaluate whether or not to accept the rental application,” said Werniuk. However, there remain risks that are extremely difficult to predict. Landlords have said that many of their previous evictions  were due to circumstances that changed after the tenant moved in, like job loss or some other unforeseen, and expensive, event in their lives. Nobody can predict those things.”

The average cost of eviction in Ontario is $9,000, and that could cripple an investment. In response, Naborly has rolled out Rent Guarantee, which doesn’t just risk assess but also protects the landlord for the full term of the lease. In effect, Naborly cats as the tenant’s co-signor, which shields the landlord’s investment.

“It’s based on the Naborly report and the risk score we give, which directly correlates to a tenant defaulting on rent,” said Werniuk. “We give a quote for how much rent guarantee will cost. They can have Naborly become a guarantor on the lease, meaning if the tenant ever defaults then Naborly steps in and covers the rent for up to six months. Our primary customer for Rent Guarantee is the landlord who only owns one or two units because if they don’t collect rent for two or three months, they’ll have issues paying their mortgages and they could lose the property.”

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How to ‘plan, invest and retire wealthy’

What if condo investing were as easy as owning a mutual fund? Well, it can be.

Connect Asset Management will be at the Investor Forum on March 2 to explain how it helps its clients turn one property into several and build portfolios that cash flow millions of dollars. One of the ways in which Connect Asset Management does that is by helping investor clients access to some of the most exclusive real estate developments in Ontario.

“We help investors plan, invest and retire wealthy with cash flow in condos,” said real estate broker and founder of Connect Asset Management Ryan Coyle. “It’s completely hands-off for our clients; we make investing in real estate as easy as owning a mutual fund.”

Connect Asset Management builds a strategy for its clients predicated on timing—that is, strategically choosing when to purchase a property.

“From acquisition to completion, there’s a tremendous amount of growth on capital appreciation and rental appreciation, so when the condo is built they have all this appreciation that gives them the ability to refinance, pull out the equity and buy more property,” said Coyle. “We help our clients identify the optimal time to flow that capital into more properties.”

The strategy, which Connect Asset Management will decode at the Investor Forum, is called the Multiplier Effect: The ability to use equity in a safe, not to mention lucrative, way. Coyle says that, with the right strategy, anyone can become a millionaire through investing in real estate.

For starters, ever wonder why the best units in key developments are gone well before sales open to the public?

“We’ve been a top-producing team for many years now and what that means for us is we get to access all the best developments, and we get our clients first access to all the developments before they open to general public and, quite frankly, before anyone even knows about them,” continued Coyle. “This way, our clients are able to get the best deals on the best units.”

Condominiums are far from Connect Asset Management’s sole investment strategy. The firm identifies key markets where yields remunerate clients well, and some of them include university towns with high enrollment but meagre student lodgings.

“Student housing is often referred to as ‘recession-free real estate,’ meaning that when recessions hit student housing tends to be among the strongest real estate because more people go back to school and that increases the demand on both the rental and resale side. The areas we invest in are seeing some of the highest enrollment rates in the country, and Canadian schools have a shortage of on-campus housing, so there’s a new demand for student living, such as condos.”

Source: Canadian Real Estate Magazine – by Neil Sharma  07 Feb 2019

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