Sometimes comments deserve their own blog posts. I asked a long time ago if REIN membership was worth it? My generous offer to read over their materials and review them is still open. At this point I don’t even know if Rein Membership is worth it because I still haven’t seen their “stuff” Frankly, I’d think these hugely successful property owners would be too busy with their properties to bother with teaching other people unless it was more lucrative than property investing.
REIN Ownership Change
There was also a changing of the guard over at REIN and Don Campbell has taken a back seat to new President Richard Dolan. From Richard’s website his specializations. “Research areas Dolan maintains expertise in include: Positive Leadership Psychology, Happiness Economics, Behavioral Finance and Investor Resilience. Dolan’s business ideology is in growing one’s brand promise, communication prowess, competitive advantage and immunization from commoditization.”
That sounds very happy to me and it sounds like the kind of thing that lines his pocket and not yours.
Reader Comment About REIN
You become a product of the company you keep and the advice you listen to.
If you keep hanging around with people that have turned their only rental into a Home Office, (This means me) or someone that had a tenant who didn’t look after the suite, or pay rent, (Every single landlord ever eventually) then you will end up with the same quality of results.
I purchases 2 properties “blind myself” 16 yrs ago, then stopped for 3 yrs because I was told it was a poor investment by friends and associates, then met a contractor putting in my lawn sprinkler system, got chatting and he Told me about the REIN group, as he was an active REIN member with over 20 properties, so I looked into, liked their philosophy and ideas, and what they said about “Networking with like minded positive people and only take advice from people who have actually done and succeeded at what you are interested in”, and avoid all the “Dream Stealers” who know it all but have not actually done it, or tried it, but failed because they didn’t treat investing like a business.
I purchased 5 more single family properties by refinancing my first 3 and pulling out over $250,000 of their equity into a new larger mortgage (which the renters paid for plus still some Positive Cash Flow) , until 2010 when the marked stumbled. My property prices were still cash flowing positive, but prices were stagnant so I figured maybe Canadian Real estate was done it’s run for a while, so I cancelled my $100 monthly info only membership with REIN and spent on $35,000 learning strategies and taking mentoring courses for investing into US real estate, and US Tax Lien and Deeds. Looked great. I am making a little at it, but it is a huge unknown and risk investing in a different country where it is difficult to Network and build a quality Investment contact’s team. (This sounds like the money would have been better spent on down payments on property)
I just restarted my REIN monthly info only membership last month, realizing that Canada is the best place to invest! I put a deposit on TWO great brand new Town Home units in Central Alberta that will Positive Cash Flow me over $300 each initially, and go up every year, plus $5000 mortgage paid down by my renter every year, not to mention if I figure in an extremely conservative 3% annual home price appreciation, I will make over 33% Return On my Investment of $55,000 …. on each of the properties! I have not found any other investments ANYWHERE that have produced anywhere close to 33% ROI (not even 10% after all fee’s are taken off, usually they spend more time going down than up).(Clearly REIN membership gives one the ability to predict the future price increases)
I am so happy I re joined the REIN “community”. They educate, inform of present market conditions and inspire me by being able to listen to, read about, and “Network With” abroad and at monthly live conference events filled with over 400 “Like Minded Positive and Serious Investors” at all different stages of there success in the business. I am so happy I rejoined! Just by being guided to make this recent purchase I will build (predicting the future again) over $35,000 annually (and growing each year), so ya, I think the “small” investment in myself of $3,200 has paid for it self about 10 Times just on this one deal in first year, and then infinitely there after.
Start associating with Positive People, and Avoid Naysayers like the Plague, as they are just Dream Stealers, because as you know, “misery loves company”! Cheers, here is to your Health, Happiness and Success!
Math is real
You can count all the chickens you like before they hatch, the bare facts are that you did not make anything until you sell the house. All your predictions of cash flow and return on investment are just dreaming until you collect the cold hard cash. Saying this is just pragmatic and not “dream stealing.” No one needs to “dream and have vision” to be a real estate success or failure for that matter. What is necessary is to have a concrete business plan and method of execution and leverage your personal assets to make the best possible choices. If you are right you are right. If you are wrong you are wrong.
Cash Flow Is Not The End of The World
All these systems of investing to make millions have a huge emphasis on positive cash flow when 99% of the properties being sold in the places where appreciation is the highest do not cash flow. Beating the rate of inflation by a half of a percentage point is not really something to aim for in investment. Most of the time your “cash flow” will end up at less than one month’s rent at the end of the year. If you have to paint between tenants you’ll have to take it out of next year’s “profits” A furnace or a roof is going to be 5 years or so of cash flow. Can we just stop bullshitting ourselves? Please?
Your investment house or condo is not going to be paying you. You are going to be paying it. Know what you are doing. It’s ok, it really is. You can stop fudging the numbers and admit your dirty landlord secret.
There’s nothing wrong with it. You like so many other people are trying to improve your lot in life and invest your money wisely so it grows. All that for less than a case of beer per day It’s a positive thing. For many of you, your rental house is a hobby or second job and that’s ok too.
Providing housing for people to live is one of the most valuable services that can be provided in my opinion and it’s why year after year I keep renting to tenants, managing property and working for landlords.
Cash flow or not, lying to yourself and changing the numbers is a far more serious problem than not cash flowing.
There’s No Such Thing As A Free Lunch
There is no such thing as passive income. No one is giving away money and if people did start giving away money, you still have to work beating back all the other people who want their share of free money. Investment returns are higher in Oshawa and Hamilton? I’ve rented and managed places in both those markets. You will work for the extra $50 in cash flow I can assure you. The tenant profile is interesting. Does that mean that you as a landlord can’t make money there? No it doesn’t. It means that you will do extra showings, extra screening, enjoy extra vacancy, do extra cleaning and do extra repairs. All those things add up to extra work.
But what do I know about Durham and Hamilton? I have managed town house complexes in both those areas for several years and I still manage several houses in Oshawa, Whitby and Pickering. I think my experience with over 100 properties over many years qualifies me to say something about the subject.
Challenging Ideas Is Good
At heart I am a scientist, I want to see data, and I want to challenge ideas and I’m seeking the truth. I don’t need people who confirm my bias. my ideas and business plans need to stand up to negativity and questioning. They will certainly be challenged out there in the marketplace. I like a good argument based on the facts but when you start name calling you’ve ceased being productive. In short, every time you call me a “dream stealer” you’ve stopped thinking and retreated to your tower of belief.
REIN teaches that real estate is about cash flow and that has nothing to do with believing anything. It’s analytical. So why the hate ? Why the pep rallies? Why is belief necessary? I already know that real estate can be a good business because I live it every single day.
Cults scare me, even business cults.