Drinking The Kool Aid – REIN Membership

August 5th, 2014 · Rental Property

SCARY CLOWN FACESometimes 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.

photo by:

→ 2 CommentsTags:

Crazy Schedules For Showings

July 23rd, 2014 · Kids & Family, Rental Property

House with a towerOne thing owners completely underestimate when showing apartments is the havoc that it will play with your schedule. After many years, I’ve become use to the cancellations, the late arrivals, people getting lost and just not showing up. I plan and schedule and still manage to never know what I’m doing on any given day.

That’s how I roll.

photo by:

→ Tell Me What You Really Think HereTags:

An Appeal To League Employees By the League Investors Victim & Recovery Group

July 15th, 2014 · League REIT Updates

If you're happy and you know it, Clap your hands

League Investors Victim & Recovery Group are a group of League victims as are many of you. Even though the mortgages on the buildings were paid, employees were not fully paid in some cases.  There are now more than 200 members in our group: which is impressive considering we have been denied access to the full investor list citing “privacy concerns” Many investors have made contact through this blog, one and two members at a time. If you are a League Victim you can email the group to join at leagueinvestors@gmail.com.

Ironically, we know that the full list is floating around, and some of you have some or all of the list in your possession. We know this because Emmanuel Arruda reached out to the investors in an email and another ex employee sent out an email blast to try to sell the recently decimated League Victims an investment.

The League Investor’s Victim & Recovery Group needs the list because the more members we have the more strength and impact we will have. Our goals are simple and transparent.

1 – Recovery of Funds
2 – Punishment of Perpetrators
3 – Prevention of Similar Crimes

We have a strategic plan to work on all the above goals.

The truth of what happened wants to come out and play. We know that many League ex-employees have information that is essential to our investigation. We also know that you cannot give out this information without great personal risk. In some cases you could lose your job, you could lose your exempt market dealer license, you could be sued and you could be “black balled” and lose your entire career. There is no whistleblower law that would protect you.
The League Investors Victim & Recovery Group knows that most of the employees did nothing wrong except do their job and earn a few bucks to feed their families. Many of you invested right along with “member partners” and believed in the company. Having said this, some of you may have been witness to events or information that seemed mysterious or unexplained at the time, but make perfect sense now in light of new information. You may have documents or emails that need to be “liberated”. You may need to speak to a person in confidence.

We need your help, but we do not want you or your career to be risked. For this reason we have come up with several ways you can make anonymous submissions. You can fax to 1-647-724-1619 from any number of corner stores or Staples. Pay cash. You can use regular mail and mail to 228 Scarborough Golf Club Road, Toronto, Ontario, M1J 3G6. This is my personal home address, so if you come over bring beer.

You can make a fake email address and email our group leagueinvestors@gmail.com. This is less secure but easy.

After our investigations our group has come to the conclusion that 99% of League employees did not know what was going on. As soon as League Employees figured out what was going on and objected in any way, they were fired by any means necessary. This is one of the major reasons why there was incredibly high staff turnover at League including the rotating door of CFOs. One of our questions is how the money was moved around and concealed.

Any little detail might be extremely important, the prizes are investor list and we would love to see the Altus Helyar valuations on League properties. I’m sure if you’ve been holding something back for a while it’s probably important. I think we can all agree that scams like League are bad for investors and bad for business in general.

Many thanks, Ex League Employees.




photo by:

→ 16 CommentsTags:

Caught Again! Proxy Trickery At Partner’s REIT

July 6th, 2014 · Partner's REIT Updates, REIT

The Poop Monster

EDIT: Actually this entire post is wrong. I made a mistake. It happens :-) I missed the news that Orange Capital withdrew all their nominees for Trustees. I have no idea why they did so after going to court and winning the right to put those nominees forward, but there you have it. I apologize for being a dick.

Earlier today the ever vigilant Allison Barber caught this piece of news. Make sure you read this analysis all the way through.

Partners REIT Announces ISS Recommendation: Unitholders Should Vote FOR All Trustee Nominees and Resolutions  

Partners Real Estate Investment Trust (the “REIT” or “Partners”) (TSX:PAR.UN) announced today that Institutional Shareholder Services (“ISS”) has recommended that its clients vote FOR all of Partners’ Trustee nominees for election at the REIT’s upcoming Annual and Special Meeting, to be held on July 15, 2014. ISS also recommended that unitholders vote FOR the Unitholder Rights Plan and approve KPMG LLP as auditor.

ISS is a leading independent international corporate governance analysis and proxy voting firm, whose recommendations are intended to assist unitholders in making choices regarding proxy voting decisions. In making its recommendation, ISS met with the REIT, carefully considered the nominees and details of the proposals put forward and recommended on the basis of what it believes is in the best interests of unitholders. The Board of Trustees is pleased to have received this important endorsement from an independent third-party.

The Trustees have taken decisive action to protect and enhance unitholder value and the REIT is well on its way to a brighter future. The Board’s immediate focus is on completing a search for a new permanent CEO and the ongoing strategic review of the REIT. To ensure unitholder votes are voted at the upcoming Meeting, the Board recommends that unitholders cast their vote on the YELLOW proxy in advance of the July 11, 2014, 1 p.m. (Toronto time) proxy voting deadline.

Who Is ISS?

According to Wikipedia:  Institutional Shareholder Services, Inc. (ISS) is a proxy advisory firm. Hedge funds, mutual funds and similar organizations that own shares of multiple companies pay ISS to advise (and often vote their shares) regarding share holder votes. It is the largest such firm, with over 61 percent of the business[1] It is owned by MSCI.

In short Partner’s REIT paid money to ISS so they would announce their paid recommendation to vote their proxy the way the existing governance wanted. 

Here’s what they advertise as their serviceGovernance Advisory Services can be used with our turn key proxy voting to ensure complete control of the voting decision

ISS is the corporate equivalent of getting your aunt to vouch for you on a rental application. Except you have to pay your aunt.

Landlord Rescue Announces Shareholder Misleading At Partner’s REIT & Recommends Forensic Audit

This reeks of the same corporate governance that led to the collapse of the League Ponzi Group, the same crooked corporate governance that was revealed by the trustees during the last proxy battle, a battle that was lost by the trustees who all got canned for raising serious concerns about non arms length transactions, specifically Adam Gant trying to get Partner’s REIT to buy League’s decrepit vacant properties.

In a culture of back alley deals as soon as the League scandal seemed to fade away, the purulent boil of dishonest dealings raised it’s ugly head and Partner’s REIT governance got caught pushing through a non arms length transaction. Then CEO Ron McGowan resigned after getting caught red handed with his hand in the cookie jar except it wasn’t a cookie but a half vacant, deferred maintenance mall he was getting from his business partner.

In a perfect example of why dishonesty is bad for business, obviously the share prices have been going nowhere but down as the madness continues unabated. You’re a REIT for god’s sake not a soap opera. All you have to do is improve your buildings, pay the mortgages and distribute income, this is not a complicated business plan. As for the poor poor patient shareholders, the best thing to do is the complete opposite of what this board wants. This is the board that has seen your share prices lose 37% of their value.

ISS is just one more useless company that provides no value to this debate except to provide Partner’s REIT with an “Appeal To Authority” for shareholders. Shareholders don’t know that the official sounding ISS is just another PR stunt paid for reference. This type of trickery was seen over and over at League. One of the most effective that got a lot of people believing and investing was the “paid rating” scam or the “impressive announcement” scam.

Stop the madness!


photo by:

→ 14 CommentsTags:

League’s Deception, Lies and Conspiracies

July 3rd, 2014 · League REIT Updates

World's Biggest Liar

People I have to say I’ve been silent about League not because I don’t have anything to say but because I just want to rent and manage new condos and not be bothered with the fucking cesspit of League. Every single time I think the latest update is the worst I end up discovering another layer of filthy psychopathy.

Screwing Over Past Employees

I now know of three higher up past employees that were constructively dismissed after asking questions. But there ended up being allegations of sexual harassment. So basically the CEO or Sales Manager would ask why they were using investor money to fund payroll or bills and the next day there would be allegations. This happened.

Then after that in one case at least Manny “Ethics” Arruda went online smearing the reputations of said persons under pseudonyms (fake names).

Cease Trade Orders

Back in 2007 there was 4 total cease trade orders I know about (there may be more) and during the time that there was cease trade orders, League collected checks and money and it was selling as usual, except those check got stockpiled and cashed once the CTO was lifted.

Investors may or may not have been told about the Cease Trade Orders.

This was revealed during court room testimony by Adam Gant and a copy of his testimony was given to the BCSC.  It’s positively shocking.

7  776     Q   And did the CTOs have any impact on the business of

         8              League? 

         9          A   Yes.  Yeah. 

        10  777     Q   What impact? 

        11          A   Well, not so much in Citizen or IGW Property’s

        12              case, but in the REIT’s case, you know, we were in

        13              the process of raising capital for some

        14              transactions, and so we had to delay the

        15              transactions until the cease trade was lifted. 

This information was given to the BCSC and they did nothing.


Using Investor Funds For Payroll and Payables

This is Adam Gant’s own testimony verbatim as per court transcripts.

4  891     Q   And my understanding is — obviously from my

5              client — that there were intense discussions on

6              how on earth the payroll would be met, for example,

7              given the small amount of cash and the state of the

8              payables.  Have you been informed that there were

9              such discussions?


10          A   Yes.  Yeah, I remember there being some.


11  892     Q   And at the time — do you understand now at the

12              time, that is, January and the first days of

13              February, there was not sufficient cash to meet the

14              payroll or deal with those payables?


15          A   Sorry.  What are you asking me?  Was there cash?


16  893     Q   Yes.


17          A   I think we needed to — to get outside funding that

18              month.  We had to inject more shareholders’ loans

19              into the company that month.  So, no, there wasn’t

20              enough that month.


21  894     Q   And did you tell my client that there was or was

22              not money to fund the payables and the payroll in

23              January?


24          A   I believe I told him that — I think I told him not

25              to worry about it.  I w

1              I remember at the time hoping that they would find

2              a solution while I was away.  I knew that if they

3              didn’t, when I got back, we would take care of it.

4  895    Q   How did you?

5          A   We put more capital into the company for the

6              payroll.


7  896     Q   Who is “we”?


8          A   Myself and Emanuel.


9  897     Q   Did you tell my client before the two of you did

10              that that there was 5 million in Mr. Reed’s trust

11              account to cover the payables and payroll and other

12              ongoing needs for money?


13          A   January 2008 . . .  I’d have to look at the trust

14              report to find out exactly how much cash was

15              sitting in the account at the time.  But up to that

16              point, we were carrying usually a million or two in

17              trust funds.


18  898     Q   I didn’t ask you that.  Whatever was there, did you

19              tell my client, Hans, there is $5 million — or

20              words to the effect — Hans, there’s 5 million with

21              Keith Reed; don’t worry?


22          A   I could have, yeah.


23  899     Q   Is that true?


24          A   Well, I’m sure I told him that there was money in

25              the trust fund because there was for payables for

1              the — the real estate entities.


2  900     Q   Well, did — did you tell him the truth?


3          A   Yes.  Yeah.


4  901     Q   So if you said 5 million, there was 5 million?


5          A   Whatever number I told him there was at the time.


6              Like, the number that there was, I can get that for

7              you.


8  902     Q   I’m instructed that you, very shortly after telling

9             him there was 5 million, said there was 3 million.


10          A   Okay.  I —


11  903     Q   Do you recall that?


12          A   Again, I can’t recall the specific numbers, but it

13              was another one of the times where I said, Please

14              call Keith directly if you’d like to confirm the

15              number from — for yourself.


16  904     Q   Do you recall giving him different numbers, like

17              significantly different numbers?


18          A   If it was a — well, if it was — if it was while I

19              was away, I could have then checked and just

20              updated myself as to exactly how much there was, so

21              possibly.


22  905     Q   Did you tell him around the time of these

23              discussions that you wanted to teach Manny a

24              lesson?


25          A   Yes.

1  906     Q   And what was that about?

2          A   Well, like I said, I had hoped that they could find

3              a solution without me that week while I was away.


4  907     Q   So what was the lesson that you wanted Manny to be

5              taught?


6          A   Well, I just was hoping they’d come up with a

7              solution without me.


8  908     Q   So in other words, did you mean by that that you

9              wanted Manny to figure out how to do it without

10              bothering you?


11          A   Yeah, exactly.  I just hoped that they could either

12              find a financing source that, you know, didn’t

13              involve me going out and — and doing it myself or

14              find a solution to it in the short term to, you

15              know, fulfill themselves.


16  909     Q   And did you say words to the following effect to my

17              client around this time frame and about these

18              discussions about finances that, The accounting

19              girls are idiots; they don’t know how to move money

20              from A to B?


21          A   I hope I didn’t use that term.

22  910     Q   I’m not suggesting you’d be indicted for that if

23              you did so, sir.  Did you use words to that effect

24              and say basically that?


25          A   Possibly.



1  911     Q   And what would you have meant by that?  That there

2              was money available for them if they just moved it?


3          A   Well, the funds — any funds in trust for the

4              entity can be moved up into our account for the

5              entity, and if they hadn’t done that, typically,

6              when I get back, I typically — you know, I’ll do

7              the cash flow projection and — and move the

8              capital from trust as we need it.


9  912     Q   Sorry.  “For the entity,” you mean the assets?


10          A   The REIT or the — the LP for the specific project.


11  913     Q   So do you mean monies invested for those could be

12              used to deal with payables and payroll of League?


13          A   Yeah.  I mean, if we’re — if we’re investing in a

14              project, subscription funds prior to that time had

15              typically flowed into Keith Reed’s bank account.

16              He would hold them until after the decision period,

17              and then once they were effectively released, we

18              could then use them to go and buy an asset or

19              invest into upgrading an asset or for whatever

20              particular — you know, it was just a whole — it

21              was one place or another where the cash was held.

22              So if we needed capital for, you know, some

23              invoices that we required, we transferred from

24              Keith’s account to our account.  If we were going

25              to close a property and we’d raised some money but

1              had some in our account, we’d transfer from our

2              account to Keith’s account, so . . .


3  914     Q   I’m not sure I follow, so let’s — let me ask you a

4              question or two on this.  So if people sent money

5              in for subscriptions —


6          A   Yeah.


7  915     Q   — and were held for the period properly by

8              Mr. Reed —


9          A   Yeah.


10  916     Q   — after that period expired, did you understand

11              you could use those monies for payables of League

12              including payroll of League?


13          A   We’re not talking —


14       MS. McNEIL:  Just before you —


15          A   — about the defendant.


16       MS. McNEIL:  — before you answer —


17          A   We’re talking about the entities.


18       THE WITNESS:  Sorry.  Yeah.


19       MS. McNEIL:  — the question — sorry.  Again, I just want

20              to ask you, Mr. Main, because you seem to be fairly

21              far-reaching here, how this relates to matters

22              raised in the pleadings.


23       MR. MAIN:  I think it’s raised in the pleadings or at

24              least by allusion, and let me think aloud further.

25              My client, as I’m asking yours about, was disturbed

1              about or expressed concerns about some of the

2              aspects of operation of the business, and that

3              might be related to what led to his alleged

4              constructive dismissal.


And that is Adam Gant under oath testifying in a court of law about playing fast and loose with investor money. This court proceeding occurred in 2009 but the events occurred in 2007.


photo by:

→ 16 CommentsTags:·