News From Jamie Thompson
I cannot believe how fast things have changed in the world around us! So much has altered our daily routines since I sent out my last update at the beginning of March, and we will get to that, don’t worry. As for right now, I wanted to give a quick update about my trip to Florida for The Powerful Living Experience with David Bayer. I think the best way to describe what I took away from this experience, would be to call it life changing. I highly recommend taking a dive into this mans life, and all he has to offer! I’m sure you will come across so much information by simply googling his name, but at a minimum you should listen along to an interview he did on the Impact Theory Podcast (episode 144), like I originally did.
Back to reality it is. Covid-19 is clearly no joke, leaving a tremendous amount of people without a pay check from their jobs, and leaving businesses forced to make tough decisions and lay people off, just to stay afloat. I’m not much of a pessimistic person though, so let’s take a look at some positive aspects to this current global situation. Lately I have seen people fall into 3 different categories within their state of living. There are those who panic because they focus on what the worst case scenario might be, and they become overwhelmed by fear and anxiety. There are people who have been forced to make small changes to their lifestyle and routine, but are focused on riding this pandemic out and hoping life will eventually return to normal. And finally, there are those who see a silver lining and want to make a statement in the most opportunistic time that most of us will ever see in our lifetime. This current situation reminds me of a stat that I will never forget; Most millionaires and billionaires are made in times of a recession because they see the opportunity and run with it.
This newsletter will be Part 1 of a 3 part series. I have strategically laid out each part in order to break down some huge opportunities that every day people can take advantage of when it comes to real estate, and why I think this is a no brainer, especially right now. The 3 part series will cover:
1. Interest Rates
2. Inflation
3. Passive vs Active Income & The Risk of Investing (or not investing)
Now I know some of you are already saying, I don’t just have extra money sitting around that I can invest right now, but imagine if you did! How could that impact your life and the life of our family? What is the life you have always wanted to live and how has that vision evolved over time? Could you retire early? Go on a family vacation once a year? Work less overtime at work and enjoy more family time? Or even have more time to work on your personal health (cause I know people just never have time to workout right?…). Think about the changes you could have in your life as we dive deeper on how you can easily achieve that vision and feel more fulfilled.
The first part of this series is going to focus on interest rates and why I think this is a very important time to take advantage of how low they are!
1. Interest Rates
Interest rates are at an all time low right now! Most banks will loan you hundreds of thousands of dollars, over decades… and charge you below 5% to do so! Money is cheap right now. I’ll tell you right now, I would not be doing that if it was my own money! The nice thing with real estate investing is this thing we call Leverage. The banks will allow us to buy a property by only paying 20% of its value, while they pay for the other 80%, how awesome is that? Still trying to see where this extra money is coming from for the 20% down? Let’s assume you own a house right now and you have the ability to refinance that property and pull out some equity against your home. The bank will most likely lend you between 70%-80% of the value of your house (minus your previous mortgage), with very low interest. Another option is to look at a Home Equity Line of Credit (HELOC). This should make you very excited if you find yourself in this situation as a homeowner, and we will get into that later on in part 3 about different types of investments. As for now think of it like this, the bank NEEDS to loan money out to keep the circulation of currency healthy and push the economy along. Let’s look at a very easy example of how the average homeowner could take advantage of this and pretend you have a house valued at $500,000 right now. Say you owe $250,000 on your mortgage, but the bank will loan you 75% of the value of your house, minus your current mortgage (this is very common). That looks like
$500,000 x 0.75 = $375,000
$375,000 – $250,000 = $125,000
Yes, you will walk away with $125,000 to invest! Maybe you’re in a better situation and have even less owing on your current mortgage, or the value of your house is worth much more than that! This is incredible because the bank is giving you money to go invest, in a safe strategy, in order to make you even more money!! The positive impact on your financial situation is exponential. Now what was that question you were asking yourself at the beginning of this? How could this have an impact on your life and the life of your family? Could you retire earlier? Go on a family vacation once a year perhaps? Could this help you afford that dream car you have always wanted? The questions are endless.
I get it, there is hesitation, and for good reason. Maybe this is new to you and there are a lot of unknowns that you are concerned about. Reach out to me over email or phone and I will be happy to discuss some of those questions you have!
About Jamie Thompson:
Jamie Thompson is a real estate investor. He’s been actively involved in Southern Ontario including the GTA, Durham, and Barrie area real estate investing for a number of years. His mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Jamie offers his investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without a hassle of being a landlord, please contact Jamie.
For more information about Jamie and his investment program,
please call 289-716-0718. or visit https://investwithjamie.com/
