Sylvia Ho talks with Roy and Hayden about purchasing their first investment property and how  they changed their minds about real estate investment. She discusses the opportunity the J.O.M.P Program opened for Roy and Hayden, their motivating desire to ensure secure futures and real estate opportunities for their three children, and invest in a comfortable retirement for themselves.

Roy came to Sylvia as the one most reluctant to buy additional properties. He admits he viewed their two existing properties as having a lot tied up in them, hadn’t had the best experiences, and really was of the mindset that their debt should be paid off before additional investments were considered. After he and Hayden attended Sylvia’s seminar, they saw more opportunity in working with a broker instead of the banking institutions both are employed by. With one new property in Calgary to their name, they have plans to buy two more and have encouraging words for anyone discouraged by banks and financial institutions about the potential with a broker.

Roy and Hayden are very encouraged about the equity they will be building with new real estate investments and see great opportunity now to buy property that can add to their positive cashflow and set their kids up for futures in real estate. With one son in university, a daughter headed there shortly, and another child in high school, they understand the market will not be easy for their kids and feel less concerned about having the means to help them out now. Sylvia encourages listeners to take Roy’s advice about starting in on real estate investment as early as possible. Roy and Hayden share very practical advice about their journey in this important episode.  

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Transcription

Roy  00:00

The mortgages that we're getting through you now are not necessarily with the bank that we work for. And that says a lot because we do get employee discounts, as far as mortgages and things are concerned. However, when I take those into account, they still can't provide the same type of return for me as compared to your own plan. Then that makes me think, you know, clearly what they're doing is for them, not for me. Yeah that speaks volumes. So, you know, when I'm working for a major financial institution, and I'm going somewhere else to get my mortgage, that's something that says a lot.

Sylvia Ho  00:40

Hey, friends, have you ever wondered how you can pay off your mortgage faster, or maybe you'd like to help your kids get into the real estate market, or, better yet, retire with some passive income? Well, you're in the right place. Welcome to the Sylvia Ho Mortgage Podcast. My name is Sylvia, I'm here to teach you how to achieve your goals simply by owning just one more property.

Sylvia Ho  01:03

Hey everyone, it's Sylvia here. Thanks so much for joining us in the J.O.M.P. Podcast. Today, we have Roy and Hayden, they purchased their first investment property. And it's very interesting, Roy goes from 'I'm not ready to do this' to having a plan to buy three more properties. Listen to this podcast. And if you want to learn more about the J.O.M.P. program, all it takes is for us to get onto a call for 15 minutes. Go to SylviaHo.ca and book a time to chat with me.

Sylvia Ho  01:31

Hey, everyone, I'm joined by Hayden and Roy, they have three beautiful kids, their oldest son is in university, their daughter is going to be going to university, and then they have another child that is in grade 10. They went into this real estate investment side because they want to do this for their kids. Is that correct?

Hayden  01:47

That's correct. And for retirement.

Sylvia Ho  01:49

And for retirement. So talk to me a little bit more about what your plans were, what you guys wanted to do, and where you guys ended up.

Hayden  01:55

Plans are investor in three properties so we can get enough money for retirement, and also to help our kids out with their education, and help them out with the house later on in life. So that's mainly our goal.

Sylvia Ho  02:11

Okay, so as parents, basically you're saying, I'm doing this for the kids but I also want to watch out for my own retirement as well.

Hayden  02:17

Exactly, yep.

Sylvia Ho  02:19

When you first came to me, what were you looking for me to do for you?

Hayden  02:24

To help us invest in additional properties, with the same amount of payments that we're making overall, for car payments, and whatever other miscellaneous payments. Yeah, so basically, increase our portfolio to real estate.

Sylvia Ho  02:42

Yeah. So when you first came to me, what was the challenge that you guys had? Because I think you've been thinking about real estate for a while now, right? As another investment tool. So talk to me about before you didn't take action, but this time you did take action, what was that difference? And that might be a Roy question.

Roy  03:01

Yeah. Mainly, it was my nagging wife. She's been nagging me for years to buy more properties. And I've been hesitant, just, basically, because my past experiences, or at least my goal was to try and pay off our debts as quick as possible. So Hayden wanted to buy some more properties as far as investments are concerned, because we had a lot of our money tied up in our two existing properties, our home and our cottage, and wanted to diversify a little bit. You know, we have RSPs, and all the rest of that stuff, too. But mainly, we wanted to try and get into real estate, because, you know, obviously, it's a good investment and trying to get our kids in the market at some point, too, because it's pretty challenging for kids nowadays to even think about buying properties in the future. But mainly, yeah, Hayden has been after me for a long time to do that. And I was, you know, pretty hesitant about it, but she finally broke me.

Sylvia Ho  04:05

So what part were you hesitant about? This is very interesting, because a lot of individuals feel the same way as you do, Roy. Where they're like, I want to pay off my debts first, I want to get rid of debt first. So what made you change from let's get rid of all our debts, because you guys are pretty much mortgage free.

Roy  04:26

One of the things that pushed us, I guess, was just the recent influx in the real estate markets. Obviously, prices are astronomical at this point, you know, people are paying outrageous amounts for property. And at least our thought was our kids are never going to be able to afford to get into the market unless we try and help them. And with all the assets that we have tied up in our current real estate, we figured we might as well try and put that money to use. Up until now we've always dealt strictly with the banks for our mortgages and stuff - we've never really used a broker before - and, I think, your method for doing this is something we really hadn't considered or even heard before. So it just kind of intrigued us a little bit, you know, helped push us over the edge to try and make the move.

Sylvia Ho  05:11

Okay. So there's two schools of thinking. There's old school thinking and there's new school thinking, right? And you guys attended my webinar, did that impact you in your decision at all? To do that?

Hayden  05:22

Definitely. Yeah. Because we grew up with the old school of thinking. Go to school, get married, get a job, yeah.

Roy  05:30

Pay off your debts.

Hayden  05:31

That's right.

Roy  05:32

Retire.

Hayden  05:33

That's it. And die.

Sylvia Ho  05:37

Old school thinking. So if we're gonna recap old school thinking, old school thinking is what you just said, right Roy? Get rid of my debt.

Roy  05:46

Yep.

Sylvia Ho  05:47

And then retire, right? And then, so, now it sounds like you guys have moved over to new school thinking. So what does that mean to you? Like, what is new school thinking to you? What does that mean?

Roy  05:56

Beautiful, thank you very much for explaining that. We got to lead ourselves to be able to lead our kids as well, right? So you're leading your oldest son right now, just by showing him all this stuff, just showing him what the J.O.M.P. Program is all about. Now, you did mention in the past you've just dealt with banks, and now you're working with a mortgage broker. Do you notice any difference between working at the branch level versus working with myself?

Roy  05:56

Taking advantage of the assets that we have built up in our current properties, and also taking advantage of current interest rates are relatively low, they are going up a little bit now. But still, as far as borrowing is concerned, and our financial position ourselves, we can, you know, I think we can afford to do this. And, in fact, it's shown us that we can do this and reduce our monthly output, which is substantial, and ,hopefully, increase our cash flow a little bit, you know? So we're not looking to get filthy rich, we're just trying to make some headway, again, for our kids and