Daniel St-Jean - RPDRS

Daniel: This dynamic individual is an entrepreneur to the core. He has been his own Boss for over 35 years. During that period of time, he's generated millions of dollars of business for his clients, customers, affiliates, and investors. He loves to help others, which is one of the reasons why he helped start The REITE Club. Daniel and his wife Laurel, started their real estate investing business, Safe & Sound Real Estate Investment Group in the spring of 2010.

In 9 years, they have purchased 60 plus properties with over $25 million. It's been 100% financed with other people's money. His big reason is to be able to go on vacation, travel the world with his wife, Laurel, at least six months of the year. I think that's starting to become like a pattern now. He's got a plan to make it happen. My honor, my business partner, our founder of The REITE Club, Daniel St-Jean.

Thank you. First of all, you can turn the screen off if you want cause this is going to be very boring. Just think of this as me doing a webinar here in person. I don't have slides or anything because I don't have their systems. I worked like a sob and I didn't have time to make slides. I had to break, we already talked to the founders. We are going to get these guys to come back and do a full day, like nine to five. Not just say you should do system, but how you do systems and the whole thing we're going to talk to you guys later on, but we have a couple of Saturdays where we have booked in this hotel.

We'll see if we can use one for you guys, because obviously by the reply here, I think that there's a little bit of interest in that. I'm going to go through this because if I don't, I'm going to speak for 40 minutes. I only have 18, since I've already used up to talk about something that wasn't going to talk about. I want to talk about RRSP mortgages, who here uses RRSP mortgages to finance their property?

At the end of June, 2019 Canadians at 1.325 trillion with a key in registered funds. Now the average price of a house in Canada is $500,000. If you are going to buy that house with a 20% mortgage, that would be a hundred thousand. 1.325 trillion means I put an RRSP mortgage of 20% on all 13 million houses in Canada. That's how much money there is in funds. But nobody knows about it and nobody uses it. Why? Because the banks were doing it until April, 2012, but they stopped doing it.

The banks are not doing it and they're not talking about it. Guess what people in general don't know about it. There's only four or five trust companies in Canada. We can do that. Recently, I was at an event like this and I asked 50 people what they use for their sources of funding. A hundred percent of them said they use banks, a hundred percent said they use cash, 82% said they use line of credit, 44% said they use private lenders, but only 9 out of 50 said, which is 18% said they use RRSP to finance their property.

As Alfonzo was mentioning a minute ago, we have acquired 61 properties over the last 10 years. All of them are financed by a hundred percent loan to value because we use RRSP mortgages in second position to finance those deals. For us, we've done 80 RRSPs, about 5 million. We love them. We use them all the time. I encourage everybody to learn how to use RRSPs to finance your property. Whether it's with me, cause I give a course, there's some information on the table there about that.

I'm starting to teach people how to do that in the next few weeks, but whether it's with me. Paul Black hair as a fabulous program, or Greg as a great book on it. You can ask me later about details about that, but do use them I said earlier, there's 1.325 trillion of money out there. Most of it is sitting in a bank account doing nothing, or it's invested in the stock or mutual funds that are going like this.

When you approach somebody and you're going to put their money or put their money in a deal for three years, and the way the system works with Dell NPR and the way you set them up, it's not pretty much guaranteed they'll get it back with the interest and you're offering them 10%. They're like, wow beside themselves. It took me three years, I think, to get my chiropractor to invest his first 35,000, cause he's with a Santi and everything that's where he puts his money.

Now, he has almost 500,000 of RRSPs in different properties because you start not to talk to other people to bring them on board, to the fact that you don't have to leave your RRSP somewhere, earning nothing. There's some really good options out there. I encourage you all to do more research and more thinking and more learning about using RRSPs. It's an amazing source of funding for your properties.

Rent to own. First, here's why I think you should pay attention to the next eight minutes. I teach my students an RTO course and I tell my students that I want them to do what I call the 10 in 3 strategy. That means you'll set up 10 deals in three years, two in your first year, three the next year, five the year after course, if you use their system, you can probably do the first month, three the next month. But anyway, you guys just blew my mind. I teach them to do that. And this is very doable in my view.

Based on the 49 deals that we've setup. This is the way we do it. Alfonso does it a different way, but the way we do it, I've estimated that to set up, to do a rental deal from start to finish, it takes about 50 hours. And for me, it takes about 50 hours. If I was to Atlanta, if I was to teach you how to do 10 deals over the next three years, that's about 500 hours of work, which means 156 weeks.

We're looking at about three hours a week of consistent work that would get you 10 deals at the end. At the end of three years. My cashflow, my properties, the last one that we've done, the last 12 or 15 cash flows 915 a month. If you have 10 deals at cashflow 915 a month, that's $9,000 a month. About 110,000 a year for three hours a week. Pay attention to the next five minutes cause I'm going to be talking about that. Here are the 10 best reasons why you should RTO.

Number one, rent to own deals are much less work than a lot of other strategies. In my experience. Number two, they provide very high cash flow as I just mentioned. Number three, they provide immediate cash flow. At Atlanta, you're going to go buy a buy and hold tomorrow. Before you even have a renter, you need to pay inspection, appraisal, possibly and then of course closing costs. You'll be about 7,000 to 7,500 out and then you're going to start cash flowing, hopefully $300 a month. Let's say that's going to take you 30 months just to get back the money that you put out roughly.

With rent to own before I go anywhere, I get a $2,000 nonrefundable deposit. And then before we buy the house, I get the rest of the 4% of the purchase price. If you buy a house for 500, I get 20 grand in my bank account in my pocket before we even get the key to move into that house. And then it keeps the 915 keeps coming and whatever. That's one of the things I love about rent to own. I never ever use a dollar of my money. I start right away with the money from the 10 buyers. I'm never in the red, I'm always in the black with the RTO system.

Tenant buyers take care of the property and often improve it. They are responsible for $2,000 a year to repair and maintenance.Reason number five. Very detailed contracts, way better than using leases. We don't use the Ontario lease. We have our own contracts. It even tells them how many cars they can park in the driveway and the condition of the cars that they parked in the driveway. We're not dealing with it. This one you're going to like.

We use contracts and we don't use leases. I have to kick somebody out, that hasn't happened yet, but if I have to kick somebody out, I do not go to the Landlord and Tenant Board because this is considered a commercial enterprise with them.

I can put a lock on the door. I can kick them out, whatever this is, they would be in breach of contract. This is not a lease. They're not tenants and they're not paying rent. They are occupants paying an occupancy fee. We would not be dealing with the Landlord and Tenant Board.
Point 7. The relationship is very smooth. Usually it's like teamwork, number eight, you don't need a property manager because of the reason I just gave you less headaches and expenses potential for great profit. I can explain that better if you come and see me at my table. Of course there's a very big market for rent to own right now.

I have ads in 10 different cities, 15 ads on Kijiji. I get about 30 to 40 applications every week from people who want, and I do one a month. Maybe one every quarter right now, because we're busy with something else. This, for example, is a big market. Every time the banks raise the bar and make it more complicated, boom that's another sectional portion of people who can't qualify for a traditional mortgage. They're looking for rent to own.

Alfonso, you're up to 150 now? Two weeks ago, we were at the convention for which is the Canadian Association of Rent to Own Professional. Homeowners soon have done a thousand homeowners now are approaching a thousand. Rachel Oliver, for those that know hers is over 300. That's a spit in the ocean. Really there's a lot of room there for more people to do rent to own 10 minutes in queue.

As I mentioned at the start, I want to change the way people think of rent to own. I want to change the way they do it. Again, educate yourself about rent to own and talk to me, talk to Alfonso. If you want to have information about the course, which includes mentoring and all the contracts and all the agreements and everything else, just come and see me the rest of the day. I'll be here and now. I want to talk about this for eight minutes.

Let's talk about JV, who here by a show of hand again please raise your hand. Cause I need to know what I'm talking about here. Who here has done at least one JV to buy or do or any. I'm going to assume that everybody in the room here has done it the traditional way, the 50, 50 split or something like that.

Why use JV? The short answer is no wall because once you start using JVs, there is no limit to the number of deals that you can do if you fly solo. Unless you're Bill Gates or Warren Buffet or you're going to hit a wall at some point. The traditional way of course is when somebody you do a JV, meaning either they bring all the money and they bring the mortgage and you do all the work and you split.

If you weren't going to sit, talk to my wife at the back there. She would tell you that hooked on the word control. I think she would say it in a different way, but anyway, from day one from our very first deal, I realized that if I'm going to go with somebody and we're going to split basically to me it means no control. That's what it means to me. I came up with a way of setting up JVs and I am still to this point, except now I'm starting to teach a course.

I'm going to change this. I'm going to be like the Netflix blockbuster, watch me. I'm going to start teaching this because I promise once you see how I do them it's going to blow your mind. I didn't want to split anything because I wanted to be in control. I invented the lawyers that did all the contracts and everything else good. Now I took that to my accountant. My accountant said I've been doing this for 23 years, George Dube. He says, I don't really know how to deal with this. Let's go to CRA.

CRA did two meetings with directors to do a ruling on our contracts. We're totally fine. They're totally happy with it. They actually suggested some of the wording in our contract, but they had never seen this. If you do something that CRA has never seen, you can be sure you're the only one doing it. Here are the highlights, the investor who gets the first mortgage is referred by CRA as the legal owner of the property. We are the beneficial owner of the property on closing their disposition. In the end, all the leftover money comes to me because I'm the beneficial owner.

The beneficial owner, me, gets to keep all the net profit from the deal. I'm not splitting a loony with anybody who is involved in that deal. The beneficial owner, me, is a hundred percent in control of the deal at all times. It's my deal. Think of it as me driving the car and everybody else is a passenger on my deal. I make all the decisions. I communicate my decision to my investors, and that is that, I don't do proforma. Because they don't need to seek to see the way I do it.

Everybody on the contract is guaranteed to return no matter what happens to the deal. They're not responsible for any expense or anything at all, it's all on my shoulders. I have more responsibilities, but I get to keep twice as much money at the end as they do. But they're guaranteed. They're returning. If I have five deals with you and you know exactly what you're going to get, when you're going to get it, how much time do you want to spend with me talking about the properties depending on time. You don't care because when the contract ends, I'm writing you a check and that set so that people absolutely love that the legal owner is paid a service fee for rendering a service.

The same way I would pay my property manager, home inspector, et cetera and then in the following February, I send them a T4A for earned income. When I explained this next one here to accountants, they shook their heads because of course they've never seen my contract before, but it's a hundred percent accurate. While you would be the owner of one of my properties and you're the legal owner, all the accounting, bookkeeping depreciation, appreciation expenses goes on my financial statements, not yours.

Even the accountants shake their head on that. But think about it. If you are doing seven or eight deals with me, how much less work would that be. You don't want to have to do any of that stuff. That's all for me. Thank you. You might be thinking that this is way too one sided and no smart investor would go for this, but they do. And they repeat because there are a lot of people out there who are looking for passive investment. They have their own deals. They have families, they have kids, they have whatever, and they love the idea of getting on a deal where they're going to be and partnering with us.

They know exactly what they're going to make when they're going to make it. If the tenant doesn't pay, stunted their problem, it's mine. If the roof needs to be replaced, it's not their problem. It's mine. Although that would be added to the price of the house at the end, cause that's in the contract on a rent to own. But anyway, all that to say, I want to show people that's why I started this course now. Call me or talk to me later about information, but I want to change the word the way the real estate world is doing JV. Once you see it, it will blow your mind. That's it for me for today. You'll find me here the rest of the day. Thank you very much.