In this podcast episode, Brian Hogben from Mission 35 Mortgages discusses the current state of the real estate market and some things that potential investors should keep in mind. He stresses the importance of understanding the supply conversation and notes that there is currently a shortage of supply. He also encourages people to take action and build their power teams in order to invest in real estate.
Brian Hogben is the founder of Mission 35 Mortgages, a company dedicated to helping people pay off their homes in less time than the traditional Freedom 55 plan. He shares his story of becoming a mortgage broker and how his company has helped so many people in their communities.
In the interview, Brian Hogben talks about his experience as a real estate investor and how it has informed his work at Mission 35 Mortgages. He also discusses his personal portfolio, which includes a variety of properties across Southern Ontario.
He discusses his passion for vacation rental properties. He explains that he enjoys the short-term nature of the investment and the opportunity to learn about new markets.
- The mortgage process in Florida is different than in Canada, and Royal Bank is now requiring a tax identification number in order to file an income tax return in the state.
- The landlord-tenant board in Florida is different than in Canada, and it is possible to raise the rent by a significant amount with only 60 days’ notice.
Brian discusses opportunities for investment in the US, specifically mentioning the potential for increased taxes and down payments for small landlords in Canada. They also talk about the current market conditions and the types of deals that are coming through their brokerage, noting that more investors are interested in flips and buy-to-rent properties.
In the current market, mortgage rates are still reasonable, and there is still an opportunity to cash flow. However, many people are waiting to see what happens with interest rates, which are expected to rise in the next few months.
There is a big opportunity right now for investors to sell non-performing properties and move the capital into vacant or transition rental properties. This is a good time to buy because rents are climbing quickly and mortgage rates are reasonable.
The average person with a $500,000 mortgage has seen their payments increase by $2,600 since interest rates went up in March. This is not a large amount, but it could cause some hardship for people who are already struggling. Salemi is hopeful that rates will eventually come down again, but it is unlikely to happen in the next year.
Investors are often advised to buy when there is little interest in the market, as this is when prices are low. However, this logic does not always apply in today’s market, where high-interest rates and high debts are present. Brian Hogben suggests that instead of waiting for a crash, investors should buy now while prices are still low.
1. Social media is playing a big role in the real estate market now.
2. There is a shortage of supply now, due to the global pandemic.
3. Record numbers of immigration are expected in the next 12 months.
There is a risk right now, but if you’re buying and holding for the long term, you can’t go wrong. If you wait to try to hit the bottom, you might miss out on a good opportunity. Taking out equity from your house to buy an investment property is a good idea in this market.
Brian is saying that it is important for mortgage agents to help their clients budget properly because payments are going to go up for some people and they need to be prepared. They also say that it is important to start the conversation with payment, not with rate, in order to avoid payment shock.
He discusses the importance of budgeting and financial planning, especially in light of recent economic concerns. They emphasize that most people are actually doing okay, but that a lot of fear and anxiety could be alleviated if we just had a better sense of our finances. They encourage people to write things down and budget carefully in order to weather any potential storms.
The best advice Brian Hogben has ever received from another investor is to just do it now. He also believes that taking immediate action is key to success in real estate investing. His favorite real estate investing resource is the REITE Club.
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