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3 mothers, 3 investments strategies, 1 goal

by Justin da Rosa on 03 Feb 2017
The “Mothers of Real Estate” talk investment strategies, their unique training program, and the upcoming Investor Forum.

Gillian Irving, Monika Jazyk, and Rachel Oliver pursue very different investment strategies: Student rentals, buy-rent-hold, and rent-to-own.
But they have three things in common: They’re all mothers and real estate investors who hope to help others achieve their investment dreams.

“We all came together, three mothers, three very active real estate investors, three totally different strategies,” Jazyk told Canadian Real Estate Wealth. “We thought why not form a motivational, inspirational group, called the Mothers of Real Estate, where we can inspire mothers and others? Because if we can do it, anybody can do it.”

The three got together, fittingly, around Mothers’ Day 2015, to form the group, which offers training for new investors that is based on a course by Julie Broad they had all attended.

“We offer a proven system, a course that’s a proven system – Confused to Confident in 7 weeks. It’s perfect for busy people like us. A lot of courses are very expensive and when you have kids your money goes to your kids and family first and foremost,” Jazyk said. “We wanted something more affordable but a real, hands-on proven system that works for people who can’t take three days off work.

“We have an online course and it’s extremely affordable so people can use their hard-earned funds to invest in real estate and not put it all into education and then have a deficit that takes a while to pay off.”

The three Mother of Real Estate (MORE) will be sharing their experiences – as well as strategies for juggling life, families and real estate aspirations, at the Investor Forum in Toronto On March 4 at 8am.

CREW spoke with the members about their unique investment strategies.

Gillian Irving -- student rentals
I think of all the strategies, this is the one that invokes the most fear in people’s minds. It invokes images of Animal House, beer guzzling teenagers and young adults who can’t wash dishes or clean houses. They think of parties and disaster.

What I really like about student rentals is I really feel the scary part about student rentals – the tenants that are unruly and unmanageable – they’re really easy to deal with. It comes down to no more than having a pretty good property manager and what I call a bulletproof lease. We can structure leases so that we can protect ourselves from the real dangerous stuff like them destroying the house.

What’s really great about student rentals and why I chose this as a strategy is if you think about one house rented to a single family and then imagine taking that house and renting each of the five or six bedrooms individually.

All of a sudden, a single family home that could rent for $1,600 can now rent for $3,000. That’s really just extra money in your pocket each and every month. It’s an accelerated strategy for cash accumulation.

You’re selling a tiny little functional business to someone when you want to sell the house. The cashflow aspect of it was really what appealed to me most because I wanted a strategy that put money in my pocket each and every month.

Monika Jazyk – buy, rent, hold
The reason I started investing was I wanted to stay home with our children. My goal was to create passive income every month but I also wanted to have a long-term wealth builder as well. My first goal was to pay for my kids’ university education.

When we started out, it was more northern Ontario and we were picking up these little homes for $40,000 and renting them out for $900 a month. They were little ATMs generating $4-500 a month in cash.

We continue to reformulate our goals as well. First it was so we could stay home, then it was to fund the four educations, then it was the retirement and now my husband has been able to leave his job fulltime. It’s continued to grow and refocus.

Rachel Oliver, rent-to-own
My strategy basically was born out of the need to not want to be a landlord. I was afraid of all the landlord responsibilities; didn’t know how to manage property managers, and I shied away from anything that had maintenance and repairs attached it because I’m not a handy person.

I really didn’t want to get involved with additional work. I basically identified R2O as one of the strategies that could help me establish my goal of staying away from maintenance and repairs because the tenant that will be the future buyer will take care of those repairs. They’re emotionally and financially invested.

They’re bringing in usually 4 or 5% down toward the purchase price of that property. Not only is my cash now being offset by their contribution, they’re not invested as well to make sure that this property works the way they want it to work.

They’re trying to get into a position of home ownership so you’re not dealing with the typical tenant mentality.

I really wanted a situation where I could help somebody. And rent to own has that purpose in mind; it’s not just about making money.

I did want cash in my pocket; I wanted to replace my salary so I needed a strategy that put above-average cashflow into my pocket without maintenance and repairs, without volatility of vacancies, and rent-to-own offered that strategy.

I originally set out to do four of them, however once we started opening up the opportunity to families, our phones continued to ring way after we placed the first four families. We realized this is a real need; there are a lot of homebuyers out there that have major credit issues but have good jobs and savings and they just can’t get a mortgage and they need a helping hand through the R2O process.
 



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