Proactive Equals Professional: Real Estate Financing Done Right

At REIN, one of the core investing fundamentals we emphasize to our REIN member communities Canada wide is being proactive about every aspect of your real estate investing business. Being proactive is so important it’s worth spelling out the word’s definition: “serving to prepare for, intervene in, or control an expected occurrence or situation, especially a negative or difficult one; anticipatory”.

Sophisticated, professional property investors are proactive with every aspect of their real estate business. They understand timing is everything with property investing. They procure investment property pro-actively in real estate markets based on solid market fundamentals years before the masses have any clue about these markets that offer the highest returns long term. Proactive investors surround themselves with an expert team of real estate professional consultants, most notably investment focused realtors and mortgage brokers. By having an investment savvy mortgage broker professional advising them every step of the way, they will not only get optimal financing from the start with each investment property bought. These investors also know the best times for proactively re-financing their properties at the best times for the best interest rates available anywhere.

Don’t Be A Reactive Investor

You can more fully understand what a proactive investor is by understanding the opposite: the reactive investor. Reactive is defined: “readily responsive to a stimulus; occurring as a result of stress or emotional upset”. Far from procuring their properties strictly based on real estate market fundamentals as proactive investors do, reactive investors typically get persuaded to buy an investment property.

Let’s not mince words about reactive investors. For most of them there’s one common denominator in their investment property decision making process: sex appeal. Reactive investors get excited about lifestyle focused property marketing brochures. They love looking at glossy, colorful pages portraying the fun, sexy lifestyles of the beautiful, imaginary people who will live in that sexy, ultra modern pre-construction condo building someday. Reactive investors love the idea of living in the building’s hot, fast paced, youthful urban neighborhood because they have a friend who lives there.

Reactive investors get very emotional at crowded Saturday morning condo sales launch events. When they see SOLD markers going up on units on the sales board, they get distressed at the thought of getting left out. A sales person may persuade them to buy that day with the rationale that it’s better to buy first and ask questions later. They’re advised not to miss out on getting the floor plan they like best that’s available that day only at platinum pricing.

Why We Started The REIN Finance Centre

We all know about the governmental changes in the past few years tightening up Canadian mortgage lending rules across the board. Today it’s become much more difficult for REIN members for getting conventional financing for investment properties than in previous years. Today, having access to a seasoned mortgage professional is now more than just being proactive; it’s become a requirement.

That’s why REIN formally partnered with Mortgage Alliance’s Vine Group and created the REIN Finance Centre. Amongst many possible choices of mortgage brokerage partners across Canada, REIN chose Vine Group. Why? Because they successfully ticked all of our due diligence check boxes for all the things we know our REIN member communities Canada wide need financing and consulting wise. Vine Group have continually offered their expertise with their articles published in REIN Magazine plus their regular speakers at our monthly REIN member meetings across Canada in Vancouver, Edmonton, Calgary and Toronto. Vine Group have been proactive in regularly advising the REIN Finance Centre people of important upcoming changes in the Canadian financing world in the 3 years we’ve partnered with them.

What’s Important Now – New Refinancing Opportunity

Here’s the latest “heads up” the REIN Finance Centre just received from Vine Group. Vine alerted us this week about a proactive refinancing opportunity for REIN members with clients who have mortgages needing renewal in the next 3-4 months.

According to Vine Group, Canadian banks have been offering 5 year Variable rates around prime less 0.50%. However, in the past few weeks banks have been very aggressive, introducing pricing as low as prime less 1.0%. But Vine Group advises most of these lenders will only do this promo until May 31 2018 and the promo only applies to principal residence properties, not investment properties.

So if you or anyone you know have a mortgage needing renewal soon, this coming week is the prime time to switch lenders and save thousands on interest as many lenders will cover some of the transfer fees. 

For our realtor members, refinancing is a perfect reason for following up with your past clients you haven’t talked to recently and advising of them on this opportunity. This is the sort of proactive service that can result in new business directly plus referrals to people they know moving later this summer.

If you’ve got questions about this current refinancing opportunity, email the REIN Finance Centre at finance@reincanada.com. If you’ve got a client ready to go right now for refinancing, they can apply by clicking the button below.

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