Getting a head start by beginning early is the most effective way to build wealth, with investment taking precedence. I've learned from last year's experience that starting early allowed me to create a better life through early investments this time around.
I always consult a financial advisor before investing. During the pandemic, I used their strategies to minimise risks and maximize profits, generating around $3 million in three years with my advisor, Jenny Pamogas Canaya.
I got lost on the interest earned. I thought I heard that the interest earned was outside the RRSP (that leant the money). Specifically, that the interest earned was available to the lender in its entirety. Is that correct? If so, that money would be added to, for example, T4 earnings, yes??
The profit gained from the spread, which is outside of the RRSP, this profit would get taxed at whatever tax bracket you are in? Or would this not get taxed since it came from an RRSP ( im guessing no)??
Wow what a gem. Thanks for the info. What if the RRSPs have matured and are just sitting around, is this still possible? Would a credit union or mortgage broker be best to facilitate an arm's length loan? Thanks again!!
From what I’m learning you’ll need to move the secured RRSP from the guided bank, to a self direct secured company. I’m not certain as to the next steps, but I imagine it’ll be a learning process.
if you have a TFSA with 6 figures in it, are you able to leverage it as collateral to get funds to buy real estate? Im curious to see if I can get a mortgage or loan without selling off the stocks/ETFs in my portfolio but using it as collateral instead
Is there no fees for whomever is setting up the rrsp "loan"? He said you could loan 8k , does that mean the fees for arranging the 8k loan would not offset the profits?
I am preparing to go down this road - getting my ducks in a row, so to speak. I recently heard Paul speak about this but had some lingering questions and this has answered them all. Hearing it again with new examples was fantastic. Thank you both!
If I lend out my RRSP funds as a mortgagor at say for example 4% to a developer, and the project DEFAULTS on repayment, either on interest payment or principal amount too, how is that accounted for in my RRSP?
It's like any investment loss, you're underwater on that specific investment. What you can try to sue the developer to get back the funds. In most cases, it's not worth the hassle for the return you'll get. If you hold an equity portfolio and pay 2 percent MER, you'll still have an 8 percent average return after fees. Let's suppose you want some stability, you could choose a High Yield Fixed Income fund which actually would be less risky than a private mortgage on one property since the risk is spread out over many issuers. If you're keen on taking on no risk, you could hold a GIC at 5 percent
I'm at the point where I'm in the middle of a career change, and I need to choose where to manage my RRSP. I'm a novice real estate investor, just learning about private lending for bigger deals. Which company would you recommend for a truly self-managed RRSP?
It was a struggle to desert my mutual fund advisor of over 20 years. I heard all the horror stories, and doubted myself. But I've been doing private mortgages with my registered funds for a couple of years now, and I've never looked back.
@@backgetters Essentially you have to transfer the amount of registered funds you wish to invest to a "self-directed" trust account like Olympia Trust. This can be easy or difficult, depending on where you currently hold them. Also because it's a "transfer", there are no taxes involved. Talking to a good mortgage broker might help, as he or she may have access to private lending opportunities that are safe and legal. There are pros and cons to private lending, especially to strangers, so always consult an expert and know the risks.
Can you re-explain the syndication process again? Say I lend $200k in RRSP to Maria, she lands my own RRSP to Paul, when Paul lends it back to me. Is that correct?
Account transfers should not take 8 months. Generally you send an account transfer and pend the file for 20 days. Once the transfer is initiated, it can still take longer than 4 weeks to have it completed.
How much is the interest and how long would the money be "loaned out" for? I am interested in making my RRSP fund work harder for me, but I have no idea where to begin. My investment advisor has always spoken negatively about investing in real estate, but I totally understand why he would be against it.
I'm not a big fan of any advisor that speaks negatively about any other kinds of investments just because they don't sell them. I call them Financial Hacks!
You could enrol in my Lender Academy. It's a course dedicated to teaching these kinds of strategies. www.darrenvoros.com/academy-courses/lender-academy
Getting a head start by beginning early is the most effective way to build wealth, with investment taking precedence. I've learned from last year's experience that starting early allowed me to create a better life through early investments this time around.
I always consult a financial advisor before investing. During the pandemic, I used their strategies to minimise risks and maximize profits, generating around $3 million in three years with my advisor, Jenny Pamogas Canaya.
With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
This has been some of the finest Canadian financial value I've ever heard. Thank you.
Wow, thank you Miguel!
@@DarrenVoros thank you Darren!
Wow! That’s amazing! Thank you Paul!
I’m blown away! I’m going to watch as many times until I can speak it. Amazing.
Fantastic, glad you enjoyed the video Michele!
That's really amazing, I need to watch again. thanks for the information
Glad it was helpful Ricardo!
I got lost on the interest earned. I thought I heard that the interest earned was outside the RRSP (that leant the money). Specifically, that the interest earned was available to the lender in its entirety. Is that correct? If so, that money would be added to, for example, T4 earnings, yes??
Thank you for the video! Subscribed! 😊
I guess the only cost of transferring from one institution to another is the penalty the bank we moving the account from will charge?
So what do you both use instead of RRSPs?
Very clear explanation. Thank you.
Glad it was helpful, thanks Roy!
The profit gained from the spread, which is outside of the RRSP, this profit would get taxed at whatever tax bracket you are in? Or would this not get taxed since it came from an RRSP ( im guessing no)??
No tax, as the profit will also go into the RRSP.
I might have missed this part...but does the money in the RRSP have to be cash? AKA you need to sell all of your mutual funds to then lend?
Wow what a gem. Thanks for the info. What if the RRSPs have matured and are just sitting around, is this still possible? Would a credit union or mortgage broker be best to facilitate an arm's length loan? Thanks again!!
From what I’m learning you’ll need to move the secured RRSP from the guided bank, to a self direct secured company. I’m not certain as to the next steps, but I imagine it’ll be a learning process.
Another great session, thanks Darren and Paul!
Glad you enjoyed it, thank you Linda!
if you have a TFSA with 6 figures in it, are you able to leverage it as collateral to get funds to buy real estate? Im curious to see if I can get a mortgage or loan without selling off the stocks/ETFs in my portfolio but using it as collateral instead
I'll answer this on the Ask Me Anything today (Dec 23rd). Tune in at 12pm EST.
Can you provide a list of institutions within Canada that will administer non arms length mortgage in RRSP please?
Olympia Trust, Computershare and Canadian Western Bank are the ones I know of.
Is there no fees for whomever is setting up the rrsp "loan"? He said you could loan 8k , does that mean the fees for arranging the 8k loan would not offset the profits?
Thank you so much, great information.
No problem!
I am preparing to go down this road - getting my ducks in a row, so to speak. I recently heard Paul speak about this but had some lingering questions and this has answered them all. Hearing it again with new examples was fantastic. Thank you both!
Wonderful! Best of luck to you Maria!
How does one do this in a passive perspective?
If I lend out my RRSP funds as a mortgagor at say for example 4% to a developer, and the project DEFAULTS on repayment, either on interest payment or principal amount too, how is that accounted for in my RRSP?
It's like any investment loss, you're underwater on that specific investment. What you can try to sue the developer to get back the funds.
In most cases, it's not worth the hassle for the return you'll get. If you hold an equity portfolio and pay 2 percent MER, you'll still have an 8 percent average return after fees. Let's suppose you want some stability, you could choose a High Yield Fixed Income fund which actually would be less risky than a private mortgage on one property since the risk is spread out over many issuers. If you're keen on taking on no risk, you could hold a GIC at 5 percent
How do i get into private lending? How much would i need to start?
Great info. I learned a lot.
can you convert rrsp into rrif and then invest it in a regular stocks and get tax deductible?
I'm at the point where I'm in the middle of a career change, and I need to choose where to manage my RRSP. I'm a novice real estate investor, just learning about private lending for bigger deals. Which company would you recommend for a truly self-managed RRSP?
Olimpia trust
Amazing stuff!
Glad you enjoyed it Chris!
I love this video! Very informative👏🏽
What is MIX?
Love your discussion.
It was a struggle to desert my mutual fund advisor of over 20 years. I heard all the horror stories, and doubted myself. But I've been doing private mortgages with my registered funds for a couple of years now, and I've never looked back.
How? Im getting more intrested in private lending. I have some capital, but do not know where to start.
@@backgetters Essentially you have to transfer the amount of registered funds you wish to invest to a "self-directed" trust account like Olympia Trust. This can be easy or difficult, depending on where you currently hold them. Also because it's a "transfer", there are no taxes involved. Talking to a good mortgage broker might help, as he or she may have access to private lending opportunities that are safe and legal. There are pros and cons to private lending, especially to strangers, so always consult an expert and know the risks.
@@Anniducati Thanks Anne
Can this be done with a locked in RRSP ?
Yes it can.
any trust companie recommendations? Olympia Trust. anyone else?
Community Trust is another one.
@@DarrenVoros Thank you Darren!
Can you re-explain the syndication process again? Say I lend $200k in RRSP to Maria, she lands my own RRSP to Paul, when Paul lends it back to me. Is that correct?
Account transfers should not take 8 months. Generally you send an account transfer and pend the file for 20 days. Once the transfer is initiated, it can still take longer than 4 weeks to have it completed.
Future webinar? Setting up a syndicated mortgage using registered funds. Pros and cons.
How much is the interest and how long would the money be "loaned out" for? I am interested in making my RRSP fund work harder for me, but I have no idea where to begin. My investment advisor has always spoken negatively about investing in real estate, but I totally understand why he would be against it.
I'm not a big fan of any advisor that speaks negatively about any other kinds of investments just because they don't sell them. I call them Financial Hacks!
Would love to connect on a call
Thanks for reaching out via FB.
I wish there was a way I could educate my husband so that he can make more money from his RRSP money
You could enrol in my Lender Academy. It's a course dedicated to teaching these kinds of strategies. www.darrenvoros.com/academy-courses/lender-academy