Condo Millionaire Toronto MM040414

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THECONDOMINIUM

MILLIONAIREA guide to long term wealth creation through condominium

investment using Brad J. Lambs investment techniques.


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I have been buying real estate since I was 23 years old, almost29 years now. Real estate has been very good to me, it has mademe wealthy and independent beyond most peoples dreams. Ialways dreamed big, set very high goals, and worked hard toachieve them. It has definitely not been 29 years of constantsuccess and winning. I have had my shares of failures and

disappointments. I have made MANY mistakes, but I learned fromthem and have tried to avoid making the same mistakes again.

This booklet is my Coles Notes version of what I believe isimportant to know if you want to generate wealth in real estate.

This information will put you on the path to becoming a

CONDOMINIUM

MILLIONAIRE.


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Economic downturns and recessions come and go. Typically, real estate pricesfall during recessions. The key to flourishing through a recession is NOT TO

SELLand NOT TO PANIC. The smartest and wealthiest real estate investors

buy when prices fall, and they never SELL. You cannot lose any money if youdont sell. The best way to maximize your wealth and minimize your risk is to hold

your real estate for the long term at least 25 years or more. Negative growth

or recessions never last very long, typically 12-18 months followed by severalyears of positive growth as seen by the chart below. The recession of 1991 waspreceded by 8 years of positive growth. The past recession was preceded by 17

years of growth. We are in year 5 of the current recovery from the 2009 recession.

Rule # 1:

BUYFOR

THE

LONGTERM

GDP Annual Growth

Rate In Canada

THIS SOUNDS RISKY. CAN I LOSE MONEY?

YEAR

PERCENTA

GE(%)

Recessions


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The key to beating recessions is to understand them as a necessary evil. Recessions reset the economy from apeaking of excesses. An analysis of average real estate prices over the last 34 years has shown that over the

medium and long term, real estate prices haveALWAYSgone up. Below is Torontos average home price chart.

This phenomenal growth of prices is despite the existence of three known recessions of significance in 1983,1991, and 2009. The recession of 2009 has been characterized as the great recession. Torontos marketwas resilient enough to get through the greatest of all recessions without a scratch. The long term average real

estate price chart for most large Canadian cities doesnt show positive price increases EVERY YEAR, rather

an enormous positive price increase over the LONG TERM. Torontos prices have risen over 500% in a little

more than 30 years.

Average Home Sale Prices Toronto

YEAR

600000

500000

400000

300000

200000

100000

PRICE

TORONTOS HOME PRICES HAVE INCREASED ANAVERAGE OF 5.6% OVER THE LAST 30 YEARS.

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Torontos average price rises% per year!5.6


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The City of Toronto has been, and likely will continue to be, one of the safest and most lucrative cities for

real estate inALL OF CANADA. Why? Toronto has the largest, richest and most stable employers in

Canada to guarantee long term economic stability; banks, insurance companies, construction firms, andtech firms, amongst many others. So, while occasionally, during and after recessions, these companies

make moves to reduce costs and then ultimately employment through layoffs, it is SHORT TERM innature. The recession of 2009 did little to derail Torontos real estate economy. In 2012 and 2013, therewere many false prophecies of bubbles bursting and the like. The typical consumer reaction during this

period was to not spend, not buy, or not invest. This of course, is theWRONGthing to do. Eventually,within 2-4 years of a recession, government and business largesse returns after the belt tightening has

been completed. Investors should see these 2-4 year periods as opportunities when additional value canbe gained. 2014 is going to be a rebound year for Toronto setting the stage for several good years of realestate growth.

THE WEALTHIEST AND SMARTEST REAL ESTATE INVESTORS BUY

WHEN THE MARKET OFFERS ADDITIONAL BUYING INCENTIVES,

SUCH AS LOWER PRICING OR SLOWER MARKETS.

In a city such as Toronto, with a diversified employment base, this opportunity occurs during a recessionor a few years after as the businesses clear house to lower costs and reduce debt. Once this is done,economic growth expands and spending is felt throughout the city. Usually, this is seen through a realestate upcycle of several years in length.

NOW IS THE TIME TO BUY

TORONTO REAL ESTATE.


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Rule # 3:

HAVE YOUR TENANTPAY YOUR MORTGAGEBy renting your properties for the long term this allows your tenant to

PAY OFF YOUR MORTGAGE.Mortgages are typically paid off over a 25 year period, or amortization period. By

holding property for 25 years or more, and by leasing the property to tenants, an

investor ends up with a fully owned property courtesy of their tenants. Rental payments

are retiring the mortgage.

THE WORST CASE SCENARIO IS A FULLYOWNED PROPERTY AFTER 25 YEARS.Additional positives for investors are excess cash flow from rent when rent exceeds the

cost of ownership. Capital gains also greatly contribute to investment returns.


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THE BEAUTY OF RENTAL PROPERTIES

IS THAT YOUR TENANTS PAY OFF YOUR

MORTGAGE AND ADD TO YOUR CASH

FLOW, HELPING YOU GET WEALTHIER.


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Condominiums are the perfect investment vehicle forsmall investors. Essentially, buying one condo in abuilding makes you a part owner of an apartmentbuilding. Residential apartment ownership is howmany billionaires first got wealthy. This form ofindividual condominium unit ownership has hugeadvantages over owning an entire building. Condo

buildings are PROFESSIONALLY MANAGEDby large scale property management companies.Owners do not have to worry about any buildingmaintenance issues such as roof repairs, foundationwork, cleaning windows, or repairing elevators. Anowner just needs to keep the interior of their suitein good repair. This is a huge savings of time andmitigation of risk. The building also benefits fromlarge buying advantages through economies ofscale for labour, equipment, and service costs as

these items are spread over a large building. Therelationship that a property management companyhas with suppliers reduces costs due to their buyingpower with the additional buildings that theymanage. Condo buildings rent for 50-80% more thanapartment buildings because they are maintained to amuch higher standard and they are brand new. Live-in

owners will not put up with anything that reduces theirproperty value. Condo buildings even smell and lookbetter than purpose-built apartment buildings.

An investor can manage 5-20 condo units much moreeasily than a 5-plex or a 20-plex apartment building.There is far less work to do. Condos rent to a wealthier

caliber of tenant that is more likely to pay their rent asthey have less financial stresses in their lifestyle due totheir higher salary.

THE ADVANTAGE OF CONDO INVESTING IS THAT IT IS ALMOST

TOTALLY HANDS OFF, AS A PROFESSIONAL PROPERTY MANAGER

TAKES CARE OF 100% OF THE COMMON BUILDING ISSUES.

Rule # 4:

CONDOMINIUMS ARETHE BEST INVESTMENT


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1For the safety of your investment this is everyones #1 concern. No onelikes to LOSEmoney. Big cities dont collapse when one large employerleaves. Toronto is especially fortunate because the city just gets larger over

time. There is an abundance of job opportunities to keep tenants working.Additionally, big cities offer better chances for high-paying employment andtypically lower unemployment rates.

2Population growth trends and demographic trends favour the continuedgrowth of large cities over the expansion of suburbs. While suburbs may notshrink, they wont grow and expand like cities.

3Green/environmentally-based concerns will continue to force there-population of cities in favour of the suburbs and country areas as the costsof infrastructure spiral out of control. It has become financially difficult to

service outlying areas with transit, site services, and government services.

4Landlords need wealthy young tenants earning $50,000/year, or more.

These young people are in abundance in cities and fear being homeless.

5Higher city rents and wealthier tenants means less defaults for unpaid rent.Bigger jobs mean more to lose if rent doesnt get paid. This results in ahigher chance of bills being paid, especially rent.

6Torontos need for more housing density guarantees a brightfuture for condos.

7Due to rent controls, no one is building any meaningful quantity of purpose-built apartments. The stock of old apartment buildings does not hold up tomodern buildings and amenities like condominiums.

Rule # 6:

ONLYBUY

CONDOSIN

BIGCITIES-HERESWHY!


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Rule # 7:

ONLY BUY

JR. 1 BEDROOM1 BEDROOM

1 BED + DENSMALL 2 BEDROOM

SUITES

The investors goal is to find wealthytenants who are most likely to stay atenant for several years. Inevitably,this means young professionals, 22-35

years old. Buy properties that thesetenants are most likely going to rent.Typically, look for properties that rentfor $1400 - $2200 per month.


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Here are 4 types of investment suites at two of our phenomenal newToronto developments, the Brant Park and The Harlowe. At both, youare buying from floor plans as the buildings will not be completed forapproximately 1 - 4 years.

TORONTOS BEST

OPPORTUNITY FOR BUYINGFROM FLOOR PLANS

Rule # 8:

GET RICH ONEPROPERTY AT A TIME


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http://theharlowe.com/


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The Harlowe, Toronto


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The Harlowe, Toronto


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Window(s), balcony and balcony door may shift. Actual floor area may differ from stated floor area. All prices, sizes and specifications are subject to change without notice. E&0.E.

JR. One Bedroom

492 SQ. FT.

SELLING PRICE $271,900.00*

MORTGAGE AMOUNT $203,925.00

DEPOSIT (25%) $67,975.00(INVESTED CAPITAL)

AMORTIZATION PERIOD 25 years

RENT

YEAR 1 $1,500.00*

INTEREST RATES

YEARS 1 TO 10 3.00%

YEARS 11 TO 25 5.00%

MORTGAGE TERM 5 year fixed(closed)

RETURN ON INVESTED CAPITAL

YEAR 1 26.17%

YEAR 5 147.71%

YEAR 10 342.74%

YEAR 25

1258.02%*Rent increases of 3% annually.*Price increases of 4% annually.

Living/dining10' 7" x 20' 5"

BEDROOM8' 4" x 11' 5"

LL

I

,

,

LL

I

,

,

RAISED STEP

FROSTED GLASS FROSTED GLASS


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one bedroom489 sq. ft.





RENT

YEAR 1 $1,575.00*

INTEREST RATES

YEARS 1 TO 10 3.00%

YEARS 11 TO 25 5.00%



YEAR 1 22.50%

YEAR 5 127.07%

YEAR 10 294.59%

YEAR 25 1068.18%

*Rent increases of 3% annually.*Price increases of 4% annually.

Living/dining12' 4" x 12' 2"

BEDROOM9' 4" x 10' 1"

BALCONY


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http://thebrantpark.com/flash.php


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The Brant Park, TorontoNow Under Construction

ONE BEDROOM


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I

I

..

..

LIVING | DINING112 x 1510

BALCONY57 sq.ft.

BEDROOM112 x 101

DEN76 x 60

dw

f

w/d


ONE BEDROOM

+ DEN

591 SQ. FT.





RENT

YEAR 1 $1,795.00*

INTEREST RATES

YEARS 1 TO 10 3.00%

YEARS 11 TO 25 5.00%



YEAR 1 21.30%

YEAR 5 120.69%

YEAR 10 280.81%

YEAR 25 1024.35%

*Rent increases of 3% annually.*Price increases of 4% annually.

TWO BEDROOM


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I

I

..

..

dw

f

w/d

LIVING | DINING197 x 1411

BALCONY52 sq.ft.

BEDROOM 2710 x 97

MASTER BEDROOM110 x 83


TWO BEDROOM680 SQ. FT.

SELLING PRICE $431,930.00*MORTGAGE AMOUNT $310,425.00



RENT

YEAR 1 $2,100.00*

INTEREST RATES

YEARS 1 TO 10 3.00%

YEARS 11 TO 25 5.00%



YEAR 1 24.24%

YEAR 5 137.46%

YEAR 10 320.60%

YEAR 25 1187.62%*Rent increases of 3% annually.*Price increases of 4% annually.


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If you want to get started

on your path to becoming a

condominiummillionaireContact Brad J. [email protected]


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http://instagram.com/BradJLamb/#https://www.facebook.com/BradJLambRealtyhttps://twitter.com/BradJLambhttp://torontocondos.com/http://www.lambdevcorp.com/http://torontocondos.com/

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Condo Millionaire Toronto MM040414