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Sound far-fetched? Not according to B.C. Real Estate Investor, Teacher & Author Ozzie Jurock. Jurock’s article called “Making a Million With No Money – You Still Can” illustrates how you can create $1 million through real estate without investing your own money.

Ozzie argues that $1 million is obtainable if you follow his investing plan… and its a good, simple, and easy to execute plan at that.

Ozzie Jurock is the kind of person you either love or hate, especially in B.C. where real estate is a hot and very emotional topic.  Great sense of humour and often full of cliches such as “the best time to buy real estate is five years ago” and “there isn’t any such thing as a good or bad market, just good or bad deals” adds humour to his excellent vision and insight.  Ozzie’s  consistent message to subscribers always is to take action… And that’s not necessarily a bad message if the action steps are researched appropriately (ie ‘due diligence’). 

Jurock’s article is interesting because buying in one of Canada’s hottest markets flies in the face of the mass perception that Vancouver is overvalued.  Also, I think we can extrapolate some of the strategy here in London Ontario where historically there is far less volatility… and where current investment price-rent fundamentals are much more closely aligned.

Ozzie manages to sidestep the eternal “bull vs bear” debate (a ‘bull’ is someone who believes real estate will continue to go up, ‘bear’ is someone believing the market is on the verge of collapse and will crash) that dominates Vancouver real estate conversations in this article.  He does this by pointing out that his plan does not include appreciation from the properties.   Obviously inflation and supply and demand will dictate price direction (and in the long-term with inflation price direction will undoubtedly be upwards) but property appreciation shouldn’t be fully planned on. Instead, Ozzie suggests taking it right out of the equation alltogether. 

Ozzie recommends focusing attention to the investment fundamentals and the strategies of buying properly, financing correctly, and anticipating various variables entailed in property management.   I believe some of the things he mentions could be useful, especially in our London investing environment.

Anyways, here are the nuts and bolts of his argument, I’ve cut and pasted the following straight from the article as follows but you can read it in full here.

OK, what plan should you do if you want to make money on real estate?

Forget the fad downtown condominium market, the fad condominium hotel deals, the strange fractional market, the “get rich quick schemes,” it is smarter to invest for the long term. Note, the key word here is “invest.”

If the goal is to have $1 million in cash in 20 years, here is how you can achieve it:

1) Buy five condominiums in growing urban areas such as around the Lougheed Mall in Burnaby, in the Fraser Valley – yep Chilliwack – around Edmonton University, in Calgary, or in some good small towns – Kamloops, Nanaimo, others. Remember urban real estate will always have a use and as such will always have value.
2) Buy into a good building (research it) and pay no more than $100,000 for each unit.
3) Get a rental income of about $800 for each condominium.
4) Finance the purchase 100 per cent (or so)
5) Own them in 17 to 20 years, clear title.

Even if they never go up in value and the rental income never were to go up – you will get $4,000 per month income forever (and then your kids – forever). An income of $4,000 per month today would pay off a $1 million dollar mortgage. Presto! You are a millionaire! And the best part … even if prices never go up, and even if rents never rise … you will have that passive income. Who cares about markets … if you follow those simple steps. That first unit you paid off, that rental cheque of say $800 – you will get for the rest of your life … and then your heirs will get it … and then … their heirs. You get the picture. Quick flips are fun … fortunes are founded on investment.

So, get into action. After a few years on your way to $4,000 s month, you will have $1,000 then $2,000 and so on. Use the leverage of rental income. A plan like this starts you on the road to real estate investment success. To start creating passive income. Didn’t do it in the past?  Didn’t stick to your plan in the past?  Remember that your past in no way determines your future. Get your plan ready … you have 2 months. And then do some learning, hire the professionals, do some research, do not get swept up in the “multiple offer” euphoria. Invest in certainty. Get into passive income – it will set you free.

There you have it.   Ozzie isn’t against flipping properties, in fact he personally bought and sold over 91 properties in 2003 alone it was reported.   He just thinks you “need to know who you are for each deal” meaning (in his words) “are you a shark (flipper) or an investor (long-term buy and hold)”? That way you’ll be sure not to blur the lines as the two strategies are inherently different.

Which brings me to this:  Ozzie highlights some areas in the Vancouver you may or may not heard of.  Finding properties in those places for a mere $100,000 purchase price is nearly unattainable, or more like trying to find a needle in a haystack.   London however has an abundance of $100,000 purchase price opportunities though.  So let’s localize this strategy…

The goal is “passive income” right? There are plenty of places (especially condos and townhouses) selling for $100,000 with rent of $800 which is why I am posting this article – that’s a rent multiplier of 125 which is great for investing, and plenty of these examples abound here.   This is a huge advantage for Londoners looking to invest in real estate as opposed to other investors in most other Canadian cities where property purchase prices are far higher than London (yet with the same amount of rental income as lesser priced London Ontario properties).   Which area in London Ontario would be best for someone who wants to implement Ozzie’s strategy? Where’s the best ‘bang for your buck’ here? 

Consider these questions carefully and once you answer them, use it to get yourself into passive income.  It will ultimately, as Ozzie Jurock says, set you free.

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