They Bought Their Prebuilt Homes – Now They Face Financial Ruin

Thanks, T.J for forwarding me this article They bought their prebuilt homes at the market’s peak. Now they face financial ruin (click for full article) and asking me to comment on it. I figured I would share my response with you all on this blog. Feel free to connect with me and share your thoughts as well:
First, to put it out there, in a good market or in a downturn, the negative news gets many more viewers than the positive. If its booming we are in a bubble about to burst each year the prices increase, then if there is some slowdown its the end of it all and we are all doomed.
It’s an ongoing rollercoaster so stay out of the day to day news and focus on the overall market drivers and data.
I think when it comes to real estate, investing or otherwise, it is important to understand that there are market cycles; The Boom, the Slump and the Recovery. You need to prepare for it all by looking at the market fundamentals and weigh all the risks ahead of time and ahead of any purchase of this magnitude. There is a big difference between speculators and investors, I recommend you be the latter.
Do not buy on market appreciation and hoping things will keep going up. That should be a bonus but not an expectation. At some point, markets take a turn so even though Premier Wynne may have sped up this process one should plan this as a possibility regardless.
It is also important to look at history and by how much the market dropped and how long it took to recover. This is not the end of the world and you should not pause everything because of some news in the media. If you do you will be in the exact same spot 10 years from now. Just ensure you make calculated decisions.
As for homeowners, I think many people live way beyond their means to begin with (no matter what they say). Personally, we use one income to pay for our principal residence mortgage, not two and our house is small and although maybe it would be nice to upgrade…it’s definitely not needed. Be satisfied with what you have and stop stretching yourselves to the limit. If something happens such as these new rules and changes that pull the prices down, you will have a buffer. The fact that they couldn’t get financing to me means they were already stretching their limit.
I do not need a $1.6M house, there are plenty of nice houses and less expensive ones 30 minutes outside of Oakville or even some less expensive ones in Oakville. Even though the bank says you can buy a $1.6M house doesn’t mean you should go buy that much house.
As for the pre-construction market, I don’t think it’s either better or worse than buying an already completed property. Just keep in mind things change, have always changed and will continue to change so always have backup plans if things change for the worse. Stop stretching yourself and live below your means so that you can better withstand these changing conditions. 
What are your thoughts on the article, I would love to hear in the comments below?




Show Notes

In this episode, Sarah sits down with award winning mortgage broker Dalia Barsoum to discuss financing options for investors.

Dalia Barsoum is an experienced mortgage broker and real estate investor who specializes in helping real estate investors scale their business without hitting the financing wall. Dalia is a well-known mortgage broker in the real estate investor community who focuses on solving complex problems and helping clients achieve their real estate goals. Dalia is also Sarah’s mortgage broker and she has saved Sarah thousands of dollars and has helped scale up her portfolio still with A lenders. Dalia is also a best-selling author who wrote Canadian Real Estate Investor Financing: 7 Secrets to Getting All the Money You Want. In this episode of “Where Should I Invest?” Dalia shares her tips and tricks for choosing the best financing options.

Episode Highlights:

· Discover the importance of planning your financing

· Learn the difference between banks, trust companies, credit unions and private lenders

· Learn how to strategically use certain lenders at appropriate times and circumstances

· Discover the difference between commercial financing and residential financing

· Learn about down payment requirements, refinancing properties and mortgage rates

· Understand Canada’s new mortgage rules and how they impact real estate investors

· Gain an understanding of the January 1, 2018 stress test

· Learn how to finance flips and properties that need significant renovations

· Learn about mortgage plus improvement options for financing

· Receive tips for purchasing recreational properties and raw land

· Discover financing solutions for the self-employed individuals

· Learn how you can grow your investment business without hitting the financing wall

Contact Information:

For more information, visit or send an e-mail to Dalia’s attention at

Getting Started in Real Estate Investing in Your 30’s


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Sarah was a featured writer for the cover story in the March/April 2018 edition of Canadian Real Estate Magazine. You can read the full article by clicking here



Getting Inside the Entrepreneurial Mind on the Daily Grind Podcast

The Daily Grind Podcast is an interview/conversational podcast where host Colin Morgan dive into the entrepreneur’s mind of how they got their start, some of the early behaviors they implemented to learn their craft, obstacles they had to overcome to get where they are, and how mentorship and self-education accelerated the process.

Listen to Sarah Larbi be interviewed on Episode 95 – click here


Listen to this episode:

Show Notes: In this episode, Sarah sits down with Stefan Aarnio to discuss house flipping and strategies for growing a business.

Today’s Guest:

Stefan Aarnio was looking for a way to improve his financial situation when he discovered Real Estate investing. Today, Stefan is a successful investor, author and educator. In less than a decade, he has completed more than 100 deals and built a thriving business. In this episode of “Where Should I Invest?” Stefan shares his thoughts on real estate and success.

Episode Highlights:

  • Discover the importance of building your brand and developing a network
  • Receive valuable tips for raising money and structuring deals
  • Learn how you can build a team of experts to help you manage your time effectively and grow your business
  • Receive tips and tricks for handling difficult deals
  • Learn how you can leverage your strengths to reach your goals

Contact Information:

For more information on Stefan Aarnio, visit

Book promotion:


Listen to this episode;


Show Notes: In this episode, Sarah sits down with Daniel St-Jean to discuss joint venture agreements and lease-to- own properties.

Today’s Guest:
Daniel St-Jean and his wife Laurel discovered real estate investing while looking for alternative sources of income. After completing their first deal in 2010, Daniel and Laurel rapidly grew their investment business.

Today, they own 50+ properties and have found financial freedom through real estate. 43 of those being rent to own properties where they were able to use other people’s
money (OPM)!

In this episode of “Where Should I Invest?” Daniel shares his formula for success.
Episode Highlights:

  • Discover the benefits of joint venture agreements
  • Learn how you can find money to start pursuing your investment goals and how you can use other people’s money to create financial freedom
  • Learn how you can go from 1 to over 50 investment properties in less than 10 years without running out of money
  • Gain an understanding of the lease-to- own strategy
  • Receive tips and tricks to help you find great tenant-buyers
  • Understand the importance of building a strong network
  • Discover the benefits of creativity and thinking outside the box
  • Receive tips for handling unexpected challenges

Contact Information:
For more information on Daniel St-Jean, check out


I was recently interviewed on the podcast “The Truth About Real Estate Investing” with Erwin Szeto, sharing my story and offering some insights on real estate investing.

The Truth About Real Estate Investing… for Canadians is by Canadians for Canadians eh? The show is exactly that, we speak truths, no get rich quick schemes, investing is a marathon, if you’re looking to get rich quick this is not the place for you. Instead, we invest based on economic fundamentals using tried and true best practices that generate wealth for the long term. The Show is hosted by Erwin Szeto aka Mr. Hamilton. Erwin is a professional real estate investor, Realtor at Rock Star Brokerage Inc., 2015 winner of Realtor of the year by the Real Estate Investment Network AND the Canadian Real Estate Wealth Magazine. He is an expert in his field and knows his business like no other. In this show, he deconstructs world-class investors, digging deep to find the tools, tactics, and lessons that all investors can use.

You can listen one of these ways;

Google Play:
Or go to Erwin’s website and access it there – click here
I would love to hear what you think, please comment below and if you think others would find it useful please share using one of the buttons. Thank you.


Listen to the episode:

Show Notes: In this episode, Sarah sits down with Erwin Szeto (a.k.a. Mr.Hamilton) to discuss student rentals and investment opportunities in Hamilton, Ontario.

Today’s Guest:
Erwin Szeto left a career in business to focus on real estate investment. Today, Erwin is a
successful realtor and investor with properties throughout Southern Ontario. In this episode of “Where Should I Invest?” Erwin shares his thoughts on investment and overcoming “analysis paralysis”.

Episode Highlights:

  • Learn how to calculate cash flow on a potential investment property
  • Gain insight into the Hamilton, Ontario market
  • Understand the benefits and challenges of purchasing a student rental
  • Discover the importance of effective networking
  • Learn how to overcome “analysis paralysis” and take action
  • Receive tips and tricks for creating balance in your life
  • Discover how you can create financial security for your children through real estate investment

Contact Information:
For more information, visit and Don’t forget to check out Erwin’s podcast, “The Truth About Real Estate Investing… for Canadians”.
ACRE discount code: erwinsguest

Click here to download my latest free real estate investing report 


Listen to the episode:

In this episode, Sarah sits down with Goretti Raposo to discuss market trends in Caledon, Ontario.

Today’s Guest:

Goretti Raposo is a successful real estate investor, realtor and business executive. Goretti developed a passion for investment at an early age, while learning about real estate from her father. She currently owns properties in Toronto, Caledon, Huntsville and Muskoka. In this episode of “Where Should I Invest?” Goretti sheds light on the Caledon real estate market.

Episode Highlights:

  • Gain valuable insight into the Caledon housing market
  • Learn how the Caledon community is changing and what to expect in coming years
  • Understand current trends and future projections
  • Receive helpful tips for choosing an investment property
  • Discover the advantages and challenges of flipping a house
  • Find out the average returns on flip properties in the Caledon area
  • Receive tips and tricks for investing in a condominium

Contact Information:

For more information, contact Goretti Raposo by e-mail at or by telephone at (416) 988-5808.

Click here to download my latest free real estate investing report