006: Mike Hapke on How Real Estate is the Best Way to Increase Net Worth

Kyle Miller talks with Mike Hapke, President of Advanced Alternative Lending in Ottawa, ON. They discuss private lending and how investing in real estate is the best way to increase net worth.


Mike Hapke is a mortgage broker and President of Advanced Alternative Lending, located in Ottawa, ON. Working alongside his father when he was young, Mike developed an early passion for the real estate field. Using his prior 18 years of experience in the banking industry, Mike now works with his clients to help them find the most effective way to find success.

Mike shares how investing in real estate is the number one way to increase net worth. He also gives insights into the field of private lending, discussing why the current market is ideal for those looking for new investment opportunities.


Key Points

  • [0:29] How did you get into the business?
  • [1:49] What area of real estate do you specialize in as a company?
  • [2:47] There is a common misconception of the products and services being niche’d into a particular market.
  • [3:00] Tell us about some examples of those who would benefit from private lending.
  • [4:00] Paying premiums allowed further flexibility.
  • [4:31] Private lending can create opportunities and provide flexibility.
  • [5:24] What does a private borrower look like?
  • [6:14] Clients often need more flexibility.
  • [6:24] Expand on one-to-one lending, syndicated mortgages, and mortgage investment corps.
  • [6:48] We provide the best quality of deals, especially in light of the new mortgage rule changes.
  • [7:21] I am prepared for risks in one-to-one lending.
  • [7:44] Remember, there is a rate-to-risk.
  • [8:11] What is the typical rate of return?
  • [8:59] What are some examples of situations which would require your services?
  • [9:51] We ensure the deals are beneficial for all parties.
  • [11:03] In one-to-one, clients typically look at a 10-15% rate on a second mortgage.
  • [11:42] The market is supply-and-demand.
  • [12:05] What are the benefits of these short-term deals?
  • [13:02] Be aware of the new refinancing restrictions. Talk with your lender or broker.
  • [13:54] Be sure to have an exit strategy.
  • [14:15] What effect have you seen on the market of the new mortgage changes?
  • [16:59] These are the cheapest rates in history.
  • [17:22] Real estate is the number one factor of increased net worth.
  • [18:40] How can people best take advantage of using a private lender?
  • [19:55] Some past restrictions have been relieved in recent years, opening up opportunities.
  • [20:41] Work with a lender to invest money in a way it can grow.
  • [22:00] What is the best business advice you’ve ever received?
  • [22:42] Investing in real estate gives you credibility and experience within the market.
  • [22:28] Understand your market.


Contact Mike Hapke