Real estate investing in Canada can be confusing. You own your first home, but where do you go from here? How do you build your portfolio and your wealth? The confusion ends here.
Quentin DSouza is your host, an award-winning real estate investor and founder ofAppleridge Homes, which started with small single-family homes in 2008 and has grown to large apartment buildings and growing towards 100 million+ in assets under management.
Introducing Quentin D'Souza, Host of the EducationREI podcast. Get insight into his background and experiences in Real Estate Investing. Show Notes: Getting Started in EducationREI series is an opportunity for you to be a fly on the wall of some of the conversations that I have with different members who are part of https://educationrei.ca (EducationREI )and https://durhamrei.com/ (DurhamREI). I wanted you to get a sense of some of those conversations, as well as how I'm helping them in their real estate business, and how sometimes they're helping me in my real estate business. Just so you know who I am. My name is Quentin D'Souza, I'm an award winning real estate investor, trusted authority of investing. I'm certified teacher, I hold two university degrees, which includes Master's in education. I quit my job in 2014 as a as a teacher with the Toronto school board, I was there for about 20 years, I quit at 40 years old. And I haven't looked back since. It's been a really interesting and gratifying experience to move away from the public system where I was in on the sunshine list, which was, it's basically public sector employees who earn over $100,000 was on my way to be an administrator or principal in the system, and decided to focus all my time on my own business. I've appeared on local and national television and radio. I've been interviewed in national publications. I've been a keynote speaker to large audiences of real estate investors. I'm a proud member of the entrepreneurs organisation which has certain criteria to be accepted. I have been accepted in Tiger 21. Again, which is an organisation that has a certain net worth that is required to be accepted. You could look both of those up. In my company Appleridge Homes, I use the buy, renovate, refinance, rent (BRRR) long term rental properties since 2008, started off with single family homes moved, over to apartment buildings, where I focus now. Im investing both in Ontario and in the US. My Portfolio really focuses on Win Win relationships between myself and the people I work with. We currently have over 75 million+ in assets under management. I'm the author of multiple books http://www.theontariolandlordtoolbox.com/ (The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords), http://www.theontariolandlordtoolbox.com/ (The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate) http://www.theontariolandlordtoolbox.com/ ( Investors and Landlords for Renting Out Residential Real Estate). I co-wrote a book with two friends of mine http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate). And my last and latest book,https://amzn.to/3jjtXLg (The Action Taker's Real Estate Investing Planner), which is half book and half planner that helps you to achieve your real estate goals. You can find any of those books on Amazon. I no longer offer coaching but I mentor real estate investors through the club and you can listen to those conversations or at least some of those conversations through this podcast. I hope you enjoy your listen and if you'd like to learn more about the club, you can visit https://durhamrei.com/ (DurhamREI) or https://educationrei.ca (EducationREI) enjoy the podcast
4 min 13 sec
In this episode, I'm talking to a new member of EducationREI.ca, where we get them familiar with the material, find their goals and direct them on where they can get started working toward those goals. Quentin talks with a new member, who moved to Canada in 2006 as a first-generation migrant from India. He became interested in real estate in Canada while working at one of the top five banks in Canada. Meanwhile, he used the buy and hold strategy in India. After marriage, he and his wife decided that they wanted to become homeowners, which they were able to achieve. Now, they want to achieve financial freedom, and want to start with some cash flowing properties. To sustain their lifestyle, they are looking at an income of 100k. Talking about what the financial freedom looks like for him, he says that it has more to do with the time, what they could do, and the location they could be at. Quentin shares a complete blueprint to help them get started with real estate investing. He says that if you've got 500k and you want to create $8,000 a month for cash flow, as you're investing in property, you’ll end up with cash flow that starts off smaller but increases over time. At the same time, you need to be careful. He adds that cash flow helps you to hold on to an asset, but what is really going to make you money is the mortgage paid down and the capital appreciation with that product. Over time, as you own that asset, let's say five to 10 years, then you can refinance the property. You can also use the cash flow to help support your income. He says that you have to have a longer-term mindset, there's too much of a day trading mentality when it comes to a lot of things, which is as true for real estate as it is for the stock market. He adds that the way that you do well is, you have to invest in markets that are both appreciating and give you some cash flow. You can find cash flow by doing different strategies; working privately, networking with other investors to find opportunities, looking at areas along the 401 Corridor, etc. He recommends the courses to start off with is ‘Your First Million in Real Estate’, to learn some of the fundamentals that you want to be looking for when you're looking at all these markets. He further adds that you need to stay away from some of the smaller communities, because they can have these big rushes of appreciation, that can go on for 5, 10 years, but then they'll have flat periods. People don't see the flat periods because they don't have a long enough memory to be able to see it. Quentin says that you've got to keep that in mind when you're looking at different types of investment property, not just cash flow. He suggests him to do his own research first. With regards to accessing funds, he recommends financing at this point. At the very least, a line of credit; home equity line of credit as a component of the mortgage, so that the mortgage payment amount doesn't change but you have access to the funds, as a secured line of credit. Then as you go along, you're going to look at the joint venture course. Quentin then suggests that he should go back to the meeting and listen to the meeting recordings because that is where we talk about what's happening right now, what areas and what strategies are working, where people are buying – those are the things that you really want to go in and listen to. Rather than the reports, he says that the videos would be more helpful. In conclusion Quentin says that EducationREI.ca is essentially an education platform for people who are investing in other places, it's more about the fundamentals of real estate investing, the Q&A calls, the meetings and the connections that you make. Topics Discussed · Introduction [00:00:00] · What Was His Experience Like and What Were His Returns While Investing in Real Estate India? [00:04:50]...
30 min 26 sec
In this episode, This new member has owned a business for 15 years and is looking for a career change. We go over the best way to get started in real estate investing and why you should start now and not wait for later! Have a listen!
15 min 4 sec
In this episode, we take the mystery out of real estate investing, as this new member is just beginning their journey. We cover some of the basics, Where to start the learning process, and the best place to start building their network. Have a listen!
21 min 13 sec
In this episode, This member understands the importance of continually investing in your own education and the great returns that can bring. Learning from his past, we find out how he managed to go from a negative cashflow of $3000 a month to a positive cashflow. Have a listen!
19 min 11 sec
In this episode, We cover leveraging the equity in your property to buy more investment properties. Have a listen!
22 min 13 sec
In this episode, This longtime member takes us through his Journey in real estate investing and some strategies that he has learned along the way. Have a listen!
37 min 48 sec
In this episode, we talk to a member who is upgrading to a larger personal residence. They need to move their properties from their personal name into a corporation in order to create qualification room. Have a listen!
24 min 1 sec
In this episode, We have a member who looking to quit her profession and move into real estate investing fulltime. We explore flipping and discuss other strategies as she wants to get started. Have a listen!
22 min 17 sec
In this episode, This member is not sure if he should start with putting his properties under his personal name or under a corporation. We explore the pros and cons of each option. Have a listen!
20 min 20 sec
In this episode, Quentin talks with a member who is looking to get into his first property. We explore some strategies and some locations that might fit his budget. The member shares that he has been a member of DurhamREI Facebook group for the last two years. He became a mortgage broker in 2019. As for his real estate career, he is looking to do private lending. Following COVID, he was forced to work in retail full time, but he aims to pursue both real estate investing and his mortgage brokering career. He shares his experience of losing insurance and having to refinance his house twice when he owned a restaurant. He wants to build his net worth and get more into the real estate investing side and be the managing partner of joint ventures. Quentin adds that if he has the funds available, and wants to partner with somebody, he should focus on partnering with a flipper. He adds “you always have to see how you can add value to like what somebody is doing, in order to make it more valuable than just what it is that you have.” Furthermore, he says that if he can’t qualify in Durham, he might want to look a little bit further out from Durham for properties. Quentin says that high cash flow requires a bit more work, and he suggests hiring a property manager. He recommends looking at Peterborough student rentals, or even Peterborough rentals, as they produce better numbers. Apart from Peterborough, areas like Kingston, Bellville and Cobourg also have the potential to produce good cash flow. He adds “If you can get a duplex, have two rents and hire a property manager and still cashflow four or 500 bucks, that's what you're looking at.” He further says that once you get one or two under your belt, then it's easier for you to go to the next person and say, look, this is what I'm doing. Do you want to do it together? And then we can, you know, we can do a partnership. As an investor, the focus should be on putting in quality property management. Quentin also says that knowing the fundamentals of what makes an area a good area is crucial, because and cheap doesn't always mean good. In conclusion, he suggests going through the First Three Rental Properties and Joint Venture Partnerships courses, and then start talking about what he is learning as he goes along. He adds that “you need to find and talk to the people who have been successful, and then you listen to those people because they'll help you to get to where you want to go.” Topics Discussed • Introduction [00:00] • His Background and Experience in Real Estate Investing [01:25] • What are His Future Goals in Real Estate Investing? [04:40] Resources Mentioned https://educationrei.ca/ldcourses/your-first-three-properties/ (First Three Rental Properties Course ) https://educationrei.ca/ldcourses/raising-money-for-real-estate-system-joint-ventures/ (Raising Money for Real Estate System: Joint Ventures ) Important Links · hhttps://EducationREI.ca (ttps://EducationREI.ca) · https://GetRealWealthy.com (https://GetRealWealthy.com) · https://DurhamREI.ca (https://DurhamREI.ca)
20 min 13 sec
Episode Summary In this episode, Quentin talks with a couple who are just getting started in real estate investing. We explore the difference between getting a fixed or variable rate mortgage, and why variable rate might be a better option. The couple shares that while both of them have corporate jobs, they are looking at real estate investing as a way to achieve some level of financial freedom. They purchased the property in Burlington four years ago. Quentin shares that he started real estate investing in a similar manner, and while it was a big step, it worked out well for him, adding “because I had rental properties that were paying every month, and it allowed me to do other things give us flexibility.” He recommends going through the “Your First Three Properties in Real Estate” course, to get a better idea of fundamentals of choosing an area with where to invest in. He adds that if they've owned the property in Burlington for four years, they probably have some equity built up in the property. A lot of people who start off investing in real estate, and how Quentin and his wife and started as well, is by using the equity in their property to get started. Talking about the available credit Quentin suggests that they should go back and see if the lender will allow them to free up more of their home equity line of credit, so to reassess the property in order to access it, that will give them more funds to work with. Quentin continues by saying that the numbers have to work, adding “so, if you're buying a single-family home, it's not going to work because you're the mortgage, your property taxes, your insurance, like the rent that you collect is not going to be not going to pay for that. So oftentimes, you'll have to look at different areas that make more sense for you in order to purchase them so that the rent is higher than the property taxes, insurance and mortgage payment.” Talking about the investing in smaller markets he adds that oftentimes, they'll go up, and then they'll go flat for a while, as well as other challenges. They can also buy single family homes, which are easier to manage so they can offset each other. He also adds that they will have to be a little bit more creative to access funds, such as unsecured lines of credit. Those lines of credit can be used for renovations, where you can refinance, and then pay back the high lines of credit, and then hopefully pay back some of the lower line of credit to like their HELOC. On the subject of fixed and variable mortgage, Quentin suggests that they should try to see if they will flip it to a variable rate mortgage. This will give them more flexibility and will allow them to able to access more funds on from the home equity line of credit when they do the refinance. He adds “educate yourself on what is a good real estate investment, and how to work with those three team members, and when you do that, it'll make it a lot easier for you when you're talking to them about picking the right property.” In conclusion, Quentin says that investing in real estate can really change your life, and he encourages them to continue down this path, as it's well worth it. It can be life changing because it can create a stream of income each month, and then there are big chunks of net worth increases, because of the properties that owned. He adds that real estate is not about houses, it's about relationships, you create a good relationship with other people, then they're willing to help you and what goes around, comes around. Topics Discussed Introduction [00:00] Their Background and Experience in Real Estate Investing? [01:08] How Much Equity Do They Have in Their Property and Do They Have Any Funds Set Aside for Investing? [05:24] What is the Current Value of Their Property? [06:30] Have They Thought About Investing in Any Particular Area? [10:03] Do They Have Any Unsecured Lines of Credit? [11:50] Why They Should Switch from Variable Rate...
26 min 38 sec
Episode Summary In this episode, Quentin talks with a member, who is thinking about getting into rentals. We explore what his long-term goals are, and what might be the best strategy to start with. The member shares that he has been involved in private mortgage investing, as a source of passive income. Now, he and his wife are interested in changing careers by leaving the corporate world and starting their own business in real estate investing. They are also working on their first rent-to-own deal. Currently, they are in the process of getting pre-approved with a mortgage broker. Quentin comments that the strategy that they're using is great for cash flow, but he likes rent-to-own as an exit strategy, and not a long term option, adding “what I found was that every time that I bought properties, like the value of the property was always much higher than when I was selling it to the tenant buyer on and I had a locked in purchase price.” He adds that while this strategy is going to produce a higher cash flow, the member has to understand the tax consequences of what he is doing as well. He says “if your goal is to leave the corporate world, you're going to need to generate cash flow. So rent-to-owns are good for cash flow generation, [but] you would need to focus on getting multiple” Quentin adds that he also needs to add other properties in there, such as long-term rentals. Talking about the effectiveness of the BRRR method, Quentin says that it really supercharges the value of the property, and then you can refinance that out in 18 months to 24 months. He adds that when it comes to the BRRR strategy, the key is always purchasing a property where you can add value. It does require some expertise and work. So, you need to build a team of people around you to help like a good realtor, mortgage broker, and contractor on your team. As for the areas, Quentin suggests looking in places like Bowmanville, Peterborough, or even Kingston, where the numbers still work, and they make more sense for the strategy. He adds that the member would have to find something that that needs a lot of work. Furthermore, he says that the member needs to maximize the amount of funds that he is able to access, and pull that together. He further adds “once you start the process and you get a couple properties under your belt, then you can actually talk to other people about what you're doing, and perhaps they can invest with you together and do, like a project together.” On the subject of going with the inexpensive lending option, Quentin adds that it's not about price, it's about access to credit, and dollar bills and credit are the same thing in the current economy. If you have credit, you have dollar bills. He suggests not focusing on how much it costs, fees, and all of that and create relationships with the other banks to check if he can open some lines of credit with them, just so that he could have access to it, and have more flexibility. Quentin recommends attending the Q&A sessions, as well as going through the Property Management, Joint Venture Partners, and Finding Off Market Properties courses. In conclusion, he says “Use that Action Taker Program, look at the takeout, The Planning Guide, look at the weekly plan, and just put one thing for finding properties. One thing for funding properties, one thing for financing properties in the Planning Guide, and one thing a week.” Topics Discussed Introduction [00:00] His Background and Experience in Real Estate Investing? [00:59] Have They Owned Residential Rental Properties Before? [02:25] The Areas He Wants to Invest in Using the BRRR Strategy? [08:03] What Can the Member do to Learn More About Real Estate Investing? [14:59] Resources Mentioned https://educationrei.ca/ldcourses/action-taker-goal-attainment/ (Action Taker Program Goal Attainment Program) https://educationrei.ca/ldcourses/property-management-key-policies-and-procedures-for-durham-rei-members/ (Property...
20 min 26 sec
Episode Summary In this episode, Quentin talks with a member, who is looking to pull equity out of his properties to reinvest, we explore how investing in larger multifamily properties might be the best strategy for achieving his goal of building wealth. The member shares that he currently owns five properties in Oshawa, three singles, and two duplexes. His future goals are to set up lines of credits on all of his properties to give him access to around $1.5 million in equity. He says that as it hard to find cash flow in Oshawa now, he is looking at smaller, less competitive markets. He adds that he is looking for guidance and coaching mentorship, or someone to point him in the direction about whether he would be better off continuing to buy bungalows and legalized basement apartments or if he should try to get into multifamily. Quentin suggests that as his goal is to create additional net worth, the member should go for multifamily properties, as the numbers work well, especially if you purchase it correctly. The one-to-four-unit properties are more towards generating cash flow and appreciation, but if you're looking for wealth, apartment buildings will do it for you. He adds that “you can invest yourself; you can invest with somebody else, you can do what you know, different approaches.” Furthermore, the best thing about them is that you can refinance them. They also don’t have the same roadblocks as one-to-four-unit properties. He further recommends going through the presentations by Pierre-Paul Turgeon on the subject. Quentin adds that the member would need to find a realtor that actually does multifamily buildings. They require 30% down or 35% down depending on the purchase prices, and working in the six-to-12-unit range, it's pretty competitive. He can start by approaching people who have six to 12 units and see if they're interested in selling those. He can connect with realtors and find out whether they have anything available. He needs to look at who is listing properties in the area, and then contact them. Quentin adds that he needs to make sure that he is getting a yield on his money, like if his interest rate is 2% and the cap rate is 4%, at least he has a spread there. Talking about the competitiveness in the six-to-12-unit properties, Quentin says that “you have to have your cash ready; you have to have your ability to close and you have to understand all the pieces. So, getting your team together is going to be really important.” Additionally, he would have to get commercial mortgage, a holding company, insurance, all ready to go. That way, when he puts an offer in, he has the cash, he has the financing, he knows how they'll evaluate the deal, and he can move ahead with it. Furthermore, Quentin suggests looking at an exercise called The Return of Equity Calculation, adding “it's a good way of evaluating a property's seeing and comparing your different assets based on your returns, it may give you a different insight. And then you could run the same calculation based on what you would buy an apartment building for and see what your return would be.” He suggests that selling an asset and putting those funds into other assets that are easily re-financeable is a better option often and staying residential, as long as you're willing to grow. He also recommends checking the discount on setting up a holding company in the discount section on the website as well as going through the roadmaps on The Multifamily Phase. He adds that for the most part, most holding companies are the same, as there's not much different to them. But if you have high income, you may want to talk to your accountant just to make sure how they suggest you set it up. While having a paralegal set it up is a more economic option, if you haven't done it before, it is better to work with the professionals. In response to whether the member should disregard the idea of triplexes, Quentin says that if the numbers...
21 min 21 sec
Episode Summary In this episode, Quentin talks with a member who has been investing close to home in single family properties. We explore different ways to convert his portfolio to multifamily properties with a positive cash flow. The member shares that he started real estate investing in 2016, when he got occupancy of a pre-construction condo that he had bought in 2011. Unfortunately for him, his property is cashflow negative. The reason was mainly because he acquired the property with 10% down, so he had to go with the unconventional mortgage and get CMHC insurance which was only 25 years amortization. Now, they have 20 years left of the of the amortization. He adds that he has a full-time job as a construction project manager, and he had obtained his real estate license in 2017 mainly because that property was cashflow negative and he needed to supplement his income and that worked out fine. Two years later and after the mortgage rate changed, the negative cash flow went from $200 to $800. He adds that he made the mistake of going with the fixed interest rate. In the meantime, he sold a condo in downtown Toronto, took the money and purchase a detached home in Etobicoke. Right before the pandemic he was thinking about refinancing his home, and managed to get a high appraisal. $250,000 in line of credit, he ended up purchasing a condo townhouse in Mississauga, and it came with a tenant who was paying market rent. After that, his net on his investment properties became positive by $50. Quinton notes that what he has essentially done is that he has created an income stream from his second mortgage, with his mortgage money in order to cover off the negative cash flow on the two assets. The member adds that before joining the course, he wanted to stay in the bigger cities and his decision to invest in the property in Mississauga was short term. He was looking to flip it, take the money and purchase a detached home. Quinton notes that his yield is negative on the York Region property and his yield is negative on the condo townhouse by itself, but together by using the lending, he is able to come up positive on both of them. Talking about his next course of action, Quentin suggests that he should take a look at his property and do a return on equity calculation on both properties. Then, do the same thing on another property that is like a duplex that are cashflow positive while putting 20% down. So that could be looking in a little bit out further than the markets that he has been considering. He adds that the member needs to do his own due diligence to see what makes sense for him. He also suggests looking at historical data and talking to the realtors in the area, adding “you can find appreciation and cash flow in lots of different markets, you just have to work harder, right, and you have to get out of your comfort zone from where you're, you're comfortable right now.” Quinton also says that most of the time a single-family home is not going to cash flow anymore in Ontario, it's very challenging. He should not get stuck by being a Toronto person, because there there's money to be made everywhere, further adding “you want to get the most yield that you can, so you can get a return on equity.” On the subject of the member looking to use the Section 85 Rollover, Quentin says that “you won't be able to do that unless you find a lender that's willing to put the corporation on title, what you might consider doing is figuring out whether you can do it the day before you, like sell the property, like, but then you'll have to come up with cash or some other private loan in order to close on it maybe like a bridge loan for a day or two.” additionally he will have to pay land transfer tax, legal and accounting costs. So it adds up in Toronto, because you got the Ontario tax, and you get the Toronto land transfer tax. The member concludes that he may choose the option of instead of putting up the condo or townhouse for sake,...
27 min 54 sec
Episode Summary In this episode, Quentin talks with a member, who started with house hacking his first property and he was looking to expand his portfolio. With the current housing market, we explore possibly going with a triplex or a fourplex instead of a single-family home or duplex. As a fairly new immigrant to Canada, the member bought their principal home in December 2019. They moved to Oshawa in February 2020. They started with house hacking and rented their basement out. Now, they are looking for a rental property wherein they could start their journey. As for the financing for their next property, he plans on using some savings and a gift as down payment. He also has a few lines of credits as well. He adds that working with the bank that he has mortgage with, he wanted to get advantage of appreciation on his current house, remove the CMHC and be able to buy another one at 5%. Quentin adds that it is possible that he could use one of those other avenues in order to get a lower down payment, but there are typically for principal residences, and a grey area. The member shares that while he is interested in Oshawa, it's either he could wait for some time and save more, or with whatever he has, he goes to a market where he can afford something and at least break, even if not positive cash flow. He adds that he has the affordability, and down payment is his only problem. Quentin adds that he may end up with negative cash flow unless he has a really strong cash flowing property. Quentin suggests that he may want to look at Peterborough market, and something that is a little bit out of his comfort zone but may give more cash flow. That could be a different type of property like a student rental or maybe a triplex or fourplex. He could still get that type of financing that he is interested in, because it's still under the residential umbrella. It gives him the ability to have more units, so the one to four units still, even if divided as a duplex, he’d still have that that same kind of qualification room. He recommends checking out courses on Property Management, and Your First Three Properties in Real Estate to get a better idea of the fundamentals. He further says that while Peterborough is a good option, as he goes further away, he will have to build property management costs into that as well. He also recommends getting on some wholesaler lists as well, just to see what's coming up on them, and to get a different sense of what's coming in and going out. Quentin says that if he can use the lower down payment in order to get into a property, he should take advantage of it. It is a good way to add some leverage, just make sure that the numbers all work out, and that he is still able to financially maintain that. He adds that those rental properties are going to be assets that give wealth and income. The principal residence will give wealth because it will increase in value, and it can be leveraged differently. He recommends working with a mortgage broker that looks at more than just the next transaction, but helps plan out the next four or five transactions. In conclusion, he says that ultimately, the investment depends on his life situation. He adds that your personal residence is an emotional decision. It's not often an investment decision. Topics Discussed Introduction [00:00] Does He Have Funds for a Rental Property, and Has He Talked to Anyone About Financing? [02:26] Has He Decided on an Area That He is Going to be Investing in? [04:47] What Type of Property is He Looking to Invest In? [06:03] How Does He Feel About a Triplex or a Fourplex? [09:10] Resources Mentioned https://educationrei.ca/ldcourses/property-management-key-policies-and-procedures-for-durham-rei-members/ (Property Management Course – Vault) https://educationrei.ca/ldcourses/your-first-three-properties/ (Your First Three Properties in Real Estate – Vault) Important Links https://educationrei.ca...
17 min 3 sec
Episode Summary In this episode, Quentin talks with Don Lewis and Rick Lewis, two brothers who started in the renovation field and made their way into real estate investing. They take us through some of their investing experience, and share some of their wins, losses, and some useful tips for new investors. The Lewis Brothers have been in the real estate business for four years. They have a construction background, with15 years of experience in custom renovations. They fumbled into real estate investing by buying their first house privately and realized that buying and flipping houses was a lot easier. While they buy houses in different areas, they are primarily based in the Durham region. Talking about marketing, they say that their marketing is always growing. They started with flyers and bandit signs. As for the philosophy behind their marketing, they say that usually they are looking for somebody who is in a situation where it's a little different than getting your house ready to sell on the market. Such as when there's a financial issue, distressed property, or something that just won't close with the bank. At the same time, they also tried to figure out how they can help the owners in the process as well, going as far as putting money up front to help them. Doing so has helped them develop relationships with the sellers, adding “a lot of it really is just the relationship you've built with the seller in order to know what, how you can help them, and we've got a lot of people come back and give us very good reviews.” They want to build long term relationships and figure out how they can help sellers get out of scenario that they're in at that time. Talking about what has helped them succeed in finding off market deals, there that a lot of it has to do with the marketing, and just being in front of people with their flyers and bandit signs. Quentin notes that being quick, being able to close with cash if needed, not caring about the condition of the property because of their construction background, has helped them succeed in finding such great deals. Talking about a property that got away, the Lewis brothers share that they noticed a lot of red flags from the financial perspective and the additional costs added at the end, so they decided to not go ahead with the deal. They add that “we have set up ourselves, our financing because we guarantee a close on every deal no matter what, whether we wholesale it, JV, if our partner, whoever purchased from us can't do it, we close on it, no matter what. So, we're set up to be able to close… within 24 hours if we need to.” Talking about the mindset you need to succeed in this business, they add that you have to rifle through a lot in order to actually get that one deal. It's probably 20 to 25 phone calls or leads, before you get down to three people that are interested in talking to you, and then of those three, you might get two offers out and then one accepted. So you have to build a tough skin and not get too emotionally involved in each project. As for their advice for new investors who are looking to get started in finding off market properties, they add that you should know your market and don't go too broad. Specify what you're looking for and where you're looking for it, because the second you get that call, the jump on it, as the action has to be fast. Study and learn your market as much as you can and specialize in a certain area when you start, instead going too broad. You should also have a good realtor too, one that understands the market, and that is up to date with, then work with other investors as well. In conclusion, they say that you have to let sellers know they have options, there's not only one option that they have to sell with a realtor. Let them discover what options they have in order to sell their home. A lot of times the houses that you are offering off market, are going to come back on market and you're going to get the...
20 min 17 sec
Episode Summary In this episode, Quentin talks with Paul Punnoose, a former teacher takes us through some lessons that he learned along his journey into wholesaling to share some of his offline and online marketing strategies for finding off market deals. Paul worked as a teacher 13 years, and he has been a full-time real estate investor for the past year. He has done a variety of strategies, from buy and holds, flipping, to now wholesaling. Talking about his strategies to get off market deals, Paul uses online marketing such as Google Pay Per Click ads, Facebook advertisements, and Kijiji ads. He says that each strategy has produced different types of results, and has different pros and cons. Furthermore, the cost for online lead generation is much higher than his cost per lead offline. Paul uses the inbound marketing, where people will call him, as he wants people to contact him versus him contacting people. He adds that “I know that when I pick up the phone, that person is interested in selling their property.” Talking about his lead versus offers versus actual sales statistics, he says that sometimes those numbers are difficult to track, but he keeps an eye on the key performance indicators. Paul adds that generally people like to hear cost per lead cost per deal metrics. He focuses more on his overall cost per deal. Paul says that he thinks about what his cost per deal is, and then work backwards. It also varies from quarter to quarter, ranging between $3000 to $6000. Quentin adds that people get surprised by the cost of marketing that goes into finding a deal. Talking about his unique ability, Paul describes it as the ability to connect with people, and he prefers partnering up with people that are really good at marketing and advertising. He further adds “my ability is to connect with the seller and figure out, you know, what they're looking for, and why they're looking for it, and help them solve whatever issue they're going through.” Listening, hearing what the sellers want, offering solutions to their problems, but also connecting with them has helped Paul secure off-market deals. Quentin adds that it's not always about getting the highest price. Sometimes, there are other things that people value. Paul says that when people have a lot of equity in their property, they don't mind giving some of that up for a convenience. Talking about the deals that got away, he says that newer investors should keep in mind that out of the deals that they put out, only 10 percent will find success. If you go in with that mentality, while it will still hurt, they will be able to handle the whole process a little bit better. He says that in such cases, the best thing to do is to learn from what happened, so you can make adjustments for the next deal. In this industry, you need to really listen to the seller, listen to their problems, provide solutions, but allow the seller to really think about which solution is important to them and take it from there. In conclusion, Quentin says that sometimes, even when you get to the point where you have a signed offer, doesn't necessarily mean until the deal has closed. Paul says that the deal is not closed until the profits hit your bank account. Topics Discussed Introduction [00:00] What Strategies Does He Use to Find Off Market Properties? [02:06] Why Does He Prefer Online Marketing Despite the Higher Costs? [03:48] Does He Track The ‘Lead Versus Offers Versus Actual Sales’ Statistics? [05:33] His Unique Ability to Find Off Market Deals [08:00] How His Ability to Connect with People Helped Him Secure a Deal [09:21] The Deals That Got Away and What He Could Have Done Differently [12:38] Deals that Didn't Close Even After Signing Contracts [16:36] How to Get in Touch with Paul Punnoose? [20:06] Resources Mentioned https://www.profitableproperty.ca/ (profitableproperty.ca) IG: Paul.punnoose Important Links https://educationrei.ca...
Episode Summary In this episode, Quentin talks with Aaron Moore, a multi award winning real estate investor who is best known for having one of the most established house-buying companies in Canada. Aaron takes us through what makes his real estate business successful. Aaron Moore runs a company that is best known for house buying and wholesaling since 2008. He has flipped a lot of houses himself and built up a portfolio of rental properties over the year. Quentin adds that in the real estate space, people come and go all the time, there are people that they go to a workshop or the go to weekend boot camp, they come back they post signs, and then they disappear. Talking about what contributed to his longevity in the business, Aaron says that it boils down to work ethic and daily habits. He is a good longevity person, and when he makes goals, he sticks to them and achieves them. On the subject of finding off market properties, Aaron says that he started offline, but since then, their methods have evolved. Being long term in this business, they've built a web presence, and now, online dominates their marketing. He adds that it acts like a credibility piece as well, and helps people find reviews from past sellers. There is always a trust component, as 95% of people are going to sell with a realtor or MLS. As a house buyer, people are going to be a little more skeptical, and we want to overcome that skepticism. He adds that a unique thing for their company is that they have a strong seller focus, and they take care of their sellers, and treat them well. This sets you apart from everybody else. That is why they offer the biggest deposits and have the shortest conditions, because they are seller focused. Talking about the properties that they usually buy, he says that 80% of them are fixer uppers, with occasional beautiful houses. As investors, they can add value in different venues to the fixer uppers with their skills and renovations. As for how to have a property assigned to you, Aaron says that you got to have that funding in place, and be confident like you got to put down a big deposit. He adds that when they buy, they put down a significant deposit. So, when they sell or wholesale a property, they are looking for a significant deposit that shows buyer’s seriousness and that they're not going to back out, and don't want to be closing late, as that can be a big deal. Talking about their ‘leads versus offers versus actual purchase’ statistics, Aaron shares that it's somewhere between 10 to 15, with slight ups and downs in numbers during different quarters. Quentin adds that sometimes, just because you have a deal under contract doesn't mean that you're going to close on the deal. Aaron says that the reason behind this can be a case of buyer's remorse, where they change their mind offer signing the contract. Sometimes, there are also some deposit issues. They have made changes to their paperwork about deposits to deal with such issues. He says that you want to make sure everyone's happy. You don't want to be buying from someone who just does not want to sell to you and wants to make it difficult. On the subject of the marketing costs, Quentin adds that new people to the space often mistake the amount of advertising and the amount of money that goes into this, because they only see the fee. They don't realize that the amount of other work that gets them to the point to have this opportunity. Aaron shares that advertising plays a crucial role in this business, and they have dedicated team for this job, with a six-figure budget to run the marketing campaigns. Topics Discussed Introduction [00:00] What Does He Attribute His Longevity in the Real Estate Business to? [02:47] How Has He Been Able to Find Off Market Deals? [03:48] Online Presence to Establish Trust as Homebuyers [04:55] What Sets Them Apart from Everyone Else? [05:44] Who are They Competing Against? [06:40] What Type of...
21 min 52 sec
Episode Summary In this episode, Quentin talks with a member who is new to investing and wants to use it as a vehicle to set up her family's financial future and her retirement. They explore some options she can take during her growth phase of investing. Talking about their background, the member shares that they are originally from Durham. They had been living in Toronto, in a single detached house. They decided to rent it, but the cash flow was not ideal compared to what they can get out here, for a lot less mortgage. In June, they bought duplex in Bowmanville, and rented the top floor, while they worked on the basement to rent it out as well. The renting arrangement for the upper floor came around to $1500 due to a family arrangement, and the basement for $1775 plus utilities. Quentin adds that working with family is fine, as long as they have a proper lease in place, as sometimes there can be a little tension, especially in such cases. The member adds that both of the leases are short-term. Quentin says that as they are helping a family member out, they're doing them a favor, and hopefully that'll come back to them. On the subject of why they want to invest in real estate, they member shares that while both she and her husband do well financially, and have pension, they want to do this for their three kids. They want to do something like they didn't get help themselves, but to help them, like with a down payment, and then it would be nice if they had another one to help themselves. She also shares that they do not have access to equity that they could repurpose into another property, and with the closing cost, the property cost them around $715k. Quentin adds that if they make it a legal duplex, then there should be value that's added to it, because if it's illegal duplex, they will be able to include both rents when you're applying for a mortgage. He mentions the related content on the subject in the vault, called The Phases of Real Estate Investing, Property Management, Key Policies and Procedures in the start area, as well as the course Your First Three Properties. Quentin adds that they can rely on other property management services in the area to help them out, and some of them will just do tenant placement for them. In addition to this, the five-hour course on Property Management is helpful in this regard as well. The Getting Higher Appraisals course can help them get better appraisals for their property, and set themself apart from everybody else, as most people will never do this. He adds that there are a lot of times when we get paid in this business, we get paid in cash flow, and when we sell a property, but we try not to do that very often. What's better than selling a property is the appraisal; that's when we get paid. Talking about another way to mixing the funds from one that's deductible to nondeductible, is The Smith Maneuver. It's a strategy that allows you to turn your nondeductible debt, which is the interest on your mortgage to make it tax deductible. He suggests that if they take from the refi, put it on their principal, and then access it again, they're basically converting their nondeductible debt to deductible debt. Then the next year, if they did it, bought a property and the same process, they're basically converting their principal residence into deductible debt. Once they've done the whole process, and it's all line of credit, then they go back and get a new mortgage, it's clean, because all of it has been deducted. Then the interest would be all tax deductible; the principal wouldn't, but the interest would. In conclusion, Quentin suggests attending the Q&A calls, as they're great for networking to meet other people in the area who are investing. The other thing is to make sure to take advantage of the video materials. There's a lot of resources that are on there. If they want to do something specific, they can go through the roadmaps, as they are...
25 min 48 sec
Episode Summary In this episode, Quentin talks with a member who is looking to leverage their primary residence in order to enter the real estate investing market. When looking for financing, we explore why you should approach it as building a portfolio and not just one property. Talking about their background in real estate, the member shares that they own their house free and clear, and over the last year or two, he has been looking to leverage that. From a financial standpoint, they have been approved for a HELOC, and the funds have been there, up to $360,000 on this current house, as well as a mortgage of up to $700,000. Now, he’s looking to get into the investment property realm, and from the research that he has been doing, he has settled on the Peterborough area. His plan is to do the long-term strategy, and at least get one property and then see if it's for him, if he enjoys it, and if it makes sense. Quentin starts off by saying that there's lots of ways to do, but you got to decide for yourself, and based on the HELOC that they already have, they may be able to get up to five properties based on their income and what they are doing, rather than just one. He adds “the thing you want to think about is how can I plan out more, if I wanted to have more and not get stuck.” Additionally, how you want to do financing is, you want to look at how can I get to wherever my goal is, you don't want to be put in a product that gets you stuck, so that you can't move forward for two years or three years. He suggests that you should also be talking to a couple other people, just to see what they have to say, and what that looks like to you. Your First Three Properties in Real Estate a good course to learn fundamentals, to help him decide in this area. On the subject of strategies, Quentin says that the key that you want to ensure is that you're cashflow positive on your own. Don't worry about what the market is going to do. Think about buying a property that cash flows, that you can hold for a long period of time, that's going to be easy for you to manage as an asset or hire a property manager in the area to manage it for you. What you want to do is make sure that the cash flow covers the cost of a property manager maintenance repairs, that you can see all that's considered, and that's what you look at your property analyzer for. if you have a longer-term point of view, you can often ignore a lot of the gyrations of the market. As for their house, they have a lot of equity, and Quentin says that it’s great that they have access to utilize the equity, he continues “the best possible way, don't think about the next property, think about how I can build a portfolio.” what you would look at is positioning yourself so that you could add some value. Once you do that, you refinance that rental property, use the money that you get from the refinance to pay back your initial investment, make sure that you can float the line of credit using the cash flow from the rental property included in your number. One of the things that people don't often tell us you can get a new mortgage on your rental property with a HELOC, and what the member is trying to do is something called the Smith Maneuver. Quentin adds that the next piece for them would be, it depends on what they want to do, whether they manage it themselves or not, watch the five-hour course on property management, key policies and procedures. Furthermore, they also have a whole course around COVID and rental properties. In conclusion, Quentin mentions the Q&A calls, where members can ask their questions. As for his concerns about finding tenants, Quentin shares that due to rent control in Ontario, the byproduct of that is a lack of supply everywhere, there is a lack of supply across. This means that finding tenants should not be a problem. Topics Discussed · Introduction[00:00:00]...
24 min 55 sec
Episode SummaryIn this episode, Quentin talks with member, who is a new immigrant to Canada and new to investing. His future goals are to invest in multifamily residential complexes, and help new immigrants with getting started in real estate investing. Talking about his background, he shares that he is fairly new to Canada, and got interested in real estate after reading Rich Dad, Poor Dad, and getting connected with a few people in the Kitchener area. He has one property, where they renovated the basement or rented it out. Now, his goal is to focus on multifamily triplexes, fourplexes, and wants to focus on buying homes, joint venture agreements, and raising money through people. He says that he would like to concentrate on buying and holding, and slowly expand over time. He wants to purchase his second property in the next six months, and wants Quentin to guide him through the process. Talking about financing, he says that he does not have money, and has $30,000 in student debt as well. Their previous property was a joint venture agreement. Now, they can get 80 percent of the equity on that property. Furthermore, he just started his new job, and his wife is about to leave hers, to work part-time. Quentin adds that they need to get onto their financing right away because they're need to get a letter from his wife’s current employer stating that she has been working there for two years so that they can use that for financing purposes. They may have trouble if his wife leaves her position, and him only starting a position to be able to qualify for another mortgage going forward. Quentin suggests reaching out to a couple of brokers, and bank lender just to get an idea of their options. The member adds that he is looking to learn about how to raise finance, connect with people, have those conversations, and find the properties that they will be interested in. Quentin suggests that he should use a property analyzer to come up with the numbers, to be able to share with people so they understand and know what he is talking about. He adds that he really wants to come across as the expert, and to do that, he needs to invest some time like he did in his masters, in order to invest in his own education on this. Quentin says that if he is looking at finding off market properties and also raising money, there are two main courses. One is called Raising Money for Real Estate System Joint Ventures, and the other one is Off Market Discounted Property System. Quentin continues “My thing is, do something with it, please. Like I'm providing it to you so that you can do something with it.” He suggests the member to go to the Q&A calls, that are done twice a month, hang out with other people, network with other people locally who are investing in your area, there's no better way in time to do this because we're so interconnected. If he has questions, he can bring them up at the call. In conclusion, the member shares his long-term vision to help other immigrants putting their real estate plans in place. He has a show on CBC radio, focused on immigrants and they're looking to expand it over time. He wants to use it to build that platform, build himself, his brand, learn real estates, but also share it with a lot of immigrants. Quentin concludes it by saying that this is one of the great benefits of Canada. We do have a lot of opportunity here and we can do quite a bit. Topics Discussed Introduction [00:00:00] What Kind of Multifamily Complexes Does He Want? [00:02:44] What is the Status of His Financing? [00:03:08] Is He Looking to Raise Funds or is He Going to Purchase the Triplex Himself? [00:04:31] How Long Has His Wife Been Working at Her Job? [00:06:20] Who's on Mortgage on Their Property? [00:07:08] Does He Have a Broker that He is Working with? [00:09:20] Which Property Analyzer Did He Use to Show Returns to his Ex-Boss? [00:10:10] Important Links and Resources educationREI.ca...
20 min 27 sec
Episode Summary In this episode, Quentin talks with a couple who has a single-family rental that they would like to increase its cash flow, and they are also coming up with a mortgage renewal. We cove why moving to a variable rate mortgage will give them more options for further investing and what situations work best for putting properties under a corporation. They purchased an investment property, a freehold townhouse five years ago in Alliston. They want to expand their portfolio, as they want to leave a property each for their sons, and help them in their retirement. After doing research into real estate investing, they have been excited about the possibilities that it can offer. For their next property, they are looking to buy a duplex or a triplex. They have reached out to some of Quentin’s students in the Durham Region, to join them and see and learn how the whole process works. While there Alliston property turned out great, it has a cash flow problem. Currently, their mortgage payment is $1297 a month after property taxes, while the total mortgage amount is $227k. Their property is currently valued around $600,000. As for the current rent of the property, they are charging $1610, but if they were to re rent it, they could get over $2000. Their mortgage is coming due December. They went with a fixed rate, and they have the option to refinance early. While doing research about their next purchase, it has only led to further confusion about whether or not they should leave this property in their personal names, and then going forward, open up a new company. Quentin suggests going through the ‘When to Use a Corporation and When Not To Use A Corporation’ course in the world to get an idea of both. Having a corporation is a good idea if they are looking to build a portfolio of three, four or more properties. The upside of having corporate is that it doesn't appear on their personal name, but that's only a benefit if they're going to multiple lenders. He adds that if they're not sure, the thing is they can always come back and do Section 85 later. He says that one of the reasons why they might want to speed up the process is that if the Liberal government gets reelected and they change capital gains tax. Quentin suggests that for the amount of funds that they have access to with that CIVC or Scotia Bank mortgage, they should make sure that whatever they give them, they should maximize the loan that they have access to through the line of credit component to it. He adds that when they're doing 100% financing, it's tougher to make the numbers work but it's good to be able to access funds because then it will allow them to invest in other projects. He suggests that never go fixed rate again. He further says that they will never be able to catch up or take advantage of changes in interest rates, but they can always lock in. If they feel uncomfortable about anything, but lock in for a year. As an investor, access to capital is even more important because it can prevent or allow them to access more deals, and if they have a variable rate mortgage, they can always exit a variable rate mortgage by paying three months interest penalty and then access funds. The members share their plans to sell their primary residence in the next year, so Quentin suggests going through the Getting Higher Appraisals: The Basics. He adds that a lot of people don't understand this but as a real estate investor, that's when you get paid on appraisals, because when you do an appraisal, you get access to funds either through a line of credit or remortgaging the property. He also recommends going through the content on Property Analyzer, as it helps learn about what to look for. Talking about another way to get an idea about the rent is just going to Kijiji and or Facebook marketplace and look for ads in their area and see what the rents are, because that way they get a better sense of what something is...
36 min 48 sec
Episode Summary In this episode, Quentin talks with a member who is starting his real estate career with a house hacking strategy. He changed his career and moved into construction, and got his real estate license as a way of investing in real estate. We found that he is running the risk of doing too much himself, and might want to look at outsourcing in order to grow faster. In terms of real estate investing, the member has rented out the basement of his property. He wants to eventually buy another house, rent out the upstairs, get another house with a basement apartment again, and build his way up that way. He left his job as an accountant five years ago, and took on construction and carpentry, with the end goal of getting into real estate. He has also earned his realtor license as well. Talking about what he wants to achieve by participating in the membership, he says that it will help him in gaining subject knowledge, networking, a work life balance and building some wealth for his kids as he wants it to be his career. Quentin adds that while the member likes to be hands-on with all aspects himself, he does not need to do any of that to be a real estate investor. He needs to figure out how to build a team around him to do the things that he doesn't like to do, while figuring out what he likes doing in the business and then focusing on that. Quentin suggests starting with Your First Three Properties in Real Estate course, as most Realtors don't have the background in the investment side, where you really need to be, if you're going to go down this path. He also suggests using the Property Analyzer Tool, that helps you to analyze a property to see whether the numbers work or not. As the member likes to be hands-on with the renovations, there is also a video series on renovations. Quentin adds that he should take some time, go through the videos, and the actual case studies to get familiarized with the ins-and-outs of real estate investing. The member share that he wanted to learn how to do everything, so that he would have the knowledge. Quentin adds that in this business there are so many different roles that you could do. The industry allows for different ways for people to earn income, but what happens is you become transactional, where you are selling your time for dollars. That is not something you would want to do, so you have to build the asset base, and to do that it requires you to focus on adding assets into your portfolio. Quentin suggests attending the meetings, the Q&A calls, and networking events, and talking to other people to find out what they're doing, where they're buying and what makes sense. He also suggests using the Action Taker Goal Attainment Program. It helps you to outline what your 10-year goals are, what your three-year goals are, and then helps you to outline quarterly goals for yourself. He adds “if you write down in some way what you want, and you look at it, they are more likely to achieve it, than if you were to, you know, have an idea in your head.” On the subject of investing in areas a little further away, Quentin says that you have to be careful when you're thinking about something like that. There is a criterion to stick to and he can identify that after going through the First Three Rental Properties Course. It highlights the fundamentals that you want to look at, and factors to take into consideration before making a decision. Once he has decided, he can join the Q&A calls, networking events, and find somebody else who has invested in that area. That way he can get a better idea. He concludes by saying that the challenge isn't usually the area, it's finding the right assets. Topics Discussed Introduction [00:00] What Does He Want to Achieve by Participating in the Membership? [02:53] Where Areas Should He Invest in? [15:00] Resources Mentioned https://educationrei.ca/ldcourses/your-first-three-properties/ (First Three...
18 min 27 sec
Episode Summary In this episode, Quentin talks with Jeff, a member who was a contractor. He joined DurhamREI to find new clients and to learn what real estate investing is all about. He was hesitant to start investing until he met some joint venture partners through networking. Now he's already on his second property. He shares his journey and what his experience has been since joining DurhamREI. Jeff is a contractor by trade, who owns his own business, and he closed his first property, a rental in Peterborough, Ontario in January, a JV partnership. He says that he partnered up with someone he met through DurhamREI, which has been a great experience for him. It has allowed him to network, find likeminded people and make connections. He adds that he was nervous, being a first-time investor, and this person helped him feel more confident. He shared his knowledge with Jeff, and they did a deal together in Peterborough to get him started. Now, they are closing their second property which will be a flip in Peterborough. Talking about the first property, Jeff shares that it was an undervalued duplex, and the owner was having problems with the tenants. They were paying under market rent to start. After meeting the tenants, they realized that the tenants weren't the problem, and they seem to be taking care of the property extremely well. They got it at a time when the market had just started to hit that point where everybody was out-bidding each other. They were able to get it $20,000 undervalue, so we got it for $380,000 instead of the $400,000. He adds that the property is cash flowing barely but they are working out some solutions to get tenants in paying more rent. In the meantime, they have also gained appreciation, and he is really happy with the overall experience. Quentin adds that “the great thing is that you were able to come up to an event, you know, make some connections, also then build on those connections with actually going out and doing a deal together, and then figuring out what works, what doesn't work and then gaining some confidence in order to, to get your, your own deals.” Talking about his contracting business, Jeff shares that he started his own business after working with his father for 15 years. He adds that his original intention of joining DurhamREI was to promote his contracting business. Being there, he learned about real estate investing, and as a great added bonus, he made connections with some investors who were also looking for contractors and now 75% of his business is actually investors. Jeff further adds “when I joined, I was so unsure about joining a group of people, who obviously were at further stage in life investing, financially and it was really scary for me, but I did it anyway and I could not be happier.” He says that there was a lot of knowledge to learn, and he can't put a number on the value. He gained so much value from being a member there and thinks that it the best decision he has ever made. As for his advice for investors when working with a contractor, Jeff suggests that you should always get more than one quote, because prices can range drastically, depending on the contractor and how busy they are. Try to work with someone local, it can be a little cheaper and more convenient, but do your due diligence when checking out a contractor. He concludes by adding that check out the references and work of a contractor, and if you can, go to a site in person rather than seeing pictures do that. Try to build a relationship, as it's not all about money. So, good contractors are hard to find, and when you find one, stick with them if they're reasonable in prices. That's kind of someone you can keep in your team. Topics Discussed Introduction [00:00] Their Background and Experience in Real Estate Investing? [0:56] How His First Real Estate Investing Experience Went [2:55] His Contracting Business and How That Has Looked Over The years [5:42] His...
11 min 10 sec
Episode Summary In this episode, Quentin talks with a member who has a few investment properties spread out over long distances, we cover why it is important to focus on one area starting out and becoming an expert in that area. We also touch on a blend and extend for when you are feeling stuck in a fixed mortgage. The member, who is a nuclear engineer, started investing in real estate last year and now has three properties under his belt. He shares that his short-term goal is to get enough cash flow to cover the mortgage on his primary residence. In the long term, he wants to replace his active income of around $10,000 from his 9 to 5 job. Talking about the cash flow that he's getting from his properties, he says that they are rented under the market rate. Quentin suggests add one of the things he should consider is doing some ‘Cash for Keys’ and offering his tenants to leave, since there is a huge difference in market rent and the rent that he is getting. Quentin suggests going through the Property Management: Key Policies and Procedures course to get a better idea of how things should be done and why to take the time to do that. Furthermore, he should be careful if he is spreading his assets all over the place, adding “it's okay to invest in different areas. It's better to focus.” The Your First Three Properties in Real Estate course identifies the fundamentals that he should be looking for in any area that he invests in. Talking about the available equity, that member shares that he has not maximized the available equity on his principal residence about plans to do so. Quentin recommends that he can do a ‘blend and extend’ to avoid the penalty for switching from fixed rate mortgage. He further adds that the member should have a secured line of credit on his principal residence and if his income is over $10,000 a month he should also be applying for unsecured lines of credit as well, adding “even if you don't use it, it's always good to have and not need the need and not have.” Quentin adds that the member should go to TD, BMO, CIVC, National Bank, then apply for a line of credit on usually all four or five banks at the same time, as long as he is comfortable with the debt and the numbers make sense. He also recommends asking for more than what he wants from the banks. He continues “those unsecured lines of credit, you know, the interest is tax deductible, but you have to make sure that you can service the debt, with the properties okay that everything makes sense.” Topics Discussed Introduction [00:00] Their Background and Experience in Real Estate Investing? [1:10] What Are His Goals with Real Estate Investing? [02:51] What is the Current Cash Flow Based on His Portfolio? [03:57] When Did he Purchase the Townhouses? [05:15] How Much Equity and Access to Line of Credits Does He Have? [09:18] Resources Mentioned https://educationrei.ca/ldcourses/property-management-key-policies-and-procedures-for-durham-rei-members/ (Property Management: Key Policies and Procedures) https://educationrei.ca/ldcourses/your-first-three-properties/ (Your First Three Properties in Real Estate) https://educationrei.ca/ldcourses/raising-money-for-real-estate-system-joint-ventures/ (Raising Money for Real Estate Joint Ventures) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)
19 min 12 sec
Episode Summary In this episode, Quentin talks with a member who is wanting to move from renting out condos to multifamily properties. We touch on how to find those off market deals and screening methods for potential joint venture partners. The member shares that he had always wanted to get into real estate, as his father was a real estate investor. Ten years ago, he bought a two-bedroom condo, where he rented one of the rooms. His wife also had a condo and she brought that into the marriage. Together, they also purchased a rental cottage that they are putting on Airbnb. He says that his goal is to use real estate as a retirement vehicle. He wants to invest in multifamily units and wants to find a joint venture partner. He is also looking for opportunities to network and connect with people who are already in the business through the Education REI network. Quentin shares that there are always different parts to every deal, and you can always participate in different parts. When you're talking about multifamily, it is multifaceted. He adds that the member should be considering commercial multifamily properties like 12-to-20-unit range to get started and then move up to 20-to-40-unit range. He further adds that as there are different aspects of every deal, you have to be able to bring some parts to make it happen, such as bringing the actual property itself, bringing the funding to the deal, or helping out in the financing realm and net worth requirement. Another alternative that requires none of that is bringing money into the deal as a partner. Quentin suggests going through the Multifamily Properties area of the Road Map section, such as Overcoming the Challenges of Commercial Residential Investing, Pros and Cons of Multifamily Properties, How to Acquire and Develop Land, and Electricity and Water Sub Metering. He also suggests going through Raising Money for Real Estate System Joint Ventures, adding that whether it’s a big apartment building or a smaller multifamily unit property, the principles are very much the same. He says that if you want to do the lead generation piece, you should look at the Off Market and Discounted Properties Real Estate System. Furthermore, Quentin suggests attending both of the Q&A sessions, for the beginners and the experienced investors, as the networking section of the latter would be a great opportunity for the member. He also recommends going through the Action Taker Goal Attainment Program, making the plan, going out and then doing it. On the subject of vetting potential JV partners, Quentin adds that the member can ask them for referrals to people who have invested in one of their previous projects. He adds that building relationships should be a priority, and if there are any agreements, have them reviewed by a lawyer to make sure that everything is done correctly. He adds “You're kind of doing your due diligence on the person more than the deal itself, because there's lots of opportunities that come along, and then it's about finding the right one for you.” Talking about how he can find off market deals, Quentin suggests going through the Off Market and Discounted Properties Real Estate System course, as it covers the necessary systems and processes. He also recommends being prepared in all aspects before talking to the brokers. He adds that following through is also important because once you stop following through, people will stop wanting to do business with you. In conclusion, Quentin says that while the journey is not an easy one, especially in the beginning, it gets easier over the time. You can create what you want, but it just takes time to do it. Be the director, be the leader, take a group of people together and move them forward. The things that people call you, see you as an asset, when you introduce yourself, introduce yourself with those skills. Topics Discussed Introduction [00:00] His Background and Experience in Real Estate...
26 min 3 sec
Episode Summary In this episode, Quentin talks with a member who is going through his first BRRR property. He is looking for advice on the refinancing part of the strategy. He doesn't have comparables in his area, but we cover some tips to help him maximize his appraisal. The member shares that he is currently working on his first BRRR project in the Port Coburne area of Niagara region. His first investing endeavor is transforming a single-family home into a legal duplex. In addition, he has a condo in Calgary. Currently, he is trying to gauge what his next steps should be, while looking to prepare for refinancing his property. The member shares that his Calgary property has depreciated in value. Quentin adds that while the value of the real estate does not always go up, it is important that the property has a positive cash flow. On the subject of property appraisals, Quentin recommends going through a course on the appraisal procedure, available in vault section. As for the preparation steps, Quentin says that the first one is to locate any comparables in the region and create an appraisal package for the appraiser. There are also samples on the website that have helped other members receive higher appraisals. He adds “The key is always to, if you're expecting the appraisal to come in, let's say at $500,000. To prepare your package so that your appraisal looks like $550,000, and if you end up getting $525,000, then you know, it's a win win-win.” Quentin further adds that if the member does not get the desired appraisal, they have the option to either go for a second appraisal or take a shorter-term mortgage. He prefers variable rate mortgage as with a variable rate, you can always refinance a variable rate with three months interest penalty. On the subject of lack of comparables in the area, Quintin suggests picking a square footage of a house that's very similar to the square footage of his property. Another option is to look for comparables a little further down the road. Out of the three property appraisal methods—comparison, income, and replacement—according to Quentin, the ideal is the income method. In conclusion, he reiterates that the member must be present when the appraiser arrives. He needs to show a professional attitude and seriousness, as an appraisal is when you get paid. Topics Discussed Introduction [00:00] His Background and Experience in Real Estate Investing [00:50] Importance of Having Cash Flow on Assets [02:50] How To Prepare for Property Appraisal [03:54] Strategies to Get Desired Appraisal Value [05:25] What If There Are No Comparable in The Area? [08:19] Resources Mentioned https://educationrei.ca/ldcourses/getting-higher-appraisals-the-basics/ (Appraisal Process - Course) Important Links https://EducationREI.ca (https://EducationREI.ca) https://GetRealWealthy.com (https://GetRealWealthy.com) https://DurhamREI.ca (https://DurhamREI.ca)
14 min 26 sec
Episode Summary In this episode, Quentin talks with a member who discovered real estate investing through property management. Her goal is to grow the property management company by finding off market deals and managing those properties. We cover some sources where she can find deals and why finding the highest and best use for a property might be a better strategy The member shares that she worked as an analyst and started in real estate investing through property management. she bought her first property in Peterborough for $630,000, and now it is worth over $880,000. The cash flow so far after all expenses are paid is $1,500. Her goal is to grow their property management business, by finding off market deals and managing those properties themselves. Currently, they are trying to do flips in the area to generate that capital for these projects. Quentin adds that while her cash flow numbers are impressive, she should try to scale it. As for the financing, he says that you don't always have to be the person that has money or don't do the financing, adding “Oftentimes you bring people together who have different components or skills and also the Raising Money for Real Estate course is a good place to start.” He also recommends going through the “Off Market and Discounted Properties Course” as it will teach her everything, she needs to learn to find those properties. Quentin also suggests contacting people behind the ‘We Buy Houses’ signs and asking them to add her to their buyer's list. Talking about why wholesalers often have high assignment fees, Quentin says that it has mainly to do with the marketing costs. He adds that “you need to get on as many lists as you can so that if an opportunity comes up that you can take it or not take it, or you have to do the marketing yourself and pay for the market.” He further suggests that have a good relationship with realtors and show that you're going to actually close on the property. Sometimes they may have a pocket listing that they could perhaps share with you. Talking about the property values, he says that sometimes looking at what the potential highest and best use of the property is to add the value that you want. You have to find something and see something in the property that other people don't see, or you have to solve a problem that other people aren't willing to solve. if you can solve those problems, then you can buy something with some value to it. As long as you know what the cost is to solve that problem, you can take advantage of the value. Quentin adds that some people have a mental blockage, and it just depends on the person that has nothing to do and somebody who gives you a limit is because they're limited. He continues by adding that everybody's different and you have to find out and figure out what do you really want, what works best for you, and what the reason is that you're investing in real estate. If it's to replace your income, it's going to be different than somebody who perhaps is using it to like to retire from in 10 years. On the subject of whether $10,000 a month is a realistic goal, he says that it is doable. He suggests listening to people who you resonate with and who resonate with you and ignoring all the noise. If you find somebody who was already doing what you want to do, then you should be listening to them. He says that by adding a few more properties to her portfolio, she can achieve this goal in the next three years or even sooner. Furthermore, there'll be ancillary benefits that come from investing in real estate that allow you to scale your income in different ways. In conclusion, he says that “just be careful that you don't get too transactional because what happens if you get too transactional is that you're always depending on the next transaction to eat.” Topics Discussed Introduction [00:00] His Background and Experience in Real Estate Investing [00:53] What Does She Rent
29 min 24 sec
Episode Summary In this episode, Quentin talks with a member who immigrated to Canada 10 years ago and is looking to get back into real estate investing. He is working on a triplex in New Brunswick and also looking at properties in other provinces because of the cash flow potential, we cover how cash flow will help hold on to it, but it will not make you wealthy. The member shares that before immigrating to Canada 10 years ago, he bought an apartment in the UK. he rented the apartment, and it has been positively cash flowing. After a bad experience with private lending, he moved away from real estate. Now, he is considering taking the money he had against ETFs and stocks and putting it into real estate for better returns, and just had his offer accepted on a triplex in New Brunswick. He is looking to learn about the due diligence process and grow his network as well. Quentin suggests that the bi-monthly Q&A calls are a great place to learn, share and network with other investors in the area. The member shares that his motivation behind investing in the New Brunswick area was the better tenant rules, lower purchase price and higher cash flow, as he is looking to get out of his 9 to 5 sooner and build up that passive cash flow. Quentin adds that “cash flow is not going to make you rich. It will help you to hold on to an asset, but it will not make you rich. You need to make sure that you're also getting some appreciation.” He further suggests looking at other markets around Ontario that make sense and are in a good positive cash flow market such as Kingston, Peterborough and St. Catharines. Quentin also recommends going through the “Your First Three Properties in Real Estate” course, as it will help him find out which areas, he should invest in. He adds that there's always a reason why you have higher cap rates because usually there's a risk. Cap rate is based on the asset price, the asset location and the interest rate. He suggests comparing the debt against the asset versus the cap rate. He further advises “I want you to go back to the street that you purchased your triplex on, talk to a realtor in the area, get the last 10 years of appreciation on that asset on the property that you purchased…you will get an average appreciation rate over the last 10 years.” Quentin adds that cash flow will help you keep the asset. It will also help you to leave your 9 to 5 but appreciation will make you wealthy and you want to be able to have both. He also suggests talking with investors during the Q&A calls and discussing their cash flow numbers in the areas that they are investing in. On the subject of whether multifamily buildings are a sound investment, Quentin says that “the key is if you are going to scale just make sure that you include all your maintenance repair vacancy and property management into your calculations…” He also adds that if he bought two newly built fourplexes side by side and the titles merge, he might be able to get commercial financing on the property. As it's a new build, there are some benefits to that. Quentin suggests looking at getting two together and then getting commercial, like CMHC financing, which on the new build would be impressive. Topics Discussed Introduction [00:00] His Background and Experience in Real Estate Investing [01:00] Why Did He Decide to Invest in the New Brunswick Area? [03:48] Are Multifamily Buildings Are a Good Real Estate Investment? [13:04] Resources Mentioned Your First Three Properties Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)
16 min 37 sec
Episode Summary In this episode of Get Real Wealthy Season 2, Quentin shares eight things he would have done differently if were to build his portfolio again. Quentin says that he purchased his first property in 2004. In 2008, he bought multiple properties for a year. By 2013, the cash flow from the portfolio allowed him to decide whether to quit his job or not. He left his job as a public-school teacher in 2014. He adds “it was quite a stressful decision, but decided to leave my profession and focus on real estate investing, full time, which I have been doing since 2014.” Talking about the eight things he would do differently if he were to rebuild his portfolio, Quentin says. Topics Discussed • Eight Things He Would Have Done Differently Important Links • https://EducationREI.ca • https://GetRealWealthy.com • https://DurhamREI.ca
10 min 54 sec
Episode Summary In this episode of Get Real Wealthy Season 2, Quentin takes on the question; ‘would you rather have 100% of $5,000 a month in cash flow or 1% of $500,000 in rents.’ Quentin says that the reason why we're going through this is to give you a perspective of whether you invest directly in one to four-unit properties and build a portfolio over time or you decide to scale into a property and have an idea of what that cash flow would look like for you based on that portfolio. To understand this, really, you need to know about the debt coverage ratio, what cash flow is and agree on that. Then, look at the portfolio size, how that affects your cash flow and the returns that you get on a particular investment. The debt coverage ratio is a way for the bank to determine whether they are going to fund your property or not. If you calculate your mortgage, utility payments, property taxes, insurance, and some variable costs, put them all that together, that is the debt on the property. So, If you are getting an equivalent amount of monthly rent to debt, that means you would have a 1.0 debt coverage ratio, and 1.2 would mean that you are earning 20% per month on that particular asset. As for the one to four-unit property space, you are looking at proforma, which takes those same numbers that you use for a debt coverage ratio, but analyzes them from a cash flow perspective. Let's suppose you have a cash flow of $200 from a property, and your goal is to generate $5,000 a month, you would need 25 doors to accomplish that. On the other hand, if you had portfolio size change because you decided to scale up and get into larger multifamily units, it's easier to look at it from a debt coverage ratio perspective and get an idea of what your general rents are, you can come up with return you would be getting. So, if you had $500,000 in rent, and you had that coverage ratio of 1.2, that means 20% of that is $100,000, which you would keep at the end of the month. If you had 50% of that as a partner, you would have $50,000 a month. Now being able to get to that scale in size takes time, but it depends on the size of the projects that you get involved in. However, other things also come into play when you scale, such as a much high mortgage payment, as compared to a smaller portfolio. Essentially, having 100% of $5,000 a month in cash flow or 1% of $500,000 in rents is going to depend on what your goals are and what you are looking to accomplish with real estate investing. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)
9 min 11 sec
Episode Summary In this episode of Get Real Wealthy Season 2, Quentin shares how he was introduced, and how he has used the ‘buy, renovate, refinance and rent’, or the BRRR process. Quentin says that he has used this approach since 2008, from small starter homes to large 40, 50 unit apartment buildings. While the process is the same, the timeline varies a little and the scope of what you are doing with capital expenses can be different. He shares that when they had gone back to 20% down, he was just trying to figure out a way to get a larger yield on his money. He started out in real estate by taking a line of credit out on their principal residence. He adds that since the start, it's been refinancing and rolling that into new projects, taking on different partners on different projects, etc. while trying to take advantage of having a low-down payment into his projects, get better yield and have cash flow. What he had figured out was that if he bought a property that needed work, he could fix it, refinance it to the after repaired value, and as long as that after repair value cash flowed well, he could continue to hold that asset. The better that he did it, the more he was able to take out of the project and have none of his own money into it. While he had success with this approach and developed great relationships, he says “if I were to go back, I would have done a lot more of the projects that I had passed over because I felt like they were singles or doubles…” It led him to seek out other people who are doing the strategy, and met two great friends, Andrew Brennan, and Jeff Wood. Quentin also wrote the book The Ultimate Wealth Strategy with the latter. He adds “The Ultimate Wealth Strategy, which is on buying fixing refinancing renting real estate back then we called it the BFRR strategy. It was rebranded years later to buy renovate, refinance and rent the BRRR strategy.” In conclusion, he says that when you're able to find in use the strategy of buy renovate, refinance and rent and cashflow positive on an asset in an appreciating market where it is typically considered an appreciation market versus a cash flow market, you can do extremely well that's why he focuses on that strategy. In the upcoming episodes, Quentin will cover different aspects of this approach. Resources Mentioned http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)
7 min 59 sec
Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses the buying section of the buy, renovate, refinance and rent process. Quentin says that buying right is probably the most important part of the BRRR strategy. If you overpay for an asset, you are not going to be able to refinance it for a price higher than the purchase price, and the strategy is not going to work. He adds that you can actually buy at market price, but it will always depend on the market. Sometimes if you're in a heavily situated seller's market, the purchase price is a lot higher than what would be considered the previous market price. That can work, if the market price continues to push up over the time of the renovation, but you're taking a risk if you're trying to predict or speculate on a future price. He further says that if you are buying high, in a fast-appreciating market, it can really benefit you, even if you bought it at the market price of today. He says that “my preference is to buy with equity and buying with equity means that you have to work harder in order to find those properties…” He dedicates his time and resources to find opportunities that other people won't be able to. You can either spend the time and marketing dollars yourself to do it, or you can give those dollars to somebody else and let them do it for you. You deal directly with a broker who has a pocket listing, or you can reach out to wholesalers. Talking about the wholesalers’ assignment fees, Quentin says that they charge for the work, time and effort they dedicate to put such deals together. The alternative is going out, spending the time and looking for off market properties yourself. You can do that by reaching out to the people who put up the ‘WE BUY HOUSES’ signs, and asking to be put on their buyer's list. You can also use other sources like Property Guys or Kijiji. He further adds “create those relationships with those wholesalers…create relationships with realtors and brokers who have lots of listings that match the type of property that you are interested in purchasing.” In conclusion, Quentin says that when you reach out to them, let them know that you've got your financing ready, you have your down payment ready, and you just need the property. Furthermore, create a property scoring system that could help you filter the properties that fit your criteria. Resources Mentioned https://educationrei.ca/ldcourses/off-market-and-discounted-properties-real-estate-system/ (Off Market Properties Course) http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)
8 min 24 sec