Greetings my fellow real estate investors, this is a the Truth About Real Estate Investing Show for Canadians and I hope you all had a wonderful summer!
Judging by how slow the market was I know many of you took time off to enjoy the weather, travel, summer hard as I call it. My name is Erwin Szeto, owner of iWIN Real Estate, the four time Realtors of the Year to Investors and the good times continue to roll for investors.
These elevated rates are certainly a pain for everyone but the long-term investor has fared exceptionally well. I just had a client retire from her day job so she wanted to take some profits on her student rental property in Welland to enjoy herself, travel, and pay less tax capital gains tax as she’s no longer earning job income.
Ten years ago, we helped our client buy a turnkey, student rental directly from the builder. The house was designed with the future in mind as I designed the basement to meet building and fire code for a basement apartment including rough-ins for a future kitchen. Basement apartments at the time were not legal and the city had all my clients sign an affidavit they wouldn’t not create separation between the downstairs and upstairs by adding locking doors.
Ten years later, these turnkey student rentals were in high demand as the location was minutes walking from campus, the house was newer and more modern than the competition and we successfully helped our client sell a tenanted property in a tough market for over 2X what she paid for it. The return on appreciation alone assuming 20% down payment is 500% or an average of 50% per year.
The great thing about renting to students is that they graduate school and move out of the house allowing us landlords to re-rent the house for market rates and with the million or so international students accepted into Canada the last two years, rents have skyrocketed.
My client is of course ecstatic to walk away with over $300,000 in profits in just ten years. She had a professional property manager as well so the investment was a passive as it gets.
If you follow the market as closely as I do then you’ll know tenanted properties that do not cash flow are in tough to sell. The more negative the cash flow or low rent the harder the sale.
At the same time our economy shrank by 0.2% in Q2 when the expectation was growth of 1.5%. The recession is here hence many economists believe the Bank of Canada is done raising rates and last time the Band of Canada paused rates in the early spring, the buyers went gang busters. Maybe we see the same as the long-term economic fundamentals still scream housing shortage.
Oh yeah, while sales of rental properties have been slow, tenant showings are in big demand as vacant units will show 20 something times in a week or two and rents keep going up. Who can blame housing providers as all operating costs and interest rates are up. Two of my property’s insurance came in $500 higher as the provider changed. I’ll be getting those requoted.
In the end, tenants will suffer the worst from immigration, inflation and in general Canada’s economic conditions. This is one of my worst fears being realised hence I bought each of my kids a house so they would be able to afford to get into the housing market when old enough.
If you have kids or a worried about your own retirement, I can’t recommend owning a quality income property enough and if you’re interested in learning how my clients, my wife Cherry and I invest then you’ll want to join our monthly iWIN Meeting, online only on Tuesday September 19th where my team and I will share the latest in the market at a high level and street level with sale prices, renovation budgets, rents and best neighbourhoods to invest, where our clients are investing. Plus we have a special guest in one of the larger developers in Ontario. Cherry and I invest in their projects and we’ve been provided exceptional, passive returns.
The following Saturday, September 23rd, we will be hosting the iWIN MasterMind Tour in the Niagara Region which in my opinion has big upside thanks to the recent correction, new hospital investment, and the government is not investor friendly YET. Fingers crossed, we will be touring one of my more successful client’s Triplex conversion.
From a single family home to three units under one roof! Now that is maximising one’s investment while tripling the housing on a single lot. I love it when our clients earn a world class return and are part of the solution in creating more housing that Canada desperately needs. Make money, do social good.
Even the Angry Mortgage guy Ron Butler agrees haha. I’ve gotten many DM’s, texts, comments on Youtube about everyone’s appreciation of Ron, the guest of last week’s episode. I do share many of his opinions, I’m just not nearly as vocal about it. But yes, our governments have screwed this up royally and it’s a sad state of affairs that buying a house as a rental property is a better investment than most businesses.
Two more years till our next federal election. By then interest rates will be much lower and we’ll be out of the recession is my guess. And lack of housing will still be a problem.
$100M Commercial Portfolio to Microdosing With Greg Habstritt
On to this week’s show!
As always, I look to bring you a variety of guests to share their unique experiences and journeys. Today we have old friend Greg Habstritt back on the show to share what he’s up after dominating the influencer scene, owning a $100 million dollar real estate portfolio, going through dark times both economically and personally. He invests in Calgary Alberta afterall. To his current personal interest and finally aligning his personal passion with curing mental health via medial psychedelics.
Greg and I are not medical doctors so none of this should be taken as medical advice so please speak to your own health professional. Greg does share his own out of body experience, flashing back to his childhood trauma allowing him to understand his adult insecurities.
This episode is not for everyone, we have hard core real estate guests all the time, you may want to check out a past episode if that’s more your liking but if you’re into bleeding edge or want to better understand yourself how a childhood trauma helped shape who you are today or learn about the best big thing after Cannabis then you’ll enjoy this episode with Greg who is a super smart dude.
His website is https://alightment.com/
Please enjoy the show.
This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me. Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up. If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/events and register for our next FREE Online Training Class. We will be back in person once legally allowed to do so, but for now, we are 100% virtual.
No need for you to reinvent the wheel; we have our system down pat. Again that’s www.infinitywealth.ca/events and register for the FREE Online Training Class.
HELP US OUT!
BEFORE YOU GO…
If you’re interested in being a successful real estate investor like those who have been featured on this podcast and our hundreds of successful clients please let us know.
It is our honour to give back and educate others on how we build cash flowing real estate portfolios using all the best practices shared on this podcast, from the lessons of our hundreds of clients and of course our own experience in owning investment real estate.
If you didn’t know already, we pride ourselves on being the best of the best real estate coaches, having the best property managers, contractors, handy people, cleaners, lawyers, accountants, everyone you need on your power team and we’re happy to share them with our clients to ensure your success.
New investor or seasoned veteran investor, we can help anyone by providing our award winning coaching services and this isn’t all talk.
We have been awarded Realtor of the Year to Investors in 2015 by the Real Estate Investment Network, 2016 by the Canadian Real Estate Wealth Magazine and again in 2017 because no one told the judges no one is supposed to win the award twice but on merit, our peers deemed us as the best. In 2018, we again won the same award by the Real Estate Investment Network.
Hopefully being the most decorated team of Realtors in Ontario will make you consider us for your first or next real estate investment. Even if you don’t invest in our areas, there’s a good chance I know who would be ideal for you.
I’ve been around for a while, some Realtors are talented at servicing investors there are many with great ethics. The intersection of the two, talent and ethics is limited to a handful in each city or town.
Only work with the best is what my father always taught me. If you’re interested, drop us an email at email@example.com.
I hope to meet you at one of our meetups soon.
Again that’s firstname.lastname@example.org
Infinity Wealth Investment Network – would you like to know how our investors returned 341.8% on positive cash flowing real estate over the last five years? On average, that was 68.4% per year.
Just imagine what winning in real estate could do for you.
If you would like to know how we did it, ask us how by calling 289-288-5019 or email us at email@example.com.
Don’t delay, the top markets we focus in are trending upward in price, so you can pay today’s price or tomorrow’s price.
Till next time, just do it because I believe in you.
Hamilton, St. Catharines and Toronto Land Development, Real Estate Investor, and soon to be builder.