Today’s guest has experience growing and managing a portfolio of 20,000 apartment units while serving as Executive Director of Investments at Canada’s largest apartment building owner. Dmitri’s area of focus was not socialist Canada but rather the landlord friendly states of the USA. He’s from Toronto but his next investments will be hundreds of miles south of Canada and Dmitri is going to explain why and what markets and property types he’s targeting. You’ll want to pay attention and take notes as I don’t know of an easier way to build a portfolio that will cash flow six figures as that is my plan. All this and more on this week’s Truth About Real Estate Investing for Canadians!
I’m Erwin Szeto, real estate investor since 2005, 4 time award winning Realtor and coach to investors since 2010. My team has transacted on over $440,000,000 worth of income properties, 350+ clients including 45 self made real estate investment millionaires.
It is my desire to bring zero cost truths about how to successfully invest in real estate for mom and pop. We pull no punches, there are no get rich quick schemes, this is about what Canadian investors are doing, what mistakes they’ve made, what tips and tricks they have implemented so we may leverage their experiences.
Happy New Year, everyone! As we step into this fresh chapter of 2024, it’s not just the calendar that’s seeing a new beginning. This time of year is especially important to me as my daughter celebrated her 10th birthday on January 1st so I don’t come anywhere close to staying up past midnight on New Years Eve as I have one of my favourite days of the year to celebrate the next day.
As it was two special occasions on one day, I decided I’d try a new recipe: crispy skin, roasted pork as that’s what we Chinese do and it was delicious!
Yes we could have bought the same thing at a restaurant but I use higher quality ingredients, the cheap asian in me loves to take cheap cuts of meat and make them taste like one of the best things you’ve ever eaten.
Speaking of delicious! I’ve set a goal an ambitious as part of my new year’s resolution:. Over the next 2-3 years, I’m determined to transform my real estate portfolio here in Ontario that has appreciated wonderfully thanks to lots of cheap debt and immigration and NIMBYs but it’s a pain the the butt when I’d prefer something more passive.
With an aim to generate a cash flow of over $100,000 per year, something next to impossible to do in Canada. It’s a journey I’ve thoughtfully planned, and I’m eager to share the journey with you as $100,000 buys everyone a lot of financial peace and freedom.
The first phase has nearly kicked off with the listing for sale my three student rentals near Brock and McMaster University. The final touches are being added—the repairs are almost complete, and the cleaning and photography teams are wrapping up their work. By the time this episode airs, these properties will be listed for sale, strategically timed at the peak of student rental demand.
From polling my clients with student rentals, there is really little supply of available rentals which is great news for savvy investor parents who want to make the financially correct decision to own my student rentals vs. pay rent. It’s the prudent decision when the kid’s friends will pay rent that will cover the mortgage and the price of the house rises.
I’m bullish on the Ontario real estate market, specifically houses since the condo market is soft so I’ll closely observe how the market unfolds throughout 2024 and 2025. If the market returns to its peak, I’m ready to sell the remainder of my properties, mostly duplexes and reinvest my capital in a market that welcomes investors.
Phase 2: New Horizons
The next step in my journey takes me across the border, into the USA, where I’ve set my sights on acquiring income properties. I’ve already found a property that’s piqued my interest—a detached house built post-2000, nearly 1,800 square feet with 4 bedrooms, 2 full bathrooms, and a two-car garage.
The location is super convenient between a new Walmart Super Center, brand new Starbucks, and a Samsung microchip manufacturing plant set to employ 2,000 people. As I mentioned to one client, I could do all the due diligence in the world and it would amount to a drop in the bucket compared to Walmart and Starbucks. They have done the heavy lifting. With an asking price of only $325,000 in a seller’s market, I’m optimistic I can get it for less. The expected rent? A forecasted $2,100 per month plus utilities.
Note, this would be the appreciation play in my portfolio, for much better cash flow I need to make a trip to Tennessee for my next property and today’s guest Dmitri explains why in the interview.
As my friends and clients can tell, I’m super excited about real estate investing again. All you veteran Canadian landlords I know can appreciate it.
I should mention, my plan is to hire Share the asset manager to handle my investment. I like my investments to be boring. I also thankfully get enough excitement in helping my clients build successful portfolios so I don’t need to flip or develop housing.
I also despise risk hence I’m filling out my power team with an institutional grade asset manager. I’ll let Dmitri who actually works for asset managers explain what that is.
Stay tuned as I embark on this exciting chapter.
$7Billion or 20K AUM in Landlord Friendly USA with Dmitri Bourchtein
On to this week’s show!
Dmitri Bourchtein (CIO & Co-Founder of SHARE) was formerly an Executive Director of Investments at Starlight U.S. Residential, with direct involvement in over $7B of U.S. residential real estate transactions. Dmitri is a seasoned institutional investor with experience in all aspects of the real estate value-chain and is passionate about levelling the playing field for retail investors in the competitive landscape of U.S. SFRs and enabling everyday landlords to maximize their returns.
By the way, if you like what Dmitri has to say, he will be speaking at our US Investing Workshop this Saturday January 13th.
Our guest speakers included Andrew the CEO, Carmen Da Silva, last week’s guest and CFO, and today’s guest Dmitri, CIO of Share.
We have owner of LendCity Scott Dillingham, the only investor focussed Mortgage Broker I know who can offer US commercial style mortgages to Canadians for income properties. Note commercial lending is better than residential mortgages. The property and the cash flow is the lender’s focus so it’s way easier to qualify and one can in theory have unlimited mortgages.
I’m your host and we are teaching direct investment as in the investor owns the property 100%. That is the definition of direct investment. No shares, no joint venture partners, not private lending. Good old fashioned income property ownership, in-line with how my client 350+ clients and I invest in real estate.
Link for details or to register: https://USworkshop.eventbrite.ca/?aff=iwin
To connect with SHARE: https://sharesfr.com/partners/iwin
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.