Two weeks Cherry and I visited Ottawa. Cherry was interviewing Ottawa real estate investors and her clients from the Non-Profits space. For me, I was invited as a guest speaker to OREIO which stands for Ottawa Real Estate Investors Organization. Cherry was the other guest speaker and she shared her experience in buying the new Accounting practice we own called Otus Group.
With everyone looking to invest or improve their cash flow along with avoiding long-term rentals and all the challenges that come with long-term rentals, business buying has been a growing topic of interest in our community.
Elizabeth Kelly mentioned investing in motels as one possible strategy and it just so happens we have motel investor Victoria Cluney as an upcoming guest of the show! Make sure to like and subscribe on iTunes, Youtube and Spotify, my personal favourite platforms
Cherry’s talk explained the awkward dating-like dance she had to do to just be able to submit an offer. She had to book a call with the broker and broker only, then a call with the owners of Otus, then an offer but we were one of five offers.
Business buying even in a recession can be competitive!!
My talk was on student rentals, a strategy I’ve helped clients transact on 100+ properties. The thing about the student rental strategy that makes it awesome is because university students turn over every 2-3 years, allowing investors to raise rents back to market so we’re not stuck back stopping a long-term tenant’s housing inflation.
We have parents sign guarantees for rent and damages and we’ve never had to take a university student tenant to the Landlord Tenant Board. Only a small number of college students were taken to the LTB. Unfortunately the worst student tenant experience was in my own property but we’ll save that story for another day.
There’s a strong investment case to avoid long term rentals hence so many in our community have pivoted to AirBnb, mid-term rentals, flips, development.
Now BC is looking to ban AirBnb’s outside your own home. It’s only time until we see the same for Calgary, bans on mid-term rentals. I don’t blame the government since they answer to voters and voters are concerned about housing and maximising long-term rental supply . Stupid democracy.
Before the OREIO meeting, I had a blast hanging out with christian szpilfogel, the former Ottawa tech executive turned full time investor. If you’re a real estate geek like me, you’ll love his projects.
Here is Christian’s standing inside the 2nd floor of the 7 plex he’s converting into a 12 plex. Notice there are no floors so we’re walking on floor joists. Not fun for those with a fear of heights like yours truly. From the third floor, one can stare straight down four storeys into the basement. I don’t know if it’s a fear of heights thing but my imagination immediately visualised me falling through a hole in the floor, bouncing around on my way down and coming to a bloody rest on the concrete floor of the basement. Is that just me?
Christian explained to me how the deal worked financially as a renovated seven plex. Of note, he’s not the guy to pressure tenants to leave so he may renovate and jack up rents. But by working with his architect they found a way to add five more units which includes building an addition at the back and extending the roof to the new addition which needs to be done before it starts snowing. Which I hear comes the first week of November in the frozen tundra of Ottawa.
Christian also took me for a tour of his commercial and mixed res/commercial properties in Almonte, a suburb of Ottawa and home of Canadian basketball legend James Naismith, the inventor of basketball. Christian wass in the middle of a conditional purchase of a former post office that looks like a miniature parliamentary building, tall, narrow, solid brick with signature steep copper roof that’s stained green.
The building is designated heritage so there are rules and guidelines to maintain the exterior appearances in terms of the architecture. While heritage buildings look amazing, maintaining materials and workmanship from over a hundred years ago is both challenging and expensive.
So I tagged along with Christian and daughter Veronica to meet with the local planner. Amonte is a small town mind you so the planner we met wears three hats: Heritage, Planning, and Engineering. She is one of only two in the planning department.
The meeting was productive, the planner was helpful, she shared with us about the heritage grant programs and because Christian’s conditional purchase has a ton of exterior stone work, he asked where he could find a stone mason.
As usual, city staff don’t provide referrals due to potential conflict of interest and liability so she referred us to speak to the head of the non-government, not for profit heritage committee, and where to find him, at the local Textile Museum only 450 metres away.
Christian only has a week and a half left on his conditional period so this is urgent. We leave the meeting with the planner to walk to the edge of town to find the head of the heritage committee. We’re in luck as he just returned to the office. Consistent with my stereotyping of small towns, he’s helpful and refers us to the top mason in town used by the majority of owners in the heritage district.
In true small town fashion, Sean the mason lives eight doors down… that’s right. Eight houses away. Not even 150 metres and it’s on our way back to where we parked.
I’m laughing out loud as we walk and suggest to Christian we go knock on mason Sean’s door to see if he’s home. Christian was thinking he’d call him the next day but the mason’s address is on our way anyways.
With google maps help, we arrive at what looks like a house and there’s what looks like a contractor’s pickup trucking in the driveway of a century home that’s been immaculately maintained. Always a good sign when hiring a contractor.
We knock on the door, Sean’s wife answers the door and we’re in luck, Sean is home for lunch. We exchange pleasantries, get Sean’s card, most importantly book an inspection for 8am Monday.
I know I do have the silliest sense of humour and social media has commented how I laugh at my own jokes here but please do understand where I’m coming from, we just completed three back to back to back meetings on foot within 90 minutes. In a bigger city like Ottawa or Hamilton this would take days or weeks of email and phone tag.
Thank goodness for Sean the mason as his rough estimate thanks to his experience and localised knowledge working in town was 25X cheaper than the quote from the large, unionised company from Ottawa. There’s a difference in materials but we’re talking 25 times. Needless to say the latter’s quote would kill the deal but thanks to small town kindness and efficiency, the deal is still alive.
We’ll have Christian back on the show soon as I’ve been bugging him to build a course around commercial real estate investing, specifically around identifying high traffic areas because Christian makes commercial office, retail and restaurant landlording work. It works because he has no vacancy.
By the way, my name is Erwin and this is the #81 Business podcast in the world per Apple iTunes which by magic we achieved with only 17 listeners. We’ve been here since 2016 with well over 300 episodes, over an hour each. Thanks to the success of my clients not going unrecognised, my team and I at iWIN Real Estate have been honoured as the Realtor of the Year for Ontario or Eastern Canada for four consecutive years.
It’s been an amazing journey since 2010 and as the saying goes, the only thing consistent in life is change and I will do my best to stay ahead of trends and reading tea leaves.
This past iWIN Meeting I was sharing my research on the problems China faces: China is among the worst in the world for birth rate, well below the needed number of babies to maintain the country’s population. Pretty much all of the developed world has the same problem but at least in Canada, we’re able to draw young, international students from India who mostly want to stay in Canada and pay taxes.
Back to China though, their unemployment rate of young people aged 16-24 is over 21% and demographically, there are few of them. Housing costs are high like here in big city China so do you see the Chinese having more babies? No. My point is relative to the rest of the world, the USA will dominate in terms of economic growth thanks to better affordability, they have their own oil, tons of excellent farmland vs we want to pave over ours in the Greenbelt, Mexico is a wonderful trade partner for them as a source of low to mid level manufacturing at cheaper labour rates than China.
The USA is near and re-shoring its manufacturing. If you’ve been following the microprocessor manufacturing story, critical hardware to the Ai revolution, the US Federal and State governments are investing hundreds of millions and billions in order to divest from chips made in Taiwan.
Taiwanese chip manufacturer TSMC themselves are building a $17 billion plant in Texas hence I’ve booked a trip to look at real estate in Texas in January.
Next month I’m going to Columbus, Ohio where Intel is building a $6 billion plant with 3,000 net new jobs. You better believe those are high paying jobs, the kind of people I’d want as tenants and buyers of my real estate investments.
Alternative Borrowing for Flippers and BRRR Investors with Calvert Home Mortgage Investment Corporation
Onto this week’s show!
We have Calvert Home Mortgage Investment Corporation in the house! OR Calvert for short. They specialise in short-term financing for flippers, BRRRR investors, even pre-construction investors who need short term financing to close a property so they may immediately sell said property.
As a real estate geek, I enjoy learning about what’s going on the in market, where investors are putting their money and borrowed money from Calvert to work. Where do they find deals? What cities, provinces, on or off market and I hope you the listener enjoy it too.
I even turn the table on both Ryan and Garret who both live in Calgary and ask where they invest their own money. For anyone who wants to lend their funds privately, I think it’s a good idea to listen to how professional lenders invest their money because if it’s good enough for an insider… well just have a listen.
Please like, subscribe, leave a 5 star review on iTunes or Spotify, funny enough our spotify rating is higher therefore Spotify is now my favourite podcast platform. And 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.