Greetings, fellow investors!
This is the Truth About Real Estate Investing Show for Canadians, and we have something a wee different today: our guest is an AI – artificial intelligence expert.
In 15 mins of using a free AI voice cloning generator, Nicholas could clone his own voice and break into his own banking account, beating a $100 million voice security investment made by the bank.
A week later, Nicholas was on a call with the CEO of one of Canada’s big five banks, asking him for advice on what to do with their $100 million investment.
Don’t worry; even though we’re discussing AI, we will talk more about the implications of AI in real estate, its threats and opportunities as this is a real estate investing show.
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Before we get to Nicholas, I’ve had many portfolio review Zoom calls with clients and listeners of this show.
The feedback has been excellent; everyone was grateful to have someone as experienced as my coaches and me to bounce ideas off of.
Whether it was to buy, sell, refinance, find a more aggressive lender, hire a coach, or even stocks and stock options!
It’s always nice to make a difference in people’s lives, especially in these high-interest rate times, and the market is slowing down for tenanted properties.
When you research what is actually selling, yes, properties are still selling, even pre-construction condos.
As I read in this Globe and Mail article, Pre-construction condos are still selling, but pricing has to be right, as in below $1,400 per sq ft tho. That’s well below the going rate of over $1,600-1,700 and $2,000 near the peak of the market before interest rates started rising.
Entry-level, which means less expensive, more affordable properties, are still in high demand judging by TREEB’s July data, but anecdotally, investor buyers are taking the summer off buying.
That’s our experience and the experience being shared by investors sharing with me their properties for sale.
Commercial real estate sales are waaaay off a year ago, with July being down 47% from the previous year, commercial office rents are way down at 13%, and retail rents are even worse, down 26% compared to last July.
With rates high, a small chance of another rate increase this fall and recession looming…. Though recessions don’t affect ticket sales to Taylor Swift concerts… Like seriously, six concert dates at the Skydome, a record, approximately 300,000 tickets to be made available and for everyone who pre-registered, they had a 1 in 400 chance to get on the buyers’ list. In-SANE.
Anyways, with cash flow only possible to those with larger down payments, it will be a rough time for income property sellers until we have a rate cut.
And when we do, the crisis for tenants is going to get even worse as it will be mostly those buying to live in buying while evicting tenants.
Short-term, it’s crazy times. Long-term, the situation gets worse for property price appreciation with elevated construction costs mostly here to stay, and tenants will bear the worst of the housing crisis.
Our new federal housing minister, the immigration minister under whose watch the immigration numbers ballooned, says reducing immigration is not the answer but instead increasing housing supply and targets.
I don’t know how that happens with high building costs, short labour supply and a healthcare system suffering from all the demand.
So what to do? If I’m a parent, which I am, I’m doing all I can to ensure my kids and grandkids have a place to call home that no one can take from them as in homeownership.
Homeownership with manageable costs, e.g. under 30% of household income for any Canadian, is one of the key requirements to being happy.
Even better is when the tenants pay all the operating costs and mortgage payments for my clients’ income properties. Allow the tenants to pay off those properties, and in 25-30 years, my client will have a mortgage-free and clear-income property that generates thousands in cash flow each month.
We may all need that added cash flow to pay for private health care the way things are going.
At the end of the day, inflation is bad, especially in housing, where it will only get worse. Make the decision today to get educated and take action.
Each month we offer free, online monthly iWIN Meetings where we share how our clients achieve financial peace through owning income properties and, for a nominal cost, MasterMind tours, on the streets, inside actual and potential income properties that have made our clients millionaires and multi-millionaires as a side hustle.
If you’re interested, stay connected with us and sign up for our newsletter along with 10,000+ of Canada’s iWinningest real estate investors. Simply enter your name and email on the right-hand side, and you’ll be informed of our upcoming events and newly released episodes of this show and show notes.
In the long term, the sophisticated investor holding high-quality assets will win.
The game of Monopoly is won by owning properties and collecting rent. Those paying rent don’t fare as well.
Make sure to be on the winning side!
Artificial Intelligence (AI) Impact, and On Real Estate with Nicholas Ning
On to this week’s show, where we discuss deflation and how to be on the winning side of AI.
Our guest Nicholas Ning likes solving complex problems making them easy to understand, and creating value.
Over the last ten years, he’s worked for Fortune 500 companies on multi-billion dollar projects around the world in strategy, finance, design, and marketing.
He’s also been hired by real estate companies and big-time developers to design business models using numerous AI tools to design and market real estate projects, and he’s here today to share how we small investors may learn and borrow some of these ideas for our businesses.
Nicholas shares the story of using an AI tool to break into his bank account, what he and the bank’s CEO discussed, why the hype in AI is justified, tools he used to build a business, a website to sell furniture in 15 mins for what a traditional Marketing firm would want $35,000 to 60,000 for.
The moment Nicholas saw the writing on the wall, his day job was at risk to AI, and he resigned.
What he’d be teaching his children (if he had some) to prepare them for the AI revolution and the question we investors are all asking, “Are real estate investors safe from AI?”
Personally, I’m using AI tools quite frequently these days and don’t see myself ever going back.
I can’t recommend enough that everyone pays attention to what’s going on, and this episode is a great place to start your journey, so feel free to share it with anyone you care about.
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 firstname.lastname@example.org.
I hope to meet you at one of our meetups soon.
Again that’s email@example.com
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 firstname.lastname@example.org.
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.