I’ve personally invested through many, many good times and never have I seen bad times like we are in today.
Everyone’s experience is different, though: flippers and speculators are having the toughest time. Even those who bought pretty smart the last three years are having challenging times.
Those who have invested the longest, for example, pre-2020, generally are faring the best I’ve spoken to listeners negative about $1,000 or more per month per pre-construction condo.
Even BRRR investors who are negative cash flow post refinancing. Many are selling to get their debt under control, and we’re happy to be able to help these folks out.
We all got into real estate to gain freedom and control over our lives. When debt gets out of control, then we’ve lost control. Thankfully, many have lots of equity in their properties, sell and take profits plus the return on capital.
I put out a request for income properties, duplex or better, last week, and I’ve never received such a large response. Numerous legal, small multi-family properties in top towns just outside the GTA: right in our sweet spot.
An interesting observation: none of the small multi-investors are overly motivated to sell. Why? Because they invested right.
Those who invested purely for appreciation without an eye on cash flow? They’re having a tougher time.
I even spoke to an investor who is operating an Airbnb without a license in a town with strict Airbnb licensing and is having difficulty selling.
No different than a non-legal duplex, triplex, etc., a property not in compliance with local by-laws will be a more difficult sale when there are fewer buyers in the market.
This is why our clients focus on legal, small multi-family properties.
When one focuses on cash flow, one can survive the tough times, AND when it’s time to sell, there are lots of buyers, especially since housing affordability continues to erode. Therefore, more and more buyers need more income in order to afford hence living in a house with tenants helping to pay the mortgage makes so much sense.
We are in the middle of summer as well, so both long-term rental and resale markets seasonally decline in the number of transactions, but with high interest rates, including last week’s raise of another 0.25% to bring the overnight rate to 5%, many investors are feeling the pinch.
There’s a chance of another interest rate raise this fall, and there is no relief via a rate cut expected till June 2024.
Elevated rates will be here for a while, so it’s survival mode time.
Even for Cherry and I, to improve cash flow, I had to fire our St. Catharines Property Manager as our rentals were underperforming due to poor maintenance, causing vacancy.
As a discerning real estate investor, I hate vacancy. I use the word hate sparingly, but nothing ruins a real estate investment like vacancies.
After an onsite tour of our properties in May, where I took notes and pictures and spoke to tenants, I assigned maintenance work to my own regular handyman, who I trust.
He referred me to a local leasing agent, and I’m happy to report we signed a lease for the final room in my student rental property.
The previous Property Manager was either negligent or didn’t know what they were doing as my property experiencing vacancy, had burnt-out light bulbs, badly needed paint, one door was broken, and one bathroom had drywall damage.
All minor things hence the previous students did not renew, nor would new tenants want to sign.
In the end, the work to repair the property was under $2,500, and we signed three students for close to $2,000 rent per month, near top-of-market rents and higher than what the previous PM was signing new tenants for.
All of the existing tenants are happy with the change in management, I’m saving money and now making more money.
If you want to know how much of a landlord’s market it is in student rentals, the final room in my house, which is the smallest room that is under 10 ft by 10 ft, used to rent for $400 before the pandemic.
We just signed the same room for $575. That’s an increase of almost 44% in just over three years.
The lesson is not all real estate professionals, it’s not uncommon for things not to work out with a Property Manager; one just has to keep tabs and take action when necessary.
We disagreed on management styles; to them, vacancy was acceptable in this market. For me, I know better.
My clients own around 100 student rentals, and we all cater to the top 20% of the market. We here at iWIN Real Estate play to win!
Make sure everyone on your team is on board with playing to win in investing and knows how to achieve wonderful returns.
If you are an investor and could use a 2nd opinion on how your existing portfolio is performing, maybe you have some properties with equity but negative cash flow, please reach out to firstname.lastname@example.org.
The year is halfway over, and the value to you is to make sure each property is serving you, and if they’re not, we can suggest better uses for your investment capital.
Just like the stock market, things change frequently, several investment strategies no longer make sense.
It’s time to review and reset to set your portfolio up for future success. 30 minutes, there’s no charge; just reach out to email@example.com, and one of my coaches will get back to you.
If you’re more information/education, we have an upcoming iWIN Meeting, all online via Zoom, where I’ll be sharing the latest market update AND the artificial intelligence, specifically AI tools we’re using today in our business.
AI is going to cause massive disruption for the good of those who know how to use the tools to be more productive.
I’ve already saved myself thousands of dollars, and I cannot wait to show you all how!
As always, I’m on a mission of truth seeking to find out what works and doesn’t work in my own business and portfolio of real estate properties.
The iWIN Meeting is Tuesday, July 25th at 7:30 pm EST. My team, coach Tim Hong will be sharing how he and our clients are dealing with high-interest rates and rebalancing their portfolios.
In these unprecedented times, as we navigate the uncertain terrain of a high-interest-rate environment, we understand that managing your investment properties may seem more like a burden than an opportunity.
This is an opportune moment to rethink your strategies and seize the opportunities that these high-interest-rate times are currently yielding.
Yes, that’s right, there is plenty of smart money who are being greedy while others are fearful.
In the face of change, knowledge is power. Embrace this opportunity to enhance your understanding, refine your strategies, and prepare for success.
Your investment properties don’t have to be a source of worry in these high-interest-rate times. Instead, let them be a powerhouse for your wealth generation.
Leverage my team and my vast experience.
For those who enjoy an in-person experience, we are hosting an iWIN MasterMind Tour the following Sunday, July 30th, in Kitchener/Waterloo, where we tour two income properties and mastermind over lunch.
There’s nothing better than learning hands-on, onsite, in person and hanging out with like-minded people, in my experience.
Make sure you’re on my email newsletter to stay connected to all these best-in-class educational events.
One can register on my website at https://www.truthaboutrealestateinvesting.ca/. On the right side, give your name and email, and you’ll know about all our latest and greatest events.
If you have friends and family who care about improving their financial futures, invite them along too.
Cash Flowing Windsor, Sudbury; Arson, Sleepless Nights, Quitting Corporate w/ 27 Y/O Austin Yeh
On this week’s show, we have a very real conversation with full-time professional investor Austin Yeh who does it all: wholesales, flips, BRRRs, negotiates his own cash for keys, podcaster, meetup host, and it’s not all pretty.
Austin shares how he’s had to rebalance his portfolio wholesaling market slow down, which are short-term problems as he successfully transitioned out of his corporate job in Feb 2022 to investing in Windsor, Sudbury, and even downtown Toronto.
Austin shares how he got started networking at local investor groups, connecting with locals to build out his teams.
We walk through the numbers of a couple of deals, and Austin doesn’t candy coat the challenges that come with buying ugly properties, including a case of arson where his property was intentionally burnt down by criminals, the phone call his partner received from the police, the sleepless nights if the insurance would get paid out… How his target markets and properties have evolved over his career.
This is a very real truth about real estate investing episode where problems are not always worth the profits.
Hopefully, you, my friend, one of our 17 listeners, can takeaway how to improve upon your real estate business and leverage the lessons from this episode and the 300+ episodes before this one.
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.