I trust everyone had a great weekend!
In the podcasting world, it’s not ideal to drop a new podcast episode on a holiday like we did my interview with OG crypto expert Dmitry Buterin last week, but the feedback has been great. One of our 17 listeners is in management at Google; they’re really bright and analytical, so their positive feedback was especially welcome.
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As the world is getting back to normal, Cherry, the kids and I have been taking advantage. We all enjoy being active and learning new things, so we’ve spent quite a bit of time skiing, ice skating both indoors and out and in the pool of our local club.
The pool is especially fantastic. It is inside a glass enclosure like a fancy greenhouse. It’s heated, so it feels like summer when the sun is out, even in the middle of February. Yesterday was so hot I had to jump in the pool to cool off.
I’m so grateful for these experiences we can share with the kids.
While the kids are young and living at home, we’ll make the best of these winters, but one day we’ll start spending some time somewhere warmer like Costa Rica during these winters. Personally, I think we will rent and work while on vacation and continue to invest where it’s easy for me, within a one-hour drive from home, where my team has boots on the ground because I’m simple that way.
From a market update perspective, it seems all but certain the Bank of Canada will raise interest rates 0.25% on March 2nd, even with war having begun in Ukraine by Russia, which is really sad. Oil prices are up as typical during war times. Inflation is a major story, along with real estate prices going up really fast in a short period.
I can’t help but be reminded of 2017 when the Fair Housing Plan came into effect along with a double whammy of new mortgage stress tests from OSFI, the regulator of banks in Canada. Then the market dipped in the spring of 2017 and took a year to rebound in Hamilton. After that, most expensive markets like detached homes in Toronto and Vancouver dipped more and took even longer to recover.
Cherry and I took the opportunity to buy two duplexes in late 2017 in the 400-500’s range…
We could be in for something similar this year, but no one knows for sure. Being part of a team of Realtors, we are keeping tabs on the number of offers on the properties we are involved with and will continue to keep our fingers on the pulse of the market.
We’re already starting to see a steep fall in the number of offers on investment properties but last week was a short week with Family Day and all.
We will, of course, go into the subject more in-depth as part of our Lessons for the Street at our next real estate monthly meetup on March 26th. If you’re looking to optimize your real estate investments, I can’t recommend enough that you join us. If you’re on my email list, you’re already invited to register; if you’re not, you can join our email list of tens of thousands of Canadian real estate investors at www.truthaboutrealestateinvesting.ca
In the stock market, stocks are going down, presenting opportunities to those who value-invest like Warren Buffet. Opinions on the stock market are interesting. Novices say the market constantly crashes, yet car owners get excited with gasoline prices dropping, and we happily fill our gas tanks when they do.
Warren Buffet and my friends with more experience like Lee Lowell and Derek Foster are sitting heavily in cash as they’ve shared with our Stock Hacker community, and I’m grateful to follow along their investment journey.
I’ve been sitting on a bunch of cash waiting for a good-sized pull back to deploy capital. As someone who enjoys making money, some of my biggest regrets as an investor are not buying many dividend-paying stocks post the financial crisis in 2008 and again post-pandemic crash in 2020.
Maybe this time I will learn my lesson and stock up on winning companies, including those that pay dividends. That and to add to my Bitcoin positions.
Of course, none of this should be considered financial advice; I’m not a financial advisor.
On to this week’s show!
Civics Teacher Investing in Real Estate & Stock Options W/ David Rahilly
From audience requests, one of our one or two dozen listeners asked for stories from beginners early in their journey and for investors who started later in life.
Today we have both in David Rahilly, who is close to retirement age, has been real estate investing for only a handful of years and recently learnt how to trade stock options.
David’s full-time job is as a high school teacher in Civics of all subjects. Civics class teaches students how government works, how to be a good citizen, the Charter of Rights and Freedoms, etc.
Unfortunately, we recorded this episode four weeks ago, and lately, there’s been a lot of confusion over the freedom to protest and when a protest becomes an illegal occupation.
As this is a sensitive subject, I think I’ll leave it as too much has divided our investor community, and I’d like nothing more than to find common ground – Building wealth using best practices in real estate, stocks, private equities, whole life insurance investments for comfortable retirements and leaving a legacy for our children.
David Rahilly being a high school teacher and like-minded investor like us, I wanted to hear his perspective on investing and what’s taught in school.
We ran out of time in the interview, but I asked David if he’d share lessons during this most recent downturn in stocks and cryptocurrencies. I’ve had to paraphrase for brevity and to reduce the use of technical terms.
For context, David is a student of the beta version of Stock Hacker Academy, which predates the current version we deliver with Best Selling Author Lee Lowell. He also follows the trades of the gentlemen who delivered the beta version vs. I follow Lee; hence our strategies differ.
- Be light on margin, which is like borrowing to invest
- Don’t trust the big players who will move the market and look to prey on small retail investors. Sell credit only on a stock you believe in at a price you want to own.
- Work slowly during volatile times in a falling market. Size the risk of each trade based on the risk of the underlying stock. For example, the risk profile is not the same for Apple vs a Tesla stock.
- You get paid more premium for more risk, but risk exposure is more significant should the stock fall.
- Don’t deploy all capital at once on a single stock.
DISCLAIMER FROM Erwin Szeto: I am not an investment adviser. Neither is our guest/s. All opinions are mine alone. Or theirs. There are risks involved in placing any investment in securities or in Bitcoin or in cryptocurrencies, or in anything. None of the information presented herein is intended to form the basis of any offer or recommendation or have any regard to the investment objectives, financial situation, or needs of any specific person, including you, my dear listener or reader. Everything you’re going to hear is for informational entertainment purposes only.
Please enjoy the show!
Just a friendly reminder that we are hiring more investment Realtors who want a full-time challenge to help our clients, regular everyday people, mostly from the GTA, invest in the top investment towns west of the GTA.
This is for driven folks who want to multiply their current incomes.
APPLY HERE: https://www.infinitywealth.ca/hiring
To Follow David:
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.