Tearing down one house to build four townhouses, each with basement suites for eight units total. Calgary vs Edmonton investing, how to not pick the wrong tenant creating a real life nightmare and more on this week’s Truth About Real Estate Investing for Canadians!
My name is Erwin Szeto, host of this show of over 300 episodes and going since 2016 and I’m feeling fine after returning from three weeks in Japan and Hong Kong! We landed at 5pm last night, I’ve had five hours sleep, been awake since 3:30 am so let’s goooo!!
Our trip was amazing. Thank you for asking. The Japanese are a fascinating culture, I can’t recommend everyone go there for themselves and witness first hand what a lovely country and people they are. Super polite, great service, everything is on sale as the Yen is in the dumps.
When I visited Japan in 2000, the exchange rate was 100 Yen to 1 US dollar. Today it’s 109 Yen to one Canadian dollar. We get about 45% more buying power today than we did back when everyone thought Japan would take over and become THE global superpower.
But thanks to all their debt, the currency has been slaughtered but at least they have the highest GDP per capita among G7 countries while we have tons of debt and we rank 2nd last in GDP per capita among the G7 and expected to drop to last in the near future.
Travelling is such a wonderful way to learn and experience. As a real estate socialist, fiscal conservative, I find it fascinating how Hong Kong, the least affordable city in the world manages to house two million of it’s citizens in government subsidised housing.
How affordable is it? Try $260 to $430 per month. I spend more than that at Costco to feed my family…
But the crime must be terrible like Jane and Finch in Toronto right?
Wrong. Vancouver is considered low crime for an urban city right? Hong Kong’s homicide rate per capita is about 85% lower than Vancouver’s.
Then why all these Chinese immigrants? Not everyone wants to live under a communist regime. It’s nice to visit, not sure I’d want to stay 🙂
If you’re planning a trip to Japan anytime soon and want some tips please just reach out. If enough people ask, I’ll put a together a list of recommendations. With the Yen on sale, that means everything is on sale, plus sales tax there is lower than ours, there is no tipping so you save another 20%-30%. Public transportation is amazing, the best I’ve personally seen though I hear Singapore’s is better. I managed to only gain five pounds on the most amazing food I’ve eaten over that long a stretch. The crazy part is, in Japan’s 7-11’s, the ready made food is quite good and the cheap and fast. Who says you can’t have it all.
Where to next time? Taiwan, if it’s not invaded by China will be the top of our list, assuming we can’t get a cheap flight. We did for Tokyo hence the decision to go. Tokyo was cold during our visit: Fall colours had passed, temperatures ranged from 8-18 degrees but we would get warmer weather, direct flight, great food, clean cities, polite culture in Taiwan.
On the real estate front, we’re between quotes, repairs and renos having started across three properties we plan to list the first week of January as those properties are student rentals.
Selling a student rental is a bit different as my target buyer is an out of town parent and most out of town parents will be in town when students are looking for accommodation the first week of January so please wish me luck and if you know anyone looking to buy a quality student rental with A+ location, send them my way :).
Also in real estate: TD Economics came out with a report called “Ontario Housing: The 90s Downturn and Now”
I found this report while reading an article saying how Ontario may repeat the housing market crash of the late 80s, early 90s. The article linked to the TD report so I clicked the link to read the report for myself without hyperbole, nor media spin nor opinion. I like the language of economics: it’s like studying history, cause and effect, and how learning from history may help predict the future because one metric, sales to new listings ratio, is as low as it’s been since the most serious housing market crash over 30 years ago.
I’ve linked to the same report in the show notes:
Bloomberg titled the story “Could Ontario’s housing market experience a 90s-style downturn?” (https://www.bnnbloomberg.ca/ontario-housing-market-reaches-loosest-conditions-since-2008-1.2007138)
Could it? Spoiler alert, “highly improbable” to quote the article but please do read the report yourself. Nothing beats getting information straight from the horse’s mouth!
More locally, a friend of mine reached out as she’s looking for advice as she’s suing her joint venture partner. She gave me his name, I’d never heard of him, so I creeped his social media. After a few scrolls I could tell the guru was new to real estate investing, new gurus always have a lot of social media marketing and based on the quality of his Marketing and the guru coaches he posed with for a picture, I’m guessing he invests aggressively while highly leveraged, no different than a lot of investors who are in hot water these days.
So be careful out there. In my experience, most failed investments are due to lack of experience and that includes experience of the real estate expert in the joint venture partnership. There are so many great investment opportunities out there, boring ones that cash flow. One just needs to know where to look.
Don’t forget, Sat Jan 13th is our US Investing workshop and we’ve already sold 22 of 40 in person tickets so please do get your tickets asap to avoid disappointment.
January 13th at our iWIN office in Oakville which we’ll be available virtually via Zoom as well. Details in our email newsletter and the show notes!
Link to register: https://USworkshop.eventbrite.ca/?aff=iwin
Converting 1 House Into 8 Units in Calgary and Tenant Screening with Mackenzie Wilson
On to this week’s show! MacKenzie Wilson is a risk adverse, smart guy as he got into investing in Calgary real estate and wisely knew that screening for the right tenant was absolutely key and that the wrong tenant would lead to a living nightmare. This coming from a Calgarian! Ask him what he thinks about the investing in BC or Ontario!!
MacKenzie Wilson is an advocate for affordable housing and reduces the risk for landlords and tenants across Canada. With this MacKenzie has created and manages the largest online community of 4,000+ Landlords in Alberta. His online presence allows landlords to learn key fundamental landlord practices, navigating the risks and challenges associated with being a landlord, and maintaining a mutually beneficial tenant-landlord relationship.
If you’re a fan of development, highest and best use investing, pay special attention to Mackenzie’s current tear down, infill project in Calgary that will qualify for the in demand CHMC MLI select financing of 95% loan to value, 50 year amortization. He’s already purchased an everyday 60’ by 100’ lot which the correct zoning for which he will intensify into eight units. Not quite 10X but 8X the housing supply on a single lot is pretty awesome.
Mac as he’s known to his friends also works at Singlekey, Canada’s largest tenant screening service. The online service I use and recommend my clients use to screen tenants. I luv how far credit reports have come, they’ve gotten cheaper, faster, digital and more user friendly.
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.
To follow Mackenzie:
Facebook Group: https://www.facebook.com/AlbertaLandlordCommunity
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.