On Sundays, we’re often entertaining friends and family as Canadians do: BBQ and pool parties 🏊
As I find it fun, I like to research, plan, then smoke huge cuts of cheaper meat since steak is so darn expensive.
Last weekend, I smoked a seven-pound pork belly – only $25, on Cherry’s pellet smoker for eight hours. I’ve been posting about this hobby on my social media.
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The strategy is low cooking temperature for a long period of time. I do my research by watching YouTube videos of competition-level chefs and restaurant owners. They don’t give away their recipes, so I ask ChatGPT for rubs and bbq sauce recipes.
I like my BBQ the way I like my investments. Boring, world-class returns and client satisfaction. Our guests, Cherry and the kids, loved it.
I served the pork belly burnt end style by tossing cubed cuts in homemade bbq sauce that I allowed to set by putting the goods back in the smoker. We served the pork belly with ramen and some boiled Chinese broccoli, and it was awesome.
Next time, I lost a bet and owed a friend a fancy steak dinner, but I negotiated a Wagyu smoked brisket instead, which will save me a lot of money, so let’s see how well I handle some world-class meat :). I’ll be sure to post pictures on my social media for those who enjoy following along.
Thank goodness there are world-class experts teaching on YouTube, or I’d be lost. FYI, this show, The Truth About Real Estate Investing for Canadians, is also on YouTube, and I’m honoured that our followers and clients also achieve world-class results in their portfolios.
On the real estate front, with all the fear and negativity around real estate and interest rates, I do what I always do: I look at the data.
So I had my team pull for me the numbers for our last six months and what the results were for our clients who sold their income property.
For context, with our clients, we focus on buying with the long-term in mind; we look for value and value add strategies which often means university student rentals and legal basement apartment conversions.
When the timing is appropriate, many take out equity when their mortgage terms expire and get bigger mortgages made possible due to optimised rents.
With Rates higher than many expected, many having used home equity, some refinanced properties are negative cash flowing hence some are choosing to deleverage, take profits, and pay down debts. I was curious as to how much money they were making.
For my analysis, I removed any property that was their primary residence and when we were not involved in the purchase. I only wanted properties we coached clients to acquire and helped them sell for maximum returns.
For simplicity, I assumed a 30% investment to cover the 20% down payment, closing and renovation costs, and a safe assumption that the rents covered all the operating expenses, so I’m assuming zero cash flow, leaving out mortgage paydown and disposition costs for simplicity and to be conservative.
The return on price appreciation alone was $313,000 or 280% ROI on an average hold of 5.2 years. That’s a straight average of 53.8% return on investment per year.
Past, of course, does not predict the future; I doubt prices rise as fast as they did again during the pandemic, but my vision here at iWIN Real Estate was to always provide our clients with exceptional returns at an exceptional value. To set the standard for investment performance and client satisfaction.
280% return over 5.2 years. I believe we have accomplished that. As a side hustle.
So when the market is feeling the pain of high-interest rates, my team of coaches and I sleep very well, knowing our clients’ portfolios have performed at world-class levels.
We’ve invested through the financial crisis, the correction of 2017, and a pandemic, and we’ll survive this high-interest rate and thrive when the rate cuts happen whenever they happen.
Conversations with my clients are in stark contrast to the single-family home, pre-construction investors who reach out to us for advice.
Their investments should be fine in the long-term if they can survive this high-interest rate environment, but unlikely they sleep as well as night, nor do their investments perform as well as my clients do.
We specialise in investing in small multi-family conversions real estate that’s on the ground, in high-demand areas, targeting the upper 20% of the market. We attract better tenants that way, our investment returns are phenomenal, and the strategy is systematic and repeatable.
The market has shifted. It’s still a seller’s market for high-quality, turnkey income properties. The relative advantage for buyers will not last long.
We know rate cuts are coming, just not when but we know what’s going to happen when it does: buyers will get off the fence and return to buying as they did in the Spring when everyone thought the Bank of Canada would pause the rate increases.
We are recommending to all our clients between 1 and 100 properties a complimentary portfolio review to check on their cash flow situation and equity with one of my coaches to make sure their money is working as hard as it can for you and be well positioned for the next up swing when the rate cuts happen.
For you, our loyal listener, I recommend the same in that you book a portfolio review with one of my coaches.
The harder your investments work for you, the less hard you have to work. If you’re interested, email us at iWIN@infinitywealth.ca and ask for a portfolio review.
I would suggest booking us if you need a 2nd opinion on an income property you’re about to buy as well. I spoke to an investor yesterday who just went firm on a conversion project but doesn’t have all his ducks in order, and his renovation budget is way too low.
The market we are in right now, I’ve never seen so many legal, turnkey properties available. Several of you emailed or DM’d me really great properties you are selling.
Why take on a major renovation project when the numbers would be the same for a turnkey property? Plus, the town the investor bought in has a lot of vacancies for such a small town.
I had a call with another listener who asked my opinion of her converting her recently purchased turnkey, century home duplex into a triplex because her friend with a fiveplex said it was a good idea.
I told her adding a garden suite would be cost-effective at around $200-$300,000 vs renovating inside the existing, over 100-year-old house that could cost over $500,000 and get less rent than my garden suite strategy.
Why accept vacancy, renovation, and less return on investment when better, less risk and grief options exist? This is why experience matters.
Anyways, email@example.com for a well-timed portfolio review, cash flow & equity check or a 2nd set of eyes.
From Sales Exec to Debt-Free Living: Tim JP Collins’ Journey to $100k Passive Cash Flow and a Simpler Life
On to this week’s show!
Tim JP Collins is an old friend of ten years or so, one of our most successful clients and has achieved the cash flow goal almost every new investor has when we first meet with them – $100,000 or more passive cash flow per year, so they can vacation more, not worry about money, retire their spouse, etc.
Tim is back on the show to update us on his journey from high paid, high-stress Tech Sales Executive to being debt free, with over $10k cash flow per month from his stock portfolio, and being a full Realtor on his terms at REAL Broker.
Ever since I’ve known Tim, he’s done things differently…
He invested in himself heavily by hiring a coach, getting educated, taking massive action, buying student rentals, several with joint venture partners.
As a Realtor at REAL Broker, it’s just him and his admin assistant. No team, no plans to build a team, so less moving parts and people to manage. Tim likes making money and keeping his life simple, which I think we all want more of in our lives.
He’s a father of three boys, a husband, debt-free living in lovely Nanaimo, BC, a Brazilian Jiu Jitsu white belt and has much to teach us all.
If you enjoy the show, you’ll want to tune in when Tim is our guest speaker at our Tuesday, October 17th iWIN Meeting. 7:30 pm EST.
I’ve asked Tim to present on how he built his 7 figure bankroll in real estate and what he now invests in to generate that $10,000+ cash flow per month.
He’ll also share his experience belonging to REAL Broker, including saving money on commission splits and their revenue-sharing program.
So save the date! 7:30 pm EST, October 17th iWIN Meeting. Online only, as Tim will be joining from Nanaimo, BC. Got to love technology!
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 Tim JP Collins:
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.