As the Warren Buffet quote goes,
“A rising tide floats all boats… only when the tide goes out do you discover who’s been swimming naked.”
The real estate market in Ontario has been fantastic and has steadily gone up a lot since the recovery from the 1989 crash.
I know lots of people who’ve built intergenerational wealth.
Many of you and your neighbours did as well simply by buying a house five or more years ago. Those who bought several houses five or more years ago benefited multiple times.
This week, I hosted a mastermind dinner with many of our student rental investors, as the timing is ideal. We enter student rental marketing season as University students begin looking for a place to rent in December and January for a May 1st move-in.
After a crappy pandemic where some students bailed on their leases and went home, market rents went down for the first time in forever.
The pendulum has now swung hard in the other direction in favour of the investor as there is reduced supply of student rental houses. Demand is up slightly; hence rents are through the roof.
A client of mine just texted me she signed new tenants at rents 30% higher than the previous tenants. As a result, she now cash flows over $3,000 per month on just one house.
Over dinner, we masterminded how to communicate with tenants if they’re staying or going, what rents we’ll test starting next week and shared old war stories.
My old friend Ron Esteban even started a discord group for everyone in attendance and named it “Erwin’s Student Rental Army” for us to stay in touch, which I find hilarious.
Ron also spoiled my fun, being the youngest in the mastermind.
I was the 2nd youngest in the room, and when I looked around, I was so proud of our clients. They’re all doing great; some have retired, some can retire, some are working on contract at expensive rates, and several have helped adult children buy their first home.
They all have significant financial peace.
Everyone has great investment properties they’re happy to own, some for a decade already and not one of them is a full-time real estate investor.
That’s what real estate investing done right looks like.
Done wrong however… an update on Alex Solga of the now bankrupt Clydesdale Capital Group Inc, previously owned in partnership with Fayaz Gulamani, aka Mark Smith, that owes just over $8 million to creditors.
Details are in the preliminary report below.
From the advice of Alex’s lawyers, he can’t come on this podcast which I totally understand.
I did share with Alex that I’ve seen this before I shared what I think happened.
I’ve been attending investor meetings and networking events since 2008. I personally know folks and interviewed them on this podcast, investors with 50-100+ properties, mostly in Alberta, sharing on stages how they did it.
Those in attendance, myself included, couldn’t wrap our heads around how they did it.
We thought they were gods of investing, and we were crap with our tiny portfolios in Hamilton and whatnot…
Until the market turned, their portfolios were underwater while everyone in Ontario and BC did just fine. More than fine.
What saved them was their properties were at least rented out, so money was coming in to cover the expenses.
This was largely in Alberta, and I knew one gentleman in Hamilton who lost everything; 50+ JV properties were all sold off by the banks at a discount. He lost his home, wife, family, and reputation.
This was also back in 2008 during the oil crash and financial crisis.
Fast forward to the present, a new wave of real estate education groups, local groups too and not ones from BC and Alberta or the USA, new influencers, networks and coaches with limited experience emerge, and the cycle restarts.
Many who fail to learn from history are doomed to repeat it.
Red flags were ignored, greed was unchecked, private lending became popular mostly among regular, everyday folks, and double-digit interest rates in exchange for passive investing on high-risk projects.
We saw this before with the bankrupt Paramount and Fortress.
Still, brokers broker and lenders lend.
Investors raise OPM because their vision and mindset of abundance overshadows the fact that managing trades, renovations, and construction is not easy in my experience, made harder in an environment where labour is in shortage, wages are skyrocketing and material shortages are ongoing.
Long-term, boring cash flow investing wasn’t profitable fast enough to quit day jobs and retire, so some scaled up too fast, doing fast flips and BRRRRs without the operational know-how.
Resources were spread too thin. Properties are vacant, so no money is coming in to cover the mortgages.
In reviewing Clydesdale’s holdings, their properties were located hours apart. Two are in towns in Ontario I’ve never heard of; Hamilton to the West, as far as North Bay to the North, and Peterborough in the East, plus a property in Belize.
Alex and Fayaz, aka “Mark Smith,” live in London, Ontario.
For me personally, too much risk.
I’ve never seen anyone pull off that much scale covering that much geography. I prefer boring stuff I can control with a one-hour drive from home.
I do BRRRR and have been doing so since 2005; most of our 500 clients have since 2010. We just do one at a time with only the best of the best team on my project using A and, on occasion, B lenders.
If you, too, would like boring investing that cash flows, we operate East and West of the GTA because that’s where investors can actually find cash flowing, boring, best ROI I can find with every best practice I can find.
Then let us know. Reach out to email@example.com, and one of my coaches will be happy to get on a call with you.
We are always recruiting those who want to be self-made, millionaire real estate investors in boring, repeatable, systematic ways that cash flow.
Getting Creative With Investing In Alberta With Russell Westcott
On to this week’s show!!
We have an old friend of the show, Russell Westcott, who was in town all the way from Vancouver to Toronto for the Wealth Hacker Conference.
Russell has owned 100+ properties and has the battle scars and lessons on how to invest better in Edmonton, Alberta.
Russell is a smart guy and is here to share how his coaching clients are navigating this high-interest rate environment with creative, above-board financing and a couple of different investment strategies for the highest and best use to create more housing units and, of course, generate higher rents on properties that other investors simply don’t see.
As always, it’s a treat to have the JV Jedi on the show, someone who’s always thinking outside the box on how to maximize returns for his coaching clients and on their properties.
I give you best-selling co-author Russell Westcott!
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.
This episode is also brought to you by www.stockhackeracademy.ca, where everyday real estate investors learn the best practices in stock investing to earn cash flow in about 15-30 mins per day from their mobile phones. After real estate, Stock Hacking is the next best hustle, as you’ve heard from many past guests on this show. Among our students last year, 31 trades were shared with them. 30 were profitable for an over 96% success rate and 12% return on capital. I will be giving free demonstrations online, very similar to the one I gave my kid cousin, a full-time musician who just made a 50% return in 2021. Past, of course, does not predict the future, but if you’d like a free demonstration, go to www.stockhackeracademy.ca in the top right and click FREE Demo. At the demonstration, I’ll have special bonuses. We do not advertise publicly for all my favourite listeners, and I only have two more demos to give in the next few weeks.
Don’t delay www.stockhackeracademy.ca, what I consider the future of side hustles with real estate so unaffordable for many.
To Connect with Coach Russell:
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.