Welcome to the Truth About Real Estate Investing Show, ranked #81 on Apple’s iTunes in the Business category, thanks to our 17 listeners.
Thank you to everyone leaving 5-star reviews, liking and sharing, as that really helps the algorithms make this show more visible. In turn, we may help more everyday Canadians learn what actually works in real estate investing.
No get-rich-quick schemes but rather get rich slow with as little risk and effort as possible.
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We have guests that successfully flip, and we have many side hustle real estate investors who make great money at their jobs which is the highest and best use of their time.
The whole point of this show is to introduce to you investors with repeatable results who are willing to share the losses as well.
A lesson I’ve learnt along my journey and said to me by one of my mentors is not to believe anyone who never loses because if they’re willing to lie about that, what else are they willing to lie about?
Speaking of losses, sadly, a developer in Vancouver, Coromandel Properties Ltd, is making headlines for filing for bankruptcy protection from $700 million in debt across 16 major development projects, most of them unfinished.
The cause is rising interest rates, debt service costs, not raising more capital, red tape and delays due to covid and the city, even though the Chief Operating Officer is a former Vancouver city councillor.
Hopefully, this all works out soon, including condo buyer deposits being returned.
From a market perspective, a whole bunch of supply will be delayed; demand due to immigration is only accelerating while we’re in a housing crisis.
As a result, we expect Vancouver housing prices to be even less affordable.
This is what happens when the NIMBYs drive policy and developers take on too much debt.
As mentioned before on this show, I won’t invest in any debt-financed development.
Construction loans are fine, as banks won’t lend unless pre-sales thresholds are met, but other than that, I wouldn’t touch such an investment.
Sadly I anticipate Coromandel to be just the first mid-sized developer to fail.
There will be more small and midsized developers to go under, A win for NIMBYs, bad news for investors, would-be condo owners and lenders.
On the positive, Canada created 150,000 new jobs in January, 10X greater than expected, pushing unemployment even lower into historical lows.
The macro news still points to a soft landing, BUT we Canadians have a ton of debt; hence the Bank of Canada is pausing rate increases.
On the micro level, a friend of mine is a certified financial planner at the bank and counts 200 households among her clients.
Are they worried about a recession? Nope.
Only one client working in tech, specifically Amazon, worries about their job. Everyone else’s primary concern is being overworked due to being understaffed.
For a major housing correction, we need higher rates and massive unemployment.
So far, we’re missing the latter, and time will tell.
On a personal note, Cherry and I just returned from three days and three nights with my cousins’ families in Blue Mountain.
I am really out of shape or old or out of shape AND old as my legs were toast early on during the 2nd day of skiing.
The kids have little trouble keeping up with their old man, and we wait together at the bottom of each run while waiting for Cherry, who’s a cautious skier 🙂.
This is now year three of the kids skiing, and the lessons and camps really paid off.
The kids didn’t fall once over two days, vs. I fell unloading from the chair lift after getting tangled up with my ski in his snowboard’s binding.
The chair lift operator had to slow the system down.
Yup, I’m that guy slowing down everyone’s day, lol.
We all had a great time over great food and drink. All the 2nd cousins got along great, even rolling in the snow and hopping in and out of the hot tub.
Did I mention we got a great deal on a 5-bedroom cottage on Airbnb?
Only $750 per night!
Unbelievable what money-makers cottage rentals can be, but $750 per night doesn’t get you towels or bedsheets.
Those are $25 more per bed, but whatever; at least we didn’t have to take our garbage with us, which has been my experience with my previous three AirBnbs.
That has to be my pet peeve, so all you Airbnb operators out there, please don’t make me take my garbage with me; I’d rather pay a fee!
All of this, of course, can be avoided when staying in a hotel which will be my preference whenever we travel without the kids.
BTW, pro tip: with gratuities escalating and being automatically added, while in Florida, we dined at Whole Foods on their prepared foods, so everyone ate healthier and got exactly what they wanted, correct portions, healthy, quality and fast.
This was cheaper than dining at a restaurant, and my dad joke of telling the kids and Cherry that we’re slumming it at Whole Foods never fails to deliver eye rolls and head shakes 😂
How A Math Teacher Teaches Investing & Buys 30 Units With Kyle Pearce
On to this week’s show!
Kyle Pearce is a Math teacher and Kindergarten to Grade 12 Math consultant to his local school district in Windsor. He co-founded an online learning business for Math professional development.
Kyle actively invests in real estate for value and cash flow, stocks and options trades and partners to co-own North Shore Properties that holds 30 units in and around Windsor, Ontario.
Please pay attention to how Kyle and partner Matt divide responsibilities, as they have complementary skills.
Kyle is currently on unpaid leave from teaching to pursue the above business, investing ventures and co-hosting the Invested Teacher Podcast.
We get very detailed on Kyle’s most recent acquisition of a 9-plex and the vendor financing and terms.
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 Kyle:
Podcast: Invested Teacher Podcast – InvestedTeacher.com/apple
Web: Invested Teacher Website – InvestedTeacher.com
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.