How and Where Canadians May Invest in Florida with Ryan Poole

How and where Canadians may invest in Florida real estate, how short term rentals earn double that of long-term rentals, not just for ROI but ROL: return on life and more on this week’s episode of the Truth About Real Estate Investing.

My name is Erwin Szeto, 4X realtor of the year to investors, proud Canadian but you the listener, at least the half of you who responded to my survey on if you’d like to learn more about how a Canadian may invest in the USA, 91% of you wanted a webinar or workshop and 50% of you mentioned you’d like to learn more about Florida and why not since there’s no state tax, it’s the home to Mickey Mouse, and the sun is always shining there.   Except when it hurricanes but don’t worry, I’ll be asking our guest expert, Ryan Poole with 20 years experience in FLA about hurricanes and insurance too.

Before we get to learning about Florida, I’d like to say thank you to everyone who’s come by to say hi when you see me in public. I ran into one of my 17 listeners at Costco and we were discussing how he’s getting his butt kicked in Sudbury and I told him the numbers are better in the sunbelt states of the USA, no snow, no frozen pipes, no rent control or LTB he booked a call with me 🙂. I’m always happy to book a call with one of our 17 listeners and 350+ past clients.

Others I ran into at the Ontario Landlord Watch Conference and thanked me for being a source of news entirely relevant to the Canadian real estate investor.  I was just speaking to another investor who’s owed $175,000 in private lending to the wrong investor who’s the leader of the wrong networking group.

I told her I literally knew they were trouble for years and had one of their earlier victims, Tom Sullivan, detail his experience on my podcast back in 2019.

Due diligence so often would have saved many investors a lot of money and stress. I’m no different, I have PTSD from con artists which has simply fueled my analysis paralysis and forever search for the truth.  For example, the YouTube algorithm suggested for me a video fact checking Geopolitics analyst Peter Zeihan and Bridgewater founder Ray Dalio.  The Channel is called Money and Macro and I’ve binged it already and it’s been awesome.

I do luv staying informed and learning about economics, austerity, why rich countries are not having enough babies, Japan’s rocky economic history, so I may leverage the lessons from the history to make investment decisions accordingly.

Based on my research showing the USA will remain the top super power in the world combined with my experience of being a landlord in Ontario, I’ve decided to invest south of the border as the US government is investing heavily in bringing manufacturing back to the USA and I too will benefit by investing near the future locations of those thousands of six figure paying jobs so they may rent from me.  Them or the tens of thousands of spin off jobs.

For example, did you know the world’s biggest contract chipmaker based in Taiwan, TSMC, is investing in a $40 billion chip manufacturing facility in Phoenix Arizona?  That comes with 4,500 manufacturing jobs and you want to know why governments of all levels want to attract manufacturing jobs?  Because each of those jobs creates 4-5 spinoff jobs so conservatively that’s another 16,000 jobs.

While back in Canada, Toyota was looking for funds to build EV batteries or cars in Cambridge, ON but unfortunately Cambridge average real estate is $800k per home, our governments are out of funds, hence Toyota will be looking to Michigan, North Carolina or Texas.

Follow the money, where there are thousands upon thousands of high paying manufacturing jobs as humans will move to where they make more money, for lifestyle and affordable housing costs. I can buy a suburban 3 bedroom, 2 full bath, 2 car garage in most top towns for the same as a house in Edmonton, AB or the same in Phoenix, AZ for the same price as a house in Calgary.  But when you research the job and income growth from the thousands of manufacturing jobs coming, I’m earning US dollars vs Canadian dollars. Plus it’s buyers markets right now for most of the top towns in the sunbelt states with way larger populations, more diversified economies, the investment decision is pretty easy.  

FYI: The entire province of Alberta is 4.4 million vs the greater Dallas area is 7.6 million.

From my research, the top, landlord friendly sunbelt cities in the States combined with commercial style mortgage financing which is way easier to get than what we’re used to in Canada on small residential properties. It makes too much sense to not at least get educated on US investing before buying your next investment property.

We here at theTruth About Real Estate will be offering deeper dives at our month iWIN Meetings.  You’ll notice we are trending away from long-term rentals in Ontario as our topic at the upcoming November iWIN meeting is about vacation rentals by Darvin Zurfluh or Pinnacle Wealth Brokers, and my friend Andrew from Share Single Family Rentals will be sharing how he invests in Florida, Texas, Atlanta and upstate New York!  Andrew owns 20 income properties he’s never seen before.  How does he do it?

We have Victoria Cluney coming up on this show sharing how she grosses six figures per month on her short term rental motel in Nova Scotia, Canada.

Owning real estate is still a must for anyone who wants to defend and grow their wealth but ideally, avoid investments with rent control and dysfunctional landlord, tenant boards where not receiving rent for months to a well over a year are a risk.

How and Where Canadians May Invest in Florida with Ryan Poole

On to this week’s show!

Our guest is basically a Canadian as he grew up in Minnesota near the border. Ryan grew up further north that the vast majority of Ontarians so he knows snow, hockey, black flies and cold winters.

Then he smartened up and moved to Florida and participated in some roller coaster markets including the financial crisis and housing market crash of 2007-2009.  Ryan will share his experience on how they made a killing back then.

Ryan is well beyond just being a Realtor, he’s the founder and CEO of RealTrade Inc. which is like the Facebook Marketplace for real estate professionals and real estate listings, a smart diversification play for Realtors to keep control of their listings vs the Zillows and Redfin.

On the Florida real estate side, Ryan recounts how he made money buying bad mortgages from the banks in 2009, the current market inventory and demand, short term or hybrid rentals which is a split between mid-term and short term rental, hurricane insurance and changes to construction, the landlord, tenant laws and tax benefits, what to do for fun the south Florida.

50% of survey respondents wanted to hear more about Florida so here you go! I give you Ryan Poole, 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 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 and register for the FREE Online Training Class.

To Listen:

** Transcript Auto-Generated**

Unknown Speaker 0:00
How work can easily invest in Florida real estate? How short term rentals earn double that of long term rentals not just for ROI but our O L or turn on life and more on this in this week’s episode of The Truth about real estate investing show for Canadians. My name is Erwin Seto full time realtor of the year to investors proud Canadian but but no. For you the listener, at least half of you who responded to our survey, you’d like to learn more about how Canadians may invest in the USA 91 91% of you wanted a webinar workshop 50% of you mentioned specifically you want to learn more about Florida, which is why

Unknown Speaker 0:38
and why not since there’s no state tax. It’s the home of Mickey Mouse and the sun is always shining there. I’m joking.

Unknown Speaker 0:46
Except when the hurricanes but don’t worry. I’m asking today’s guest expert and Ryan pool with over 20 years experience living in investing in Florida. asked me about hurricanes and insurance to before we get to learning about Florida. I’d like to say thank you to everyone who has come by and said hi, when you see me in public, I ran into one of our 17 listeners at Costco and we were discussing sadly how he’s getting his butt kicked in Sudbury, hence the selling and I told him the numbers look much better and the sunbelt states of the USA, no snow, no frozen pipes

Unknown Speaker 1:16
and whatever Sunbury so I can’t even imagine how cold things get to the plug in their cars there. I’m sorry, I’m so ignorant. There’s no rent control and Sunbelt stays nor LTB Hinze. Hence he booked a call with me. I’m always happy to book a call with any one of our 17 listeners and 350 past clients.

Unknown Speaker 1:36
Others are and to run into we’re at the Ontario landlord wash conference in Cambridge hosted by the lovely Kaley Andrea Taylor and rod.

Unknown Speaker 1:45
People came up to me and thanked me for being a source of news entirely revelant Rev. revelant. Relevant relevant to the Canadian real estate investor. I was speaking to one another investor who’s owed 175,000 in one private mortgage gone wrong. Unfortunately, they invested in the wrong investor who is the leader and host of the wrong networking group.

Unknown Speaker 2:08
You can probably see read between the lines if you know who I’m talking about. I told her literally I knew they were they were trouble. He was trouble. They were trouble. Because I personally knew one of the earlier victims, Tom Sullivan, who detailed his experience of loss on my podcast back in 2019. Tom Sullivan, Google, it shows my real estate investing show, it’ll tell you exactly what happened without naming names. Because nobody here wants to get sued, especially me. Due Diligence. So often would have saved so many investors a lot of money and stress. I just got off the phone with a client who’s in the middle of suing another person. Someone completely unrelated.

Unknown Speaker 2:46
From a very large key real estate network. Yeah, so yeah, so someone else is suing someone else over private money that’s not being paid. I know different. I have PTSD from cars come from con artists, which has simply fueled my analysis paralysis, and my forever search for the truth. For example, the YouTube algorithm suggested for me a video fact checking my favorite geopolitics analyst Peters I hand and one of my favorite gurus, Bridgewater founder, Ray Dalio.

Unknown Speaker 3:20
The channel is called money and macro. And I’ve been

Unknown Speaker 3:25
sorry, I’ve been watched it already. And it’s been awesome. I do love staying informed and learning about economics, austerity, why rich countries are not having enough babies. Japan’s rocky economic history. Remember, Japan was expected to surpass the US and Stearns up economy, but it didn’t. They’ve actually done quite poorly.

Unknown Speaker 3:45
Not that bad. I still think they’re what the fourth largest economy in the world. Point is I’m looking to learn. So I may leverage the lessons from history to make better investment decisions going forward into the future. Based on my research, it’s showing that the US will remain a top superpower in the world, if not the number one top hyper super mega power in the world. The US dollar is going nowhere, in like my lifetime, probably my kids lifetime as well as the world reserve currency. And combined with my experience of being on a landlord in Ontario, I’ve decided to deploy my capital south of the border, as the US government is investing heavily heavily in bringing manufacturing back to the USA. Some some stats are saying that the USA will double their manufacturing and within five years, even if it’s within 10 years, you know, their economy is gonna grow. There’s gonna cause more inflation and then and then of course their their dollar will appreciate. I think most Canadians I think most people in the world can appreciate. But you need more US dollars. You shouldn’t worry everyone should diversify at least a little bit to US dollars over their home currency because I don’t know of anyone outside of North America who would prefer to be paid in Canadian dollars over US dollars. Anyways, so yeah, yeah.

Unknown Speaker 5:01
We’re talking about in, we’re talking about 1000s and 1000s of jobs being being created in the USA, for manufacturing.

Unknown Speaker 5:10
And in a lot of these jobs or six figure jobs, and then also appreciate that a lot of these jobs will create four to five spin off jobs, you know, plumbers, dentists, waitresses, all the spin off businesses that go to support these 1000s and 1000s of new jobs. So we’re talking about 10s of 1000s of new jobs with each of these new manufacturing plants opening up in the States. For example, did you know that the world’s largest contract chip manufacturer chip maker, which is based in Taiwan TSMC. So Taiwan semiconductor manufacturing home is investing $40 billion in a chip manufacturing facility in Phoenix, Arizona. Doesn’t that sound lovely? Guess what? The price of a house and the average price of a home in Phoenix Arizona is the same as Calgary, Ontario. I love Calgary I love Albertans are such lovely people. But honestly, I’d rather visit Phoenix, Arizona then go to Calgary, and, and TSMC is they will be creating, creating 4500 manufacturing jobs 4500. And this is why all governments want manufacturing in their backyard. Because again, it brings off those additional four to five spin off jobs. So that could be another 16,000 jobs on the conservative side, talking 20,000 new jobs, just from one just from one employer. And this is Phoenix, Arizona, we’re talking about this is one of the fastest growing cities in the world already gives. It’s the it’s the recreational area, recreational property area for California. Right. So again, you know, anyways, whatever. So let’s flip back to Canada. Toyota, the world’s largest car manufacturer is looking for funds to build an Eevee batteries or car manufacturing in Cambridge, Ontario. But unfortunately, Cambridge average real estate is $800,000 per home, that’s Canadian dollars. So that’s a lot more, that’s probably about a third more than a house in Phoenix.

Unknown Speaker 7:09
Unfortunately, the arguments are out of funds, the Americans can simply just hit hit harder, they have much deeper pockets than Canada. Hence Toyota will be looking to Michigan, North Carolina or Texas. Follow the money my 17 listeners where there are 1000s upon 1000s of high paying manufacturing jobs, humans will move there to make more money for lifestyle and affordable and affordable housing costs.

Unknown Speaker 7:33
For example, I can buy a suburban three bedroom, two full bath, two car garage and most top towns

Unknown Speaker 7:39
and most top towns and sunbelt states in the suburbs, top 10 towns for about the same price that we pay for a home in Edmonton, Alberta. Again, I love Albertans I think you’re all lovely people.

Unknown Speaker 7:52
But I’d much rather visit the Sunbelt of the USA including Texas. You know, Alberta friends say Alberta is the Texas of Canada.

Unknown Speaker 8:02
I’m just gonna go to Texas. And of course, yes, the taxes and the rules are all much better in Alberta and Ontario BC this goes without saying. But again, if I’m going to fly, brother fly, so

Unknown Speaker 8:17
yeah, straight up. For me to fly to Calgary is the same it takes me to fly to Dallas. So

Unknown Speaker 8:22
I’ll choose I’ll choose warmer weather. Anyways, I also appreciate that it’s a it’s a buyers market right now and most of the top 10 towns in in sunbelt states. Also they have way larger populations with more diversified economies, and the vet. So to me the investment decision is pretty easy. The entire province of Alberta, the entire province of Alberta is 4.4 million. Right? I know that that number is a few years old, but just to be fair, the same The same year, good or Dallas eight area, so just one city, Greater Dallas area 7.6 million. So one city is bigger than the entire province of Alberta, right from from my research, the top landlord friendly sunbelt states and cities in the States.

Unknown Speaker 9:08
And then when you combine the fact that we can get commercial style mortgage financing, which is way easier than I’m used to getting, I know I’m often having to cough up financial reports for four or five, six different corporations when I get a mortgage, mortgage people hate me. Versus I just need to come up with a down payment. I rents need to cover my expenses and I can get a mortgage in the States. To me it just makes way so much more sense. And then for the listener, I’m not telling you what to do. But I do believe it’s in your best interest to at least get educated on what options are available in the USA before buying your next investment property. Especially if you’re considering buying in BC Ontario. We here at The Truth about real estate investing and we’ll be offering deeper dives. And we’re doing more so at our I O and meetings we’ll be discussing. By the time this comes out well November November meeting will pass

Unknown Speaker 10:00
asked where we’re gonna be talking about investing in long term rentals in Florida, Texas, Atlanta, upstate New York.

Unknown Speaker 10:08
And we’re talking and then we have Darwin zero flew, who is the owner, founder of Pinnacle wealth brokers, and he’s invested in hundreds of acres and recreational property in Canada. So there’s still lots of great opportunity in Canada. But you’ll notice that we’re, we’re talking less about long term rentals in Ontario or BC. And also in January, we’re talking about January, we’ll have a wonderful meeting as a friend of mine who has has been who’s part of starlight investments in the underwrote. And he may part of the team that managed 20,000 units. So he’ll be sharing how he analyzes markets and properties, and they’ll be in January. Understand we regionally kind of shut down in December. It seems everyone has better things to do to celebrate the holidays and, and talking about real estate. We also have Victoria Clooney coming up on this show, she’ll be sharing how she grosses six figures she generates over $600,000 per month in short term rental money from her motel in Nova Scotia, Canada. So that is real estate, but it’s short term. There’s the long term tenants see a theme here. owning real estate is absolutely still a must for anyone who wants to defend or grow their wealth. But ideally, again, avoid those investments where rent control or a dysfunctional landlord tenant board is involved. Right. You know, there’s there’s many people in Ontario BC who have not received rent for months or well over a year. So always consider that that baby at risk, worst case scenario, so try to avoid that if possible. onto this week’s show. Our guest is basically a Canadian as he grew up in Minnesota, near the border with with Manitoba. Ryan grew up north. And he actually were so where he lived was actually north of the vast majority of where I’ve Ontarians I believe he’s actually in line with basically Thunder Bay, which is in like north of over 90% of Ontarians so he knows hockey he knows snow he knows blackflies and cold winters that he smartened up he moved to Florida, and participated in some roller coaster markets, including the financial crisis and the housing market crash of 2007 2009. Around we’ll share his experience and how he made a killing back then. Ryan is well beyond just being a realtor. He is the founder and CEO of real trade Inc, which is like a Facebook marketplace for real estate professionals. And so anyone anyone around real estate, so it can be trades people Hey new people, fence people, home inspectors, appraisers, real estate lawyers, realtors, of course. They also house host real estate listings, which is a smart diversification of play for any American realtor who wants to keep control of the listings versus the Zillow and Redfin that just rebrand all listings with their own agents. Anyways, on the Florida real estate side, Ryan recounts how he made money buying bad mortgages from the banks for pennies on the dollar back in 2009. And beyond. He talks about the current market inventory and demand situation, short term or hybrid rentals. Hybrid rental being a split between mid term and short term rental for example, rent midterm will be like a six month and then the rest of the time can be short term rental. This is a this is a new term for me. So Ryan explains what hybrid rentals are sounds fantastic. We talked about hurricane insurance and the changes to construction based on hurricanes based on changes to the code building code. So you want to make sure you pay attention to what year where things really improved, to make property safer for hurricanes. And we talked about landlord tenant laws and tax benefits. And we spend quite a bit of time on what’s fun to do in South Florida. Again, 30% of survey survey respondents asked specifically specifically for Florida, I think you know, we’re here for the people. And I give you Brian Poole. Please enjoy the show.

Unknown Speaker 13:48
Hi, Ryan, what’s keeping you busy these days? Hey, everyone, thanks for having me on. Man is here in the trenches with real estate. You know, I have my own clients, obviously, that I’ve been servicing. You know, for years, a lot of investors and obviously staying busy with real trade we’ve now launched we’ve been a little over two years, and we’re growing every single day of 1000s of users, not only agents but other service providers like lenders, title companies, attorneys and a lot of buyers and sellers using the platform so it’s it’s full on in the trenches, real estate 24/7 for this guy. And so you’re a realtor and an investor but obviously we’re other other hats you have your own real estate tech startup as well. Yep, that’s in the your dad.

Unknown Speaker 14:30

Unknown Speaker 14:31
I want to mention that I have a seven year old son and I’m actually coaching him in baseball. So six, seven and eight year olds is my weekends right with them. So but it’s so fulfilling. You know, I enjoy it. I know you have children too, and it’s very rewarding. If you’re selling yourself short, such as baseball, I see scuba diving, deep sea fishing and all these other. Yeah, and now he enjoys the outdoors like his dad. Ironically right now you spend a lot of time in the boat

Unknown Speaker 15:00
As you know, I’m a big sportsman. So I love you know, fishing. I’m a big free diver and spear fisherman and we do a lot of hunting here in South Florida too. You know, we got some actually a lot of public land here in Florida to do hunting. So turkeys, deer, wild hogs, we do all that fun stuff too. So

Unknown Speaker 15:18
telling us spearfishing, that sounds hard.

Unknown Speaker 15:22
Get stuck. That spirit goes that far. Yeah, the cost range. And you’re sneaky. You’re sneaking up on fish. Yeah. And I do a free diving too, because it’s actually

Unknown Speaker 15:32
the best day. You don’t have an air supply. Yeah, so you’re holding your breath. Right. And, you know, it’s actually one of the best things that I did is I took a free diving class about Gosh, it must have been about 15 years ago now and really teaches the techniques of breathing, getting your heart rate down, you’re kicking the right, you know, masks and fins to use. And that’s amazing, you know, once you learn it, and I used to scuba dive before it was like, wow, why was I having these big scuba tanks and having to fill them up and spend all this money in production? Yeah, yeah, it’s a big production and freediving you just jump in and you’re out there enjoying the ocean. And then spearfishing, which you have a spear gun, so it’s it’s you actually use big rubber bands that actually propel the actual spirit forward. And yeah, you have to get pretty close, you know, you can’t shoot really far underwater. But one thing about Florida is, you know, we’re very lucky here and so far, because we have really clear water. So it’s, it’s, you know, it’s it’s very rewarding to be able to see the, the fish that like from the top when you’re like 80 feet of water and dive down and haunt him as you’re going down. And then you’re getting great exercise, right? And then you get to come home with dinner. I mean, how much fun. But if you can see them, they can see you these really fish.

Unknown Speaker 16:43
Some of them are there. I mean, some of the fish obviously are smarter than the others. But yeah, you have some techniques where you try come right directly right on top of them, you know, and they have camo wetsuits or when so if you didn’t have camo wetsuit so that they break up your outline so they don’t see you is is is easily and then you use what are called flashers, which are actually like distractors were kind of their seeming shiny things in the water that are floating along with you. And they come and check them out. So it distracts a little bit so you can dive down and get a shot at them.

Unknown Speaker 17:16
It’s one of my biggest passions. And I mean, that’s one thing about Florida. There’s just so many cool things to do here and enjoy. And you know, it’s a great lifestyle. So I said before we’re recording the viewers degrees this morning. That’s 32 Fahrenheit. Is that right? Yeah, yeah, okay. Yeah, yeah. And I was out biking this morning. So I was up at 430 I had my bike on the road at 530. Yeah, it was beautiful. was like 72 degrees this morning.

Unknown Speaker 17:44
Right that 2020? Yes. Yes. Yeah. Yeah. And little Christmas in the air, which is perfect. So just got it’s so nice to ride around, rode about 30 miles this morning. Just beautiful. We’re very lucky. Like literally like, in the next couple of weeks that the full humidity will break and it’s just like someone turned a light on and it’s just beautiful weather now then until like almost through June.

Unknown Speaker 18:09
So this is why so

Unknown Speaker 18:12
listeners benefit. We sent out a survey what people want to know more about but us investing. Half respondents said they want specifically named Florida. So I immediately reached out to you, Ryan, because you’ve been in Florida for how long? You’ve been doing what I’ve been doing Florida real estate how long?

Unknown Speaker 18:29
2025 years, 25 years. Okay, I’ve had been active full time in real estate for 25 years, activist Natalie an agent partners in a brokerage owned a real estate asset management company. My own investment properties. Yeah, I’ve been living that for 25 years, I was way ahead of the curve. You know, obviously, we had this big migration after COVID. And during COVID It’s just I mean, it’s been phenomenal Florida, especially the last three years, you know, of the quality of people moving down the reasons people are moving down. I used to be for a lot of people were retirement right looking for second homes, or retiring. But now you know, you have a big migration of I mean, we’re getting people from California, New York that are actually moving here to headquarter, their business and actually raise families and all those good things. So they’re bringing a lot of that culture and you know, that expertise right from their different industries here and this is incredibly now West Palm now, you know, we’re becoming known as The Wall Street of the South. I’m actually looking, I’m looking at my office of my office window here are when looking at this big office building. And Goldman Sachs just took a whole floor out of that. So there, they have a big headquarters here. Ken Griffin, I don’t know if you heard about that. One of the biggest real estate plays in the world. He’s building huge estate here in Palm Beach, big hedge fund, you know, guy there estimating by the time he’s done $1 billion piece of real estate residential scuze me What is it a baseball park? What is

Unknown Speaker 19:59

Unknown Speaker 20:00
actually a big ocean fronts like he actually took about five different properties or wind and bottom over the last about 10 to 12 years and he’s combined them now to one huge oceanfront estate

Unknown Speaker 20:13
and then you’re gonna be estimate what his plans once these done right building is his home there it’s going to be worth close to a billion billion dollars

Unknown Speaker 20:22
you know

Unknown Speaker 20:28
do you say no to another a friend of mine, you know, you know, you know,

Unknown Speaker 20:33
have just listed a property to he took it off and then he’s probably gonna be putting it back on but a $250 million home on Palm Beach

Unknown Speaker 20:40
$250 million company golf course. It’s

Unknown Speaker 20:45
like its own little island. Even though it’s connected to Palm Beach Island with a bridge they said, you know, it’s its own island but yeah, yeah, there’s right down here. The Thick of It Real Estate. You know, luckily I moved right here in Palm Beach County, as we know, where Donald Trump has his Mar Lago

Unknown Speaker 21:03
are right here in Palm Beach actually by by his place this morning. You ever golf there?

Unknown Speaker 21:10
Well, he doesn’t have any golf course there at Mar a Lago, but he has, he owns you know, he owns like four different courses here in South Florida. Oh, I’m sorry. What is Mar a Lago? I thought there was a golf course there it actually Mar a Lago is like a beach club. So it’s actually on the ocean right Mar a Lago was on the ocean and it goes from the owning the ocean to the intercoastal you gotta come down here and I’ll bring you by that we can not only good drive by it, but the cool thing is, is see it from the boat because it goes to the intercoastal and then we can go around and see it from the ocean side and see as beach clubs so interesting, because I’m confused because like the news was always saying, Trump’s at Mar a Lago when I was they showed footage of him golfing.

Unknown Speaker 21:46
He’s got his golf club here in West Palm Beach, too, right? The Trump International Golf Club right here, which is just back over the bridge and then on the mainland, but you know, Mar Lago itself is on Palm Beach Island. Fascinating. Is that whether you hosted a live tour event, we’re getting we’re getting really sad.

Unknown Speaker 22:03
Anyways, another golf course down in Miami, right? He has a has a golf course turned. I think it’s Turnberry that he owns down in Miami

Unknown Speaker 22:11
that they had the big live tournament, which was a big shake up here because you know, I don’t know if you knew this, but there’s tons of pro golfers. golfers. Oh, yeah. I mean, yeah, I mean, you know, Jack has his home right here in Palm Beach Gardens North palm area. I mean, Greg Well, the young guys like no yeah, like Justin Thomas and his good buddy. Get names right now.

Unknown Speaker 22:34
Yeah, yeah. Jordan speed. Yeah, they all have homes here. You know, Tiger Woods just built his big expensive course their private course up there and hope sound and a lot of them you know, golf there. I mean,

Unknown Speaker 22:46
I used to golfer or you know what I mean? And I got out of it. Now. Now golf stands for Game over. Let’s fish.

Unknown Speaker 22:55
You know, I joke that my golf game and my bowling score. We’re about the same about 100. And I just couldn’t take it anymore.

Unknown Speaker 23:08
Oh, so let’s talk about give us a market overview are things now so for? For anyone who’s new to meeting Brian reading around for the first time? I think we might have picked up a listener to be on 17 listeners now. So this is your third time back on the show? I think it is. Yes. And last time you were telling me because that we’ve focused a lot on how now is different than back in. Oh 7209 during the financial crisis. Let’s touch on that. Like let’s touch on that like rootlets Can you like you lived through it? You were you were doing everything you were an asset manager you were an investor you were real. You weren’t sure you had ownership in a brokerage? Like through a period that wasn’t the world that it was ended and you were like Ground Zero pretty much for like real estate devastation. What was it like then what’s it like now?

Unknown Speaker 23:58
Yeah, well then you know obviously you know there was a big reasons for the crisis back in oh eight right it was the mortgages you know there was they had a point where I remember in oh eight you know right at the peak right before the crash end of oh seven beginning of oh eight I remember you know there were teachers buying second homes within 10 miles of their own home with no money down on a you know, a negative am loan where they were cash flowing from the start because it was a negative am and I was like wow, how could this last this much longer and it wasn’t too much longer after that you know, the things crash because you know everybody had was highly leveraged right with their loans and you know all of a sudden the prices you know sudden started to fall you know, especially right what’s what’s negative and is that where you you get paid money when you close? No the negative and means that you’re not paying anything towards the principal so it’s actually adds on to the principal every single month. Oh, interest only Yeah. Oh, yeah. Okay, negative amortization. So actually, you’re

Unknown Speaker 25:00
It goes higher every year your balance every every, every single month, you know, and I was alone, no money down. No money down. You know?

Unknown Speaker 25:12
I know it was, it was incredible. And there was, you know, obviously these lenders got creative at the peak with that product when the prices got so high, and they were created that product. And that’s when I kind of knew, you know, things weren’t, you know, myself looking that great. And, yeah, and then we obviously had the crisis. And, you know, everybody overnight, you know, sudden their homes were worth half of what they paid for or less, you know, and it just happened so fast. And I remember sitting there in real estate, and I was stressed out about bout it, I had a lot of clients, I’m like, man, what are we going to do? And one of my good friends bill, by now you’re at very forward thinking real estate guy said, you know, this thing’s has to shake out some way, like you’re gonna have all these foreclosures, you know, how’s this gonna work out? And we’re sitting there, then one day, you know how to how to listen, I had a basically hedge fund Call, call me and say, Hey, can you do a BPO for this property we have, and you might get the listing, and I just, you know, my sense to start speaking to him, and I asked him, like, what are you doing? He’s like, Oh, we’re a hedge fund, and we’re buying non performing loans, you know, and we just need to know what this property be worth, if we got it back and start with a BPO. A broker price opinion,

Unknown Speaker 26:21
comparative market analysis, I guess? Yeah, yeah, we called CMAs, comparative market, that’s when all of a sudden, like a light went off, I was like, wow, this is how it’s gonna work out is these big hedge funds are going to go and buy these loans. From all these banks, these regional banks, and they’re going to buy them at big discounts are going to, you know, get them back. And then they’re going to, you know, do whatever, whether they rent them, or they sell them, well, they’re all wanting to sell them. So they would go to the borrower’s, they bought these notes, let’s say to us, for instance, like a note for, you know, $300,000, the house, you know, the mortgage was, well, the house now is worth, let’s say, a buck 50 or less, maybe 100,000. Well, they were buying the notes for like 10 cents to 15 cents on the dollar. So they were buying the loans for like 30 to 40 grand, you know, and then they would go to the borrower and go, Hey, you know, we’re the new mortgage holder, you can either a make your payments of 300 to 300,000, on the loan at this interest rate. Or if you want, you haven’t paid in six months, we could make this whole thing go away, you could sign the property to his deed in lieu of foreclosure, will give you a full forgiveness of debt, no deficiency, and just like the walkway, like this thing never happened. And that’s what they did, or when they did that. And a lot of times, they would give them cash for keys. So they even give them five grand to buy a new plate, you know, to go rent a new place. So they’re forgiving the entire mortgage and giving them money. gave him money, or one. Because you gotta remember, they got the notes at like, 3040 grand, and the house is, you know, somewhere between 100 and 150,000. Right. And the note is the mortgage like they are now. They’re now the lender. There the lender? Yeah, yeah. So they were like either a, okay, bring current, you have all these, you know, late fees, and your house is worth, you know, X amount half of what you paid for it. And they couldn’t do that, which almost no one could write. But I was wondering, like, how is this thing gonna shake out? Like, how is it like, you have all these people that are going to be in foreclosure, and no one wants to pay on their house? Right? Because there’s worth half of what they paid for it? Well, that’s how it worked out. And, yeah, so I got relationships with these hedge funds that were buying these loans. And then it just grew into that. And the one one time, or when I had 250 million under management, just myself, you know, that I was helping these banks, you know, through that hole for these hedge funds through that whole process? And sorry, the 250 million is that the value of the properties is that yeah, well, that was the value to buy the notes. Yeah, that they were buying notes under under management, you know, that they were buying the notes, and then seeing them through foreclosure than liquidating the disposing of the assets. Right, right. Yeah. Do you still do this? Now? So that’s that dried up, unfortunately, which does not mean it’s a good thing. It was a sign the economy, you know, was progressing, right. And it just got way more competitive. The hedge funds got out. And now loans, you know, the way the market is right now they’re trading at like, you know, face value, right.

Unknown Speaker 29:18
Okay, so not any yeah, there’s not much money to be made in the note, but you can get you can, I mean, don’t get me wrong, you can hunt and find some good deals, but like, huge, like bulk deals, which those, you know, hedge funds needed to make the returns thereafter. Yeah, that doesn’t exist. Like, you see, when you say bulk deals, how many markets? That’s the thing. It was an interesting business or when because, you know, basically, these hedge funds were were bidding on these big portfolios of loans. So they were, you know, buying 100 200 loans at a time. So, yeah, and the average investor right, like let’s see, if you were a note investor at that time, like, even bid on those those those loans would be very difficult because they were only traded in a couple of different trading.

Unknown Speaker 30:00
rooms on Wall Street that have access to them, right? Ironically, it was some of it like, you know, Bear Stearns, guys that started these funds buying the notes. Guys that had run up on the other side got it coming back on that side was Wall Street guys are pretty sharp, you know? And so yeah, so it was like, you know, it was kind of a, you know, say like an old boys network, but there was only just a few people that were bidding on those loans. And, yeah, there was all these regional banks, right, that were just like, hey, we can’t even we don’t even have the manpower to see these foreclosures through, you know, we can’t spend this much money on an attorney’s to go through the foreclosure. So they just wanted to get those loans off their books.

Unknown Speaker 30:39
No wonder everyone hates Wall Street.

Unknown Speaker 30:42
It is It was incredible. But anyway, so that worked through right, I did that. And we service these these funds. And not only were they buying loans, and then they started buying other distressed assets, like short sales and foreclosures as well. Right. And but yeah, that just got competitive. And then I, you know, obviously got back into general real estate, and did that and worked for some developers selling some new construction on that came back. And then, but then I saw the writing on the wall with tech, right? I’m like, Man, I have to get into tech. That’s where the industry is going. And then, like I said a little over two years ago started real trade. Tell us tell us, what was the cause? It’s not just by doing this hack, you’re trying to solve a problem? What is the problem you’re trying to solve with real trade? Yeah, so the big problem is, you know, as an industry insider, right as an agent, you know, the way that Zillow basically these large portals like Zillow, Trulia, I’m not exactly sure how it all works in Canada, but they here in the States, you know, us agents work really hard to get our listings for properties for sale. It’s usually personal relationships, right? Usually you have to meet your client on the golf courses, take him out to dinner, which is fun, which I enjoy, but a lot of work and time and money and effort. And then you have to pay money. So you get the property ready for sale, you sign a listing agreement, and then you have to pay money to your local MLS boards, just for the right to offer that property for sale. It’s not cheap, it’s expensive, okay, then you upload that data, the photos that the properties for sale, you offer the cooperating agreement to the other broker, the buyer’s broker and you put a property on the market, right? Well, the crazy thing is the MLS boards, then take that data, and then they sell it or give it to these online portals, like Zillow But here’s the crazy thing is they actually covered the listing agent. They don’t let the public know who they are, right. And then they make the agents now bid against ourselves, for the right to talk to buyers and sellers offer own data. So

Unknown Speaker 32:37
that was a huge problem. Because number one, the agents aren’t getting the best data, right? They’re not getting the best information. And it’s in basically agents, it’s almost impossible to build an online presence of anything lasting, because you can’t through these online marketplace where everybody’s going something like well, what if there was a different way to do this? You know what?

Unknown Speaker 32:55
Exactly that they can protect their brand and build an online business. And then the the buyers and sellers can go directly to the agents that they want, whether they want to go direct listing agent or find their own buyer’s agent. Right. So that’s pretty much the impetus, the problem we wanted to solve. In the public Joey my experience is public generally doesn’t know when they’ve been does that happens here to not know they’re sold as I need. It’s like a piece of red meat or when you know, they’re sold as lead in Zillow, everything gets baked in the price, right? Because think about it like the ages now we’re spending more money to talk to more buyers and sellers to Zillow, so they gotta charge more commissions. You know, it’s, it’s all gets passed on at the end of the day to the end consumer. So yeah, I wanted to solve that and then not to save all the other periphery businesses, right that you need in a real estate transaction. You’re gonna need lenders you’re gonna need inspectors, appraisers, contractors, like there was nowhere dangerous, you know, all those great business refers. I was like, wow, there’s no place for the public or the agents to network with these service providers. Right real estate, it’s just so fractured. And I said, you know, what if there was a way for everybody getting connected, so that’s what we did is we created an online marketplace, a different model than Zillow. And we merge it with a social media component. So I tell everybody, Zillow, different ways. LinkedIn for everybody looking with real estate. Yeah, yeah. So we got lenders there. I mean, you know, we got Scott Dillingham with with Glen city just signed up which he’s helps a lot of foreign buyers especially Canadians down here in the US, he’s on there and then like I said, we got great attorneys that you’re gonna need right title companies that can handle foreign transactions we have out on there and then of course agents like myself is on there obviously our way that specializes in helping with foreign investors. So yeah, it’s it’s pretty exciting. And you know, we want went from zero to now we got 1000s of users, you know, from all over the world using the platform and you know, 1000s of agents and other service providers on there, too. That’s amazing. Like your you got a business that supports your community. Yeah, yeah, I’m pretty good. As you know, real estate. At the end of the day, it’s still like

Unknown Speaker 35:00
Yeah, relationship business, right. So you make those little tweaks online, right? You make those little connections online. And then you get to know that person in real life right and speak on the phone. So to remember, kind of like the kindling on real trade is you can find those connections, and then build those relationships on your own later on. Yeah, I always tell people in real estate,

Unknown Speaker 35:20
or what brokers they work with, I’m like, I don’t even know. I’m working with this individual.

Unknown Speaker 35:26
You know, at the end of the day, I tell them, Don’t get hung up on brokerages. It really comes to that personal agent. Yeah. Same with the lenders, you know, same thing, right? It’s it’s that personal, you know, service that they’re gonna give to you and then expertise, right, that they know that market, they know what’s happening and can put you in some areas, right, that have some growth potential.

Unknown Speaker 35:47
And now, how is the Florida market today? So we’re recording this on Halloween? I know I love it. You want to get it? For Atlanta, I should have dressed up. And then we have cultural distance differences between Canada the US? Yes. Do Halloween, trick or treat and all that? Oh, yeah. I got my son or what I’m bringing them trick or treating tonight. He’s actually going to be a dinosaur with a cowboy riding them. They’re crazy. They have like this blow of dinosaur and then he.

Unknown Speaker 36:12
Yeah, I’ll post the pictures on social media. Oh, definitely. You’ll see that. I love Halloween. I love people posting pictures of the kids in their Halloween costume.

Unknown Speaker 36:22
Celebrate there too, right.

Unknown Speaker 36:25
My son My son is Pikachu. My daughter some sort of which.

Unknown Speaker 36:30
I love it. Yeah, they look really ridiculous standing next to each other. Because my daughter is more like a not nice looking like a mean looking witch not like a Yeah, like a cartoon, which

Unknown Speaker 36:42
is cool. She said lady devil. I don’t know. Whatever.

Unknown Speaker 36:48
The kids love it. I mean, you know what? Truth be told I eat some of that Halloween candy myself. So

Unknown Speaker 36:53
my son brings I might take some away when he’s not looking for the stash it to the side.

Unknown Speaker 36:59

Unknown Speaker 37:01
it is Halloween? What’s What’s the state of the market in in Florida right now. Specifically West Palm. So ya know, I can I can speak to all of Florida plastic, fantastic food, and then also West Palm in particular areas, you know, South Florida, right. So right now the home prices here, I’m actually looking right now from September of last year are up 3% over last year, up over last year, which is one of the you know, a great indicator of South Florida. And yeah, at the same time, the number of homes, you know, Rose that’s overall condos and in homes, homes, Rose 4.1. And then the number of homes sale Rose 3.2%. So, I think that’s one thing that here, you know, Irwin, that I want to speak to that, and I’m sure it’s similar probably in your market, too. But um, you know, our inventory, right still remains low. And there’s, I think a couple of indicators to on that, which makes it challenging, right? Because there’s a lot of buyers out there going to cost the markets gonna crash, you know, the prices are going to come down and things are gonna happen because the interest rates are higher. But the reality is, you know, there’s a lot of a lot of owners in our homes right now, that locked in low interest rates. Right, especially COVID explain that, because I didn’t even understand that either, like mortgages in the US are locked for locked in for 30 years, as in the rate is locked for 30 years. Yeah, yeah. So because it’s, you know, it’s, it’s completely different here about 30% of danger. So do variable. So floating debt 70% A lot of investors during COVID. I said, Listen, the interest rates were got down in the twos, like leverage that for 30 years, lock it in for 30 years, you know, if the interest rates go up, and he’s price go up, you guys are gonna be golden. Right? And, you know, some did took advantage. Some didn’t like, Oh, we’re gonna wait, we don’t know what’s gonna happen with COVID. Right? And obviously, we had a huge spike from COVID. But like, yeah, so what happens is it those buyers, and the people that refinance, so the cool thing here, the states that we have here, when it is like you can refinance out of that loan anytime you want. Right, most of them don’t have a prepayment penalty. So, you know, there was people sitting on probably like 6% loans, you know, maybe six and a half before COVID. And then once COVID happened and the prices just when the loan, you know, rates went way down down into the twos. He said, Hey, why don’t I reply, like this, that makes total sense, no penalty,

Unknown Speaker 39:26
no penalty, I can pull out some equity. You know, what we’ve been talking about doing a pool in the backyard, I can pull out some equity and you know, my, my mortgage payments gonna be less and I got a new pool, right? So that’s what everybody did or like, like in the stats are about 75 80% of home owners did that here in Florida that had mortgages, right? They refinance them. So you’re at a point now where all these people did that, right. They believe they’re sitting on these low interest rates. So they’re sitting there in the Feds thinking, Oh, we’re gonna sit on the market by putting up these higher interest rates, but it’s actually here in Florida. It’s kept

Unknown Speaker 40:00
It’s kind of had the opposite effect, because now no one wants to no one wants to sell because, hey, they’re gonna have to go buy a home at a 7% interest rate, you know, they’re gonna have to pay higher property tax, right? Because the property values went up. So there’s a bunch of underlying currents there of why the the market is still increasing in Florida, and I think will continue to as well. Yeah, I wish we had that here. I

Unknown Speaker 40:24
wish more people took that one, too. It’s like rental rates are so great to see like, even like, wow, I am stuck in this low interest rate, rather than then selling that I could rent this home out, which are rental rates, whether it’s, you know, long term or short term right now, or are really well, too. So like the returns are just incredible for a lot of those people that purchased. Tell me about telling me what do you think is an ideal investment property? And then give me give me the numbers on it?

Unknown Speaker 40:51
Yeah, so I just, you know, I did a webinar on this.

Unknown Speaker 40:54
You know, what, two weeks ago, I think this is a big thing, right? Like, we all love ROI, right? Return on Investment. But like, you know, one thing I think for Canadian investors, where I’ve been speaking to a lot of them is they have what’s called ROI well, which is the return on life. So I think it’s something that you can that you get a great return on that you can get investment property, start building equity and get a return on your rental. But you can also use, right that you can come down here and use yourself. And while it would solve that problem, you know, in the advantageous would be, you know, like a short term rental property, like an Airbnb type property, right, that you can rent out, and you could come and use for a couple of weeks a year and have a good return. So that’s what I’ve been seeing investors doing here. And I know there’s a lot of things out there that you know, short term rentals aren’t what they were, you know, a couple years ago, but here’s what we have here in South Florida, particular in Palm Beach County. Okay, is we have a, we have a very, you know, low hotel,

Unknown Speaker 41:50
basically supply, right, like here in West Palm, I’m looking here in downtown, there’s just a handful of hotels downtown, you know, people can come here and rent a hotel. So where are they gonna go? Well, they still want to come down here and vacation. And that’s why the short term rental market here is still very hot, still some great vacancy rates, right? That they’re getting. So like, you know, let’s say, You’re, we’re in West Palm Beach, okay, and everybody has Palm Beach islands, right across the way, and we’re Donald Trump players, and we’re talking multi multimillion dollar homes, well, you can still purchase a single family home here, near downtown West Palm Beach, in that three to $400,000 range, right? So let’s see the first three to $4,000 range. And you could have an average, right, have a short term rental, you know, rate of, you know, five to $6,000 a month that you would have on that home. Now, you’d have you’re caring. So that’s a short term rental money, especially long term rent, not long term, long term rental rate, it’s going to be your short term rental rate is going to be about double right of what your long term rental rate. So you’re probably looking on long term rate probably around, you know, 2500 to 3000, maybe $3,500 a month, if you really make the property really nice on a rehab. But yeah, so you’re talking considerable. So think about that, those numbers for a second, right? So you have that, then you have your real estate tax, which are usually going to be you know, around 2% of the, you know, assessed value. Now, the assessed value isn’t exactly the same as the sales price, which I want people to understand they take the whole neighborhood, they back out your closing cost and real estate commissions and stuff from the, from the sale, because they’re not going to tax you on that number, right. So it’s not exactly the same as the sales price. So you have about, you know, I would say about 70% of your sales price. And then at 2% is kind of a good, a good equation to use. And then you have your, your, your insurance, right that you have on home. Now, it depends on the home, your insurance, or when I want to people know, like different homes have different insurance, whether they’re into like a higher risk flood area, the type of construction, the type of the roof, you know, what kind of plumbing it has, you know, those those insurance underwriters look at a number of factors when they insure but I would typically I would say like on a, you know, on a, let’s say, like a three to $400,000 purchase, you’re probably talking anywhere like you know, 3000 You know, maybe $4,000 a year, you would factor in that. Has it gone up? Does that and we talked about before like is west palm is generally spared from hurricanes.

Unknown Speaker 44:30

Unknown Speaker 44:32
we haven’t had a major hurricane hit here since like, you know, the early 1900s. Right, knock on wood, you know, but um, you know, as far as the West Coast, obviously, they’ve they’ve gotten a little bit more, you know, Hurricane action there too, but ironically, when I did the webinar, right with this insurance, big insurance

Unknown Speaker 44:51
broker, you know, one reason for the high cost and insurance here that affects like everywhere, I’m sure different places in the country is like the inch

Unknown Speaker 45:00
You’re right. So you have like different insurers here for home insurance here in Florida. Well, they actually buy insurance too. So they’ll actually go get reinsured by another larger company. Now it’s these larger companies now, like the Lloyd’s of London’s of the world, large global insurance companies, where these regional insurers are getting their insurance. Well, their prices have gone up too. And they’re looking at the forest fires in Canada, they’re looking at the flooding in Europe, like they’re looking at all these different factors, right? When they’re doing that, so it’s not all just localized as well. So it’s there’s a bunch of moving parts that go into it, but it has gone up, you know, the insurance here in South Florida has gone up anywhere from you know, 40 to 60%. You know, what period of time over the last year.

Unknown Speaker 45:47
Last year, I know, but I will say this, like, you can’t just you know, keep going up at that number, right, there’s going to be a market and they’ll just be more people moving the market. Now we do have what’s called Citizens insurance, which is kind of like a cooperative, that a lot of people buy into where they get a more purchasing power on their insurance. A lot a lot of people use for that as well. And so there’s going to be different options. And I spoke to the insurance agent, and he predicted that the insurance prices will come down, you know, back down over time. But he said it probably stay flat here for the next couple years. And he could see things coming back down. That’s good to hear. Because now I know a lot of people still like Florida. Yeah, 50% of our survey respondents wanted to hear about Florida. I mean, want to have insurance right now, if you’re looking at a condo, you know, white knight, one nice thing about condos, right? Is they have they have their own insurance that the whole building basically chips into so it’s a little cheaper. And it’s in your it’s in your HOA fees, right? Your structural insurance, which is your homeowners association fees, which you pay every month to maintain the property and buy insurance. And usually they include, you know, different things like

Unknown Speaker 46:57
you know, cable and stuff with that as well, because they get a like a group rate on cable and internet and things like that. For listeners. For the listeners benefit Hoa is a homeowner association fees, we call them condominium views here. Yes. I think it’s exactly the same. Is there? Is there a particular age of building that you’re kind of looking for? Because I understand codes change have changed through time and codes have changed to you know, so. So the buildings are built appropriate for hurricanes? Yep, yep. So a lot of things changed in Hurricane Andrew 1990 to kind of keep that in mind is a lot of the codes in Florida changed at that time. Right. So that was the one that hit, you know, south in the upper keys down by homestead. That was a 1992. And a lot of things changed with that. So I would say you know, if you’re looking for like quality construction after that time, they changed a lot. And now, you know, the quality construction even since the 2000s had been really, really great, early 2000s When you started getting a 70s and 80s. Kind of I mean, everybody remember what happened with Surfside, you know, that condo that collapsed in Miami? I was big tragedy. That was a few years ago now. You know, 100 people died. Turns out like they were saying like, you know, there was a defect in the quality construction of why that building failed. You know, the way they they built the pool and the underlying foundation of the condos why that fell.

Unknown Speaker 48:24
It was specific to that builder wasn’t not because I don’t believe the other area condos had that same issues. It was that one builder, you know, they had issues. Now they know that the local in the state government did pass a regulation called regulation for D, where they’re now if any condos are 25 years or older. If there’s closer the coast for 30 years and older, they have to go through what’s called a structural integrity test. So you know, it’s actually needs to be done by certified Florida engineer architect, and it’s basically a study now that all condos have to go through to make sure that this doesn’t happen again.

Unknown Speaker 49:01
You know, and if there is issues, then they’re going to have to address them. Right. I mean, so. Yeah.

Unknown Speaker 49:08
So Brian, what what areas do you like for investment? We’ve mentioned West Palm several times. Can Can you listen to know where it is in relation to like the, you know, we’re all Canadians go like Orlando, Fort Lauderdale. Where is it in relation to this?

Unknown Speaker 49:25
I really like West Palm Beach, you know, in relation to other areas in Florida is okay, we’re about a little over an hour car ride north of Miami. So I’d say we’re about you know, you know, 45 to 50 minutes north of Fort Lauderdale, right is West Palm Beach. And the thing is, here’s just a less population density, but we have the same exact weather as Miami Fort Lauderdale, which is a beautiful South Florida weather. Now if you go just north of here, Erwin, let’s say up to like, you know, Stuart, a little north of there. It’s a different wetter weather pattern. We’ll get a little bit cooler in the winter and the

Unknown Speaker 50:00
The ocean water isn’t quite as nice. One thing that’s really advantageous here, which I love is the big outdoorsman. And fisherman is the Gulf Stream, which is like a warm river current, the ocean follows the east coast of Florida. And this is actually where the closest that comes to shore is right here, West Palm Beach. That’s where we get those beautiful, like I was mentioning, like 100 foot visibility days, and then it kind of bounces off West Palm and starts to go off shore. So that affects the weather, right? You have that warmer water where that air is coming over. And that’s what’s bringing that South Florida, you know, temperatures, right. So I’m saying you’re getting all the benefits of Florida, all the great weather, but without the big population density and craziness, which is Miami in Fort Lauderdale, which I love going down there. Right, we have the bright line, high speed train now, which we spoke about in the last podcast, which, you know, I can be down to downtown Miami Brickell in an hour and a high speed train and have a beer or cocktail and food while I’m going down there. Right. So and then come up here to beautiful West Palm, which is, you know, like I said, that now is becoming known as like, you know, the billionaires and millionaires, you know, here that are moving here, and just have a really nice quality of life. They all want to play with the prices here like West Palm compared to like, in Miami, or like, you know, considerably less right because you just have a higher density density down in Miami than you do, you know, in in West Palm, right? So, so you mentioned like a single family home near downtown’s. Like three to 400,000 How much would that be?

Unknown Speaker 51:33
Most be closer to Miami. Yeah, so that would be like, you know, probably six to 700,000 Maybe more. Maybe 800,000.

Unknown Speaker 51:43
If you want to be like near downtown Miami, you know, Miami area.

Unknown Speaker 51:48
Obviously too loud for me. Yeah, I mean, mine is fun, like for a day or two. But to live there, the traffic’s tough. That’s another thing in West Palm two that we’re getting here. You know, like, remember, we’re getting a lot of northeast, you know, people moving here, California and we’re getting foreign, some foreign, you know, buyers that are buying to move here too, as well. But we have a lot of people from South Florida that want to come up here, right escape the craziness. So we’re getting to kind of from different directions. So that’s why I’m saying you know, as far as on the equity side of why I’m more bullish on West Palm and I am in Fort Lauderdale Miami is because of that because we have more room for growth. Last time I stayed in Miami is where they’re over the weekend. And the noise was from like, you know, like 2am people revving their Lamborghinis and other supercars

Unknown Speaker 52:38
you know, you’re in some kind of conference going on like the Bitcoin conference or something like that. No, I wasn’t that wasn’t on that at that time. But yeah, just just the flex cars that you see there. It’s not like like in big cities where I’m used to like in Toronto for example, I’m used to hearing sirens in Miami it’s $300,000 cars

Unknown Speaker 53:00
like I said, I mean I like Miami like I said but in small doses so it’s just nice to be able to go down there and experience it and and come up with this beautiful you know relaxing area which is you know, West Palm Beach area Palm Beach County. I want to speak to to like there’s different areas Palm Beach County so you have like you know, West Palm which is like our metropolitan area right where we have all these you know, the great culture we have, you know, great museums here like we would have in any metropolitan area, but then we have a lot of outline smaller cities, like Palm Beach Gardens, Jupiter you know Boca Raton Delray Beach which are you know, it’s kind of neat each each city Each area has its like little flavor right of what they kind of, you know, like Jupiter’s more known as more of like a fishing area right in a watersports area. Yep. And like golf courses are to believe it’s sort of in Jupiter, Florida. A lot of them a lot of golf court actually, all Palm Beach County is one of the highest density golf courses, you know, in the United States are on like, per area of number of golf courses. It’s, it’s a lot. You know, it’s a lot. And then, you know, like Delray Beach is this very kind of hip, like, art, kind of, you know, a lot of art festivals, a lot of artists in the area, kind of like bohemian style. So you have all these different kind of cultures and all these little cities that are very close together. And then you have downtown West Palm Beach, that’s anchoring them right. But then I want to speak to this as he’s crossed the bridge, and then you come to Palm Beach Island. Well, that is its own entity. That is like, you know, you’re stepping back in time to some kind of European, you know, very wealthy area, where we have these beautiful estate homes and bowtique shopping and all these great, you know, world class restaurants.

Unknown Speaker 54:49
And that’s all right here. It’s not like you’re like you have to drive some you know, some far destination to get to Palm Beach Island. You know, it’s literally across the bridge.

Unknown Speaker 55:00
So so for Kenyans coming down to visit you how many are? How many are buying purely for investment? Are they? Are they doing mixed use, like return on life? Like you’re saying?

Unknown Speaker 55:09
I would say I would say about 70 80% of them are doing the return of life type investment that I’ve that I’ve been working with. Yep. I have I sell a lot to just strictly investors. I mean, I’ve closed or within the last two months about about four different multifamily projects, right, that have investors that have closed, you know, multifamily properties, which, you know, that market has continued to be, you know, you know, I’m still bullish on the multifamily, you know, multifamily market down here, but the rents that that my clients are getting are just incredible on an annual basis, and, you know, to become popular here to like six month rentals as well. So it’s kind of like a hybrid in between short term and long term, your six month rentals, you know, you can kind of thread the needle in between the short term rental price and in a yearly yearly lease. Interesting people. Yeah, doing six month rentals. And then another big rental option here, because you have all these corporations now, right, that are moving here, headquartered in like Goldman Sachs and Citadel and these other large funds, well, they need corporate housing. Right, so there’s just this big need for corporate housing, you know, down here, where you have a corporation that will show rent a unit out, right, and they just want to be able to sublease it to their other corporate, you know, their, their clients, right, that need that need space? furnished? Yeah, they need to furnish. Yeah, so I have clients that are doing that. Another great rental option two is, you know, renting to the health, health industry, healthcare industry, nurses, there’s actually platforms, now I just spoke to them and have that they just made a profile on real trade called Red Door, where they specialize in just getting traveling nurses and nursing staff into, you know, into properties, and you could list your property on with them. And then, you know, the professional nursing staff, you know, that’s going to be rented and their numbers are higher than you could get on a, you know, on a on a yearly lease kind of in between like a, you know, a short term, you know, rental or, you know, a long term rental. So, there’s a lot of options, you know, that, you know, that people can use as far as rental strategies, you know, that, that the big thing is the exit strategy, you know, we’re still projected here, you know, anywhere from I mean, just very conservative in a run, like, you know, five, you know, 5% growth, like, like, set even last this since September. We’ve been at like, 4%, you know, which is incredible, which is bonkers. Because like here, most of Canada, things are slowed down significantly, unless you’re in Calgary.

Unknown Speaker 57:41
Because, yeah, because their housing is much more affordable compared to Ontario or BC. Like I mentioned before, before, you know, a sub a townhouse in the suburbs is 800 grand in the Greater Toronto Area, versus like, it’s a pretty big house in Calgary. Yep. So things a little bit nutty here. Yeah, we talked about like, yeah, you know, to help me understand a little bit the Toronto market. I know you obviously you have the lake, right, that’s pinning you in a green area, right, that comes kind of comes over the top of you from urban sprawl. Yeah. Urban sprawl. So, which, ironically, you know, kind of what we have here, we obviously have the ocean right here in West Palm. But then if we go just further west, and we get into

Unknown Speaker 58:23
Everglades, I mean, you’re not gonna be draining that, you know, I mean, there’s big environmental thing. You know, Everglades is great. I mean, it is, if you ever been there visited the amount of wildlife and seen it in person is incredible. It’s beautiful. It’s beautiful, right? So they’re not going to so we’re kind of like same similar swap, it’s probably hard to develop,

Unknown Speaker 58:42
or develop well, they drained, they did drain some of it, they at one time tried to now they’re turning it back into more wetlands. So there’s like big huge, you know, projects that are going on for that actually. Super cool. And then I think, I don’t know how much you’re familiar with, with the the headwinds we have here and can’t nontariff specifically, like we have about eight months data hearing for non payment of rent, for example.

Unknown Speaker 59:08
Yeah, we have rent control, we can only raise our rents.

Unknown Speaker 59:12
I was speaking to a couple of investors that I had, and they said Ryan like, yeah, we can only raise our rental a certain percent percent, three and a half percent apiece. Does that make sense? Yeah, I said to people all the time, like, you know, Ryan, you’re a smart guy, but Max salary increase is two and a half percent. Yeah. Here’s the contract Sign up now.

Unknown Speaker 59:32
That doesn’t keep up with inflation.

Unknown Speaker 59:36
Which is why we’re losing money. We are losing money. Yeah, yeah. No, I mean, yeah, we don’t have that there. I mean, that’s one beautiful thing is like, you know, we saw rental increases and we’re still seeing them, you know, rental increases, you know, especially the last you know, obviously, since COVID. But even now, like, I’m seeing me get ready or when we’re seeing here not like, like in super high end areas, but I’m

Unknown Speaker 1:00:00
Scenes studios like, like Lake Worth Beach, which I have a lot of investors by now, which just south of west palm right? Studios going for, like, you know, 2020 $200 a month on an annual lease, and then you know those things furnished, right during the season, you’re looking at, you know, four to 5000, you know, dollars a month for, you know, seasonal rentals. So,

Unknown Speaker 1:00:22
you know, little studios or small, you know, this one that I just did that just, you know, my client is rented out, we’re talking like four or 500 square feet. Oh, okay, a little bachelor, we come back to our apartments here. But, and that’s the thing is like, you know, they’re just not, you know, the rent rental inventories is really low here as well. So, you know, people want to be down here for the season, or just need just a place and you’re young professional. That’s kind of what the market is now, right now. Big news up here as well. For example, British Columbia just came out with an Airbnb ban, basically outside your own home, or municipalities under 10,000. Population. I know New York City did something similar. I use New York City in New York State. I’m not American, and I don’t follow it that closely. Yeah, I heard New York City, New York City, and then anything on the horizon for Florida. last poem. We I mean, me, they tried to ban short term rentals here, like in this market, especially in West Palm. I mean, there might be a few areas in Miami, like, you know, I know in South Beach, like you know, the homes there. They, they’ve never been able to do short term rental there. That’s kind of, but it’s like an art car and just although it’s an HOA or is that the government? No, that’s the local minimums municipality, they’re in that area, in South Beach, but like, here in West Palm, they’d be shooting themselves in the foot because there’s just not enough hotels for the people to stay. So like all the commerce of all the people here on vacation, spending money here. It just wouldn’t make sense. I know, you know, like, I know, the mayor here in West Palm. Personally, you know, he’s, he works a lot with this, you know, accelerator that I’m involved with the real trade went through called 1909. And yeah, they they’re very pro development and no real estate restrictions. So say,

Unknown Speaker 1:02:06
as I mentioned, to just get a hearing, to dispute a non payment of rent is eight months. And hear up here in Ontario. What if I say I’m your tenant, I stopped paying rent.

Unknown Speaker 1:02:17
What’s what’s what’s next? And I refuse to pay rent. So if your legal plans to catch up? Yeah, so if you’re late, you know, if you’re, let’s say you’re late two weeks, you can put a notice, okay, on their door, right to vacate in 30 days, right? And then if they do nothing, right, they sit there and then you have to evict them. So another 30 days, so it’s 60 days, 60 days to evict, and there are like the sheriff shown up at the door, Tino? Yeah, we don’t we definitely in Florida, we’re very pro business. Right here in Florida, obviously, a lot of great things want to say about DeSantis. You know, he’s made a lot of, you know, a lot of pass a lot of laws and done a lot of things for business. And especially when it comes to real estate, we have no rent controls. You know, if you have to evict someone, it’s a pretty easy process. Difficult.

Unknown Speaker 1:03:07
Yeah, we have a lot of things in place for that.

Unknown Speaker 1:03:11
And the sheriff that’s, that’s less law enforcement. It’s not a specific. Okay. Yeah, cuz we have, we have, we have sheriffs here. But that’s not law enforcement there. This is specific. I don’t even know why. I don’t know why we need to have different levels of law enforcement. Yeah, we have property rights here and an Ontario and Canada.

Unknown Speaker 1:03:31
Very pro property rights, especially here in Florida. I mean, you know, we have a great, you know, I don’t know how it works in Canada, but we have, you know, homestead laws here in Florida, right, where you can homestead your home as your primary residence. Right. And your tat, your real estate taxes can only increase 3% a year. That’s it, right? And then also, you know, if you ever get sued, like, that’s your homestead, right, and they can’t go after your own personal asset. So that’s why you see a lot of celebrities, right, that come to Florida, and they’ll put a bunch of money into real estate, and then they’ll homestead it, right? Because, you know, everybody’s going after them to get sued. So and then there’s obviously other tax advantages as well of, you know, investing in real estate here, especially the depreciation side of it, you can depreciate the asset, and you can wait it on the first two years. So, basically, you’re paying no, no taxes on your rental income, especially for the first couple. Right? So you’re able to use the depreciation which is a paper loss paper expense to deduct against your income in the first two years. Do you know how much it’s like 50% or like or what is it?

Unknown Speaker 1:04:33
That’s what I think 50 percents like what do you do for like laptop piece technology house is a little bit different.

Unknown Speaker 1:04:39
I think it’s like almost all of it, like, you know, like

Unknown Speaker 1:04:45
all of it. Yeah, there’s another reason to that actually, in each asset class has its different formula of like, you know, like there’s one big reason a lot of investors they buy these like self storage. You know, facilities is like they have

Unknown Speaker 1:05:00
Huge like, right off that they could have depreciation because the way they’re built, you know, the corrugated metal and they need replacement and so many years. So you see all these investors that do these storage facilities, fill them up, keep them for like two or three years, right, and then sell them and then go to the next one. And they just keep doing that. Right? Flow. I know it. And we have this too. And I don’t know if they have this in Canada. But one thing that we did do well here, which a lot of investors are talking about, the advantage of is, we have

Unknown Speaker 1:05:33
what are called opportunity zones. So these are areas that have been designated, okay to invest in real estates, that if you buy real estate, they’re right, in these different designated areas, the kind of like up and coming transition areas or lower income areas.

Unknown Speaker 1:05:49
You keep it for 10 years, or when you don’t pay any, any capital gains tax.

Unknown Speaker 1:05:55
So, yeah, so we’ll have a lot of investors now that are like, you know, they have these big, you know, like, they might have these, this, this delayed taxes, where they’ve been 1030, wanting these properties for years, or one, and they’ll then 1031, finally into an opportunity zone where they found an asset they really wanted, now they’re keeping that asset, and then they won’t won’t, you know, won’t realize any taxes at the end of 10 years, at least section in the these these areas. And they’re they’re not all section eight, you know, there’s definitely some section area areas in them. But yeah, I’m a very aware of opportunity zones. There’s a big area just north of West Palm here called Northwood, there’s some different areas down so wonderful. Yeah, it’s great. And it really revitalizes areas. I see it happening. You want to bring money in in an area. Yeah, development, like new development, like they’re building multifamily new development, you build a rentiers is a pretty hot market right now to you know, where they’re, you know, build the rent, you know, where they’re building, you know, properties just to rent out. So, yeah, they’re going to enter these areas in gentrifying ruin. Can I get your opinion on Section Eight? Do you like it? dislike it? It’s okay. Well, I’ve had, I’ve had clients Oh, yeah, no, I’ve had clients over the years that have had section eight rentals. I mean, the nice thing is, obviously, you get your rent every month. But one thing that, you know, because it’s subsidized, right, that you’re going to do it, but one thing that they do sexually does do is they go in on their own and check on the tenants, right? To make sure that they’re, you know, keeping the properties up into a certain standard. And it’s not, you know, turning it into, you know, something that’s unhealthy, right. So they have own people checking on the property to make sure that they’re taking care of of your asset, which is one nice thing of Section eight. And then they have a model right of every service what size you know, home or condo or apartment that you own if what you can rent it for so

Unknown Speaker 1:07:44
no sexually rentals, I actually from the clients that I’ve had over the years, they were fine with them. They said, You know, they weren’t saying super positive things about it. But they weren’t saying too many negative things about it. Interesting. It’s usually like what qualifies for like single mothers, single mothers in section A,

Unknown Speaker 1:08:01
for the listeners benefit, can you can you share our section eight is like we don’t have, which is funny, because we’re supposed to be the socialist country. But we have nothing like this. As far as I know. It’s it’s actually I mean, it makes it affordable, especially manage if you’re single mother and you’re trying to pay rent right now, you know, it can be super expensive, because the rent prices are higher. So basically what it is it’s yeah, it’s government subsidized housing, you know, where any investor can go in and offer their property into this marketplace that section eight, right? And then section eight goes out, okay, and has these tenants that they have to qualify in a certain income? Like I said, usually single mothers making X amount of money usually up to under a certain amount of money. Yeah, well, below the average. Yeah, yeah. Well below the average. And then section eight goes, you know, the book, okay. We will pay the rents, okay, on your home, at this rate that we’ve said, this tenant is going to move in here, okay, they’re gonna sign they’re gonna sign a lease, they have to, you know, keep it up to a certain standard matter of fact, we’re going to check to make sure that they’re keeping up to a certain standard. And usually what they do, ironically, is they do have sometimes depends on you know, the tenant where the tenant might pay like 100 or 200 a month on their own to sometimes to to just help them kind of start to pay rent and get used to that so

Unknown Speaker 1:09:18
yeah, and just for listeners benefit the government subsidizing the rent they don’t it’s not their property, it’s the investors property. Investors property. Yeah, you’re guaranteed to read I mean, the US government’s gonna be paying

Unknown Speaker 1:09:31
that not the tenant

Unknown Speaker 1:09:33

Unknown Speaker 1:09:35
if listening list any listeners out there and knows the program that somewhere here, like, please let me know. But as far as I know, there isn’t. Yeah. Yeah. No, I mean, it’s like, you know, obviously it’s lower, you know, it’s, you know, lower income, you know, candidates right. And usually the properties that kind of make sense for these for that type of investment are usually like you know, your, your, you know, more transition areas like you’re getting

Unknown Speaker 1:10:00
these zones, right? That those deals make sense. It’s gotta be with the rents affordable. This is reality.

Unknown Speaker 1:10:06
It’s, it’s pretty, you know, like I said, I’ve had invested I haven’t heard anything like bad about them that they’ve been happy with him. There’s some that that’s all they do. You know, there’s investors that that’s all they do is sectioning. Rentals. I’ve spoken to some investors, some investment advice is to light up when you talk about Section Eight. It’s, especially if you’re going into an opportunity zone or when, like, if you’re going into an opportunity zone, right, and you’d have a section eight property and like I said, in 10 years, and you decide to exit that, if you’ve had a great return all those 10 years now, you don’t have to pay any kind of capital gains tax.

Unknown Speaker 1:10:40
It’s pretty advantageous. Yeah. This is why people want to jump their citizenship and

Unknown Speaker 1:10:48
invest in American real estate. Now we’re, we got a lot of great things to like I said, as far as on the state level as well, right. As far as like headquarter, your business here, we have no state income tax, you know, in Florida. So like, you’re thinking like, wow, like you have no state income tax, which is benefit for you. But what of all the other people in the United States that want to take advantage of that, too. And that’s why we’re seeing this big influx, like I said, have a have a net migration to Florida when versus all these other states that we’re seeing here in South Florida?

Unknown Speaker 1:11:18
Amazing, Ryan? Yeah, I had another question. But I figured it was. But so I’ll just flip back to Airbnb.

Unknown Speaker 1:11:25
When you’re when you’re networking with a new investor, like setting expectations around an entry level investment property, what do they need to know? What do they need to know if they’re going to buy a $300,000 house? Or an Airbnb? Like, do they have to go buy the towels and like, be on call to get ready to, you know, change bedsheets? Like, what? what’s the, what’s the expectation for a new investor? So the nice thing is, which I have in my network, and we have some real treat, we have, you know, the short term property rental management companies, right, that can handle everything, you know, they can handle the booking the property maintenance, the towels, the toothbrushes, you know, all those types of things, you know, as far as that and they’re gonna normally charge, you know, anywhere from 15 to 25%, I’d say the average is probably about 20%, you know, that they’re going to charge. Now, if you do like a kind of a hybrid model, right, which we discussed, obviously, wouldn’t have to pay those large, you know, those large fees, there’s other property management companies, if you did like a, you know, six month rental or maybe like a four month or whatever, they’re going to charge a lot less like 10% or less. So, you know, there’s different you know, there’s different options, depending on what what your goals are, right? If what your returns, you know, what they want to be? Ever since the pandemic, I never had spoken to so many people that are interested in spending the winters in Florida, and it’s usually Florida to talk about, I can’t I’m actually stretching my head to think about when I want to have a named another state. I mean, you don’t name like Texas, right? Like, oh, I want to go to Texas and spend the winter there. You know, it can get cold in Texas, right. And they, you know, the quality, like I said of life here as far as like your outdoor activities on the ocean, right? The golfing like it’s perfect.

Unknown Speaker 1:13:07
To say, you know, remember I grew up in northern Minnesota. It’s like it’s perfect. Yeah, northern Minnesota. So help. Sorry. I wanted to touch on this earlier. How far to drive to get the Winnipeg from where you were living? Yeah, it was only like an hour. So I was right up at the border. Yeah. Went to the northern border of Minnesota is where I grew up.

Unknown Speaker 1:13:26
What’s the name of the city?

Unknown Speaker 1:13:30
Thief River Falls, the falls. They spelled pH i e. F River Falls, Minnesota

Unknown Speaker 1:13:41
Northwest like yeah, one of the most desolate areas. Well, you everybody knows that movie Fargo right. Hey, Fargo was like an hour away right? So it was like Winnipeg or Fargo we go to Winnipeg up there because that’s where the party was. Not Fargo is Yeah, no, not Fargo.

Unknown Speaker 1:14:00
ROA. That’s hilarious. Okay, so for example, okay, I might again I’m very Wow, wow, you’re really north. By up there. You’re already down. Thunder Bay. Yeah, we’re way up there. Yeah, we’re like if you look at where it’s at, you’re a big hockey town. I grew up playing hockey all that good. So that’s why I get with Canadian so well or when you know I know the culture very well. You know

Unknown Speaker 1:14:25
that’s that’s crazy. You’re uh yeah, I never looked at the map Yeah, the border the southern border from Manitoba is north of with Thunder Bay. So your your very north you know cold I definitely know like I said that’s why you know, I was way ahead of the curve like I said, I’ve been here 25 years right so

Unknown Speaker 1:14:43
yeah, and I mean Florida to like it’s just you know, West Palm I we speak into that because I’m in real estate here but you know, I spend time down the Florida Keys and you know, you can drive down to Key West and everybody knows Jimmy Buffett right? And in Margaritaville and all that cool lifestyle and the keys we got that whole area of South Florida. It’s not that far.

Unknown Speaker 1:15:00
Here, I can drive down to Key West, I can be dominant, like a little over four hours down and enjoy that beautiful drive all the way down and being like, like you’re in the Caribbean. So there’s just so many great things that are happening here. Of course, you have the huge Miami scene. Now to I don’t know if I tell you this, because this is new since last time was on the podcast, the high speed train runs to Orlando. So you can take how new is that? How old? Is that? Something really new. That’s really new. Yeah, no, that’s within the last like, few months that they finished that leg. I know. We were speaking last time that they were building it. So now we want to go to Disney World, right? Two hours. Two hours? Yes. Like, how long is the drive? Like two hours? You can train it instead? Just relax. Do the high speed train right and just relax the whole way there. Bro. How much is it? How much is the how much is a train?

Unknown Speaker 1:15:51
Yeah, for Miami, it can be as little as 20 bucks. That’s it. When he box. Like you can’t even park your car or wind down there for that. The same scene like by the headache, it just doesn’t make sense. For me. I haven’t drove to Miami and in three years, like, I’ll just go down there to go right down to Brickell downtown, and then just take an Uber, you know, anywhere else I want to go for fun, you can go over to, you know, over to South Beach for like an $8 Uber ride. Like it just doesn’t. Doesn’t make sense. Right? So it’s infrastructure improvement, that sort of be there’s big infrastructure improvements here, you know, that we’re having having here too, you know, and obviously, we got like, you know, everybody knows we got cruise ships, like, you know, we got like a little short cruise out of West Palm, actually is called Margaritaville cruise line. Jimmy Buffett was invested in that hack of an entrepreneur, if you ever want to read a cool history about entrepreneurs, because I know a lot of entrepreneurs, Jimmy Buffett, man, he took literally that one song Margaritaville and turned it into a billion dollar empire. Yeah, it was at Margaritaville. And every like carnival ship is a carnival I forget what ship it is. Which cruise? Yeah, and this was actually zone it’s called the Margaritaville cruise ship. And you can check at least out of your West Palm, but it’s just a fun short trip brings you the Bahamas, right? It’s just a couple nights that you go over there, which is a cool little cruise because right from the port of Palm Beach, which is my point is like you have all these things to do around here. You know, you have so much so many activities and fun stuff to do that you need lots of activities. He’s you’re not locked up for half the year, because you’re trying to avoid the winter. Because I’m just trying to kill you

Unknown Speaker 1:17:24
know it. I know everyone so yeah, so it’s, ya know, it’s the quality of life. Like I said, ROI. Well, everybody talks, you know, ROI, which is great. But the return on life, that lifestyle? Yes. At the end of the day, you know, at the end of the day, it’s just so rewarding. So many, you know, you know, great things, enjoying, I call it r o g return on grief. I need a lot of return for my grief. And my grief is too high these days.

Unknown Speaker 1:17:52
With Frank control and landlord tenant board and yeah, so I

Unknown Speaker 1:17:58
think that why did they make it harder to like invest in real estate that does I mean, if you want to, like, you know, grow an economy right to to to create wealth for your basically, you know, your constituents, right, your voters, real estate’s like one of the best ways to do it, you know, you think you want people to have access to that you think sorry, but

Unknown Speaker 1:18:17
yeah, we don’t, we don’t like to do things for the rich people here. That’s why we don’t have any rich people, and they just keep leaving.

Unknown Speaker 1:18:28
I don’t understand that capital is mobile.

Unknown Speaker 1:18:31
We have so many we have that’s what I could say about here. Like we have the rich people that are moving here. Yeah, expertise, right. They’re bringing their connections, they’re bringing their network, right. So it’s just Florida in general, especially south Florida on this side. That’s why I’m so bullish on it. Like it’s like, have some of the highest quality, smartest minds, you know, in the United States that are moving here. You know, these big, big entrepreneurs, you know.

Unknown Speaker 1:18:59
Right, any final thoughts? We’re running out of time?

Unknown Speaker 1:19:02
Yeah. No, I mean, I would just say this, you know, I want to kind of get this out there. Because, you know, I’ve worked with Canadian investors, you know, over the years, obviously, had some great success. Some have had, you know, is you know, real estate’s when these things is like, you got to take some risk, you know, and I’ve seen a lot of some Canadian investors I’ve worked with that have sat on the sidelines, maybe looking for the perfect time, right to do it, or, you know, looking for like, the perfect deal. And, you know, there’s never like a perfect deal, right or perfect time, you’re going to have to take some risk, but I will tell you this Irwin, for any investor that I’ve seen, that’s bought and held a property for over five to six years, I haven’t had one that say, Wow, I regretted doing that, you know, some, you know, all of that I’ve had, you know, had been you know, very happy with their their real estate investment, especially, you know, in the last 15 years, you know, it’s um,

Unknown Speaker 1:19:55
any like what would have to change in Florida that’s gonna like totally, drastically do that. I mean, we’re gonna have

Unknown Speaker 1:20:00
Like a big of a sudden, you know, Florida is it like a great area to be because it’s, you know, tools down or something like that. I mean, I can’t imagine that it’s it’s still, you know, people are coming down here to enjoy, you know, everything we spoke about about the weather and the lifestyle and all the activities, I mean, that’s always going to be here. Same with all that, like, we’re not going to switch up all these tax advantages, these pro business things that have worked for Florida, like that’s not going to get switched up. So

Unknown Speaker 1:20:30
it’s worked out patricians are still in human capital from California and New York. My point about capital being being mobile, it is, like, it’s a real thing, or when, like, we’re bringing all this talent here, you know, and it’s just going to become more and more valuable, right? And it’s gonna they’re gonna tell more and more people and that’s, that’s what’s happening love, just, you know, see you down here when, you know, I’ll make it eventually, I need to sell some houses first. Socialist control me.

Unknown Speaker 1:20:56
And that’s my point is I feel like very much I’ve lost control, which is like the last thing any entrepreneur wants. Right? Well, let me tell you a funny story. And this is a fellow entrepreneur that I met here when building real trade and, you know, successful entrepreneur, but he was down in, in South America, down in Brazil, right. And he was an entrepreneur worked super, super hard building his business. And all of a sudden, the currency went down to nothing, right. And the sudden the government changed his rules. Like, literally overnight, they got a new government in there. He’s like, Ryan, I had to literally start over 35 years old, with all the wealth that I had created in 25. Because the first thing I did is I got out of there, I gotta move to the United States. And he goes, I had to start over. But here then I was seeing him 15 years later, you know, he was like, 50 years old, and he built another awesome business. And he sold is doing well.

Unknown Speaker 1:21:52
Ryan, it was a question I’ve had to ask around legal structure. How are how are Canadians buying properties in Florida? destroyed a credit card? Come with a personal check? No, no lending? No, you know, a lot of some of the VA and in fact, a lot of the investors I have speaking with lenders, right, some of some paid cash, right, some of them have paid cash.

Unknown Speaker 1:22:13
I will say this, like, you know, we have a network, some great lenders, you know, Scott Dillingham with Len City, it was awesome. You know, he’s on real trade now. So obviously, they can reach out to him they’re right.

Unknown Speaker 1:22:25
You know, the rates are, you know, the rates obviously fluctuate with the market, but he has a number of products that he can offer them. And then as far as the MCN legal structure, that’s something that he can help with, right, that’s going to because there’s different ways to structure it based on you know, the tax advantages, right. So he can have different ways that they can speak to that, and then obviously, that the, the lending institutions would want to see right that they can. So definitely like, what Scott, is that lens city will handhold you through this? Yeah, they can definitely handhold you through that. Right. So I mean, the investor, I had a lot of cash buyers that have purchased, you know, they purchased under LLCs. And different things to

Unknown Speaker 1:23:02
you know, which are,

Unknown Speaker 1:23:04
basically create LLC is here, I’m sure it’s similar in the United States in Canada, right. So each state, you can register your LLC in that state, and that becomes an entity that you can then purchase assets through right and protect, you know, through the LLC. And there’s different ways you can do it, though you can set up a trust, then and then put the LLC in a trust. And, you know, there’s a bunch of different ways that you can do it. Definitely speak to your wife. Yeah, yeah, it’s something to your wife, right? She can, she can practice this here in Canada.

Unknown Speaker 1:23:35
ever wants to speak to an accountant, it’s, it’s, we have some great as everyone’s situation is different, right? Because I don’t have cash. So I’m going to tell you to talk to the accountant lawyer that doesn’t deal with just cash buying.

Unknown Speaker 1:23:48
We got some great attorneys on real trade, too, that can help in some great title companies that we have to make sure, you know, all the I’s and dots are, you know, across data. And so, all that good stuff. Fantastic. Where can people find real real trade? Yeah, I can go to you can just Google real trade, it’s gonna be the first one that shows up, but the URL is actually real So you can find it there, I would implore you to check it out. You know, as far as like, you can look for properties for sale, right? Or rent, you could look for property for sale or rent, get a good idea in the market. And the cool thing is you can connect with real estate professionals. I’m on there every single day. So you’ll definitely see me and connect with me on there. But you’ll see Scott Scott with Glen city on there.

Unknown Speaker 1:24:29
You know, you see a lot of other real estate professionals on there as well, whether an inspectors, appraisers, contractors, any of those types other real estate agents on there, too, as well.

Unknown Speaker 1:24:40
You can always get a hold of me, you know,

Unknown Speaker 1:24:43
I’m wondering now I’m like, oh, there’s a listing here. 17 says, l left st one. That’s one of my listings.

Unknown Speaker 1:24:54
Because I see your picture on it now. Of course got

Unknown Speaker 1:24:59

Unknown Speaker 1:25:00
But yeah, one bit like 680 square foot. 2007 50. American. That’s about what we get for 680 square feet in Toronto. Yeah, they’re getting that that’s I’m saying like,

Unknown Speaker 1:25:12
this is like this real That’s it. That’s a multifamily investor bought. I just put that on the market. I’m actually got a lease.

Unknown Speaker 1:25:19
I know it’s acute. That cool. That’s in Lake Worth beach Irwin. That’s just south of downtown West Palm. Super cool. House. Yeah, back in the 20s. Yeah, you got a great deal on that was so just kind of highlight that ones. That was four units, right that he got for 800,000. It’s one bedroom, and then three studios. And yeah, he’s gonna get about $2,000 a month annual for the studios. And then for the one bedroom, he’ll probably get about 2700 for the one bedroom on an annual basis. So that would be 246

Unknown Speaker 1:25:55
That’s pretty good. Yeah, most loving 11,000 You know, almost 11,000 a month. You know, which is a, you know, an $800,000 purchase. Didn’t get much renovation? Nothing. He bought it just like that with fully furnished and everything. I got a good deal on that one. He’s super, super happy with that asset. This is a ground floor unit. You’re all grounded? Yeah, they’re all Yeah. So you have kind of like a single family. home up in the front one bedroom then you have a studio and then two more studios and another building the back. And a nice patio in the back. Yeah, the colors are the colors or Florida.

Unknown Speaker 1:26:33
light blues. I’m always doing deals like that, like on a personal level obviously to you know, working with investors that I’ve had over the years and you know, happy helping your, your, you know, your friends or your clients or when let’s build wealth in America. You know, say what you want, you know, 75% of us millionaires are when made in real estate. Still the best wealth generate I know we love you know, in America stocks and crypto and all these other alternative investments. But real estate’s been one of the best. Yeah, it’s part of a diversified portfolio. Yeah, I’m working people get a hold of you. So yeah, you can go and register on real trade. I’ll see you there. And then also, you can just email me at Ryan pool at real More than happy there. You could connect with me on Facebook. We’re friends or one and I get to see all his cool posts with I love your grilling out, by the way in your bar.

Unknown Speaker 1:27:27
I mean, I look at your posts, and I’m like, Man, I’m hungry. It’s good. You’re you’re grilling and barbecue game is top notch. Yeah, but I feel like I have like a week or two left to

Unknown Speaker 1:27:38

Unknown Speaker 1:27:40
Something to eat the barbecue your round.

Unknown Speaker 1:27:44
To the theater gets you. No, I’m kidding. I’m gonna come back for you. Ryan, thanks so much for doing this happy Halloween. You too. You too are one it’s been great. Thanks, man. Thank you for watching. If you want to learn how to invest in real estate from scratch, my team teaches beginners how to use the number one investment strategy that I personally use in a virtual free training class every month. Go to investor To register for our next class. Then links also in the description as well. I publish at least two to three videos a week here. So subscribe if you want to keep learning from seasoned investors like myself and my guests. And if you’re just starting out, feel free to ask questions and comment below. And I do the best to answer each of those comments and questions myself. Again, if you’re ready to learn the nitty gritty about real estate investing from a professional investor register for our next virtual class. That’s at Investor Thanks again for watching. See you in the next video.

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