Farewell Texas. Man has it been a blast. I met some awesome people, immersed myself in Texas history and culture and enjoyed a lot of BBQ. I mean a lot of BBQ which is easy to find in Texas as there is like Brisket in everything. I’m not one to collect souvenirs but I really liked Texas. More than anywhere else I’ve travelled. It’s that perfect mix of entrepreneurial environment, landlord friendly, and everyone is so nice. Honestly folks in Texas were more polite than back home in GTA. Drivers are way better too.
On Tuesday morning, we connected w Sheraz Ali originally from Winnipeg who moved to Austin to be with his wife. Sheraz was kind enough to invite us to check out his latest 🏚️flip project. He shared his renovation plan, his experience in the local market: what property defects to look out for, specifically structural issues caused by heavy clay soils mixed with drought followed by heavy rains. The challenges hiring renovators and sourcing materials. The unemployment rate in the US remains stubbornly low around 4% even with interest rates at peak levels. One has to think what will happen to inflation when rates are cut this year… I have my theories hence you see my raising cash to invest in the US.
Funny enough, local schools closed earlier in the week due to the cold 🤷♂️. These cold snaps aren’t common so pipes are freezing everywhere. Note the picture of the ice accumulation. That was on an outdoor pedestrian bridge at the major mall downtown San Antonio.
We moved accommodation from downtown Austin to a resort only 16 mins from downtown. The resort has FOUR 18 hole golf courses 😳. It’s incredible how affordable housing and land is in the most expensive town in Texas. Unfortunately it was too cold to golf and my priority was to do real estate and eat BBQ.
🚗After check in, my cousin and I drove down the busiest corridor in Texas, the same drive as 100,000 cars make per day to San Antonio to see some historical sites: specifically the Alamo, the site of a major battle to decide Texas’ independence from Mexico. We walked along the San Antonio River Walk, an iconic area filled with bridges, bars and restaurants, but for best in class BBQ, we hopped back in our rental Toyota Prius (oh the irony of driving around Texas in a Prius among all the super sized SUVs and pick up trucks), to dine on some of the best BBQ in the city: smoked turkey and sausage.
Interestingly enough, we took the toll road from Austin to San Antonio to save time and because our rental Prius had out of state licence plates so there was no way the auto tolling system could bill us… on the ride home, we took the non tolled road back to Austin and the development was night and day. That 81 mile stretch was nearly completely developed.
I find this all fascinating as I’ve been studying this specific corridor as it makes a lot of sense for target for investing being located between the major economic centres San Antonio and Austin and it’s on the direct path to Monterrey, Mexico which is booming economically.
To round out the Texas experience, we stopped at Costco: which is double the size and features double the variety of back home. The meat looked amazing and less expensive. For gas, we stopped at Buc-ee’s, an enormous gas station with like 100 pumps and 23 Tesla superchargers too. They even sell pretty good bbq sandwiches, camp stoves, gun cases, and the largest variety of jerky I’ve seen.
I should mentioned I picked up a $14 bottle of pinot grigio called Banshee from Costco and it wowed all my entrepreneur buddies how good it tasted.
I checked a bunch of houses on Wednesday. I even did a self guided open house via Open Door, a company that basically flips houses. The for sale sign on the lawn had a QR code which led me to their app, I filled out my contact details, took pictures of my driver license and the front door unlocked. It was awesome, I didn’t have to engage an agent to look at a house I’m not qualified to buy LOL.
I loved, the house, if I was liquid, I would be writing an offer. 1,800 sq ft. no foundation cracks like Sheraz warned me. 4 bedroom, 2 full bath, location was in the middle of town so no new construction houses or apartment buildings will compete directly with me, the elementary school was a 5 min walk. Starbucks and Walmart a 4 min drive away and the big upside is 8 mins away is the $17 billion dollar investment by Samsung to build a micro chip manufacturing plant that will employ 2,000. This is how I invest. For economic fundamentals that will cause upward pressure on my rents and resale price. No rent control means my cash flow will continuously improve.
High level numbers, $325,000 asking, $2,100 rent plus utilities, no condo fees. If you can beat those numbers with similar ease of investment with significant upside please let me know and I’ll have you on the show. Just know, if you’re going to make FURU promises like six figure income on $50k investment, I will laugh at you.
I went to see some new construction houses as well but something just didn’t feel right. I’ll explain more at our first even iWIN US Property Tour, all virtual of course on Saturday morning Feb 10th. We will be covering properties from Texas and Tennessee in search for both cash flow AND appreciation.
If you’ve been following the news in Canada like I do, for example, Hamilton just passed a new bylaw where if the landlord needs to do a major renovation, say there is a flood and the tenants have to vacate, the landlord has to find another apartment at similar rents for the tenant. Good luck to all the parties involved. I’m selling my rentals and getting the you know what out.
A past client of mine messaged me over the weekend asking why the change and I’ll explain why with a story. Remember when Elon Musk was on the Joe Rogan podcast smoking weed the first time? I’m not a regular listener to Joe Podcast but I do tune in when he has the occasional big guest. If you know Joe, he loves to talk about aliens till Elon shut him down. If there are Aliens have visited Earth then Elon might know about it. Well Elon doesn’t, Elon goes on to explain how there’s never been evidence of advanced technology found on earth and he will believe in aliens when the evidence demonstrates there are aliens and until then, there are no aliens. That was year ago and Joe still rambles about aliens but for me, the case is closed until there is definitive evidence.
No different for me with US real estate investments. Building a team is hard. For every successful investor I can name you someone who lost their shirt. Add to that, real estate investment make little sense without cheap mortgages. Both of those major obstacles of mine were resolved when I met my new strategic partner in SHARE the asset manager and when Scott Dillingham of Lendcity Mortgages opened up shop in the USA.
Only now do I have the team to make direct real estate investments 10 times easier than it is in Canada. At the same time, the Ontario and BC markets have been the most unfavourable to landlords. And to that, my theory is the Canadian dollar declines in value compared to the USD over the long term which make sense due to our growing debt and lack of investment.
So what is a sophisticated Canadian investor to do? I know what I’m doing. Selling the majority of my rentals in Ontario and diversifying in US dollars in several US cities and states.
Based on my research, this just makes sense and I welcome anyone to challenge my theory and I’m happy to do so on my show. Just a fair warning, if I think your investment business is doomed to fail, I will say so. I saw it coming with Epic Alliance and Fortress Real Developments. I saw it with the wrong group and Clydesdale Capital. And that poor young lady who deleted her website and instagram rumoured to have gone bankrupt and lost all her investors money. She was never on my show either.
Anyways, less stress, more returns including cash flow. That is how one makes real estate investing great again.
Mastering U.S. Real Estate Investments While Working From Home With Canadian Glen Sutherland
On to this week’s show!
We have podcast host of A Canadian Investing in the US, Glen Sutherland, hey’s a nice, sharing guy, a seasoned real estate investor, and he’s here to share his own journey of how he ran into a wall investing in Ontario then pivoted to the USA in 2017 and never looked back.
Glen shares insights from his experience, including strategies for finding and managing properties, navigating different market conditions, and the importance of building a reliable team all from the comfort of his home near Waterloo, Ontario. He emphasizes the value of solving complex property issues, I emphasise complex as Glen is dealing with complicated deals in small towns not for the faint of heart.
Me personally, I’m going for boring, Glen however is a full time investment with sufficient capital and he must like the excitement. We are totally on two different end of the risk tolerance spectrum which is totally ok. This is the truth about real estate investing podcast and there are various ways to invest in real estate.
So with no further ado, I give you Glen Sutherland
This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me. Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up. If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/eventsand register for our next event.
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BEFORE YOU GO…
Before you go, if you’re interested in what kind of properties I am looking at in the landlord friendly states of the USA please go to www.iwin.sharesfr.com for what I consider the best investment for most Canadians, most of the time.
I’ve been investing in Ontario since 2005 and while it’s been a great, great run. I started out buying properties in the 100,000s and now it’s $800,000 to $1,000,000. How much higher can it go? I don’t know
To me, the remaining potential for appreciation does not match the risk hence I’m advising my clients to look to where one can find rental properties that are affordable range of $150,000 to $350,000 US$, with rents that range from $1,400 to 2,600/month plus utilities. As many Canadians recognize, these numbers will be positive cash flow and are night and day compared to anything locally. Plus the landlord has all of the rights, no rent control, and income is US dollars which are better than Canadian dollars.
If you don’t believe me, US dollars are better than Canadian dollars, go ask 100 non-Canadians which currency they prefer to be paid in.
So to regain control of your retirement planning. Go to www.iwin.sharesfr.com and check out what great cash flow properties are available in the USA.
The best part is, my US investments will be much more passive compared to by local investments as I’m hiring an asset manager called SHARE to hand hold me through the entire process. As their client and shareholder, Share will source me quality income properties, help me with legal structure and taxes, they manage the property manager and insurance provider while passing down to me preferred rates so I save both time and money.
Share will even tell me when to strategically refinance or sell. SHARE can even support investors all over the country for proper diversification hence my plan is to own in Tennessee, Georgia, and Texas. Share is like my joint venture partner but I only have to pay them fees while I keep 100% ownership and control.
If your goal in investing is to increase cash flow, I don’t know of a better strategy for most Canadians most of the time. One last time that’s www.iwin.sharesfr.com to see what boring, cash flowing real estate investing can look like on your path towards financial peace.
This is how I’m going to make real estate investing great again for my family and hope you choose the same. Till next time!
Infinity Wealth Investment Network – would you like to know how our investors returned 341.8% on positive cash flowing real estate over the last five years? On average, that was 68.4% per year.
Just imagine what winning in real estate could do for you.
If you would like to know how we did it, ask us how by calling 289-288-5019 or email us at firstname.lastname@example.org.
Don’t delay, the top markets we focus in are trending upward in price, so you can pay today’s price or tomorrow’s price.
Till next time, just do it because I believe in you.
Hamilton, St. Catharines and Toronto Land Development, Real Estate Investor, and soon to be builder.