Multifamily Conference is Coming May 24-26th With Seth Ferguson

Guess what topic keeps coming up in my DM’s. You, our 17 listeners would like a litigator, a lawyer who specialises in suing people to guest on my podcast.  You asked and you shall receive, I’m working on a few folks right now and that’s just the state of affairs in the investing community though I should note, the problems are generally isolated in certain groups unlike REIN and Rock Star hence we just had CEO of REIN Patrick Francey and Co-Founder of Rock Star Tom Karadza on the show.

Respectfully, I keep hearing news about investors within the community declaring bankruptcy or bankruptcy protection where the investment strategy was on the challenging side: major renovations, small towns with small economies. Some even lacked the basics of real estate investing: a growing population, like Timmins, Ontario where the population shrank according to Stats Canada between 2016 and 2021.

Sadly, I heard the news that one of the past guests of this show had declared bankruptcy. I don’t know any details other than she was sanctioned by her local securities commission and I haven’t heard of any wrong doing so I’ll leave names out and the episode up till I have new information.

I do want to warn and remind our 17 listeners, this is a recession and historically high interest rate environment, there will be bankruptcies among those who speculated, risked excessively or over leveraged. There was a ton of lessons from the 2008 financial crisis where those who went bankrupt could not make payments on their debt hence it would make sense to NOT over leverage. 

I do have an ask for you, my 17 listeners. If you do want to help out people you care about, please share this show and my email newsletter with them. We do vet guests on this show and I’ve repeated many times on this show, I do not lend my money privately. I’ve never found retail opportunities to lend to be worth the risk and worst case scenario.  VISA and Mastercard collect 26-29% interest on unsecured loans. Why would I accept 15-17% on a promissory note?

The investment in oneself and one’s own properties maintaining direct ownership and control remain undefeated as the best investment in my experience.  Cherry and I are headed to Savannah, GA for the next stage of building our portfolio.  If you have any vacation, real estate tips, I’m all ears!

Multifamily Conference is Coming May 24-26th With Seth Ferguson

On to this week’s show!

We have returning to the show my friend Seth Ferguson and I want to thank him for hosting the biggest real estate event of the year May 24-26th.  The Friday is a 101 for beginners then the main course is the Saturday and Sunday and I’m excited to see all my friends from the community, hopefully our 17 listeners and Wolf of Wall Street Jordan Belfort.

I don’t know his full story outside of the Leonardo Dicaprio movie, he did go to jail for doing awful things with peoples’ money but I know he’s got great stories to share how he did it all wrong and if he had only played the long game and stayed legit, he would have made 10X the money.  

Robert Herjavec of Dragon’s Den and Shark Tank is the other keynote speaker along with a secret guest Seth will reveal on the show!

Seth is pretty awesome too, I can’t wait to be there to support my friend and I look forward to seeing everyone!

On today’s show Seth shares the journey to the third Multi-family conference, how and why he chose these speakers, how this year will be drastically different than years past.  We’ll discuss why Seth from Milton, Ontario owns no income properties in Canada and focusses his own efforts and capital in southern USA along with some of the numbers.

Metro Toronto Convention Center

May 24-26th.

Please enjoy the show!


📅Join Our Upcoming Workshop: How to Invest in the U.S. Real Estate Market as a Canadian Investor! For those who’d like a deeper understanding of how to invest in the USA, we are happy to announce our next US investing workshop on Saturday, April 13th.

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** Transcript Auto-Generated**

(00:00) welcome to the truth B real estate investing show my name is Erwin Szeto I am the host since 2016 we have well over 300 episodes of this show and guess what what topic keeps coming up in my DMs you are 17 listeners who’ve been dming me would like to hear from a litigator a lawyer that specializes in suing people to guest on my podcast you ask and you shall receive I had uh three in have introduced to three lawyers who are interested in coming on the show and interested in taking on clients to uh to sue borrow
(00:31) to repes well probably willing to represent both sides anyways so I’m working on a few and that’s just the State of Affairs right now in the in the community though I should note the problems are generally isolated in certain groups unlike rain and Rockstar hence we just had CEO of of REIN Patrick Francy on the show and co-founder of Rockstar Tom carazza on the show Tom was just on Nick was on about roughly about a year ago as our to celebrate our 300th episode respectfully I keep hearing news about Investors within the community
(01:03) declaring bankruptcy or bankruptcy protection where investment strategy where the investment strategy was on the challenging side including major Renovations like basement sweding or Garden sweding or trapx conversions or whatever in small towns with small economies some of these towns even lack the basics of real estate investing like a growing population like Tim Ontario where the pop population actually shrank according to stats Canada pop like real estate investing works best in growing areas so where areas have growing incomes because
(01:40) growing incomes typically attract more people to move into the area which pushes rents and prices up again to pick on Tim Ontario I’m sure it’s lovely over there home of sh Twain the population actually shrank uh I’ve included uh the um in in the show notes I’ve included a screen capture from stats Canada between 2016 2021 they actually shrank by a couple hundred people point is most of Ontario did not shrink most of BC did not shrink why would anyone consider investing in a place where people where the population
(02:14) is shrinking sadly I heard news that uh this earlier this week or last week that one of the past guests of the show had declared bankruptcy I don’t know any of the details other than she was sanctioned also by her local Securities Commission uh but I haven’t heard about anyong doing so I’ll leave names out and the episode will will at Le stay up until I have more information I do want to warn and remind our 17 listeners that this is a recession that we’re going through uh I don’t know if You’ want it
(02:42) seems like a recession real GDP has been declining for like six quarters the economic picture for Canada is not that great right now uh and partly due to historically High interest rates that we’re in right now so there were so should be no surprise that we’re seeing bankrupcy es among those who speculated or they risked excessively or they overleveraged there was tons of lessons from the 2008 financial crisis where those who went bankrupt could not make payments on their debt hence it would make sense to not over
(03:15) leverage which is kind of wild because private mortgagees seems to be all to rage in in certain circles versus back in my day oh listen to me I just turned 45 and I’m talking about back in my day um prior to I don’t know about 2018 most Jun Venture deals most OPM other people’s money deals were for Equity not for debt so at least with Equity yes you you give up half of the ownership but you don’t have interest payments that could potentially bankrupt you so anyways I do have an ask for you my
(03:52) 17 listeners if you do want to help people uh that you care about then please share the show with them in my newsletter we do vet guests on this show and I’ve repeated it many times on this show I do not lend money privately I’ve never found retail opportunities to lend to be worth the risk in the worst case scenario Visa Mastercard collect 26 to 29% interest on unsecured loans why would I accept 15 to 70% on a promisory note the investment in oneself in one’s own properties maintaining direct ownership and control still remain
(04:25) undefeated as the best investment in my experience and I have I have over 45 clients to prove that mult millionaire multi-millionaire clients to prove that boring investing works perfectly quite well Terry and I are headed to Savannah Georgia for our next stage of portfolio building if you have any vacation or real estate tips I am all ears onto this week’s show we have returning to the show my friend Seth Ferguson and I want to thank him for hosting the biggest real estate investment uh real estate invent of the Year May 24th to 26th the
(04:56) Friday is more of a 101 for beginners then the main course is the Saturday and Sunday and I’m excited to see all my friends there from the community there hopefully our 17 listeners and and will be there i’ love to see you uh please stop by say hi if you see me I’ll stand up like a sore of thumb I promise you that and also I’m excited to see Wolf of Wall Street Jordan bord speak I don’t know his full story outside of the Leonardo DiCaprio movie I know he did go to jail for doing awful awful things
(05:23) with people’s monies uh but I do know he’s got some great great lessons to share from his loss uh and how if he could do it all over again if he just played the long game and been more honest he would have been like like 10 times more successful hopefully he shares that story because I love to see it in person Robert hyck of dragon dead and Shark Tank is the other keynote speaker along with SE the secret guest Seth will reveal on this show uh Seth’s pretty awesome too uh I enjoy interviews done by Seth and I enjoy seeing Seth
(05:55) speak uh I don’t know if he mentions it on the on the show but he actually the feedback on Seth’s talks is usually among the highest among his guests uh so on today’s show Seth shares the journey to the third multif Family Conference how and why he chose these speakers how this year will be drastically different than the year’s past much uh new and improved if you will we’ll discuss why Seth from Milton Ontario owns no income properties in Canada and focuses his efforts exclusively on uh the southern
(06:23) USA along with some of the numbers so you may want to have a pen and pencil ready to take notes and uh yeah please enjoy the show also multifamily Toronto Convention Center is the location May 20 Friday May 24th to 26 yeah please enjoy the [Music] show hi Seth sorry what’s keeping you busy these days oh a whole lot a whole lot nothing uh well a whole lot of nothing really we got like conference coming we got real estate we got all sorts of stuff yeah yeah nothing e nothing like everything has a seven fig budget I don’t know what
(07:14) everyone calls that nothing oh man yeah it is uh yeah it’s just uh yeah just trying to fill out uh figure out how to fill up my time and uh you know take myself away from uh the family as much as possible no I’m just joking just crazy just crazy which is hilarious cuz you coached your child’s hockey team not busy enough yeah I I added on the coaching so we’re on the ice a whole bunch and uh yeah what else am I oh I’m writing a book like all this kind of stuff so you’re writing a book too oh yeah well the huge history
(07:45) nerd kind of stuff right so history of what oh uh yeah buildings what no no no no no so it’s uh I’m I’m writing uh I’m doing a book on the eth regimen of foot during war of 1812 so I’m basically covering uh the regiment from 1810 to 1816 uh so it’s a very it’s a very geeky non-fiction like historical type of study okay hang on refresh my memory it’s been a long time since grade 10 high school history what was the War of 1812 yeah so the War of 1812 uh you know it was fought between Great Britain and
(08:18) the US so it really stem like brost and tea party stuff well yeah well that was like more of the American Revolution so fast forward uh to you know 1810 1811 there was a lot of tension and terms of the uh you know just trade with uh France who Great Britain was at War uh with at the time and uh the impressment of American Sailors boarding us ships there was a whole lot of stuff uh so uh the US declared war in Great Britain and then there was a you know three year and a bit War fought over that only three years they lucky yeah well a lot of
(08:51) stuff happened with it but you look in Southwestern Ontario so you’ve got you know Fort Erie Fort Georgia niagar on the lake you’ve got Fort Niagra you know Lundy’s Lane everybody know shopping well that shopping center is part of it built over um a battlefield uh so that that was one of the bloodiest battles of the war that was fought there oh okay yeah so cuz you’re not busy enough exactly not busy enough wait how wait just to give folks some context like how how many people attended the multif
(09:20) Family Conference of uh last year yeah so last year we had 2500 people 2500 well 2500 and change yeah that’s a lot yeah it was a lot of people yeah and we’re going even bigger than here so it’s going to be insane wait you have a bigger room how you going to make this bigger you already had a humongous room we did but we added some more square feet so you you’ll appreciate this with knocked down a wall yeah so you’ll appreciate this with with your uh your conference so we have about 180,000 Square ft just on the main floor
(09:50) and then we have all the rooms underneath so we’re so you like double that essentially in terms of uh space so yeah we’re really big wait wait wait are you doing two states no no still the main stage uh but in terms of the room in terms of uh and how we configured it like we can we can definitely add another thousand people right right right yeah yeah what what’s okay so actually let’s revisit so uh like last year was the first year you did a whole Friday segment just for like 101 investment training yeah yeah for
(10:21) for sure yeah so uh for context in our first year we ran uh the Saturday Sunday uh so two days mainten stage it was great mhm and during just out of the lockdown yeah man that must been so stressful oh so stressful for so for for history lesson just a few years ago you were the first big conference out of out of Co we were yeah and the interesting thing so in terms of venue shopping everybody was kept asking me hey why did you run it in a hockey arena and just convert it well the truth is those guys were the only people who snuck Us in
(10:54) during the lockdowns all the other venues wouldn’t let us in the building but um the ca Center let snuck Us in and we did our site tours and all the planning even though everything was locked down and that’s the only reason we were able to get in there and and actually run the run the event um but what I found the first year was We attracted a you know a decent number of people who were who were new to apartment buildings so maybe they were doing fix and flaps or some other type of real estate and they didn’t
(11:21) understand apartment buildings so when you know first year we had Joe Fess i’ say now he’s at like 3 billion in AUM um when he was on stage yeah so his portfolio he manages a portfolio of 3 billion oh yeah insane right so but when he’s on stage and talking those newer people weren’t able to absorb as much as he was giving out because they they didn’t have that foundation so last year we added a Friday workshop for beginners so this is where you know we we’re going to hey just give you all the basic
(11:48) foundational stuff so that way when you know Grant Cardone last year or Alex Rodriguez was on stage talking about their portfolios you’d be able to follow along a lot better um and that was crazy we thought we’d have like 300 people we maxed out room capacity at 500 and something we couldn’t fit more people in uh so this year we’re splitting it so we have our beginner Workshop just the same uh and then we have an advanced investor Workshop where it’s more focused on scaling uh Team growth uh brand building
(12:16) at scale like lead gen at scale that that type of stuff so you know if you’re an experienced operator we have a full day workshop just for you on the Friday and then if you’re kind of new to apartment buildings full day workshop that’s going to bring you up to speed you can be like 10 steps ahead of everybody else uh By the time Saturday and Sunday rolls around I love how like how how the conference has evolved oh yeah to yeah because you yeah you you always need information you need data you do send up surveys and you need
(12:43) information on how to improve yeah and then to see you delivering on the improvements that’s so cool oh yeah well like that’s the thing with with uh with any any type of product right you you talk with people face to face you know your good friends will tell you the the truth like right off the bat but a lot of people they they won’t give you the the real things that you need to know about so that’s why we always survey and then you know we read through and I read through every single one like the team does too
(13:09) but like I I read make sure I read through each one and we actually take it to heart like it’s like oh okay well we have a decent group of people saying this well how can we change it to make it better and because I want to as we scale this conference like we’re scaling this to be the real estate event anybody goes to and uh to do that we have to be the best so we’re always looking to improve CU I thought the first conference was incredible yeah it it was it was good um but like it’s first time with anything
(13:39) right like like there’s always things that that you want to improve on and and as you scale so like a thousand people versus you know 3,000 people there there has to be changes behind the scenes in terms of the framework to to allow you to scale to that size so and that’s that’s what kind of what we’re focused on right now is hey how do we deliver the the the top uh the best in class experience but also be able to impact thousands and thousands of people at one time uh because you know when you start
(14:07) adding a lot of people uh there’s the logistical stuff you want to make sure everybody feels included that that type of stuff yeah more things can break and oh man yeah well last year um our registration system um crashed on the day of so you know like we pay so we pay a lot of money for our registration stuff like it’s not just like we’re not using event braer like we pay a lot of money for this stuff and you know I didn’t even notice oh yeah well speaking of things go wrong behind the scenes so our team was incredible
(14:41) but we had the one thing I wasn’t happy with was people came and we had like the lineup was was pretty big like we had a lot of people but the reason is our whole registration system was down and um the conversations after the fact were not good in terms of us for in in that system because hey like we paid you guys a lot of money to perform and your system did not perform at all and and so that just tweaks and and making sure now this year because it happened last year it’s like okay well we’re running with a
(15:10) different company but hey what happens if this crashes what’s our plan B and last year we didn’t have the plan B so now it’s just like adding in different systems and and operations to make sure everything’s Flawless you know again as an observer like I didn’t know it was down and I know the lineup was long but they got processed pretty quickly yeah yeah but but like this is like I’m a perfectionist right so which is hard when you’re when you’re dealing size of quantities yeah like it
(15:37) was great and like our event is an amazing event but I like that that’s my personality I always want to make it better the next year so it’s like okay like generally it was good but where can we nitpick things to really bring you up to the next level and and that’s what uh that’s what we are ruthlessly doing um so yeah like like this year we we’ll we’ll have some changes in terms of how things run but it’s just to make things better right right yeah for sure and talking about trying to make better you
(16:04) had Mr 10x last time we did yeah you had M you had the Alex Rodriguez who I think uh I’m sure many people underestimated him myself included because I didn’t know his story and his and everything yeah yeah well actually let’s touch on that for a second because I got so much um so many messages on Facebook Instagram or emails about hey why are you bringing Alex like he’s just a baseball guy it’s like oh I got better certain people were like oh didn’t he date he used to date JLo right that’s how they knew him so they didn’t
(16:39) know he was a baseball player well well even Darcy was like who cares about A-Rod I just wanted to see JLo and uh but but who’s married to Ben Affleck now I think I think I don’t follow these things but yeah I think yeah I’m not I’m not sure but but yeah so but I was so excited to have him on stage because I knew what he was doing like with A-Rod Corp like he’s a sharp guy he knows what he’s doing he has a great team he has a great portfolio and so on stage I thought like my personal I thought he
(17:08) knocked it out of the park to use a baseball ter right like he was great and a lot of people came up to me after or shot me messages being like hey like I had no idea yeah no idea um and and that was you know I I was really excited for that cuz I could just kind of tell everybody kind of knows A-Rod but they didn’t really understand who he was as a business person he was playing in the miners and he got his first duplex so like he’s been in the investing game for a long time and I I think he surprised a
(17:37) lot of people which is great I love that everybody knows Grant Cardone but in terms of A-Rod like he was he was great yeah yeah actually had some Insider information I just my coach shared with me how how she knew many people and who who knew a rod already knew he was legit yeah so I was actually got the benefit of going in knowing he was incredibly legit yeah yeah and now again talking about passing trying to beat last year which is tough when you have Grant yeah you have three speakers coming up for this year yeah we got three big guns
(18:08) coming out yeah um and so we’ve announced well we’ve announced two should use the word guns because they are Americans three we have three headline speakers yeah yeah yeah so Grant and Alex were exceptional um and uh one of the things we wanted to make sure that we’re doing is keeping it fresh right like a lot of people said hey bring Grant back you know maybe we we’ll look at it next year but uh we want to keep it fresh and deliver different perspectives um and I think the lineup we have this year is going to
(18:36) be a lot of fun um so we’ve got uh Robert herc you know longtime uh you know Canadian uh immigrant uh longtime um you know star on drag stad Shark Tank he’s now executive producer of Shark Tank um and he’s seen a lot of pitches so uh you know one of the things with with our audience is a lot of people want to learn how they can improve their Capital raising skills so Kevin ol was our first Speaker the first year he was awesome he was great he was great um did the audience like him oh yeah we really
(19:09) enjoyed him yeah yeah Kevin scored really really well and this is the thing with like marketing like we get hate mail all the time uh dep no matter who we like bring in as a speaker we got hate about Kevin oier we got hate about Grant Cardone we got hate about uh A-Rod and this year we’re getting hate to so it doesn’t really matter right but but we want to keep it fresh so Robert can bring that perspective um in terms of the capital raising the scaling the team um that kind of thing um and then we’ve
(19:36) got the Wolf of Wall Street himself Jordan bfor uh coming in and in terms of like running you know like we run sales teams and stuff in terms of tone and how you can present opportunities and stuff I don’t think there’s a better guy uh so I I’m really looking forward to uh Jordan and he and we’ve got him set up so he’s going to be running a workshop just for our VIP so he’s on the main stage but he’s run a workshop just for our VIP VIP attendees in terms of how they can structure their Capital raising
(20:05) pitches and their presentations and and how they can uh just interact and Converse with possible investors uh better I think that’s going to be worth the price of admission in itself so so really excited because uh for anyone who’s followed Jordan Belford’s career they know like if he just stayed clean yes not in his maybe both both in his substance abuse in his business yeah for sure like he he had um what Steve Madden shoes lined up oh yeah yeah like he could have ipoed that yeah 100% And he I
(20:38) don’t know I don’t know how many hundreds of millions he’d be worth oh huge and and you just look at the the sales team he built he was able to take people who were just regular lay people like lay men and bring them in teach them how to sell and they were incredibly successful you know yeah things went off the rails 100% right um and yeah like he did his time but in like if you look past it and look at hey like what’s he actually saying like what what value can he bring like we’ve learned so much in terms of how we run
(21:10) our sales team from from um from what what he’s done so I I’m really excited to have him come in for sure and plus he’s got a couple good stories too so are you going to ask the cliche is he going to do the cliche uh s me this pen no no no is that a l is he sick of it well like yeah like like we we’re going to take it from to a totally different like place with it and yeah what well well say Inn so if somebody asks you sell me this pen what’s the right answerin sell me this pen what what’s
(21:41) the right answer there give me you have a pen I don’t have a pen supply and demand yeah exactly which I stole from the movie well well the the best answer is well how long have you been in the market for a pen yeah yeah right so like you go into Discovery so I Ed up with a question do you have a pen 100% I got this 100% like so many people are like oh yeah this Pen’s amazing blah blah you don’t even know cell yeah you don’t even know if the person wants the pen or not yeah yeah that’s super cool
(22:15) um I think I think the lesson out of Jordan B for was is at least to me is that if you just if you just keep it clean and play the long game yep you’ll be you’ll be like he like I’m I’m a guy I I own Steve Madden shoes I like the product and he could have taken that he could have been the company that took it public 100% Y and if he kept some stock like I don’t even know how many hundreds of millions he’d be worth 100% And and like you just look at you know in in terms of the even just
(22:44) the sales training side like he has so much to offer in terms of how you structure or pitch how tone and how you can influence people and all that kind of stuff like sale like you’re selling every day like what if you go on a date you’re selling if you talk with your kids you’re selling if you talk with your spouse you’re selling you talk with a prospect you’re selling uh so that goes such a long way he sold people on his script in his book oh yeah 100% 100% so like like there’s I’m I’m really
(23:12) excited uh not only have Robert coming but also Jordan I think they’re going to be fantastic and then the third speaker at this time we have’t announced but by the time this comes out so we’ve got uh Grant’s wife Elena Cardone coming and uh you know she she is bringing so much to the conference this year because you know most people don’t know this grant touched on it a little bit last year in the VIP room um but Elena was the person who pushed them to go big with everything and start raising money uh so
(23:40) we’re getting the the brains behind the operation so to speak and um she brings so much in terms of how couples can work together to build an Empire um and what and her roles in in the company and what she’s doing so really excited to have a really strong woman on stage and uh and yeah so she she is the third yeah I saw her speak at 10x conference back in Miami and she’s excellent and I think she has an important story to share yeah um like not every entrepreneur partner in the couple needs to be the person
(24:10) that’s out in front the face yeah right they’re like every you you agreed to we talk about loss but for example the gentleman who have the that that portfolio of Northern Ontario that’s failing is didn’t have anyone watching the business business closely to make sure everything was like running properly yeah yeah that and that’s so important and and quite honestly like the person behind the scenes is I I you could argue more important than the face right like you know even with our organization I’m the
(24:39) face but you know we you need to have really solid people in the background making sure that that person’s supported and they have everything they need right yeah like Batman has the Oracle like you know every everyone needs that person in the chair who spends most of their time in the chair to make sure everything’s okay yeah 100% so I think it’s going to be a really unique person perspective um that Elena is bring and you you can notice like each one of our Keynotes this year is has something different
(25:05) like a different spin or a different angle um because you know we want to make sure people are getting uh not just like the same message all the all the way through like everybody has something unique they can offer and depending on where you’re at in terms of scaling your portfolio or where you’re at um you can get something else uh from everybody so want to touch on your own your own investment Journey yeah this is I forget how many times you’ve been on the show now so anyone was U I don’t want to
(25:31) spend too much time on stuff you’ve already spoken about for example I believe the first episode we did together was I think like 2019 it was a while ago it was a while ago and the title was worst joint venture ever so folks wanted to see listen to that um yeah just just could you just give us like the 30 second version of yeah yeah so uh went through a a messy uh separation and basically lost uh everything and uh was the shittiest time of my life and uh started from complete scratch so you know we were kind of
(26:04) talking off air about um you know challenges when people have and how it actually like helps them perform better 100% so I kind of went through the ringer and uh a lot of really bad stuff happened but I survived out the other side and uh I would not be doing what I’m doing today if that hadn’t have happened had hadn’t have happened so in one way it was It was kind of good uh because it uh gave me a different perspective perspective on um on life and how things work and um quite I I tell everybody now they’re like oh that
(26:35) like aren’t you scared like running the conference and doing all this big stuff I’m like I really don’t give a anymore because if I survive that I can survive basically anything at this point right yeah and so to get some more context in history you had a portfolio of properties inario yeah yeah so so we did like lots of like we were doing like residential stuff um and then that kind of all blow up so listen to that podcast for all the the nitt nitty-gritty details um but yeah it was just a bad situation and uh that was uh liquidated
(27:08) and then uh basically started from square one so when you start from square one yeah I noticed you didn’t do anything else in Canada in terms of investing yeah yeah can you can you elaborate on the decision why not to do Ontario and I have all these Alberta Bulls tell me they why you to do Alberta yeah for sure so when when when that happened I already knew I wanted to do multif family and apartment buildings that that’s really where I was where they have those in Canada you know sth I don’t know if
(27:40) anyone told you they do but I I think and this is kind of what I found and you know when we’re raising cap like interest little bit of um a tangent here but when we’re raising money for a deal we found that an American investor will make a decision quicker and invest more money a Canadian so like we yeah we’ve got and even like even with the conference like we track all this stuff a Canadian will take usually two weeks longer from becoming a lead before they purchase than an American so like very
(28:14) different um outlooks and um you know personalities like obviously it’s a generality but um but that that’s that’s on on the whole it’s not the first I heard generally Americans are more entrepreneurial they more risks 100% including their government will take more risks as well 100% so you know when I started looking for people to help me and teach me the apartment building investing side um I went I went to the states um a couple reasons number one I I didn’t really know or I I didn’t know
(28:44) of any larger person um in Canada doing it at at a large scale obviously there are people doing it but I didn’t know at the time um and a lot of them are buying in the states anyway yeah exactly exactly and I remember I won’t mention but I I bought this like apartment building investing course uh from a very well-known organization and I got a binder in the mail so it was this huge thick binder and it it was like I think 1,500 bucks or something like that and I was like are you kidding me I just paid
(29:14) ,500 bucks for this binder I was like there’s got to be a better way so um I I found a couple uh people who were doing it at scale in the US and uh I never really looked back so all of the the kind of the training stuff the the side kind of scoop I I’ve got was always us focused and to me it makes a lot of sense you look at Canada versus the us we are a drop in the bucket just population size GDP like there is no comparison a and um you know so so if you’re looking to uh you know build a sizable portfolio and you know raise a
(29:51) lot of capital yeah you can do it in Canada but like we just want to go to the bigger market and it made a lot of sense and and just add to that making more sense like you mentioned GDP so then I’ll just go further like GDP per capita oh for sure meaning per person 100% And then you add to that each American generally costs less than a Canadian as well yes for example uh you probably like what is the minimum wage for Florida so for example minimum wage in Texas is 725 an hour very different from Ontario which is about $10 versus
(30:21) what is in Ontario 16 oh maybe even 16 and change I’m so yeah end of the day well yeah so a minimum wage a Canadian is in Ontario is 60% more costs more oh 100% like our labor is more expensive our we can argue that our government policy makes the cost of living more expensive like we can that’s a totally different episode but yeah 100% and other add to that like I think most people are familiar with um where immigration comes from in in the States and it’s generally it’s generally lower end yeah and while people I’m not going
(30:53) to get political yeah let’s just straight talk straight economics an economy Ben benefits from lower end like so for example to Canada our our our our skill level is quite ubiquitous it’s quite even we don’t have that lower end y but we need we need it though we need it right I don’t need someone with a University degree to make my burger yeah right I you know someone who has that who’s worth 725 an hour should have that job yep right and equivalent would be $10 an hour in here someone should have
(31:25) that job and then the economy all moves better yeah 100% % and the Americans are full have plenty of that oh 100% And and then you just like this is the thing that really like when you when you uh when you’re looking for a visual pull up a list of all the Canadian major metros with over a million people yeah it’s a short list yeah you especially if it’s two yeah 100% there only three there’s only three cities which is insane then you look at uh pull up the US list major metros over a million people insane and
(31:56) and and that just shows you how small we really are um so and you look at and it’s not just like in real estate in business like as soon as you can and if a Canadian company can enter the US market the potential is so much greater let’s just give a quick example we were talking before we’re recording yeah so I want a question to The Listener to our 17 listeners which city do you think is bigger in terms of like Greater Vancouver Greater Vancouver I’m going to talk to the camera okay all right which
(32:23) city is bigger Greater Vancouver or greater Tampa Bay Florida put it in the chat before we give the answer put it in put it in so for the listener I want you to like think about it like so which one do you think is bigger but the fact that I’m asking I’m pretty sure I’m going to guess which one’s bigger yeah so what remind me what was Tampa what was Tampa again Tampa is what 2.
(32:43) 3 million I think oh no 3.2 I think you said 3.2 before recording before recording and then I CU I think I messed you up cuz uh cuz Vancouver is about 2.7 that that’s right yeah and then uh I I me uh and then DFW was 7.6 Lord is that big yeah 7.6 for the for the MSA yeah so that that’s Dallas Fort Worth and Arlington that’s see that’s big than great Toronto area oh huge right so like that’s that’s just like that’s just one city yeah our economic capital yeah of Canada is smaller than Dallas Fort Worth Texas
(33:16) yeah and and you look at um and then you want compare GDP it’s not but you look at just the State of Florida right so it’s it’s insane so you know with us and obviously you know we have big aspirations right and and so um for for all of those reasons it makes more sense for us to help Canadians move their Capital to the States because there’s a a large interest in that and then if your priority is to maximize your return reduce your risk it makes a lot of sense oh for sure like like we’re
(33:47) talking about real estate yeah why not invest in the largest capitalistic Juggernaut there is in the world the USA right yeah and then like you I’ve talked about this many times like Texas is they have like I forget like they’re bringing like 6,000 jobs on just in record ship manufacturing might be eight and just and so the amount of job growth just in Texas alone is just ridiculous yeah yeah and and and you look at those types of States you know people are kind of fleeing the coast uh because of you know
(34:14) policy and affordability so if you have a family and natural disasters yeah and and natural disasters yeah so you know like like you’re looking for you’re looking for work you’re looking for an affordable place to raise a family you’re looking for you know a good community um yeah so like there’s so much opportunity um in those States and you know we look at Canada then we can talk about you know the whole rent control thing so in Ontario BC like you know you’ve got provincewide rent control in
(34:43) the states you’ve got rent control in California but rent control in California isn’t as onerous as rent control in Ontario really every everybody complains about rent control in California yeah well they don’t know that in Ontario it’s it’s even worse right so um you know just on the the what is rank control in California um so rank control in California um I don’t want to misspeak here but I’m pretty sure it is tied uh to some type of index um you know I’m going to say something wrong here because we don’t
(35:18) even look in California but but in terms of like the comparison when I went through step by step it’s like oh um like Ontario um is a lot more onerous in terms of like the restrictions and everything so I don’t want to misspeak but that’s okay yeah for sure cuz rent control is also a broad term just like rental licensing it’s it’s it’s every every municipality does it differently for example there’s one state in this in the US I don’t remember the name of it but the rent control is you may not go
(35:43) over 10% rent increase exactly which is okay that’s pretty good yeah yeah so and then then we can look at the history of rent control right so we have to go all the way back to World War I when rank control was instituted on a massive scale but that was because we were re bu Europe was rebuilding from World War I like it was destroyed we have rent control government steps in and government stepped in in terms of many different uh produce Industries and everything too um but that’s really where it started um and then it’s a good
(36:13) talking point with in the elections it sounds good but if you look like there’s a number of studies that show that I’ve looked at it a a market without rent control rents are actually more affordable and you have a better product uh because you have more incentive for people to to reinvest so yeah we can go on that tangent forever uh I I want to go more tactical cuz you’re actually living it CU your your properties in the states I imagine because you’re talking about Sun Belt yeah for sure Sun Bel is
(36:40) from what I’m reading on Twitter uh shout out Jordan Jordan Parson sorry uh shout out Jason Parson’s on Twitter who who’s in the space his tweets are excellent there there wonderful reports he puts out there from what I’m reading is that there’s because um just like the pendulum swings when when the Sun Belt stat got really hot a lot of Builder developers were building building these properties whatnot and so they right now they’re at a point of overbuilt yep and so rents have come down and there’s no rent control but I
(37:10) just said rents have come down yeah the the market takes care of itself like like that and and yeah so depending you know you look at places like Orlando you’ve got over supply for sure um but you know the market that’s the E and flow yeah um and and that’s what creates opportunities um no matter which state of the cycle you’re in like there’s opportunity as long as you’re in it for the long the long term right yeah so can you share What markets are focused in and why yeah so we’re we are really hot
(37:38) on Tampa right like we are trying so hard um to to get into Tampa uh right now uh we feel there’s a lot of Runway left we like the markets um we we like we like the area we like what’s going on in terms of the economy we we like the policy in place um so we are fighting tooth and nail um to get to Tampa so we we should have a uh an announcement to make pretty soon on that but like we are working so hard uh to get to get in there imagine you’re not the only ones like Tampa Tampa’s been growing like
(38:10) crazy oh for for sure yeah there there is a a fair amount of competition for sure like it’s like any market right any any Market that has uh a lot of Runway left like you’re going to be competing there uh so Paul our Acquisitions director he’s been working really hard um and you know he’s he looks at like every deal there is um also like we we we’ll look at at a number of other different markets in around Florida um but yeah we we are trying so hard to get our first one in Tampa what what kind of property are you
(38:41) looking for in Tampa yeah so our buy box is uh to Value ad Class B type of asset um and we’ll look at anything from 100 units to about 300 units uh give or take um and uh and that that’s a range where we feel really confident in so we’re able to do the there uh that that’s within our skill sets and uh we’re looking for that traditional value ad so we’re we can come in uh depending on some of the deals uh that we’ve been looking at um it’s either an operational play or there’s a fiscal Improvement
(39:11) side oftentimes the combination of uh of both but we’re we’re looking for a place where we can acquire the asset you know add some give something back to the to the community uh make it better um and and improve it for everybody so uh not only for us and our investors but also the people living there right we’re giving them safer better housing can you elaborate what a b-class property is oh for for sure so when we’re talking about uh commercial real estate and in multif family specifically you’ll hear all
(39:41) sorts of um you know ways of describing things but generally speaking you’ll have uh class ablea which is going to be the best location in a major Metropolitan uh City Center like the best location there ever is that that’s the class ablea brand new asset then you have a class A asset generally you’re going to be within 10 years old uh topof thee line amenities uh you know everything’s like topnotch like it’s a great location great building top quality you can probably attract doctors and lawyers as for sure yeah yeah you
(40:14) that that’s that’s you’re going to have your higher income people there that’s where depending on the market you’ll have like your granite countertops like really nice stuff Class B is going to be you know let’s call it you know that 20 year old year old type of um type of range uh it used to be a Class A but now it’s just older uh you won’t have the same modern amenities because it’s you know 20 years removed uh but still solid property good location it’s just a little bit older you have a little bit
(40:40) of deferred maintenance there that you have to go in and that’s that’s really what we’re looking for that good quality asset where we can come in and proof it bring it up maybe it’s got the last time the kitchens were done was you know 2005 so we can come in and uh and improve it do the kitchen Rena you know change Landscaping bring it back uh to life that type of thing then you have class C and class D Class C you have more deferred maintenance like you can tell when you see it it’s like ah it needs
(41:08) some love uh amenities are very few because it is older um and then class D like you’ve got it’s it’s really rough at that point yeah so so those are the different classes so we really like to live in that class b space you know good quality assets uh stable assets we’re not acquiring a place where there’s like 20% occupancy where you have to go in with a bulletproof vest or anything like that but uh but yeah good quality assets and good locations something went very wrong if you’re only at 20% vacas something is
(41:41) very wrong like City housing were or like sometimes you have a flyers rip through like a bunch of buildings and stuff and roof is leaked or massive infestation of some sort yeah and and those are heavy lifts and that that’s that’s not Power by box at all like there’s people who will take those on and uh that’s all the power to them but that’s not kind of what we’re box is the corporate lingo for this these are our field posts buy within it yeah for sure because when we’re uh meeting with um a
(42:13) new potential relationship in terms of on the on the brokerage side or a lender they usually ask hey what’s your buy box basically they’re saying hey what are you looking for and to talk like a pro you need to know the lingo yeah yeah you kind of throw the lingo around but yeah it’s just uh looking for that 100 to 300 unit range Class B traditional value ad that that’s really our uh bread and butter any amenities you’re adding and and ke you share what they are would be yeah yeah right so um like adding a gym
(42:41) perfect right because especially when you have markets where you have a younger demographic moving in you know people work out now like like you need a gym and that one treadmill in the corner doesn’t cut it so uh at a gym uh you can uh replace you know tennis courts are you know kind of P so take out the tennis court put pickle ball yeah pickle ball yeah pickle ball uh I’m just joking is that really a thing well actually there have been some properties um where they have uh they’ve put the pickle ball
(43:13) on the tennis court so nobody plays tennis anymore so that that is true um and then you know you can take out those tennis courts uh you can add a playround if you have lots of families on site or you can add a barbecue pit you know I love the barbecue like I love barbecue so do you I I see all the briskets you do so well especially if you’re in Texas or Florida florians love barbecue too they do I so I’m I’m heading to Miami on Thursday and we’re hitting up a new barbecue place for the entire trip so um
(43:42) yeah so B basically you want to look at your tenant profile and really understand hey like what do these people need like what’s going to attract them and if it’s not a tennis court well what types of people are living here are they f are their families well yeah well throw in a splash pad throw in thrown a playground you know make it a community people want to live um that type of stuff yeah yeah I like the barbecue I enjoy it and also all my guests love it oh for sure Barbecue Pit so you know let’s say you know you have a younger
(44:12) demographic um you know like in their late 20s and 30s you you got some families but throw in a couple barbecue pits make it really nice add some pergolas some seating around the family can come down you can cook on the grill you can have a little party it’s great for Community appreciation nights so you can bring in a couple chefs they’ll cook food for all the residents there like you can make it good right yeah uh is there more to a buy box like is there a price per unit is there a cap rate you want to get in at then what you want to
(44:44) uh your arv all those sort of things yeah good good question so we don’t really look at cap rate um that’s not really we’re going to offend some people well yeah all about the C oh man so and generally so all the most I’ve been very fortunate in that I’ve been able to build relationships with some very successful uh multif family investors are very very successful and I don’t ever hear them talk about cap rate so there must be something to that uh they’re looking for hey how can I create
(45:16) value in the deal that’s what they’re focus on and what can I control because we can’t control interest rates we can’t control government policy but what you can control is what you buy the property at what Renovations you do when you do the renovations like your business plan your marketing you can control that stuff so that’s what they focus on so you know price per unit again like that’s so subjective because you know price per unit you could have uh you know a B+ versus a B minus asset the price per
(45:47) unit is going to be different so you have to look at a number of different metrics right you have to look at your irr for the deal internal rate of return uh you have to look at your cash on cash cuz that’s going to give your you your annual uh return and then you want to look at your Equity multiples like we attack it from price per square foot we look at you attack it from all sorts of different ways because each metric will give you a tell you the same story in a different way yes um so yeah we we don’t
(46:14) look at cap like need SLE data points to make a decision 100% it’s not like oh yeah we we only buy at a six cap well but why though like like what what does that mean um so yeah so B basically what we’re looking for is we’re looking for a good quality asset and a good location maybe there’s been some mismanagement maybe it’s part of a greater portfolio and it wasn’t getting the love and attention it needed you know maybe uh maybe we see an angle where we can improve the marketing maybe we see a
(46:44) trend in the area where you know that asset hasn’t caught on to it so hey if we make these changes we can attract this huge demographic that’s now moving in so it’s really like any business like what’s your SWAT analysis like what can offer um and what what changes can you make in the deal that other people aren’t necessarily seeing all right slat strengths weaknesses opportunities uh threats yeah 100% right so and you know if you’re acquiring an asset and across the street is a brand new you know 450
(47:14) unit class doublea asset and you’re you’re looking to take your B+ asset to an a you know that’s going to be a huge threat so you probably don’t want to do that but if you have a class you know a Class A ass across the street and you’re in that class B totally different markets and you’ll actually get business from the class a asset when you when they price people out they’ll come over so you have to you have to look at everything together so it’s hard to say yeah you know I only buy at a eight cap
(47:43) well like that’s not a I would argue that’s not a sophisticated way of looking at real estate like you’re pigeon holding yourself on one metric and and you’re missing out on what’s really going on right yeah and we talk about loss we talk about lost before recording during this as well like for example the folks who are you know losing their shirts up in Northern Ontario like I don’t think they probably understood their irr nor nor their internal rate of return nor their cash on cash yeah because if you’re sitting
(48:12) vacant there ain’t no cash on cash no there a negative cash on cash yeah and like even irr so like a lot of investors um on the lp side so you know passive investors you know one of the first questions they’ll ask is hey like what’s the irr what’s the Equity multiple in the deal but like irr tells such an important story because it tells you the time value of money for like you know how the money’s locked into the deal right so you know I I always use examples where hey like here’s deal a
(48:40) you get x amount per year or he’s here’s deal B you get a slightly larger Chunk in year two and then you make a little bit less money while the irr is actually higher because you have more Capital being returned sooner and then there’s opportunity costs you can invest in different opportunities and all that kind of stuff so um yeah so whenever we’re speaking with people it you have to tell the whole story so you’re looking at many many different things I hope all investors appreciate irr
(49:05) internal rate return is incredibly important when whenever you’re going to whenever your investment plan has includes a refinance 100% some return of capital 100% because like a straight return on investment calculation do you are you doing the return on calculation based on today or after refinance yeah well and and that’s that’s the thing too so what we found is cuz as markets get tighter um like our rule of thumb is we never never never promise a refinance in a deal ever because it may or may not
(49:36) happen we just saw this the past couple years so if your deal uh like lives or dies based on a refinance that’s not a good deal right because that refi may not be happening so when you’re looking at your irr you want to look at irr without the refi and then you have your best case scenario hey if we do refinancing your three this is what your irr will look at at that point uh but you never never never want to bank on having the refi refinance cuz it it may not happen MH yeah so we’re talking a lot about us investing right now and you
(50:08) actually have data to back that up like for example before we’re recording you mentioned uh 70% of your audience wants to hear about us investing oh yeah yeah with the conference huge huge appetite huge appetite and and this is majority of Canadians you’re surveying as well yeah yeah yeah yeah that’s how Canadian audience so I’ll apologize I know that I know this is a Canadian real estate show but a like 90% of my audience wants to hear about us investing and you have 70% want to hear about us investing huge
(50:36) topic so apologies we’re not talking about Canada right now we’re talking about Canadians investing in the US yeah and you look at you know content we produce and everything every time we talk about us investing for Canadians it pops every single time so there is a huge demand for for that knowledge and quite honestly I I think it’s a number of things number one obviously the lies and all that kind of stuff but also the um there’s not a lot if you’re a Canadian looking to invest in the US
(51:04) there’s not a a lot of good material there to help you because 99.9% of stuff is made for a US audience so if you’re Canadian it NE it doesn’t necessarily line up with what’s best for a Canadian investing in the US so if we’re able to produce top quality content like you know you do a lot of stuff like we pump out a lot of stuff too if we’re able to deliver quality content geared towards Canadians I I think that’s a a missing link or a missing piece right now in the marketplace and I we mentioned GDP
(51:36) earlier the GDP of Texas is actually very close to the country of Canada oh yeah pretty much and that’s one state that’s is one state the population of Texas is around 30 million yeah and the population of Canada is almost 40 million it’s over 40 million now but Bas the GDP numbers are a little bit older so I’m trying to match up population yeah so again the the Americans have like 25% less population than us in the same GDP state of Texas alone yeah it’s like it’s insane like the research all
(52:07) points to One Direction really oh 100% 100% the only thing the only biggest benefit we have is the biggest benefit to a Canadian investor especially Ontario or BC is that we can’t build for whatever reason we can’t build fast enough so then a for that restricts Supply artificially restricts Supply hence we have uh you have a demine supply balance which drives prices up for for sure and you know there we can go even deeper in that but like it’s not like the the housing crisis isn’t just reserved for Canadians like there’s a
(52:39) housing CR like you look in the states like there are markets where it’s hard to get a home like it is a challenge it’s a North American challenge right and Grant’s Grant’s been Grant in his uh his 2024 review was like he said like we’re really short on building oh huge and this year’s and this year is just just we have we have Americans have similar problems that we do because rates are high they’re not investing they’re not building Y and this will C this will bite them on the butt oh for
(53:03) for sure like we have such a housing deficit right now in ter in terms of like starts that have to happen and and this is a problem that’s going to be around for the next hundred years like it’s not going away it’s not going to get better either because the Americans have trouble Staffing builds as well no different than us yep yeah we need trades we need qual we need competent people who who are trained 100% yeah but the Americans have an advantage in recruiting trades over us well they do 100% 100% um and like that’s and we can
(53:32) talk about like how um how governments are angling in terms of who they want to attract and everything but uh yeah for sure so I want to bring it I know you’re you know you’re big and fancy buying 100 300 units at a time I want to we have a lot of young listeners like who are like you know under even under age of 30 nice so say you were 25 years old what would what would be the first property you buy oh man yeah so if I could go in a time machine yeah I would erase the first like 10 years of me in real estate um
(54:02) and so if I could go back and here’s Seth like reading books trying to learn about real estate investing I would slap myself a little bit and say don’t worry about a house buy an apartment building like first first deal and like this is a little bit like controversial but a lot of people say oh well I want to start with something small because it’s safer I argue the bigger deal is safer than the smaller one so hear me out if if you’re listening right now and you’re like oh that’s crazy give me a minute to
(54:30) explain so what a lot of people do they’ll buy their first investment property maybe it’s a single family home a duplex uh they have to qualify for the loan on their own right because it’s based on their income the bank doesn’t really care about the income produced by the property the cash flow is going to be so tight number one it doesn’t give you much wiggle room but also um like you’re not able to afford Real Property Management because you have to self-manage because the property doesn’t
(54:54) produce enough uh cash flow and there’s a good chance you’re screwed up exactly right so so right off and then if like a duplex one tenant moves out there goes 50% of your Revenue yeah so for all those reasons like yeah sure the purchase price is smaller but you’re doing a loan you have no idea what you’re doing you’re going to mess up and then you have no like wiggle room like you’re screwed if you make a mistake like I I remember with one duplex you know we had an $88,000 repair bill
(55:20) because of the drain out to the Sewer the a tree route like busted through it 8 Grand that was like three years of cash flow on this property gone yeah right now you go on an apartment building it doesn’t have to be huge maybe it’s a 25 unit building much stronger cash flow different types of debt you can get on there right you’re able to have Professional Management because there’s enough money to pay the person so even if you’re new you have a manager who’s probably managed 10,000 units they can
(55:47) guide you and help you out and plus because the deal is bigger there’s probably enough meet on bone to partner with somebody who’s done at least a couple deals and you guys can do the deal together and everybody’s better off it’s more stable you have you have better cash like all those reasons so for now like if I could go back in time I would push myself hey get educated about this world of real estate like understand how it works and then go do a big deal right off the bat like 100% What markets are
(56:17) we looking at for this example hypothetical 25 unit building it doesn’t matter like the the markets irrelevant um you know I have friends who are crushing it and California I have friends crushing it in you know the Tennessee like the Market’s not important it’s more the market will impact your business plan and and what you place important like what’s important to you if you’re a cash flow person and like you don’t really care too much about appreciation you can go in into you know some Midwestern Market
(56:49) well the mid Midwest is is pretty hot but like you have to find out what’s important to you what your goals are for investing and then you want to find a market that that kind of fits that right um I think most people are more interested in cash flow these days of rates being so high for sure well cashow probably not so California is likely off the table well cash flow is the lifeblood of a real estate deal you need the cash flow um so but you want to look at a market that can support itself that is diverse in terms of its economy you
(57:16) don’t you just don’t want an agricultural based economy there there’s not diversity there or you just don’t want oil and gas like you need a mix uh you need a a growth in uh in terms of the population in the right demographic so if it’s the over 55 age group maybe you might want to think twice unless you’re in senior living right but you want to have those young workers who are in the prime working years of Their Lives who are going to have the families like who are going to contribute to the
(57:43) economy like they’re moving there to work so you want to have good government policy in terms of uh job creation and how they treat business uh preferably you have a city or an area that is actively trying to recruit businesses to move uh you get lots of incentives like that that’s the type of stuff you’re looking for um because if if you’re talking with an investor and saying hey Mr Mrs investor you know I have this deal it’s in this market this is what it looks like but oh like the the market we
(58:13) losing 5% of people every year like bad Market yeah like like you want to have some Sizzle in there oh yeah like our Market is has been in the top 10 for growth in the entire country for the past 5 years state of Texas 100% right like like like you want a growing economy and that’s what’s going to push um push your deal um give you that extra like push uh behind your sales so that was a long very long answer but I think most people can appreciate like where would a young family or young person want to want to move to yeah 100% right
(58:45) yeah and then generally those they want opportunity they want to pay less tax they want lifestyle yep so generally that means includes good weather great nature good schools those are the yeah 100% right so it’s not that hard no there’s honestly like there’s there’s like 20 Fant there’s at least 20 fantastic cities we would we’d both invest in oh for for sure like and like I I’m in that demographic now well I’m almost 40 almost there but it’s like where would I want to live like with my
(59:14) family it makes it really easy I wouldn’t want to move to California no no definitely not but but like you just ask yourself so if you’re 25 like do the market research and and the the thing I I’ve kind of learned the longer I I’m involved in this is like it’s not rocket science you you just have to be that much better than everybody else so a lot of people getting involved in real estate they’re like oh well you know like I’ll just kind of learn no like like really understand what how money is
(59:43) made in real estate understand the markets like what drives real estate what are the top investors what are they doing how do they look at properties if you’re 25 and you can nail that like you have such an advantage over over the 80% it’s that 8020 per principle all those poor people buying preconstruction condos like you have such an advantage and then if you’re able to have um you know a a an investor conversation with somebody and you’re able to follow that and deliver value to that person and and
(1:00:14) present things in the right way and have and and demonstrate your confidence and your knowledge it goes such a long way that’s oh so you mentioned like if when you find the pro the deal you want in Tampa for example yeah you’re going to raise the capital can you elaborate on what is a right mix of uh cash versus U mortgage oh yeah yeah so um it’s going to depend on the deal itself because there’s there’s wiggle room there but generally speaking we’re looking at you know a 7030 a 6040 uh so what I mean by that is we
(1:00:51) have a 60% debt 40% Equity or 70% debt 30% Equity um at no time do we like you hear people online talking talking about oh yeah I can get a 90% LTV through whatever program well yeah but that doesn’t really insulate yourself uh so you have to protect the deal and you need that Equity buffer um let’s just elaborate on that because some folks missed the missed that point with the the poor folks with the all the vacant properties in Northern Ontario and it’s not just them there’s other there’s
(1:01:24) other issues out there uh but I just want to elaborate on those deals specifically because those are 100% loan to value yeah there’s a for First Mortgage I don’t know what the rates are I’m going to guess six yep which is still expensive the seconds are like eight which bring you up to I don’t even know I think that brings up doesn’t matter and then there’s promissary notes that are paying like 177% y right so there’s no equity in these deals so just elaborate how Equity gives you buffer is
(1:01:52) you don’t you’re not paying any interest on the equity piece exactly which keeps payments lower yeah 100% And depending on depending on how you structure the deal like you’ll have returns that get paid own and everything but it’s a split on the profits of the deal and and really at the end of the day people get themselves in trouble with lenders because the lender wants to make sure that their money comes back to them so and that’s why lenders look for a debt service coverage ratio of like one and a
(1:02:16) quarter and what I mean by debt service coverage ratio is hey like how much Surplus does the property produce in excess of your debt service requirements so mortgage payments so A lender is going to want about a buck and a quarter one and a qu so that way on the day of acquisition that they yeah wow so so that that way um like they have that that wiggle room so in case like something happens with the property occupancy drop something like that they know they have a buffer because if you’re going in at let’s say 90% debt
(1:02:49) that buffer is so small so all it takes is a a dip in the market now the lender scared and now you start uh the ugly legal stuff that nobody wants uh so you need to have that uh that buffer there cuz at the end of the day let’s say worst case scenario you’re planning to to exit in year five and the market is the worst Market we have ever seen you have Equity built up in the deal like you can you can weather that storm um the last thing you want is that gun to your head which is where a lot of operators are um or got into last year
(1:03:21) where you have short-term debt expensive debt Market shifted now they can’t get out of that into conventional and you’re stuck it’s either you sell out a loss or you’re like taken to the cleaners so um yeah so so you want to make sure you’re you’re being safe with it and again no one went bankrupt for having too much Equity no no for for sure right and and so that that should be a red flag if you’re looking at an investment opportunity and they’re telling you oh yeah we’ve got 90% debt yeah maybe the
(1:03:48) numbers look good on a spreadsheet but in real life that’s not really how it works so this is likely the challenge both of you and I are running into as well because there’s a lot of marketing out there courses that are like heavy heavy debt oh yeah investment strategies so like I get people asking me like because my I’m like my plan is to put like 30 30 4 to 30 to 45% down on properties in cash yeah and people are saying why so high like what do you mean High I’m trying to at least Break Even
(1:04:14) yeah how low can you go yeah exactly and and it’s you know you always have to assume like what’s the worst case scenario and this is where Paul on our team like he’s really good at this kind of stuff like we we have our model and we try and break it so we have our underrating model hey this is our forecast for the next five years for the for the asset well now like how can we break this and make the deal fall apart and then we want to shore up those weaknesses and so yeah going in with high debt is really good if everything’s
(1:04:41) great but if if everything’s going to be perfect right like but like nothing ever like uh goes perfectly so you have to expect some choppy waterers in there and what happens like right yeah yeah yeah be a little weather storms yeah and everyone who had the storms usually have heavy heavy Equity or massive cash reserves or on the small scale people still have their day jobs and their six figure jobs so money’s still coming in yep 100% all right uh Seth you’ve been so generous with your time where can people
(1:05:12) learn more about uh multif Family Conference yeah the best way about the conference is just go to multifamily sen new speakers and uh yeah it’s May 24th to 26th in Toronto so it’s coming up pretty soon fantastic I can’t wait to be there it’s like a reunion it is yeah yeah it’s unfortunately like you’re just mad bit everyone wants your time that day but uh for the for the Schmo like me just it’s just nice to see all my friends there well you’re a celebrity so no no hardly not like not like the
(1:05:49) folks on your stage and uh your podcast is restarting yeah yeah so we’ve uh we ran for like 450 episodes before yeah yeah it it ran for a long time and then it just yeah so we totally knew uh we’re taking a different angle on it and it’s called the cool podcast so because you know one of the things before is we were we were just real estate and I I didn’t think it uh I didn’t feel it gave me the leeway to talk with some really interesting people who I wanted to speak with so now we’re uh talking with people
(1:06:21) who are pushing boundaries in their niches and in their spaces real estate but also you know we just interviewed um a a really cool musical artist um about kind of how the music industry works and how she’s uh making Headway there so like that’s really cool stuff to me so um it’s more General business and that aligns well with all the stuff we’re doing on on my end too yeah it was in the news that Rod Stewart estimate no one knows like these are private deals but Rod Stewart sold his uh his his song
(1:06:52) catalog for 100 million it’s it’s insane and actually we were just golfing at the golf simulator with with a guy who who on his shelf he has like music rights like it’s a fund and I think that’s so cool um and and so yeah we can talk with people about that and uh I just want to speak with people who are doing really cool in in their space yeah who are making money like yeah making money is to me to me nothing nothing more fun than making money yeah Seth thanks very much for doing this oh I always want to
(1:07:23) give my guest a final chance a final like the final a word any final thoughts like we’re like we’re recording this February 20th y a lot of turmoil right now actually inflation I don’t know if you probably I don’t know if you caught this morning um Canada’s inflation rate came in well below expected 2.
(1:07:40) 9 oh no I did not see that it it just broke this morning from Scotts can so uh yeah things might be picking up real soon yeah well we um like it was kind of interesting so uh like Grant and Alex last year at the conference uh both of them had really big targets for the next you know 12 18 months like Grant wants to double his portfolio and I I think you know the opportunity presenting itself now uh I think we’re setting ourselves up if you take some action now you know two three years from now I I think you’re in a really really good
(1:08:12) spot yeah yeah I know you didn’t have this dragon or sorry shark Barbara corkran was saying that the American Market’s going to bounce back as soon as we have Cuts yeah which are expected for pretty soon that’s actually weird because we Canada cut first sorry Canada increase rates first yeah and like everyone was expecting the Canada to cut before the Americans but right now it’s looking like the Americans might cut before we yeah and then depending on election results too like uh you know depending on who gets in like you can I
(1:08:37) I would expect some pretty aggressive policy if uh if the Donald gets in there to kick poli’s already aggressive well yeah but like it’s the Donald like he’ll go in and one more can you do and yeah and if because long-term forecast already for the I promise you the last words I don’t know if you what your research is showing me but my research for the Canadian dollar is it is expected to perform poorly against the US dollar yeah yeah and that’s you know over the long term yeah yeah and like all the
(1:09:10) like we talk with people who are way smarter than like I’m like down here we’ like we talk with really smart people and they they concur with exactly what you’re saying cuz like so how Canada benefits from the US growth is you know we build our pipelines we we get our and we mine our minerals yeah like we’re still the the heers of the land and the Sea like we’re not we’re not investing we’re not building anything no we’re just harvesting what we got in the ground I I want my money in USD 100% yeah yeah yeah
(1:09:41) cuz like yeah I promise you the last word but it’s all good but like I was playing with the we were playing with Google’s uh AI tool um I forget the name of it it used to be called Bard it’s they renamed it like genesis or something like that whatever but it’s like wow this is pretty impressive and I was already like over the top of chat gbt and like yeah and then and then open AI came out with the stop me if you heard this before open AI just released that that they can now do text to video
(1:10:08) did you see video yes I saw that yeah they had um they had two pirate ship sailing in a coffee cup and um yeah yeah that that’s really cool so it was absolutely insane did you see the one where like the text promp was like a drone video of gold brush California no I didn’t see that that one no it was absolutely insane yeah it was like your drone video going over the river and on each sides of the river is like housing and people dressed in that era yeah like and all in the prompt was just a few words yeah it’s like it’s incredible
(1:10:42) what’s going to happen over the next 10 years like I don’t think we’ll be able to recognize like marketing and creation of Assets in 10 years from now it’s going to be insane yeah and so where I’m going with this is like I’m not smart enough to build anything with AI or an AI tool or nothing like that yeah but what I do know is I saw an article that Sam Alman himself the president CEO whatever leader of CH open AI he’s trying to raise 10 billion to build microchip manufacturing because he still
(1:11:07) sees there’s going to be a shortage yeah we need our own microchips even though the Americans going to be building microchips like crazy yeah so I’m not smart enough to do like get make money out the microchip stuff and the AI stuff and all this sort of stuff but I’m smart enough to buy a house near one of these manufacturing facilities right so that you know these really smart people working at these places can rent from me or buy my house yeah exactly y I’m not going to over complicate anything yeah just keep it simple and
(1:11:35) collect the rent checks that’s all you have to do forget about it yeah I don’t to overthink this s thanks so much for doing this thanks for coming in thanks for having me and that that H uh looks really good so oh yeah for the folks who are listening Seth brought in swag so you know to encourage people to bring more wear swag I’m wearing swag while on the show thank you s sweet thanks everyone thank you for watching if you want to learn how to invest in real estate from scratch my team teaches beginners how to
(1:12:01) use the number one investment strategy that I personally use in a virtual free training class every month go to investor 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 trining doca youout thanks again for watching see you in the next video

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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 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 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 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!

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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 event.

Till next time, just do it because I believe in you.



As a committed advocate for transparent and responsible real estate investment, I want to openly share my involvement with SHARE SFR (Single Family Rental) as an Advisor. I hold an equity position in this company and receive a referral commission for clients I introduce to their services. My endorsement of their business model – focusing on direct ownership of positive cash flow income properties – is consistent with my own personal investing since 2005, is based not only on a professional assessment but also on my personal experience and belief in their approach. Please note that while I stand behind my recommendations, it is crucial for each individual to conduct their own due diligence and consider their unique circumstances before making any investment decisions. As always, my priority is to provide you with honest, insightful, and practical real estate investment education.
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