Welcome to the Truth About Real Estate Investing Show for Canadians!
I am Erwin Szeto, a full-time real estate professional since 2010, splitting time as an investor-specific Realtor and eight-figure portfolio real estate investor.
More important to the size of my portfolio is the financial peace that comes with it, and I want the same for all our investor clients and listeners of this show!
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My strategy is value investing through renovation and maximizing rents through densification.
One of the strategies we teach our clients is student rentals, and would it surprise you that we sold a townhouse in Thorold, Ontario, for $804,000 this past weekend?
Where is Thorold, Ontario, you ask?
It’s nearby Brock University, and Brock University students love living in the newer construction homes my clients own in the area.
What makes these houses special is they’re less old at eight years young.
I worked with the builder on the design, so the builder delivered to my client a six or seven-bedroom student rental with noise cancelling and fire retardant insulation in any shared walls and ceiling.
Basement is finished with two bedrooms featuring egress windows, fire code compliant for a person to climb out of in case of fire, and closet doors omitted, which saves money and one less thing to break.
Since the builder was delivering our clients a finished product, our clients were able to finance just about everything.
We paid around $315,000 for these purpose-built student rental townhouses, which rented out for $2,700.
Fast forward to today, market rent is closer to $4,900 per month, and as mentioned, we listed and sold for $804,000 for what was about a 1,500 sq ft townhouse.
Return on appreciation alone as it’s easy math: bought for $315k, assumed 25%, sold for $804,000.
The return is $490,000—a return on investment of over 620% over eight years via simple, boring, buy-and-hold real estate.
Never forget that making money is the objective. Not how many doors, or the current fad investment, or how many Instagram followers one has. Make money!
Congratulations to our client and the many others who continue to hold these properties – A nice boring, no-renovation property in massive demand by both buyers and tenants.
In my experience, that’s a winning investment.
If this meets your investment criteria, please let us know and reach out over email or social media dm.
But it’s not all sunshine and rainbows…
This week, I personally prepared an N4 and N8 for my tenant, who missed April’s rent and is persistently late.
I’m getting involved as I am operating without a personal assistant, and I think it’s important for managers to get into the details from time to time.
The tenant is very apologetic. I’m not too worried as I have her mother as a guarantor, who has a great job and pays rent on time.
I know because the mom is also my tenant, but I’ve noticed my tenant’s tone in our communication is very different with me vs. my assistant, as in she’s more polite to me.
It’s not fun having to threaten tenants with eviction, but if they’re not held accountable to the terms of the lease to pay on time, then they won’t.
Then rent is also about 30% under market, so she really shouldn’t be putting her cheap rent at risk either.
I know some are asking why we don’t automate… well we did, but money wasn’t in her account. Honestly, we’re likely being too nice, but she’s a single mom, and it’s been a few years, so we’re tolerating for now.
This is my daughter’s house too, so one day, it will be her job to play the role of landlord.
Speaking of my daughter, she came third place in her competitive speaking class!
My son didn’t win anything as, sadly, he inherited my habit of mumbling but yay, daughter!
Cherry, I and our families are all shy and quiet, and everyone knows public speaking, presentation skills, and verbal communication skills are all important; hence the kids are three years into public speaking classes, and the results have been awesome.
I’ll see my kids holding conversations with adults at social events, and they’re not shy like Cherry, and I were at their age.
Our experience has been good, so I’d recommend public speaking classes if your kids feel shy.
Speaking of public speaking, my team and I have presentations to give at the upcoming iWIN Meeting Online only.
We’ll be giving the same awesome economic and market updates investors need to know both east and west of the GTA.
AND we’re just about to confirm our guest speaker, and it will be either a multifamily investors expert who has retired thanks to their portfolio of hundreds of doors and does zero work…
OR a senior living/retirement home investor with over 20 years of experience and a fund. Whomever we have will be excellent, as that is the standard here at iWIN Real Estate.
The meeting will take place at 7:30 pm on Tuesday, April 18th, via Zoom
If live and in-person networking is more your thing, Saturday morning, April 22nd, we will be hosting the iWIN Mastermind Tour. We will:
- Meet for coffee at Hamilton’s #1 ranked coffee shop (BTW, the croissants are to die for),
- Tour the inside and outside of an income property or two,
- Followed by a mastermind lunch.
Our last iWIN Mastermind Tour sold out in only four days, so do not delay. The education and networking are excellent, the cost is $20 plus taxes and fees, and all profits go to charity.
Registration links will be sent to everyone on my email list.
If you’re not on my email list yet, go to www.truthaboutrealestateinvesting.ca, enter your name and email address on the right, and you are all set!
Multiple 6 Figure Incomes: Airbnb Arbitrage, A Million YouTube Subscribers, Selling Advertising, E-commerce Store With Matthew Varga
On to this week’s show!
This week we have Matthew Varga, who, together with his wife Nikole, have several six-figure ventures: a YouTube Channel HealthNut Nutrition Inc., with almost 1,000,000 subscribers for which they generate ad revenue, show sponsorships, and an engaged audience to market their e-commerce store towards…
A growing portfolio of real estate investment properties includes some that are AirBnb.
Matthew is also doing what’s called Airbnb arbitrage, which means he’s the long-term tenant to other investors, then furnishes and operates an Airbnb business in the property to make money to pay the rent and keep any remaining profits.
Airbnb arbitrage can be a great way for newer investors to break into the market, but not without risk. Matthew was kind enough to detail his wish list of features in order to command great rental rates before taking on an AirBnb arbitrage opportunity.
Matthew also recently returned from Florida as he now spends winters there to both avoid our cold winters and go looking for real estate opportunities, and he shares how he’s able to do so.
Adam, our Podcast Producer, said this is one of my best interviews.
I have no clue what I’m doing; hence we’re stuck at 17 listeners, but Matthew is young and successful, so I can’t recommend enough that you listen and take notes.
Please enjoy the show!
This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me. Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up. If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/events and register for our next FREE Online Training Class. We will be back in person once legally allowed to do so, but for now, we are 100% virtual.
No need for you to reinvent the wheel; we have our system down pat. Again that’s www.infinitywealth.ca/events and register for the FREE Online Training Class.
To Follow Matthew Varga:
YouTube: HealthNut Nutrition https://www.youtube.com/@HealthNutNutrition
HELP US OUT!
BEFORE YOU GO…
If you’re interested in being a successful real estate investor like those who have been featured on this podcast and our hundreds of successful clients please let us know.
It is our honour to give back and educate others on how we build cash flowing real estate portfolios using all the best practices shared on this podcast, from the lessons of our hundreds of clients and of course our own experience in owning investment real estate.
If you didn’t know already, we pride ourselves on being the best of the best real estate coaches, having the best property managers, contractors, handy people, cleaners, lawyers, accountants, everyone you need on your power team and we’re happy to share them with our clients to ensure your success.
New investor or seasoned veteran investor, we can help anyone by providing our award winning coaching services and this isn’t all talk.
We have been awarded Realtor of the Year to Investors in 2015 by the Real Estate Investment Network, 2016 by the Canadian Real Estate Wealth Magazine and again in 2017 because no one told the judges no one is supposed to win the award twice but on merit, our peers deemed us as the best. In 2018, we again won the same award by the Real Estate Investment Network.
Hopefully being the most decorated team of Realtors in Ontario will make you consider us for your first or next real estate investment. Even if you don’t invest in our areas, there’s a good chance I know who would be ideal for you.
I’ve been around for a while, some Realtors are talented at servicing investors there are many with great ethics. The intersection of the two, talent and ethics is limited to a handful in each city or town.
Only work with the best is what my father always taught me. If you’re interested, drop us an email at email@example.com.
I hope to meet you at one of our meetups soon.
Again that’s firstname.lastname@example.org
Infinity Wealth Investment Network – would you like to know how our investors returned 341.8% on positive cash flowing real estate over the last five years? On average, that was 68.4% per year.
Just imagine what winning in real estate could do for you.
If you would like to know how we did it, ask us how by calling 289-288-5019 or email us at email@example.com.
Don’t delay, the top markets we focus in are trending upward in price, so you can pay today’s price or tomorrow’s price.
Till next time, just do it because I believe in you.
Hamilton, St. Catharines and Toronto Land Development, Real Estate Investor, and soon to be builder.