At lunch last weekend at the sold-out iWIN MasterMind Tour in Hamilton, a Toronto condo investor shared with me that he is cash flow negative of $1,200 per month on his condo.
Worse, he has a second condo negative, $1,000 per month. That’s negative $2,200 per month. I think golf is expensive at $80-100 per round.
Just to reiterate my stance on condo investing and negative cash flow investing in general. For the select few independent, top 1-2% income earners, or my good friend James “Money Baggs” Maggs, who has a portfolio of income properties flush with cash flow; sure, new construction condos can work.
For most Canadians, most of the time, it’s not an ideal investment, and unfortunately, I’m hearing about it a couple times per week from folks reaching out to me on what to do.
My view of selling is to only sell investments if I have better use of the money.
There are many things I would rather do with $1,200 per month than write cheques each month to subsidize my tenant’s living.
My team is also finding amazing deals to invest in from Kingston to Niagara Falls, taking advantage of Bill 23 to add density to income properties to improve cash flow and the value of the property.
Add to that, the smart money is expecting both Canada and the US to raise rates at least one more time, and the Bank of Canada seems committed to their 2% inflation target, so we’re looking at 12 months at these high rates.
This is hardly a market many buyers want to be getting into, AND summer is traditionally a low season for real estate.
So if it were me, I’d sell the negative cash flow property and rotate the investment capital into a quality, small multi-family income property in a town with a diverse economy, a post-secondary school where tenant demand is high.
That generally excludes small towns anywhere.
If you need help to invest like our 45+ self-made, investor millionaire clients, please do reach out.
My team and I are licensed Realtors and are happy to consult with you on how to rebalance your investment portfolio to stop the bleeding and possibly set you up for future success.
Happy Canada Day, everyone!!
Happy birthday to the greatest country in the world!!No, Canada’s not perfect, but we are generally making progress.
The people are honestly one of the best parts of Canada; compared to other parts of the world, we Canadians are incredibly accepting, multicultural, and low crime, and there’s a ton of opportunity for those who make investing a priority.
My son was born hours after Canada Day on July 2nd.
I literally watched fireworks from the hospital window eight years ago while Cherry was in labour in the hospital bed, so I had a weekend of celebration.
I may have fibbed to my son that the fireworks in our neighbourhood with a $4,000 budget were meant for him. Speaking of multicultural, the organizers are my clients; one is Filipino, and the other is Indian.
We all love making money, love our families, cry when the Leafs lose, and we love this country!
For four consecutive days, we had company coming over for pool and birthday parties, and to feed them, I smoked some chicken, wings, pulled pork, and a top sirloin cap called a picanha by Brazillians. It’s their favourite cut of steak after the rib eye.
Anyways, after the success of my 9 hours smoked brisket for Father’s Day, I decided that I was going to smoke a ten-pound picanha in my pellet smoker and see what happened.
As someone who likes to research and do things right, I watched several YouTube on how to do this, and it was oddly fun for me. I’ll post pictures to my social media afterwards.
If you too want to know how you may own a smoker, I can’t recommend enough that you buy one as a gift to your spouse.
We got ours as a housewarming gift from me to Cherry, and she loves it and tells me so between eye rolls 😂
Rental Market Update; How To Find The Best Tenants With Rent Panda
On to this week’s show!
We have Hart Togman, owner, founder of Rent Panda who’s been helping our clients locate tenants for my clients’ investment properties.
How good is Rent Panda? Hart tells me they’ve had one non-payment of rent issue among 900 to 1,000 successful leases. That’s pretty darn amazing so if you want to know how to be a successful landlord with paying tenants you will want to listen to this episode.
Rent Panda also now offers Property Management Services and Hart shares step by step how to create a rental ad and how to automate as much as possible how to handle the deluge of responses because if you bought right like our 350+ clients, your property is in high demand.
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 Rent Panda:
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 firstname.lastname@example.org.
I hope to meet you at one of our meetups soon.
Again that’s email@example.com
Infinity Wealth Investment Network – would you like to know how our investors returned 341.8% on positive cash flowing real estate over the last five years? On average, that was 68.4% per year.
Just imagine what winning in real estate could do for you.
If you would like to know how we did it, ask us how by calling 289-288-5019 or email us at firstname.lastname@example.org.
Don’t delay, the top markets we focus in are trending upward in price, so you can pay today’s price or tomorrow’s price.
Till next time, just do it because I believe in you.
Hamilton, St. Catharines and Toronto Land Development, Real Estate Investor, and soon to be builder.