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(00:00) unfiltered the real challenges and triumphs of a full-time investor with Adam kitchener greeting friends this is the truth BR real estate investing uh and I’d like to say thank you to everyone who attended the the how to invest in the USA Workshop this past Saturday the recording will go out in about a date or two uh with the research I prepared on the best places to invest in the USA for 2024 along with my tracking of uh 23 at present 23 new manufacturing facilities I’m laughing because I add about two
(00:29) every week as I as I find more my in my continued research again 23 uh new manufacturing facilities being built uh I’m setting my criteria at a billion dollars investment or a thousand uh job potentials being created uh so let’s a combin right now that list com is a combined $224 billion invested that’s US dollars for a potential job creation of 69,800 now compare that that’s a big number yeah so now let’s compare that to stellantis the former Chrysler in Volkswagen investments in Windsor
(01:02) Ontario and St Thomas in Ontario respectively for a combined 7.8 billion us or and 5,500 potential jobs um to summarize the US population is 8.6 times bigger than Canada I know everyone thinks it’s 10 times bigger shout out Antonio but with historic immigration over the last few years uh it’s now 8.
(01:28) 6 times uh uh anyways to summarize my research for every new manufacturing job created in Canada the Americans create 1.47 jobs so almost 50% more job creation um per American uh for every sorry per per job created for every dollar invested into new and Manufacturing in Canada $334 is invested in the USA so the Americans are investing about three times as much as we are in New Manufacturing and that’s important because uh every new manufacturing job usually has spin off of four to five jobs that’s per Elon Musk who has a
(02:08) little experience in that area uh and just ask any politician they all want jobs for their areas because that means um that means a growing economy it means more jobs it means higher growing incomes and that generally makes people happier when they have growing incomes uh so the divide in productivity in between the economies uh between Canada and the US it continues to grow it’s actually quite well documented by our media they’ve done a really good job in doing so I posted an article from from better dwell in Canada the headline
(02:42) is Canada’s economy falling behind us growing 10 times faster per capita yes it’s bad news uh I’ve got I’ve got um images from the uh article and I’ll I’ll post a show link as I’ll post a link in the show notes as well uh on a personal front the flights are booked for Cherry I for our post tax season ration in Atlanta and Savannah Georgia um we’re going there specifically because uh Georgia is getting a ton of investment tons and tons and tons specifically Savannah where I’d like to buy a property they
(03:13) are getting a new a new hyand plan so H the world’s third largest manufacturer in the world I believe they’re actually the largest company in in South Korea as well correct me if I’m wrong anyways they’re probably top three we’re splitting hairs here anyway the tiande and and the government of the USA in Georgia are making a $7.
(03:34) 6 billion investment for a potential job creation of $88,500 and uh Savannah is not that very big town so I got to imagine that this will put a lot of pressure on rents and prices hence I want to get in there before uh before their doors open and all the and the floodgates open for new employees who will make an average of high $50,000 per year plus benefits so if you do the math uh like 56 ,000 American is about roughly getting close to 70 getting close to 80,000 American sorry Canadian sorry 58,000 56,000 American is getting close to uh 880,000
(04:12) Canadian our dollar is uh not doing very well these days thanks to the uh Divergence in economies anyways uh the average employee at uh at many of these manufacturing plants they will make more than the average household in Canada so that’s a good sign of uh attractiveness for people where people should be moving anyways uh we’ booked ourselves in for an entrepreneurs organization uh Atlanta event as well they have a they actually have a networking learning session going on on the subject of hospitality uh
(04:45) cherry and I’d love to learn and we will be meeting fellow seven figure entrepreneurs from the Atlanta area hopefully I’ll get to meet some Real Estate Investors as well uh quick market update I think I shared last week but I’ll share it again from my experience in the markets that I Monitor and operate in from basically from Toronto to nagar Falls kwc Windsor uh single family houses that are not tenanted repeat not tenanted houses that are on land are in are fully into sellers Market mode we’re seeing multiple offers
(05:14) on duplexes again which is great news for my clients and I as that’s what we primarily hold uh I’ll be sell one on my own in June as my ts are moving out so I’m currently monitoring prices closely so that I may strategize on what Renovations I need to do in order to maximize my return on investment and of course give that same advice to my clients uh the rest of my Hamilton Properties I’ll hang on to one or two more years a cmhc uh La last week or week two weeks ago now predicts that we’ll be back at Peak prices uh by 2026
(05:44) uh so then I’ll sell then I’ll sell my houses to the highest bidder typically those are owners who will occupy the house as that’s my experience as they typically will owe bid investors and sadly Rental Supply will be removed from the market uh this is only natural since our governments do so much to deter real estate investment rent control rental licensing Hamilton’s anti- renov eviction bylaw and the point about rental control I’ll include a link as well um in case anyone missed it back in
(06:12) 2022 both the provincial liberals and NDP have both said they would return rent control to how it was previous to 2018 so what happened in 2018 Doug Ford created that rent exemption uh where new construction anything built after 2018 would no longer have rent control uh again the NP and liberals uh for Ontario have promised to remove that uh and uh sorry to Doug forward um you well not really sorry no politician lasts forever so at some point we’ll no longer be under provincial um sorry under PC party in Ontario and yeah who whichever party
(06:53) will in likely NDP at liberals will remove said rank control so uh back to the market update new construction and the further you are you are away from Toronto uh they are facing slower markets except for Windsor Windsor’s being is an exception because of all the all the investment going on uh I feel sorry for all those struggling with properties uh in condo’s new construction and further away from torono and I feel bad for the Realtors Who Sold those properties keep in mind if a new construction condo does not
(07:22) close the realtor who sold it has to return their commission typically that to return their commission and typically commissions are paid uh they get 2% commission after the price the purchase goes firm and another 2% after closing that’s a lot of money by the way uh that’s tough times for many and of course I feel especially bad for condo investors who are returning their units which is happening more often than people suspect so again reminder uh in my experience I’ve got a lot of experience as well uh to avoid tough times avoid
(07:54) over leverage keep in mind like everyone who’s going bankrupt these days or gone bankrupt previously was typically because they couldn’t handle the cost of their debt so it would make sense to avoid over-leverage and expensive debt invest only using best practices where economic fundamentals make sense if you’re not sure how or where I’ve Consolidated uh my research I’ve done a lot of research uh into our pivot into the us for our investing uh I I prepared a report called best places to invest in
(08:25) the USA for 2024 including that list of 23 new manufacturing plants being built by the likes of you know these small companies you never heard of Honda GM Ford Toyota Intel Samsung tsmc the world’s largest private manufacturer of microchips Texas Instruments LG hyand the list goes on and on uh if you’re interested in investing in areas with the future thanks to billions of dollars of investment to create thousands of potential jobs my report’s a great place for you to start your research and I had
(08:59) a really difficult time compiling a list of all the manufacturing that’s been going on in the states chat gbt and Google failed me is more like a peace meal project to do with get this research done uh so to receive the report for free just simply go to my website www. truthout real estate investing.
(09:29) con CA uh and again it’s a free report I am a big fan of Education being as affordable as as affordable or even free as possible so please enjoy on to this week’s show we have my friend Adam kiter back on the show and we get along well because he keeps it real if you couldn’t tell I I I prefer to have conversations around the truth through real estate investing uh there’s no pictures of him on a private plane or luxury vehicle or luxury watches well he actually does have a picture of himself on a private plane but it’s obviously photoshopped
(09:57) and he’s poking fun at the phonies that are out there don’t get me wrong luxury stuffs are great I personally love it when people celebrate their success success and reward themselves and things that they’re passionate about keep in mind though most successful people in my experience don’t brag about their wealth if you don’t believe me read The Millionaire Next Door uh and the book describes 99% of my millionaire clients exactly why would anyone brag publicly about their cars or watches or gold
(10:27) chains on social media that simply makes them a target for for robbery and imagine your tenants see that how would that work out in a good conversation when you’re trying to collect rent or they’re behind on rent um so Adam actually rips people pretty regularly who do such things who and those people tend to turn out to be frauds on social media on today’s show Adam recounts his trials and tribulations of being a full-time active investor he shares how his finan how he finances deals including private money the numbers on
(10:57) the deals he’s done why he considers them deals where his things haven’t always gone well how cash flow And Timely execution is Paramount to survival and he pulls those punches it’s not sexy uh it’s actually downright nasty at times he’s been assaulted he’s been harassed by tenants tenants have complained about him to the police and he’s been arrested uh he’s bought houses with backyards littered with used syringes from drug dealers uh investment wise he’s done excellent and he’s well
(11:26) set up for the future but it’s far from sunshine and Rain bones if you can’t tell from this introduction Adam is a very a kind guy and so do feel free to reach out to him on social media he’s happy to take a question or two from anyone who needs a second opinion on anything real estate related I’ve given uh you can find Adam Kitchener on Instagram and Facebook uh I’ve G I’ve got Show links in the show notes please enjoy the [Music] show e would you meet with your tenants witht I
(12:57) meet with a delinquent tenant yeah it sounds like i’ mentioned that as well delinquent tenant like once the tenant’s out of my building I do not want them back at the property I’ll just have my lawyers send them paperwork so no I think there are still existing tenants right oh maybe that’s why okay so cuz like if they’re if she’s talking about having them fix damages I’m like that sounds like a past tenant one why would they even agree to show up like if you’re damaging the unit
(13:24) what incentive is it for you to go back and visit the office so you can get served like so it makes sense from that respect you know some people are stupid a lot of people are stupid yeah how’s Adam’s Mike they bring it closer to you people who invest in Ontario Real Estate are stupid that’s what I’m saying like you’re aist uh uh yeah like like so many people in our community are getting away from long-term like maybe not exiting but they’re at least their next property is away from long-term tenants and and and
(13:54) that’s something I want to talk about because that’s only going to make from from an out like from all right save for the show yeah ready Adam yeah hello Adam what’s keeping you busy these days the Ontario real estate market yeah but that’s always keeping you busy what about it specifically uh I mean the the downfall of you know Ontario real estate investing I mean we’ve seen uh some big names drop out of uh out of you know in the newspaper we’re seeing all these uh investment groups going under even large
(14:25) developments uh like billion dollar companies yeah the as project Toronto the one project right he’s got another one in in trouble now with the Hazelton 129 Hazelton there’s a demand letter there um so we’re seeing large players and small players and then somewhere in the middle those other you got yeah you’ve got the small guys who have gone down some small Capital companies uh and then we’ve got some large the large Northern investor in in Ontario is going under and then you got the billionaires
(14:51) going down too all in this Ontario real estate market uh so it’s it’s been interesting for me to kind of navigate this and watch and see what’s going on and even myself I’ve seen myself you know like I’m definitely not uh doing very well in this economy either right so um I don’t think any investors enjoying this period I think if anyone is saying that they’re doing well in this economy they’re lying unless they’re you know a seasoned landlord and they’ve owned their properties for you
(15:15) know north of 15 years maybe 10 15 years everyone’s struggling every single landlord in this province is there’s shades of it yeah it’s going to depend it’s going to be varying degrees of struggling um some are very much underwater if you’re uh highly leveraged in condos or things like that I think you’re probably looking for some sort of windfall or big sale or something like that um if you’re into long-term multif family and you’re not overly leveraged you’re you’re doing okay yeah you’re
(15:41) doing okay but you’re you’re probably you’re probably annoyed with the how long it takes for like your refinances to happen exactly that’s like that is you know I think 90% of Ontario landlords would would love to have that as their worst problem yeah I I mean what refinances at this point I I mean it is incredibly hard to uh to refinance you know right now especially if you have private debt cuz they’re looking at that private debt saying oh you can’t afford that it’s like oh yeah if you
(16:09) refinance it then I can afford it right but the the banks don’t look like that I mean I think the interest especially CMC doesn’t look doesn’t approve many lenders correct right I think the biggest thing too is um a lot of landlords think to themselves it it the problem is it’s kind of like in good times it’s great because if you can sell a property you can refinance a property but in this economy you can’t sell it which means the bank doesn’t refinance the banks always win they don’t want to
(16:34) be in a position where they’re stuck with your property that’s how Canadian banking laws are created which is also why I didn’t think things would get as bad as we are because we’re seeing a lot of delinquency we’re seeing a lot of foreclosures and I I honestly thought that the Canadian banking system was built to not have those problems if you look at America you’ve got you know in 2008 500 Banks went under you know hundreds of millions of dollars was lost and people lost millions of their homes
(16:59) where in Canada we’ve never seen that sort of drastic thing because of the laws and the way they’re built socialist not since like the late 80s correct and that’s it’s been a really long time we’re socialists right and in that respect that’s kind of a good thing because the banks and that’s what our banking laws are built that way I mean you can get 10% down on a single family home because Banks know that your your house isn’t going to drop more than 10% usually you know uh multi they’re
(17:24) holding the mortgages to and they’re holding the mortgages it’s totally different than the states and they know they can also sell their sell your house right so they they’ve built in a buffer they’ve built in their protection so that they never end up at a loss on your house um which is I think the mindset that I went into 2020 too cuz I mean the banks uh the the Canadian economy was going for and I’m and and they’re like well we’re going to start raising rates okay well it’s 2% the the the
(17:49) stress test is 5.6 we’re not going to go past that because that’s the stress test that was my thinking because it’s like if you go past that every Canadian Mort holder is going to get WIP start getting wiped out we don’t do that in Canada we want people to hold their mortgages even even the banks want Canadians to pay their mortgages they don’t want your house we do not want to see what happened in Alberta where people just walked away from their mortgages so yeah people are underwater a lot of people
(18:15) were underwater and the 0708 right oil crashed yeah so that’s where I thought I’m like okay we’re going to we’re going to tighten the strings we’re going to make people feel it but we’re not going to go past that 5.6 so yeah that’s kind of where I I kind of thought about the buffer that’s where I was like okay so we might get to five and I could survive that I mean I’m not going to be happy about going from 2.
(18:35) 5 to 5 but I certainly don’t think we’re going to go to to seven especially when the Bank of Canada came out and said we’re not going to raise interest rates we’re certainly not going to do it 10 times in the next you know year um and I think that that mindset is why I was still somewhat less bullish but a little bit bullish on Ontario Real Estate knowing that um you know you ride the wave you keep going um you might not be able to do as much as used to but you just kind of adjust for that um and then obviously a lot of
(19:02) other investors thought the same thing and also bet uh bet on appreciation I never bet on appreciation you know I bet on cash flow that’s that’s all you can guarantee um anyone who bet on cash uh on appreciation these days is is probably in in trouble and that’s where what you’re seeing in Ontario right now so now Adam you’re you’re younger you sure your age 31 how long you been investing for um I mean I grew up in in in real estate I bought my first property 2017 so I think it was 25 then
(19:31) yeah yeah okay so like all these folks that we mentioned at least on the uh not not not the Mahi project obviously but everyone else that that we know of that has having had significant public bankruptcy creditor protection issues they were all generally younger yes and they all had started around the same time you did yes so I think it’s important that like um how would you describe where you are right now is it survival mode like for example I I’ve talked I talked to many investors yeah like there’s a saying
(20:00) within the community survive till 2025 yeah right like 2024 2023 for many of the smart money was about preservation of capital yes not return on Capital yeah right versus we see some people that were still raising money hard and and actually want to say something like I don’t know why we got away from the term but you know 5 years ago we used to call private money hard money hard money loans yes yeah right we got away from that somehow CU promis that’s a promise no one breaks promises no one breaks promises but it’s a hard
(20:36) money loan yes right and then when because you know the connotation is with a hard money loan if you don’t make payments someone’s coming to break your thumbs exactly exactly so we we painted very bad branding I mean that’s that’s why we don’t call ourselves landlords we call ourselves housing providers home service provider I like right home service provider because uh freeloading parasite just sounds terrible you know um so I want want to get into how do you how have you defended your portfolio
(21:02) because you are on the aggressive side yeah right uh from from where I from the outside looking in I would consider you on the more aggressive side you’re in some ter you’re in some secondary you’re in some tertiary markets uh you take on private money as well yeah how have can you explain your strategy and how have you survived so uh well I’m going to I’m going to make sure that the iWin logo is always facing the camera just for promotion period um you can send me the five later um so the I’m aggressive but
(21:31) I’m also very conservative in how I look at my numbers right so I’ve never bet on appreciation and in terti area markets that’s that’s a good thing right um and I’m always looking at the cash flow so I’ve always looked at properties and thought to myself okay so what’s the closest market to me so I I would look at a place like Simco and that’s 20 minutes outside of Brandford when I bought in Simco I was buying a fourplex for say you know $3 $400,000 but in Brandford that same
(21:57) fourplex would be selling for $600,000 so I’m buying at a lower price point but if you’re looking at the rents they’re comparable I’m getting 80% you know in some cases I’m buying real estate at 50% and still getting 75 to 80% so my cash flow is significantly better on those Investments right um so I’m always preparing for the worst I think that 2023 and 2022 I underestimated what my worst would be I’m taking um but I always knew that the market was never going to be the same you know I
(22:27) especially in 2020 and 20 20 21 I was like this these Glory Days of easy refinancing are going to come to an end when I don’t know but I always had that in the back of my mind so um I was able to uh continue to push forward and be aggressive because the market allowed me so but I always thought to myself what happens if this stops right what happens if I can’t um buy as aggressively as I as I used to and and and at this point that’s the case I can’t buy like I did in 2020 21 um so I think that’s kind of
(23:02) what’s kept me afloat uh the other thing too is um up until I think basically pretty much 2022 I was aggressive um in the respect that I looked for deals and I didn’t care what that deal was I live you know I live in Hamilton I’ve got properties in Branford Simco wab bashen Romera Port curn ingersol Woodstock like the the Johnny Cash song I’ve Been Everywhere that was my Investment Portfolio I want to be able to sing the song I’ve Been Everywhere by Johnny Cash but using only portfolio uh uh cities in
(23:34) my portfolio and and and up until now that served me very well because I find a deal and if there’s money to be made or if there’s appreciation to be created I did that um now that this Market has shifted I’ve also um re-evaluated my investments and looked at myself long term also because also the this manag M of property so far away from each other is is not realistic and I don’t I don’t necessarily I don’t regret any of my investments and I don’t care if my investments two hours away I
(24:08) still you know it’s still a good investment it did what it needed to do I did a a fantastic uh project up in Gravenhurst and the numbers performed very well it did what it needed to do now as a long-term hold doesn’t make sense for me to hold a property that’s 2 hours and 20 minutes away no right so my uh my thing going forward is I’m going to sell the one in Gravenhurst and replace those four units with four units in Branford right something that’s closer to home um and staying in those
(24:37) markets so I’m looking at Branford I’m looking at Simco I’m looking at Woodstock those are going to be my investment regions right if I it’s all within 45 minutes drive for you exactly I mean I more reasonable yeah um and also well the other thing too is my my contractors too I’m starting to consider them as well for me to find contractors in all these little markets is incredibly difficult so most often I would end up taking my Hamilton contractor and dragging him all across Ontario um right which is you know and I
(25:08) mean when you’re doing a large renovation if you’re renovating four units all at once you put them up in a hotel Airbnb and and you get the thing done in two months cool but what happens when the tap is leaking then you got to find a local plumber and all that sort of stuff so that’s where the maintenance side of things start to uh become a little bit more of a Time consumption and pain in the butt to to deal with um and for me to send my Hamilton plumber to go and deal with a tap two hours away
(25:32) doesn’t make sense does he won’t do it no he’s not gonna do will will two hours exactly but it’s not it’s a poor use of his time it’s a poor use of his you know uh his his um value as well so so sorry Adam I want to pause you for a sec because I want to I want to drill home some of the different um CU whenever there’s significant loss in in uh in real estate businesses I study it yes because you know the old saying those who fail to learn from history are doomed to repeat it y right so I need to
(26:00) understand what they did in their business models that that cost them I’m not looking for like celebrate people’s losses or anything I just want to understand what went wrong so then I can you know learn from history protect my clients interests make sure they stay safe yeah now for example like the Ontario the the Northern Ontario landlords they had vacancy over over 30% structural vacancy so from from the outside looking in it looks like they weren’t even advertising units for rent cuz these places needed renovation still
(26:29) so they were you know it wasn’t just like 10 and turnover that they had 30% vacancy no exactly they weren’t even like ready to be rented well a lot of that was probably Force turnover they got very aggressive on the force turnover that you don’t get 30% naturally there well there’s there’s probably one of two things the properties were in such a state of disrepair that they weren’t even rented when they bought the places um and there was probably a significant reason why they weren’t rented right well this was
(26:54) a this was a bur model an ideal bur model typically is you you buy a really underpriced property because there’s something really wrong with it exactly the bank won’t touch it that’s why you’re using private money preferably your own cash then you take a lot of risk out now like you do the same though you you take on you take on ugly properties that the bank won’t touch y so let’s let’s get into the basics like tell us about a past property that was pretty ugly I think the I mean the one big
(27:20) difference between me and them too is is also the scale and size of which they were trying to do so and it’s a lot more um difficult it it’s you know if you have one flip on the go and you went into 2022 as it slowed down you were probably able to sell that what happens if you’re six and seven or 20 flips in you know like there’s a lot of people who are like mid projects halfway through on a lot of different projects it’s like if you’ve got to exit out of one property or you have to carry one uh
(27:48) small percentage of your portfolio because it’s just lagging you’re going to be able to survive that but I think a lot of these guys kind of went uh way past that point and got themselves into a position where yeah you’re 30% vacant and you you can’t sustain that um where you know I typically would do one project at a time now there was you know even last year they started to pile up because I wasn’t able to uh refinance them into preferred uh lending terms or I was but I wasn’t able to pay out all
(28:18) of the capital that I had invested into it so uh the model was always you know you go in you fix up the roughest building like I I I tried to find the roughest building that I could find right dump 200,000 into it pest picture of the roughest property what what what made it so rough what made it so that the bank wouldn’t touch it I mean you’re you’re looking at you know bad Plumbing bad apartment designs just rough I mean even like you know the exterior needs to get done I mean I’m looking PL Alan would would not qualify
(28:49) you for insurance no exactly I mean you Insurance there’s no there’s no mortgage exactly um outdated electrical systems like that say same thing you you’re not getting Insurance you’re not getting a mortgage you know so like I’ll buy a place with knob and tube I’ll buy a place with one meter where there should be four um and I’ll deal with Hydro One and split the systems up and so when I go into and then how are the tenants are they like doctors and lawyers are lovely like callor six figure earning people
(29:16) absolutely so they’re usually um this isn’t a social media ad the the one guy is uh you know he’s a doctor he’s dealing uh drugs fentanyl sorry uh he’s prescribing fanol fol he’s prescribing fentanyl to of the the individuals in the neighborhood um so I actually anyone doesn’t tell you can’t tell we’re being sarcastic fentel I believe is a is a medication that can be prescribed but in excessive doses it’s obviously dangerous yeah so I had a guy who was dealing fat andol in one of the properties that I
(29:44) had Acquired and uh even the cops were just like the the neighborhood was basically like hey you know we’re living next to this drug head and the cops are like what do you want us to do and they’re like get rid of him and he’s like landl tenant board you know like the cops are there to keep the peace they don’t they don’t do anything uh meanwhile in the backyard he’s got needles everywhere like there’s there’s there’s a there’s a there’s a new immigrant family living on the first
(30:06) floor wait wait wonderful this isn’t a what is this Triplex fourplex what fourplex forx forx and he’s got needles all in the backyard in common area yeah yeah in common area there’s needles in the backyard and the and the and the new family on the main floor uh new to Canada family is is living on the main floor and they’re terrified to live below this guy literally living below this guy and uh and do you think the kids can enjoy the backyard no no they can’t do that the the guy who bought the
(30:31) house next door he moves in from Toronto and he’s like oh look this is a nice little town moves in right next to the drug dealer and he’s like I’m going to sell my million dollar property in in Toronto buy something a quarter of the price live here you know gentrification all that fun stuff and ends up living next to the drug drug head so I ended up trying to deal with him well just drug dealer so there’s there’s regular traffic of people coming to buy drugs yeah which yeah which is what you want
(30:58) in your neighborhood with and when I bought the property the cop looks at me he goes well you just want to get him up because you want to raise the rent I like actually I don’t actually I mean to be honest he was paying relatively close to Market rent I mean he wasn’t actually paying his rent but had he been paying his rent he would have been pretty damn close to Market rent um the reason I want him out is because the neighborhood wants him out I’m doing a s this is a safety thing you like I’m not trying to
(31:24) excuse me the cops aren’t building a case against a drug dealer well he had an active Criminal charge it was in the it was published he was caught with dealing fat and all he had weapons charges and all thatu ja not yet we got to wait for for cases to be heard before a judge so he’s just out and about enjoying his life and a we he’s still in the property he’s still on the property how long you owned it for why I had bought the the property with him being the problem so the the previous owner
(31:48) must have dealt with him for years so so let’s take a step back you got imagine you got a pretty good discount cuz nobody wants to take this on correct um and I mean and that’s part of the problem with the system too I mean that’s that’s another landlord who basically exited the industry he’s like screw this I’m not dealing with this yeah he’ll never be a landlord again what’s he what’s he doing he’s trying to go through the land ten board so they’re two years we’re waiting for him to go to
(32:09) jail that’s two years you know like two years for an active drug dealer to go to jail it’s going to take time to go to court I mean it takes a long time from charge to to hearing it to actually like get stuff done I don’t know from the criminal side you know um I’ve never had to go to jail for uh you know any reason really so you know um but uh got close there almost no the tenant was just off by a little bit um and so um so you’re still dealing with this no he’s gone now he’s gone yeah the the tenant has now
(32:41) found his way um ended up giving him some money cash for keys Arrangement because it’s the quickest and easiest way to remove a problem from the building now I’ve got neighbors who are happy with me that building has now got uh is going to have four brand new families happy to live there you know um in a needle free backyard in a needle-free backyard exactly you’re an awful awful person I I I got rid of a drug head out of my building and yes I’m a I’m an awful person because I I have now you collect rent for you’re hoarding
(33:12) properties for for hoarding properties exactly and that was the landlord’s that was the the officer’s look to me he’s like oh you’re only doing this because you want to raise the rent I was like no buddy I’m doing your job you know um and I I mean say what you will I mean I mean him some people are going to some uh no sympathy for I’m trying to look at it from an empathetic view I mean that guy doesn’t can’t be in the private Market he needs to have rep around Services he needs to be in rehab he needs to be in
(33:38) halfway house he needs he needs access to services that he’s clearly not getting he should go to jail first he should go to jail and then when he’s released he can’t be released into the private housing market he needs to go to take those necessary steps right and and get off the drugs and deal what he’s deal dealing with and all that but as a landlord that’s not my job yeah you’re a private citizen I’m a private and I’m a housing provider as is every other Ontario landlord is we are not
(34:03) housing providers we are psychologists we are caretakers we are babysitters we are taking care of full grown adults but are we given resources no I’m not I don’t have a degree in social work or psychology or anything like that I’m not even given tools I mean if he’s dealing drugs in the backyard can I stop them no the cops can’t even stop them what do they expect me to do right so and this is the the sentiment that’s heard across all of Ontario we have you have one problem tenant in your property and it
(34:35) affects the other tenants because the other tenants all move out they move out and it’s not fair to the tenant have massive vacancy you have massive and what are you going to do rerent it good luck anyone who walks through the building is going to see what’s going on so you have to remove the problem you wait till snows and covers up all the needles exactly yeah you wait till the winter and you know um don’t build any snowman you know so um instead of a carrot nose it’s a needle nose oh my God
(35:01) you went there so how how is the building now it’s getting renovated yeah so I’m just I’m renovating it top to bottom brand new floors kitchens bathrooms the whole nine yards um given the the fun interest rates that we’re paying I’m not doing as as extensive a REO as I would like uh there’s a lot of you know things I’d like to do move layouts around change uh make them more efficient but um we’re living in an environment where it doesn’t actually even make Financial sense to be
(35:28) landlords so I’m just doing it to get the cash flow rather than having a building empty sitting empty right so so so the scope of the projects come down because substantially yeah how are you financing the renovations it’s still private money yeah can you elaborate on that is that a second is that a promiser note is that yeah so I don’t I don’t do promiser notes uh I don’t do OPM other people money I have never gone out onto the internet and been like hey you should invest with me cuz I’m a
(35:55) brilliant dude no I go through a a um mic mortgage broker type person uh they get the cash flow together and I mean it is most likely investors or someone’s private personal money um but the way I get it it’s secured through a mortgage broker and it’s secured against my other assets right so I have a a portfolio of properties uh some are underleveraged uh so we use that you know if I have a mortgage that’s 40% loan to value we’ll bump it up another 20 30% to get the private money to pay for the renovation
(36:28) I’m doing and at some point I refinance and pay back that private money what are the terms these days like what kind of terms are you looking at 12% for our second yeah second second marage yeah um yeah it’s about 12% that’s about Market yeah so uh and then the lender fees there’s usually lender fees with these yeah it’s about 1% lender fees I mean it’s not too bad to be honest I could have hired an employee like the amount of uh private I I I went the private money the private money that I like paid
(36:57) in fees oh I I could have like a full-time employee paying a very good salary and all you know and and same thing with legal fees I’m I’m almost at a point where I’m like I should just have a lawyer on staff I mean it doesn’t really actually save costs because when you when you borrow private money you also have to pay their legal fees um and some of the legal fees that the private money charge I’m like how are you three times the cost of my lawyer my lawyer can close a deal you know for a couple
(37:23) thousand bucks and they’re like four five $6,000 I’m like you’re not doing any more more work than my lawyer they can be fancy Bas Street lawyers yeah rent’s expensive so feel bad for the landlords the lawyers I feel sorry for the the lawyers you know that they got all that high rent and those degrees to pay off some of them are dealing with messes I was talking to a lawyer yesterday who’s got a lot of a lot of people coming out of the woodwork who have uh mortgages related to those landlords up north yes yeah the
(37:52) foreclosures and the mess of that um it’s it’s kind of uh oh sorry let’s let’s finish off this fourplex for example though what will the rents be when you’re done uh we’re going to be looking at400 for the one bedrooms and uh 2,000 for the three bedroom I have uh three one bedrooms and one three bedroom so it’s going to make about $6,000 a month and and what did you pay for it uh I bought the building for 600 what city is it Simco and then what’s your arv your after repair value what’s uh it should be
(38:32) worth 950 based on other Simco properties I’ve I’ve bought and revalued so yeah what was your renovation budget 100,000 it’s pretty good uplift yeah so just to just to summarize 600 by 100k with a whole lot of headaches y so you didn’t factor in your grief correct we haven’t factored in your T and your grief but but at 950 after after sounds like yeah so sounds like you’ll be pretty well off well I mean I know that right now based on current lending like I’ve spoken to Brokers and
(39:07) they’re like we’re going to get maybe 640 on uh on a reappraise like on a on a mortgage value so I’m still going to be in the property for you know a substantial amount did you go down the road of commercial financing yet I know we chatted yeah so I’m I’m currently talking to a uh a broker right now about an exit strategy for the property but it’s not going to be a clean um like I’m still going to have Renovations into the property it’s not going to be eaten up into the mortgage so I’ll be having my
(39:33) my mortgage and then the the renovation budget still ongoing so right because you’re still ongoing yeah uh but is there the opportunity to do commercial refinance like to do uh based on a cap rate yeah yeah no oh that’s that’s what I mean is so they they’ve looked at the numbers right so they’re looking at the rent and they’re looking at the what the mortgage uh the the largest mortgage they could put on the property and based on today’s rates it’s going to be 640 6645 that’s the mortgage or the the
(40:00) mortgage oh okay okay so even if the property is’s worth 950 I could get a an appraisal at 1 million I could get 1.2 and and whatever they said the the max you’re going to get is 640 mortgage yeah but that’s great yeah that well no I bought the place for 600 and I put 100 into it so I’m I’m into this property for 700 so I’m going to you borrow all the money for the buy well no but I mean technically you know like the it’s not uh it’s not a a full full refinance right so yeah but if it’s worth 950 and
(40:30) your mortgage will be 640 close yeah I a so glad yeah it’s it’s not bad I mean in in the past we were able to do better um better turns around these are R return of capital times yeah yeah these are not return you’re getting return you’re getting almost all your Capital out almost almost yeah I I I I will have some money still invested in the property so um and some grief yeah and some grief exactly um this is the TR about real estate investing it’s the truth about real estate that’s the thing is like well and
(41:01) that’s the thing is too is everyone back in the good days was like oh I made 200 I made 300,000 on that it’s like no you didn’t you just made your mortgage bigger like and I you still owe the money you still owe the money you the money isn’t yours until the property is sold and you paid your capital gains and whatever’s left over after that number that’s what you made on the property um oh there’s so many places we can go there’s oh boy but the and and and the problem with that too is that when these
(41:27) people did these things they went on you know all the the YouTube Sor before we go on that let’s finish off this this example property because you and I were discussing how uh because not everyone knows like fourplex uh I believe it’s RBC that will still qualify as a commercial property so they will use the traditional cap rate cash flow model versus comparable model yeah right which is what almost every lender does is comparable model y right so it’s advantageous again they generally Focus just on the property is that is that
(41:56) what your experience is here they’re the the lenders focusing just on the property correct yeah I mean the building is owned as a corporation right so it’s also I can literally put that in as a building of itself so it’s self- Su standing they’re not looking at other properties they’re not looking at other variables and that’s that’s exactly that’s why buy properties as corporations individual corporations but this is a fourplex it will fall under commercial lending correct right yeah uh
(42:19) and then that way you’re able to much better much easier to scale using commercial lending correct which is one thing why I like the states cuz it’s all for even single family homes it’s all commercial lending it’s all commercial yeah yeah and then then you can scale they don’t even look at your own personal credit they do look at it but like they just looking to make sure there’s no red flag exactly exactly right like you still pay your own mortgage you pay your rent your your credits like you’re not you know you
(42:40) don’t have all these outstanding bills on your credit correct right but basically it’s more like a check box like he’s okay this isn’t this guy doesn’t owe a bunch of people a lot of money exactly yeah they’re looking for delinquencies they’re looking for claims and you know unpaid Child Care exact you know what I mean and they haven’t caught up to me yet I haven’t acknowledged the children yet so but we should take you should mention you’re not married no kids no no marriage no kids yeah which
(43:04) is why you can take you have more time available to you for these for their commute properties Y and you’re active full-time into it yep right because I believe that context matters yes right for the gentleman who you know lives in Miss Saga communes to Toronto for their big pay job 95 9 to5 well we say 9 to5 but reality at the commute they’re generally working more than 9 to5 right for them to do your investment strategy it doesn’t work you’ll break yeah you’ll be divorced pretty quick your kids will
(43:33) hate you well that’s and that’s the thing so like the the thing is like I’ve always I I I know I’m living I I’ve created more balance in the last couple years especially because um up until now I was very very aggressive up until 2022 I was very aggressive the last time I was on your show and I’ve kind of slowed down and it’s it’s hard to believe a lot of people like you slowed down um but I’m adding a little bit more I’m still yeah I’m still going um but I mean before I had all of my buildings I was
(44:00) buying aggressively I had a property management company I had 10 employees I was all over the place I was spreading myself really really thin you were living in a building that you’re managing correct that was not the easiest exactly you’re tough boss big building luxury so stand so standard standard is are high exactly um so I’ve walked away from a lot of different things to focus only on my real estate yeah um but I still understand that like you know it’s it’s I’m still not living
(44:25) a life of Perfect Balance I mean the key to a perfect life is to have a life of balance and that means everything from Fitness mental family friends business and pleasure right um I’m still lacking in a lot of those areas I’m very aware of it right um but those are things that you can’t really sacrifice the if you look at the most successful people of of society in terms of like business or even music or or you know billionaires multi-millionaires I’ve met you know dragons I’ve met billionaires I’ve met
(44:55) musicians and and and they’re extreme ex successful because one of the most successful developers in Hamilton yeah um and and so when you look at those people yes they’re successful in one area if you look at every other aspect of their lives complete mess oh je divorced don’t talk to children don’t uh you know um poor health you know poor health maybe you know because everything is about that one thing and and and there is a part of the entrepreneurial journey is to do that you have to do that if you want to be the best soccer
(45:26) player in all of the football league whatever you have to stop seeing friends you have to play 24/7 you have to focus only on your health focus on your Fitness and just be that person that means every other aspect of your life is going to fall apart right and if you truly want Tiger Woods he’s number one where’s the rest of his life complete mess why because he let his marriage fall apart he started having Affairs and all this sort of stuff but he’s the best damn golf player but not anymore not anymore cuz he can’t cuz he’s he’s got
(45:56) balance and now which is great great for his life but he probably won’t dominate ever again no exactly and and and so that’s the thing is so not even win ever again there’s a phase where you have to have a lack of balance and acknowledge that um and I’m okay with that because I don’t have the inserts yes um so I’m never going to be worth hundreds of millions of dollars or billions of dollars I want I don’t have an interest in it either um there’s only so much real estate investing that I’m
(46:24) actually interested in doing I don’t want employees I don’t want a full-time you know I don’t want to be working in an office currently working on returns and it’s all about life balance for me right so um cuz I guess see you settling down not settling down but like finding some sort of stability within the next few years correct and then you can you can really get some more balance and that’s exactly and that’s when I’m going to start you know I you’ve seen I’ve started to travel a little bit more I
(46:50) don’t like I don’t like winter and and so I like to disappear when the snow falls um and that’s kind of also my way of achieving some more balance too so probably yeah in the next 2 years I’m going to be done real estate investing I’m going to have enough a nice little portfolio you’re just going to hold not so much grow stage correct correct I mean maintaining my existing stuff once the building is stabilized um I’m dealing with the tenants which if I’ve placed them they’re very well behaved
(47:17) they take care of the place nothing’s going to go wrong everything’s new it’s been done in the last 5 10 years right so um you know I’m going to deal with the day-to-day tenant calls but uh yeah probably in the next two years I’ll be done investing in real estate and uh my efforts are going to be in different areas I’m you know I’m definitely going to be looking at different streams of income a lot of that’s probably going to be passive uh through you know investing through different various mortgage
(47:40) groups uhing private lending uh private lending is very interesting to me especially going to to learning about the last couple years I mean the one thing that landlords forget is that we don’t actually own anything I don’t own any property my bank owns property I just have to name own the majority of it right you know um until but they don’t take any of the equity they don’t take any of the equity exactly the equity is all mine the profits are all yours uh and and so is all the they own right now
(48:06) there there’s no equity um but yeah so I mean you’re you’re every landlord is owned by their tenants their lenders their mortgage you know like so if if your tenant doesn’t pay rent you’re still obligated to pay that mortgage you know um your your tenant is is your customer and they kind of they can control you based on how you how the the building is how your relationship is with that tenant and then same thing with the banks they always put themselves in a position where they’re in the winning seat you know so if if
(48:34) you and me started a business tomorrow and said hey let’s both put in $100,000 the business fails and we sell it for 150 we both eat that 50% loss of the $50,000 but if me and the bank go in and buy an apartment building and the building goes down in value they say oh no no you still owe us what we put in you know so I eat the loss you and that’s what every L you can lose beyond your investment and you can lose beyond that exactly um and that’s what a lot of you know landlords are really feeling the heat
(49:01) because a lot of also private money they’re in a position where they’re saying we want our money back and there’s there’s no money to give back so a lot of lenders who are overleveraged uh or a lot of landlords who are overleveraged the the secondary lenders are are getting antsy and they want their funds back well the promis people are especially promis notes sorry but before we get into that let’s finish off with your own portfolio can can you give us uh can you quantify how big your portfolio is like how many doors do you
(49:28) have how many properties I never answer that question never no never okay how’s another way like what is your target cash flow say two like you said like two years from now you think you’ll slow down like what is your target cash flow from your portfolio like what what number will make you happy um well I mean my intention is never actually to cash flow from my portfolio I want to I want to be able to leverage my portfolio to invest in other areas and cash flow from that so you know if I’ve got um you
(49:57) know 20 25 buildings let’s say and I go to the bank and I say I want to borrow a couple hundred, I can take that and go private lend it I can go invested in a uh in a mutual fund or something like that and whatever those Dividends are that’s what I cash flow that’s that’s my personal cash flow right so your cash flow be the Delta between what you can lend for versus what you’re you’re paying on on what you owe um my buildings have always seen pretty aggressive it’s a very aggressive
(50:22) strategy but it’s also very also conservative because I don’t want to be relying on cash flow from properties I’ve always taken my properties and reinvested any dividends that’s from them I mean if you if you really think about it too also I mean if you’re buying a premium top-of-the-line brand new property it doesn’t cash flow so you I buy old buildings but they always need something to be done I always need to do a roof a Windows EO and it’s always it’s and over the next 5 to 10 years some one
(50:50) of those items has to be get kicked off the board that means I need about 15 grand every year to like a roof is 15 you know say 10 15 grand E’s 15 grand to redo siding it’s 20 grand to do parking lots 10 so it’s all gone up it’s all it’s it’s only going up from there so you’re going to say to me okay Adam I got to pay you got to pay your mortgage your insurance all utility bills oh and then also have $115,000 left over for renovations and cash flow on top of that it’s not happening it’s never happened
(51:20) it’s even in the greatest uh of times you’ve never had that much cash flow to actually continuously upgrade your property and use the cash flow and have some in your pockets you know and I’m have to say this is highly fascinating I don’t know if you find that’s fascinating too is that like you’re an aggressive investor hope you don’t mind me saying that but at least you’re watching it closely you don’t have structural vacancy in your portfolio not like you have vacancy but you’re
(51:46) actively attacking it correct right like CU like like before we recording I said vacancy is poison yes right negative cash flow is a form of is a smaller version of poison versus vacc your bad debt exactly right um but yeah like where did you learn this strategy cuz sorry cuz again like I’m I’m a little bit older than you I’m 13 years older than you so back in the day in 2005 we could cash flow with a single family home it was it was really different back then I mean yeah I I think that I mean it’s it’s really just
(52:18) the realities of the market if you look at your properties right now and you think to yourself you know you probably need to do the roof in the next 5 years well there’s 10 grand are you getting that from your cash flow then it’s not really cash flow now is it that’s that’s capital expenditure that you have to put into your property and then if you have to do the East drops in the next 10 years that’s another 15 grand you know so I can’t convince you come to the states CU cuz I I understand
(52:41) where you’re going from while you’re while you’re strategy structured the way it is yeah because that’s the H you’re dealt in Ontario yes correct right yeah versus like if I go uh what I learned part of my when I was one of my time in Texas when I Learned was I actually got to I went to into um into show a show House yeah that was a Builder building like 150 houses and that and and in the show in the show House the construction managers actually there so I said hey do you mind to ask you some questions yeah
(53:08) I don’t mind you know because I’m look I’m potential client right I go like how long does a roof actually last here he goes 30 years like no no no I know Roes are rated for 30 years how long do they actually ask he’s like 30 years I’m like I’m sorry I’m a Canadian and we’re not used to these things well yeah like I have 40e shingles I doubt they’re going to last 4 years I mean cuz the cold the cold the snow the ice actually depreciates them a lot faster than exact wor is I thought the Texas Sun would
(53:34) beat the crap out of the roof but no apparently not apparently not and I Chach PT it as well to like verify cuz you know I’m going to sure like he could be selling me something so I need to verify I verify everything but yeah and so getting going down that path as well is like everything in the house on the exterior depreciates faster in Toronto for let’s use Toronto as an example Windows Doors brick exterior roof everything depreciates faster in Toronto versus a property in in Dallas Texas okay based on my research yeah I can’t
(54:03) convince you to come to the states cuz like I was joking before you before we recording is like man you’re a sadist I I I know because because a lot of the smart people a lot of the smart people which I consider you categorize you as smart because you’re invol you’re you’re actively engaged in your portfolio you’re attacking vacancy you’re doing the best that you can to optimize your portfolio y there’s so many people who do not want another long-term tenant property in their portfolio yeah uh
(54:28) especially in Ontario just because of the way the landlord tenant board is right and you’re very familiar with it very familiar with it you’re very familiar with the land attendant board Y and you’re you’re like you just dealt with this this Justice situation where a drug dealer Y is in your property terrorizing y your neighbors and that matter don’t have Justice ironically enough I I haven’t been to the landlord tenant board since 2018 that is impressive impressive but you know how did you vot it though
(54:56) because you know you have to negotiate negotiating moving expenses expenses from time to time moving expenses and to compensate you for your grief of moving exactly exactly I don’t like the other term the the so the the only reason I’m still in Ontario is because um like I said I’m I’m very calculated in in what I plan to do and like I said my investment time in Ontario is almost at its end in the next honestly it should have been done by now in 2024 I should have been done you know um but this re
(55:27) inflation you know whatever than promised yeah um so my intention was to kind of tail end and wrap everything up and start uh you know solidifying what’s going to be my long-term Ontario holds um and that was going to be in the next year and and now it’s looking at in the next year or two what’s going to happen after that is that’s when I start looking to the different Avenues and one of those is private lending one of those is to put it into a very secure mutual fund or stock portfolio and then also looking
(55:56) other areas like investing in in the states so something incredibly passive yes correct with no long-term tenants in Ontario exactly I still intend on keeping my long-term Ontario holds but just as I said they like they appreciate well because they appreciate and they hold their value my my Ontario Real Estate the way I see it is it’s my net worth Builder it’s never a c i i buy buildings for cash flow but I don’t use the cash flow for my own personal gain it’s always I use the cash flow to get
(56:24) mortgages to buy more property to increase my net like I said you can’t cash flow in Ontario and have the funds to continue to do the capital upgrades on Ontario as as we’ve seen partly because you’re you’re quite a leverage it’s quite a leverage uh strategy correct you’re not putting a ton cash into it correct so you’re either overleveraged and you’re maximizing because like I said I mean if I was to go in buy these crap properties dump $400,000 into them okay yeah sure I can get the mortgage to to cover but
(56:50) then I’m not cash flowing right um so if one tenant doesn’t pay now I’m underwater so that’s why I do these projects in stages focus on the inside get them rented then focus on the outside what’s the first thing that you need to get done make sure that the roof is not leaking then you work on all of these and every year I do a different project on my property based on its lifespan and based on that model there’s never going to be cash flow at the end of it if I’m always reinvesting into my
(57:16) properties but it is increasing my net worth and I and I appreciate you sharing all this yeah because there’s all those folks who are with like hundreds of thousands of Instagram followers are not sharing ing the entire model by the time the mortgage is paid the the the interest is paid the insurance is paid the water bills utilities all these bills are paid and then you actually factor in properly your Capital expenditures you’re not cash flowing you’re not living off of this income and you probably never will until the
(57:43) mortgage is paid off which is 25 years I’ll be north of 50 so my thinking is my Ontario is my net worth Builder and I’m still trying to build my net worth once I get which done really well for a lot of people which is done really well a lot of people once I get my net worth to where I need it to be and my building’s at a point where it’s it’s large enough that I can still maintain it relatively passively without outside help that’s when I’m going to start looking for different Avenues which is
(58:07) more aggressive uh markets like the USA but the USA I would say is more volatile in terms of value and and whatnot than Ontario you put a house in if you buy a house in Ontario you’re not going to see it go down in value long term you know we’re you know in in the 80s you could buy a property for $100,000 we’re never going back there you know yes uh if you bought a property in 2021 versus now your property went down but if you if you were smart and and you can ride the wave it’ll come back it will come back
(58:37) and it will only go north from now we’re not going to see the skyrocketing of prices I some say yes some say no some but I don’t think we’re going to start seeing the massive hundred $200,000 increases that we saw in 20 there’s no reason for emergency interest rates again all this foreign buyer stuff is is uh is place um I I mean we need to bring that back to be honest if we think we’re going to get over this housing crisis we need to bring foreign buyers back the condo developments are being cancelled
(59:05) because they don’t have foreign buyers foreign buyers prop up new Bild developments that’s a fact you know if they buy up all the condos they no because condos need 60% of their condos sold before they even get funding it varies some as high as 90 yeah so if they can’t find pre-sales in the Ontario Market because people are buying houses to live in are not looking at pre-sales no one’s going you know what I need a place to live in about 3 years we’re going to be stuck where like local buyers won’t buy and
(59:36) then Builders won’t build because they can’t sell correct so then we’re we’re in a rock in a hard place yeah we still we still have like a million new people in the country so if we really actually want to get condo developers to start building again and start building in Mass we need to open the floodgates to to foreign buyers that’s a whole another story for another episode but I want to talk about your own story y because this is the trth real estate and investing show you’ve shared it you shared it more
(59:58) recently uh publicly y about like you’ve been assaulted by your tenants yes and harass yeah yeah um and I still can’t convince you to come to America I uh I try to I mean you were very detailed in in graphic about it yes on on your on your like folks can go to your Facebook Mr Adam Kitchener yeah right like it’s so I mean I always like to say he’s not my tenant I I never put him in there I bought the building with him as the issue Fair yeah so um and I knew I was buying an is uh the property with an issue I you know the previous
(1:00:33) landlord to me was kind of like he’s a bit of a problem um I think that’s the understatement of the century um because I’ve bought properties where they’re like oh this guy’s a pain in the butt and this guy’s a you know my and it’s like yeah whatever it was blame other guy yeah and and so like you know people when they’re selling their properties they probably have an issue problem with the tenant and that’s why they’re offloading the property so that’s you’re get the deal
(1:00:56) that’s why I’m getting a deal and so I’ve never but sorry but this is a property you’re you were managing no this no I bought the property okay so the the landlord’s like this this guy is a bit of an issue and not the Fel dug dealer this is a different property this is a different property and like I said it was an understatement cuz you know maybe it was a bit of you know me being uh cocky overconfident too because you know like I said I mean i’ I’ve bought properties and people have been like oh
(1:01:19) yeah he’s my problem tenant it’s like okay well I talk to him for 20 minutes he’s not a problem you know it’s um a lot of landlords also don’t know how not a landlord right you know throw a landlord poor communication poor communication not doing the bare minimum like you know not maintaining the property bare Bare Basics exactly most tenants are are most tenants and and that’s why I try to say you know most landlords are good most tenants same thing you know most of them are good you
(1:01:43) know it’s it the problem is the disproportionate power that bad tenants have over they can ruin you they can really really ruin them right they can ruin you they can ruin the property they can ruin ruin everyone’s experience inside that building exactly and they can wipe landlords out out of the market and really and that’s what we’re dealing with that’s part of the why the housing crisis is so bad is because the 2% the 3% of tenants who are taking advantage of a bad system there’s also 3% of
(1:02:07) landlords who are taking advantage I mean you know the the guy in br br Bron with with 25 people in a basement yeah that that that’s that’s taking advantage of a bad situation you know that that’s like best case you have a 4,000 square foot basement 25 people 25 people like that’s that’s wrong you know and you wonder why Brandon forcing out licensing the problem with that and and now people like oh yeah licensing that’ll let’s get back to your property let’s get back to your property yes you
(1:02:35) you inherited a tenant I inherited a ten how much of a discount did you get on the property I didn’t no wa no you must have got it some sort of discount no at least no one was competing against you no one was competing but I still paid a very good price I actually ended up losing on that property I sold the property at $130,000 discount I lost $130,000 on that property the tenant was still there when you were selling y oh man well I mean a I I was the guy selling it at the discount because um you overpaid I I overpaid
(1:03:06) yeah um I underestimated the situation significantly um and that might have been a little bit still too bullish on the market and a little bit of cocky because again he’s like he’s a bit of a pain in the butt it was an understatement didn’t really give me the full picture the seller understated how how bad the tenant was exactly I mean legally not really he he didn’t have to even say anything he because you T is fine I mean he pays his he paid his rent yeah you know um being a nuisances you know you don’t really have to disclose
(1:03:37) if your T you know if there’s active lawsuits or cases or things like that you have to disclose those but I mean but this is buyer but people I think the listen need understand buyer beware exactly like you don’t know you don’t know um and it was a case of buyers beware and beware was you know I I I was not beware of what I bought right so there was a reason there was no other offers correct right and so um I bought the property I ended up selling it at $130,000 loss so you got no return on your grief I had no return on my grief
(1:04:07) well there is some some uh light at the end of the tunnel so I mean if anyone’s ever read that journey I don’t want to you know rehash the whole thing um too much but let’s rehash a little bit in case people are too busy and don’t have Facebook profiles and stuff right um unless it’s uncomfortable for you no no no I mean it’s it’s done actually it’s done actually now so um I basically gave him an eviction notice an n12 notice what did you do what did you what did he do to deserve it so I int I fully
(1:04:35) intended to move into that property yes um I was out of a long-term relationship I needed a place to live yes so I I served him an eviction notice and unfortunately the n12 is notoriously misused and um it’s all over the news legal evictions are are rampant so people are lying saying they’re moving in just to evict tenants correct for renov and arguably he looked at me and thought this guy’s not moving to the basement you know I I a quick Google search he knows I’ve got property he knows I’ve got Investments he’s like you
(1:05:05) dress well you take care of yourself you drive a nice car I drive a nice car you shouldn’t drive a nice car when you see ten in exactly go rent the beater so you know it it it’s uh when I actually it has its advantages and its disadvantages so uh when I was you know there there’s a story of the old landlord where what he would do is he would show up on day in his uh in his Plymouth his K car you know whatever it is and he’d be like oh you know time to pay your rent they’d look out the window they’d see his you
(1:05:34) know piece of crap and then on N4 day he would show up in his Mercedes and be like here’s your N4 here’s your N4 because it’s all about that power Dynamic that he wanted to to portray is you know he’s poor on rent day and not poor on on rent uh eviction day so you know um but I don’t it’s still a bad idea it’s so cuz they’ll no fight it right um so I mean there there’s still a lot of legs for for landlords to to Really force uh rent collection I mean essentially it is it’s rent stuff it’s
(1:06:07) it’s it’s the reason why so many landlords are getting out of sorry go back to this go back to this tenant though this wasn’t about rent this wasn’t about a rent eviction it wasn’t a wrongful eviction you need I needed a place to live and you own the property I own the property it’s a basement apartment I’m a pretty simple dude I mean I’m not I’m not you want to house hack I want a house hack I mean yes I have a nice car but that’s that’s a small thing like I don’t have a fancy
(1:06:29) watch I don’t take fancy vacations you know I you don’t have to justify it it’s your home you need a place to live correct um so anyways I I said to him I was like I fully intend to move here he says no you’re not I says here’s here’s the I’m I’m a landlord I like educating tents on their rights and obligations oh great so I said to him I says look if you think I’m lying and you don’t think I’m moving into this unit that is a fine for me of $100,000 oh used to be 10 okay
(1:06:54) yeah I I think they bumped it I think it’s 50 $50,000 $100,000 so I said if I’m lying it’s it’s a $50,000 F it’s very easy for you to catch me so here’s what you do you move this this de tell for listener cuz if you’re moving in you have to occupy it for atast 12 months at least you can’t advertise it for rental or anything else it cannot be used for anything else it has to be only exclusively your use exact or or your family member or a family member I said so call my bluff and if not very easy
(1:07:22) for them to file a complaint you’re fined exactly I get a fine and I got to pay the rent difference between your new rent and your old rent yeah the risk reward is horrific horrific so I’m like call my bluff on May the 2nd if I’m not into this unit take me to landlord ten board I will have no defense his reaction to that was not to actually go that’s a good idea Adam I should call you on your bluff because it’s an easy win I would have to pay him tens of thousands of dollars and be find the the
(1:07:51) lambo 10p or he can just extort you you know it’s 100 Grand just pay me 50 exactly it could have been a very easy way for him to extort me instead he decided to assault me say get out of my apartment and you know physically assaulted me uh his dog bit me it was a whole thing cops got involved uh bylaws got involved all this stuff started happening and from that point forward I was like all right well I guess we’re going to go to landlord ten Port you know um nine times out of 10 to is you know if he had been cordial and said
(1:08:23) okay Adam I’ll give up possession but I need some moving cost I would have thrown him some moving costs I would have thrown him a couple dollars to help him whatever it is you know compensate him for compensate him accordingly um but unfortunately the situation basically very much grew out of hand um and I basically became from that point forward uh the subject of his abuse the the so this is the other reason why landlords shouldn’t go showboating and bragging about their Investments because he saw me and and I don’t necessarily
(1:08:53) think that I go on you know these podcasts and say say I’m a millionaire people have always said you know oh you’re Milli no I’m not I owe millions of dollars of debt you know I’m not living a fancy high life I’m not showboating I’m not pushing uh Guru courses or anything like that I’m a pretty down-to-earth dude or I I like to think that I am and I think most people would agree um but he basically looked at me and said you’re a multi-millionaire uh land hording piece of and I’m going to take advantage
(1:09:19) of that I want you to pay me to move out and I want $100,000 he asked you for $100,000 he wanted $100,000 to move out so he’s extorting you he’s extorting me and it’s even like all you would do is want place to live exactly your own home correct it’s like well why would I do that I would just if I have $100,000 to give to you I would just buy a house and move into it yeah I’m not giving you $100,000 so I can move into a basement apartment um so especially even the the the financial incentive for me to illegally evict him
(1:09:50) wasn’t there I mean he was paying low rent but it was also a basement apartment in a in a relatively small all town the most I could have got was maybe 4 500 bucks what town was it inol okay and I mean even after I you know I could have maybe got $400 in rent more and that’s after I redid the entire apartment with brand new floors and kitchens and I I would have had to put like 20 30 $4,000 into that basement to get that extra 400 it’s a poor investment I had zero intention of fixing that basement and renting it on
(1:10:20) the free market but this guy just saw enemy this guy saw me and thought here’s a Payday and and so that’s the other reason why we you know landlords need to you know stop bragging about these profits that they’re not making um because tant see that and they look at you as a Target the minute you have money people look at you as a Target um because for the for the listener I I think they need to appreciate that uh like if I I recommend the book many times The Millionaire Next Door the milliona next door is generally a very
(1:10:46) private person yes like n out of 10 times are private they don’t they do do not drive brand new luxury Vehicles correct uh I have some clients that do but it’s rare and it’s because they’re really really successful yeah right but they don’t post about on their social media correct right so anyone who does typically they’re they’re marketing something they’re selling something so that would be the path I would recommend for most landlords is you remain you remain quite private or
(1:11:12) at least keep your profiles private yes right only share with your friends yeah don’t let your attendance see what you have correct because it won’t it could you could end up like you yep right and that’s the thing so like short of my car which I’ll add I bought as a pre-owned car I paid the equivalent of a brand new Kia for that car right but the big fancy badge on the front tells people that I must be you know doing very well no I bought a pre-owned car on on a brand that has a really hard depreciation
(1:11:39) curve uh and so I I won on that you know um and you generally dress well and and you you always well your hair is done your your Beard’s always trimmed like you look you look you look very presentable yes but I’m not in a I’m not in a suit and I’m not wearing a big Rolex watch and whatnot he made all these assumptions about you but he’s made a lot of assumptions about me so you know I my my my Instagram and my Facebook and all that sort of stuff is private I don’t post a lot um you know I
(1:12:06) try to because you have to you’re maner have to I was just on your Instagram and you’re very again you’re very private about it which I I I understand why you have to be um you know and it’s uh because I said LinkedIn right I was on your LinkedIn and you’re very private about it which I I can understand why you need to be yeah um you know and and but most Lords especially early on in the business they feel like they have to be influencers it’s like we’re not influencers they’re doing that to raise
(1:12:31) money though they’re doing it to raise money right and there’s probably a little bit of there’s nothing wrong with it associ it can be done right it can be done well yeah like lots of people have lots of there’s some influencers are really good at raising money and have good businesses correct right um they don’t have but they don’t have structural vacancy in their portfolio exe to 30% a lot of but yeah I mean I think a lot of people go into the industry and they want to be grand Cardone you’re not going to be Grant
(1:12:56) Cardone like he he posts every day on his Jet and His Lamborghini and all that sort of stuff you can fake a jet you can fake a Lamborghini I was like yeah I faked both and I made a post about it um you know you can rent a j you can fake the post yeah but you know I’m like a lightning raw for Grant Cardone because for some reason if someone doesn’t like gr it always ends up comes to me so behind the scenes when I went when I went down to Miami to meet with Grant I was down there for a couple days to meet with his team and hang out
(1:13:26) in his office and meet Grant and his family whatnot when the camer when the camera’s on we we we all know what what like what he’s like with the camera on when the camera is not on complete Southern gentleman yeah very kind complimentary generous with his time you talk to his employees I spent quite I spent a couple days with one of his VPS one of his early top one of his first employees yeah and the general the general Vibe is everyone really likes Grant yeah right and his investors like him yeah because he makes them money
(1:13:56) yeah and that and then people like anyone who wants to become a influencer understand you make people money they will like you yes you lose them money you are a villain y right yeah so do not lose people’s money yeah so end of the day people might not like Grant social media I can get that I totally appreciate that but the people that matter the most really like him yeah and that’s way more important it than being likable on social media and losing people’s money correct well and that’s the thing so look at his social media
(1:14:26) and they try to copy that yeah well fake it till you make it you fake it till you make it and also well your tenants are going to see that I mean look at the backlash that you know the the tenants and Hamilton had against the northern Ontario group because you know you go out into the world and you’re saying I’m a wonderful investment person and I’m making so much money and the people who live in your building going these yachts and these private jets you know doing bottle service at VIP plever hosting
(1:14:52) large conferences and saying look at how wonderful I am I’m making hand over on on these investors well I guess he wasn’t right but also these your building doesn’t have water exactly you going to have haters you’re going to have a lot of haters but you’re also inviting the haters in yeah you know I’m not making hand over fist on my my tenants and if they see my content I don’t want them to be saying hey I’m paying Adam $1,500 in rent and he’s telling this guy on the internet
(1:15:18) that he’s making tens of thousands of dollars flying away on to the career being on a private jet like and then I wonder why you know and then they wonder why their delinquency is so high or why they’re getting hate mail it’s like you invited it if you’re going to go out and tell the world that you’re a wonderful millionaire and then meanwhile you’re crushing and you’re you’re taking advantage of these poor attendants it’s it’s it’s kind of handin hand like you you you you brought it on yourself um so
(1:15:43) you know no we I’m very private you know I I’m very vocal I’m I’ve told you straight up I’m not making money on my portfolio yeah like I appreciate being so transparent and and I believe that most landlords are in the same boat you can f you’re Ontario if you’re in Ontario you can fudge your numbers I can sit here and be like yeah my building in Simco cash flow is $6,000 and you go oh that’s really good you get a lot of them they have no way to verify there’s no way to verify it well yeah no it does it
(1:16:08) makes $6,000 mon which is part of the the this fake teamm formula people can’t like there’s so many things that people are saying you can’t verify you can’t verify right and I mean it is true my building makes $6,000 a month my expenses are 5,000 6 you know like these folks are these folks like make like people on these yachts and jets they’re probably rented and also they’re probably financed by other people’s money yeah yeah what they’ve lent them money they’ borrowed and and
(1:16:37) the IR that back at one point the ironic thing is the biggest people who have fallen are also the big are the biggest people who took other people’s money but well also the living the biggest you know the ones that aren’t falling the ones who are holding their together never once did all of the braggadocious stuff you know if if if you saw someone in a the people who were posting about eating in fancy restaurants and sitting in private jets and doing all you know eating their fancy steaks and and posting about that stuff those are the
(1:17:09) people that are in trouble right now yeah those are those are usually red flags for me those are the red flags and those are the people who borrowed all the other people’s money the people who are like me and the other people who are still going to make it and get through this I have never once posted about me eating a a wagu steak or you know sitting in a private jet or flying first class whatever you know um I also think they’re poor wastes of money anyways like I you know I never once going to pay for first class flight you know
(1:17:40) there’s a time place for it like if for example if your Investments are paying people dividends for example it’s really hard to fake cash flow yes like you are actually money’s going out the door regular because like classic Warren Buffet dividend paying strategy right yeah you you buy stock in a company that’s been paying dividends for 30 years that is next to impossible to fake yeah no right you’re like that if your people are all paid and getting their regular money go ahead andjoy AO St i’ I’d be
(1:18:05) happy for you right because that means all your bills are paid everyone’s happy with you that’s awesome go enjoy yourself all those people have less than 10 years in Investments uh in into Investments if you’re eating Wu steak and you’re north of 10 years I’ll give it to you right but all the people that are following now all the people who are doing all those posting they have never gone through their first they been through cycle right um it’s very easy to make money in 20202 you know there was a
(1:18:32) lot of investors like I bought it a month ago and I made 50 Grand it’s like that wasn’t you that wasn’t your your smart Brilliance that’s just the market moving forward you know um so the people all these accidental millionaires yeah that that was what it was the the the peak of the market people became accidental millionaires now the Smart Ones like no one projected this yeah no one projected we’d have all these accidental like people put their money in the way of what they thought would you know we
(1:18:59) have appreciation all the sorts of things but yeah no one in their Wildest Dreams thought the market would have gone up this much no and and that’s why when people were saying oh you know Adam you’re doing really well it’s like no no no no hold the phone no we’re we’re in a we’re in an isolated environment I’m going to make money while the Sun’s shining absolutely I’m going to try and flip these properties over as much much as I can you know and and so that way I can get to a a a stable point but at no
(1:19:20) point was I like oh I must be so smart you know I’m looking at the prices I know the rent’s going going up I know the the mortgages are going up like that’s not me I’m not doing that I’m not I didn’t suddenly come uh figure out a hack into making millions of dollars in real estate the formula’s never changed the market changes but the formula never changes buy real estate wait you know and and you you put a lot more work into that than just wait there’s obviously a lot of steps in
(1:19:47) between but it’s not wait six months and it wasn’t easy yes and you had a lot of grief it’s not wait 6 months it’s not wait 3 years it’s wait 10 years you know if you haven’t got 10 years into this business you haven’t you haven’t done it yet you know there’s this there’s the thing in the entrepreneur world that if your business has business hasn’t survive a cycle you can’t consider yourself successful correct and so when I say I’m done in 10 years or in two
(1:20:09) years in about two years time that’ll be the 10 year mark for me I’ll be at that 10 year mark been through C where I’ve been through the cycle you survived that’s that’s something you should pet yourself on the back on exactly so I’ve done my 10 years and so then it’s like okay in 10 years time if I want to go out and eat a fancy steak sure I’m going to go do it and I’m with refine money with my own with my yeah with my refine money it’s not going to be other people’s money well it’s not going to be
(1:20:33) my refi money I’ve never spent my refi money on my own personal stuff because that’s borrowed funds you have to pay it back at some point you have to pay it back so if I go buy I could have taken my refine money and bought a beautiful brand new Top ofthe Line car but now I’m now paying for that car the next 25 years not even an asset you know so no you take your refi money and you put it into something else that generates cash flow and that’s what you live off of that’s how you survive so generates more
(1:21:00) cash flow than the interest you’re paying exactly so I’m going to take my refin man in two years invest it in as many different vehicles that I can maybe buy a small business you know invest in a small operator invest in some private mortgages buy some stuff in the states and whatever that generates that’s that’s my stake buying money you know but uh also when I do that until then you’re eating ground beef I’m eating ground beef yeah you know um um and and and that’s that’s how this business is
(1:21:28) that’s how business is done that’s how you survive and that’s how you don’t lose $400 Million worth of investor funds and $8 million and $50 million and 200 million to scatch one money like that’s how you do it 10 years in the business and whatever you got at the end of the 10 years now now you’re you’re ready to go because I’ve studied lost so much I I see other red flags that I didn’t previously think about red flags but we can talk about it offline innocent till proven guilty not here to
(1:21:53) gossip Adam uh want to thank you so much for making the trip out I know you hit some significant traffic it’s as if the real estate Gods didn’t want you to be on the show today they never want me to yeah because because you call the people’s out I do but so this is the part where in the show I we like to give my guest free Runway anything you’d like to share in general um I know we talked about lot of the scary things about real estate investing for example is real estate bad I don’t know no I think uh I think real
(1:22:27) estate is kind of right now I mean I think real estate is uh I wouldn’t say it’s bad but uh you know it it it’s it’s in a cycle everything comes in Cycles we’re all we’re just at the bottom of the cycle so I wouldn’t say you know today is probably not the best day to invest maybe wait a little bit longer I wouldn’t wait too long it’s you know it’s a timing of the market thing it might be something for a real realtive more say I’m I’m not currently buying at the moment because I’m still trying to
(1:22:52) clean up some loose ends um I think I think the time to buy decision uh is heavily based on how much cash you have and that how much debt free cash do you have to invest because if you have lots I don’t know why you’re not snapping up stuff yeah if you’re sitting on cash yes you should be snapping up some property and there’s lots of people in pain out there there’s a lot and there’s a lot Ontario I’m totally kidding yeah there’s about uh 400 houses up in Tim that are just going on9 199
(1:23:22) and then over 100 in Su St Murray and the the point is you have to look at the market that you’re buying in currently and right now that market is bad now is there deals absolutely there’s going to be someone who’s willing to sell their property at a loss or a break even or whatever it is but you have to factor in it’s like your mortgage is going to be six and a half 7% it’s almost impossible to cash flow on anything these days without aggressive like like yourself turn aggressive repositioning they call
(1:23:48) it or just heavy Renovations like basement Suites Garden suites converting units yeah but yeah there basically is no cashless you’re aggressive so if you’re willing to go in with that mindset yeah then you’ll do well yeah yeah yeah but if you think you’re going to go and buy a place in cash flow no you you’ve got to think about it’s the same thing it’s survive 2025 right um so invest to survive to 2025 because and and yeah if it was me buy something today at a at whatever the interest rate
(1:24:15) is lock in for two years and then hope that in 2025 I I would hedge my bets that the rent uh the the interest rates are going to go down by then they’re not going up anymore than they are but they might hold them for a very long time and I think that’s probably a year it gives everybody more time to buy exactly so by now with your high interest rates refinance in two years um you’ll have even a bit of principal paid down not much but you know um and that’s that’s the only way to do it and and uh if you
(1:24:43) think you’re going to be doing the same strategy we did in 2021 it’s not going to happen it’s going to take longer it’s going to take a lot longer to move properties along yeah we play normalize we play normalize was which still which could be like 5% appreciation year which is wonderful which is wonderful because the thing is real estate has never been a get-rich quick scheme no it’s a get rich slowly but guaranteed way not guaranteed high probability high probability high probability if you hold prop you’re for
(1:25:11) 10 years you’ll probably do quite fine exactly you know you hold a property you pay off that Mortgage in 25 years you’re fine you likely did quite well you did very exactly that’s that’s people have been betting on that our parents did that they buy your family home you retire and 30 years your mortgage is paid off your kidss moved out you rent a small apartment and you’ve got a windfall of cash from your home sale that’s not tax too high probability but you still have to be smart about your
(1:25:34) Market correct right um so that’s that’s the way it is and that’s honestly it’s kind of the way it’s supposed to be um so if any Guru or anybody comes to you says hey I’ve got a fast way to make cash it’s like run probably not no um if they’re they’re promising you know you know stability and slow there there’s some truth to that you know um but just listen just take hear lots of pitches exactly just like my beginner advice for example is like you know look at 100 properties and then
(1:26:03) you know what the top 20% are like right you also know what the better bottom 20% are like and then based on your strategy you may want the bottom 20 like kind of like you do yeah yeah I like the top 20 but again like once you have enough data to CH once you have um like comparison shop I don’t see why more people don’t comparison shop right well the other thing too is like I like to take wisdom as a as a grain of sand because eventually it starts to gain weight if there’s actual truth to it you
(1:26:31) know if one person tells me you should do this okay that’s one grain and the meanwhile if everyone else is saying this this one starts to you know get a little bit heavier so everybody gets one grain of sand and if if I start to see that the that the P the sand is piling up in One Direction it’s probably means that there’s some truth to it right which is typically like longterm 10 25 year exactly I don’t know anyone who would disagree with that and old school wisdom usually also you know everyone
(1:26:59) knows old school cliche wisdom that’s why it’s it sticks around good good advice sticks around and so if enough people tell you the same thing that probably means that there’s some grain of truth to it um but yeah the first guy coming out of the the gates saying I figured out real estate I got a new way to do it okay we we’ll see we’ll see we you know talk to old people too talk to old investors everyone’s talking to to the young punks the the gurus are never young I’m a young guy exactly but I mean
(1:27:31) you know the the the people who come out of the gate saying come and invest with me it’s always 20-y olds and I mean I aggress I I appreciate the hustle they’re young they’re hungry they want to make something of themselves but go listen to the old people ask some dude who’s like 60 years old and has own property for 30 years tell him you know I want to invest in real estate how do I do it whatever he tells you probably is the truth and and and one because he has no reason to lie he’s retired
(1:27:55) he’s got free wisdom to share he’s not selling you a course he’s not making money off of you he’s also not threatened you know if you go to uh uh someone who’s who’s Young and Hungry they’re trying to steal as much as they can for themselves you know so they have no incentive in helping you build wealth but no old guy I’m good you know I’m retired I got my boat I got my house or whatever I spend Florida six months or whatever go talk to that guy because he wants you to make money he doesn’t care
(1:28:19) if you make money or not but he he doesn’t lose anything from it and that’s the same thing with me it’s like people call me they’re like do you do you have advice it’s like no I’ll give free advice I’ll tell you what I think because also I I also believe that landlords need to help each other if you buy the investment property next to me and you run it like hell well it’s it’s it’s just like the guy with the with the crack uh head in his building it’s like every other building on that street was
(1:28:42) affected because that guy ran his building poorly I want landlords to be smart I want them to be knowledgeable I want to get rid of slumlords I hate bad landlords I want people to do their maintenance I want people to have no excuse to hate landlord yeah you know so I’ll gladly share free advice because I don’t I’m not here to steal your property I got my own I got my own stuff going on um how don’t where can people reach you uh they can send a request to Instagram because it is private and uh
(1:29:11) and follow me there I do share a lot of uh interesting stories about real estate and uh oh you’re it’s yeah very you and my buddy Tim Hong have some hilarious posts with your interactions with tenants prospective tenant people responding to your your your rent ads well that’s the thing cuz yeah everyone’s going to get the hate it’s like are my rents expense yeah that’s that’s how rent is and they show greed this this is housing inflation this is housing didn’t cause it I didn’t cause it um but you don’t
(1:29:42) control monetary Supply correct you didn’t you don’t control how many immigrants come to the country or International students wasn’t you don’t control my interest rate either like you know so like I I personally would love to lower my rents I’ve been saying this for months the rent is too expensive yeah I want to lower my rents I want to give I would love to lower my rents $300 yeah but you’ll go bankrupt if you do I I can’t do it right um but that means that’s $300 back into my tenants Pockets
(1:30:07) go to the movies go to dinner save that go on a vacation enjoy your life every tenant in this country is stuck in their Apartments because their entire salary goes to rent and food yeah that’s sad that’s sad what does that do it creates a bitterness it creates an anger and where are they pointing it at yeah the food companies gayen Weston and landlords right um so structurally they they just some them just cannot afford to pay your rent ex exactly and then you’re stuck nine months for hearing for
(1:30:39) me if I could if I could get the interest rates down if I could get all my expenses down 30% or whatever it is I need to do I would gladly give my rent right my tenants a rent discount put more money in their pocket but there’s going to be more inflation exactly um so and and I purely squarely point the finger at government the the the re the government is the reason for all of this there’re also the solution unfortunately the only way we’re going to get out of it is through government getting out of
(1:31:08) our pockets which could be a whole other subject for a show yeah Adam thank you so much for coming in no worries thanks for having me thank you for watching if you want to learn how to invest in real estate from scratch my team teaches beginners how to use the number one investment strategy that I personally use in a virtual free training class every month go to investor training.
(1:31:43) com 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 training.com YouTube thanks again for watching see you in the next video