We have a special treat today in my new friend Bruce Firestone, a 2nd generation commercial real estate investor/developer, so he’s super successful and experienced.
He’s built thousands of homes, dozens of office buildings and shopping plazas.
Bruce is best known for founding Ottawa’s NHL franchise, the Ottawa Senators, building their arena, former Chairman and part-owner of the CFL Ottawa Red Blacks, so he’s kind of a legend in the Ottawa community. He’s even a member of Ottawa’s Sports Hall of Fame.
But before we get to Bruce, what a fascinating real estate market to be in. Entry-level, vacant or owner-occupied properties make up the bulk of transactions these days.
Tenanted properties are scaring away buyers these days. I’m hearing this from my team and my old-school investor specialist Realtor friends in Barrie, Oshawa, and downtown.
Everyday buyer investors are taking the summer off. Investor sellers, there are more listings than every of quality turnkey properties, but if they’re tenanted, they’re sitting for now. The market changes quickly, and I’m anticipating a busy September and October, but much depends on what the Bank of Canada does.
The bond market anticipates a 29% chance the rates will be higher than 0.25% in September and a 71% chance in December we will be 0.25% higher than today.
Whenever that increase happens, we’ll be at the peak; those already in pain will feel even more, and the rhetoric from the Bank of Canada will pivot to say they are pausing rate increases. We’ll see the overall market shift in favour of sellers.
I’ve had conversations with some of our listing clients, we have to sell this fall, or we may be holding till the spring. The nice part is my clients’ properties, all houses on land rent for $3,000-$4,400. Some are plus utilities, so they generate significantly more rent than a single-family home or condo, which greatly helps cash flow and weather this storm.
Contrastingly, preconstruction is brutal, and prices are down around 20% or more. Some buyers are fire selling, giving up their deposits or returning units to the builder. The builder, in turn, sells the unit for 20% less than what the original buyer paid, so those looking to sell via assignment are competing with the builder when it’s bad enough to be competing with all the other assignment sellers.
Investing in real estate is tough enough when well-researched and done professionally with skills and sufficient capital. When folks skip steps, are not educated, take their eye off cash flow and speculate… that worked since the early 90s but not today.
Many who invested in single-family homes between 2020 to 2022 are hurting, having never researched the highest and best-use strategies in affordable markets that actually cash flow.
Sadly, many who made mistakes got bad advice from television, influencers, condo salespeople and novice coaches.
I hope you, my 17 listeners, are getting educated and networking with actual successful real estate investors.
If you’re looking for quality at a great value, I am biassed, obviously, but our online iWIN Meetings and in-person, inside-the-property iWIN MasterMind Tours are outstanding. At our Tuesday, September 19th meeting, my team and I will share the latest in the market at a high level and street level with sale prices, renovation budgets, rents and the best neighbourhoods to invest in, where our clients are investing.
Plus, we have a special guest in one of the larger developers in Ontario. Cherry and I invest in their projects, and we’ve been provided exceptional, passive returns.
The following Saturday, September 23rd, we will be hosting the iWIN MasterMind Tour in the Niagara Region, which in my opinion, has a big upside thanks to the recent correction, new hospital investment, and the government is not investor friendly YET.
When they do pivot as they’ll need to do in this housing crisis, there will be a flood of investment, but the sophisticated investor should get ahead of the rush. Do not do what everyone else is doing. If we wanted to do what everyone else was doing, we’d be buying pre-construction condos and mutual funds and not getting rich.
To register, if you’re receiving my emails, you’re good to go and will be informed when events are announced; if you’re not receiving my emails, then you’re missing out on what 10,000+ of the iWinningest investors are doing to get that information advantage by being on my email list.
Simply go to www.truthaboutrealestateinvesting.ca, add your name and email address on the right side, and you’re good to go.
Information is power. The information we’ve shared with our 45-something, self-made real estate millionaire clients is even better. I hope to see you at a future event!
On a personal investing front, I’m often asked what we are buying during this housing market correction. The answer is, sadly, nothing.
We’re just holding, happy with our portfolio, and bought a new business, an Accounting Practice based in Ottawa. Still, they have no physical office as all the staff and Accountants work virtually all across Canada.
We closed a month ago, and Cherry is, as you can imagine, really busy with the transition while I’m the supportive husband in the background running around, driving the kids to their camps and extracurricular activities.
I will share more about the new business that cost more than our house next episode, but I wanted to buy this fourplex; Cherry wanted this new business, and you know who won.
What’s A Better Investment? Building an NHL Franchise or $100’s of Millions of Real Estate With Bruce M Firestone
On to this week’s show!
The Ottawa Senators recently dominated the hockey headlines as it’s been reported they sold for around $1 billion US.
While Bruce M Firestone is no longer the owner, I’m sure he’s proud that what he started has ballooned to massive success. Imagine if the Sens had kept future hall of famer defenceman Zdeno Chara, then the Sens, like every NHL team, would have a Stanley Cup before the Leafs, but I digress.
As mentioned, Bruce has built 1000s of homes, dozens of commercial plazas and office buildings.
For fun and to give back, Bruce was an entrepreneur-in-residence at the University of Ottawa’s Business School, Telfer School of Management. Per his Wikipedia, Bruce was a university professor as he does have his Master’s in Engineering and a Ph.D. in Urban Economics.
Bruce now focuses more on coaching real estate investors as he finds the work really rewarding, so he’s here today to share the journey of his super successful career, how to be a successful leader/CEO, how he overcame much opposition to building an NHL arena on farmland, what his everyday investor coaching clients are doing to create cash flow in their portfolios.
The industrial land, co-sharing, and garden shed workshop strategy is fascinating. That’s all on one property, by the way. Pay particular attention to that part, as that same real estate startup is now for sale for a couple of million dollars.
Please enjoy the show.
This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me. Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up. If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/events and register for our next FREE Online Training Class. We will be back in person once legally allowed to do so, but for now, we are 100% virtual.
No need for you to reinvent the wheel; we have our system down pat. Again that’s www.infinitywealth.ca/events and register for the FREE Online Training Class.
To connect with Bruce you can find his information on his website: https://brucemfirestone.com/
HELP US OUT!
BEFORE YOU GO…
If you’re interested in being a successful real estate investor like those who have been featured on this podcast and our hundreds of successful clients please let us know.
It is our honour to give back and educate others on how we build cash flowing real estate portfolios using all the best practices shared on this podcast, from the lessons of our hundreds of clients and of course our own experience in owning investment real estate.
If you didn’t know already, we pride ourselves on being the best of the best real estate coaches, having the best property managers, contractors, handy people, cleaners, lawyers, accountants, everyone you need on your power team and we’re happy to share them with our clients to ensure your success.
New investor or seasoned veteran investor, we can help anyone by providing our award winning coaching services and this isn’t all talk.
We have been awarded Realtor of the Year to Investors in 2015 by the Real Estate Investment Network, 2016 by the Canadian Real Estate Wealth Magazine and again in 2017 because no one told the judges no one is supposed to win the award twice but on merit, our peers deemed us as the best. In 2018, we again won the same award by the Real Estate Investment Network.
Hopefully being the most decorated team of Realtors in Ontario will make you consider us for your first or next real estate investment. Even if you don’t invest in our areas, there’s a good chance I know who would be ideal for you.
I’ve been around for a while, some Realtors are talented at servicing investors there are many with great ethics. The intersection of the two, talent and ethics is limited to a handful in each city or town.
Only work with the best is what my father always taught me. If you’re interested, drop us an email at email@example.com.
I hope to meet you at one of our meetups soon.
Again that’s firstname.lastname@example.org
Infinity Wealth Investment Network – would you like to know how our investors returned 341.8% on positive cash flowing real estate over the last five years? On average, that was 68.4% per year.
Just imagine what winning in real estate could do for you.
If you would like to know how we did it, ask us how by calling 289-288-5019 or email us at email@example.com.
Don’t delay, the top markets we focus in are trending upward in price, so you can pay today’s price or tomorrow’s price.
Till next time, just do it because I believe in you.
Hamilton, St. Catharines and Toronto Land Development, Real Estate Investor, and soon to be builder.