What are young people being taught these days?
As your classic Asian parents, we want our kids to excel in their after-school activities, so naturally, we asked our kids’ gymnastics club for private lessons.
The teenage staff member’s response was, “That would not be fair,” as in, my kids would have an unfair advantage over their classmates.
For context, the club is so busy we were only to get one class per kid per week which is not even enough to keep up in a competitive sport, so we’re switching clubs.
But still, what does fair have to do with anything? As Clint Eastwood famously said at the end of Oscar Winning movie Unforgiven, “Fair ain’t got nothing to do with it.”
Life isn’t fair, and pretty much everything I’ve done in life was to get ahead: working hard, working late and weekends, going to Business School, investing in real estate, investing in coaching, reading books, taking courses, etc.
I don’t believe in fairness, I believe everyone has opportunities, I believe in winning and getting ahead in life.
Fair… fair is for communists. I wasn’t born with natural talents, so my kids won’t inherit any. They’ll have to learn to grind.
Speaking of young people, I was checking in on one of our clients who hired a new property management company to rent out his property, it hasn’t been rented, and two months have passed.
That’s bad; the market is telling you something.
Peak rental season is the Spring because parents often want to settle on a place to live before the next school year begins, and the apartment is two bedrooms plus a den. Ideal for a family.
I informed him as he has a couple of weeks till school is out for summer. I reviewed his ads with him, and they’re fine; they can be improved, view video, and better ad writing, but the asking price seems high.
I proceed to review his competition in the immediate area and comparable rentals; newly renovated 2 bedrooms are asking $100 to 300 less than his.
Some are above grade, as in not basement apartments but rather the main floor and 2nd floor. If I were a tenant, I’d likely take that. I’ve identified three direct competitors in a small town with less than 50,000 population.
I explain to our client this is a competition for tenants and we’re losing. Two months is too long not to make adjustments, and he needs to get aggressive.
Note this property is in a town we no longer recommend to clients as there appears to be market saturation as in too many investors with unrented properties.
Affordable markets can be a double-edged sword when prices are affordable. If the rents get too high, it makes better sense to buy, and that’s what we’re seeing in the market.
Any reasonable person knows real estate is a good investment hence the top-end tenants we used to rent to are choosing to buy.
Two months of advertising and no tenant is a red flag, especially in a small market. A good reminder that even if one has a property manager, especially a new one, you need to check on their work and, in this case, lack of progress.
Wherever you invest, do make sure to focus on economic fundamentals. Our clients did hence the reason why their properties tripled in value over the last 11 years. And they don’t experience two-month vacancies or newly renovated properties.
On a macro level, what a world!
I don’t geek out on world news and economics as some, but just to summarise, our friends, the Americans will raise their debt ceiling to avoid bankrupting the richest country in the world and in response, the bond market predicts the Federal Reserve will increase rates another 0.25% this July or September before cutting near the end of the year.
In Canada, our economy performed better than expected, causing speculation the Bank of Canada will raise interest rates again.
My bet is no rate increase as inflation has slowed, and if there is an increase, I believe that to be great news for buyers as the recovery of the real estate prices will slow, allowing them more time to buy great deals.
In the US real estate market, we’re seeing some serious problems. There’s an investor named Jay Gajavelli who owns Applesway Investment Group and has a fund making national headlines, owning 7,000 multifamily units in Houston, Texas. Amazing right?
Not so much. Several of their buildings are being foreclosed on by their lenders.
This is why I say on this show, I don’t care how many units someone owns, I care about how much money is being made, and unfortunately, the investors of these funds are going to lose their investment.
The article mentions Jay is coached by a “Brad Sumrok.” Me being nosy, I crept Jay’s Facebook, and he appears to be part of a large group of investors under Brad buying apartment buildings.
As the old saying goes, where there is smoke, there’s fire, so this could be the early days of a number of foreclosures of apartment buildings in the States.
I even watched their local, new report on how the Mayor of Houston and several heads of department with both police and fire department showed up on Jay’s property because it was being so badly managed: broken steps and handrails, overflowing garbage bins, rats, etc.
Basically, there could be some great deals on the horizon for those with deep pockets and the know-how.
Here in Canada, there are many groups that promote multifamily investing. As a result, my long-time apartment building friends across the country share with me how there are multiple offers on apartment buildings where the “winning” bid makes no sense financially.
Time will tell if we see the same level of problems in Canadian apartment buildings.
Not to say all investments are bad; one just has to put in the time and effort to find the good deals, as past guests of this show have shared.
From what our clients are seeing on the streets, we have team member coach Steve Phillips here to share what our clients are experiencing, both good and bad and the deals we are coaching clients to acquire.
The focus has been on Kingston, ON., away from small, sub-50,000 population markets, and Steve will explain why.
The Bill 23, More Homes Built Faster Act, and the densification allows us investors to create more housing, collect higher rents and increase property values.
We know what the highest and best-use investments are; we just have to find the properties and the investor clients to connect them with.
Why Condos Are Bad. Highest and Best Use, Triplex Conversions East of the GTA Are Good
Have you met Steve Phillips?
He’s a member of my team, the four-time award-winning iWIN Real Estate.
Right out of school, he worked for one of the largest condo management firms in the GTA; he’s a serial entrepreneur, had a construction business, and real estate runs in the family as the Mrs. is a designer.
Steve is well known in the Durham region as well as within the investor community, having been coached by and taken courses by Quentin D’souza.
If you know Steve as I do, he doesn’t sleep until his clients have a great deal under contract, and he’ll be sharing how he’s been doing so, along with the numbers behind the deals.
You can reach out to Steve at Steve@infinitywealth.ca if you’d like to book a call or tour.
Please enjoy the show!
This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me. Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up. If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/events and register for our next FREE Online Training Class. We will be back in person once legally allowed to do so, but for now, we are 100% virtual.
No need for you to reinvent the wheel; we have our system down pat. Again that’s www.infinitywealth.ca/events and register for the FREE Online Training Class.
To follow Steve:
To book a call with Steve: https://calendly.com/steve-1502iwinrealestate/30min
On Instagram: https://www.instagram.com/iwin_on_the_eastside/
HELP US OUT!
BEFORE YOU GO…
If you’re interested in being a successful real estate investor like those who have been featured on this podcast and our hundreds of successful clients please let us know.
It is our honour to give back and educate others on how we build cash flowing real estate portfolios using all the best practices shared on this podcast, from the lessons of our hundreds of clients and of course our own experience in owning investment real estate.
If you didn’t know already, we pride ourselves on being the best of the best real estate coaches, having the best property managers, contractors, handy people, cleaners, lawyers, accountants, everyone you need on your power team and we’re happy to share them with our clients to ensure your success.
New investor or seasoned veteran investor, we can help anyone by providing our award winning coaching services and this isn’t all talk.
We have been awarded Realtor of the Year to Investors in 2015 by the Real Estate Investment Network, 2016 by the Canadian Real Estate Wealth Magazine and again in 2017 because no one told the judges no one is supposed to win the award twice but on merit, our peers deemed us as the best. In 2018, we again won the same award by the Real Estate Investment Network.
Hopefully being the most decorated team of Realtors in Ontario will make you consider us for your first or next real estate investment. Even if you don’t invest in our areas, there’s a good chance I know who would be ideal for you.
I’ve been around for a while, some Realtors are talented at servicing investors there are many with great ethics. The intersection of the two, talent and ethics is limited to a handful in each city or town.
Only work with the best is what my father always taught me. If you’re interested, drop us an email at firstname.lastname@example.org.
I hope to meet you at one of our meetups soon.
Again that’s email@example.com
Infinity Wealth Investment Network – would you like to know how our investors returned 341.8% on positive cash flowing real estate over the last five years? On average, that was 68.4% per year.
Just imagine what winning in real estate could do for you.
If you would like to know how we did it, ask us how by calling 289-288-5019 or email us at firstname.lastname@example.org.
Don’t delay, the top markets we focus in are trending upward in price, so you can pay today’s price or tomorrow’s price.
Till next time, just do it because I believe in you.
Hamilton, St. Catharines and Toronto Land Development, Real Estate Investor, and soon to be builder.