Why I'm Investing In US Real Estate

Why I’m Investing In US Real Estate

Investing for positive cash flow, areas of job growth and warm weather, regaining control of the retirement investment plan and legacy portfolio; all this and more on today’s episode of the Truth About Real Estate Investing Show for Canadians.

I’m your host Erwin Szeto, landlord since 2005, Realtor and Coach to investors since 2010, 4X Realtor of the year, $400,000,000+ in client transactions, and host of this little podcast that could that is ranked #81 Business podcasts per Apple iTunes.

We have a different podcast for you today as I am the one being interviewed by today’s guest of the show Andrew Kim, CEO of Share, a technology based asset manager of single family rental properties in the USA with focus on the landlord friendly states of the southern USA.

After months of research and due diligence on both investing in the US and on Share, I’ve convinced my wife Cherry the risks we bear with the Landlord Tenant Board with an eight month backlog just for a hearing, rent control that makes inflation our expense to bear and with better, simpler investment opportunities in the USA it make sense to sell some, if not all our rental properties here in Ontario.

On today’s episode, the tables are turned: Andrew asks me all about the decision to invest in the USA via direct ownership of real estate. Direct ownership, unlike what others out there in doing in raising capital or OPM is I own the property with full title. I have complete control over the house and do not share ownership with others like joint venture, or shares in a company.  It’s just me, the bank, and my wife Cherry.

As always in how our nearly two decades of investing has been, direct ownership, if done correctly, means higher returns to get ahead in life.  I bear all the risk and keep all the upside.  Worst case, I own a quality house in a quality location that I can renovate, move into, or sell.  That’s how I’ve always invested.  

My wife and I don’t take on partners, you don’t need us as joint venture partners, I can show anyone how to invest just like my 45+ millionaire and multimillionaire real estate investors in the most efficient path, with the least stress as possible via direct ownership.

Let’s never take our eye off the goal of every real estate investor: a comfortable, maybe earlier retirement.  With easy financing in the US available for unlimited properties, the tax part I’m not worried about as the worst case scenario if done correctly is one pays the same amount of total tax but split between US and Canada, the biggest risks to the real estate investor are removed when investing in the southern, landlord friendly markets… there are risks like there always are but I’m choosing to invest my hard earned money where there are a lot fewer risks and more potential for cash flow.

Everyone has to do their own research and due diligence. I’ve done mine including a site tour around Atlanta, Georgia and I’ve grilled Andrew probably more than anyone ever has.  Poor guy was seated next to me on the flight home from Atlanta and there was no inflight entertainment on our ghetto Air Canada plane.  Just 2+ hours of me asking questions :))) 

Have a listen to Andrew asking me the most common questions Canadians are asking about investing in the United States.  Please enjoy the show.

For more information on SHARE and investing in the US:

Web: www.iwin.sharesfr.com mention Erwin or iWIN or you’re in pursuit of the truth about real estate investing and they’ll take good care of you.


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 Listen:

** Transcript Auto-Generated**

Erwin 0:00
Investing where positive cash flow areas of job growth and warm weather, we’re getting control of the retirement investment plan and legacy portfolio. All of this and more on today’s episode of The Truth about real estate investing show for Canadians. I’m your host Erwin Seino. Landlord since 2005. Realtor and coach to investors since 2010. Full time realtor of the year 400 million. That’s 400 million plus in client transactions and host of this little podcast that could. It’s currently ranked number 81 Business podcasts per iTunes. And that’s all over the world. Thank you to my 17 listeners, thank you for all the likes and subscribes and positive reviews. Five stars reviews please on Apple or Spotify. We have a different podcast for you today as I am be the one being interviewed by today’s guests of the show. Andrew kin CEO of share a technology based asset manager of single family rental properties in the USA, a focus on landlord friendly states of the southern USA. After months of research and due diligence on both investing in the US and on Share. I’ve conveyed to my wife cherried the risks here that we bear with the landlord tenant board with an eight month backlog just to get a hearing. Even if it’s something as little as not a little but non payment of rent, rent control. We’re only allowed to raise our rents two and a half percent here in Ontario three and a half percent in BC. That means that inflation is the risk for us to bear as landlords. So and then you combine that with the fact that our better simpler investments in the opportunities in the USA, it makes sense for us to sell some if not all of our rental properties here in Ontario, actually have three listings coming up in the next week or two for my student rental properties. On today’s episode, the tables have turned Andrew asked me all the all about the decision to invest in the USA via direct ownership of real estate. So direct ownership deserves some attention and definition. Unlike what others out there doing a lot of influencers and real estate gurus they are raising capital or OPM other people’s money, which is fine. This is a capitalist society, I’m a part capitalist as well. But this is different. A direct ownership means I own the property with full title, I have complete control over the house and do not share the ownership with anyone via joint venture or shares in a company. It’s just me, the bank and my wife Jerry, as always in how our nearly two decades of investing has been direct ownership, if done correctly, means higher returns. And that means getting ahead in life. I bear all the risk. And I keep and more importantly, what really happens, at least over the last 20 years or so is it to keep all the upside worst case I only quality house and a quality location that I can renovate move into or sell. That’s you can’t see the same for many real estate investments out there. This is how I’ve always invested. My wife and I don’t take on partners, you won’t see us asking asking people to raise capital or private lending or any borrowing or anything like that. It’s my belief you don’t need joint venture partners is I can show anyone how to invest just like my 45 Plus millionaire multimillionaire real estate investors. Using in the very efficient path with the least stress is possible via direct ownership. I can’t say it’s been not stressful last few years as an Ontario landlord. But let’s not take our eye off the goal, which is of every real estate investor, a comfortable maybe even early retirement, that is typically the primary goal of pretty much every investor that I meet. With easy financing in the US available for unlimited properties. The tax part I’m not worried about my accountant. So talk to your own accountant. The worst case is if you don’t if you do your taxes correctly, your corporate structure correctly, one will only pay the same total amount of taxes but it’s the split between how much you pay, you’d pay someone to the US and you pay someone to Canada. That’s the worst case I’m not paying more tax. The biggest risks to the real estate investor are removed. That’s for the interior. That’s for the Ontario investor. There’s a whole lot less risks when investing in the southern landlord friendly markets of the USA. There are risks but there always are. But I’m choosing to invest where my hard earned money will work harder for me, again with a lot fewer risks and greater potential for cash flow. Everyone has to do their own research and due diligence. I’ve done mine I’ve done mine including I did a site tour around Atlanta, Georgia. I think I looked at eight or nine properties from the inside I knew so I was inside of them myself. And I’ve grilled Andrew CEO share probably more than anyone else has. Poor guy was sitting next to me on that flight home from Atlanta and there are no there was no inflight entertainment for him to get to hide hide from before from Yeah, we had we were on like getaway or putting on a plane in economy class, just two plus hours of me asking questions. Have a listen to Andrew asking me the most common questions Canadians are asking about investing in the USA. Please enjoy the show. Oh, yes. And for more information on share investing in investing in the US, the website is www dot iWin dot share sfr.com. I think that’s WWW dot iWin dot share sfr.com mentioned Erwin or Iwan or that you’re in the pursuit of the truth about real estate investing in they’ll take good care of you. Please enjoy the show.

All right, Erwin. So what’s keeping you busy these days? Listing I’m currently listing three my properties. There’s no market for student rentals right now for duplexes. So I’m focusing on my student rentals, which have higher demand. So thank God, I had a diversified portfolio. So again, my plan is to sell the timing, the seasonality is correct to be selling a student rental. So that’s I’m prepping to sell all my student rentals. So that’s keeping me busy. And yet having to talk to my clients through these difficult times of being a landlord with elevated interest rates. landlord tenant boards backed up eight months just to get a hearing. And that’s just to get a hearing doesn’t mean you get a decision. So having to support clients through that, you know, having to support clients through challenging renovations, or unfortunately, defective renovations, like at this one client, who bought a turnkey property, but he’s got water coming into the basement. Right, bought a turnkey, from the from the builder, from sorry, a builder, a small, very small builder, and then his other property, then he has renovation, as base basement suite at the basement, the tenant moved out because the floor was put down on level floor. So the floors popping up in in the sharp edges on on flooring, so their child who’s still crawling around this too unsafe. So how to do cost to the client through yikes dealing with the manufacturer and the general contractor on Yeah, you’re like a real estate investment shrink or therapist. You know, the funny thing is like when I when I actually touched BTT asset manager is as like, this is what I always tried to do. Right, right. But we can never get to that scale that sort of we can never have all all great vendors and each of the positions. Like for example, property managers, I’ve personally fired five property managers. I just fired one earlier this year for my St Catharines properties. It’s just and then the tenant things is harder, right with you know, I have properties that are under rented by like $1,400. Right, because, and then for all the landlords listening, like we are subsidizing our clients lifestyles, and we’re backstopping their housing inflation. So everyone feels the same like I do. And, yeah, firstly, I’m tired of it. Yeah. So, you know, it says the right season to get rid of your real estate, why are you offloading? Why is it just because of the negative cash flows I had the headache or what’s the driving force. So, couple things, I want cash so that I can move that money around to better assets. One pay down some debts and take some profits when there were some headaches because again, like to these properties, that property manager are fired and so it’s been a bit of a headache to deal with that. This is not why I got into real estate, I didn’t get into real estate to be a landlord to like, deal with the stresses of being a landlord. And then, you know, found opportunity in the states awesome, where I can find better honestly better numbers on a single family home than a student rental. And then student rentals for anyone on a student rentals are difficult to finance. Versus I can buy properties in the States with debt service ratio mortgages, which is just a commercial commercial apartment buildings which is what the dream for every investor is to not have to self qualify for property for mortgages and I’m difficult to self qualify because I’m self employed and I have like seven corporations so mortgage people hate me Yeah, because the review like seven corporations to qualify me and then if they can’t qualify me there’s did all this work for nothing. Yeah, it’s a manual process. There’s no system for that. Oh, it’s brutal. Yeah. And then like, we my wife, usually my wife has explained to the mortgage company like what’s going on? Because that’s not easy to to interpret all this. So yeah, looking for it easier. Looking for opportunity. Yeah, I like I’ve been public about it. I believe that the markets gonna bounce back once we see Some, what’s the rhetoric? Like once the rhetoric changes for the Bank of Canada, the interest rates that they’re at least pausing, which they’ve already started to allude to, then we’ll see property prices go back up. And, and then my, my belief is that the Americans will cut after me after we do. So it’s ideal timing, I think, to be getting into, like the US market, or Canadian market, if that’s your choice, it’s not mine. But yeah, I see other opportunities. Did you start looking down sales before we met, or was that like, we saw you were actively kind of looking not actively, like, I’ve had, like, I’ve been around real estate investing since like, I’ve been a landlord since 2005. I started getting really educated in 2008. And even back then, like, there was some good content around how it’s easier. It’s more favorable for landlords, the rules and regulations in the States. But the entire time finding financing readily easily. Scalable financing was not available. Up until, like all the people I knew who were buying in the states were either doing cash like hard to cash, or they’re using all HELOC money off of their home. And these are Canadians. So they’re buying up to $200,000 house in Florida. All that money came from their HELOC. That’s hardly scalable or good use of capital, in my opinion, for investment purposes. So I’ve ignored the US market. I’ve always been a fan of America, like the American economy. And, you know, I drive a Tesla, and never thought I never thought I don’t want an American car. Never. Like my family had terrible experience with like Pontiacs and GM products. So never like we swore as a family we’d never own another American product and car. Now I drive a Tesla. Anyway, USA jersey. Yeah, and we’re in need USA jersey. Maybe it’s made in America to know it’s made in China. But no, I never considered the US never took the CEUs seriously until until just the last few months. Okay, so I know you’ve been diving deep. We’ve been spending a lot of time together. You’ve officially joined our advisory board we trip to down south like as one by the way. Yeah, yeah, that was definitely a good trip having dinner before dinner. That was awesome. Yeah. Yeah. So you know what was? What was the biggest eye opener for you like coming in and going down sell speaking to some property management companies like what were the biggest takeaways of that trip? So even before that, first of all, was the financing piece opened up? So our now mutual friend Scott dealing them? Because he thought he because he focuses on investors and because he’s dual citizen, he was able to open up shop in the States. At last check. He probably has more now at last check. But he had nine lenders ready to lend. I think he’s got Yes, but onboard another one today. Fantastic. But and every time we onboard another lender, like the term seemed to get better. Are you searching more aggressively? Yeah. Well, yeah, through I’m sure you’ve helped guide him into as well which lenders are more favorable, really great job. Like, I’m constantly pinging him like, like, I just messaged him again, got this one scenario, how can we help this one place and then go with their Canadian let me look on this side, as well as sat down south Mike perfect. So Scott’s coming on the show as well. So our listeners will understand better his background, but this high level, like he was the number one person at a Bay Street bank 400 units in one year, which is absolutely incredible. 400 mortgages. And he did, yeah, he got me several mortgages, tough mortgages, to student rental mortgages, which are tough mortgages, and I’m tough to lend to. So he’s always been great to me and my clients. And now he is the only Canadian broker I know of who can offer investment mortgages for Canadians on us properties. And from what he tells me, each lender can do like 10 to 15 properties. So now I have a year. Okay, so no one’s gonna get to that point, everyone’s gonna run out of capital way before they get to their mortgage limit. Just my experience, most people run out of capital before they run and mortgage the room. So now, so now I can do leveraged asset buying housing buying. So that’s that was the first thing that otherwise, if that wasn’t available, then I wouldn’t have gotten to Atlanta with you. Right, right. Because there’s no point in doing due diligence and American Properties and Property managers and share your in yourself that without knowing that I could scale a portfolio. I can get to like a 1020 30 property portfolio. Right. Right. Like that’s your experience too. Right? Exactly. You’re on 20 yourself. No one you can’t do that cash all cash? No, no, no cash, definitely not cash. So So then when we went to Atlanta, first off, one of the one of the REITs invest and they just bought a building. They don’t normally buy buildings. They used to do land developments, but they just bought a building in Atlanta. Oh, yeah. Like Atlanta is good. So so they sent me their pitch deck. So I’m reading through and like, this all makes sense. Like I went to business school. I’m old school and a real estate investor. I don’t this is not an emotional for me at all decision. I grew up I go based on job growth, economic fundamentals is the population growing. populations tend to grow when jobs are growing and incomes are growing. And Atlanta just tick so many boxes, right? Head Office to seven team fortune 500 companies 31 head offices for Fortune 1000 I went I took a selfie in front of the coat Museum, coke, Coca Cola had offices in Atlanta.

So just it’s check so many things. population is growing way faster than the national average. It’s a tech hub. The airport’s like, the one of the biggest in the world. It’s not Yeah, so it’s just jobs, jobs, jobs, jobs. Huge, huge population. I didn’t know all these things like area populations, greater Atlanta is like 6.2 million. So that’s for anyone who’s falling. That’s like 50% bigger than, than all of Alberta. And this is one city in America. Right. So, so going in, I was impressed. And then also the deals the past deals you guys have done. I was impressed by the numbers. You know, it seems like the ref ratio was if a property was 300,000. They were in for $2,000 a month plus utilities, single family. And then as someone who’s done a lot of renovations I’ve owned over 40 houses personally, almost all of them are very invasive mortgages. I’ve done top ups where I’ve added second stories. I’ve done lots of basements I’ve done additions I’ve done full gets guts where like, like the house is stripped down to just a brick wall. Even the windows no roof even I’ve taken a roof off of a property as well. Wow. Oh, yeah. Hardcore. Hardcore. And then versus I looked at your like the shares business model. Like your you got your econ major renovations. 50 grand, like an extreme major renovation? 50 grand like, Oh, yeah. 50 grand, you might see a stud 50 grands a joke. Right? Yeah. Like our average or our for basement apartment retail is 160,000. Canadian. Right, which is standard practice for us for renovation. And we’re and we’re looking at a hold of being vacant for like 612 months. Oh, yeah. Right. Like, how long does it take you to do a $50,000 renovation? Yeah, well, I think they quoted, you know, we tried to deploy depends on which property manager will you know, they internally target $1,000 a day, but probably closer to 750 to 800. A Day a day is their target. So we’re talking about some two months. Yeah. That’s your that’s your major. Gotta get Yeah, we we put that into the performance. So we got to get a hold ourselves to that sort of velocity. Right. All right. But yeah, 50,000? No, I mean, in proportion to the house price, I get a $200,000. House. It’s 25%. But I guess what’s 162? The price of one of those houses? It’s a lot. Yeah. But in this principle, simply 160 Canadian is more than enough downpayment. Yes. To get a whole house in the States. Yeah, yeah, it’d be all cash. Pretty close. Yeah. And the objective, the objective of a real estate investor is usually the one hard assets. And there’s nothing harder than land. My basement apartment doesn’t come with a new land, right? If I buy a garden suite doesn’t come with any land. Right? I buy a house that comes with land. So everything that seems fun, feels fundamentally fundamentally correct about owning a property in and around Atlanta. And then this meeting was meeting with the property managers how they went out when I’m telling them my story. Properties are 600 grand. It’s like, What world do you live in? Oh, yeah, what world you live in? Because, you know, we as Canadians joked How ignorant Americans are to us. I’m just equally ignorant to them. So, so remember to hear about like us having like million dollar duplexes or triplexes. And then for for us to tell them like eight months in the landlord tenant board, to for non payment of rent. Yeah, just to get a hearing. Like this is all foreign to them. The price points, the amount of capital at the shell out the tenant rights. We have rent control, which they don’t have. Right, right. Every law this was foreign to them. Yeah. So to them, this is like the worst this this investment makes no sense. Right? My investments make no sense. Yeah, right. What I currently hold. So then what do you what do you say to like other Canadians and like the, oftentimes when we speak to Canadians, there’s so many looming questions in so many gray spaces, they’re like, Well, I can’t physically go and touch and see my property or you know, what are the tax implications? So what do you say firstly, to, you know, the proximity question, not being able to kind of touch feel, see, put eyes on their property. Well, that was pointed my window Atlanta, I need to get a taste to feel like I get to see some properties. Thanks to you setting up those meetings with the property manager showed us around different properties. That was hilarious. That was a really, really nice properties first. That’s classic realtor, show them the nice properties first. And then like, let us like we always, we were constantly asked like, you’ll want to go see what a bad property to you is or a bad day. Yeah. And that’s like, we walked in the neighborhood like this isn’t a bad neighborhood. Walk here freely. So sorry. Like 3000 square foot brand new house has never been lived in three to 90 grand. Humongous lot. Yeah. Right. Like, these 3000 square foot brand new and like, you know, stone countertops and stainless steel. Yeah. That one was a bit of much though. They, but they’re so cheap. Yeah. And they it was funny, because we’re telling the Americans this would be 1.5. Back home. Yeah. If we listed for this price, we’d have 30 offers in like two hours. Pristine house. That was a bit overkill. But yeah, I hear you. But so yeah, proximity, I think to his throne. I’ve seen people proximity invest. And I’ve studied, I’ve, like I live in breathe real estate. So anytime there’s been like a massive failure in something, I study it. Because that’s where we did business school, we learned how to be a case study. Right? Right. So I kind of like each massive failure to me as a case study what went wrong where they do. So for example, in the case of like, epic Alliance, really not familiar with him, but that was a that was, I think that was like over 200 properties and more largely in Saskatoon. Right? So what went wrong? So small town? And then just a simple Google Streetview? Does one stop walking around the virtually walking around the neighborhood? You see, like cars were not nice, like windows were boarded up? This is not a good area. Right. Right. But that was enough for me to say this is not good. And what else did they do wrong? They used the same appraiser. The vendor chose they chose the same appraiser to appraise all the houses, right, a bank would never let you do that. Right has to be third party, you can’t be can’t be influenced. Gotcha, right. You need a third party your own inspection. So I have clients that do that allow us to write offers. And then they come for the home inspection. So I’m down with that. Right. And then I’ve been around long enough that I can run my own comparables, both for price of property and rents. Right. I’ve already been back check fact checking you guys on your, on your prices and rents. Right. And so I can do it. I would know I’ve had enough comfort now that I would do. I wouldn’t have to see the property. cheering, maybe we fly down, maybe fly down before the closing, at least for the first or second property. But that’d be sufficient. Because again, I look at I’ve been around a long time, you know, we’ve done over 350 transactions, I forget what the number is 400 million worth of real estate we’ve transacted in just in book value. So I have a lot of experience. So when I talk to clients, like I always tell them, your number one risk is the tenant in Ontario, number one risk of the tenant. And when I look at property, when I go see a property, the first thing I do is I don’t do what Realtors DO I DO what investors do. I go straight to the basement, because that’s where all the problems are. Right? You can see the if the electrical is any good. You see the foundation is broken or water damage. Right. And then I literally have had, how many? I might have had two houses with frozen pipes personally. And that’s the massive damage. Yeah. So now but we’re buying in sunbelt states, right? So temperatures don’t get below zero. So frozen pipes is removed as a risk. There’s no basements in sunbelt states. So I’ve removed that risk. Bad 10 Some teen toll from from the property manager. So I’ve spoken to the property manager myself. They’re gone in 3060 days. At worse. Yep. Right. So I’ve removed some risks already. Right, and there’s no rent control. So I removed another risk. I removed inflation risk. Right now I just benefit from inflation by holding on asset. So then I can do it. Yeah, I don’t think everyone can, which is why people still buy local, which I appreciate. Right. But everything you’ll get more comfortable as things go. As literally telling you a hands on investor yesterday. You know, he’s saying how I don’t feel comfortable right away, like buying a property right. Like, which is funny because he was just complaining to me how he had a sewer backup and need to rip up the floors himself. And take off the trim take off doors, right? He’s just telling me like, how much a headache you want. He doesn’t want that headache anymore. Like, you know, there is an answer. Yeah, yeah. And then also appreciate that that problem was in the basement of a duplex. Right. And that duplex is built in 1950s. So the drainage systems are failing. Our sewer systems are clay. So they’re failing they need to be replaced. First, and also you’ve doubled the occupancy of a property. So that’s another risk. Yeah. It’s also 90 for this property versus, like the Atlanta property I keep talking about as an example, that was built in 1988. And again, it has no basement. So it’s way less risk. Yeah. So again, holistically, everything just seems easier, right? So I understand that people think it’s a risk not to be able to see and touch it and do the drive to it. But then you will stack it up against all the other risks, all the things that you’ve de risked?

I think it makes sense. Yeah. And then like, um, so the proximity part, like, you know, having a good property manager, and then a great asset manager, like how how would you film your interactions that your minimal interactions with one of our preferred property management partners is, like, do you see a difference in sort of approach strategy protocol, the methodologies that they use with any sort of equivalent here. But first off is like, because when I talk to you, it’s hilarious, because your context of here is we’re very different contexts, like, you know, what your How long have you been property in the States? Over 10? years? Okay, so you’ve been over 10 year investor currently hold 20 properties in the States. All right. You know, I’ve been a landlord, almost 20 years. So our contexts are very different, right. And it’s hilarious when we talk to each other because we’re everyone’s talking different languages. Because I remember when I told you how property managers will still charge you rent if no rents coming in. I still don’t get that I still okay. That’s interesting. Okay. That’s that was that was that was a big tidbit for me, right? That’s a big tidbit. Yeah. Because in the States, that’s the market as in default, if there’s no rent coming in, the property manager is not charging you fees. Now they’re losing money. They’re feeling the same pain you are, right. So they’re intrinsically motivated to know that’s extra intrinsically, or extrinsically motivated, financially motivated to keep your place rented? Right. And also, they’re doing your renovations so that they’re motivated and financially motivated to get their renovation done, get a tentative, right so that they can collect PMPs, no monthly fees, which is what they want. Yeah. Versus here in Ontario, if a pm didn’t collect fees, when you weren’t rented, they go bankrupt, right? And many have, right, they can’t assume all the financial risks, the same risks that we assume as landlords. PMS here often, like, do the project management component of any sort of rentals and contractions. Yes and no. Like, the challenge I’ve seen with many property managers here is that generally they’re small. They’re mom and pop shops. And I’ve seen in, and many of them are new entrants as well, right? Like they’re. So the challenge I’ve always seen is people who get into construction who’ve never been in construction, like say, you went from working from a corporate job, to now you’re now in construction. Like the communication between people in a corporate environment is very different than tradespeople. Right. It couldn’t be more different, right? Because I remember back when I was in corporate, you read an email. If you don’t get the response. You see see their boss. Right. And you see your boss. Yeah. And then things just start moving better. And then if things are really bad, see, see the next person’s boss. Yeah. Right. And then you always get action. You don’t get that with tradespeople. Yeah, yeah. Yeah. And then and then the situation is worse, right? Like, like the labor issues, worsening as in people retiring, there’s, it’s hard to find good trades, right? So it’s a tough, tough business. So you’re combining people that aren’t used to working in construction, working with trades, and the labor pool of trades is just thinning, right? So it’s not easy. So and what I’m trying to get to is that I’ve seen PMS fail quite poorly at delivering renovation renovations, but also consider the fact that our renovations are much larger in scale. Right, right. Because we’re usually doing we’re often doing a full cosmetic on the upstairs above grade. And often we’re doing we’re finishing a basement, the basement. So that can be putting a bathroom. So that means putting in new plumbing, you have to put a new Ruffins if we’re putting the kitchen more Ruffins. Right. So again, we’re talking about basement apartments under 60,000. Versus your major renovations. 50,000. American, right. We’re talking about our projects are 12 months, versus you’re talking about two months, right? There’s a very different capital outlay and risk comparison, right? Right. Because people need to never forget your biggest risk as a landlord is they can see like negative cash flow, right? So if I’m only holding a property two months for renovation, but I’m probably getting good equity left, then I can live with that. Right versus a year. Yeah, if things go smoothly, the Assuming that you don’t have assuming the contractor doesn’t walk away, which does happen, right? Or they have staffing issues or it goes off premises, they all go over budget or overtime over budget. So very different risk profiles. Interesting. Okay. Now sort of switching gears the next biggest sort of question and big black box we get a lot from Canadians or that have are considering going south is the taxes, right? Like, yeah, it’s complicated here. It’s high here. And now you’ve got state and federal tax down south, how do you how do you kind of walk them off the ledge, or at least guide them through a dark forest? i This is a regular piece of advice I give on the show, one of the best wealth hacks in the world is to marry your accountant. Right. So I did that. But that was I love ya love for what? I make holistic decisions. So efficient, efficient. So unfortunately, because I married my accountant, my mind has a shut off anything when anytime accounting comes up. And, again, I have the team that can handle it. I’m not worried about it. Like the absolute worst case, is that my taxes no different. Right? Obviously, there’s more fees. But that’s okay. Because I plan I plan on building a 1020 property portfolio that will positive cash flow and pay for my fees. Right. Yeah. So I think that’s the biggest thing that you’ll need to consider is that you need to know if you’re buying for investment, like I am either on a couple properties to make this make sense. Yeah. Right. And then my corporation, that’s because this is I think it’s important, like my corporation, like I already have wills written for my corporations. So one of my corporations will own the US entity. So that my my my estate planning is still consistent. Right. So I’m not too worried about it again, the worst case is I I pay the same amount of taxes? Nobody would. Right, right. So I think people need to consider that. Worst case, you’re paying the same amount of tax. Right? It just may be split between two different governments. Right? Right. Yeah. So like, you know, your once your liquid, what is your sort of deployment strategy? What kind of house you’re going to look for, or kind of regions? Are you gonna look forward? Do you have a preference or strategy in mind, read sunbelt states, again, based on my due diligence of yourself, and Dimitri, like Dimitri is a wizard. Right? So I’m largely gonna defer. I’m at this point, now, I’m ready to defer. Right. So like my criteria is largely I’m good for renovation. I like equity up lifts. And also, my plan is to diversify. I want some higher cash flow properties, and I want some higher equity plays. Right, right. Like, I’ve already planned a trip to Austin, Texas, for example, for my research, Dallas and Austin, for example, are probably two of the best places for investment in the world. Right. So I probably want a play one, one each. Yep. But they’ll have different return profiles, which I understand I’m sure. I’ve plenty entropy Memphis. Yeah, we gotta get down there. Because someone tells me seven caps grow on trees. Yeah. We’ve got to get them there. But we can find them there for sure. And actually, I think that that deserves spending some time on the Memphis refresher where I’m allowed to share. I just had too much good too many people recommend Memphis to me. Interesting. All right. And then like you’ve shared that it’s a good really, really good casual play. Yeah. But because we’re talking about a price point under 200,000. American, I can easily afford a property there and afford properties elsewhere. Right. So I play one one around Atlanta. I don’t know. I feel like my Tandy shirt store. Yeah, I probably want one in Phoenix. Yeah. Okay, all right. Taiwan, semiconductors building a $40 billion microchip processing plant in Phoenix, Arizona. And I can already envision, yeah, taking some trips to the states paid from our properties. What’s your sort of counter argument to investing in neighborhoods that are kind of potentially bordering, you know, dangerous neighborhoods or, you know, crime ridden neighborhoods, but are showing early signs of good economic fundamentals? Like, that’s gotta be a common question. Right? I invest in Hamilton bands. And this is like, yeah, Hamilton, like 15 years ago, right? Oh, yeah. Looking at it now. I’ve invested we’ve, I’ve helped clients invest in areas where these steps streetwalkers, right, right. So, and also those hundreds were like 100 years old, right? Like, we’re not talking about that here now. And also my plan is to do

permits almost never see my properties. So as long as, as long as there’s several property managers who are willing to work with it, and happy to work with it, I’ll do it. Right. Because for example, in Hamilton, I’ll speak to my property managers, will you manage this? If they say no, it’s no. Yeah. Right. It’s not just know for me, like, I need like, three property managers. Because I need that level of redundancy. Right. All right. So if they tell me no, that’s a red flag, you probably shouldn’t have a property. Yeah, I think that’s a pretty good proxy, right? Like if there’s a number of property management companies in an area saying willing to say yes, to manage a property, because they’re often local. They know their local area. There. They are locals. So that’s, yeah, that’s often a good proxy. So we’re saying we’ve got redundancy, then that should show some signals that also that there’s a lot of investment dollars. Like one of my property managers in Hamilton is an ex BEAT COP. Wow. Okay. So he knows buildings very well. Yeah. Got a friend with a challenging building 30 unit on Main on the main street, one of the main streets in Hampton, it’s a trying to refer you some business? Yeah, he’s like, I’ve been through that many building many times. I don’t want it. Oh, really? That’s like absolute red flag. Yeah, that is this is level of diligence. I do. Yeah. Right. Like, versus my friend who bought the building probably didn’t, right. Yeah, it’s always good to do that. Like as much as we thrive to be a technology company, we still have boots on the ground that we got checked ourselves with. So we get our local PML agent to kind of say, Oh, you’re not up for lunch? Yeah, this is a good area. I think that’s this is great. We’ve done so many clients doing leasing here and selling investment properties. So yeah, that’s a good area. Yeah. So yeah, to us highlighting the PMS or proxies is a good is a good way of looking at it. Because I think people generally, people generally understand, based on we’ve already removed so many risks. Now, now to me that I’ve drilled you on this, after all those other risks that we’ve that we’ve talked, we’ve already girIs to now, the next biggest risk is the property manager. Right? Right. What if they fail? Again, I fired these five, maybe six now. All right. So what what, these guys are big. Yeah, they’re big. So we, you know, that’s the beauty of kind of the way our model works is we sign master policy, so they just service share, and we’re one line, but we bring a portfolio. So they don’t want to screw up the portfolios, we pull the whole portfolio from them and bring it to another big pm company. So there, that’s the threat and sort of surface level that we get as an institution. And then we kind of dissect that all into individual retail investors on our back end. So and all of our contracts are non sticky. So we can do 3060 Day termination notice in the pm and bring in a redundant or a backup. So that’s in every area, we’ve got at least two or three large players ready to go. And large players like they have hundreds of doors in the area A Yeah, if not 1000s of across the nation, probably like 20 to 40 50,000 plus, that are large institutions. Right. Yeah. Which is weird for Canadian because they don’t exist for us. Unless it’s commercial, right? Like, oh, yeah, so actually talking to investors, like, that’s telling, like, we’re, it’s funny, because he’s a he’s a builder. He’s building apartment buildings for rent, which is wonderful. And we’re talking about institutional property manager. And I said, you know, there’s none here unless it’s they only exist to manage their own portfolios. And all I got one is this, like, okay, Googling? Oh, that’s fantastic. Because, oh, you need to have 100 doors, but also they won’t work with me like, Okay. Mom and Pop don’t have 100 doors. Yeah. So what, what I want us to appreciate is, is that large, scalable property managers exist in the States? Yeah. It’s beyond our context. We’ve never seen them before. Yeah. All right. And then then bring it down to like the micro level, like meeting Tim, who is showing us around? Yeah. Tim is the boots on the ground property manager, your traditional property manager that we know of, and as Canadians like, he is well dressed, well groomed. He’s walked around with an iPad, as like he had everything on his fingertips. Yeah. Via the iPad. What are the rents? You’ve just wiped, touched on bugs on his phone on his iPad? And it was this what was the renovation? Yes. It was really, it was this was quoted this and then we ended up this and we’re in like, like we’re doing the floor touching up the paint. Like five $6,000. It’ll be done two weeks. Yeah. Oh, great. And then like, That was hilarious. Was but we the stone guy was late. They didn’t have they didn’t have the stone for the countertop for the bathroom. So we took the five extra days. Yeah. Okay. And by the Senate, the Senate disappointed Yeah. Because, you know, they haven’t been we haven’t pulled a metric, right like we want they have to be able to deploy their teams To do so much certain amount of dollars a day, and then that backlogs, everything right. And it’s like medical office where one person’s late and it has a ripple effect. But yeah, he’s in charge of all the construction team. So we those are hiccups. And he’s got to redeploy the team to a different project might work. Yeah. Yeah, that’s all custom software that they’re doing all these logistical planning. It’s it’s quite the operation, versus almost all my projects, and you need at home need a bylaw inspector. Right. So you’re, they always find something interesting, either live by their schedule, and they always, they seem to like to make our lives difficult. Right, I had literally had a home bylaw inspector. So first off, I appreciate that they didn’t have a third party, evaluate Maris stuff. But then when they throw in stuff that you don’t need, like, for example, you need a you need people on the apartment door, like we’re in the building code says I need that. I just think you need it. I think you should have it. He’s like, he wanted like this hot water from a hot water tank. A hot water regulator. So it doesn’t go over certain temperatures like we’re in the building codes exist? Oh, I think just think you should have it. Modern code has it? But yeah, I don’t want you to have it too. Basically, they didn’t really know the codes. Right. But they’re just being a pain mass. Right. And then when they’re biased, it’s even worse, like, oh, no, like they live in the area and like this area doesn’t mean more rentals, and then just make your life. Oh, gosh, right. So this is what I think investors need to appreciate is that when you have complicated renovations that require inspect city inspections, there’s more risk, right? I mean, more delays, more delays me more costs, right? If the real Pricks than this, taking one more, click Continue once more. Yikes. Right versus we’re talking like, you’re like if your shares renovation your strategies. All cosmetic. Yeah, I guess so. Yeah. What do we have to do to get to the highest rents? Essentially, is the math basic math. Yeah. It’s all cosmetic. Maybe you need an electrical permit? Yeah. But those are the easiest permits. You don’t have to go through the city for them. That’s my experience. Yeah. So we we try not to do some anything like massively invasive. Like, ideally, the scenario is that it’s still livable prior to our renovation. So that’s, and if it’s not, then we’ve kind of got to go a special financing route. But that’s for another day. And then the funny thing about the show is I’ve had, you know, I don’t even know what episode we’re on. And we’re playing around with 350. So I’ve had many investors on the show. And but I’ve noticed a trend, especially for Ontario investors is, if they’ve been around for a while, they may venture off into something really aggressive, like development or something, a whole bunch of them regressed to something much simpler. Like I literally have one friend who wants to only buy pre construction and not rent it out. It’d be heavy cash, but he doesn’t want to tenants. Okay, his plan will be like the exit like a year or two afterwards, because he’ll have a unique property. Because none of the property none of that no other unit in the building has never been lived in. Right. But point is he does not want the risk or the grief and long term tenant dies. It’s that’s that’s an extreme case. But also, I know plenty of people who’ve done who were like my path and very aggressive integrative patients. And now we’re simplifying like, my next property will be single family home. Right. So I’m kind of at that point, right is next investment with a single family home. Right, right. And actually, this is one of the questions that came up. I posed the question I asked, I posted on my Instagram, if you want to ask me questions, ask me questions. So it’s actually good question for yourself as well. Why not multifamily? Why not apartment buildings. Why single family home? Yeah. I mean, that’s the, you know, long ongoing, ongoing debate between single family and multifamily. You know, for one multifamily is at a much higher price point to get into. We’re talking like, let’s go say four, four units onward. It’s a higher price point to get into and often requires different financing strategies. I’m not a guru in sort of the retail investment of multifamily. But I know there’s a lot of strategies with jayvees and syndicating deals and having to kind of raise your financing to get into the house. So you know, we leave single families that easier entry point, and it’s, it’s a safer one, because now you can just kind of save for your investments and get into it and then but yes, but a multifamily on a per unit basis might be cheaper. But you don’t get the diversification you could get on a single family. So as you kind of deploy beyond more than one region, so that one multifamily still, although you have multiple doors and you’re hedging against other tenants, you’re still beholden to those local micro economic

issues, whether that’s, you know, the job growth population growth or lack thereof, any bylaws that might be passed, you know, like, is a multifamily within Ontario better than, you know, three single families across the country of Canada? You know, I don’t, I would say that you don’t really get the same diversification, you would in that single in the multifamily in Ontario that you would if you said I want to go Alberta, East Coast, whatever it might be. So we do think that there’s a way more of a hedge. And as we kind of build out the single family rental market, the margins are actually turning out to be better. With a lot of these new property management companies coming up, these institutional players that we’re helping unlock is turning out to be better. And Dimitri is probably the best person to talk about this. But their property management fees structure is a bit different. And then this is talking to us now. They don’t their cap rates and pm fees are a bit separated, the PMs fees are responsible for a little different scope, and you still have to pay additional fees. Like I think you have to pay a salary at the pay, marketing and so forth and so on. So that really chews at your noi. So over time, your SFR NOI is a lot better single family rental so far. Yes. Sorry. Single Family rentals. better over time. So let’s that’s a wonderful way to explain it. Yeah. Because I think we’re all in it for all i Yeah. So better than I usually want to start my that’s where I start my investigation. Yeah. Now now for myself. I’ve been around a long time. I have a lot of friends who do apartment buildings who are really successful doing so. It’s a lot of work to be good at it. Back to my friend who bought the apartment building that my property management will manage. He was buying retail, he was buying off MLS off realtor.ca. Right. Because he wasn’t in the community. He didn’t he wasn’t playing the long game. Right? He just raised some money. bought off realtor.ca. So he was overpaying? Yeah. Right? And also, this was a deal that was picked over by everybody as in like nobody else took it. Right? Because that’s the reality of apartment buildings, in my experience, is that the realtor, the listing agent for the prop firm, sorry, first of all, the owner of the building has likely shopped it to all their friends. And then if that doesn’t work, now, they bring it to a realtor and the realtor has shopped it to their other private clients. Because they wanted to London. Yeah, pocket deal. Right? That fails. Now it goes now it gets public listed. Right? Right. So all these people already said no to the deal. And now Now retail investor thinks you can make a deal. You can make a run out of this. Right? Right. You’re already you’re you’re already you’re paying more than anyone else’s was willing to pay. So already your risk is higher. Yeah. And on a building that when nobody else wanted, so there’s something wrong with it. Yeah. Versus like my friends who are successful doing this, you know, they’re there. They’re at the golf course, that the high end golf course is there at the community meetings for that that are meant for those the like the Hamilton disc department sociation, for example, old boys club, right there at the those dinners at those dinner tables. Right long game? Right. That’s the path to being? From what I observed. That’s the path to being assistant, departmental investor. Right. I don’t have that kind of time. Yeah, yeah. Right. And then even still, like you’re still retail investor, do you still need to build it your team? Realtors, engineers, property managers. And if you screw it up, you are ruined. Right, right. So like, there’s literally a story in the front page of health and spectator. Gentlemen. It’s public information. His name is Dylan Souter. Like he had a building with a pipe froze. And flooded part of that private property is now 90%. vacant. Right? So the pipe freeze is no fault. I don’t know. Yeah. These properties are old. Yeah, well, these buildings are 100 years old. Right? So how do you recover your 90%? vacant? Right? Maybe insurance pays for it, but again, like to play massive deductible. Anyway, the point is that I’m very risk averse. I’ve always invested in small residential, because it’s very, it’s a very liquid piece of real estate. Right. Right. Because of a single family home that will sell faster than an apartment building. Yeah, I to reduce risk, you want to liquid asset. So that’s why I’ve stuck with this path. And also, it takes it to me, it’s just so much time and effort to build a solid team. Yeah, right. I’m just so anal. I have Asian parents. That whole philosophy that says there’s always someone better. So when you have that philosophy, like you’re always trying to find a better realtor, always a better property manager. Like, that’s exhausting. Yeah, right. No different than being a child of an Asian parent. Yeah, so So getting started, you know, like a lot of, again, the Canadian. I’m gonna just hit you with all the Canadian hurdles? Sure. You know, there’s the tax piece which we covered the proximity piece we covered. Now, what do you say about the forex and the exchange rate with Canadians? You know, with Canadian dollar US dollar? How do you address that? Like, well, I’m buying this house at this price, but with this exchange rate, how do I, how do I dress that is now problem tomorrow problem? How do you how do you look at that? The way I look at it is, I find the first challenges that people need to understand study more of what the US economy is like. So some high level statistics you and I were discussing for before we’re recording, Canadian household debt is about a third larger than Americans household debt. Our productivity, a Canadian, is only 70% as productive as, as an American. Right? The Americans are investing trillions into bringing manufacturing back to the States. So the way I see it from a macro level is that we’re gonna be buying more and more products directly from the Americans, the value added products. So if you’re for all buy, if the whole world, not just us Canadians are buying more American products, that means their currency is gonna get more expensive. Yeah. So to meet today, so that means today, I’m, I should anticipate the currencies the US dollar should appreciate over time against the Canadian dollar. And if anyone who looks back 10 years, the American dollar is kicking the crap out of almost every currency. Yeah. Right. Like Japanese yen, Euro, Chinese Wan, like what other currencies won’t people like? British pound. So that’s the trend already. And again, we’re gonna be buying more American going forward. So more, Tesla’s are Tesla’s Yeah. Right? And there’s still, there’s still the country, the world currency, they’re still way ahead of everybody else. And again, I’m essentially going to be dollar cost averaging when I’m buying houses. So I’m not converting everything now. Right. But no one can predict anything. So dollar cost averaging has always seemed to be wildly advised. advisable to do by over time. Yeah. What’s your perspective on timing? You know, like, everyone’s like holiday interest, high interest rate environment, where’s the economy going? What do you say to that? I guess, both sides of the border? Does it change for you? Now that you are pretty well versed on the US side? Is it the same narrative that or same response you’d give to someone locally versus the US? Like, say they had two deals that they could both pencil? Today? They can pencil Canadian deal? I want to see it? Maybe maybe somehow creatively, if compensable in year one, I want to see it. Yeah, I want to see it because I was tripping a really close friend of mine. So I’m about to turn him has a four Plex in Hamilton and go What’s the cap? It’s 8.2. I mean, that’s amazing. What do you got for vacancy? He said 2%. Now for now, for I personally when I when I see vacancy, I lump in bad debt. Okay, right. Or non payment of rent? Okay. He’s a 2% a 2%. A. And a 10. Doesn’t pay you? Yes. Yeah. No, probably the pay like 10 25,000. Believe, right. So that number that not that potential expenses in the pro forma, right. And then the next question is, what is look like 10 years from now? Because we have rent control. So my challenge is, can anyone really pencil a deal here? Right? They may pencil it for in the context of an Ontario deal. But like literally, I was at a conference where someone was pitching in Florida properties. And when I rented one of my friends with like, he’s got like, his fund has like 1215 apartment buildings. I go, how’d you like those numbers? On a Florida property? Right? Because they’re like five caps. Right? You can’t find out Park building five cap you get when you buy it. And and I know what they do. It’s like a 510 year strategic whatever they call it, to get that property to a seven cap. Right. Versus I can immediately I can be in a five, seven cap within a few months in single family home estates in an area with strong fundamentals. Yeah, arguably better than better fundamentals than most stuff here in Canada. Right. Right. Especially in terms of job growth. You can’t even it’s not incomparable. Right because those drop ghost stories, that property for the same job ghost story, it has to be in either Woodstock. Woodstock. Not Woodstock. Woodstock,

let’s say Windsor Windsor for sure because they’re getting an Eevee battery plant. Right. So we have so few options here. But it’s even still a single family home in Windsor probably starts at $400,000 Yeah, it’s expensive, right and you still have the duplexes, so another 160,000 So then just again, side by side, it’s it’s pretty easy decision for me. Now your question was around economy. Again, people need to go dig into what the US economy is doing. And it’s phenomenal. Yeah. All right. But again, already I mentioned like the American is more productive than we are. Yeah, by quite a bit. So just if you look at the two economies, it’s because the Americans already had their financial crisis. They already had their massive housing correction. They’ve already learned their lessons. Mortgages, their 30 year fixed. Right, which is hilarious because people don’t really understand that means here. I did reread that, I think a chat TPT it like they’ve signed there. They’ve locked in their rate for 30 years. Yeah. And that’s the norm. I remember I was asking Scott dueling, I’m like, can you get a variable? Yes. I’ll try find one. To try find a lender that will do it. Yeah. Right. versus us. Canadians. We’ve we’ve actually, we’ve taken a lot of risk. Yeah. By doing five year mortgages and variable mortgages. Yeah. And then we may get spanked for it here. Yeah. So again, for economy. Again, I take a long term view. There’s no way that we the Canada, Ontario, BC, any of it, there’s an economic story beat a top 10 town in the States. Yeah. All right. Yeah. Yeah, I often, you know, to kind of add on that, it’s, you know, like, if you look at the average home price in the US, like 2006, we’re talking pre Bubble Pop, right, and then you take it, hold it for 10 years, 2016, that average price almost doubled. Right. So like, and I know, that’s a very macro lens, but it bounces back. And this is a long term hold is not a short term play, you will get your appreciation if you hold at the right time. But in terms of the download, and I’m always of mind where look, this is some of the highest interest rate environments we’ve seen in a very long time. And if a deal pencils today, it will definitely be lucrative in a few years, three 510 years time. So if you can lock it in, just because inventory is still scarce, they’re not producing enough of the rate of rental demand and growth is in the US. So lock it in today, get your 30 year fixed, so we can do the math on the tenure. And also, you know, the resiliency of the rental product is you know, this is where it plays strong in the down market. You know, in a down market rental demand picks up everyone needs to place to live. So at least we’re signing long term leases, 1224 months, you can ride that cash flow, if you need to, right, raise it, you can raise it, and then in a good market, then the house price just goes up, you know, so you have that resiliency and that liquidity options. So yeah, I have the mind worth like, yeah, if you real estate is your play, and you want to get in, you can’t time the bottom. And if you do time, the bottom and everyone else is coming in at the same like, you know, institutions have war chests, they’re ready to come in. But if you miss that down the bottom and interest rates start dipping and interest starts coming back in, you’re gonna miss out, you know, you’re gonna miss your opportunity to get some good A B C Class product. And you’re gonna have to pay a premium on it. Yeah, I don’t like doing that. Yeah, I like buying things on sale. Yeah. So it’s like, you know, it’s, it’s funny because we look at these performers. And we will present them it’s a year one two kind of looks a little flat. But then it gets positive. Yeah, it’s positive. And then in 10 years, it gets really positive. Right. So it’s positive and an eight, nine interest rate environment. Yeah. And then, you know, we’ll drop in and refinancing and, you know, accelerate that cash flow and expand your portfolio. So, but yeah, it’s, um, it’s often a big question, you know, for Canadians. I feel like the Canadians are way more conservative than a lot of Americans, which is why we always say that this single family asset in the US is actually a very Canadian investment. Yeah. So where Canadians are funny, though, because I, I’ve always hesitant to say it, because I fear what the response is always say I buy in red states. Yeah. Are you? Like, you know what? Like, we even though we’re conservative, technically, in Ontario, like, on American spectrum is not conservative, right? My point is, like, do you really, if you’re an entrepreneur, you’re a real estate investor. Do you really want me investing somewhere where there’s rent control? Right, right. So I don’t care about political spectrum. This is or at least our investment decisions. Yep. All right. And then back to the economics point, like my theory is that even Bank of Canada is saying, as soon as they cut rates, you’re gonna see housing prices go up. So they’ll be true here in Canada. They’ll be true in the States. Yep. Barbara Corcoran has been saying it as well. The Fed just paused raising rates for two consecutive sessions now. Yeah, the stock markets rallying and the bond markets tanking. Yeah. So again, no one knows for sure. but actually think last week may have been the bottom of the market. The interesting, like the five year fixed rates in Canada are coming down. So they’re doing they’re, they’re gonna stimulate the real estate economy. Sorry, the real estate market. My point is, is that interest rates are high now. It’s a buyers market many markets, I can lock in my price now or the next six months and also locked in my rate, my interest rate, but I can renegotiate my rate in a few years, when they bought them out. I can’t really negotiate my purchase price, right? Which am I which my estimation will be higher? So that’s how I operate. Yeah, buy low, sell high. Yeah. All right. So what do you tell somebody who’s like, I’m ready to kind of deploy in us or at least entertain the US? Is there? Like, how would you have done it? If prior to us meeting like how would you have gone? Oh, god, it’s so painful. Ask for a referral. Find out find out who’s a final who’s bought I I’m a little bit different cuz I have a large network.

So I asked her like for referrals. What I find challenging those many, many people’s biases, Florida, right? My own due diligence, nothing against Florida. This is my own due diligence. I’ve read too many. I have friends who got whacked in Cape Coral and Fort Myers. So another bad calling properties. It’s really sad. And unfortunately, people are saying like, hurricanes never come here. Famous last words, right? It’s like it’s worse things always happen when you when you say stuff like that. And then yeah, then they got trashed by hurricanes. Right. So that to me, that’s too much risk for my for my profile, and also what I’ve read up on insurance, it’s just not a fan of whatever add up. How insurance rates are going up. So then, and then what I find is the other bias, though, is that people are buying cross border. So they’re going to Columbus going to Detroit. Right? You’re choosing based on geography close to you. Yeah, it’s not the it’s not necessarily the right thing to do. So I’m really I don’t really even have a great answer. Yeah. Yeah, what I would do, it’s hard. Yeah. I always find that the common path is what happened to know an agent in this state that does rentals and right, there’s always somebody who specialized in their specific region. And you can get diversification, again, within same state. But I always try to convince them like, Look, you need to look at the country as a whole. It’s a massive country. It’s not just like one agent knows the whole country, they specialize in their specific region, but why not weigh the regions against each other. And even again, within Atlanta, or even Georgia, there are many awesome pockets to invest in. It’s not just Atlanta. So take a sort of grander, broader look at things. Because there’s still risk. Yes, you could drive there. But our goal is, so you don’t have to drive there. I mean, you could fly into one day and take off the next and then set it and forget it. So then when so what’s your I guess your next steps now that you’ve kind of discovered us? What how would you direct your clients and your network? If they’re saying, Hey, I’m ready to go. I’ve been telling them to go to go to our landing page. They’ve w.io and dot share sfr.com So they can see what properties are doing. Like you can see past deals. And all the numbers are there. Yeah, as a friend of mine, a friend of mine who’s already met with you and Dimitri, he’s like, I like the pro forma, because they have all the line items. Yeah, they don’t leave things out that other people leave out. Yeah, he’s an engineer. So he likes numbers. So yeah, all the numbers are there you can play with the downpayment, what the size downpayment what the interest rates are so for those who need to play the interest rates rates are like over eight Yeah, so that’s that’s why my plan is to do like 40 50% down right? Yeah. With cash not debt bearing money. So that’d be first thing to do. And just to book a call with either myself or yourself and they can do that from from that site for if they want book a call with me, they know how to reach me. And then just like go gangbusters on researching real estate and us Yeah, right. I’ve done a lot at CBT. You know, I literally just like these are the economic fundamentals and looking for give me give me 10 towns. Yeah. And it’s the same names keep coming up. North Carolina, Raleigh, North Carolina, Denver, Colorado, Atlanta, Georgia, Texas, Dallas, Texas. Austin, Austin, Texas. Right now the markets come up as well have been a night the night like gold digger. I go deeper like Houston came up for example, then I’m gonna dug further like, they have like, doubled the flood risk doubled. Their insurance is double the national average. Like remove that. Or like, oh, this this area gets hurricane tornadoes or move that. Alright. So did you get a lot of questions from the Tonys team? Do we address most of them? Hopefully. Yeah. Hopefully, but yeah, there’s always tons of questions. I saw voice questions, but I would just share so far.com answer your questions. Yeah. Oh, we hosted a workshop. Yeah, that we sold way more than we ever thought that was amazing. It was fun. And a lot of great people a lot of horror stories. It pains me when I hear that. So you’re doing them a service or when you’re here, like the real estate, Robin Hood. You know, it’s been a lot of fun. Just seeing people’s eyes open. Because that’s how I felt that the joke I’ve been sharing with you is like I felt I feel like I’ve been in the matrix. Right? This is the best that we can do. Because we can’t define anything outside of outside of Canada. So with make the best of what we the situation, was the best thing we can do. Yeah, buy a house. Buy a bungalow from 1950s. Sweet, the basement. If you have the money, put on a garden suite for $300,000 that will make a cash flow. Yeah, right now I’m into a million dollar property that won’t even appraised properly. Right. Because garden suites don’t appraise. Right? That’s, that’s a ton. Yeah, that’s a lot. There’s a lot. Not now. Like, man, I see these opportunities in the US and like, there’s so much easier. No rent control. No. LTB the numbers are better. And a scalable? Yeah. Great financial products. Yeah, the financing is easier. Yeah. So the the only downside is it’s further away. Yeah. All right, which again, isn’t the worst thing. Yeah. Typically in hot areas. So you know, take a trip. You know, try the neighborhood if you’d like a friend of mine was getting married in just outside Calgary in February. And like, dude, like, you know, I don’t want to buy anything Alberta. Can we just meet in Vegas? Because no one has a planned trip to Vegas? Because I can look at properties in Vegas. I don’t have any interest in looking at properties in Alberta. Well, what do you say to those? You know? Because Alberta is a you know, it’s a pretty landlord friendly state. I mean, province, so could American. But yeah, why not? Why not go there? Because aren’t the price points aligned with a lot of the US real estate? Oh, calories. Average Price is 600,000. Oh, wow. Okay, I’m out of touch. You’re out of touch, bro. Wow. You’re Hi level answer. My Alberta boyfriend’s always told me Alberta is the Texas of Canada. I say that to Americans? Yeah. Like, why don’t we just go to Texas? Yeah. And I can get it for cheaper and better numbers. And then a little more detail side like Calgary is on is a complete seller’s market. Now. It’s on our Bull Run. It probably it’ll probably be around to like $800,000 house. Oh, yeah. Which is fine. Yeah. I can’t wait to go to the buyers market. Yeah, and get something for value. Right. And again, based on my footnotes, one of my my study of the US economy. Here’s another here’s another way. I mentioned a question with a question. If you left North American as 100 people, can I pay you in Canadian dollars or US dollars? We’re going to take right US dollars? Would you find one person who say I’ll take Canadian dollars over US dollars? Right? What do you mean find a Canadian, the Olympic team has asked him at a very good number of associates like American dollars. Yeah. So the answer right there tells you you need to be earning something in American dollars. Yeah. Right. And then on the on the on the on the bigger on the bigger, longer term. Planning is, I want options in life. And I want options for my kids. So my plan would be to figure out how to get an E two visa. So that myself my family can live in the States as long as we want. Should my kids ever want the option? Should I ever want the option to live in the States? Right? Should my kids ever want the option to pursue their career, pursue careers in the states and get paid 30 to 100% more for the same job they do in Canada? And their housing would be a third of the cost? Yeah. All right. So I’m just letting people know I’m a hyper overprotective parent. So I think all parents want want to have options for the kids. So I’m no different. Yeah. And so that’s the path investing in Edmonton. Calgary doesn’t get me on that path. Right, right. Yeah. And it’s already snowing in Calgary. So I’m about Canadian, I can’t handle the cold. And that’s another thing that you mentioned before, as well as like demographically the states generally Americans are moving south. Yeah. So that’s why I was playing a road trip to Columbus, Ohio for Exam. Pull. So I’ve shelved that. Because if the demographic trend is that people are moving south for better weather, and no state taxes, then that’s where I want to be. Yeah. Right. I want all I want many things as possible to align in my favor for successful investment. Yeah, right. Yeah, it migrations of more common theme in the US people moving from state to state, not necessarily just staying in their home province and hometown. Yeah, because there’s so much job creation opportunities elsewhere. Yeah. It’s always from time to time. It’s so crazy when I used to live in the States that I would get, when I get phone calls from my friends who are living in the same city as me, I get a million different area codes, because they just didn’t change your phone numbers. So be looking like Wisconsin, pick up phones and go, Hey, are you coming upstairs? Or what? And I’m like, Oh, I didn’t realize you’re from Wisconsin. But yeah, that’s how it’s pretty crazy. Like most people are not from where they’re, they’re living in places where they’re not originally from. So you get, you get a lot of movement to go where the jobs go. Right. And a lot of the moves. So anything we left out? I feel like we pretty much covered a little bit.

Yeah, again, my diligence shows everything. I think the only thing one thing that that the only other risk factor that’s higher in the States is vacancies higher, yes, vacancy is higher. Because Americans can actually build housing. It’s still behind schedule is still slower, but you know, rent, but compared to here, yeah, there’s a stat though. Don’t remember right now, but rent rental demand or growth is gonna still outpace construction. So there’s still that and even with a new build for rent, they’re still leaving out a massive part of the market. I feel like those build friends are very good for people who are just getting priced out of the market. So yeah, there’s still going to be rental demand, still gonna still tick upwards. And stats are showing that, you know, new supply is not coming in fast enough. Maybe not as aggressively as in Toronto, but definitely still a national problem. So another thing, another thing that someone could do for to start out is I just went on realtor.com. I chose an area that I was looking for, I was actually looking for comparables to properties, the sheriff’s done. And started like in just researching rents and prices. Yeah. And then just to get familiarized with yourself with the area, because it’s just so different. Yeah. Like, like housing prices are coming down pretty fast, compared to what I’m used to. Right. So it’s much more of a buyers market, and even strong economic areas. Yeah, it’s just so but again, like you guys have probably accounted for vacancy allowance. Yes. Yeah. Well, by zip code by region, typically dial it up or down, depending on that particular neighborhood, because we look at, like over 300 data points per region we go into per city per zip code, then we take those into consideration of for both repair, maintenance, Age of home vacancy, all that. And the fear of the unknown, you don’t like the analogy, analogy for sure, that I always uses as a client of share, which I which is where I have, I’m gonna be acquiring my properties, as I’m gonna be doing through you guys. Is unlike a Costco member, I get to benefit from from your institutional buying power. Yeah, both insurance rates, your ability to get property, property managers will talk to you with it, whereas they won’t talk to me, right. And I negotiate my rates now, so I get better rates. Yeah. Now, can you do as can you get better investments? If you did everything by yourself? You wanted to be a retail investor? You want to be hardcore? And we are very active? Yes, yeah. Six to nine months, six to nine months. I have a friend who’s coming on the show. Like he’s looking for like a 30% return cash on cash on his us investments, but it’s highly active. He’s buying like pre tax pre tax sales. Yeah. And these are in towns you’ve probably never heard of, and he’s got to find the local team to execute it. Right to renovate it, hire find a realtor, all sorts of things. All doing it remotely for looking for a 30% return. Versus I’m looking for a leveraged 20% return. Yeah. All right. Well, I could sit on my ass and just Yeah, I look forward to meeting him after his first couple. No, no, no, he’s been doing for years. For years. Okay, so here’s a playbook Yeah, here’s a playbook okay. But also like the things that people don’t appreciate is like when people like there’s there’s court now someone there’s someone in my feed now selling doing a tax lien course. So my friend has shared with me like the first three years were terrible, right? Like, that’s beyond my appetite. Yeah. All right. I’m down for like two months vacancy. Two months carrying costs while it’s being renovated. I’m down for that. Right. And you get the equity lift sale. So you’re not buying turnkey, you’re getting older, you’re getting all the bonus parts. And I don’t believe that too much. Yeah. It’s all factored in the pro forma. Yeah. So I’m expecting all these things. It’s great. Anyone else moving out? I don’t think so I find, because we still need to have you back on part two for part two, your show because there’s so many things we didn’t cover, okay. Like, for example, that the, how tech has enabled you to make this business available to mom and pop investors. Because I think people need to understand that is a lot of investment companies. If they want retail investors, they generally want higher net worth. And they’re taking a percentage of the business. Yeah. Right. Which is one thing, which is one thing I like about share is I have direct ownership to the property. I want 100% between me and the bank and my wife. And I can you only charge me a fee? Yeah. I actually gave this presentation to a roomful of entrepreneurs. And real estate investors to understand this as well. Like, if you don’t have to give up equity, like you don’t, you keep the pioneers 100% of the pie to yourself. You do bear all the risks, but also you you keep all the upside. I get to pay a fee for someone else to do all the heavy lifting. To me, that’s a win. Right? I know, some people don’t like it. I just manage it myself. Yeah, go ahead. Yeah, try it. Yeah, I tell people, like we get a lot of clients to like, Oh, you don’t wanna retire? These fees are high. Like, look, we’re still cashflow positive on this site. Like, are you still working? Yes, when you retire in 10 years. So let us 10x Your portfolio and those 10 years. And then when you’re ready to retire, if you want to self manage fire us, but then when you realize you want don’t want to do the work, you can bring it back to us. So, you know, you could do the math on that you can see what kind of savings you get from firing us. But you know, by all means, go for it. But let us build your portfolio in the meantime, guarantee we want to retire you’re probably gonna say just keep going. And I think it’s an important point is the investor owns the asset. At worst case, is because I mean, people always ask me the worst case is worst case. I have fire you guys a higher realtor and sell the property. Yep, that’s my worst case. Right. So it’s the same worst case with any property I’ve ever experienced. Yeah. Except in you know, my poor friends who’ve invested in epic lines in Saskatoon, there’s no market for sale. There’s no market for resale. they overpaid for property. They can’t recover. Yeah. Versus I’m buying based on economic fundamentals. In an area I’d want to invest in strong job growth, growing incomes growing in migration, right. A maybe takes longer to solve in a property and around the Golden Horseshoe. Right. But although everything else is better, yeah. All right. Anything else? That’s it for now. It’s funny because I use I structured this podcast to have guests on because I always thought I have nothing to say. I have nothing of value to contribute. That’s why I always have guests. No, it’s good. I enjoyed it. 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.ca/youtube. To register for next class. That link is also in the description as well. I publish at least two to three videos a week here. So subscribe if you want to keep learning from seasoned investors like myself and my guess. And if you’re just starting out, feel free to ask questions in comment below. And I’ll do my 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 at that investor training.ca/youtube Thanks again for watching. See you in the next video.

Subscribe on Android


Please help us reach new listeners on iTunes by leaving us a rating and review!


You are the average of the five people you spend the most time with! Build connections with empire builders and trailblazers at our iWIN events.
CLICK HERE to check out what’s coming up next.



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 iwin@infinitywealth.ca.

I hope to meet you at one of our meetups soon.

Again that’s iwin@infinitywealth.ca

Sponsored by:

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 iwin@infinitywealth.ca.

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.

W: erwinszeto.com
FB: https://www.facebook.com/erwin.szeto
IG: https://www.instagram.com/erwinszeto/

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *