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(00:00) seven figure losses anti- renovation bylaw in Toronto $1 trillion passing from Boomers to Millennial kids and new federal government programs for developers all this and more on this week’s truth about real estate investing show for Canadians my name is Eran CTO I’ve been a landlord since 2005 a dedicated investment property specialist realtor since 2010 with close to half a billion dollars in transactions proudly I can count on one hand how many preconstruction condo deals we’ve done as I’ve never been a fan of that
(00:29) strategy I am a four-time realtor of the year to investors in Ontario since 2016 I’ve conducted over 300H hourong interviews on this show with Canadian Real Estate Investors uh on this podcast and we’re still going uh over the years I’ve developed a few personal personal immutable laws of real estate investing I don’t private lend I don’t join Venture I don’t invest with office investors I don’t borrow at expensive rates I don’t invest in small towns with poor economic fundamentals All the Above is too much risk for me and effort and friends of
(01:02) mine were recently burnt I have friends who lent to a high-profile investor with projects west of the west of the greater Toronto area and in Florida if you check the investors’s Instagram youd think they’re living the dream I thought they did I was like what am I doing wrong um you know they had uh they lived in mansions they have an enormous Cottage they fly private a sixf fig luxury car uh private school tuition fees but behind the scenes they’ve lost millions and millions of dollars including a few uh seven figure private mortgages for my
(01:35) friends um confidence among them is low that any of that money will ever be recovered uh some lenders are even posting about it on social media as a PSA so others don’t lend this this investor who’s run into tough times uh one of my friends has actually taken over several of those failing projects uh this highlights one of my biggest hurdles of with private lending one of my red flags uh as a private lender like I want my investments to be as passive as possible uh I genuinely enjoy my work that I do and value my time with my
(02:06) family uh but private loans when they go bad plan B is to usually take control of the project uh which can include forcing sale or taking taking control whatever means uh that means again getting handson uh can mean also coming out of pocket to fund working capital or pay off other creditors ahead of you uh Cherry would murder me if this ever happened and hence we don’t lend or joint venture with others and then you add in the market like it is today high interest rates low very low buyer buyer interest um and lock and
(02:39) combine that with lackluster projects uh then you have plan C that comes into play litigation or heavy involvement uh managing development Renovations getting Hands-On uh hiring contractors managing contractors uh even running a business if it’s a hotel or recreational property like getting involved with the business now you’re now you’re an entrepreneur versus the play with a passive investor uh for my friends many of these properties are in small town Ontario requiring long inconvenient commutes to places I never even heard of before I’ve
(03:09) been in real estate since 2005 and there’s still cities in Ontario towns in Ontario names I’ve never heard of before and they keep coming up um and that’s again those are places I would never invest in I mean to say never but they would not be my top 1,000 places to invest anyways it’s a sad situation for everyone involved including the the the invest there’s a group of investors out there as well having to power of sale a portfolio out New Brunswick where and and keep in mind New Brunswick they just replaced their conservative Government
(03:40) after six balanced budgets and elected a liberal majority led by a university Professor that promised a 3% rank control for next year but 3% is better than what we have from Ontario’s conservatives who set the rent uh cap at 2.5 the lowest in Canada among conser conservative governments socialism seems to be growing here which is bad news for investors generally uh admittedly I’m not immune to losses either uh just been reviewing some of my stocks I’ve lost money on many things and anyone who and generally I find
(04:17) anyone who claims they’ve never lost money I would never believe a word they say uh personally stock tips have been my Achilles heel leing me with PTSD as I always plan to own more Tesla shares and adding to my Bitcoin which never did thanks to PTSD uh from again losing the money on stock tips and now compare that so I’ve lost money on tenants as well don’t get me wrong I’ve had two tenants with those with significant non-payment of rents one trash my property flooding it but that total loss is somewhere around
(04:47) 50,000 and a lot of headache a lot of headaches and fights between you know my partners and I anyways so yeah my loss from Real Estate again we run a pretty tight ship I’ve we’ve implemented best practices every step of the way 50,000 isn’t too bad compared to a lot of people out there that’s just reading a gentleman Windsor Ontario is is out of month out of rent for 16 months and the Tenant just got a stay order so no end in sight when this landlord will be uh get his property back anyways lesson learned stick to what’s always stood the
(05:19) test of time for me uh that’s long-term real estate investing based on economic fundamentals and cash flow just not here because I see no way we’re here uh will get us where we got us to where we are today so hence we’re pting pivoting to the United States and should there be there shouldn’t be any surprise because the city of Toronto just passed a renovation bylaw so that a Land If a landlord needs to evict a tenant even temporarily to complete a renovation the permit is $700 per unit uh one the landlord has to provide proof the unit
(05:52) would be uninhabitable during the renovation and rehome the tenant uh who is being temporarily displaced with comparable hous in at similar rents or Monies to cover the rent difference this all means it’s going to be really expensive for the landlord Hamilton and London Ontario have already passed a very similar renovation bylaw and I predict more municipalities will pass the same legislation keep in mind this is Ontario we’re talking about well actually even just these three cities there is so much old housing stock out there properties
(06:25) that were built like 50 years and long older like they have tons of T backs that needs to be done like Plumbing like knob and two wiring like H anyways I don’t envy those landlords hence more reason that I’m getting out of this uh getting out of being an onari landlord next week I’ll tell you about how the interior liberals what they have planned they’ve actually just uh they have a private members uh Bill uh I think it’s Bill 163 uh no rent increase and no evictions for landlord’s own use including if a buyer’s buying and wants
(06:59) to move in for 2025 uh this likely won’t pass but just to give you insight into what the Ontario liberals have planned for you should the Ford government ever fail what’s a real estate investor to do for those interested in learning more about what I consider the best practice for investing in real estate I want to personally invite you to a free hybrid training uh we’re going to talk about how Canadians can leverage us real estate for Passive scalable and tax efficient income streams on Thursday nov November 28th this is hybrid so folks in
(07:30) person doors open at 7:30 p.m. uh it’s 800 p.m. Standard Time for folks online we’ll start we’ll start on time at 800 p.m. eastern Time online so folks for anyone who’s not surprised uh or is surprised I’m speak to Real Estate Investors from Quebec tons of from investors from Quebec BC Alberta Winnipeg Winnipeg Manitoba people who want to invest in the states so we are off again we’re offering this on on hybrid as folks if you’re local to my office in Oakville please come in person love to see you in person for those
(08:05) folks who can’t make the drive U or flight or whatever what have you 800 PM Eastern Standard Time online no Thursday November 28th this is a free training I’ve always been a fan of democratizing Education as in making education as inexpensive and accessible as possible so that you can protect yourselves and your family from there’s going to be more inflation if anyone doesn’t believe me then don’t listen to this call don’t tune in anyways we’re going to we’re going to learn what you can expect to learn is where to invest and capitalize
(08:34) on a trump government how our clients are making money on the buy as in where our clients are buying Under for under Market uh executing perfect burs buy renovate refinance repeat uh without ever leaving home last month’s episode was literally Shane from Montreal who did not leave home for his perfect bur in Memphis Tennessee uh diversifying to the US for better cash loan returns and landlord rights let’s not forget that if you’re an Ontario BC investor or Quebec investor we don’t have any rights uh in land friendly USA it’s completely
(09:08) different now for those of you with deeper Pockets that want to be developers closer to home I applaud you because that’s what our country Society needs more housing and we have someone here can help you with that my old friend Pier proon he’s returning to the show as a former industry Insider as an underwriter at the CC uh he’s an active investor he owns multiple buildings uh he’s an expert obviously in the space he’s analyzed hundreds of large lucrative multif family investment deals all over Canada and as a good Canadian P
(09:40) Paul wants to help more Canadians build housing as he believes it is the developers in Canada who have the greatest potential for success financial success um millionaires become millionaire status as he said to make millions and he’s here to share about the latest Federal programs for developers no one is talking about I never heard of these programs before for so if you are a developer Builder or plan to be you’ll have to give this episode a listen developers are who the federal government wants to support
(10:08) because they build housing that we so desperately need landlords not so much to connect with Pier Paul you can email him at ppon mayoki M AO ki. CA links in the show notes or his website which is easy to remember multifamily investing canada.com again that’s multifamily investing canada.com where he offers free online resources and also he’s got a very in-depth course on apartment building investing please enjoy the [Music] show while you’re up here Paul uh happy birthday thank you I can’t believe you made time on your birthday sances to be
(10:55) on this podcast where nobody listens to I did it for you I did it for circumstances is like you know I don’t come back to GTA too often so uh you know so this is you you know at the event Rockstar event I wanted to come to and I had a uh the real estate conf Forum in Ottawa so went to Ottawa first from Calgary then a little back uh back West to Toronto to see you and a bunch of people and uh yeah and my son by the way have a son in uh Toronto oh that’s right and before we’re recording can you share what his rent is yeah poor kid 26
(11:26) years old uh he lives in a dog crate as uh Ron Butler would say 2,100 bucks a month you know no balcony uh no utilities included so yeah a good chunk of his income going towards his rent right sad for uh it’s a newer it’s a new building it’s right uh I haven’t been to it but near Front Street like literally where all these new condos are it’s a nice location it’s a nice location that’s why he wanted that place cuz his work he can walk to work within uh five minutes and he’s in carbon trading pretty cool uh he studied uh um um uh
(12:01) what did they study environmental Sciences MH and got a job uh good kid I think you met him anyway he’s gonna he’s going to be around this weekend Oh fantastic I look forward to meeting with the r yeah no he’s sharp he’s sharp he’s very sharp showed up had never been to tono unlike me right you know I studied here years ago 40 years ago at UFT but uh knew what he wanted to do uh which was carbon getting into the carbon trading market and uh had done his research one of those scientific guys you know and showed up in person well nobody was
(12:35) answering his calls or his emails when he was making inquiries showed up at the company uh and this this is a few years ago so still a lot of people working at home so there’s only one guy in the office it’s a cool story because I’m very proud as a dad you you’re really to the having two kids there’s only one guy there uh he speaks French he’s black from France I think or maybe some French country and my Sun started so as soon as he detected a French accident they switched to French and started asking questions about the company and this and
(13:06) that and asked for the contact of uh the owner of the company it’s called clear blue and uh then uh this guy was kind enough to show him around the office and then when the owner heard about it he said if this guy’s half smart you hire him just because of the attitude like you and I like me I grew up not grew up but I went to school and spent quite a bit of time TR it’s it’s an impressive City for a kid to show up in downtown and didn’t have a place to stay uh so and he got the job and now every time he the the owner of the clear blue sites my
(13:41) son as a as an example pretty proud that’s pretty pretty proud of my son yeah pretty cool so he makes lots of money to afford this rent right um no he does not no he does not yeah well but yeah it’s pretty cool I’m sure your kids are going to the saying my kids are have been off the payroll the family payroll for a long time extremely well uh managed with their money and you know we’ve talked about that over the years like kids don’t get financial education but my kids my goodness sir when again I I won’t take all the credit they’re
(14:14) smart my daughter just finished her Masters in uh uh cognitive Sciences hoping to get into med school I don’t have to give them any money it’s been like that for years years fantastic very cool fantastic very cool yeah just thank you for having me you good to see you my friend good to see you too uh just because we’re both landlords of course different scales yeah uh based on his rent and that he has to come pay for utilities he needs at least about $7,000 salary a month I did I I I don’t know a month I don’t know how yeah like I said
(14:46) I’m not involved with his finances but uh I think he makes 80 grand oh yeah no no okay so you’re not coming out of pocket toao no no absolutely not like I said my my children have been off my payroll for a long long time years obviously like you we we had money for their studies uh but even my daughter her Masters we she had several jobs uh while getting her master’s done so no it’s uh it’s pretty cool very very very cool to see your kids do well and imag but it’s sad at the same time that they can’t have a proper life because so much
(15:16) money is going towards their ENT that’s wrong right that’s that’s extremely wrong I’m going to guess they’re going to inherit some assets though I’m working at it we’ll talk about that I do have a legacy plan for my my children of course I do of course right everyone otherwise what you know what’s what what do they have what are they’re going to have unless they have a pension they’re screwed yeah you believe I am I have a pension from CC yeah I can’t believe that and I forgot to claim it it’s pocket money seriously I forgot to claim it for
(15:46) a year and then they sent me something oh you should claim it so I got a big check because I didn’t claim it when I turned 60 right isn’t that funny but it’s cool to say hey just pocket money traveling money okay so we should uh for listeners benefit tell us a bit about the journey how did you arrive to here oh Journey continues but uh you sharing how old you are today oh I don’t mind that at all I’m 62 today I’m born in 1962 I’m 62 today so no it’s been great journey I think life is either a daring Adventure or nothing at all said
(16:17) the Helen Keller remember her she was a blind yeah got it blind and death exactly but for the purpose of this podcast so uh well I’m I’m well educated to well educated I guess so to went that to school lawyer was it exactly so I got a degree in political science from here in minor international relations from u a law degree and a teacher degree from aou so that’s uh yeah spent too much time how old were you when you gradu when you finished your last I was old I don’t want to go there I was too old too long at school I agree but you know what I’m
(16:51) a curious person so I think that would explain that yeah uh but uh then so studied political science International ations I travel a lot have traveled all over the world pretty much with work or pleasure or both both uh started traveling when I was 14 that was a lifetime uh dream of mine to travel um but I got a job uh for CCC way back uh doesn’t exist anymore had an international division MH very cool stuff uh the mission was to export Kenan housing Technologies right so we had a guy that was a kind of a had a a
(17:29) building um like construction Builder uh experience and how to sell our systems like with frame structure and all of that um and then it took a different uh uh tangent we were approached by the World Bank uh and the international Finance Corporation which is a subsidiary of the World Bank to assist other countries providing uh Consulting advice on how to set up mortgage default Insurance what samich does right Sam is a mortgage default insurer and so I joined that team it was it was extremely exciting I I got to travel to places
(18:03) like Africa to Gabon got to go to Europe Romania China obviously a couple of times China am I missing anything oh of course it’s quite in the news right now uh the West Bank in Gaza because I I helped create pmhc Palestine mortgage and housing corporation which obviously is not active in Gaza needless to see uh but I believe it might still be active in in uh other uh Arabic countries like uh Egypt uh so yeah I was in Gaza City on behalf of CC a couple of times uh while I go to at land in the um Tel Aviv and go to Jerusalem stay in Jerusalem uh
(18:42) so yeah very cool career uh so basically we were working with these foreign countries to set up mortgage default insurance and at that time my job was more like as a contract negotiator managing these projects and the Kenan International Development agency was involved so uh but right away I wanted to be on the delivery side of those consulting services so learning cmc’s core experties which is mortgage default like underwriting and all that jazz so and of course I was I’ve always been a mountain person love the mountains so I
(19:14) asked for an assignment out west in Calgary um initially I started doing some uh single home underwriting for a few months then they said I was kind of in a position doing rotation between different departments to to kind of become a manager manager uh so I started in single underwriting then they moved me uh to default Management in real estate for 4 years so I had a small Department anything or default def so there the default management is one component and real estate so the default management of what of apartment
(19:43) buildings okay good news being that apartment buildings rarely default even though it can be tough you and I talked about a former student Dem mind that you had on this show uh I I yeah yeah yeah more than me yeah anyways but um yeah they rarely default I was bored out of my mind so but my job was to get the Aras report uh every three months and see if something was getting out of line because you know the lenders have that responsibility to monitor uh whether you know a project is going towards in a default situation so they have to uh
(20:17) report every year I have to provide my financial statements to the lender and they can see the the health of the building the project whether it’s uh it’s going to be in a default situation so that’s one side the real estate side is what we know when people lose their homes lenders have the responsibility to try to dispose of them if they’re unable then eventually those houses would come back to C so I had a a small Department of manager a couple of Staff across the entire country just the regional office the Prairie so that’s Alberta uh
(20:47) saskatchwan and Manitoba and uh Northwest Territory and later on Yukon so you looked at a lot of real estate yeah yeah yeah well that’s how I did but uh and so but but yeah but on the default side there was nothing being defaulting right to this day I mean like I said my former student we won’t name him but uh it can be tough at times it’s real estate investing but by and large they don’t default it’s a cash cow for cmec like the the the premiums you know we’re talking hundreds of thousands of dollars sometimes depending on the size
(21:19) of the project right friend sharing with me his cash load is quite significant yeah so so so that’s what it is that’s what enables you survival yeah but I was bored literally and it’s a good thing like apartment buildings it’s less risky than what you do or when you know that because you got one home and whereas I’ve got multiple no but you know what I’m saying in my case we have multiple sources of income right so if you have a vacancy you still have the rest of the building bringing in cash so from that perspective it’s less risky than buying
(21:47) smaller like a single home it’s different right it’s yeah I was able to exit anything okay for that perspective you can dispose of your properties but anyway so I was bored there was nothing there were no defaults in this those were great years especially when I arrived in Calgary like 2002 Alberta was on fire people uh that own multif family properties like I bought one building from a couple an African couple and they sold it to me four years after purchasing it they made a million cash in equity values shot through the roof
(22:19) back in uh 2002 and 2006 during those years MH so I was bored out of my mind there were not not too many defaults to manage ended up going to uh well I said I want to transfer to the multif family underwriting Department which I did for four years so that’s sort of How I Learned the ropes and I saw how much again money people were making so sry for people for the for the noice explain what what the C underwriting does yeah so underwriting means just it’s the risk analysis what are the risk factors property Market valuation and the Bor
(22:51) borers are risk factor and just go go through the fin financial analysis of these risk factors and deter mining what is the appropriate loan amount that c is comfortable uring uh and you got to keep in mind C is there for the benefit of the entire all Canadians right it’s a CR Corporation so uh the threshold the tolerance for risk is not that high to be honest with you well it’s taxpayer money should taxpayer money exactly but but it serves the country well like it it enables and we’re going to talk about that I got a recipe for people who want
(23:22) to become millionaire with the event you know with opportunities in Canada but it it is a good system as you know you pay lower interest rate by about 1% yeah and because of that because it the loan is insured the Lander’s risk is nil 100% covered by CC the event of default and then it cost the investors Less on carrying exactly 1% because then the lenders between themselves compete more to be able to to get to your business because they know everybody you know when your loan is insured with CC you pay one roughly 1% uh lower interest
(23:52) rate what is significant it’s on your on your income yeah on your return on investment for sure so what roughly what percent market share does CC have of the mortgage default I wouldn’t know that I’ve left so long ago but it’s must the multif family it’s yeah absolutely it’s the majority there’s no doubt right why would you not go through CC it’s a pain in the butt to get get the insurance Certificate of Insurance but uh yeah the returnal investment is significant so it is a great M majority unless you don’t
(24:21) know because I over the years yeah because people don’t I remember seeing some olderly people landlords didn’t know all I don’t to pay is premium that’s because they don’t understand the system they’re probably not aware that you pay a lower interest rate because the loan is insured very novice yeah but generally speaking Yeah any any large resits all that everybody goes Sam insured uh mortgages course because anyone who does some basic networking absolutely but these people still exist but anyway yeah so that’s it is
(24:50) definitely the share and it makes sense but you got to be aware that you know it’s it’s a bureaucracy so there are challenges uh turnaround times all the documents rules that you got to be on top of that and I think more rule changes are going to be coming yeah but it’s the majority yeah it makes definitely sense yeah and then you jump shipped at some point yeah four so I saw how much money people were making and I said okay well I want to do that when I grow up so I grew up pretty fast and I left my job it’s uh and you
(25:20) know it’s one of those day moves that you just got to be completely convinced you jump without a parachute back then my kids were younger much younger I have three kids but you were already investing before you left you you had a significant proof of concept I had two buildings right at that time yeah okay but mind you one of them was a dog I mean it’s not like you said earlier before we started recording everything’s perfect we all have uh we all make mistakes it wasn’t a huge mistake we didn’t lose any money but I did have a
(25:45) dog one of the the first building of course was not ideal but I took action and you know sign was that there’s nothing such it’s perfect no to learn no no it wasn’t a big lesson but uh yeah and I my my shareholders didn’t lose too much money so I was happy with that because I had two siblings well one brother-in-law and one brother so I family as partner they better you know it’s the same as everybody right everyone we’ve all been through this my point my point is that you had a proof a concept yeah before you I had every day I could see Irwin
(26:19) like back in those days people became millionaires overnight M uh I’m obviously I was underwriting in Alberta and so it’s the reality here it was it was rents were going through the roof one thing that your listeners need to understand there’s an exponential Factor when you move to the multif family World which is five or more units the income is a driver of the value and there’s an exponential factor for every dollar an increased net operating income and why depending how compressed cap rates are your property can appreciate 15 to 25
(26:52) bucks for every dollar an increased uh revenue and net Opera income like Toronto downtown Toronto when you give a rent in increase you’re making hundreds and millions of dollars like o overnight just by increasing your noi as long as your your expenses remain constant you know what I’m saying but uh it’s it’s it’s exponential so in those years I yeah I saw it’s 2008 I was an underwriter multif family underwriter IR when I saw people make so much money millions and millions like by refinancing taking Equity out buying
(27:22) more apartment buildings exceptional years uh obviously we’re we’re not in an environment where this would happen even in Alberta things have calmed although they’re pretty hot I mean you know a lot of people from GTA are out and from everywhere to be honest with you are coming to Alberta because we still don’t have rent control and uh yeah you can still make a buck we still uh you know was look at your chart here in your training room uh yeah US versus Canada definitely specifically on Teran BC though yeah yeah but you had the US
(27:51) right us is still uh we are more like the US in that regard we still uh it’s a great place to be we’re still from mentality people entrepreneu people work people business friendly people want want to make a difference and people are Dynamic uh yeah Alber is a great place to be absolutely but uh yeah it you can still make money and it’s not perceived as uh as a bad thing which is a major issue in this country you’re rich or bad hey you’re a landlord or especially bad you’re a bad you’re taking advantage of those poor
(28:25) tenants that’s painful here I I hate that I hate that right and You’ so you’ve also been an educator or M depart bu yeah yeah so I’m not sure where I’m at with that so I had the last Workshop as you know is well rated um it it teach so it was called the uh Canan multif family investing blueprint program 3D very intense extremely intense um how how to underwrite well I’m this stuff is this is serious stuff serious money you better be diligent and I should say something I want to scare people off but because I even have a short a story to share with
(29:02) you I just dumped a client yesterday and I’ll tell you why because you got to be you got to be true to yourself but it’s a different world you can’t the mistakes are not permissible much I mean especially if you have investor money especially if you have invest your money because you’re talking about a lot of hundred thousands of dollars but yeah it’s the world of the multif family is a lot smaller there’s not as many lenders there’s not many Realtors and everybody has to be a and if you screw up you’re going to be
(29:32) blacklisted and I had this client talk huh we all talk yeah yeah oh yeah oh yeah reference check we reference check oh yeah absolutely and this guy this guy’s an old guy came to me a couple months ago before I took off from my vacation Quebec at the beginning of August and he wants to build an aplex so I said look uh here’s what I need and this is where I I as a as a you know like put my legal background my underwriting background I’m very point pointed like I like to cross my teas and up my eyes and as you this is the kind
(30:02) of business that this is this this is a strength I said the guy here’s the list I need an appraisal you want to build something what is it going to be worth that completion uh you want to build it what are G get me your your construction cost vetted by a professional cost consultant I go on vacation three weeks I come back I still don’t have that he’s asking me all these questions Tire kickers but I I felt sympathy or empathy whichever both I guess I felt for him he’s an older guy like listen he was giving me his numbers you know a
(30:32) notebook with the Rings like to hold the sheets together and all handwritten I’ve been there before this is not new right mom and pop but my mission by the way I haven’t spoken about my mission my mission when I was I created my program is to democratize the access to multif family invest in Canada right and we are we are wealthy we’re we’re lucky people mind you we had to work for for it but so I saw this guy reminded me of my dad he a bit disorganized but I could see he had quite a bit of skill which still I’m
(31:02) not clear what they were other than what he was telling me but show me the money kind of thing because I asked him what’s your boore structure who you who’s going to build right and all that stuff and I it’s two months later I didn’t get anything so I said okay okay my heart I said okay I’m going to try to help this guy out that’s what I do uh so I what what are your numbers so I looked at the handwritten numbers and I went in my spreadsheet and we have pretty cool spreadsheet that’s something I really like about the brokerage firm that I’m
(31:31) with but uh it shows all the financing cers at a glance you put in the numbers income expenses and all that then you get mli select which is the thing of the day although I have something else to tell you about uh and you know 100 points 50 points 70 points and then what loan amount you can get then cmhc standard which is the regular CMC program or conventional right non same Mach shirt but whether these numbers hold water or not until I get something I can’t and then he goes beyond that still hasn’t given me what I asked him I
(32:03) said look man I I I I could see that it was would be too honorous he doesn’t know what he’s doing he’s kind of I wouldn’t say belligerent but unwilling to to play like not play but to give me the documents so I dumped them yesterday uh the point is there’s great opportunities tremendous opportunities we have a housing crisis uh everyone in my my opinion and you know so my studies given my studies I’ve studied history a lot I’m revisiting history and actually history repeats itself not in good ways um well it’s not good history yeah well
(32:38) what’s we’re talking we’re joking about Canada being socialist uh you just go what happens after you know the war the second world war right so um so I just uh if you want to succeed you need to be a pro there’s a housing crisis that is the biggest problem this country has faced since the second war for the because of the economic impacts the social impacts that we’re talking you and I about like you know uh oh another example obviously my son that we talked about like a young professional that has hardly any disposable income after he
(33:13) pays for his rent well and he got a deal yeah you tell me that I didn’t know that I don’t know the market enough are you kidding me wow that’s that’s unbelievable well I think he’s going to get a better deal in the Years time don’t you think potentially why about the market crashing anyway you can talk about that but uh what I was going to say just to finish that point I also mentioned that landlord is probably bleeding money yeah he is bleeding money he is bleeding money yeah probably probably I’m going to guess at least a
(33:36) thousand oh for sure for sure for sure so it sucks for both the renter and the landlord yeah but just to so that people understand how dire the housing crisis is I I picked up a radio show and it was a bunch of uh inmates that were uh were freed were getting out of jail had nowhere to live in no Nova Scotia New Brunswick somewhere like that because of the housing shortage places too see what I’m saying so this is and then we talked about people at the divorce you know you want to move out of the the home you don’t have anywhere to go you
(34:05) got to live together imagine the tension in the household you’re off duplexing it you know yeah there you go that’s an option but you know and you talk about the encampments all across Canada so it’s sad it’s so sad it’s very sad in Ottawa like I you know I went to Ottawa you for my law degree wow along the canal R all these tents so but you know we’re bus business owners our job is to identify in these crisis opportunities and uh yeah we got to build Supply mhm but uh yeah and now you’re a builder not yet not a builder
(34:39) I’m a mortgage broker but I so the goal there well that’s what I want to specialize in yeah I uh I so building obviously requires even more sophistication in terms of numbers higher risk obviously as well during construction and until construction risk which you didn’t have as exctly no exactly yeah different business model right uh so yeah so the focus as a mortgage broker and I think I didn’t get to that so for me it’s a it’s a logical continuation I uh my kids are gone they’re off the payroll as I was telling
(35:09) you I I’m sure you look forward to the day your kids are going to be off the payroll uh no don’t look for it’s sad when they’re gone I miss them crazy that’s why I’m also here to see my son it’s hard uh don’t blink it goes fast but uh no I just see the opportunity uh like I said in my opinion this is the biggest problem that Canada’s faced since the Second World War um so we need to build so for me as a mortgage broker I don’t do Residential don’t call me for residential I don’t do that uh because it’s not my expertise
(35:37) and I have no interest in it but uh I want to focus on uh multif family con building apartment buildings and the investors are very sophisticated and uh there’s new programs that’s the recipe if you want to be millionaire I know why you and friends of mine many friends of mine like I said I just came back from Ottawa there they have a fund in the US they’re in Houston I understand why you’re doing it that there’s no more money to be made you’ve got rent control it’s just uh moving economy yeah yeah exactly right R
(36:05) control landord friendly business friendly like Alberta but I I I I took a a training you remember Dereck clobal right yeah so I took his uh development course over the winter it’s Way Beyond what I need to know as a as a as a mortgage broker as a commercial residential mortgage broker but the reason is I my job I’m not a mortgage broker by the way Irwin let me take that back still in training how I identify myself I am a mortgage advisor the reason being that uh I am already an investor multif family I have legal
(36:39) training you know I’ve got all the cmhc background that I have when I sit across from a client I’ll give the warning I’m uh you need to go and talk to your own lawyer your own accountant but I I so once I’ve said that then I can go in and well may I suggest you do this and this and that right and it’s uh for whatever reasons so that’s how I look at myself and going into construction you’ve got more sophisticated uh investors and in order to solve this biggest crisis that Canada’s facing since the second world
(37:15) war our governments all three levels of governments will have to step in they are not you know that we’re building less this year than we are uh and and it’s only getting worse people aren’t buying it’s so unaffordable it’s it is but so so we need so but obviously rates are coming down but more program one of them that I want to talk to you is called the aclp but what I’m saying before we get to that’s it’s called the apartment construction loan program it’s one of the first good I’ve heard of it no well most people haven’t and that’s
(37:42) why that’s my job to be honest with you I I I’m still you can see my marking I’m still assimilating it so I can teach it right and explain it to my my my clients but let me before I go there the the first culprit of the housing crisis I think are the municipalities oh yeah all the construction cost and all that stuff and the length and all that in their blocking development exactly you know what happened you know that about GTA right with the housing Accel fund yeah the billions that they got from the federal government from CC they turned
(38:12) around and increased development cost by 40% that’s good this is no joke yeah ask Ron Butler that’ll send investors this is no joke you know that this happened the last couple of years this is ridiculous how come nobody’s stepping in that money was designed to speed up construction on the small scale I think most listeners can can relate to a gentleman out in Kitchener he’s building uh he’s building Garden suites small scale development Garden suites he posted development charges 40 to 70,000 that’s what I’m
(38:44) saying right so that’s so municipalities culprit number one of the housing crisis you got provinces like rent control gez I mean there’s research on this that it kills the market you know and then of course the federal government but I find my former emper and the federal government uh this is uh one kind of Avenue that’s worth exploring this aclp apartment construction loan program is uh lowc cost funding for construction so the emphasis is uh you know it’s $30 billion okay aclp right $30 billion okay and it’s
(39:20) designed um to put a little bit less emphasis on affordability you still have you know the mli select affordability uh Energy Efficiency and accessibility uh but a little less emphasis on that still is part of that but more on construction like Supply issue that we’re dealing with okay uh and and the key difference here it’s cmhc this is key I’m going to pause make some effect on your podcast c is now becoming a lender again oh yeah cmhc used to be a lender years before my time at cmhc I have no experience living at
(39:56) that yeah now you’re too young puppy yeah I know you’re not 62 I am no but I know the history of CMC right it’s I always like history so CM used to be a direct lender what happens is when you’re the direct lender you control the outcome you’re only going to get the financing if the out the desired outcome is achieved that’s what we need my prediction and I have high respect for drik Lobo and uh you know I follow everything he does what he said is Western societies like Canada sooner or later like he agrees with me this is one
(40:25) of the biggest problems we’ve had since the second world war Western societies always end up solving Solutions like that right we’re very slow now we don’t have good leaders in place but sooner laders are going to catch on and I think something like this where you have specific financing that’s very surgically targeted at getting what you want which is Supply in this case low cost to money because it’s the CNB program like the bond Canan bond market so and and it’s listen I mean it’s uh it’s uh so it’s only for con Market
(40:56) housing it’s not for uh um single home occupancy or retirement homes it’s really to increase the supply but you get a 10-year term okay um 50-year amotization Whoa by the way folks who are listening this is the recipe for Success not for everybody but I I just want to backtrack and sort I’ve thought about our conversation what I wanted to share with you like I said I just came back from friend’s house in Ottawa where they’re doing exactly what you’re doing at a larger scale they’re buying multif Family Properties in the US for the
(41:28) reasons and I I completely understand why you’re doing it right because the market here is doesn’t take you anywhere um but I think people in Canada we need also people smart like you and me to say hey we are Canadians we have a good life let’s be part of the solution of building so for me it’s my I wasn’t sure how to frame it when I was going to be sitting across from you it’s not my final Act I’m 62 but I’m I’m strong as a horse I still put my 40 pound back back over mountains like I did when 20 no difference on intentionally right I I
(42:03) stay fit right I don’t have a big belly you see me I mean I have gray hair but the point is let’s yes look at opportunities in the US but let’s also look at how we can transform ourselves to become Builders this is one example this is the best one I can so far know that’s is occurring where if you do this the kicker here is yes you’re getting up to 100% loan to cost Irwin yes pause for effect folks listening this can make millionaires you take advantage of that you build your team uh Builders and you know it’s it is
(42:39) a skill and of course You’ got to try to achieve economies a scale we know what happened to construction cost the last few years they they’ve shot through the roof over 40% the last 40 years um I think inflation is coming down although I don’t think prices are coming down that much so I’m not sure to what extent but this can make millionaires just like M selected the beginning before they tweak some of the rules I said people made a lot of money people made a lot of money so yeah and so interest only uh financed by the loan during construction
(43:07) through occupancy permit so principal and interest payments are due uh after 12 months of stabilized effective gross income so you can build take your money out build another one what I’m saying is this is the first program where I see this a real tangible possible solution to the housing crisis unfortunately I don’t see see anything happening at the municipal level I don’t see much at the provincial level this is kind of the kind of example if you want yeah some people are going to get rich in the process but we need to solve this
(43:39) housing crisis before it becomes it becomes a a revolution a social upheaval right but so what municipalities would you recommend for this program then no no but they get money for example we’re just talking about the uh the accelerator fund from CC that was given to GTA and then construction cost you know there’s got to be uh accountability you’re supposed to use that money so but they need to come out like maybe the money comes from obviously the federal government I think it has probably I mean this is something Beyond me but I’m
(44:08) sure at least the idea is to be able to develop programs like that that achieve the result that you want and give incentives to business owners and developers to do it which as you know they have none right now right but for the everyday investor where should they so so if we solve at least the financing piece they still need to find some land to develop where should they be looking well so that’s that’s an issue that’s you know we just saying how municipalities are not that Cooperative no well there are some there are some
(44:37) yeah well so this is a societal issue irn I don’t know if we want to go there or not this is where we’re becoming too commies too too socialistic here it’s got to stop it’s not it’s it’s it’s damaging this country right municipalities have to cooperate so I I think it’s and it’s a problem with housing as you know it’s it’s not Trudeau got plaque for saying that it’s it’s not a federal jurisdiction mostly it isn’t we know that and it’s it’s a challenge also that made this really painful though yeah but so I I I we need
(45:09) we need we need to get all parties municipalities the provinces the federal government to get together to find solution ASAP uh so to answer your question I don’t have a magic Bill I’m just saying I’m just trying to in my own thinking process trying to come up with Solutions that’s part of it you’ve got to have programs like that that are specifically targeted and of course you got to open up land right which is you know I was telling you before we started recording the podcast that uh yeah we keep talking about Supply but what’s
(45:37) been forgotten is urban planning and saving land uh in in especially large centers like GTA Vancouver Toronto Montreal that that that that that can remain affordable instead of putting it into on the market and then there’s been speculation like sometimes the land is worth more than what you build on top of it and so that was completely best no and it was completely neglected now you have people that are cannot afford like poor people living in downtown large cities so yeah it’s just food for thought I I’m not pretending
(46:08) here sitting here but I know this kind of program as the cost of money goes down which we know it started and they will continue to do so in the next year or so this is the kind of program that needs to be put in place to to encourage Construction in my opinion uh so it’s pretty excit I’m pretty EXC tears a lot of weight was that I think your opinion carries a lot of weight but it’s just uh you know it’s it’s it’s it’s that that’s part of it you know but you have to create incentives to build and uh governments have the key role to play in
(46:39) that but CMC direct lender so that’s something I’m very excited about and uh so I was saying I was trying to figure out which act is this because as you know I’ve had many iterations of my life like you have uh my kid had many many many as well and so for me the way I look at this my my and I’m saying this publicly uh my kids are gone I have a nice portfolio of apartment buildings I can do whatever I want in life I could retire I’m not retiring why I want to be part of the solution I love Canada always did very proud Canadian quebecer
(47:14) all of that is part of it and Alberton now uh I want to be part of the solution yes I want to make money I’m not embarrassed to say that this is not an embarrassment like you know christop is telling us that’s BS that’s how the world has evolved and has progressed and has become wealthy we’ve got to go back to some of these values and yes I I uh I want to help people out and I want to help my kids I see that the potential in construction world is uh so tremendous I see my two sons in a couple of years joining me in my brokerage firm that’s
(47:44) what I see but uh yeah I I my goal as a final kind of career move I don’t think I’m going to reinvent have another act after this one is to be the best uh multif family broker I can’t can be and multi family huh and development of multi family Absolut development of multif family of course you got to take out the people I get help out but my focus is on construction focusing only on that and I think so again this apartment construction loan program is one good uh good program we need more like that and it’s going to get very
(48:19) complicated when the cities and the the provinces wake up and federal government this is a first good attempt but when they wake up you saw there’s been rule changes in June right for for mli select and stuff like that people were livid yeah exactly well there was a major Rush then everybody sent their files before the change uh the changes occurred but I want to be a specialist when all these new rules are coming in place I have the expertise the wherewithal to stay on top of it and help people that that want to
(48:46) make money nothing wrong with making money like I like the way I see it is I don’t want my kids to be landlords I think the most noble real estate investor is the developer yeah people who are crean Supply because you’re solving you’re solving problems now yeah yeah you’re solving the hardest problems for the and those problems are for the betterment of society and and that’s like you heard this is part of my goals to be part of the solution but at the same time making money there’s nothing wrong with that I
(49:14) just I just find you know that that we’re landlords we’re bad people I’m tired of that that’s that’s BS that’s it’s got to stop it’s not doing Canada any favor you’re not encouraging people to develop no you know why we’re we’re we’re becoming a poor country people I Ur I urge your listeners we are becoming an impoverished country this is not a joke you know our productivity situation per capita is dismal yeah dismal yeah uh Ben I saw Benjamin tuls speak just a few months ago and his words were along the lines of uh we are
(49:44) in the recession in terms of real GDP oh yeah we are we are absolutely are yeah which is a very important metric yeah right yeah no it’s uh it’s uh so I’m excited you know what I’m excited I’m I’m healthy like I said don’t take life for granted right uh lost a nephew uh who was one of my best friends lost two brothers lost uh uh two years three years so you you got to live with purpose and you got to you know you got to give back and you have been very good at giving back I have been like that that’s I’ve helped a lot of people get
(50:15) into the multif family world and I want to help people get into the the the the constructional world and be part of it and partner up with Builders I’m open for business folks listening if you want to build let’s let’s uh Play Let’s Build let’s make money and let’s help uh solve the housing crisis so it’s very cool uh to be in a place like that you and I were talking about keeping balance I have a fantastic life I still travel abroad I hike I hunt I ski I uh I’m present being present because you just don’t know what’s going to end like life
(50:43) you know like I said my my nephew 42 years of age left two kids Behind didn’t take care of his life had a heart issue to begin with but uh he knew better or should have done better but didn’t but the point is sometimes you can die in a car accident my gosh you’re traffi you’re in GTA oh my gosh I I prepare myself you won’t die in SL traffic though yeah oh my gosh when I come here every when I’m think okay I’m in drono now man you get cut off like oh my gosh it’s something else I am happy on my acreage looking at the Rocky Mountains
(51:12) looking my chickens and my chicken CP or the the deer that come into my uh on my land nice lifestyle do you know exactly why antarians are much more stressed up than other Canadians cuz we live in traffic you know have fond memories I like coming back back here and but been there done that moving on moved on so I want to go to like the everyday investor like take Adam For example yeah like Adam’s like in his 20s still what what what would what would your advice to be to like Adam how do how do you get started I love that question uh so I was
(51:45) at the Ottawa real estate Forum uh just uh yesterday uh I saw a lot of young guys as another group in Montreal like uh they were volunteer at the real estate forum and I thought it was so cool they were probably Adam’s age and I started chatting with them I said man you guys are smart so even Adam smart to be here with you learning from you um volunteering attending volunteering Adam are you volunteering I won’t I won’t put you on the spot uh no but you know what I’m saying that to to have that open mindness and thank God I know your kids
(52:20) are like that minor like that the world is their oyster and so have an open mind uh as you do and you know find mentors whatever you’re trying to do that’s uh that’s important but yeah start sooner now my bag is multif family you do single homes um there are advantages and like pros and cons but there is no perfect right no but there’s no doubt it’s it’s multif family has you have economies of scale right if you have the market right but again again you can always mitigate your risk right you just you don’t have to
(52:55) borrow a you know a 95% loan to value if you don’t want to so it’s finding that balance but yeah to be open-minded but start early uh you know don’t don’t be a spander on on stupid things and stuff like that and and yeah find a mentor find uh but yes start early that’s I don’t have regrets in life because everybody has their own path and I come from a poor family in the mining town Northwestern Quebec you know I’m number nine of family of 12 kids I think I told you that typical French Canan family so didn’t grw up uh with a lot of kids it’s
(53:23) too many it’s too many it’s ridiculous but didn’t grow up um being taught uh financial management or any of these Concepts so I came to that very very late in life so but for young people start early get a good Financial education read books there’s so much stuff now right and groups like you and I belong to rain and stuff or training like yours or mine uh that’s what I would recommend to do but do it early and don’t rely on the government for your well-being and your wealth my kids know where I stand on that you cannot we
(53:55) are going to see stuff so again I’m a student of History having traveled all over the world I read like avidly about everything macroeconomics we are witnessing significant changes in humanity not not even mentioning the geopolitical situation so uh yeah I I sat down you don’t know this but I so now hanging out with Brokers being a broker myself went to a Brokers conference in Whistler in February one of the keynote speakers was uh Steven poas former you know governor of the be of Canada yeah pretty cool is a smart
(54:28) guy down to earth like this so I cross from me at the same table and chatted with him uh wrote a book the next age of uncertainty and I think next age of uncertainty so that’s a that’s a good title yeah well because I think the initial book by the former um Economist I I one of those famous economists that escaped me I don’t know if F galb or something like that it was the the the the age of uncertainty so his book is the next age so picking up where GB or whatever whatever other economists but it’s all these
(55:01) revolutions the industrial revolutions the invention of the steam engine and all that and now where we’re at with AI I I love the book well uh he’s a fantastic guy and it’s a good book you know so that’s we’re witnessing yeah I I’m an optimist I know I Got It Made for what I’ve got and I’m a developer I need to tell you about that uh well my land my own land but uh you don’t really on the the government for your well-being and your wealth you need to protect yourselves you can’t uh people this is what a deplored since the
(55:32) second world war our society’s became very wealthy and the government taking care of you but I find that the ability of the government to take care of people is uh is coming to an end or maybe not a complete end but we are asking too much from our governments and they’re taking too much uh space too much room in the economy and that’s not good that I mean you can see the results we’re going down the drain so I’m saying stop relying on the government for everything build your own independence right living on your terms your life on
(56:01) your terms that’s that’s why I connect with uh you know with the guys Rockstar Tom and nicks that’s part of my own values uh but yeah we’re witnessing some significant changes in humanity Ai and I love AI I love chat I can’t live without it anymore yeah see I’m still I’m I’m I’m going there and myself SL slowly I can show you some things after we’re done yeah no I’d be interested to know that way how you use it for sure for example simple thing I do is when I have a guest on the show because I know you so well we can just have a conversation
(56:32) but if a guest I don’t know well I’ll take their bio give to chat gbt chat gbt already knows who I am okay already knows I have a real estate based public cast so I say prepare me questions oh yeah okay boom beautiful yeah no it’s uh and we have to use it but it has some uh hazards as well like you know ethically uh we have to look at that but it’s very cool Bill Gates has a new series on Netflix hey he does yeah very cool so one one one episode is on AI um and the other episode actually uh it starts to show that episode starts hey Bill are
(57:06) you are you too wealthy and you know he’s got the pledge thing where all these billionaires are pledging their money but yeah but there’s what else I think it’s worth it he’s uh I like people forget he’s already he’s the world’s biggest philanthropist yes right huge huge oh yeah he’s giving most of his money away you you’ll hear that in the episode but today as I think as of today he’s one of the top philanthropist world oh yeah absolutely so but yeah don’t rely start Young Adam start young and uh you know pay attention read educate yourself yeah
(57:38) Adam started young he has a basement apartment in his his place yeah he has hacks good for you good for you yeah but if someone wants to be a developer or in construction what what what kind of steps should they take any any like tangible like higher realtor find a wholesaler go door knocking oh uh so I I’m going to be I’m going to be honest I I well you need you need so I don’t have the skill to build um I’m I’m decently handy but it’s not my thing clearly so uh well to build eight units would be even a big effort yeah I I
(58:11) think it’s to find somebody so for me what my goal is is to associate myself with uh professional Builders my job is going to be to get the financing done and all of that and you know in exchange for a portion of the equity and and look for opportunities and interpret all these new programs are going to be coming out to solve the housing crisis uh joining the local Builders Association so that’s stuff like that uh yeah that I absolutely that’s stuff like that that I want to do actually I’m I’m do I’m here that’s partly what I’m doing
(58:38) here trying to plug myself connect myself tomorrow I’m meeting with a uh uh an energy consultant partly he’s been on my uh workshop and all that but he’s got contacts in that world so if you have any contacts but that’s with the building uh world and uh uh but yeah it’s just my first Tri to Ontario cuz I’m licensed in Ontario in Alberta but yeah I want to connect with the developer world in in Ontario but find somebody that has economies a scale everyone right it’s like anything else the more you do it you have better
(59:08) systems uh the only cave out I would say and we I was hearing that at the uh Ottawa real estate form uh a lot of Builders take shortcuts you know that even on the condo world like uh they take shortcuts when they build them they’re poorly built so you got to be careful about that yeah my dad was my brother just bought a house it was about 20 years ago and then the day he moved in some a breaker BR broke my my son’s girlfriend and downtown drone same difference she moved into an apartment brand new brand new it’s it it’s flooded
(59:40) the wall the inside the wall she had to leave her apartment and the the landlord wouldn’t compensate her she just a brand new she is the first tenant one of those projects downtown what leak the leaked inside the wall the the bathroom I think I don’t have all the details but she had to but someone above not no no in in her unit oh so quality right how you do anything is how you do everything that’s uh what’s who said that what’s his name John asraf how you do anything how you do everything anyway Tom was the one
(1:00:09) that told it to me the first time okay well I teach that I’m sure you teach that to your kids and and and it was in the context of vetting people yeah like if someone had if someone had done some shitty business with someone else yeah then you can expect them to do the same to you so it’s like a so that’s why I’m like a red flag and yeah we we can be friends we want do business together yeah and and we need to return you know so I’ve got this for for your audience here I’ve got a two things I car with me every day so I carry this gratitude Rock
(1:00:37) I don’t need it anymore but I like it I picked it up from the shores of lake tiak on a big uh hiking trip to matchu picu with my older son who lives in Toronto now so every day I I put in my pocket that beautiful Rock I don’t need it to be grateful I now it’s obviously clearly habit the other thing I car is a is a coin says Moto Mory uh which is a stoic philosophy of remember your mortality has a skull and has an hourglass and and a flame you know The Hourglass means time is passing by life uh goes on right so make sure you live
(1:01:08) well and the flame is symbol of life but um it’s it’s important to to to to again to live with purpose and and be able to to leave a legacy but also to have value in doing things well and I find we’re losing a lot of virtue it sounds like an oldfashioned word but you know to to to to to do the right thing when it counts we’ve got to go back to some of these core vals and I’m not particularly religious but uh I find the stoic had this kind of understanding of you know sometimes it’s good to suffer uh one of the reasons I like to put on my backpack
(1:01:46) going to the mountains or even traveling I do both I will do the high-end traveling with luxury and all that but I I like it’s one of the things when I liked about the mountains is my Place put on your backpack your body has to carry all of that weight up mountains you know up in higher altitude and it’s it’s its simplicity at its core while the stoes were like that sometimes it’s good to suffer to go and work with the peasants and to to remember what it’s like and I come from humble beginnings where we weren’t we were a poor family
(1:02:16) so it’s important but to to to have the sense of appreciation and gratefulness but also when you do something like if you’re going to build something build it well build it to last not just to make money just for the profit like yes I want to make money but I I want to be proud of what the end result is going to be so for me I’m looking for people who have similar values that uh and I’m going to give it my all I’m at a place or when like unlike you I don’t have my kids are gone I can I choose to do this and my goal so that’s the public
(1:02:45) commitment that I’m making to be the best mortgage advisor for people who want to build housing in Canada that is and I have all the time in the world to do this all the luxury to do that so pretty cool pretty cool I’m very excited to be where I’m at uh today you know and uh being part of the solution because it is the biggest challenge that Canada has faced since the second war it’s getting worse by the day uh just hope our leaders wake up they’re too slow to act I saw I was at a conference on the weekend there were a lot of Builders
(1:03:15) there and I was telling them how everyone should be thanking wom Builders I said that to them I said my gosh yesterday I said you are so lucky you’re in the right place at the right time conditions still not completely right right yet because the cost of money and inflation construction material but uh I I I’ve said this exactly some something similar yesterday the one of the last uh speakers that we had was the mayor of Ottawa and I was sitting at a table with Builders and I said man you I wish I had your skills but like I said I’m going to
(1:03:46) help people who have the skills to do it you know and partner up with them that’s my goal it’s uh yeah and yeah that’s pretty much uh my my my bit for where I’m at in life yeah but Builders and developers that we we really need them yeah that’s why I say everyone should be thanking them yeah I’m I’m I’m using the word interchangeably developers build it that’s what I mean yeah oh no we need them yeah because without them who’s going to build it who’s going to create Supply the social pressure is increasing so faster when it is like I said it it
(1:04:18) it should be declared a a a a war effort where all three levels of government need to get together mun ipal provincial Federal probably utopian to think that that can happen I don’t know but uh that’s what needs to happen and um the biggest flaw when I looked again I’m thinking of the US and I go to the US one of my best buddies is from the us and we get together regularly and I go U my wife now has a new job so she’s leaving for Atlanta on Sunday she was in Chicago last week for work she’s a card deck nurse so she attends all these uh
(1:04:54) these conferences uh we need to go back to a place where people are accountable uh the lack of accountability at all levels especially Civil Service talking about government here I’m talking about the government that has to stop that has to stop I it’s it’s it’s it’s it is and these people who are and I used to be one of them right at CC I like I told you I I get a pension I can’t believe that since I turned 60 um they need to understand they’re privileged they don’t have to and we need to reward risk so we need
(1:05:27) accountability and we need to reward risk that has to stop and and people have to wake up it it’s not going well for us in Canada we’re becoming an impoverished country and uh a homeless impoverished country on top of that so that’s that’s that’s very worrisome very worrisome and um seems so many people are unaware of that you know so anyway it’s it’s yeah so anyway that’s my bit to try to solve that being a mortgage advisor and helping people uh do it that solve the housing crisis how are conversations going so
(1:06:03) far with like with the builders and whatnot with this new program oh this is brand new by the way this when was it announced huh when was it announced this program so this is the problem it’s it’s not being announced that much it it there used to be a program called and it’s funny because I met at the again the conference yesterday in Ottawa the real estate conference real estate Forum um two representatives of cmec I said I told them about said this is a great program this is what we need more of this and uh but there was another
(1:06:32) program that used to be called rcfi uh rental construction financing initiative and I said is it pretty much the same they said yes we’re just repackaging it so they’re going to announce it but again yeah it’s not being announced it’s it’s already begun this is in place but in June the first person of her talk about it no but that’s my point that is I just I’m very deliberate by here coming here to you and like I said I’m putting together presentation on this program and that’s going to be sort of U my Flagship presentation and say hey
(1:07:01) let’s let’s use this no there there’s not a lot of announcements it’s it’s a shitty marketing job on the part of the government most people haven’t heard of it but I don’t it sounds it sounds I cannot explain it to you I cannot explain it to you Irwin you’re valid question you’re asking me I cannot explain it to you and we got training on this that’s why I’m saying uh but this this again this will make millionaires somebody who’s a builder 100% loone the cost being funded right with low cost money through the Canada
(1:07:31) mortgage Bond uh securitization MH you build it you take your money elsewhere because we see in the states where they have excessive building and then rents come down values come down yeah creat more affordability well du you know that’s the issue you see significant subsidized housing in in Asian countries yeah so people can live on minimum wage yeah people have rent between like $500 a month yeah right yeah but this program the model exists yeah no I mean like I said all coexist and like I said the issue with large
(1:08:05) municipalities like GTA Vancouver is they they they there was poor urban planning to preserve some land for affordable housing and that’s uh but I mean I you know I know this part this portion of the pie from a financing point of view but surely people in governments have more access to more information but I yeah it’s bonkers like you look at our like we’re in Ontario so you look at our GO train stations yeah they can build parking lots why are we building condos on all these parking you’re right next to the GO
(1:08:37) train station you have freedom to go wherever I’m I’m truly alarmed at the fact that we don’t hear more about uh like that yeah housing is on everybody’s mind but how long have we been talking about it like the federal government only started in the last year or so two years I think at the most right the federal government and trudo and Company but very little is still getting done and time is running out and the social situation the social pressure is increasing I’m I’m flabbergasted then again probably I shouldn’t be its
(1:09:04) government like trudo built like bought that pipeline Keystone right no it got canceled Keystone got canceled sorry the other one trans um Trans Mountain Trans Mountain so we had all that money for that but we didn’t build any housing we have natives without water Orwin natives without water poble water Irwin how is that possible but pot is legal now woohoo that was a big uh big uh big priority right he’s anyway we don’t want to go there because I rant against trudo is my favorite sport it’s but to easy it’s too easy okay but I’ll
(1:09:39) say this much I I want to say this I been involved in politics since I was 16 I do have a degree in political science with the minor international relations from EFT when Pierre Ludo I’m guilty as charged did retire I was a delegate for the liberal party with my mother in Ottawa to to choose his replacement so I used to vote liberal uh I don’t anymore I’m a card member of the conservative party I donate money um when Arin OU previous uh leader of the Liberal Party retired uh I was I voted for to to replace his his
(1:10:21) successor I did not vote for pier P I voted for Jean but this is the two solitudes in Canada right classic has always been like that why voted for Jean share he’s perfectly bilingual left Quebec with a surplus okay when he was there I never liked Pier P I still not too fond of him uh I I think he first of all he’s a career politician so that that doesn’t score too high in my book when you’re you know you don’t have a lot of real life experience and running a business which makes a whole difference uh but nevertheless you know so he got elected
(1:10:58) as leader um when I go back to Quebec do you imagine I you know they put in Trudeau Quebec in a large extent and some writings here in GTA as you know right uh I have to be very careful talking about politics and when I try to have a conversation I’m still not fond of Pier p i don’t vote for the man I don’t vote for the individual the human being I vote for the values and the general directions I don’t spend more than how much is coming in you know like we have to stop spending just common sense you know yes I believe Canada is
(1:11:28) broken very very badly broken so I just urge people to get more involved I have a brother he doesn’t vote I said he’s older than me I said but that’s the problem that’s a different problem I could be in that category right I got gray hair I’m kind of a the last uh the younger cohort of the Boomers these Boomers have got so much money I know they all came and bought the houses and cam where sold their houses here in in in GTA and bought those house $23 million in camore uh missed a Market there and I can still afford it but I
(1:11:57) don’t know if I want to do but the point is they have so much money they’re sitting so much on money that I feel that they’re kind of giving up on social activism and and and being involved because they’re so privileged financially I think that’s wrong I think that’s wrong and so he’s one of those right he’s a a little bit older than me but uh eight nine years older than me he’s got his pension and is not getting involved anymore so that that’s we got to get back involved we’re all paying the price at the end of the day and
(1:12:23) younger people the younger generation they’re screwed they’re screwed big time that’s why you and I are in a position to help our kids otherwise because we I the way I see is I benefited from all the government not so good policy yeah so it’s only to me it’s only fair I give back to my kids because they got screwed in this I think it’s part of our Humanity if you don’t give back so another quote uh success unshared is failure Michael dejor I think he billionaire as well but that’s the quote uh yeah success unshared is failure and
(1:12:59) to me it’s part of my Christian values I don’t go to church but brought up as a Catholic but yeah I I want to be part of uh yeah you know on your deathbed you said I helped others I lived a good life um you know I I loved yeah I I and I I lived I don’t know that’s that’s my philosophy you can’t need money to do so though no you have to have money money is is is you have to have money and and and I always think earning money through altruistic things makes it even more enjoyable oh absolutely and now would categorize development being or being a
(1:13:32) builder one of them not to say it’s easy yeah no no but if you can provide value and make money at the same time that’s that’s what an entrepreneur is right that’s what it should be you build someone’s home that’s you create you create value and it’s it’s it’s yeah and it’s the problem with our civil service it’s too large and it’s too inefficient 40% since Trudeau you know that the federal civil service yeah Federal and they’re not doctors and they’re not doctors Teachers Health Care nurses fire police they’re not
(1:14:01) that CRA I’m going to leave you with that so I like history I studied it when I was here at UFT 40 years ago the Wars all the wars the colonization and all of that jazz uh I see a lot of similarities where slowly personal freedoms and rights were taken away we are witnessing that in this I I know it sounds like some kind of conspiracy it’s not you just have to pay attention MH uh it it is happening we are we’re having our our our rights and freedoms slowly being taken away people who who make money who take risk uh are being um you know are
(1:14:40) being looked at negatively uh it’s very scary I don’t know if I showed you this but this is a book I read have you heard about this book I have heard of it yeah it says it’s uh the author is Carol Roth uh it says you will own and then a bunch of things have been crossed out you will own a house it’s been crossed off right because it’s hard to buy a house you will own a car it’s been crossed out you will own a business it’s been crossed out you will own stocks it’s been crossed out you will own your life it’s been crossed out
(1:15:08) so at the end you will own the only word left that’s been not been crossed out is nothing and it it’s real examples and can is cited in this book you know how we are slowly having that’s got to stop it leads to Revolutions history repeats itself every when if we don’t pay attention it’s is happening to our country Canada I can’t believe I’m I’m saying this to you but it’s factual not an opinion Pier Paul has any anyone who studied a little bit of history and studied any sort of country or country that’s failed or had an
(1:15:39) economic collapse which is coincides with currency collapse like it doesn’t it’s not pretty no right which is why she’s own hard assets absolutely that’s what you and I are doing that yeah absolutely absolutely and I want some US Dollars yeah it’s it’s that’s how the world evolve people who create wealth you know you need wealth to bring the rest of society upward but so you productivity that’s what I’m saying absolutely you need to you need to encourage that well it’s a fundamental need so we screwed up on that
(1:16:13) one now uh can we talk about your course still no no but we can talk no not for the time being I to be honest with you I put it on pause but if people want a mortgage broker so you kind of get a sense what my values are where I’m at MH uh uh all I am is a mortgage adviser specializing in commercial residential and construction financing with an emphasis on construction financing you can find me at uh my email is PP Turon May so it’s spelled the away it is m a o ki.
(1:16:48) CA PP I mean you’ll get my uh P at and um cuz I love the acronym because means PowerPoint yeah oh yeah anyway you can’t get me off PowerPoint Apple slides no guy PP but yeah so PP t p at Mei and uh yeah but get your together if you want to work with me I I want to work with Pros it’s it’s not you know how does one learn to be a pro though that’s why we need to talk about the course yeah well the course yeah I for for this fall Irwin yeah reach out to me there’s a way list you can go to my website it’s the easy website multif family investing
(1:17:28) Canada Mick multifamily investing canada.com Mick uh and I should have one after Christmas but not this fall this fall I’m just you know working on focusing on my uh mortgage advising portion of the business you want Pros you need to produce some pros cuz you can wake up and become a pro but the only difference win so it’s a game right getting financing is a game I know what they want that’s why I was able to teach it all these years uh and it is my pet peeve and again my legal training makes it that I need to have it as perfect as
(1:18:02) I can so that my loan is approved right off the bat because if especi you need your money you need your money exactly especially if you’re building right so it’s even more stressful so you know yeah but no I I’m I’m happy to give people a a free half hour to get you started what I need and stuff like that but it’s All About Numbers what’s your income so if you want to if you buy an existing property what’s your income uh what are your expenses and that I’m pretty good at as well cuz being a an owner myself but what are your numbers
(1:18:29) give me numbers and then I can run I can run so half hour free consultation right if you have some documentation um I can produce a spreadsheet and like I said that’s a fantastic tool that we have it if shows all the financing options whether you go mli select conventional or uh you know C standard um a fantastic uh visual I’m highly Visual and this is what we’ve got in our office and our office only does multi we don’t do Residential we’re under the multi family residential multif family residential yeah yeah well it’s five units or more
(1:19:03) let’s be clear it’s five units or more right below that is is residential if you will right so no no strip malls industrial just residential 5 minuts up yeah what what is mayoki is it an acronym for it is oh no don’t ask me I’m not us I’ve got the definition somewhere but not here with me but yeah it’s it’s got a meeting I I should have known that I I’ve got I asked that when I joined the firm yeah sounds like the name of a whale or something it’s it’s got a meaning I apologize I’ll send it to you or when when I go back today I’ll send
(1:19:31) it to you uh but um one thing I want to stress about this team why did I join this team aren’t you you haven’t asked me that question they they’re from Montreal okay and I could I’m still being uh approached to work with other people in western Canada MH but uh it’s a it’s a number of reasons I I read a book when I got my licenses I’m licensed in onaran in Alberta Dustin woodh house he was president of mortgage Architects which as you know does residential only and um I read his books and he kept saying ah you can reach out to me if you
(1:20:07) want to chat I did I said well I just got I told him my credentials worked at samhc I have a portfolio of apartment buildings and uh what do you think where where should I go you got pretty high up you got pretty high up on the website I got the perfect guy for you talk to David mer and uh he used to be I think with bimo his mom worked at bimo and what I liked about this firm what I still like uh first of all I get back to my French K culture and David our main broker is also licensed to Naran Albert like me uh I go I I I interact in French
(1:20:43) as well in the financing multif family financing world I like that I’m not not going to suffer from Alzheimer my brain is still constantly going but you don’t have to use a lingo in both English and French I love that that’s a nice mental uh exercise but I would say it’s it’s uh it’s the underwriting Department as well that I like when I teach my pet peeve is like exactly for me that’s why I created a course because I know exactly what’s required to get your deal approv right away because if you have delays even if
(1:21:12) it’s just you’re buying an existing property and you got you got a wave condition and it’s stressful right even more so if you’re building so make it perfect up front my pet peeve is presenting remember I had a presentation that rain was the perfect financing application because I know exactly what button needs to be pushed that’s the value those guys some lenders I don’t know how much more time we have but uh it’s very interesting as pressure mounts to solve the housing crisis oh yeah I definitely want to talk to you about
(1:21:40) that until I became a mortgage broker I didn’t have direct access to lenders right because when I was at CC the financing route was already decided upon by the investor and uh borrower and the bank or mortgage broker mhm now why I’m a mortgage advisor is I have to figure out what’s the best way to finance your project whether an existing property or a construction so together we figure out a way to do it okay and uh when I teach I I I put a lot of emphasis on making sure that this is how it’s on it truly you know I’m I’m a foodie I cook a lot I
(1:22:15) know you do too uh it’s a recipe follow the recipe okay there were lenders in the last little while with all these changes like large lenders I’m not going to name them but but they’re the big ones okay just read between the lines that were had their wrists slapped by CMC we’re talking since Christmas big big you see all their ads by CC because they didn’t have their together we we our files never had that because they were perfect so this is the kind of value that this firm has and then you get speed you get speed speed
(1:22:46) we don’t get issues we don’t get issues with CMC when our go through yeah it’s has to be and it has to my job when I teach is always make the job of a cc underwriter as easy as possible same thing I used to do as a lawyer top of the list right same thing I used to do as a lawyer does when I was a lawyer Irwin I’d go to front of the judge you know I was a litigator and I had a binder with tabs and my job was to take the judge by the hand lead him or her to my decision that my client should win same idea you take the the hand of the
(1:23:18) under writer and you give them exactly what they want and it’s a recipe it’s not complicated it is an expertise I’m not going to deny that but uh that’s why I like these guys the the underwriting department is is spot on we have now with technology we are integrating technology you know uh a CRM system whereby I know what’s your birthday uh what religion you are at and you know we can make make sure that we treat you as a client uh properly and efficiently and uh I pretty cool pretty exciting big learning curve well that’s I’m beyond
(1:23:48) that now but it was a beginning to learn all that but that’s why mayy our reputation is extremely good uh with the the the lenders and you know CC so want to keep it that way that’s why I joined them uh one last time where can people reach out to you so ppon may. phone number I’m going to give you a different number that will work as well but 403 966 931 again I’m more than happy to spend a half hour with anybody who wants to either buy an existing property or build one um try to have something tangible so that it’s it’s a
(1:24:23) you know it’s a worthwhile call like if you have some numbers if you want to buy so that’s something I’m going to be doing I after this interview uh somebody wants me to run some numbers I can run some numbers but if ideally have some numbers if you can uh hopefully that hold water and I can give you an idea what kind of financing you can get and construction well then it’s more complicated make sure you have ideally what your construction costs are validated but the point today I know and even you and I this message for you as
(1:24:49) well I know what your business model is but we should all consider switching to to construction because more programs like the aclp are going to are going to be needed and coming out and that’s kind of a conversation I had with Derek clobo when I took his development course uh they will that we have to solve this housing crisis so I’m just pointing you know planting the seed in people’s mind it’s yeah there’s opportunity the us because it’s a more liberal Market but uh we are going to have tremendous opportunities here in Canada I may just
(1:25:18) wait till the kids are out the house that’s wise no and you don’t want to miss that part you know I was there work from home like Q I was extremely present that that yeah do that first P Pa thank you so much for spending your birthday with us yeah well you know we all happy birthday no no you can pass on that I think everyone just hit St well thank you for having me here when always a pleasure you’re a gentleman and scholar and uh yeah I I look up to you you you made you make a difference in people’s lives and I think we’re you and I are we
(1:25:50) share similar values it’s important and you know because we’ve made it I mean it’s always it’s always in progress making it right it’s never an Ending Story but we’re in a place of privilege and we need we need to give back and I you you and I share similar value and I appreciate you for that and having me thank you all right good stuff thank you everyone all right friends that wraps up another episode of the truth about real estate investing show for Canadians hope you got as much out of this one as I did remember that whether you’re just
(1:26:18) starting out or a seasoned investor there’s always something new to learn and it’s always about building that practical knowledge base that gets you closer to Financial Freedom if you found value today please do us a favor and leave us a review or a rating share this episode with a friend or better yet join our community of Real Estate Investors who are taking action and making moves and hey if there’s a topic you want us to cover or have uh there’s a certain guest you’d like us to have on the show drop me a line my DMs are open on social
(1:26:42) media reply to this email that this have arrived on I’m not hard to find uh you know we’re all about getting you the unfiltered truth to help you on your journey thanks again for tuning in and we’ll see you the next episode until then stay Smart Stay curious and keep building that future catch you later

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