Building Income Properties on Free Land with the Infill Boys

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A post shared by Erwin Szeto (@erwinszeto) on Mar 17, 2020 at 6:01pm PDT

I don’t know how we last three weeks. And who knows when we get back to school 🤣🤣. I’m not complaining. It’s always been a gift to be able to work from home as much as I do.  

I’m sorry I keep saying it but what historical times we live in…

Just an hour ago I had to talk an iWIN client and member off a ledge as his parents are advising him to stop using debt to renovate and add an income suite to his 2nd investment property, to avoid risk and hoard cash. 

Let’s call him Joe.  Joe is like a little brother to me and even though I owe him a duty of care as our real estate client and iWIN member, I didn’t mince words.

I told him to get the B**** rented. Risk? What risk is there if the place is rented and you’re cash flowing let alone making mortgage payments. 

You want to talk about risk, how about only having a single income as a job, to me that’s risky. And worry about inflation. Everyone saw the Bank of Canada cut interest rates again.

For those who kept reading the news, they’ll have noticed that OSFI, the government agency that regulates our banks, reduced their capital requirements of the big six banks so they could effectively lend out another $300 billion dollars.

Cheap money and more money means inflation so grab a hold of your hard assets.  Some gold and silver is great as insurance, no different than having some US dollars and cash of the paper variety.  There is also real estate, of course.

Yes, there are definitely those out there who are fearful as they experienced high interest and hyper inflation.  I personally don’t expect it here as that would cripple our economy and bankrupt a lot of Canadians. Something no politician wants to do.

My final words to Joe were that this is the time to double one’s efforts.  Vacancy rates are so low I even suggested he start advertising the apartments right away so he may collect rent sooner.

Speaking of doubling efforts, my team is not sitting back. We are innovating and moving what we can to online, including creating our own virtual tours with permission from sellers of listed properties. 

Our free training classes of the #1 investment strategy will be online. On a positive note, we can admit a lot more people into the webinar because we have less restrictions on room sizes and fire code.

Our monthly iWIN meeting will be moved online as well and I will still pay our AV guy Angelo because he’s a great guy and he just had his baby. I’ve asked him to still DJ the online event. I don’t know how that will work but if I’m paying, I want him to work 😊.

Our coaches will still be showing properties and looking for investments for our clients.  Our real estate board was kind enough to send out tips on how to stay safe.  

Besides investor Joe, there are investors out there shopping or who are ready to shop.  One of our clients was offered 2.6% variable rate mortgage on an investment property.  I would take that all day. lol!!

For the passive stock investor, there are already many great deals out there.  One friend of mine is buying stocks, 10,000 dollars at a time each week as he is a long term investor and he’s not trying to time the bottom like I am. 

I’m a long term real estate investor as timing the market has cost a lot of people a lot of money, so I buy houses when I have capital.  I made more of an effort in 2017 when the real estate market was soft right after Ontario’s Fair Housing Plan came into effect.  My guess is we’ll experience the same very soon as people are staying home and not shopping for property.

Quick update on my stock hacking, I’m down over one third of my initial capital so you’d think, ‘don’t throw good money after bad,’ right? Not us! Cherry’s account is now funded so we are both day trading which has been working out great as we are implementing strategies for a down market and we’ll be eventually moving even more line of credit money for bullish trades on Canadian dividend aristocrat stocks and the S&P 500 index.

Yes it does suck to have lost as much as I have, but I’m really excited for these next few weeks, maybe months, for the eventual reversal and ride the wave back up.

I missed out in 2008/9 which I regret, but this is also why we started and rushed out Stock Hacker Academy as I knew this was coming and I’ve never been more prepared.  

I’ve said many times, those with cash and credit win in downturns.  I’ll add to that, know how and hustle. It’s why Cherry and I continue to invest in our education and receiving coaching…

On to this week’s show!

Building Income Properties on Free Land with the Infill Boys

We have good friends of mine, Andy Tran, who I’ve been friends with since 2008, Charles Wah, I was in his wedding party, and Steve Ford, who is a newer friend, client and he’s the general contractor for our new office!! What a coincidence that they happen to be real estate investors too!

They are a team of three who are passionate about infill development projects, and are currently involved in several projects in the Golden Horseshoe. Each one of us brings a unique set of skills and experiences in development, design and home construction that can help you bring your project to reality.

Andy Tran has designed over 160 income suite conversions

Charles has developed land including over 150 houses

Steve has supervised the construction of over 1,000 houses.

They know their stuff, being personally invested in small residential developments, and are here to share how, including the #1 question: the cost to build per square foot plus all the fun soft costs.

Here’s the infill boys!

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