Summer hard 2024 complete, back to school, back to learning about investing. Is anyone investing in long-term rentals anymore? What we’ll be learning about at the Real Estate Resilience Summit – Business Edition!  All this and more on this week’s Truth About Real Estate Investing Show for Canadians, I’m your producer and host Erwin Szeto since 2016.

The Bank of Canada just made their 3rd consecutive rate cut of 0.25% after what has been the quietest summer of real estate in my career history, landlord since 2005, investor specialist Realtor since 2010.

The market has spoken, rental properties as investments in Ontario are out of favour across the board.  I have friends with very nice apartment buildings for sale receiving no showings.  I’m seeing the most lopsided investor imbalance of listing/selling vs buying.

Listings of rental properties locally has never been this slow in markets once popular with investors and multifamily.  

Elizabeth Kelly’s Real Estate Resilience Summit – Business Edition couldn’t have come at a better time as Canadian investors have never had a harder time finding opportunities.  

I was having dinner with a coach recently who informed me that it’s been months since she’s seen a deal she’d be willing to put her own money into.

On the flip side, we at SHARE, a tech enable asset manager who in my experience makes building a fully managed rental portfolio the easiest I’ve ever seen.  Fortunately or unfortunately, that can only happen in the USA thanks to the size of their economy, fastest growing in the G7, combined with low taxes and landlord friendliness.

I was literally telling my little cousin about a deal I was reviewing in Kansas City.  He’s looking to invest, he’s in real estate, his dad, my uncle was a big time broker.  Point is, he knows a deal when he sees one and he’s family.  Back to the deal: An off-market, 1,200 square foot bungalow, 3 bed, 1 bath built in the 1950s.  Most investors know this type of property in their own target markets as it is typical for basement suite conversions and would cost around high $600 to low $700k in most investor target markets like Hamilton, Oshawa, Barrie, Kitchener-Waterloo-Cambridge.

Back to the deal in Kansas City, MO.  Price from wholesaler including their fee $152,000. Renovation quote to bring the property to rent ready: $20,000.  Projected rent: $1,300 per month.  For Canadian investors who’ve been around for a while, we’ve turned back the clock on our real estate market over 10 years.  Cap rate for those who understand commercial real estate: 5.9%. I have the home inspection report from a 3rd party inspector, I have the renovation quote from the property manager, personally I would do the deal from the comfort of my home. 

This type of deal can be done as a low effort side hustle.  I do think it’s wonderful what all my developer, flipping investor friends are doing but I personally don’t want to invest that time and effort nor would I choose a strategy where the linchpin is CMCH, a government institution.  For those strategies, I’ll have experts in those fields as guests of my show like best selling, co-author Russell Westcott out in Edmonton who’s building, developing small multifamilies all the time and he’s also investing a lot more time, money and effort than I’m willing to.

There is no right or wrong in real estate, it’s just what is best for you.

After saying there is no right or wrong in real estate, I’ll read to you a quote from one of my newer clients who’ve I’ve been trying to coach out of a jam they got into before they ever met me.  This is what they wrote me this week.

“Hey Erwin. Just want to let you know that everyday I’m grateful for your wisdom about my private lends. I ignored red flags and didn’t act fast enough so things are still quite painful. But, we would’ve been wiped out if you hadn’t shared your concerns with me. Thank you beyond words.”

Also this week, I was congratulating one of my long time clients who we helped sell their income property in the GTA and realize over $500,000 in capital gains which everyone knows is taxed better than lending interest. 

It should be no surprise that the long-term real estate investor is winning even in this market and going forward, I fully expect my clients and I to translate our success here to landlord friendly USA.  My only hope is to reach and educate as many people as possible so they can be successful like my long-time clients.

Speaking of education, I’m offering a free training webinar, a real estate 101 investing on September 17th, 8pm EST, anyone new to real estate investing or USA investing should attend this so if you have friends or family interested in investing, they need to attend so they can at least compare any and all opportunities they review against a single family house rental property in landlord friendly USA. SAVE YOUR SEAT HERE

I review deals all the time and it’s tough to beat SHARE’s offering of fully managed from acquisition to ongoing management to disposition, and when compared to any condo or duplex in Canada…. There is no comparison.

Building Resilience: From 100+ Unit Investment Portfolio to Active Business with Elizabeth Kelly

On to this week’s guest!

Award-Winning Real Estate Investor, Coach, Speaker, Educator & Proud Entrepreneur, my old friend Elizabeth Kelly who tells it like it is.  Elizabeth shares about her wins and losses in real estate.  She’s been an active leader in the community for nearly 20 years and is here to tell us about how we Canadian real estate investors can be resilient, what she sees for our collective futures in real estate and she’s hosting the 3rd annual Real Estate Resilience Business Edition of the summit on September 28-29th.  

Myself and SHARE are proud sponsors of the summit. I will be joining an expert panel on USA investing with friend of the show Glen Sutherland.  My wife, the lovely Cherry Chan will be a speaker as well and I’m super excited for the other speakers as well.

On today’s show Elizabeth shares her personal journey from mega real estate investor to entrepreneurship adjacent to real estate, the challenges of affordability for investing in local markets even after learning the hard way when back in 2010, she bought 100+ units and struggled with systems and operations.

Any and all investors should give this episode a listen to learn how to both win in real estate and to avoid losing which IMHO is another way of winning.

For more information on the Real Estate Resilience summit go to: https://realestateresilience.ca/

Please enjoy the show.

To Listen:

HELP US OUT!

BEFORE YOU GO…

Before you go, if you’re interested in what kind of properties I am looking at in the landlord friendly states of the USA please go to iwin.sharesfr.com for what I consider the best investment for most Canadians, most of the time.

I’ve been investing in Ontario since 2005 and while it’s been a great, great run. I started out buying properties in the 100,000s and now it’s $800,000 to $1,000,000.  How much higher can it go? I don’t know

To me, the remaining potential for appreciation does not match the risk hence I’m advising my clients to look to where one can find rental properties that are affordable range of $150,000 to $350,000 US$, with rents that range from $1,400 to 2,600/month plus utilities.   As many Canadians recognize, these numbers will be positive cash flow and are night and day compared to anything locally. Plus the landlord has all of the rights, no rent control, and income is US dollars which are better than Canadian dollars.

If you don’t believe me, US dollars are better than Canadian dollars, go ask 100 non-Canadians which currency they prefer to be paid in.

So to regain control of your retirement planning.  Go to iwin.sharesfr.com and check out what great cash flow properties are available in the USA.  

The best part is, my US investments will be much more passive compared to by local investments as I’m hiring an asset manager called SHARE to hand hold me through the entire process.  As their client and shareholder, Share will source me quality income properties, help me with legal structure and taxes, they manage the property manager and insurance provider while passing down to me preferred rates so I save both time and money.  

Share will even tell me when to strategically refinance or sell.  SHARE can even support investors all over the country for proper diversification hence my plan is to own in Tennessee, Georgia, and Texas.  Share is like my joint venture partner but I only have to pay them fees while I keep 100% ownership and control.

If your goal in investing is to increase cash flow, I don’t know of a better strategy for most Canadians most of the time.  One last time that’s iwin.sharesfr.com to see what boring, cash flowing real estate investing can look like on your path towards financial peace.

This is how I’m going to make real estate investing great again for my family and hope you choose the same.  Till next time!

Sponsored by:

This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me.  Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up.  If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/events and register for our next event.

Till next time, just do it because I believe in you.

Erwin

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Disclaimer:

As a committed advocate for transparent and responsible real estate investment, I want to openly share my involvement with SHARE SFR (Single Family Rental) as an Advisor. I hold an equity position in this company and receive a referral commission for clients I introduce to their services. My endorsement of their business model – focusing on direct ownership of positive cash flow income properties – is consistent with my own personal investing since 2005, is based not only on a professional assessment but also on my personal experience and belief in their approach. Please note that while I stand behind my recommendations, it is crucial for each individual to conduct their own due diligence and consider their unique circumstances before making any investment decisions. As always, my priority is to provide you with honest, insightful, and practical real estate investment education.