Trump election win, implications on investing in Canada and US, proud dad moment, how a mechanic from Montreal bought a BRRRR: buy, renovate, rent, refinance, repeat property in Memphis, Tennessee from home.  All this and more and the truth about real estate investing!

As always, I won’t comment on politics because like arguments, there are no 100% winners because even if you win an argument or who you voted for wins, you have likely damaged the relationships with the person you’re arguing with or those who voted for the other party.

While I do believe both Trump and Harris had positives to their policies, both have negatives and I feel really sorry for those who feel really hurt by the election outcome.

Where I do choose to focus my attention and energy is on how I may help my community of Canadian real estate investors and many have asked my opinion on the election results and their implications on Canadians investing in the USA.

The overall investment landscape for the Canadian, everyday real estate investor has not changed.  The US economy is the envy of the world in it’s productivity and growth. If anything, that will accelerate under a business friendly environment vs raising taxes as the Democrats promised.

We at SHARE, the easiest way to build a portfolio of fully managed US rental properties focus on business and landlord friendly States, some of them were Democrat and have flipped to Republican so our investments should perform even better.

Trump has promised to bring back to America even more jobs and manufacturing by applying tariffs to imports which will only increase demand for our rental properties already located near domestic manufacturing.

For example, SHARE recently expanded to North Carolina, specifically Greensboro where Toyota is investing a historic $13.9 billion to create 5,000 manufacturing jobs, the first ever Toyota battery plant in America for hybrids and EVs.  One of the biggest if not the biggest investments in North Carolina’s state history.  

The deal? A seller leaseback deal as in the seller will stay to rent the property so no upfront vacancy and the investor can defer some initial renovations while locking in today’s price, a win since the market is expected to go up with further interest rate cuts expected. The investment property is a single family, detached house: 4 bedrooms, 2.5 bath, 2,300 sq.ft, built in 2012 for $252,000. Expected renovations $38,000, projected rent $2,190 plus utilities. Estimated annual appreciation 4% and 5.6% cap rate plus all the benefits of landlord friendly rules and regulations: no rent control, non-paying tenants can be evicted in 30-60 days.

For full property details go to iwin.sharesfr.com. In my 20 year experience of being a landlord, I do believe it is in every Canadians best interest to be real estate investor and diversify to the USA for all the cash flow and landlord friendly benefits. SHARE deals to me should be every Canadians’ baseline to compare their future investments against.

Whoever decides to own this deal in North Carolina is likely a winner based on a Trump victory.

Unfortunately a Trump government is not good for the Canadian economy or dollar but we will fare better than Europe, Mexico, China, basically the rest of the world since we’re already major trading partners. 

For the Canadian real estate investor, yes the decline of the Canadian dollar hurts but again, we’re investing in red Republican states, our mortgages and rents are in US dollars and earning US$ cash flow, when cash flow is non-existent in Canada still makes a US investment better than a Canadian investment.

Please don’t take my word for it. Do your own research.  Here is a nice summary of my research using the latest version of ChatGPT:

I asked Google’s Gemini as well and they’re pro Democrat:

If you’re interested in learning more about US investing and where to get started, I’m offering a free training, hybrid format for the first time as in we’ll have folks here in my office in person and online via Zoom Webinar in the evening of Thursday Nov 28th, doors at 7:30pm for refreshments and networking, my presentation begins at 8pm.

As always I believe in giving value and investment education should be as accessible as possible so again this event is FREE and accessible in person or online.  Every attendee will have factual, tangible, actionable information and takeaways like every episode of this show.

There’s nothing I enjoy better than helping out the underdog become rich.  Helping rich people get richer is great too but helping young, lower or middle class, hard working people who aren’t rich yet, that’s what gets me out of bed.

Along with sticking it to the governments here in Canada who don’t want us here.  How better to send a message that we landlords won’t take it anymore than to exit and pay less tax to our municipal, provincial and federal governments who’ve all made it known that we’re not wanted here. 

Just look at New Brunswick who sent their Conservative Government walking after six balanced budgets to be replaced by a Liberal Government who will implement rent control of 3% next year.  We in Ontario haven’t had a balanced budget since 2018 and are projecting $419.7 billion.  We are one of the most indebted subnations in the world.

If you want to get in life, real estate investing is the way to go and on Nov 28th, I’ll be teaching How Canadians Can Leverage U.S. Real Estate for Passive, Scalable, and Tax-Efficient Income Streams

This is not selling coaching, mentorship, courses, joint ventures, OPM, creating a 2nd job for yourself and taking time away from your family nor is it getting rich quick.  In my experience, this is about getting rich slowly with as high a probability of success as passively as possible.  I’ve helped over 45 of my clients make a million or more investing in real estate and can’t wait to help even more Canadians from all over Canada do the same.

Reserve Your Spot Here

I hope to see you there!

Please allow me a proud parent moment I’d like to share with you my 17 listeners. Cherry and I invest heavily into our kids to ensure they’re happy, well rounded and prepared for the real world.  They work hard and my son’s standardised tests came back and like his older sister, he scored 99th percentile and will be tested to see if he’s gifted like his older sister. Something extremely rare.

I know many see how Cherry and I raise our kids is not normal but these results give me great joy and vindication that our parenting is working and we’re not going to rest on our laurels.  We teach our kids everyday that hard work trumps talent when talent doesn’t work hard and will continue to do so. 

My fellow parents know and for those who don’t yet have kids, I don’t know what it is but my kids have bought me more joy than anything else in life and I’d like to keep that going which I can by pacifying my real estate portfolio.  By investing in better cash flowing properties in the USA, I can afford quality property management vs. its waaaaaay more challenging in Canada.  

A long long time client of mine shared with me she called the cops on her property manager in small town Canada who is ghosting her and they have her rent money.  Yes cap rates are higher in small, tertiary and beyond towns but find quality property management and trades is way harder than major centres.

Enough about me on this week’s show!!

Trump win, How a 33 Year Old Mechanic from Montreal executed a BRRRR in Memphis, TN

This week we have an everyday, blue collar Canadian, 33 year old Shayne from Montreal who just bought his first investment property and he has executed a BRRRR in suburban Memphis, Tennessee. The ARV is substantially higher than projected, rent came in almost 10% higher.

Shayne is the youngest client of mine by far for years and years so I’m of course excited to have been part of Shayne’s journey to become a successful investor and mentor him in scaling up to not just have a large portfolio but for financial peace of mind.

This is his story, if you enjoy the show, please share this episode with your fellow Canadians who want to invest in real estate, especially those who can’t afford to get into the Canadian market or want diversification.  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

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

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.

Sorry for condo investors, Ottawa rocks, farewell golf season. All this and more on the Truth About Real Estate Investing for Canadians!!

Greetings investors, my name is Erwin Szeto, landlord of 40+ different properties through my career, Realtor since 2010 and together w my team at iWIN Real Estate we have helped investors transact on close to half a billion of investment properties and among my clients are 45 millionaires and multimillionaires we helped them achieve through education and coaching.

That was all in Ontario btw until last year, when the writing was on the wall, cash flow was no longer an option for the everyday investor, governments of all levels and let it be known we are not welcome here and the opportunity for better cash flow, diversification in the USA and avoiding the LTB/RTB was available along with scalable mortgages in the USA.

Sadly what’s slowing down many many Canadians investing south is they are holding pre and new construction condos. The options aren’t great especially of those who lost their jobs. I had a new condo investor share with this past weekend his beautiful 900 sq.ft. condo with a lake view he paid $900,000 only rents for $2,400 after multiple cuts in his original asking of $2,800.  After hard costs: mortgage, taxes, insurance he is negative $2,000 per month before vacancy, leasing fees, bad debt, repairs and maintenance so in reality his negative cash flow is much much more.

Not all Canadian real estate investments are bad. It’s just harder to find those markets and investors who can execute. If you listened to Andrew Hines’ final podcast, I’m experiencing the same. I’ve invited gurus onto my show and it’s crickets only to find out later through the news or grapevine they’re having financial troubles.  

Even though those gurus are still out there raising capital, borrowing hard loan money aka private borrowing, selling courses and coaching etc,… they’re turning down the exposure from my podcast.  This is the truth about real estate investing show and what you my 17 faithful listeners may not know is before we record, I do ask guests if they’re ok to discuss losses, both what’s in the new and not in the news (I reference check guests of this show by contacting people I know they have engaged in business with the potential guest).

If you are out there reference checking folks, feel free to check if they’ve been on my show before, that’s not an endorsement by the way nor a condemnation, we’re not perfect and we have added show notes linking to past guests who are being sued or bankrupt or in the news.  If they’re good people, encourage them to guest on my show! I’m always happy to interview good investors to, if nothing else, shine a light on them and crowd out the bad operators.  

Why a Top Business/Stock Valuator Is Investing in Real Estate with Adam Johnson, CPA, CA, CBV, CFA

Speaking of good people, today’s guest is my good friend and past client, Adam Johnson, CPA, CA, CBV, CFA—who, at the time, was my youngest client and didn’t have as many letters behind his name. Adam’s not your average CPA. He’s also a Chartered Business Valuator CBV and Chartered Financial Analyst CFA, making him one of less than 100 people in Canada with all three designations. He even ranked #1 in the country on his CBV exam. But what really sets him apart is his hands-on experience with one of Canada’s biggest investment banks, where he analyzed stocks and worked directly with equity traders which prepared him nicely for a long-time career in business valuations.

Now, Adam’s expanded his investing to the U.S. after Ontario deals no longer made sense, and he’s the founder of Synthesis Valuations, providing top-tier valuation reports for everything from mergers to shareholder disputes. 

Note we recorded this episode before the most recent hurricanes Helen and Milton devastated Florida the deadliest since Katrina in 2005, each with a combined $100 billion is losses, $50 billion each. For context, that major storm Toronto had in the summer caused $1 billion in damage, these hurricanes were 100 times worse. My thoughts and well wishes are with Florida. Link to source: https://www.cbsnews.com/news/helene-milton-losses-50-billion-each-hurricanes-rare/

For your business valuation needs, Adam’s company website: https://synthesisvaluations.com/

What’s someone with so much stock and business valuation skill and experience doing overweighted as a real estate investor? Let’s ask him!

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

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

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.

Reining in Canada’s population growth. Rents are flat across Canada as International Student interest has cratered. How does that affect your investment hypothesis? Short-term rentals part 2 with experts Spencer and Ashley. “Marry Sooner, have more kid, ignore costs says uber capitalist Kevin O’Leary, a big announcement and so much more on this week’s Truth About Real Estate Investing for Canadians!

My name is Erwin Szeto, your host and producer since 2016 and 300 plus episodes later.  Thank you to my listeners and the kinds words you shared and thank you for your updates and personal truths about real estate investing.  I did not know so many of my fellow podcasters are no longer releasing new episodes.  Many of them are my friends and there are some I believe should stop, a simple google of the names of folks who borrowed tens and hundreds of millions and going bankrupt will let you know who gave them their platform, promoted them and some even earned commissions.  

Always follow the money, understand how folks make money and factor that into your screening process. 

Did you know that the front runner to become our next Prime Minister of Canada said he would reduce our population growth to match the growth of new homes built and factor in health care access and jobs.  Makes sense no?

Source: https://www.cbc.ca/news/politics/poilievre-immigration-cut-population-growth-1.7308184

A couple problems, housing starts across Canada are way down as building and development costs are extremely high.  New construction sales are low as the market needs to digest the historic number of new construction condos, mostly small ones which could take 1.5 to 2 years per Benjamin Tal, deputy Chief Economist for CIBC.

Link: https://x.com/MikePMoffatt/status/1837899997905301511

Combine that with flat rents across Canada as demand from International students have cratered:

The federal government wanted a 35% reduction in the number of International students and the stat I’ve seen is applications are down 45%.

The Globe and Mail is reporting google searches for student housing near universities in Waterloo, Hamilton and Kingston are down 46-55%.

https://www.theglobeandmail.com/canada/article-university-students-housing-rents/

Personally, my investment hypothesis is forever changing from experience and what real estate experts are telling me about their own investing.  My hypothesis is focussed on cash flow, long-term growth in rents and prices.

For a local investor, knowing that rents are flat in the current market and reduced demand from international students and immigrants, what do you think will happen to your cash flow and price appreciation long-term?

I still have a number of properties in Ontario, Canada so I’m concerned if lowering interest rates and lack of supply will push my prices up.

With the economic and immigration landscape the way it is, should a Canadian investor invest their hard earned money into local markets? I know I wouldn’t deploy more capital into long-term rentals.

Legal short-term rentals and hotels, that’s another matter as small Airbnb operators get squeezed out by governments which is why we have Ashley and Spencer back on the show but before we get to them…

Can you believe Kevin O’Leary said “Take my advice. Get married sooner and have more kids. Family is everything! That’s what it’s all about. Do you agree?”

Kevin said so on his social media, I’ve linked to the Instagram post. Source: https://www.instagram.com/p/C_6eDr9NgRq/

Kevin explains how he wishes he spend more time with his kids where they were young and I couldn’t agree more.  I’ve interviewed hundreds of successful entrepreneurs and investors almost all of them would agree with Kevin how parents never get back those wonderful years of development while kids are young.

My decision to make my portfolio more passive by delegating to SHARE in the US frees me up to spend more time doing what I enjoy, my work in helping hard working Canadians’ journey towards financial peace and time with my wife Cherry and the kids. All the while still being a direct owner of what I consider the best asset class: real estate while maintaining 100% control while someone else does all the heavy lifting.

SHARE’s business is exactly what I envisioned for my own professional services to my clients: to make real estate investing as operationally easy and passive as possible in Ontario but that’s just not possible with affordability so bad, one can’t even cash flow enough to afford property management combined with rent control and tenants having all the rights.

Now I’ve got some big news to share that I’m incredibly excited about! As you know, my real estate journey started all the way back in 2005 as a novice landlord then I got serious in 2008 when I first began formally learning about investing. Since then, I’ve always had my eye on the landlord-friendly USA as an ideal place to invest—better cash flow, more stable tenant laws, etc. But the challenges of getting financing, building a power team I could trust, finding the right deals, and managing properties from across the border kept me from jumping in.

Well, I’m thrilled to announce that I’ve recently taken on a new role as Head of Business Development in Canada for SHARE! This partnership is a game-changer for anyone looking to invest in the US market like I’ve always wanted to. SHARE has eliminated all the hurdles that once held me back. Financing? We have the contacts, one of them emailed me today they have 4,500 lenders signed up ready to lend to Canadians. Deal sourcing including off-market? Check. Ongoing property management? We at SHARE can handle it all.

With SHARE, I get to be a passive US landlord. I’ve been a landlord for 20 years, I don’t enjoy it and will gladly pay someone else to do it while I still keep direct ownership, full control, and 100% of the equity. It’s a dream come true for me as control and 100% equity was how 45 of my past clients made $1 million or more investing in real estate, and if you’ve ever been interested in US real estate, now’s the time to take a serious look.

If you’ve been waiting for the perfect moment to invest in the US but didn’t know where to start, this might be it. 

The best please to learn more is: https://iwin.sharesfr.com/ or our US Investing workshop coming up Oct 19th or my free training even in late November.  The writing is on the wall, I don’t see a future for everyday investing in Canada when the deals we’re finding at SHARE are so much better.

50+ Short Term Rentals Part 2 With Spencer & Ashley

On to this week’s show, a topic I’m a big fan of, avoiding long-term rentals in tenant friendly provinces like Ontario hence we have Spencer and Ashley Giles back for round 2. If you didn’t already know, vacation rentals are a business, 24-7 for some like Airbnb managers like Spencer and Ashley Giles who are back to share more, dig deeper into the strategy including operating and owning in the USA. 

Their management portfolio is 50 properties at time of recording spread across much of Ontario and Up State New York so they have a lot of diverse experience to share.

To follow Spencer and Ashley Giles, their website is https://spencerandashley.com/ and https://www.instagram.com/spencerandashley/ on Instagram.

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

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

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.

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

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

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.

A broken Canada? No way. We’re richer than ever but tell that to young people who don’t have rich parents, living on their own paying rent. $1,800 for a basement apartment? Welcome to the Truth About Real Estate Investing Show for Canadians.  We’re a little podcast that started in 2016 with well over 300 episodes, each an hour long and these days, we have an unpopular opinion depending on where you stand.  

Friend of the show, Scott Dillingham, owner of Lendcity who can co-broker as in accept referrals from other mortgage professionals to aid their clients in obtaining US mortgages with US lenders beyond the Canadian banks has been signing and onboarding over 20 agents and brokers.

I spoke to some of those veteran mortgage agents and one of them said “I see no business case to invest in a Canadian investment property unless the parent is buying a student home for their kids to go to college or university for ten years”

What I love about mortgage professionals is they know numbers hence they’re fans of US income properties over Canadian ones and I’ve yet to have anyone want to debate me I’m wrong.

Sure, they’re is good business to be done flipping, wholesaling, and developing which are active businesses, hardly passive investing but I’ve yet to have anyone disagree with me that US long term rentals are better than Canadian ones.

For that reason, I have a bad feeling for investor focussed real estate realtors and mortgage professionals going forward.  My advice to my clients is to diversify to the US, hold, maybe sell some Canadian properties if they’re unable to hold them or they no longer serve them.

I could be wrong but based on the information we have right now… for example, my colleague Tim Hong posted a reel to his instagram showing the difference between tenanted, 3 bedroom properties and vacant or owner occupied 3 bedroom properties in Kitchener-Waterloo.  Tenanted properties were selling for on average $60,000 less than non-tenanted properties and took 65% longer to sell: 38 days on market vs 23.  

Link: https://www.instagram.com/p/C-LRvqEvWyf/

This current market is telling us they value rental properties less than regular properties.  We are seeing the same even for vacant, legal duplexes in Hamilton.  My investment thesis was the house with the basement apartment aka mortgage helper would be the most desirable property as it would be more affordable than a single dwelling home.  Live in one unit, rent out the other but no, the market doesn’t want to be a landlord.

That may change as rates are cut further but the math is the math. Income properties in the USA have better numbers with less tenant risks, no rent control, no landlord tenant board.  To me, the more Canadian investors get educated on how easy it is to invest in the USA, the better so they can avoid the troubles I’ve had from three basement floods and four visits to the Landlord Tenant Tribunal, easily one of the most depressing places to me. 

And I can’t wait to lead the journey for many.  Speaking of, we are back on September 17th with an all new Free Training, a 101 of real estate investing to now incorporate the best practices of both local real estate investments vs. USA.  I’ll got more into detail about the house I bought in San Antonio, Texas for $120 per square foot or $265,000 for 2,200 square feet and $2,300 rent per month.  I’ll share my latest from my economic research including which market we’ve taken off the list for top areas to invest in which will again be an unpopular opinion but we can as we at SHARE can service all of the USA so we may cherry pick the best markets for the best returns.

“A Broken Canada? No way. We’re wealthier than before the pandemic…”  Some brighter news as per the headline of a recent Toronto Star article.  House owners and those with stock portfolios are generally better off than before the pandemic in terms of net worth.  I have no argument there. Where I disagree is in every conversation I have with someone from the real estate community or anyone younger than me with limited assets. They all complain about the lack of affordability and how they can make more money and pay less tax elsewhere.  Usually the USA or Dubai.  For lifestyle, I hear a lot about Mexico, Costa Rica or southern Europe.  The grass may seem greener on the other side but the truth is, we all know talented people who are investing outside of Canada, preparing to leave, or have left. Am I leaving? Just my capital.  I doubt my kids stay in Canada after University but they may have to leave for university as it’s so competitive to get into our excellent programs here while spots are reserved for international students.

Sadly, I won’t be surprised if my kids have to be international students somewhere outside Canada.

College Instructor Invests in Real Estate: Duplexes, ABNB, 11 Plex

Speaking of education, we have a college instructor on this week’s show! Brian Gordon is an old friend of mine from years ago, he works full time for the largest appraisal company in Canada, if not North America in Management.  Prior to that he worked as a Senior Property Tax Analyst for one of Canada’s largest REITs, if not the biggest.

Linkedin: https://www.linkedin.com/in/brigor/

Brian has been methodically growing his own real estate portfolio over 7 years consisting of duplexes, a AirBnb in Blue Mountain, more recently an 11 plex development where he’s adding two additional units.

As mentioned Brian is the course creator and instructor of “Real Estate Investment Strategies” at George Brown College, a comprehensive, yet affordable course which is one of the big reasons why I wanted him on the show.  Real estate investing is largely about return on investment and that includes one’s education.  This course is only $392.24 for 20 hours including private 1 on 1 consultation time with Brian.  What an absolute steal.

Link: https://coned.georgebrown.ca/courses-and-programs/real-estate-investment-strategies-online

Needless to say, I thoroughly enjoyed recording this episode for you all to learn Brian’s tips and tricks so we may all improve our own businesses and you’ll want to hear about where Brian’s next investments will be and his views on Canadian opportunities.

Please enjoy the show!

Follow Brian on Instagram: https://www.instagram.com/acquiring_wisdom/

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

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

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.