Greetings friends to the truth about real estate investing show, I’m your host since 2016, Erwin Szeto from west of Toronto and landlord since 2005.

We have an excellent expert guest with 12 apartment buildings averaging 20-30 units each building plus he just acquired two sizable properties in Alberta and you’ll want to hear why.  Mike’s journey of immigrating to this wonderful country at the age of 10 with his family from Poland… when you hear what Poland was like for Mike growing up.. Needless to say Mike Beer has done very very well for himself.  

But first, I’m not going to lie, I quite enjoyed this past week while the kids are at overnight camp.  They are up in Muskoka at a rustic camp.  They sleep in a cabin without air conditioning but they do have a bathroom the campers are responsible for cleaning.  

There’s no smart devices allowed so no Ipads or cell phones let alone laptops.  Just good old fashioned camp activities like arts and crafts, canoeing, swimming, they have motor boats so my son even went knee boarding and love it.  This is the kids’ now fourth year of overnight camp so for next year they’ve asked to camp for two weeks.  Cherry and I are proud our kids can rough it a little bit including 30 mosquito bites and want to go back.  Parenting win, my son’s camp counsellor said he was the best behaved camper in his cabin. 

Needless to say we’re proud of our kids, our investments of time and effort are paying off and we’ll continue to invest including an RESP of at least one house each in the USA.  Something less hands on because the truth about real estate investing is, in my experience, there are a whole lots of adult children who want nothing to do with their parent’s Ontario rental properties.  The younger generations want more balance, less stress, along with much better numbers and less risk, that’s why I’ve divesting locally and buying American.

What did Cherry and I get up to while the kids were away? Would you believe I golfed more this week than any other week this summer? On Tuesday I went boating with my Entrepreneur’s Organization mastermind group.  Everyone had a turn at water skiing but me, I never grew up with a family cottage, never learnt and feel no burning desire to when being dry, booting around Friday Harbour, conversations with my boys is plenty stimulating.  

In breaking news, my friend Moosa sent me the article, as reported by the Globe and Mail, yet another real estate club organizer, this time Daniel St. Jean of The REITE Club, an organization co-founded by Daniel has a stop order from the Ontario Securities commission. From the article, Daniel has raised more than $25 million in promissory notes.    

https://www.theglobeandmail.com/real-estate/article-osc-investigates-realtor-amid-stalled-real-estate-projects/?login=true

Kyle Ford whose company manages $150 million in private mortgages said on this show, “promissory notes are a bad word” at his company.  Friend of the show Ron Butler is extremely against the use of promissory notes saying they’re worth less than used toilet paper.

Me personally, I like to lean towards being conservative hence I don’t private lend nor borrow. It’s scary times for folks who have privately leant on complicated repositioning and development projects…. I’ve heard too many stories from friends who lend hard money with rates in the teens only have their borrowers not return payment and ghost them. To me there are better options discussed with past guest of this show like Tim Collins and Calvert Mortgages. I’ve posted links to both episodes in the show notes.  In the Calvert mortgages episodes, near the end, I asked how my guests how they personally invest their own money for a much more diversified and secured investment than most private lending options.

https://www.truthaboutrealestateinvesting.ca/exited-real-estate-for-stocks-10k-mth-for-financial-freedom-with-client-tim-collins/

https://www.truthaboutrealestateinvesting.ca/private-lending-update-losses-from-a-downmarket-with-calvert-mortgages/

12 Apt Buildings, Selling ONT, Buying AB&USA With Mike Beer

On to this week’s guest!

Mike Beer is is an owner of a real state investment company Mike Beer Investments. They have developed an investing system that has been working for well over a decade and invest in apartment buildings in Canada. His mission is to enable each of his investors to provide their families with the financial future they truly deserve. In the past he was a professional ski instructor and scuba divemaster. Now he focuses on coaching for charity, ice water plunges, health, and loves personal self development.

Website to contact: https://www.mikebeer.ca/

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.

Sharing a stage with Brandon Turner of Bigger Pockets Fame at the Aligned Life Conference, lessons from losing one’s life savings, telling it like it is with often censored, former real estate coaches Marty & Amanda Gordon.

Greetings from cottage country my fellow truth seekers. This is the Truth About Real Estate investing show, I’m your host, producer since 2016 and over 300 episodes where we tell it like it is.  

In my experience, real estate when done right is a sure path to getting rich slowly. Unfortunately there are those who have challenges scaling and executing which to me is no surprise.  I’ve shared on this show several times how someone I know had a pretty great portfolio of 50+ properties in Hamilton but a series of unfortunate events, his car getting broken into and rent cheques getting stolen (this is back in 2007 when post dated cheques was the most popular means for paying rent), he was getting in over his head with so many renovation projects on the go: mostly cosmetic as those days, you could cash flow with single family, these weren’t basement apartment conversions, the credit crisis hit, the investor went bankrupt, the properties went to power of sale. His investors got wacked and investor buyers at the time were picking up deals if they had capital and credit.  I personally know many who were affected which is why we coach our clients to be both offensive and defensive with their portfolios, to not over leverage including next to no private money.  B lender money on occasion as a short term solution but no hard money loans like promissory notes in our close to half a billion in income property transactions.

Then this new wave and I literally mean new investors, folks with maybe five years experience who failed to learn from history.  This Robby Clark who’s all over the news with Dylan Suitor and Claire Drage.

https://www.theglobeandmail.com/canada/article-how-former-child-tv-star-robby-clarks-crumbling-real-estate-empire-has/

They were operating in small markets, bigger volumes, expensive hard money, duplex conversions are totally doable but the timelines and budgets can’t always be predictable hence my clients almost never did more than one conversion at the time. Plus these were small cities, finding quality contractors would be difficult and liquidity would be poor. As someone who despises risk, I wouldn’t recommend any of this to my clients.

I had a bad feeling about Epic Alliance, I don’t know Robby Clark or Dylan Suitor let alone their investment strategy.  The stuff written about them in the news is just sad as well, especially all those who invested with them via promissory notes.

On a positive note, I’ll be presenting at the Aligned Life Conference alongside huge names such as Brandon Turner of Bigger Pockets fame, Dan Martell, hosted by Caleb West who’s a super cool guy with tons of experience in commercial development, management and construction.  Caleb will be next week’s episode guest and he’ll share his journey to the Aligned Life Conference and what role real estate investing played in his own family and allowed previous generations the freedom of time to spend with their kids and grandkids. For those about intergenerational wealth, you’ll like this episode!

20 Years of Investing: Duplexes, to Apartment Buildings, Now A REIT with Amanda & Marty Gordon

But first we have my friends returning to the show, Marty and Amanda who’ve been renovating and investing for nearly 20 years, Amanda Bouck has managed properties for nearly 20 years, Marty her husband is a carpenter by trade and personally much of their 15+ duplex conversions in Guelph.  They are a power couple: they get numbers, execution, cash flow and hate vacancy. They drank the same Kool Aid I did. They’re reward is a country acreage and building the custom home of their dreams they’re too humble to talk about with all the gurus out there flaunting Rolex watches, Lamborghinis, private jets and yachts.

Amanda & Marty scaled up as well in small multis likes six plexes, small apartment buildings to their current project, both a REIT: real estate investment trust called Legend Real Estate Trust and a 60 unit building in Waterloo.

Amanda and Marty are here today to share their experience including coaching, retiring from coaching for possibly the biggest real estate education company in Canada.  As always, we share both the negative and positive of real estate investing including all the losses going on in the community, over leverage with expensive hard money loans and their own investment philosophies where none of their investors have lost any money.

The honest truth about real estate investing is, speculative investments can work until they don’t and also I don’t endorse any product or offering of Marty and Amanda nor do I receive any compensation from Marty and Amanda nor from their businesses. This episode is for educational and entertainment purposes only.

Please do your own due diligence. If you read the article about Robby Clark, you see how some of the property used to secure financing had fires and were torn down by the city. If any lender, broker, investor had simply driven by the property, they would have known the deal was no good. 

For my house in San Antonio, Texas I have a termite inspection, home inspection including pictures and video walkthrough, a quote from the property manager for renovations and maintenance. My cousin is in San Antonio next week for work and doing a drive by.

Diligence people, trust but VERIFY. That goes for all guests of this show. I do my best hence Epic Alliance and Robby Clark never made it on this show or any of my platforms.  I learnt my lesson from Paramount Equity.

Back to this week’s guests, Amanda and Marty, just to note, they have been censored on other platforms and Facebook groups for trying to warn people about gurus losing other people’s money. They going to offend some so be warned.  

www.LegendRealEstateTrust.ca

Amanda@Legendinvestments.ca

Marty@Legendinvestments.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.

We firmed up our Texas income property, is residential investing in Canada dead? A dozen plus triplex conversions in Collingwood, ON & launching a TV show with Kelly Caldwell.

Welcome to the Truth About Real Estate Investing Show my fellow Canadians! I hope you’re all enjoying a hot summer but you know what’s not hot? Condos.

I spoke to one condo investor last week who’s been abandoned by his Realtor who made all sorts of promises: the investor bought two condos pre construction with the intention of selling one via assignment the market and using the profits to pay down the mortgage of the 2nd, the Realtor promised to rent out the condo as well.

We all know how the condo market has fare in Toronto or Vancouver… not well. So now this investor who also happened to lose their job also now carries two condos that have negative cash flow $4,000 per month.

You know what never made sense to me about preconstruction condos? Was how the cost per square foot was higher than existing condos.  So often I would see pre construction condos being sold for $1,600 per square foot when used condos were $1,400 square foot. As a professional real estate investor, I invest for value, not to speculate. If buying new, one would have to speculate the price of resale real estate goes up more than $200 per square foot to make money.  The investment model never made sense to me hence we kept our clients away from pre construction condos unless there was a personal reason to own them.

For investment though? Double land transfer taxes in Toronto and tenant friendly laws and especially after Canada investors learn how technology has made investing in the USA so easy to be a US landlord, to directly own investment properties. If I could show every pre construction investor the benefits of a US single family house rental via SHARE, I don’t see why an investor ever buys a long term rental condo ever again. 

I was going to say maybe in Calgary, AB but ever the President of REIN, Patrick Francey doesn’t think it wise so.  You know another truth about real estate investing for Canadians? I’ve yet had a real estate professional disagree with me over diversifying to the USA. I once had a laugh with a buying agent for one of my properties, he was asking me about investing in the USA as he too is interested, we chatted, I shared financial projections and how landlord friendly certain states are, before I snapped back reality, I needed to sell my property so I could invest in the USA and advised how my duplex in Hamilton was a better investment to which we both laughed.

Last week we also hosted a virtual tour of income properties in the USA.  I showed internal and external walkthrough videos by home inspectors, I shared the economic fundamentals of the markets my clients and I have purchased in.  Special guest, friend and client Derek Wormsbecker (https://www.instagram.com/derek.worm.mortgage/) shared about his experience buying an infill, new construction house, 1,250 square feet, 3 bed, 2 bathroom, 2 car garage for $176,000 and rented it out for $1,425 per month. That’s a 6 cap rate that will cash flow with less than 35% down payment plus a commercial mortgage, the ideal mortgage for scaling portfolios.

If you’d like to peruse deal like Derek’s in Little Rock, Arkansas simple go to my website iwin.sharesfr.com, create a free account, browse real current and past deals, and book a call with me should you like to discuss. Again that’s iwin.sharesfr.com if you’d like to learn how easy it is to be a US landlord, maintain 100% ownership, while letting SHARE do all the heavy lifting.

Converting a Dozen+ Houses Into Triplexes with Kelly Caldwell

On to this week’s show! This week’s guest is the lovely Kelly Caldwell, who has converted over a dozen single family houses for basement suites AND garden suites. Together with husband Jeff Caldwell, they’ve become leaders in their community, Collingwood, ON filling in the missing middle working closely with local government as such they were invited to be a part of a new HGTV inspired series called Home Suite Home where viewers can follow along as Kelly and Jeff navigate the world of accessory suite financing, design and construction.  You can catch them on Rogers Cable TV this fall as well as Youtube: https://www.youtube.com/@itshomesuitehome.

Kelly’s journey is a wild one.  She was barely an adult when she was orphaned as Cancer took her father, her only parent away leaving her as the eldest sibling of two teenage brothers. 

Kelly shares about her remote investing way up north, how she managed the renovations, Kelly shares the numbers around a typical basement conversion and garden suite.  For the first time a guest talks about the benefits of polished concrete floors for both heating and finish. Fascinating stuff for real estate nerds such as myself.

If you can’t tell, Kelly is no stranger to hard work so please enjoy the show!

Instagram: https://www.instagram.com/itshomesuitehome/, https://www.instagram.com/the_dash_investher/

Realtor website: https://caldwellrealestategroup.com/

The dash poem: https://noahwatry.medium.com/the-dash-poem-by-linda-ellis-33fe4d54a1b4

ADUSearch: https://adusearch.ca/index.html

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.

New construction six plexes in Windsor, Ontario, tiny house communities, the status of real estate and investing in Canada, solving for happy, AirBnb investing: US vs. Canada, where is better, my show guest and I disagree. I’ll let you, my 17 listeners decide.  All this and more on the Truth About Real Estate Investing for Canadians!  What once was ranked #81 on all of iTunes in the Business category but much has changed. 

Real estate investing in Canada has really fallen out of favor.  I see it at work, my own listings, on social media: all the condo bulls have gone either quiet or pivoted to coaching. I feel so bad for the agents I see paying for paid advertising of new construction condos while there are nearly 10,000 condos available for sale right now per John Pasalis of Move Smartly.

Condo investors are rushing for the exits, unfortunately if you bought a small condo, there’s lots of competition and very few buyers.

My friend in Toronto with a 1 plus den however immediately rented his condo AND had three offers to purchase.  I’m not a condo investor but I’ve known for over a decade that the 1 plus den condo is the poor person’s two bedroom or the rich persons’ two bedroom so if you’re going to invest in one, make it a plus den as even in condo winter, the best practice is still working.

Housing inflation continues: my house insurance on my remaining portfolio in Hamilton, each one just went up $5-700/year. I’m not looking forward to rental licensing adding another $6-700. Our property tax is going up only 5.8% but they’re deferring a bunch of stuff so they only kicked the can down the road to be dealt with in the future.

This is why when a Canadian not from Alberta is pitching me a deal I ask them if their projected cash flow improves over time or gets worse? Between rent control and inflation.

But bless those who continue to create housing supply. I have an idea how difficult it is and we certainly need more of it.  It’s the only way prices will come down like we’ll see in small condos in Ontario and BC.

I just returned from Windsor, while I was there the sale of my daughter’s house closed yay! Milena Simsic and her business partner Brandon Finn were kind enough to host me as their speaker. It was a pretty sweet event. $20 admission got you stone over pizza dinner and there was tons of leftovers as funny enough, Milena and I don’t eat pizza LOL

For the first time ever, I gave a presentation with no power point slides, just a white board I borrowed from my office and drew a T chart: Canada on one side, US on the other and categories such as mortgages, landlord rights, cash flow.

The feedback was excellent, that you to everyone for coming and saying hi: Cody, Louis, Kyle, Matt, Kevin, Jonathan, Savio, and Mike Seal.  Thank you again to Milena and Brandon.

If you have not listened to my podcast interview of Milena Simsic: https://www.truthaboutrealestateinvesting.ca/how-a-nurse-became-a-millionaire-and-top-1-realtor-with-milena-simsic/

We really dug into her story and journey and if you want to be young and successful, she’s pretty much laid out hers on the show.

“Solving for Happy.”  I just finished Mo Gawdat’s book. I can’t recommend it enough thought caution to parents, it’s tough to listen to at times. Mo reads the audio book himself so each time he revisits his son’s accidental death he gets choked up and coincidentally someone decides to cut onions wherever I happen to be when it happens.

Some of the nuggets include accepting death, no amount of money will make you happy, do more of what makes you happy, recognize what doesn’t make you happy and do less of if.  In the absence of evidence based decision making, go with happiness.

I can’t tell you how much my work makes me happy I’m enjoying educating and sharing with Canadians about how much better and easier it is to be a US landlord and here locally while I get paid and have equity in SHARE.

Which reminds me, I’m hosting a free, virtual tour of USA income properties including the one I’ve conditionally purchased in Kansas City, MO for 1200 sq ft detached, 3 bed, 1.5 bath. Register here: https://us02web.zoom.us/webinar/register/5417189936607/WN_EQ_jWXpESF-r77oLzd28eg

Off market, BRRRR: $157,500 to buy, $25,000 renovation, equity uplift of hopefully 10k. $1,495 monthly rent. 5.9% capitalization rate which in other words is operating profit yield before financing costs.  Cap rate is a must know for all sophisticated investors because no one can tell you what your cash flow is because everyone’s financing is different. Pros know cap rate, it’s the lingo of our industry.

Link for full definition: https://www.investopedia.com/terms/c/capitalizationrate.asp#:~:text=Understanding%20the%20Capitalization%20Rate,cash%20and%20not%20on%20loan.

Managing Six Figure AirBnBs in Canada & USA With Spencer & Ashley

 On to this week’s show, as always, we try to focus on cash flow the young, lovely couple Spencer and Ashley Giles are Niagara- based real estate investors with a shared love of travel (they are literally vacationing in Nashville, TN right now, hopefully they find an AirBNB investment there as I hear Nashville is awesome), fitness, and dogs. They started investing in 2018 and have since expanded their portfolio to 13 units with a mix of short- term and long-term rentals. Spencer and Ashley co-founded Travelluxe Inc. in 2019, a short-term rental management company, which currently manages over 45 units across Canada and has expanded to the USA. We go into detail about that on the show including the numbers.

They were able to leave their corporate jobs in 2021 and 2022 to focus all their efforts on their businesses. Their love for travel has brought them all around the world where they are able to mix work and pleasure by creating systems that allow them to be location independent. 

Instagram: https://www.instagram.com/spencerandashley/

Website: https://spencerandashley.com/

Ellicottville Airbnb: https://www.airbnb.ca/rooms/53721048?locale=en&_set_bev_on_new_domain=1719192849_EAMTU0NWYwZTcwNj&source_impression_id=p3_1719192850_P3OWaZ8QQzOrJpJd

To Listen:

HELP US OUT!

UPCOMING EVENTS

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.

What a week: we had a rate cut, I sold my daughter’s house, I got into a heated disagreement with another agent who doesn’t understand contract law, and hosted a sold out US Investing Workshop. Our best ever in my humble opinion.

We also have a great guest this week. What can we say about Cody Yeh other than he’s a young hustler. In a good way! He used to work as an Engineer for Honda in Alliston, invested in real estate, built and AirBnb’s a garden suite, quit his job, started a stock option education and coaching company, built and Airbnb’s a massive garden suite in Bowmanville, Ontario.  He’s lived all over Ontario now he’s bought an apartment building in Ohio.

All this and more on the Truth About Real Estate Investing for Canadians!

How much fun is this real estate market?  

We finally got a rate cut of 0.25% as the Bank of Canada is finally signalling the economy is as weak as everyone knows, one of the weakest among the developed countries, there are more condos being listed than ever before, local investment buyer activity still seems lows while my business in the USA investing in single family houses is going quite well.

I literally met with my clients on the weekend Mason and Melissa, not their real names. My team had been helping them find a duplex in Welland, ON, a hot spot for many Ontario investors in the $650,000 range that would rent for about 3,400-3,500 per month.

Mason shared how he didn’t feel right about the investment until he saw what we are doing in the US with SHARE and has since purchased a perfect BRRRR project off market via a wholesaler SHARE has a relationship with, the wholesaler actually wanted the house for himself as this house in Atlanta was a projected 6% cap rate which is a very rare find. In a single family house nonetheless.

If you’re not familiar with cap rate that’s totally normal, it’s short for capitalization rate, a common metric for commercial real estate: apartment buildings, retail, office, and industrial.  

It’s simply your rent minus operating expenses like repairs, maintenance, property management, bad debt, property taxes, insurance but before mortgage payments and income taxes. This is called net operating income or NOI for short.  Keep in mind, many listings leave out expenses for I don’t know what reasons like bad debt, the tenant not paying you, property management, repairs and maintenance. I literally reviewed projected financials for a duplex in Brantford that quote/unquote cash flowed over $700/month so I dug into the numbers and yup, omitted were property management, repairs and maintenance, bad debt and vacancy allowance.

Now divide the NOI by the purchase price AND the initial renovations 

You as the sophisticated investor need to be able to read pro forma, aka future performance financials. One can youtube better explanations with visuals and learn how to compare. Don’t let someone dupe you into paying top dollar for something with incomplete financials.

At the end of the day, Mason and Melissa got a sweet deal as I don’t know where you can find a six cap in a large, economically diversified city like Atlanta, GA in Canada.  For context, if Atlanta, GA was in Canada it would be the 2nd largest city based on great area population.

Real estate investing in the USA simply makes sense to have the majority of the rights. For example, in the State of Georgia, the lease agreement may set reasonable limitations on the number of occupants during the tenancy.  Pets and smoking can be restricted or banned in the rental agreement.  In practice, some landlords charge extra rent for each pet depending on size.

In Ontario, I have no such rights.  I literally had a tenant, a single guy moved in, a trucker so he made great income and wouldn’t be at the house much, the perfect tenant. Then his girlfriend moved in and bred puppies in my duplex.  My poor basement tenants rightfully complained about the smell and noise but legally, I couldn’t do anything about it.  I suggested to my basement tenants to call the city and police to complain.

The tenants with the puppies even left for a day, leaving the puppies in the house to cry all day and night, defecating all over the place and disturbing my poor basement tenants.

Versus in Georgia, my lease word be worded to allow me to charge for additional occupants and pets and limit the number of both.

Hence the reason I’m selling off a portion of my portfolio to reduce my stress, improve cash flow.

Speaking of, my daughter’s house is sold and it closes before the June 25th deadline before capital gains inclusion rate goes up on corporate owned investments.  Doing so saves me close to $50,000 in income taxes.

The sale took me three weeks. I was honestly expecting a better market since everyone knew the rate cut was coming, my duplex is legal, move-in-ready, vacant and staged.  As good as it gets but the buyer activity was so slow.  Showings were slow, I only received three offers, all I considered low but thanks to my 14 years of experience being an investor specialist Realtor and having studied negotiations extensively, I stood my ground on my terms and got quite close to it.

Funny story, the agent who brought the winning offer did his due diligence on me. He knew me as Mr. Hamilton from his REIN days.  The importance is my branding gave him and his clients a lot of comfort over the quality of the house they were buying.  This mattered because the City of Hamilton had been hacked so I can’t easily get my zoning verification to prove the legal use of my daughter’s house, a legal two family home or as most call it, a duplex.

I did have my permits, proof my permits were closed, ESA certificate, proof of insurance for a two family house but my word and reputation is what sealed the deal.

Now that I have sold four houses from our portfolio, I have some capital to deploy down south. We still have a significant amount of real estate in Hamilton and GTA so we’re still well poised to benefit from appreciation but not so much cash flow so we are refocusing my search for US income properties with better yield and cash flow so my new focus will be on Memphis, TN, Birmingham, Alabama, Kansas City, MO, and Little Rock Arkansas.  

Basically, 6 cap rates and up. I can’t wait! To start researching each city 🙂

From International Student to Stock Option Investment Coach and USA Apartments With Cody Yeh

On to this week’s show!

Cody Yeh arrived in Canada at the age of 18 on a student visa, initially lacking knowledge in income and wealth creation. Over the past 11 years, Cody has undergone a significant transformation, evolving from a student to a full-time project manager, and eventually to a financial coach, real estate investor, and stock options investor. The skills he acquired during this period enabled him to leave his full-time job at the beginning of 2020. 

Cody now has a stock options investing program and he’s buying apartment buildings in the USA.  It’s quite the journey.

To follow Cody, his website is his name Codyyeh.com

Please enjoy the show!

To Listen:

HELP US OUT!

UPCOMING EVENTS

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.