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
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Disclaimer:

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