School Math Expert With 22 Doors in Windsor, ON, W/ Kyle Pearce

**Transcripts are auto-generated.

 

Erwin  

Hello, welcome to the truth about real estate investing show. My name is Erwin Szeto. And it’s only two weeks until the wealth hacker conference. The timing couldn’t be better for an event like this on how we manage this upcoming economic storm, winter is here or it’s coming economically not the season. This is only the beginning. And we will be sharing at the conference how the world is changing newer investors plus entrepreneurs who are fearful as they should be. But like last time during the Great Recession, also known as the credit crisis was the last and best time to make a fortune and people did regret it to them by more. This cycle will likely be no different. So get your tickets to the wealth hacker conference November 12. At the Toronto Congress Centre near the airport for one day only event, wealth hacker.ca for tickets. Don’t forget the www www dot wealth hacker.ca. For tickets, buy discount code for you my favourite 17 listeners is the five letter word truth. Very easy to remember, hopefully, I’ve asked each of our expert speakers to include in their talks what they’re doing with their own hardware investment dollars. And when timing is pretty important these days. Me personally, I’ll be sharing how cheering I plan on dusting off an old strategy that’s fallen out of favour in the last couple of years, or dusting it off, as I believe the ideal investment property has changed in this current inflationary economy. And we plan on implementing the strategy once the conference is over. I’ll be sharing more detail about it at the conference. So hope to see you there Saturday November cloth all day for one day only wealth hacker.ca for information. Don’t forget the w’s WWW dot wealth hacker.ca. I trust everyone have a great week and weekend. As I’m recording. It just came off a short week. Thanks to Thanksgiving. My brother’s wedding was that weekend, I gave a talk to Elizabeth Kelly’s event as well. So kind of glad that weeks over. My brother’s wedding was delayed for two years thanks to the pandemic. But it finally happened and it was awesome. It was so great to see so many friends and family who hadn’t seen for quite some time, including a friend of mine, who is an RCMP officer. Let’s call him Dan. Dan was visiting from Alberta. He used to live and work in Toronto and still keeps his condo in town in Toronto about he rents out. I helped to convince him to keep the condo when he moved as a hedge just in case he ever wants to move back to Toronto and in case Prince prices ever went up. Be it’s a good thing he did. Because if he did ever want to move back, he wouldn’t be able to afford it. Hence, this hedge worked out. Yes, condo prices are down in Toronto, and pretty much every city where there is condos. Most of them are down through across the country. But understand if you look into the numbers more specifically, if when you really see real estate prices broken up by a category or kind of housing category, you’ll notice that counters for example, are down much less than say detached homes that sell for over one and a half million dollars. The Affordable I’m doing air quotes. For those who can’t see, the affordable. I think the better term is actually the least unaffordable. starter home market is still very much active since rents are so high along with interest rates. It’s natural for that demand for entry level real estate to increase. No different than how no name grocery store items like President’s choice and Kirkland are selling better than ever these days. Anyways, Dan shared with me how grateful he is for his investment property, as we discussed how the importance of intergenerational wealth is for homeownership. Basically, if you don’t have intergenerational wealth, if your parents don’t have wealth, then it’s gonna be very difficult to own a home and especially Ontario or BC, my friend Dan actually moved out to Alberta for affordability reasons, you know, his top salary basically is not that far off, whether he lives in Toronto or northern Alberta, where it’s like a third of the cost in terms of housing. I can’t agree more with with his opinion that intergenerational wealth is important. And this time, the time that we’re in right now, is probably the most important it’s been in the last 12 years to invest in oneself education and networking. I can’t recommend enough that folks join us on November 12 at the wealth hacker conference. Our last event changed so many people’s lives for the better, but we’re hoping to connect the returns for our attendees this year. on to this week’s show, tell peers who came to our conference as well. Back in 2019. He’s currently a real estate investor with 22 doors. Cal has been investing since the last recession being braver than the most. He bought the dip in Florida. He did research for a while but he pulled the trigger in 2011. He’s done quite well for himself. He’s a stock hacker and online education business side hustler. I just mentioned side hustle because Kyle does have a full time job as a mathematics consultant to kindergarten to grade 12 teachers at his local school board. Kyle is a teacher of math teachers.

 

Erwin  

Cal is passionate about education. As you can tell We’re lucky he’s for us that same passion for education spills over to the investments area. He loves to share his knowledge, his experience. He’s always sharing his research with our community at stock hacker Academy. And I selfishly had some questions for Kyle on how to teach math and investing to kids. Now that I think about it, Kyle’s method for teaching compound interest, which he shares, in the latter half of the show, compound interest, being the eighth wonder of the world, his methods would totally work on adults. So make sure you have your pens and pencils ready to take notes, please enjoy the show. Like if you call appears, Hi, Kyle, what’s keeping you busy these days,

 

Kyle  

but Well, everything is keeping me busy. We’re back to school. And I’m telling you, every single school year when we begin, I always, in my mind, have this, you know, picture that everything’s going to be great and calm and organised. And here we are, beginning of October. And as usual, it’s a bit of chaos. But it’s, it’s a fun cast. It’s nice to be back

 

Erwin  

at it. elementary, high school. What is well,

 

Kyle  

my background, I come from secondary. So I was a secondary math teacher for about a decade. And then I sort of moved into a coaching role. And now I’m a K through 12, consultant. So I sort of coordinate deliver professional learning for educators and everything in between. So lots of hats. They’re pretty busy. But I also get the pleasure of working with students and teachers today, for example, this afternoon, was in a class and got to hang out and do some awesome fun math talks with some grade nine students. So it was a great day.

 

Erwin  

Fun math talks is good. And we’re getting a minute just because we discussed some things off the air, I think we should share with the listener to 17 listeners, I’m sharing how am I experiences among my clientele. So I have 500 clients generally that are very comfortable with math. And I have some, of course, some hardcore analytical people like software engineers, architects, physicians, what I don’t notice among my clientele, what we don’t have is people like from the arts. And then I was thinking, my thought is that, you know, people who can do math can analyse investments. But even before that, they probably can think logically, we always have problems in front of us. You know, the big one right now is inflation and interest rates. But then how does one protect themselves from inflation? And then, like, our clients don’t come to us already interested in real estate, because they already have some understanding, I need a business I need I need some hard assets. So you’re, you’re kind of doing important work to produce more clients for me.

 

Kyle  

Yeah, well, it’s funny, because, you know, our I shouldn’t say funny, it’s not funny, because what you’ve sort of articulated is that mathematics, you know, this is why I love the work I do is that, you know, when I came out of my post secondary experience, well, actually, in post secondary, I was that kid who memorised everything through school, I didn’t really understand why a lot of things did what they did. I just knew, you know, I showed up, I did my cramming the night before. And I was able to recognise enough patterns to sort of get me through. So I was, quote, unquote, good at math. And in university, I was like, Well, I’m gonna do computer science and math, because I’m good at math. And in second year, I sorted the wheels, as I call it, I say, the wheels fell off for me. And what I recognised at that point, I had a professor point at me and say, You don’t know anything about math? So yeah, so that’s, you know, yeah, I

 

Erwin  

was fine. Today’s world. No, absolutely. And

 

Kyle  

you know, and honestly, at the time, I sort of shut it off as he’s just, you know, a jerk. And that was about it. But the reality is, is that, you know, 10 years later, as I’m in a high school math classroom, spinning my wheels, trying to help students understand math, you know, what I saw is exactly what you described, there was like a group of students who sort of it sort of seemed like, oh, like, they’re the math people. And then there was the other group of students oftentimes, like a larger group of students that weren’t math people. And that’s sort of like one, I guess, philosophy you could have, or one mindset that you can have is that, yes, some people are going to, you know, be more naturally inclined to enjoy mathematics and others won’t. But I sort of look at it as more of a nature nurture thing, where our job as educators, is to try to help more students feel comfortable and confident with mathematics. And, you know, that’s really the work that I do, I’m not doing this work to try to make, you know, those top achievers even better, you know, there are people that’s their passion, and they want to do that. And that’s great. I look at the completely other end of the spectrum. And I look at those students, because mathematics is such a gatekeeper. And you just articulated you said, a lot of your investor clients, people who are trying to build wealth for themselves, so they can take care of themselves, their families, leave a legacy. There are people who sort of, I’m gonna say, one at the game of mathematics, whether the instruction was you know, sound or not, they sort of were the lucky ones and I’m one of those people and I want to you know, offer that out. opportunity for more students. So yeah, that’s, that’s why I do the work and, and I think there’s so much more work to be done there. And that’s what keeps me you know, driven to continue this work.

 

Erwin  

I just like to add, I tend to skip steps and I leave out context and which is funny because I say context is everything these days. One doesn’t need to be good at math to become investor, like the step first is usually have a really good job. Right in order to qualify for mortgages?

 

Kyle  

And and how do you get a really good job, sadly, once again, you know, even if, you know, they, they say calculus, for example, is like a major gatekeeper because some of your top professions in order to get into those programmes, even though they’re not math heavy, they use calculus as sort of like a separator. So if you’re, you know, strong in calculus, you get into the programme over someone else who might be even stronger in the actual area that they’re trying to focus on. And they use that as sort of like the tiebreaker is like, oh, calculus, we’re going to take that person. And again, that’s a massive challenge. It’s a massive issue, when you know, you might be one of these people who, who sort of got left behind somewhere along the lines.

 

Erwin  

That’s a great point. You mean mentioned left behind because I have lots of clients who didn’t go to college or university, but they’re really smart. So I’m guessing they didn’t enjoy school, or they struggled at school, but they’re really smart. And they learned afterwards, like through application probably, life would have probably been easier if they enjoyed school and did well in school.

 

Kyle  

Yeah, well, you hear you know, so many people at stock hack or not stock hacker, but wealth hacker conference, you know, Grant Cardone who and Robert Kiyosaki, there’s so many people who are, let’s say, entrepreneurial, who, you know, didn’t maybe enjoy the game of school, but a lot of those people, those still had sort of this, you know, almost like a, like an intuition with numbers or with have or, you know, recognising patterns is probably a better way to say it. You know, pattern recognition is like one of the key, you know, differentiators between successful people. And folks who are less successful is if you can recognise patterns. So, you know, Grant Cardone says, hey, when I do this, this happens. I’m gonna keep doing that. What better place and mathematics class to give students that opportunity? So, you know, if there’s any math teachers listening, I would say, you know, reflect on your own classroom and think about like, are you giving students an opportunity to recognise patterns and behaviours of how the math works? Because that’s what really matters. In math class, it’s not necessarily remembering how to complete the square or Pythagoras theorem or any of these other things that we, you know, we tend to rote memorise, do these

 

Erwin  

kids understand the importance, like what’s on the low side, and like to understand, like, you need certain skills and tools in order to get a good job. Come on, investor is good, I haven’t lived.

 

Kyle  

You know what I think it’s hard to say, like, I think yes, but I think it’s also really hard to comprehend what that really means when you’re, you know, and I always reflect on my own experience, and, you know, I, my parents told me, you need to get a good job, you need to, you know, have education as as a means to help you get a good job. But the reality is, it’s, it’s sort of like, you know, you have to get out there, you have to experience what that looks like, and sounds like and again, certain students, I think, just have this advantage of like, I just kind of followed the motions, like, I didn’t work necessarily harder than a student who didn’t maybe go on to some sort of post secondary, but I was lucky enough, I suppose that, you know, I, I was able to get through and sort of jump those hoops to get me far enough. And, and I think that’s a major challenge that we’re up against, because I don’t think it’s getting easier for anybody once you get out of school these days. And I think about your kids, my kids, anyone else who has young children, like who knows what that’s gonna look like down the road?

 

Erwin  

It’ll be impossible buy a house, but getting a job these days is great. Yeah, exactly. So the best job market,

 

Kyle  

I go straight into the service industry, you know, it seems like I’m looking at the tips. You know, when I go to dinner, I’m like, Oh, holy smokes, you know, how much money do we spend on dinner? And then you’re like, I gotta leave a tip on that. Oh, my gosh, and I’m thinking to myself, I’m like, What am I doing here? I should know I should be serving these tables. So that’ll be where I’m sending them 18%

 

Erwin  

The first option

 

Kyle  

and they already added the gratuity on there how convenient and I didn’t

 

Erwin  

tax to There you go, rarely pay plenty of sales tax to so called easiest way for me ask this question as you have kids, eight and 10 eight and 10 Yet even 10. What are you teaching them so supposed to be a real estate show? Are you teaching them anything around real estate and stocks anything like that?

 

Kyle  

I would say definitely not really not a whole lot with stocks. I know my son is a big Roblox fan. So you know once in a while, I would pull up the Roblox chart and you know, we chat about it just very informally, I’m very, my approach for mathematics, at least initially, is trying to allow them to explore and inquire and investigate before sort of getting into, you know, the nuts and bolts of things and let them ask questions kind of follow their lead a little bit. More or less, I think I talk more about real estate with, with the kids and, you know, I try to be open and honest with them about how much things cost. And, you know, we describe things like, you know, how much like rent would be our children are shocked when they, you know, they think Holy smokes, you know, like, $50 is a lot to them. So, you know, when they think like, every month, someone has to pay, you know, you know, $1,500, or $2,000, just to live somewhere. And, you know, so we discuss those things, and I’m really looking forward to, when they get to that age where I can, you know, sort of have them hop in the back and, you know, head out and kind of get in there and get their hands dirty. So that’s something that I’m hoping to do. But I’m also trying to balance that with maybe not forced feeding it on them at the same time, because I do want them to, you know, actually enjoy it through the process.

 

Erwin  

I’m totally different. You years ago, I was already bringing my kids for, I bring them for tenant showings for Renovation Inspections. And even when we sign the tenant, couple of reasons why I want my child to be there. So then the other family knows that I’m a parent, too. Right? I’m not just this evil landlord trying to collect my 1500 $2,000 a month, you know, I have a family to you know, you don’t pay rent. I can’t afford this, either. And I think that’s basically yeah. And then that’s math, I think you can some people miss out that, you know, we need to collect rent in order to cover these massive mortgages that are inflating with interest rates. That’s often Yeah, it’s often seems to be lost in the tenant world.

 

Kyle  

Yeah, for sure. And honestly, like, children learn best through observation, right. And again, you know, we talked about patterns earlier, right? They earlier they start seeing things and observing things. And then, you know, they start to recognise patterns, and they start to see different Oh, like, you know, looking around and seeing, like, Oh, my goodness, you know, a lot of the places that we’re renting are a lot smaller than the place that we’re living in. And, you know, understanding that it doesn’t always look exactly the way you know, your world is to you when you’re growing up. And I think that’s a huge lesson for them. So maybe I gotta get them in the car a little earlier here following your footprints,

 

Erwin  

I have no idea from what I’m doing is right, actually got some flack over an email that I sent out and about? I shouldn’t be asking, What am I teaching kids, my kids about real estate, that lady was saying, but you should let your kids explore on their own and when they’re old enough to figure out what business they’re interested in. But I’m like, how will they know what businesses are interested in? If they have no exposure to business?

 

Kyle  

It’s the same quite I have the same discussion with sports, for example, you know, a lot of people say like, ah, you know, my kids don’t want to play X, Y, or Zed. And I started to say, like, how do they know, you know, like, without sort of trying and, you know, at least giving it a shot. And sometimes, you know, you learn to love something once you do it. And, you know, I always say, if your son or daughter or child doesn’t like school, are you just gonna say okay, no, you know, don’t do that either. Right? It might not be what you love doing right now. But I mean, I think one of our jobs as parents is to at least give them exposure, and but then trying to find that centre, right? It’s really hard, like humans are very off people, like we’re all in, we’re all out, we’re, you know, totally right, totally left, or, you know, it’s very difficult to get to that balance. So, just kind of keeping that in mind, I think helps us, at least not overdo anything, like, Hey, we’re gonna try all the sports and you know, you’re gonna, you’re gonna be on all the rep teams or you know, whatever that might mean, but to give them enough exposure, so then they can, you know, they can get that experience under their

 

Erwin  

belt. So call your smart guy. Well, right. How much

 

Kyle  

should I pay you to say that I keep going? No, I’m just getting,

 

Erwin  

why do you invest in real estate? Because I always have, I’m always concerned with confirmation bias. Right. And so I want to ask, you know, you seem bright. You’re responsible for our future, the future of the world, educating educators to educate children and educating children. Why do you invest in real estate, even monster pension down the road, don’t you? They’ll take care of everything.

 

Kyle  

Yeah. You know what, it’s interesting, because like, I have done so much growing like, obviously, when people are listening to this podcast, they’re probably very similar to us. And they realise that, you know, you’re constantly learning what you think, you know, today is probably not the whole story and all of those things. When I came into teaching, you know, my wife, my now wife, she was my girlfriend at the time. You know, we were both in teachers college together. And, you know, we were working jobs and all these things, and we were like savers. Like I was very saved minded. You know, we’re gonna get House at some point down the road, we’re gonna keep saving, saving. So we eventually got a house. And then it was like pay down that mortgage like that that typical, you know, do the right thing just like mom and dad says it’s like pay down that mortgage. So I was doing that. And then I ran into the whole idea of like the Robert Kiyosaki, you know, movement of Rich Dad, Poor Dad, and this was back in, you know, the late, I don’t know, maybe 2009 2010, just after the boom, time. Yeah, very, very interesting time. And, you know, in my mind, seeing the market, the stock market crash and having a very little amount of money in my RSP. At the time, it was probably like, $10,000, or whatever it was seeing that, you know, basically go down by a third or, you know, you know, almost half, I was like, Whoa, I don’t like that. And I had no idea what was going on there. But one thing that I did start recognising was this idea that wow, at least with real estate, you know, historically, it has, you know, done well over time, not that it’s always straight up. But then the other thing was, I just loved the idea, like the tangible like how I could, I could go in like, I’m like, even if this is worth nothing, I could still rent it. And I could still go touch it, you know, like, I could physically touch it. Whereas with stocks, bonds, any other type of paper asset, I didn’t like the idea that it was it felt fictitious to me, you know, and I’m sure we could go down the Fiat path if we really wanted to, but, you know, this idea that I’m like, What the heck are we buying here, and that’s what got me into it. So I really lucked out with timing there that I got interested. And then I spent, you know, a good, probably too many years, researching, and then going to the States and researching there. And that’s where we picked up our first rental property was down in the US. So glad we did it, and we’re still doing it. And to me, it’s like the easiest sell on an investment to feel safe, that it’s not just going to disappear on you. And that, you know, you can count on it to to continually make money over time. All right. And you live in Windsor, right? Yeah, just outside of Windsor. I’m in Bel river Ontario. So just kind of a little suburb of Windsor, you know, 30 minutes from downtown type thing and way down the 401 to the end of the line.

 

Erwin  

And you chose to invest in the states and stuff like Windsor? Yeah, well,

 

Kyle  

at the time, you know, I’ll tell you, I was also you know, and this is interesting, I haven’t thought about this in a long time. But my thought initially was, hey, let’s get a let’s get a like a vacation home. You know, that was my thought. Let’s get a vacation home in Florida. So we were looking in Florida prices were cheap. And you know, that was my big thing. And my wife who is not into investing, she wants nothing to do with any of this stuff. She’s like, you go, do you. I’m in full support, I trust everything you do, which is great. But also scary at the same time. She said to me one day, she’s like, why don’t we just get a rental property, and then use the money from that to go vacation wherever we want. And I was like, that’s actually a great idea. So we’ll just rent it full time and go from there. So we had picked up a place in in Fort Myers. And that was our first used a home equity line of credit. And, you know, basically paid all cash for it. And you know, I was like, we’re just going to chip away at this now. You know, I was paying down our mortgage. Now we’re going to chip away at this one. And that was our entrance to the market scary. Everyone thought we were crazy. And down the road. Turns out it it worked out. Okay, maybe maybe it won’t always work out. Okay. But for us anyway, it was, it was definitely a good entrance into the market. Do you still have it? We actually sold the Florida place the year before we built the house we’re living in now. So now, you know, like always, I always say that in real estate investors, you know, regret selling any property. And that continues to be true for me every property we ever sell. We’re like, Ah, why did we do that. But we did sell it as more security to make sure you know, we had enough cash to build this property. You know, we had, we had a lot going on at the time. So we had sold there took a you know, a really nice profit over there. And again, little bit of regret, but also I felt like the cost was getting high. We had condo fees I had I had gotten super safe when we purchased and bought in a gated community. My thought was, you know, I was sort of scared to buy anything that was more, I would say more reasonable for a rental and I bought something a little more high end, which still worked out. But now knowing what I know, I would have never done that I would have bought a property that you know, just cash flowed as much as possible. So, you know, it was sort of one of those repositioning of, of the asset or the equity anyway.

 

Erwin  

Not the worst idea, but can you share numbers because you’ve probably got this thing for a song.

 

Kyle  

Yeah, that that property well and for me to like You know, I think back to and I’m like, What the heck was I thinking at the time? Like, I wish I knew what I knew now, because I would have backed up the truck bought. Exactly, you know, like, how much can I get, but back then this particular property it was going for like over 300, before the crash in 2008. Nine, and we picked it up in 2011, I believe it was 495. So that was and that was in a gated community,

 

Erwin  

how many square feet, how many bedrooms and bathrooms, it was

 

Kyle  

about 1800 square feet high. It was a coach home. So you know, sort of like a like, like semi detached, but you know, had condo fees. So you know, none of the landscaping you had to do is it was actually a really beautiful spots, you know, ponds in there and all kinds of wonderful stuff. And then we ended up selling it in 2015. So, less than five years later for about, I believe the number was like one ad. And now had we hung on to it, it would be worth a whole lot more. So there’s a little bit of remorse there. But again, half the time it helps us sleep at night as we you know, as we were building our forever home, we proudly call it here

 

Erwin  

in Belle river. So, right. And the idea how it fared in the hurricane. That honestly,

 

Kyle  

when I saw some of the photos, I don’t and I was like, Ooh, maybe maybe it wasn’t such a bad idea. I don’t know.

 

Erwin  

Yeah, that’s honestly. Yeah, yeah, exactly. So

 

Kyle  

we are, you know, we are out in Florida, my parents actually live, they had a condo on the other side, they had purchased a couple years after I did down there to have like, as a, you know, as a snowbird place, they had picked up their place for 38,000. And they just sold at the beginning of this year, I’m not going to share just because I don’t know, if they, you know, I don’t know if they’d be comfortable with that. But anyway, let’s just say they did a lot better in terms of a percentage return. And then with all these floods and everything like that, I mean, they’re I don’t think their area got affected. But I think for them, it’s like, that’s why they got rid of it. They’re getting older, and they just wanted it to be off, you know, off their minds and not a worry. So I think they’re happy about

 

Erwin  

1. It’s where they’re gonna do rent in Florida?

Kyle  

Well, that’s it, yeah, they’re kind of, I think they’re kind of using my wife’s mentality of, well, let’s just go anywhere, you know, like, let’s just see where, you know, see where the, you know, the opportunity brings us so they’re going to spend a couple of weeks in Florida next year, that’s the plan and, you know, do it any trip they want. They’re, they’re going to be leaving for Iceland soon. So they’re very active, you know, I should also reference, like, their mindset is what makes me who I am, as an investor, they weren’t investing like I am in terms of the, the assets, like in terms of real estate or anything like that, but my parents were very, they were savers. They both retired early, but, you know, still kind of pinching pennies in order to do it. But like, it’s like, that was their lifestyle. And they, you know, they both retired very early, and are still doing just fine. Because they they just got, you know, they’ve got their cash flow in order. And, you know, they’re, they’re loving life live in it to the best of

 

Erwin  

1. Amazing. So we have, I don’t know, right or wrong, I have like, the opposite mentality and trying to make a lot of money, so I don’t have to worry about money.

Kyle  

Totally. And, yeah, and they don’t worry about money, which is great. But I’m like, I have this other thing, like, you know, you and I sort of connect on that level. Like, I enjoy the work too. That’s obviously important as well, but I’m also like, I would never do what, what they did, I don’t think like I think I’d be too worried about it. I’m very, you know, it’s almost like overcautious, like I want to make sure I don’t ever get in a position where I’m going Holy smokes, you know, shouldn’t have done that. But, you know, they had their, you know, budget in order and you know, they’ve they’ve lived very modestly, I’ll call it but they’ve still done a lot like they golf, they travel they do all of those things. But you know, they don’t buy brand new cars, they don’t buy the best of this or the best of that. They just, they just know what they want. And, and I think that’s awesome. It’s it’s a great, you know, great way to live for sure. Sounds like The Millionaire Next Door. The book. Yeah, exactly. Exactly.

 

Erwin  

I actually actually had to google how old that book is. I think it’s 30 years old now somewhere around it. Insane. And it hasn’t changed. Right. And in my experience, same mentality. Yeah. In my experience, the the rich people in that book are exactly my clients, and so sound a lot like your parents except their investors. They don’t buy new cars, if they do their mid level, right? They don’t buy brand name clothing, and anyone who does that are at a really high level. Right? Right. I do have a client with a Cadillac version. Apple makes a lot of money.

 

Kyle  

Yeah, my parents I would say are like, honestly, they followed what the traditional mindset has been, which I think is, like, if people do that, they will be like, they will live a great life and they’ll be financially. Okay. And my parents did that. So they were like, Nope, we, you know, we do a lot of saving, you know, my mom cut the coupons for the grocery like and save money wherever they could they put into their, you know, their RRSPs, and all of those things. And they go to the, you know, the big bank and say, Hey, here’s the money I’m putting in every year, put it in all these mutual funds. So they did all of those things. And they, you know, it was almost like, they didn’t have to think about it. And I think they enjoy that. I’m the opposite, where I’m like, Ah, no. Mutual Fund. I don’t know about that. But makes sense to me. Yeah, they’re just like, they’re like a hands off. And I get that from like, a property management perspective, like, where there’s certain things I don’t want to do. And it costs money for those things to happen. So I’m like, I guess if you have no interest in, you know, in what the markets doing, or why it’s happening, I could see how that might make sense, you know, but, but for me, not so much. So

 

Erwin  

you bring up a lot of great points that I’m interested in digging into. So for for move on from your Florida property, like you bought at like a really scary time.

 

Kyle  

scary time for a first investment. Yes, absolutely.

 

Erwin  

Did you you understood what the environment was that you’re buying into? Right?

 

Kyle  

I absolutely did. And like I said, I, my thought was, and I think that’s why I had this vacation property idea in the back of my mind was sort of, like if we pick up property, and it doesn’t work out as an investment property. We have a vacation home, you know, so that was sort of, I think, what drove me towards the property we selected, so I

 

Erwin  

was you live in it? Yeah, I

 

Kyle  

was like, you know, what, okay, so, you know, we we own this property, and, you know, hey, like, I mean, we bought it for the price of, you know, like, really well loaded car nowadays, you know, so it was like, you know, I was like that was my, probably like save face plan, you know, so it was like, oh, we’ll just hang on to it. And that’s the way it’s going to be. So it was scary. But at the same time, like I said, I’m like, I wanted to know that there was a physical thing, like I could go to that place and be like, that’s mine. And that at least made me feel better about things. And then we just made sure it could cash flow. It wasn’t like a massive cash flow generator. I was more thinking appreciation play at the time, which I think a lot of people, you know, sometimes maybe get too far into that. We barely cash flowed. And I was like, my backup was vacation home. So it was a good entry for me. And I would encourage those who are listening, don’t like just find something that’s going to sit well with you. It doesn’t have to necessarily be the best property. Right? There’s always a better opportunity out there. But maybe it’s not the right opportunity for you to get in on your first time.

 

Erwin  

That’s a great comment make. I find too many people are chasing unicorns, and then they don’t get anything done. And the market just keeps going, keeps going the way it wherever it’s going. And generally over the long trend. It’s gone. It’s definitely gone up. Yep. Yep, totally. I invested it back to 2008 2009. I want to hear your experience. How was it hard to rent? Because, you know, it was the great recession? Yeah, yeah. He’s barely felt it. But it was, it’s called the Great Recession or the credit crisis.

 

Kyle  

Yeah. And actually, I want to say I can’t remember which episode it was, but I was listening to one of the episodes recently, and I feel like this came up, where you were just sharing about this idea that when people aren’t buying homes or when they can’t afford homes, they have to rent so it was I didn’t realise that at the time. Like I would love to say like I had it all planned, you know, but there were so many people unfortunately like I’m not I’m not wishing this on anyone. But I had no idea at the time that there were so many people that were holding so many homes as an appreciation play that lost homes speculators there was speculating but then there was so many people that lost their their primary residence and required a place to live. So you know, it wasn’t like the recession caused rent to go away or people to go away it was like they still needed a place to live. So that worked out fine for us. Like we never had an issue my realtor down there like this is where you know, having a great realtor I know your team is very highly regarded having a great realtor is so important especially if it is out of you know out of town out of state out of province wherever the realtor was awesome was like my essentially like a property manager and getting it rented and then here’s the handyman and we’d let the handyman essentially manage everything and you know, I just trusted that that handyman and it was super smooth.

 

Erwin  

Yeah, me people are worth their weight in gold. Absolutely. They’re often my eyes and ears on them. Property? Absolutely. Yeah. So check on my other contractors if I had landscapers doing the job or whatnot, if the roofer did the right job.

 

Kyle  

Yeah, eyes and ears, for sure,

 

Erwin  

absolutely need boots on ground because you can’t be there that often. So I don’t know what to ask next. Because there’s so many things I want to ask, like, for example, do you see any parallels between those times in terms of the economy compared to like, these times? Should we be as fearful as the Great Recession?

 

Kyle  

Well, you know, what, honestly, I wouldn’t necessarily be jumping into deals I get, you know, I picked up a flip off of a guy who, you know, was sort of a last minute thing wanted private money, and I sort of arranged it, you know, one thing I will say is, over this decade or so, is I’ve realised how important it is to be creative. And, you know, this person wanted private money and given the market, given the uncertainty again, I’m still worst case scenario, if you have to hang on to a property, you know, and it’s not the end of the world, it might not, you know, be amazing upfront, but, you know, he wanted to pay 10 12% interest for X amount of dollars. And I said, Well, why don’t we do this, we’ll put it in my name. And, you know, you’ll be sort of like the partner here. And, you know, we’ll we’ll split some profits afterwards with some conditions on it. So you know, if you know, if it doesn’t sell after X number of days, then you know, basically like you’re gonna walk type thing so I’m not diving into deals just to get into them. But I’m trying to be creative. I think sellers here in Windsor are still I you know, in Toronto, I think it’s hits you a little earlier than it did in Windsor. But like the out of town investors in Windsor, like gone, they’re not around anymore. They were one of the main reasons why everything sort of like, you know, popped up around in Essex County here and

 

Erwin  

there for listeners benefit Windsor, a lot of these cities just outside the GTA like Oshawa, Windsor, London, Hamilton, they all went, they all boomed during the pandemic during the two years of the pandemic. And now they’ve they’ve also fallen the most, at least, that’s what I’m hearing from my friends Windsor, that it’s fallen quite, quite hard, and a bit more than surrounding areas, probably because I was driven up by investors.

 

Kyle  

Absolutely, yeah. Yeah. And honestly, I think we’re in a place where it’s, we’re in a really crappy mode right now, because I think sellers still think that they can get, you know, bidding wars. So they’re not like really being flexible or realistic. Like they, you know, they’re not, they’re not looking at data, right. They’re just like, I want to sell my house, and I want to get as much money as my neighbour did nine months ago. Right? And so they’re sort of like, you know, hanging on and realtors are saying this thing, but the seller thinks, well, the realtor just just wants me to sell the house quickly. So they, you know, so there’s kind of like this mismatch, but then when you go in, it’s like, the buyers, especially investors, investors are coming in sort of going like, No, we’re not, you know, we’re not going to pay that. Yeah, you know, that’s, that’s not going to happen. And I’m sort of that guy, so I’m trying to be more creative with deals working with sellers, so that, you know, there is benefit for them at the same time. And so they don’t feel, let’s say, robbed, because I mean, really, like the market has robbed them of the opportunity to sell at the peak, like everyone else did nine months ago. Right?

 

Erwin  

What do you see in the stock market? For me,

 

Kyle  

the stock market? I think something that’s really interesting is that I mean, the stock market obviously exploded ballooned way, like, you know, some are calling it like, the biggest bubble ever, you know, so if you’re thinking 2008 was bad, or, you know, 2099 2000 was bad, like, some are calling it like, even worse than that, you know, you can decide what you’d like. But when you look at the data, and you start actually, like, looking at all the different factors, right, so like the Fed is raising rates, obviously, you know, Canada’s our bank is is going to be, you know, taking moves from from the US as well,

 

Erwin  

they have to do to keep our currency higher, right,

 

Kyle  

quantitative easing has ended, and we’re supposed to have started tightening, but we actually really have

 

Erwin  

a fine line. There’s been no tightening.

 

Kyle  

Yeah, like when you do those things, and like inflation still high, a lot of it is sort of like it, you know, it’s trailing data, like an education like we use EQAO to, it’s trailing data. It’s like different sets of kids that you’re using to try to figure out where to go next. It’s the same thing happening here, you’re using inflation, which is trailing data. So by the time the Fed is smart enough to sort of like realise that hey, maybe things aren’t, you know, going to continue exploding like they they have a mandate to make it look like they’re doing the right thing. They’re just like crushing markets and obviously real estate’s you know, a little bit lagged behind the stock market so that you know, where are we going? I personally don’t think we’re at a bottom and then based on you know, I look at hedgeye hedgeye is is such a, like macro, focused, macro centric resource and I love it It basically like they’re looking at like, not until like, mid next year, at least for us to start looking back at, hey, you know, actual growth might start happening again, the economy is, you know, contracting. So like if our GDP growth is is actually like negative while we’re raising rates, while we’re supposed to be taking money away from the, the economy, like those things are not a good mix. And it’s going to be really difficult for someone to say, you know, I think you know, X, Y, or Z stock is going to hit the moon might be the short term, like fair bounces or it’s just a little relief rally. And it’s like, a lot of times too, it’s like a bunch of shorts closing their lungs or a bunch of shorts closing them, which means they’re buying by and that looks take off on a day right? So you know, I I’m sort of, I’m doing like very cautious bear call spreads. And that’s about it. Like I’m not getting crazy with it either. Because, you know, you could be wrong, but I don’t foresee us you know, getting to new all time highs for quite some time.

 

Erwin  

Yeah, I might plan to sell more bear call spreads when on the good pop. And I don’t think we’re there yet. Yeah, yeah, I missed the last pop. Dammit.

 

Kyle  

Yeah, you know, what, I actually, I tried to do a little bit like, I’m trying to be more, you know, I don’t want to get too excited. So I do little bits here, little bits there. But you know, when it starts running on you, I’m telling you, all of a sudden, like your brain start saying like, what if? What if this? What if that? What if this and then when it rips back down? You go, Oh, thank goodness, but then the next time it happens, again, you go, maybe it’s this time that I’m wrong? You know, and, and it can be quite scary for for a period of time.

 

Erwin  

trend is your friend till the end? Absolutely. Just the trend happens to be bearish. Yeah, exactly. Any favourite stocks that you sell their causal spreads on like QQ or Tesla, or any other space with Garbers arc?

 

Kyle  

It kind of depends, but anything, honestly. And again, this has kind of taken like the, you know, the hedgeye approach is like, anything that’s growth is probably okay, now, the one I guess, challenge you have is that sometimes, you know, you get the mean stock craze, or you get, you know, people that are just squeezing that can be really, really scary. So picking like, kind of like boring growth stocks can be really helpful, you know, picking the rustle, for example, like and using that, because like the queues, I mean, apples going to, you know, get a couple good days for Fang and you know, your cues are going to be upside down, right, even though there’s a lot of other growth names in there. So, you know, just not getting too crazy on any one thing recently, like hedgeye was saying, you know, they were looking at, there was like, A, the ticker chef, so I’m trying to remember is that tattoo chef, there it is. Yeah, that’s the one. You know,

 

Erwin  

they stopped. Yeah,

 

Kyle  

they threw that out there. And they just said, like, you know, what are you not going to do during a recession is pay that company, you know, so it’s like, oh, yeah, that makes sense. So, you know, you kind of look at that, and then you kind of look around those things. But, but ultimately, it’s like, yeah, looking for a little bit of green on certain things. And, and still being I think conservative is probably smart. Like you don’t want to, you know, go too close to the money or you can get taken out over the ropes pretty quick if things run for too long. Alright, at too high. Okay, so

 

Erwin  

quick disclaimer to the last 17 listeners. None of this is a financial advice, folks. And also, we’re talking bare stuff we’re shorting as in we’re making bets that profit when stocks either go down or at least neutral. You know, it’s funny, because early pandemic, I thought peloton would be would be toast. It’s like, who’s gonna pay for $1,000 bike with a monthly subscription? And we’re heading towards recession. Well, I call this pandemic right, if that thing’s wrong, yeah, that was the end of the world. Why was I wrong on that one? At least I did plenty of money in the way of it.

 

Kyle  

Well, if you remember 2018, that was supposed to be that was supposed to be a recession, right? And then what did we do? We printed money and then COVID happened and that was supposed to be a recession? And then what did we do? printed money, printed money and then we printed more money and then more money again? And you know, basically like, it’s like, I wonder I’m not I’m not gonna make a claim here. But I’m definitely wondering, like a lot of people are waiting for this fed pivot to happen but with inflation where it is their mindset and with job like with, you know, the whole jobs numbers the way they’ve have been positive mixed numbers. Yeah, it makes it really hard for them to pivot, right? Like they’re like, Oh, we’re gonna start pivoting now when inflation is high, and like job numbers haven’t, you know, been crushed yet. So I think they’re going to do a lot of damage. And then by the time the numbers change, it’s we’re going to be in a, you know, a bit of a world of hurt. And then also think about mortgages too, you know, when the interest rates go up Sure, houses like people might buy less homes. But what happens when your mortgage, your five year fixed is now due next month? Or the next, you know, however many people it’s due next spring, or you know, these are people that haven’t necessarily they’re coming out of these fixes that are 2%, or, you know, even sub 2%. And then all of a sudden, it’s like, they’re in a completely different world. What does that look like and sound like, Oh, and one of the spouses lost the job. So they’re not willing to, you know, re amortise or, you know, do anything. So, who knows? I hope not. I hope that things turn around before them. But I mean, there’s a lot of, you know, let’s just say that the the cards aren’t stacked in our favour right now.

 

Erwin  

Definitely, definitely headwinds. I’m speaking to a lawyer that works with a lot of real estate investors and transactions have slowed. He was actually saying that he’s doing a lot of private mortgages. I think people are trying to shore up their positions via private because they can’t whatever. It’s a crazy world out there. Yeah, for sure. Can you tell us about this, these other side? hustles. You have? Like I was looking at your website? I don’t you have enough work to do you have two young kids?

 

Kyle  

Yeah, my wife says all the time, Chantel she says that she’s like, You have too many ideas for one brain. And honestly, she’s right. I am like a learner only. I only like learning about things I want to learn about or am interested in. Like I said, I’m extremely passionate about the work I do in mathematics. And you know, that’s one of the things that myself in a good friend and colleague, John or we have a website called make math moments.com actually a podcast, just like you have I think we only have 16. Listeners, though. Oh, I think you are ahead. No clips me soon. Yeah, I’m hoping I’m hoping anyway. But yeah, that’s the making math moments that matter podcast, and, you know, we do a bunch of PD for teachers and try to make it as accessible as possible. We actually have a virtual summit we do once a year that’s coming up in November, and we usually have about, you know, on average, 10,000 educators from around the world who participate? And yeah, we just, we want to, I guess, share the math love and, and give educators who don’t necessarily have the opportunity to do the the learning, you know, the opportunity to to see that maybe math can look a little different for for students, then maybe we remember from math class,

 

Erwin  

how can parents make math look different for their own families?

 

Kyle  

Um, honestly, I think one of the easiest shifts you can do as a parent is ask more questions and tell less, you know, so I see people often rush to save kids. And we do it in education, too, like teachers do it all the time. But it’s like, just just ask them. And sometimes it will take them a long time, and maybe they won’t come up with the answer right away. And that’s okay, too. But when we rushed to tell them the answer, they haven’t learned anything. Right, they got an answer, but they haven’t learned what you’re asking them. So if you frame the question in a way, where, you know, you’re giving them enough information, and you’re not making it ridiculous, like asking them for the second derivative of you know, some expression is probably not a good idea. But you know, things like counting, adding, multiplying, you know, anything like that. You can get kids to solve proportions, if you frame the question in a way that’s accessible, especially if you have items or if you draw a model for them to, you know, sort of look at kids are very intuitive. And they have strategies, you know, that they can apply. So that’d be my number one is, say less, ask more.

 

Erwin  

So we’ve been very public about Jerry and I, we cancelled the Kumon for the kids. Tell me more. It was the biggest source of frustration within our household, us arguing with the kids, we’d have to sit with them to get it done. Even then they told it a thumbs couldn’t motivate them to do it. So both English and math, the only time they were fine, were when they were in front of the tutor. The rest of the time when they’re when the tutor wasn’t in front of them. They struggled to get anything done to be motivated. So yeah, and it’s also $500 a month, why would I pay $500? a month for grief?

 

Kyle  

Yeah, no, totally. And honestly, you said it earlier, you were talking about how context is everything. And it’s true in math as well. And I find a lot of times what we do, and I don’t want to speak about that particular organisation, but a lot of times we try to I call them naked problems. We try to get kids to do naked problems, which are meaningless to them. So like kids are just trying to understand what

 

Erwin  

your context listener, there’s just like small sheets of paper with math problems. Right? And

 

Kyle  

it’s not really like sheer numbers. Yeah, probably like whatever plus whatever, whatever times whatever, you know, whatever it is, but it’s like if you just take one or two, or however many of those problems and if you add context to it, it now is something the student like that your child can now relate to in the real world. And that can help them to drive, you know, to drive a strategy that they might use when you know when a kid comes to you. And this, this is very apparent when it comes to you and say, Hey, we’re doing 24 with the two dots and the line, and this number like that tells you they have no idea what the heck’s going on. Right? And if that’s the case, then what are we trying to do here? So it’s not about memorising, multiplication facts, or division facts, it’s about engaging with the mathematics in a meaningful way. So that hopefully becomes automatic. Like, I don’t want to memorise it like a phone number, I want to be able to go Oh, like when this happens, that happens. And some of those things will just, you know, be easy to recall. And others might require a strategy. So that that’s the kind of mathematics work that, that I’m really into and, and trying to make it accessible for students to kind of meet them where they are, and nudge them along. So when students are frustrated, they usually don’t either don’t understand why they’re doing what they’re doing. Maybe it’s not even appropriate for where they are, like, they might not have the strategies or the methods to, you know, to do what they’re doing. Or, you know, it’s just contextless. Like, there’s nothing. What do I relate this to?

 

Erwin  

Right? Yeah, my kids, they could do it, if they put in the effort, but they have no interest in doing it. Versus when when I give them like a money exercise, for example, we pay our kids to do things around around the office. Really? Yeah, we haven’t paid the kids for any chores or anything. But when we ask them to do work, for example, and then we’ll ask them, like, they’ll say they want something. So they want to buy something. Say it says lunch, like lunch is 20 bucks, for example. And then I say, well, we paid you $5 to shovel the driveway. How many times have to shovel the driveway for lunch? That’s exactly right. And they’re like, Oh, it’s a lot of money. Right? Yeah, totally. Daddy paid for it, not you.

 

Kyle  

That’s exactly and I’m telling you what you just did. That is that is the key to it. And, and you could do that in the car, you know, you could skip count with your kids, like just randomly, like my kids, when they were younger, would like be all into that. Now they’re too cool for that. So that, you know, that’s harder, but like doing little things when it comes up. So for example, you know, what you just reminded me of is, you know, usually on like, Mother’s Day, Father’s Day, we like cook breakfast, the kids love, you know, helping and making it and it’s like, you know, we’re cooking bacon, and there’s, you know, whatever it was nine strips of bacon. And there’s four of us. And like, I love this opportunity, right? Because like I’m looking at it as a math teacher going like, okay, so, like, how many do we get? Like, initially, you know, the kids will say, Yeah, you know, about, you know, about two each and it’s like, okay, about two each great. Okay, so I’ll have the extra strip, and then they’re like, oh, no, I want the extra strip. And no mom wants the extra strip. Now the question is, so what do we do with the extra strip? And I mean, it’s it’s intuitive, like the kids that are like, Okay, well, there was two for you and two for you and two for you and two for you. And now there’s this one extra strip. What do I do? Well, try cutting it up. So they cut it in half. And it’s like, is that enough? No. Okay, what do we have to Oh, okay. So what do we call that? That’s fourths? Okay, great. Now, it’s like so how many pieces? Did everyone get two and a fourth pieces of bacon? Wow, nine fourths is the same as everyone getting two and a fourth. That is pretty cool. Like, we can do this stuff. Like you have to think about it a little more. I have an advantage because I’m a math teacher. And you know, I think about this stuff all the time. But there’s so many opportunities where instead of me saying let me cut the bacon. Right? You just let them do it. Now your bacon is cold by the time you get it. But at the same time you you’re you’re helping your kids.

 

Erwin  

Interesting. Anyway, try and math. Sorry, am I trying to das math when he told us problems? Contextual problems? Yeah, like contextual for sure. Okay. Anyway, try that next because we have a Tesla. So they say, Oh, well, you put too much mileage on the Tesla like we’ll go on to pay for gas and like the van never pay for gas in the van. So I posted some questions and Tao leave a referral for me for someone who does English. That was like you. Yeah, no, I

 

Kyle  

got none.

 

Erwin  

Nothing. Yeah, you’re saying are you that? You’re 30 Did I hear that wrong? What

 

Kyle  

did you ask? You say?

 

Erwin  

Is there a cow pierce that teaches English teachers?

 

Kyle  

Oh, yeah. No, actually, there probably is. I’m just probably not the person to help you find them. Actually. My sister she’s, she’s an IB English teacher. So

 

Erwin  

there you go. Okay, okay. Maybe maybe because you know, math and English. My point is the point while we put the kids the goal with the putting the kids in the Kumaon was we wanted them to be enjoy school, be good at school, and hopefully they did enjoy it. And then hopefully they stick with it.

 

Kyle  

That is so true. Like, I mean, it is very, and I think this happens in everything and you see it in again, I use sports as a context, because it’s like more, I think more visible to the parent, because they’re like a part of it, whereas they’re not necessarily at school with with their, their child. But like in sports, it’s, it takes a bit of both, like they have to kind of like it, but they might not necessarily love it initially. So they have to get in there. But they also have to have some success, because without success, then you’re not going to like it, like nobody likes doing something that they’re not good at. So what do you do if they’re struggling in a sport? Well, I mean, if you think it’s a worthwhile thing to do, then maybe you go out and you play, catch, you know, to help them catch the ball and throw the ball around, or whatever, whatever the sport might be. Or maybe you sign them up for like a skills camp that might help them see or feel that, you know, success sooner. And that can help motivate them. So the same is true for young children. If, you know, if a young child is in school, and, you know, they’re feeling like, you know, they aren’t understanding or they’re not, you know, feeling successful in math or whatever the subject might be, that’s not going to be good in the long run. Right. And oftentimes, that gap gets bigger. And then obviously, the the, you know, the distaste or the dislike for it gets larger as well. So it’s a really important thing to kind of be in tune and, you know, even asking teachers to you read a report card, what does that say that, you know, oftentimes, it’s very cryptic, you just have to ask, like, hey, like, where are we at? And, you know, what can I do to help support them? And if you do, you know, you’re gonna put yourself and your child in a much better spot.

 

Erwin  

So Kyle, any contextual math problems around real estate, we could ask your kids? Oh, I

 

Kyle  

like it. I like it.

 

Erwin  

I definitely throw what age do you think it’s appropriate? Yeah, well,

 

Kyle  

that’s a great one. I mean, there’s so much fun to be done. Like with compound interest, as you know, like that’s, that’s, that’s amazing. And actually, I’m gonna give you the here’s the one thing I’m going to give you that I think is great, but it will make you go poor. And I can show you the spreadsheet to prove it is with my my children, what we would do is we would give them their allowance each week, which was their age, or not each, yes, each week each week. So let’s pretend you know, Talia is 10. And she is so we’re not pretending she’s 10. She’s getting her $10 a week, what I would do, and they were really interested in this for a long time, and then sort of faded a little bit lately, but we should get back into it is like she’d collect her $10 a week. And then we put it in this like Jar, we’d have like a save and spend jar, you know, and try to like do like kind of budgeting and all that that’s great to also letting them recount the money every single time is great, because they love doing it. And it’s just helpful. So that’s good. And like don’t do it for them, like let them do it. But then at the end of the month, you let them count up all their money, and to promote them not wasting their money. I would say for every $20 bill you have, I will give you $1 Oh, so that is compound interest at its best. Because if now the problem is is I don’t know if you realise this, but if I’m giving you $1 For every $20 5% that you keep in 5% of mine a month, so work that out in a year. And my goal there was to try to like if you say like, Oh, give me 1% You know, like it’s not going to have an effect on on a on a young child, right? Like they’re not going to see the growth fast enough. And this is why as adults it it doesn’t work for a lot of adults. It’s why interest on your, on your mortgage works is that it’s slow enough that people don’t notice it as much. But if you make it so it’s noticeable, then it’s sort of like Holy smokes, like, you know, as they get $100 or $200. And like, oh, wow, like you have $200. And how many 20s? Is that? So think of all the questions you can ask is like in order to figure this problem out, I’m not saying you know, multiply by 0.05. They don’t even know we’re not talking percentage at all, I’m just saying it’s a ratio. It’s a 20 to one ratio. So you have 20 bucks, I’ll give you one buck. How much for 60 bucks. Now I’m working with ratios. And they’re actually solving proportions without cross multiplying. So that’s a fun one to do. And but like I said, you have to be willing to go poor because it will happen fast if you have a keener enough kid

 

Erwin  

is the face self reflect, understand. Compound interest is one of the reasons why I’m so frugal. Because why would I spend it when I can invest it? Totally. And that’s always that’s always been my reason why I’m so frugal. Yeah, absolutely. Why would I spend 60 grand in the kitchen away home when I can go spend whatever in my investment property and it’s gonna return me more rent and it’s making them more valuable, more than the 60,000 I spend. Right.

 

Kyle  

So it’s all it’s all interest. You know, it’s that Nelson Nash, you know, it’s either interest earned or interest spent. It’s like there’s kind of no in between there you know, and yeah, like I think it’s a great lesson for kids. I think it’s a great lesson for us as as adults to be thinking about because it’s it’s happening in the background and very slowly but, but when you see the impact and the influence over time, it’s, it’s quite remarkable.

 

Erwin  

And then for the listeners benefit again, Millionaire Next Door, including my clients, they often don’t spend it in our homes either. Yeah, it is totally the shoemakers children analogy, like our homes do not get attention. Yeah, our investment properties get all the attention.

 

Kyle  

If if I had if I had the, you know, the only say, that would be the case for me as well, my wife is a great balance, because she helps me realise that, you know, she’s like you would live in, you know, a shoe box. And, you know, and, and enjoy nothing, you know, if if I wasn’t here, and I’m like, You know what, you’re absolutely right. So she’s good for me. And they say opposites attract. So in that regard, we sort of balance each other

 

Erwin  

out. Right. I will add that there usually is a breaking point where people do upgrade, for example, I have a client who probably didn’t spend didn’t spend much on their own home. But then they bought themselves a pretty sizable nest, chalet up in Blue Mountain. Very, right. Yeah, I

 

Kyle  

think at some point, you start to question yourself and say, like, Why did like, why am I doing all of this stuff? So my big, that’s kind of where my head is these days is like, you know, finding that balance life is short, you know, and it’s something you got to be thinking about as, as you’re moving forward.

 

Erwin  

Yeah, I would say cherish probably some of the shantala because the last one we bought was there and we renovated. Not a huge renovation, but it’s sizable. But yeah, so now now our home is quite nice. But you know, it wouldn’t have been my choice. Yeah, absolutely. I agree with 70s 80s kitchens and fixtures. As long as it works. I’m good, but works in this clean. I’m fine. I love it. Kyle, thanks so much for doing this. Any any final thoughts? Again? Our 17 listeners? Well, some of them have kids, some of them don’t. I don’t know. Any any final thoughts.

 

Kyle  

I would say anybody who’s sitting there and, you know, has has been on we’ll call it on the sidelines these past couple years has been, you know, probably not a bad idea to sit on the sidelines versus hopping in, as we now know. But, you know, if you’re sitting and you’re you’re not taking that action, you know, reach out to someone in your area, like in our area, you know, we have a lot of people who are have talked about real estate for so long, and they haven’t acted and you know, so oftentimes we’ll we’ll JV with them. So my my partner, Matt Bigley, who’s a realtor here in Windsor, Essex, fantastic, fantastic guy, I actually was saying, Erwin, we got to get him on the show. Him and his team are amazing. But Matt and I typically work with with folks who have maybe, like they want to, and they want to do the learning, but they it’s like time just keeps going by and going by and hey, guess what, that that $20 bill, it’s not getting that $1 compound interest when you’re, you know, just sitting in watching. So I would say find someone who knows what they’re doing. Partner with them, and and learn, you know, learn the process. So that’s what we tend to do. Around here. We try to get really creative with deals and we you know, we we partner with folks, whether we know them or have been referred to them, or they’ve been referred to us I should say, and, you know, we try to we try to also sort of mentor at the same time. So if anyone’s in Windsor, Essex are interested in Windsor, Essex, of course, reach out to myself or, or my partner, Matt Begley. And yeah, we’ll get you taken care of.

 

Erwin  

Fantastic. Well, I think it’s wonderful advice. For example, the people I find that usually get burnt on investments usually did almost nothing in terms of research. Well, it’s kind of

 

Kyle  

like it’s like an either or. Right it’s like they either jump in because someone like me says you need to get in, but they they missed the other part. And or the other hand, where they go like, Okay, I don’t want to be that person. So then they sit and they sit and they sit and they sit. And it’s again, remember, we talked about it earlier, on or off? It’s all in or all out. And I think, you know, to me, that is it took me two years, two years to buy that Florida property. I did research every single night, I searched the entire US, like, I know so much from that work, is it worth it? Great. But if you’re not actually doing the work, and if you’re not going to pull that trigger, then I would say you’ve you’ve got to take that next step which is don’t just dive in blind, go find someone and you know, work with them. And you know, make sure that they’re willing to kind of take you under their wing.

 

Erwin  

check references. Nothing around. Yeah, so antastic and I see that your conference your virtual conference does not conflict with our so I fully expect to see you on November 12.

 

Kyle  

Yeah, myself and and my my co host, John or come in and I’m still trying to arm wrestle. Matt Bigley into it who I just mentioned there,

 

Erwin  

get the arm wrestle him hang up. Yeah, well,

 

Kyle  

you know what, I think it’s a scheduling thing. But you know what I will show up at his house and we will both physically drag him into the vehicle. He was with us the Got the last time we did it. So looking forward to it. Awesome.

 

Erwin  

All right. Oh, thanks for again for doing this. Thanks for your time. Have fun of hockey.

 

Kyle  

Yeah, thanks so much. Hey, nice to see virtually again and we’ll see you in person in just

 

Erwin  

over a month. Yeah, don’t remind me. Thanks, guys. Cheers Have a good one

 

Erwin  

before you go if you’re interested in learning more about an alternative means of cash flowing like hundreds of other real estate investors have already, then sign up to my newsletter and you’ll learn of the next free demonstration webinar I’ll be delivering on the subject of stock hacking. It’s much improved demonstration over the one that I gave to my cousin chubby at Thanksgiving dinner in 2019. He now averages 1% cash flow per week, and he’s a musician by trade. As a real estate investor myself, I got into real estate for the cash flow. But with the rising costs to operate a rental business, it’s just not the same as it was five to 10 years ago when I started there. Forgive the cash flow reduces your risk. The more you have, the more lumps you can absorb. And if you have none, or limited cash flow, you’re going to be paying out of your pocket like it did on a recent basement flood at my student rental in St. Catharines. Ontario. If you’re interested in learning more and register for free for my newsletter at www dot truth about real estate investing.ca. Enter your name and email address on the right side. We’ll include in the newsletter when we announce our next free stock hacker demonstration. Find out for yourself but so many real estate investors are doing to diversify and increase our cash flow. And if you can’t tell I love teaching and sharing this stuff.

 

 

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