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

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

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

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

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

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

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

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

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

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

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

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

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

To Listen:

HELP US OUT!

BEFORE YOU GO…

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

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

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

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

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

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

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

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

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

Sponsored by:

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

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

Erwin

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

Disclaimer:

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