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What's it like to invest in real estate in Canada? Are you tired of government overreach, wary of the "fixes" the government is putting into the economy? Do you avoid investing in rules and restriction-heavy environments like California, New York, and New Jersey? If so, you'll be interested in hearing just how much WORSE it is in Canada. Today's show will make you proud to be an American, although that was surely not the point when we recorded it. Matthew Ablakhan is a young motivated investor, the son of displaced Iraqi Christian parents. He and his brother started investing, then set up a mortgage company, and then a real estate brokerage. Together they lead a growing company in suburban Toronto. Canadian law rules out all but the wealthiest developers. Mortgage rules essentially require homeowners to make plans based on future interest rates (and who knows what they will be?). These and other issues make it challenging to make money in Canadian real estate. In fact, many Canadian investors choose to put their real estate investing money elsewhere. But Matthew and his team are sticking it out for now and doing well. We are going to hear all about that in a few minutes.
Bloomberg just published an article with the headline, "Wall Street Is Losing Out to Amateur Buyers in the Housing Slump" I have a question: Who are you calling an amateur? They assume the analysts in cubicles in New York are the pros and we are the amateurs simply because of bias. It's more than just semantics, but I submit that pros do whatever they do for money. Amateurs have other reasons. And it's the small investors like you and me who are making money at this game. The big institutional businesses, hedge funds and iBuyers, are not really making any money. I would submit that while the premise of the article is factually correct, the labels should be reversed. WE are they pros. THEY are the amateurs.
There's a lot going on in real estate right now and we need some time to unpack it. Which I'm going to do today.
Ok ok, I do know a lot about single family residential investing. But once you get into other asset classes, it's not all that hard to stump me. Fortunately, I know a lot of smart and experienced people from many different real estate asset classes and strategies. So ask whatever you want. We will know the answer or go get you one. [email protected].
We have some good questions coming up today.
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