Get Real Wealthy

In this episode of Get Real Wealthy Season 4, Quentin D'Souza talks about uncovering hidden opportunities in apartment building investing.

Quentin says that real estate investing offers many opportunities. To create value, you need to increase the net operating income, which is income minus expenses before debt. He adds that there are five hidden opportunities to increase net operating income. The first opportunity is to look for properties with below-market rent. He adds that taking advantage of the spread between current rents and projected rents can benefit the buyer. Rent control in places like Ontario creates a distorted market, making it difficult for new tenants and the production of new units. Therefore, when buying rental property, finding below-market rents with the potential for a rent increase is an opportunity.

The second opportunity is to look for properties that have been poorly managed, leading to disorganization and lack of repairs. This can present an opening for you to acquire the building, come in with a professional management company and solve these problems. The third opportunity is to look for buildings experiencing tenant management issues, where the owners or property managers are not addressing illegal activities, such as drug dealing, and not handling late payments or evictions properly. A skilled investor can purchase the property at a lower price, solve the issues, and achieve a better return on investment.

The fourth opportunity is to look for properties with poor records management. This can result in difficulty finding bills, leases, and other important documents. Quentin says you can take advantage of this opportunity by finding ways to solve the problem and make more money as a real estate investor. Lastly, he suggests looking for buildings with neglected maintenance, particularly those under rent control with low rents. The building owners have no motivation to maintain the property, leading to a rundown building. But if an opportunity arises to turn over the units and create value, it can be an excellent opportunity for you as an investor.

In conclusion, Quentin highlights that these hidden opportunities in apartment building investing, from finding below-market rent properties to solving poor records management issues, present great opportunities for investors. By identifying and addressing these opportunities, investors can achieve a better return on investment. To further assist in this endeavor, he recommends two books: "Property Management Toolbox" and "Filling Vacancies Toolbox," which offer valuable insights on creating value in buildings through effective management.

Important

Links and Resources

·        Property Management Toolbox

·        Filling Vacancies Toolbox

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 4, Quentin D'Souza discusses the pros and cons of property management vs. self-management.

Quentin says that there are several benefits to hiring a third-party property management company. Firstly, experienced companies understand problem tenants in the area and can guide the property owner through tenant selection. Secondly, third-party property managers can effectively handle uncomfortable situations and legal issues. They have knowledge of the necessary documentation and contacts for paralegals or legal lawyers. They act as intermediaries between the property owner and tenant, avoiding emotional involvement by the owner. Thirdly, professional management offers peace of mind for those who do not live near their property, as local managers can handle any situation quickly and efficiently. Fourthly, property management companies have a list of maintenance and repair professionals, saving time and allowing the owner to focus on acquiring new properties. Lastly, they have extensive experience managing tenants and assets, making them efficient in handling current properties and tenants.

As for the pros and cons of self-management, Quentin says that the first advantage is that all decisions made align with your business goals as you make them. The second point is that while you save on the cost of a professional manager, you also sacrifice your time. Therefore, you have to determine if the time spent is worth the cost savings. Third, some individuals believe that a manager may not maintain the property as thoroughly as an owner would, though Quentin disagrees. He believes that some owners may have extra time and a desire to manage the property themselves. Fourth, self-managing property owners tend to search for the lowest prices and compare quotes from various sources, which saves money and keeps costs in line. Finally, he says that with self-management, you have complete control over the asset, but it also requires a lot of time.

In conclusion, Quentin adds that considering the time and size when deciding between hiring a third-party property management or self-managing. Self-management may be suitable for one or two properties, but a property manager may be needed for five or more. He recommends the books, "The Property Management Toolbox" and "The Filling Vacancies Toolbox," available on Amazon, for an overview of managing real estate assets and being a property manager."

Important

Links and Resources

·        The Property Management Toolbox

·        Filling Vacancies Toolbox

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 4, Quentin D'Souza talks about five things to watch out for on real estate listings for apartment buildings and the need for due diligence.

First, Quentin suggests that you should be cautious when a listing states that a building or roof has recently replaced an AC. The term "recently" can be ambiguous and should be verified with a specific date to ensure the property's true condition. Secondly, he suggests that you should be aware of listings that advertise potential rents. These potential rents may not align with the current net operating income and can affect financing options. He suggests carefully evaluating the current net operating income and comparing it to the potential rent to ensure that you are not overpaying for the property.

Thirdly, Quentin adds that you should look at listings that describe a property as located in an "up-and-coming neighborhood" more closely. Such neighborhoods may have a high crime rate or be undergoing major changes, which can affect the tenant profile and the property's overall value. He recommends visiting the neighborhood, talking to the local residents, and gathering as much information as possible about the area. Fourthly, Quentin says you should be aware of listings describing a building as a "century building" or "historical building." Such buildings may be subject to stricter regulations and have to go through a Heritage Committee, which can make them more expensive to make changes to. So, you need to consider if you are willing to take on the added expenses and regulations that come with owning a century or historical building.

Lastly, Quentin suggests that you should be cautious of listings that advertise "guaranteed rent." This may mean that the tenants are on social assistance, which can make it difficult to turn over the property and make it challenging to increase the rental income. He suggests carefully evaluating the risks and benefits of such property before making an offer. As a bonus tip, Quentin adds that you should also pay attention to the location of the property and its surroundings when reviewing the listings. Be aware of properties located near gas stations, former dry cleaners, or in industrial areas. A quick Google search and checking the Street View can give you a good idea of what's around the building.

In conclusion, Quentin suggests that you should pay close attention to the details in real estate listings, do proper due diligence, and keep in mind the potential red flags. By doing so, they can make informed decisions and avoid potential pitfalls in the process of buying an apartment building.

Important Links and Resources

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 4, Quentin shares tips and tricks for finding the right real estate investing coach or advisor.

Quentin says that many people are eager to sell their services on social media, and it's important to be cautious when looking for a coach or advisor. There are a few steps that you can follow to find the right mentor. He suggests that the first step in finding the right coach is determining what specific topics you're interested in learning about. Joining a real estate club, like Durham REI, can help you get a general overview of different aspects of investing in the Canadian real estate market. Once you have a general understanding, Quentin advises to figure out exactly what you want to learn from an advisor or coach.

The second step is to understand the track record of the advisor. Quentin suggests looking for an advisor who has invested for a full real estate cycle and has experience with different types of strategies during different parts of the cycle. He further adds, "you got to be careful who you're getting advice from because they may push you down the path that leads you into the same problems that they went into." The third step is ensuring the coach or advisor is still an active investor. Quentin says that you have to be cautious if the coach hasn't bought a property or done a flip project in the last few years, as they may not have current experience in the market and knowledge of the current rules and regulations.

Quentin says that the fourth step is considering the coach's qualifications and credentials. He mentions that one red flag to look out for is if coaching is the main source of income for the coach or advisor. He suggests being wary of their past success in real estate investing, and if they are currently active in the real estate investing space. You should also be cautious of coaching programs where you pay a large lump sum of money and have access to the program forever, as you may outgrow the program, and the coach may focus on bringing in new clients instead of moving you to a higher level.

The fifth step is to consider the support you will get from the coaching program. Quentin suggests looking for weekly calls, WhatsApp groups, quarterly masterminds, accountability programs, and access to videos, courses, books, and other materials. Lastly, he suggests looking for references from former coaching clients. Quentin suggests looking for pictures, quotes, and testimonials from former clients to get an idea of their experiences with the program.

In conclusion, Quentin emphasizes the importance of being cautious and doing your research when looking for a real estate investing coach or advisor. These steps will help you find the perfect coach to help you in your real estate investing journey.

Important Links and Resources

·        [email protected]

• Coaching Application

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 4, Quentin talks about the challenges faced by those deciding to become full-time real estate investors.

Quentin starts by sharing his personal experience of transitioning from being a full-time teacher to a full-time real estate investor. He became a full-time investor because he wanted to do more than just teaching. Quentin was a full-time teacher and consultant until 2014 and banked his income and used the income from his portfolio to pay for his expenses. He demonstrated the ability to do this for an entire year before leaving his job. Once he left his job, he could invest more in real estate, including flipping projects, rent-to-own properties, etc. He also began investing in apartment buildings and multi-unit properties in 2015, allowing him to grow his asset base while spending less time on these investments.

He adds that often those who find their time totally consumed by their job struggle to earn additional income. Quentin discovered that real estate provided a means to continue earning income without dedicating hours to the task and at a pace that worked well for him and his family. He adds that while this option may not be for everyone and there is nothing wrong with having a job, real estate investing can help you create more time, location, financial, and thought freedom, adding, "those freedoms are all things that are important to me."

Quentin says that one of the big challenges for individuals who invest full-time is the possibility of being equity-rich but cashflow-poor. They may have assets with significant equity but cannot access them due to borrowing regulations and practices. The cash flow from rental properties can also be unpredictable, with some months being low in cash flow and others being higher. As a result, for those who rely on a small number of rental properties for income, your income can get very distorted. He adds that, therefore, you need to prepare yourself. First, you need to figure out your true spending habits, as they may differ significantly from when you were employed. You should also consider the tax implications of your expenses and how it affects your income.

Secondly, he says that it is essential to have a cash flow buffer in place. Income can be unpredictable and may fluctuate over a three to four-month period. He further adds that you should also take three to five months of income and place it in a separate account that is not easily accessible. This way, the funds will be available to cover monthly expenses during periods of instability. Additionally, it is important to periodically refresh this buffer. Thirdly, before leaving a job, you should get any financing or refinancing done as early as possible. Financing often depends on income history, and if you don't have a history of two years in your workplace, it may be difficult to get financing.

Fourthly, he recommends establishing multiple income streams, either prior to leaving the job or after. He adds that having multiple income streams can add up over time and help smooth out the ups and downs. Lastly, he suggests seeking support and advice from other full-time investors can be beneficial. Joining a local real estate investment group or seeking education from groups like https://DurhamREI.ca and https://EducationREI.ca can provide opportunities to learn from and connect with other full-time investors who can offer tips and insights.

In conclusion, he says that while becoming a full-time real estate investor can offer more time, location, financial and thought freedom, it also poses challenges. To overcome these challenges, it is important to prepare yourself by understanding your true expenses, creating multiple income streams, and seeking support from other full-time investors.

Important Links and Resources

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 4, Quentin talks about powerful negotiation techniques for real estate investors who are working directly with sellers.

Quentin says that to prepare for negotiations with sellers, it is important to gather as much information as possible about their motivations for selling. When working directly with a seller, you can gather more information as you do not have a realtor acting as a gatekeeper and filtering the information shared with you. Take advantage of this opportunity to ask the seller about their reasons for selling and gather as much information as possible. It is also essential to keep the conversation with the seller conversational and avoid making it feel like an interrogation. This will help establish a good rapport and make the seller more comfortable sharing information with you.

He adds that by focusing on the seller's motivations and understanding why they are selling, you can position the opportunity in a way that creates a win-win situation for both parties. It is important to anticipate and prepare for potential issues or objections during the negotiation process. Coming up with solutions ahead of time makes it easier to deal with objections with a solution or a way to get a solution. For example, suppose a seller wants a quick closing on a property but the buyer needs more time for financing. In that case, the buyer can suggest offering a vendor take-back mortgage or seller financing option to speed up the closing process. This can be a win-win solution as it allows the seller to close more quickly while also providing the buyer with financing.

Quentin further adds that instead of offering just one agreement, you can offer multiple options to the seller, such as one with a higher price and seller financing and one with a lower price without seller financing. This allows the seller to choose between two options rather than deciding between you and another buyer. It is important to keep the options simple and not overly confusing, as a confused mind is more likely to say no. Practice negotiating with different sellers to improve your skills and increase your chances of success.

In conclusion, he says that to improve negotiating skills, it is important to practice negotiation and be willing to walk away from a deal if necessary. To learn more about negotiation tactics, consider reading the book "Finding Properties Toolbox: Buying Real Estate at a Discount" or visiting findingdiscountedproperties.com.

Important Links and Resources

·        The Book Finding Properties Toolbox – Book

·        findingdiscountedproperties.com

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 4, Quentin discusses the different ways to build an investment team in real estate: solo investing, partnering with other investors, and general partners.

Quentin starts by talking about soloi nvesting. Solo investors focus on building a team of professionals such as property managers, insurance advisors, and contractors to help them run their businesses. This approach allows them to get a higher return on their investment, but it also requires a larger time commitment. The second approach is bringing on partners. They'll take on a smaller cut of the equity, but they'll be able to scale their time more because they'll have other partners and an established team with a system and process that are working for them.

General partners are real estate investors who work with other investors to build a team. Members can focus on their strengths and work together to build a larger business. This approach may result in a lower equity amount per project, but it also leads to a larger overall cash flow. Quentin adds that it just depends on your approach and how you want to do things.

Quentin also offers some tips and strategies for identifying which approach to take and building an effective investment team. First, to understand your strengths and weaknesses, make a list of what you believe they are and ask three friends for their input. Secondly, building a good reputation is also important when building a team or partnering with others. To gauge your reputation, ask three friends and three acquaintances for their perception of it. This can help you understand what has been built already and decide whether to build on it or make a slight change.

He further adds that It's important to plan your exit strategy when building or working with a team in real estatei nvesting. If you're a solo investor, you may simply sell the asset. If you have multiple investors, you may need to buy out some passive investors overt ime. If you're building a team of active investors to grow your portfolio,your exit strategy may involve selling to a REIT or other fund. Consider youra pproach to building a team and plan your exit accordingly.

In conclusion, Quentin says that reale state investors can achieve their financial goals by following these tips and choosing the right approach for building an investment team. To learn morea bout building an investment team and real estate investing, visit EducationRei or Durham Rei.com. These resources can provide valuable guidance and helpy ou make informed investment decisions.

Important Links and

Resources

·       https://www.instagram.com/qmanrei 

·       [email protected]

·       https://EducationREI.ca

·       https://GetRealWealthy.com

·       https://DurhamREI.ca

In this episode of Get Real Wealthy Season 3, Quentin talks about four important things young adults need to know to buy real estate.

First, Quentin emphasizes the importance of income history, which is essential for securing a mortgage from a bank. Banks typically require at least two years of income that can support mortgage payments before approving a loan. If you don't have this income history, it may be difficult to purchase a property. However, there are mortgage products available that can help those without income history, but they often require a higher down payment.

The second is a good credit score. A good credit score shows that you are responsible with credit and will be able to pay back a mortgage. It's important to monitor your credit and continue to build it by taking on loans and credit cards that you can handle and paying them off on time. The third is a down payment. These are the funds you need to purchase a property. One way to save for a down payment is through a milestone savings account, which we discussed in the previous episode. Another way is to receive a gift from a family member. You can also partner with someone who has a good income history and credit score in order to purchase a property together.

Lastly, he adds that education and mentorship are critical in real estate investing. Surrounding oneself with mentors and individuals who are already investing in real estate can provide valuable guidance and help young adults make informed decisions about their investments. There are many online communities and forums, such as EducationREI.ca and DurhamREI.ca, where young adults can connect with like-minded individuals and learn more about real estate investing. They can help you understand different aspects of investing, such as the importance of understanding the difference between positive cash flow and expenses and how to analyze properties to ensure they are a good investment.

In conclusion, income history, a good credit score, a down payment, and education and mentorship are four key concepts that you need to know to buy real estate as a young adult. By understanding these four things, young adults can be better prepared to buy real estate, reach their financial goals, and achieve financial freedom.

Important Links and Resources

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

In this episode of Get Real Wealthy Season 3, Quentin talks the importance of using bank accounts to save and invest better.

Quentin says that as a young adult, it's crucial to take control of your financial situation and make smart decisions about how you manage your money. One of the first steps in doing this is to choose the right bank accounts for your needs. Quentin suggests using student accounts or low-cost bank accounts that offer a good balance between savings and access to your money. It's important to carefully examine the fees being charged by these accounts and negotiate with the bank if necessary. Many banks are willing to offer lower fees or other incentives to keep your business, so don't be afraid to shop around and compare offers.

Quentin further adds that another strategy that can be helpful is to have at least three separate bank accounts to segment your funds into different buckets. This allows you to allocate your money to different goals and priorities, and makes it easier to track your spending and savings. He suggests having the following three accounts:

• A milestone savings accounts for big purchases, such as a car or a house.

• A lifestyle or social account for spending on necessities, such as food and transportation, and for building credit.

• An investment account for buying paper assets, such as stocks and bonds.

By using these three accounts, you can save and invest for the future while still having access to funds for your daily needs. He also suggests starting with paper statements rather than online statements, at least at the beginning. This can help you better track your spending and avoid missed payments, which can damage your credit and cost you money in the long run.

For homework, he says that you should find three accounts that you can open with the same bank or institution that costs you $0 per month in order to do online transactions. So, if you do online transactions, you'll get zero charge per month. In conclusion, he says that by using student or low-cost bank accounts and segmenting your funds into different accounts, you can take control of your financial situation and reach your goals as a young adult. With these strategies, you can save and invest more effectively and build a solid foundation for your future.

Important Links and Resources

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

Episode Summary

In this episode of Get Real Wealthy Season 3, Quentin talks about managing your time and earning more than what you spend.

Quentin says that while he usually focuses on investment earnings, for people starting out, leveraging earnings from different sources, such as part-time, gig-based jobs, can be a great way of making more money. He adds, "things like the gig economy are based on how hard you want to work; you can work more and get paid more in a shorter amount of time. And therefore, you manage your time better, but you can earn more money…." He says that one of the things he wishes he had done as a young adult was to take advantage of opportunities that allow you to learn while you earn.

One of the ways to utilize that is by working on something that aligns with your ten-year goals. For example, you could be working in a beginner-level position in real estate; learn the steps through the process. What is it that needs to happen? And when does it need to happen? Another thing you could do is become an assistant to a business owner or entrepreneur, where you can learn what is going on to earn some income, and then you can go off and do it on your own.

Now, if you could use some of the gig economies to support you while you're learning, there's an opportunity to continue growing. The other piece that we want to discuss is when you're earning more than what you're spending every month is to have a frugal mindset versus spending what you have. This way, you can use the leftover money to invest. Furthermore, you have to watch out for the lifestyle creep. He adds, "Remember, you are at a different place than other people are; you're starting out, and you want to keep that frugal mindset, which is saving money versus spending all of what you have…."

In conclusion, he says that the homework for this episode is to look at what you spend each month, and I want you to try to save at least 20% on what you spend every month. This way, you can get started on your journey of the frugal mindset.

Important Links and Resources

·        https://www.instagram.com/qmanrei 

·        [email protected]

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·       https://DurhamREI.ca