Get Real Wealthy

Episode Summary

In this episode, Quentin talks with a member who immigrated to Canada 10 years ago and is looking to get back into real estate investing. He is working on a triplex in New Brunswick and also looking at properties in other provinces because of the cash flow potential, we cover how cash flow will help hold on to it, but it will not make you wealthy.  

The member shares that before immigrating to Canada 10 years ago, he bought an apartment in the UK. he rented the apartment, and it has been positively cash flowing. After a bad experience with private lending, he moved away from real estate. Now, he is considering taking the money he had against ETFs and stocks and putting it into real estate for better returns, and just had his offer accepted on a triplex in New Brunswick. He is looking to learn about the due diligence process and grow his network as well.

Quentin suggests that the bi-monthly Q&A calls are a great place to learn, share and network with other investors in the area. The member shares that his motivation behind investing in the New Brunswick area was the better tenant rules, lower purchase price and higher cash flow, as he is looking to get out of his 9 to 5 sooner and build up that passive cash flow. Quentin adds that “cash flow is not going to make you rich. It will help you to hold on to an asset, but it will not make you rich. You need to make sure that you're also getting some appreciation.”

He further suggests looking at other markets around Ontario that make sense and are in a good positive cash flow market such as Kingston, Peterborough and St. Catharines. Quentin also recommends going through the “Your First Three Properties in Real Estate” course, as it will help him find out which areas, he should invest in. He adds that there's always a reason why you have higher cap rates because usually there's a risk. Cap rate is based on the asset price, the asset location and the interest rate. He suggests comparing the debt against the asset versus the cap rate. He further advises “I want you to go back to the street that you purchased your triplex on, talk to a realtor in the area, get the last 10 years of appreciation on that asset on the property that you purchased…you will get an average appreciation rate over the last 10 years.”

Quentin adds that cash flow will help you keep the asset. It will also help you to leave your 9 to 5 but appreciation will make you wealthy and you want to be able to have both. He also suggests talking with investors during the Q&A calls and discussing their cash flow numbers in the areas that they are investing in. On the subject of whether multifamily buildings are a sound investment, Quentin says that “the key is if you are going to scale just make sure that you include all your maintenance repair vacancy and property management into your calculations…”

He also adds that if he bought two newly built fourplexes side by side and the titles merge, he might be able to get commercial financing on the property. As it's a new build, there are some benefits to that. Quentin suggests looking at getting two together and then getting commercial, like CMHC financing, which on the new build would be impressive.

Topics Discussed

• Introduction [00:00]
• His Background and Experience in Real Estate Investing [01:00]
• Why Did He Decide to Invest in the New Brunswick Area? [03:48]
• Are Multifamily Buildings Are a Good Real Estate Investment? [13:04]

Resources Mentioned

• Your First Three Properties

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who discovered real estate investing through property management. Her goal is to grow the property management company by finding off market deals and managing those properties. We cover some sources where she can find deals and why finding the highest and best use for a property might be a better strategy

The member shares that she worked as an analyst and started in real estate investing through property management. she bought her first property in Peterborough for $630,000, and now it is worth over $880,000. The cash flow so far after all expenses are paid is $1,500. Her goal is to grow their property management business, by finding off market deals and managing those properties themselves. Currently, they are trying to do flips in the area to generate that capital for these projects. 

Quentin adds that while her cash flow numbers are impressive, she should try to scale it. As for the financing, he says that you don't always have to be the person that has money or don't do the financing, adding “Oftentimes you bring people together who have different components or skills and also the Raising Money for Real Estate course is a good place to start.”  He also recommends going through the “Off Market and Discounted Properties Course” as it will teach her everything, she needs to learn to find those properties. 

Quentin also suggests contacting people behind the ‘We Buy Houses’ signs and asking them to add her to their buyer's list. Talking about why wholesalers often have high assignment fees, Quentin says that it has mainly to do with the marketing costs. He adds that “you need to get on as many lists as you can so that if an opportunity comes up that you can take it or not take it, or you have to do the marketing yourself and pay for the market.”  He further suggests that have a good relationship with realtors and show that you're going to actually close on the property. Sometimes they may have a pocket listing that they could perhaps share with you. 

Talking about the property values, he says that sometimes looking at what the potential highest and best use of the property is to add the value that you want. You have to find something and see something in the property that other people don't see, or you have to solve a problem that other people aren't willing to solve. if you can solve those problems, then you can buy something with some value to it. As long as you know what the cost is to solve that problem, you can take advantage of the value. 

Quentin adds that some people have a mental blockage, and it just depends on the person that has nothing to do and somebody who gives you a limit is because they're limited. He continues by adding that everybody's different and you have to find out and figure out what do you really want, what works best for you, and what the reason is that you're investing in real estate. If it's to replace your income, it's going to be different than somebody who perhaps is using it to like to retire from in 10 years.

On the subject of whether $10,000 a month is a realistic goal, he says that it is doable. He suggests listening to people who you resonate with and who resonate with you and ignoring all the noise. If you find somebody who was already doing what you want to do, then you should be listening to them. He says that by adding a few more properties to her portfolio, she can achieve this goal in the next three years or even sooner. 

Furthermore, there'll be ancillary benefits that come from investing in real estate that allow you to scale your income in different ways. In conclusion, he says that “just be careful that you don't get too transactional because what happens if you get too transactional is that you're always depending on the next transaction to eat.” 

Topics Discussed

• Introduction [00:00]
• His Background and Experience in Real Estate Investing [00:53]
• What Does She Rent Her Property for in Peterborough? [03:17]
• Does She Have Any Financing, or Talked to Anybody About Financing Flip Projects? [06:03]
• How Many Deals You Should Do in a Year? [15:22]
• Is $10,000 a Month in Cash Flow an Unrealistic Goal? [20:37]

Resources Mentioned

• Off Market and Discounted Properties - Course
• Raising Money for Real Estate - Course

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who is going through his first BRRR property. He is looking for advice on the refinancing part of the strategy. He doesn't have comparables in his area, but we cover some tips to help him maximize his appraisal.

The member shares that he is currently working on his first BRRR project in the Port Coburne area of Niagara region. His first investing endeavor is transforming a single-family home into a legal duplex. In addition, he has a condo in Calgary. Currently, he is trying to gauge what his next steps should be, while looking to prepare for refinancing his property.

The member shares that his Calgary property has depreciated in value. Quentin adds that while the value of the real estate does not always go up, it is important that the property has a positive cash flow. On the subject of property appraisals, Quentin recommends going through a course on the appraisal procedure, available in vault section. As for the preparation steps, Quentin says that the first one is to locate any comparables in the region and create an appraisal package for the appraiser. There are also samples on the website that have helped other members receive higher appraisals.

He adds “The key is always to, if you're expecting the appraisal to come in, let's say at $500,000. To prepare your package so that your appraisal looks like $550,000, and if you end up getting $525,000, then you know, it's a win win-win.” Quentin further adds that if the member does not get the desired appraisal, they have the option to either go for a second appraisal or take a shorter-term mortgage.

He prefers variable rate mortgage as with a variable rate, you can always refinance a variable rate with three months interest penalty.

On the subject of lack of comparables in the area, Quintin suggests picking a square footage of a house that's very similar to the square footage of his property.

Another option is to look for comparables a little further down the road. Out of the three property appraisal methods—comparison, income, and replacement—according

to Quentin, the ideal is the income method. In conclusion, he reiterates that the member must be present when the appraiser arrives. He needs to show a professional attitude and seriousness, as an appraisal is when you get paid.

Topics Discussed

Introduction [00:00]

His Background and Experience in Real Estate Investing [00:50]

Importance of Having Cash Flow on Assets [02:50]

How To Prepare for Property Appraisal [03:54]

Strategies to Get Desired Appraisal Value [05:25]

What If There Are No Comparable in The Area? [08:19]

Resources Mentioned

Appraisal Process - Course

Important Links

https://EducationREI.ca

https://GetRealWealthy.com

https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who is wanting to move from renting out condos to multifamily properties. We touch on how to find those off market deals and screening methods for potential joint venture partners. 

The member shares that he had always wanted to get into real estate, as his father was a real estate investor. Ten years ago, he bought a two-bedroom condo, where he rented one of the rooms. His wife also had a condo and she brought that into the marriage. Together, they also purchased a rental cottage that they are putting on Airbnb. He says that his goal is to use real estate as a retirement vehicle. He wants to invest in multifamily units and wants to find a joint venture partner. He is also looking for opportunities to network and connect with people who are already in the business through the Education REI network.

Quentin shares that there are always different parts to every deal, and you can always participate in different parts. When you're talking about multifamily, it is multifaceted. He adds that the member should be considering commercial multifamily properties like 12-to-20-unit range to get started and then move up to 20-to-40-unit range. He further adds that as there are different aspects of every deal, you have to be able to bring some parts to make it happen, such as bringing the actual property itself, bringing the funding to the deal, or helping out in the financing realm and net worth requirement. Another alternative that requires none of that is bringing money into the deal as a partner.

Quentin suggests going through the Multifamily Properties area of the Road Map section, such as Overcoming the Challenges of Commercial Residential Investing, Pros and Cons of Multifamily Properties, How to Acquire and Develop Land, and Electricity and Water Sub Metering.  He also suggests going through Raising Money for Real Estate System Joint Ventures, adding that whether it’s a big apartment building or a smaller multifamily unit property, the principles are very much the same. He says that if you want to do the lead generation piece, you should look at the Off Market and Discounted Properties Real Estate System.

Furthermore, Quentin suggests attending both of the Q&A sessions, for the beginners and the experienced investors, as the networking section of the latter would be a great opportunity for the member. He also recommends going through the Action Taker Goal Attainment Program, making the plan, going out and then doing it. On the subject of vetting potential JV partners, Quentin adds that the member can ask them for referrals to people who have invested in one of their previous projects. He adds that building relationships should be a priority, and if there are any agreements, have them reviewed by a lawyer to make sure that everything is done correctly.

He adds “You're kind of doing your due diligence on the person more than the deal itself, because there's lots of opportunities that come along, and then it's about finding the right one for you.”  Talking about how he can find off market deals, Quentin suggests going through the Off Market and Discounted Properties Real Estate System course, as it covers the necessary systems and processes. He also recommends being prepared in all aspects before talking to the brokers. He adds that following through is also important because once you stop following through, people will stop wanting to do business with you. 

In conclusion, Quentin says that while the journey is not an easy one, especially in the beginning, it gets easier over the time. You can create what you want, but it just takes time to do it. Be the director, be the leader, take a group of people together and move them forward. The things that people call you, see you as an asset, when you introduce yourself, introduce yourself with those skills. 

Topics Discussed

• Introduction [00:00]
• His Background and Experience in Real Estate Investing [01:13]
• Different Parts of Multi-Family Real Estate Investing [04:21]
• How to Vet Your Potential JV Partner? [12:02]
• Where to Find Deals for Multi-Family Projects [16:34]
• How to Lead, and Not Just be a Part of the Journey [22:43]

Resources Mentioned

• Overcoming The Challenges of Commercial Residential Investing 
• Pros and Cons of Multifamily Properties 
• How To Acquire and Develop Land
• Electricity And Water Sub Metering
• Off Market and Discounted Properties Real Estate System
• Raising Money for Real Estate Joint Ventures
• Action Taker, Goal Attainment Program

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who has a few investment properties spread out over long distances, we cover why it is important to focus on one area starting out and becoming an expert in that area. We also touch on a blend and extend for when you are feeling stuck in a fixed mortgage. 

The member, who is a nuclear engineer, started investing in real estate last year and now has three properties under his belt. He shares that his short-term goal is to get enough cash flow to cover the mortgage on his primary residence. In the long term, he wants to replace his active income of around $10,000 from his 9 to 5 job. Talking about the cash flow that he's getting from his properties, he says that they are rented under the market rate. 

Quentin suggests add one of the things he should consider is doing some ‘Cash for Keys’ and offering his tenants to leave, since there is a huge difference in market rent and the rent that he is getting. Quentin suggests going through the Property Management: Key Policies and Procedures course to get a better idea of how things should be done and why to take the time to do that. Furthermore, he should be careful if he is spreading his assets all over the place, adding “it's okay to invest in different areas. It's better to focus.”  The Your First Three Properties in Real Estate course identifies the fundamentals that he should be looking for in any area that he invests in. 

Talking about the available equity, that member shares that he has not maximized the available equity on his principal residence about plans to do so. Quentin recommends that he can do a ‘blend and extend’ to avoid the penalty for switching from fixed rate mortgage. He further adds that the member should have a secured line of credit on his principal residence and if his income is over $10,000 a month he should also be applying for unsecured lines of credit as well, adding “even if you don't use it, it's always good to have and not need the need and not have.” 

Quentin adds that the member should go to TD, BMO, CIVC, National Bank, then apply for a line of credit on usually all four or five banks at the same time, as long as he is comfortable with the debt and the numbers make sense. He also recommends asking for more than what he wants from the banks. He continues “those unsecured lines of credit, you know, the interest is tax deductible, but you have to make sure that you can service the debt, with the properties okay that everything makes sense.”   

Topics Discussed

• Introduction [00:00]
• Their Background and Experience in Real Estate Investing? [1:10]
• What Are His Goals with Real Estate Investing? [02:51]
• What is the Current Cash Flow Based on His Portfolio? [03:57]
• When Did he Purchase the Townhouses? [05:15]
• How Much Equity and Access to Line of Credits Does He Have? [09:18]

Resources Mentioned

• Property Management: Key Policies and Procedures
• Your First Three Properties in Real Estate
• Raising Money for Real Estate Joint Ventures

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with Jeff, a member who was a contractor. He joined DurhamREI to find new clients and to learn what real estate investing is all about. He was hesitant to start investing until he met some joint venture partners through networking. Now he's already on his second property. He shares his journey and what his experience has been since joining DurhamREI.

Jeff is a contractor by trade, who owns his own business, and he closed his first property, a rental in Peterborough, Ontario in January, a JV partnership. He says that he partnered up with someone he met through DurhamREI, which has been a great experience for him. It has allowed him to network, find likeminded people and make connections. He adds that he was nervous, being a first-time investor, and this person helped him feel more confident. He shared his knowledge with Jeff, and they did a deal together in Peterborough to get him started. Now, they are closing their second property which will be a flip in Peterborough. 

Talking about the first property, Jeff shares that it was an undervalued duplex, and the owner was having problems with the tenants. They were paying under market rent to start. After meeting the tenants, they realized that the tenants weren't the problem, and they seem to be taking care of the property extremely well. They got it at a time when the market had just started to hit that point where everybody was out-bidding each other. They were able to get it $20,000 undervalue, so we got it for $380,000 instead of the $400,000. He adds that the property is cash flowing barely but they are working out some solutions to get tenants in paying more rent. In the meantime, they have also gained appreciation, and he is really happy with the overall experience.

Quentin adds that “the great thing is that you were able to come up to an event, you know, make some connections, also then build on those connections with actually going out and doing a deal together, and then figuring out what works, what doesn't work and then gaining some confidence in order to, to get your, your own deals.”  Talking about his contracting business, Jeff shares that he started his own business after working with his father for 15 years. He adds that his original intention of joining DurhamREI was to promote his contracting business. Being there, he learned about real estate investing, and as a great added bonus, he made connections with some investors who were also looking for contractors and now 75% of his business is actually investors. 

Jeff further adds “when I joined, I was so unsure about joining a group of people, who obviously were at further stage in life investing, financially and it was really scary for me, but I did it anyway and I could not be happier.”  He says that there was a lot of knowledge to learn, and he can't put a number on the value. He gained so much value from being a member there and thinks that it the best decision he has ever made. As for his advice for investors when working with a contractor, Jeff suggests that you should always get more than one quote, because prices can range drastically, depending on the contractor and how busy they are. Try to work with someone local, it can be a little cheaper and more convenient, but do your due diligence when checking out a contractor. 

He concludes by adding that check out the references and work of a contractor, and if you can, go to a site in person rather than seeing pictures do that. Try to build a relationship, as it's not all about money. So, good contractors are hard to find, and when you find one, stick with them if they're reasonable in prices. That's kind of someone you can keep in your team.

Topics Discussed

• Introduction [00:00]
• Their Background and Experience in Real Estate Investing? [0:56]
• How His First Real Estate Investing Experience Went [2:55]
• His Contracting Business and How That Has Looked Over The years [5:42]
• His Advice for Investors When Working with a Contractor [8:52]
• How to Reach Out to Jeff? [10:08]

Resources Mentioned

• [email protected] 
• 905-439-0747

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who is starting his real estate career with a house hacking strategy. He changed his career and moved into construction, and got his real estate license as a way of investing in real estate. We found that he is running the risk of doing too much himself, and might want to look at outsourcing in order to grow faster. 

In terms of real estate investing, the member has rented out the basement of his property. He wants to eventually buy another house, rent out the upstairs, get another house with a basement apartment again, and build his way up that way. He left his job as an accountant five years ago, and took on construction and carpentry, with the end goal of getting into real estate. He has also earned his realtor license as well. 

Talking about what he wants to achieve by participating in the membership, he says that it will help him in gaining subject knowledge, networking, a work life balance and building some wealth for his kids as he wants it to be his career. Quentin adds that while the member likes to be hands-on with all aspects himself, he does not need to do any of that to be a real estate investor. He needs to figure out how to build a team around him to do the things that he doesn't like to do, while figuring out what he likes doing in the business and then focusing on that.

Quentin suggests starting with Your First Three Properties in Real Estate course, as most Realtors don't have the background in the investment side, where you really need to be, if you're going to go down this path. He also suggests using the Property Analyzer Tool, that helps you to analyze a property to see whether the numbers work or not. As the member likes to be hands-on with the renovations, there is also a video series on renovations. Quentin adds that he should take some time, go through the videos, and the actual case studies to get familiarized with the ins-and-outs of real estate investing. 

The member share that he wanted to learn how to do everything, so that he would have the knowledge. Quentin adds that in this business there are so many different roles that you could do. The industry allows for different ways for people to earn income, but what happens is you become transactional, where you are selling your time for dollars. That is not something you would want to do, so you have to build the asset base, and to do that it requires you to focus on adding assets into your portfolio. 

Quentin suggests attending the meetings, the Q&A calls, and networking events, and talking to other people to find out what they're doing, where they're buying and what makes sense. He also suggests using the Action Taker Goal Attainment Program. It helps you to outline what your 10-year goals are, what your three-year goals are, and then helps you to outline quarterly goals for yourself. He adds “if you write down in some way what you want, and you look at it, they are more likely to achieve it, than if you were to, you know, have an idea in your head.”

On the subject of investing in areas a little further away, Quentin says that you have to be careful when you're thinking about something like that. There is a criterion to stick to and he can identify that after going through the First Three Rental Properties Course. It highlights the fundamentals that you want to look at, and factors to take into consideration before making a decision. Once he has decided, he can join the Q&A calls, networking events, and find somebody else who has invested in that area. That way he can get a better idea. He concludes by saying that the challenge isn't usually the area, it's finding the right assets. 

Topics Discussed

• Introduction [00:00]
• What Does He Want to Achieve by Participating in the Membership? [02:53]
• Where Areas Should He Invest in? [15:00]

Resources Mentioned

•  First Three Properties in Real Estate – Vault
• Property Analyzer Tool
• Action Taker Goal Attainment Program
• First Three Rental Properties Course – Vault

• Important Links
• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a couple who has a single-family rental that they would like to increase its cash flow, and they are also coming up with a mortgage renewal. We cove why moving to a variable rate mortgage will give them more options for further investing and what situations work best for putting properties under a corporation. 

They purchased an investment property, a freehold townhouse five years ago in Alliston. They want to expand their portfolio, as they want to leave a property each for their sons, and help them in their retirement. After doing research into real estate investing, they have been excited about the possibilities that it can offer. For their next property, they are looking to buy a duplex or a triplex. They have reached out to some of Quentin’s students in the Durham Region, to join them and see and learn how the whole process works. While there Alliston property turned out great, it has a cash flow problem. 

Currently, their mortgage payment is $1297 a month after property taxes, while the total mortgage amount is $227k. Their property is currently valued around $600,000. As for the current rent of the property, they are charging $1610, but if they were to re rent it, they could get over $2000. Their mortgage is coming due December. They went with a fixed rate, and they have the option to refinance early. While doing research about their next purchase, it has only led to further confusion about whether or not they should leave this property in their personal names, and then going forward, open up a new company. 

Quentin suggests going through the ‘When to Use a Corporation and When Not To Use A Corporation’ course in the world to get an idea of both. Having a corporation is a good idea if they are looking to build a portfolio of three, four or more properties. The upside of having corporate is that it doesn't appear on their personal name, but that's only a benefit if they're going to multiple lenders. He adds that if they're not sure, the thing is they can always come back and do Section 85 later. He says that one of the reasons why they might want to speed up the process is that if the Liberal government gets reelected and they change capital gains tax. 

Quentin suggests that for the amount of funds that they have access to with that CIVC or Scotia Bank mortgage, they should make sure that whatever they give them, they should maximize the loan that they have access to through the line of credit component to it. He adds that when they're doing 100% financing, it's tougher to make the numbers work but it's good to be able to access funds because then it will allow them to invest in other projects. He suggests that never go fixed rate again. 

He further says that they will never be able to catch up or take advantage of changes in interest rates, but they can always lock in. If they feel uncomfortable about anything, but lock in for a year. As an investor, access to capital is even more important because it can prevent or allow them to access more deals, and if they have a variable rate mortgage, they can always exit a variable rate mortgage by paying three months interest penalty and then access funds. 

The members share their plans to sell their primary residence in the next year, so Quentin suggests going through the Getting Higher Appraisals: The Basics. He adds that a lot of people don't understand this but as a real estate investor, that's when you get paid on appraisals, because when you do an appraisal, you get access to funds either through a line of credit or remortgaging the property. He also recommends going through the content on Property Analyzer, as it helps learn about what to look for. 

Talking about another way to get an idea about the rent is just going to Kijiji and or Facebook marketplace and look for ads in their area and see what the rents are, because that way they get a better sense of what something is renting for, or they can talk to a realtor in the area. The members share that the reason that they went directly to Scotia is they don't have any kind of a line of credit with using the equity from the house and Alliston property, Quentin adds that they should start out right away, because it can take some time, and update them once they get it done. 

Quentin adds that the mortgage brokers are really helpful in finding other types of lenders and putting it together. They can help with a plan, particularly if they're looking to buy multiple properties. They can help plan out their next few purchases rather than usually somebody who's at a bank will only look at their next purchase. It may not help them or position them well for those future purchases, so it's something to keep in mind. Talking about how they can ask their tenants to vacate the property, he says that they should use the ‘Cash for Keys’ approach, where both parties sign an N11, declaring that both have agreed to end the tenancy, for a certain amount of money. They could also apply to The Landlord and Tenant Board for an above the guideline increase, if they have done a capital expense. 

Talking about whether they should sell the property or not, Quentin says that the problem with single family home properties is that at a certain point, they won't be able to leverage it enough to access any equity. If it were an apartment building, they could bring it up to the maximum loan to value, but a one-to-four-unit property is based on the rent numbers, and on comparables. Then they may have equity that they can't access, because the rents don't support them taking more.

He suggests going through the calculation called the Return on Equity Calculation, as it is something that he does for his portfolio. They may want to do on their property, just to see what that looks like. In conclusion, he suggests attending the Q&A calls, participate in the networking with other members, and get feedback if they have any questions, because “your journey is always easier when you take it with somebody else.”

Topics Discussed

• Introduction [00:00]
• Are They Looking to Expand Their Portfolio? [02:03]
• What is the Current Mortgage that they Have on the Alliston Property? [05:23]
• What Would the Rent be if they were to Re-rent it? [06:12]
• Do They Have Access to the Equity in Some Form on the Townhouse? [06:53]
• Have they Talked to Any Mortgage Broker for Financing their Next Property? [22:53]
• Would it Make Sense to Sell the Property? [31:47]

Resources Mentioned

•  When To Use A Corporation And When Not To Use A Corporation – Vault
• Getting Higher Appraisals: The Basics – Vault
• Property Analyzer Tool
• Your First Three Properties – Vault
• Return on Equity Calculation – Calculation 

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

In this episode, Quentin talks with member, who is a new immigrant to Canada and new to investing. His future goals are to invest in multifamily residential complexes, and help new immigrants with getting started in real estate investing. 

Talking about his background, he shares that he is fairly new to Canada, and got interested in real estate after reading Rich Dad, Poor Dad, and getting connected with a few people in the Kitchener area. He has one property, where they renovated the basement or rented it out. Now, his goal is to focus on multifamily triplexes, fourplexes, and wants to focus on buying homes, joint venture agreements, and raising money through people. He says that he would like to concentrate on buying and holding, and slowly expand over time. He wants to purchase his second property in the next six months, and wants Quentin to guide him through the process. 

Talking about financing, he says that he does not have money, and has $30,000 in student debt as well. Their previous property was a joint venture agreement. Now, they can get 80 percent of the equity on that property. Furthermore, he just started his new job, and his wife is about to leave hers, to work part-time. Quentin adds that they need to get onto their financing right away because they're need to get a letter from his wife’s current employer stating that she has been working there for two years so that they can use that for financing purposes. They may have trouble if his wife leaves her position, and him only starting a position to be able to qualify for another mortgage going forward. 

Quentin suggests reaching out to a couple of brokers, and bank lender just to get an idea of their options. The member adds that he is looking to learn about how to raise finance, connect with people, have those conversations, and find the properties that they will be interested in. Quentin suggests that he should use a property analyzer to come up with the numbers, to be able to share with people so they understand and know what he is talking about. He adds that he really wants to come across as the expert, and to do that, he needs to invest some time like he did in his masters, in order to invest in his own education on this. 

Quentin says that if he is looking at finding off market properties and also raising money, there are two main courses. One is called Raising Money for Real Estate System Joint Ventures, and the other one is Off Market Discounted Property System. Quentin continues “My thing is, do something with it, please. Like I'm providing it to you so that you can do something with it.” He suggests the member to go to the Q&A calls, that are done twice a month, hang out with other people, network with other people locally who are investing in your area, there's no better way in time to do this because we're so interconnected. If he has questions, he can bring them up at the call.

In conclusion, the member shares his long-term vision to help other immigrants putting their real estate plans in place. He has a show on CBC radio, focused on immigrants and they're looking to expand it over time. He wants to use it to build that platform, build himself, his brand, learn real estates, but also share it with a lot of immigrants. Quentin concludes it by saying that this is one of the great benefits of Canada. We do have a lot of opportunity here and we can do quite a bit. 

Topics Discussed

• Introduction [00:00:00]
• What Kind of Multifamily Complexes Does He Want? [00:02:44]
• What is the Status of His Financing? [00:03:08]
• Is He Looking to Raise Funds or is He Going to Purchase the Triplex Himself? [00:04:31]
• How Long Has His Wife Been Working at Her Job? [00:06:20]
• Who's on Mortgage on Their Property? [00:07:08]
• Does He Have a Broker that He is Working with? [00:09:20]
• Which Property Analyzer Did He Use to Show Returns to his Ex-Boss? [00:10:10]

Important Links and Resources

• educationREI.ca
• https://getrealwealthy.com/ 
• Rich Dad, Poor Dad by Robert Kiyosaki

Episode Summary

In this episode, Quentin talks with a member who is looking to leverage their primary residence in order to enter the real estate investing market. When looking for financing, we explore why you should approach it as building a portfolio and not just one property.

Talking about their background in real estate, the member shares that they own their house free and clear, and over the last year or two, he has been looking to leverage that. From a financial standpoint, they have been approved for a HELOC, and the funds have been there, up to $360,000 on this current house, as well as a mortgage of up to $700,000. Now, he’s looking to get into the investment property realm, and from the research that he has been doing, he has settled on the Peterborough area. His plan is to do the long-term strategy, and at least get one property and then see if it's for him, if he enjoys it, and if it makes sense.

Quentin starts off by saying that there's lots of ways to do, but you got to decide for yourself, and based on the HELOC that they already have, they may be able to get up to five properties based on their income and what they are doing, rather than just one. He adds “the thing you want to think about is how can I plan out more, if I wanted to have more and not get stuck.” Additionally, how you want to do financing is, you want to look at how can I get to wherever my goal is, you don't want to be put in a product that gets you stuck, so that you can't move forward for two years or three years. He suggests that you should also be talking to a couple other people, just to see what they have to say, and what that looks like to you. Your First Three Properties in Real Estate a good course to learn fundamentals, to help him decide in this area.

On the subject of strategies, Quentin says that the key that you want to ensure is that you're cashflow positive on your own. Don't worry about what the market is going to do. Think about buying a property that cash flows, that you can hold for a long period of time, that's going to be easy for you to manage as an asset or hire a property manager in the area to manage it for you. What you want to do is make sure that the cash flow covers the cost of a property manager maintenance repairs, that you can see all that's considered, and that's what you look at your property analyzer for. if you have a longer-term point of view, you can often ignore a lot of the gyrations of the market.

As for their house, they have a lot of equity, and Quentin says that it’s great that they have access to utilize the equity, he continues “the best possible way, don't think about the next property, think about how I can build a portfolio.” what you would look at is positioning yourself so that you could add some value. Once you do that, you refinance that rental property, use the money that you get from the refinance to pay back your initial investment, make sure that you can float the line of credit using the cash flow from the rental property included in your number. One of the things that people don't often tell us you can get a new mortgage on your rental property with a HELOC, and what the member is trying to do is something called the Smith Maneuver.

Quentin adds that the next piece for them would be, it depends on what they want to do, whether they manage it themselves or not, watch the five-hour course on property management, key policies and procedures. Furthermore, they also have a whole course around COVID and rental properties. In conclusion, Quentin mentions the Q&A calls, where members can ask their questions. As for his concerns about finding tenants, Quentin shares that due to rent control in Ontario, the byproduct of that is a lack of supply everywhere, there is a lack of supply across. This means that finding tenants should not be a problem.

Topics Discussed

·        Introduction[00:00:00]

·        WhichLender are they Getting 700K From?

[00:04:34]

·        How You Should Get Your Financing

[00:06:08]

·        What Strategy is He Thinking About Using for His Properties? [00:07:58]

·        When Did He Get His House and How Much Has it Improved in Value?[00:09:41]

·        What to Do After Using HELOC as the Down Payment? [00:13:10]

·        Changes Brought About by COVID-19? [00:18:19]

·        Is it Difficult to Find Tenants? [00:21:42]

Important Links and Resources

https://EducationREI.ca

https://GetRealWealthy.com

https://DurhamREI.ca