Your Way Into Real Estate

Always strive to be better and proud of your work! In this episode, Natalie speaks with Corey Mitchell, owner of Sticks and Stones Custom Homes again to discuss the difference between custom and semi-custom home builds.

Fully custom homes start from ground zero and are truly customized from the ground up. Every aspect of the build is considered and this process takes two to three years to complete. A semi-custom home is quite different. The exterior and interior floor plans are set, but there is a little room for preferences on interior choices such as changing color, carpet, or selecting appliances.

"I find that buyers are much less stressed out with having fewer decisions to make," Natalie states, demonstrating her preference for semi-custom homes.

When presenting a home for sale, staging is critical. If you walk into an empty home, the interested buyer will struggle. The inability to visualize a space is a hindrance for so many people. It is game-changing to get homes staged. Market cycles in the build world are also critical. What is the economic environment going to look like in 2 years? This is a big determinant in how profitable your project will be, as a builder.

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Enjoying the show? Please give a 5-star rating and review on Apple Podcasts - every review helps others find the podcast!

As a thank you for the review, you'll get the first three chapters of my book for free! Post a screenshot of your review on Instagram, tag @nataliemitchell_reinvestor and I'll send you the first three chapters of "Investing In Her-Self: How A Working Single Mother Created Wealth Through Real Estate and How You Can Too!"

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Natalie Mitchell: website | instagram | facebook

Corey Mitchell - Sticks & Stones Custom homes: website | instagram | linkedin

Friend or Foe? The mortgage frenzy of 2021

In this episode, Natalie is joined again by mortgage expert Wendy Goodsir. They debate the current low-interest mortgage rates and what that means for real estate purchases and refinancing, both short-term and long-term.

There are two kinds of interest rates: fixed and variable.). With the Pandemic and current economic situation, we've been experiencing very low-interest rates, close to 1.0%, instead of the average 3.5%! This has spiked a crazy buying market as people are looking to take advantage of "free money.". Real estate markets in every Canadian province have exploded.

"Real estate is always a long-term investment, never a short term to make money overnight."

In turn, Natalie and Wendy offer some wise future market predictions. Buying anything on speculation is usually a bad idea and you should buy for what your life is now. Even on a 5-year mortgage, you need a 15-25 year plan. Understand 5-year cycles. That discounted borrowing will end before your 5-year cycle does… and it will end before reality sets in.

So, enjoy the discounted rates. If you're anticipating any life change, pretend you're at a realistic rate of about 3% now and take the difference between what you're paying right now and what that would be when rates renew. If it's feasible, dump that difference into your savings account. There's no way you're going to walk through the next 5 years of your life without a major life change. Bank the difference!

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Enjoying the show? Please give a 5-star rating and review on Apple Podcasts. Every review helps others find the podcast!

As a thank you for the review, you'll get the first three chapters of my book for free! Post a screenshot of your review on Instagram, tag @nataliemitchell_reinvestor, and I'll send you the first three chapters of "Investing In Her-Self: How A Working Single Mother Created Wealth Through Real Estate and How You Can Too!"

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Natalie Mitchell: website | instagram | facebook

Wendy Goodsir: website | facebook

Building Series: So You want to be a home builder?

Enjoy the friendly banter as Natalie chats with her ex-husband about his transition into real estate investing! This week, Corey Mitchell of Sticks & Stones Custom Homes shares his journey from the stock market to owning his own home-building company. Building from scratch is not a well-known submarket of the real estate industry.

Corey's days in construction began when he participated in a flip with Natalie back in 2010. However, this project wasn't your normal flip. They gutted it, moving staircases, dropping floors, and many more strenuous renovations. It was house surgery and not for the faint of heart! But that was how Corey fell in love with the possibility of designing a home from start to finish. And he was hooked!

For Corey, the process is more rewarding than the result. It's about the journey. In real estate, time is either your best friend or your worst enemy. A lot of builders don't focus on improvement over time in their designs. If they're not willing to spend the extra dollar on the little things that make a massive difference, we don't know what else they've skimped on that you can't see. Buyers tend to focus on the pretty things and they forget that a home is more than the interior finishings. It's important to start asking questions like, "What's behind the walls?"

"I want to make sure the decisions I make allow me to sleep at night. I'm responsible for someone else's huge financial investment. They're not just investing in the house, they're investing in me."

In this episode, Natalie shares some sad but true realities of success in investing. "Friends for a reason, friends for a season, or friends for life?" Some friends will start to resent you for being successful. What do you do? How do you manage these stressful happenings? Be brave and surround yourself with like-minded people that will support YOU.

"Even with one rental your friends will change, your relationships will change. Now, it's more important than ever to build your support tribe for your business."

Can you think of a good friend you have who you lost when you became successful? People you thought were your rocks, your "tier one people," as Natalie calls them, who as soon as you start killing it in your business, start to shrink away and become resentful. Because to them, YOU are the problem. You are making other women feel insecure and insignificant. The hard truth is, once you become successful, you start to lose some friends. It's a real eye-opener, but this has nothing to do with you. Your success brings out other people's feelings of being insignificant. Naturally, healthy women build relationships with, and seek out other women that are either like them, or that they can learn from.

This highlights the importance of your support tribe. Your mindset will be different than someone who's not investing in real estate. Create mentorship relationships! Create a two-way street of help and feedback with a like-minded woman. Finding other women who are investing isn't limited to your own community or city. Instagram and Facebook are both great places to start looking!

"People won't always remember what you say, but they will always remember how you made them feel." This is both a positive and negative thing. Find and cultivate relationships with women that are doing what you are doing. It's not easy, but it is always worth it.

Social Media:

The Art of Tenant Selection

Happy tenants make for happy landlords. And happy landlords don't have to work as hard because happy tenants never leave! In this episode, Natalie spills her secrets on successful tenant selection and how to efficiently navigate this important part of real estate investing.

"Tenant selection is the absolute most important part of your journey as a landlord. It's the difference between making money and losing money."

So how do you go about screening tenants to solidify a good relationship? For Natalie, 98% of her tenants have been incredible people, but even with her extensive experience, sometimes you get a dud. Natalie recommends using a blend of both paid advertising for leasing, paired with free (or minimal investment options) Facebook Marketplace. As you go through the process, remember that time is money. It's critical to prioritize where you spend your time when running your business.

Interviewing tenants is a skill and you must ask the hard questions early on – "How much did you pay in rent previously? Why are you looking to move? Do you smoke outside?" Having a pre-written script helps get a sense of a potential tenant's character before meeting them, allowing you to avoid unnecessary showings with unqualified tenants.

Great tenants are great tenants for life! They pay the rent on time, they don't damage the place and they don't implode your investment. They're really nice people that you'll have a good relationship with for years to come. It's so important to have a good tenant system. A good system is worth its weight in gold.

In real estate, time is not your friend. It's important to keep things moving in a market that can change so fast. In this episode, Natalie Mitchell shares her biggest secrets and the formula to her success in this business. Flipping is not easy, but it is totally worth it.

"It doesn't matter what the market is doing around you. What matters is what happens when you buy and what happens when you sell."

Should you buy, rent, or hold? It's all about trying to figure out how you're going to recycle the same money over and over again. You need to figure out what your return is right away once you get into a pattern of buying and renovating. Because you have multiple streams of income, your income isn't totally exposed to a volatile market. You're protected a little more from massive shifts.

Most importantly, learn and never stop learning! Read what is relevant to you and ask a million questions. You will be amazed at what you can pick up and how every tiny thing will change your business. You can absolutely do this!

Accounting Hacks for Real Estate Investors

Accountants are our saviours in helping us keep more money in our pockets by helping us make smart decisions with our revenue properties around tax time. Daniel Hershcovis from 1917 Accountants joins us to chat about taxes. If you're interested in investing, you must also learn to get excited about accounting!

Plan from the beginning on how you want to set up your company tax-wise. Properties can be held either personally or corporately. Inherently, filing as a corporation doesn't save you tax, that's not the purpose of a corporation. It helps limit liability instead of avoiding tax. Passive income in corporations is taxed much differently as well.

"Be organized about it so you can stay out of trouble and maximize your return. If you can't be organized on your own, it's worth it to hire someone to help you out. They are a tax deduction too!"

Solid bookkeeping is critical for your investment journey. If you do nothing else, get separate banking accounts for all your properties. Daniel walks us through Deductions, Betterments, and Capital Cost Allowance (CCA) to better understand how these can help you, the savvy investor. The longer you own a property, the lower the amount of depreciation you can claim.

Always think about the end of your investment journey because the exit strategy is critical and needs to be well planned out from the very beginning. You need to consider both your investment plan and divestment plan. Starting out in real estate investment can seem intimidating, but it is so rewarding. We're here to equip you on your real estate journey.

17 - Women in Business

Running a real estate investing business is not that different from any other kind of business. All businesses have ups, downs, and selling cycles. On this episode, Rachel Jones of Method Fitness YYC Calgary joins us to talk about her experience becoming a woman in business. As a new business owner, she talks about learning the process organically by surrounding herself with mentors and strong work culture.

Rachel started her journey during the pandemic. Taking on the responsibility during a difficult time provided many struggles, but her optimism in "looking at the bigger picture" helped her develop resilience and a successful business model. Natalie and Rachel discuss the importance of perseverance and having a contingency plan.

"It doesn't really matter what the product is that you're selling- it's the way you approach your business practice. We have very similar business values."

In both Rachel and Natalie's fields – selling cycles dictate the busy times of the year. The influx of covid has increased the cycles substantially, forcing both women to adjust their business models to meet their client demands. For both, strong customer service has been crucial for growing their business. You must put your business first. It only takes one bad experience to have a big effect.

Just starting out in real estate? Surround yourself with mentors and people you trust. it will take a lot of time and effort and you're always "on." You must love what you do and be ready to grind it out. Sometimes you must put your emotions aside and put your business hat on. When you own your business – it doesn't stop. And you truly learn to love the chaos! Would either of these women change a thing? NEVER!

The First Rental: Getting Your Hands Dirty

In this episode, Natalie chats with Alisha, a first-time rental property owner and investor. Alisha shares thoughts on tackling renovations, exit strategies, and building your tribe through the process.

"Any free time essentially that we had was spent learning about the process. And I'm glad we had that background before we went out and started looking at properties."

Education is the foundation of success. Today, there are lots of resources, from social media to YouTube and books. Alisha started their Instagram page before they even purchased their first property – it was a fantastic way to connect with others and build a community from the start.

One of the most important things in real estate is being adaptable. Alisha stresses the importance of strong communication and a firm foundation relationally before bringing a partner into your real estate endeavors. Renovation is one of the most stressful things a relationship can go through.

When you are building your tribe, you need to choose people that you feel comfortable leaving alone in your properties, unattended, and you need to trust that they're doing a good job. There is no room for emotion in business and you cannot get emotionally attached to a property. Homeownership is an exciting process and today is a great day for you to start your journey too!

Flipping is not exactly what you see on TV. There is a lot they don't show you in those episodes and it looks so simple and straightforward, on screen. In this episode, Natalie Mitchell walks us through some flipping humdingers and discusses mistakes made, to better equip you on your flip projects.

"I will not buy anything to flip that I would not want to move into myself or add to my rental portfolio – should it not sell. Not all properties you intend to flip end up selling. You have to have a backup exit strategy in place"

When scoping out a potential flip property, always focus on the exit strategy. What are you going to do to divest or sell that property? ALWAYS have a backup plan. Know the community you'll be working in very well.

The key to being successful in a flip is 100% dependent on your purchase price. Do not overpay for a house in the beginning! Thinking of partnering on your project? Listen up and consider all the angles of working alone vs. with a partner. Most importantly, figure out who you are as a flipper and do everything in your power to stick to your values and vision. It is great and it is fun, but flipping is hard work! And it's the most rewarding work you'll ever do!