Experienced Invester Q and A Call
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How you doing tonight? Ron? Oh, I gotta get you to unmute. Okay, yeah. Can you hear me now? Yeah, I can hear you. Awesome. I’m doing great. How you doing? Doing well, keeping going. getting stuff done. Awesome. Finally got an eviction order, which was nice. And waiting for that for a while. But yeah, no, everything is good. And you? Ah, yeah, everything’s good with me. I wish there was more time in the day. And I got a tenant that I’d like to get an eviction order on, but it’s kind of fallen through the cracks at the moment.
But it’s okay. Just Just keep at it, man. Yeah. Keep at it. It’s a it’s a longer process than it really should be. But once you know that if it were easy, then everybody would do it. Right. So that’s right. You got to figure out you know, what makes sense for you? Just Just so you know, like you, Randall I see that you have like you’re trying to write out the four properties. Let’s not do me a favour, change it Randall put like this. Randall and then like a space or a comma and for and the number of years you’re investing like a number. Just a numbers cool. You don’t even have to put properties so I can see. Because otherwise you can’t really see it. So just put there you go. Randall for 10 There we go. You can get a T shirt that all right.
So Randall for properties investing since 2010. Excellent. Should I use an example? Maybe that’s what I need to do. In the US, Randall. know if I can do this. Oh, look at that. As we do it, there we go. Randall, you just became the example.
There we go.
How you doing, Randall?
Good. Just busy wrapping up that big project downtown. And yes, starting to look for the next one.
Awesome. That’s a duplex right?
Yeah, two, three bedroom units. And then we’re going to probably put a basement, Sweden in the next couple of years.
Oh, nice. Did you rough it in?
Uh, it was already fairly there. And then I had to do a bit of drain work. And we upgraded all the water lines for pressure. And I love stub outs everywhere and kind of all the all the normal stuff.
Oh, that’s good. They should make the whole process a lot easier for you next time around.
Yeah, I got to kind of get over the parking hurdle would be the only next step.
Oh, I need to find a parking spot to add that third suite.
Diet died. I cannot help you with. I have one laying around. Yeah, just will not just appear for me.
But yeah, well, hopefully we can get there or the bylaw change or something in the next couple of years. But it’s it’s a good size. And it’s got good height. So
Excellent. Well, as long as you can make it. You know what the thing is, though. You may be it because it’s in Toronto, you may be able to get away with it. Just get the first part of it done first, right. Yeah,
This parking is a little bit more flexible in Toronto than most other places. So should be. should be pretty good. Let’s see. I hope everybody is able to log in here today.
well, look at that. There’s a troublemaker just came on there. Paul, here’s a Go ahead. I can’t hear you, man. You’re on mute.
Everybody doing tonight?
Yeah, I can hear ya. All right. So we’re gonna have some, I’m sure. There’ll be some interesting conversations going on. We’re gonna get started in just a couple minutes. I was anticipating, you know, 1012 people. I think I had like 50 people registered. So we should hopefully we’ll get through all the questions. I think we should be okay though. But just want to warn everybody that Paul, do you see my example there? click on select Rename.
Yeah, wait, rename
the little three dots by your above your side, mute and unmute. And there should be three dots over your picture. Got it. Alright, I noticed everybody is starting to hop on here. Well, not everybody you’ve got a few people. Just remind you by your image of yourself or your box, you will see three dots click on the three dots. Change it Please adjust Want to see your first name, a number? And then a second number for like 2010 2004 1992, whatever, whatever it is, so that I can actually see it on there. Okay.
Awesome. Good stuff. That’s it. I’ll be out. I’ll kind of be focusing on people who have the that number. And, you know, following along, because that’s what helps to guide me here on to who who’s asking the question, and it gives me a better understanding of where you’re coming from. Okay. So, got another minute. I wonder if I can play music in the background? anybody tried that before? Let’s see. Let’s see if this works. No. Can you hear that? No. Oh, it’s just for me, then let me see if I can make this happen. Huh. That’s okay. I get to enjoy the music. Sorry. Anyway, so we’ll get started. Make sure that you’re updating your you’re renaming yourself as I have been put up there. I’ll be focusing on answering those questions for those, those people who have three or more properties, but if we still have time, at the end of this, I will try to answer as many questions as I can. We are going to do another session, I think it was really popular. We’re going to do a session for people who are just starting out to the first three properties. And in this, this group here, and I plan to do this again. So don’t feel like you’re going to get stuck here. But like I said before, you know, make sure that you click on your name. Rename it. Okay, Paul, I’m, I’m going to making you a co host. So you can hassle people to make sure that they do that. Sorry, I just gave you responsibility. Okay. Okay, let me handle it. All right, you’re good. All right, good. I’m getting yelling, yelling at people. Yeah, just just text them, like, ping them directly and let them know it update what they need to do. Okay, just like eBay. All right. So this is going to be we’re gonna have a few people join us today, I was expecting just a few. And I think we’re gonna have many, but that’s, that’s good. It just shows that it’s, there’s a demand for it. For sure. I am focusing on people who have more than three properties in this particular session. Just I want to make sure that we are we’re moving along at a pace that makes sense for people and if I have to backtrack on basics, it’s going to take too much time. So but you are all welcome to stay and welcome to listen. Absolutely. Okay. Just a couple things. One is I wanted to do a quick poll here and just to see what’s happening, whoever’s on just give us a like a response there for me. I’ve got my reishi mushroom tea. They still have like, I got my Christmas mug, too. Oh, man, what’s going on? Right, so got very cool. Almost everybody’s registered there. Couple more. Oh, we have cute people coming in. So let’s Okay, I’m gonna give you another 10 seconds. Perfect. Okay, I’m going to end polling. Let me see if I can share those results. So we do have a few people here that are just starting out. And then we have those majority in three to 10. And a couple people up above there and I know who you are. So we’re gonna start I’m sharing just a couple pieces here to mention to you. One is that I am not going to be covering the basics here, there will be another beginner call for that. So you will need to hop on to that. And it makes it makes it a lot easier. I’m not going to be going over basic terminology, I’m expecting you to know these terms. If you don’t know them, see number one, which is go to the beginner call. Okay. And I will go through all of that. And but again, you’re everybody is more than welcome to attend. And listen in. Okay. And if you have questions, I’m really focusing on those who are having trouble growing their portfolio, we’re having other issues. So I’m focusing on them on this call, okay. And best thing to do is to email me the questions ahead of time. Right now I’m in the middle of call, I’m not getting any questions. So if you try to send it to me now, I’m not going to get it. So. But on the just before the call, I had a few people send me questions, I’m happy to answer them and address them as best as possible. Okay. All right. Let’s get started now. So first thing first, I mentioned this already, make sure that you click on there’s on your name, there’s three dots, click it, change it, put your first name, number of properties a years investing, it could be nine years investing, or you could put 2010 or 1992. Doesn’t matter to me. Okay, when you started, that’s, that’s okay. Either way is fine. All right. That’s great. And I see a lot of people are doing that, which is good. I’m going to be responding to the people’s questions that, that have that. Okay. All right. One thing I do want to mention to everybody is that if you haven’t gone into the education Rei website, make sure that you take a look at the action, take a wealth pyramid, this is like years of work for me to not the not the picture. Okay, but the idea behind this and the thoughts that have gone into this is something that I’ve been working on for a very long time, it’s like a life work. And I’ve shared it in this action taker, wealth pyramid. Just so you know, there’s a brown guy at the top there, just just wanted to point that out. Sorry, I had to, in that picture, anyways, forget it. So we have, we have a lot of fun here. And I have dry humour. So either sometimes people call it dad jokes, but whatever. I think they’re funny. I just wanted to let you know, I did put some videos on ltb. These are really important. Especially as you grow your portfolio, the landlord tenant board is backed up months and months. These checklists, I put in little tips in there that that I’ve seen mistakes happen over the years, not only from myself that I made, but other people who’ve submitted them and had mistakes. So the checklists are there to help you out and help you to avoid those errors in the future. Okay, and they’re in the the property management key policies and procedures course there. Okay, so take a look at that. And that’ll help you on that side of things. All right. So I, there are a couple of questions that that are kind of coming up. Or that was emailed to me beforehand. And I do want to respect and answer those questions to get started because they did what I asked them to do, which is email it in. And so I’m going to start with them. And then if you have questions, you can post them you can post them in the in the chat area for me to take a look at. Okay. So the first question is, how can as a property, how, as a property management company, how can I check credit scores? Now, this was a deeper related question related to the fact that they were using neighbourly for a number of their properties. And they were having an issue because they wouldn’t weren’t able to get their credit score. So actually, I’m just gonna be I’m gonna push this over here. Hopefully you can see this. Can you just let me know somebody? Give me a thumbs up if you can see this on? Yeah, okay, great. So under the resources section, make sure that you look under so we went to resources, look under discounts. Okay, so you don’t need to see all my stuff here. And then go to. Let’s see. We’ll see. Where’s the rent check? There’s neighbourly. Okay, I think I’m maybe I went past the land check Corp. Yeah, there’s all it’s right at the very top, you download the documentation for rent check Corp, it allows you to pull credit records, there is a bit of a process to it. So make sure that you take advantage of that and take a look at it. Okay. All right. So that was the question that was answered before their next thing is, there was another question around. I’m intending to purchase my fifth property. In the next six months, I will be hitting my financing wall. What does that mean? I’m not sure. But we’ll we’re going to try something just because I like to do things a little differently. So. So the question is, I’ve been doing some research and looks like my best lending option is credit unions or a partner that can finance. I’m wondering if anybody on the call knows of any programmes for lenders to enable me to continue to finance at a reasonable rate? Oh, boy. Okay. So one thing I’m going to say is the, it’s a bit of a misnomer to think that, that it’s that there is a five cap rule on on properties on a particular lender. So I’m gonna do something fun here, just because I can I want you now we’re all going to do this. So there’s an how many people do we have now? 32 people, all right. And this is going to be for the people who have more than five properties. And what I want you to do is put in the chat, the one lender that you used when you had more than five properties, okay? And don’t hit enter yet. Okay. Put the name of the lender that you used. I’m going to put a couple into, okay, that you had more than five properties. Okay. Everybody got one. All right, ready? On the count of three. We’re gonna do like a brain dump. Ready? 123. Hit enter. Whoo, here we go. Look at that. Alright, so we’ve got a there’s a actually that’s pretty cool. So it’s just a couple here. Scotiabank civc home trust TD. I think he was looking for credit unions. I would add in there, meridian and pathwise, which is autoworkers, but they’ve gotten a little tight. So I mean, those are some some ideas for you. I don’t think you need to worry about financing law. Yeah. And then go private money. There we go. Awesome. All right. So we’ve got a couple in there. I think that was from Raheem. I’m not sure if I saw Rahim on the call or not. But that that one was for you or him. Okay. Now we’ve got some other questions here. I’m going to do my best to go through this and answered them from Rene. Can you elaborate the changes you implemented going from five to 10 k than 10 K to 20 k per month? Holy cow. Okay, so I think that the difference between five K to 10 k was I thought that five k was a lot when I was a teacher. And I think that that was kind of like my goal number in and that was back in 2014. And I think my mindset was kind of like, Okay, once I get there, then I can go and do other things. And I think what happened between five K and 10 K is I added a lot more team members to to what I was doing, I added more partnerships, and I added more buildings. So I added scale. And I think that those things were the things that helped me to move from five K to 10 K, and then from 10 K to 20. k i would say staff, adding like actual stuff I would say is something that I probably should have done two years ago, and I was my like, what am I my regrets. I wish I had done that sooner. Hiring People. And I think that’s, that’s one of the big things for me, when it comes to this, also making sure that you have the right people and you fire people quickly that aren’t working out. I think that was the thing that I probably, you know, held on to a couple people that I shouldn’t have, I should have turned it over a little quicker because I got comfortable. So, Renee, I hope that helps. Can you elaborate on the systems automations, you implemented along the phase of your journey? Dude, man, I have to write a book. Oh, wait a minute, I have a couple bucks. No, I think that that’s the point of why I did the filling vacancies toolbox in the property management toolbox and game systems that you could take, and then give to somebody else. Right? In the case of me writing, it was me, passing it along to my wife, and now perhaps my kids to be able to use those systems. The automations are really I think, I’ve been doing this a lot. And I’ve been talking to people about this a lot. figuring out who can do stuff, rather than how you can do it is that is really a big key. So if you can figure that out, that really helps your driving speed up in paying people to do it, right. Whether it’s hourly, or commission or referral, whatever it is, and what would you consider the most important daily tasks to grow one’s real estate business. So I have a weekly plan, and I set aside different days to do different things. But my week, I set three priorities for the week, they tie into my quarterly plan, actually, I’m looking down and it’s right in front of me, I built my own, like weekly plan for for real estate. And every week I focused on finding funding and financing properties. I always put that in. And I am also trying to delegate something delegate dump away for me. And I also focus on meeting people. So looking at centres of influence, developing relationships every week. So those are some of the things that I’m constantly working on. All right, I’m gonna keep going down here. I hope that helped. Let’s see. I’m gonna I can’t jump back to the questions that were at the bottom that easily. So I’m just going through the questions on the list. Let’s see. landscape. Okay. Sean Arshad. All right, Mr. Mr. schad landscape really begins to change beyond six properties. Properties, please do highlight investor friendly lenders and perhaps even brokers landscape begins to change beyond six properties. Again, I guess that’s who not how you Well, first of all, you can it does change right like Scotia Bank, all those lenders that were mentioned before are definitely people that you can work with. But sometimes you start to develop relationships, maybe be a mall, commercial is a way to go. And if you’re starting to get into that many properties, you’re probably looking at starting to create a holding company anyways, and looking towards becoming more of a professional shop rather than, you know, everything in your personal name, that sort of thing. And then you’re going down the commercial commercial lending route, even though you’re doing residential properties, it’s, that’s still doable. And mortgage brokers, we’ve got lots that are that are available. I know that, you know, there are a few that have presented in the past and Gretchen’s presented, Dahlia is presented in the past as well. They’re both good. There’s other people out there as well. Dion’s presented, you gotta you gotta talk to a few people you got to kiss a couple frogs behind you before you find a prince. I don’t know if that’s is that is that not politically correct anymore? I don’t know if I am or not I can’t figure things out anymore if I’m politically correct. Anyways, you just got a you got to watch out for, you know, a lot of lenders because what I find is that some lenders will lead you on, and then say that they’re going to be able to do something and then by the time You actually need the funding you you got, you only are going to use the backup source rather than the, you know, the, the great lending deal that they promised you. So you got to be careful for that. And just so you know, I’m not a mortgage broker and not a realtor, so I can tell you what I think. So, and that’s what I think that happens to some especially, I would say, some mortgage brokers that are not not good, right? they’ll, they’ll bait and switch you. And it does happen even to you know, to experience people, you just got to be careful and have your backup plans ready. So you can know your plan B, or Plan C, see what’s gonna happen. All right. Oh, there we go. And going through all of the, the brain dump there with all the different lenders. Okay, so the questions that I have here, who were the first three positions you hired, that’s interesting property manager, somebody to handle help to handle vacancies and turnover, which are separate, and then an assistant to do everything else in between. And I wish I hired my assistant, but two years ago, it was, yeah. Anyways, there are those, those are the ones that I would say that are the key for this, because the property management can really weigh you down. And it still can, it still does, like, Don’t think that you’re escaping everything, by hiring somebody, but you still need, I mean, it is a way to lower your stress, and enable you to feel like you can scale and if you can afford, like, if you can have a property manager in house and get to that point, then it makes it easier. But you can still pay for a property manager and release that function from yourself and scaled to a point and then take back the properties at a certain point, if that’s what you feel you need to do. Right? And, and in those positions all can change as well. Because I find that you know, it depends on on where you are and you know in life and what you’re doing right and different different stages of investing, you can want different things. So you got to figure that out for yourself. But if you’re trying to create a larger business and trying to scale you need to, you need to remove yourself from the tasks that take you the longest. All right. Oh, so make sure that you’re posting questions in the chat. While we ended up with 33 people, I was thinking like the beginner called 10 or 12. Okay, quite a few here. So I’m like I said, I’m going to do my, my best to answer questions. Renee, I hope I got gave you the answer that you were that you were thinking about their when it comes to that. And if there’s anybody that wants to, to, like actually verbally ask a question, we can try that too. Not sure exactly how we can do that with the with this. Zoom, but I’m happy to try it if you don’t want to, if you want to just ask a question. orally. Otherwise, I’m just gonna I’ve got one more question that was asked by Randall here and I’ll start that how would I start on randles question? Because, you know, Randall doesn’t ask like little questions. Randall asked big questions that take long, long periods of time. So I’m gonna I’m gonna go to Ramos question here. And then we’ll, we’ll kind of you can post other questions in there. Okay. Um, thanks for hosting tonight. You’re welcome Randall. I’m hoping to get a few Coles notes top five items for starting a wholesaling business. Not the choosing a target area or market so much but more granular how to set up a mailer campaign websites versus mailers for marketing, what telephone service questions checklists for qualifying the solid. Okay. So let’s start off with that, because that’s a that’s like a that’s a big piece. And one of the things that I would want to warn you about wholesaling and just anybody else on the call that there is a there is the opportunity to to get deals done through the wholesaling process, but you really have to have A sense of negotiation. And I know you do and all this is I’m kind of talking to everybody at the same time here, okay? You have to, you have to have, you know, the ability to get it under contract. Okay, negotiate and deal that makes sense, and be able to close on the deal yourself. Okay? not get it under contract. So you can just assign it. And that’s it, it’s got to be a deal that that you would close on yourself. Okay, so those three things. Now, you know, getting to the point where you want to do wholesaling. Is that you? First of all, how do you set up a mailer campaign? First, you create a flyer, there’s lots of good examples of fliers. How many people have got a flyer in the mail before the saying that we buy houses? Right? So right, there’s a few of you tell you what you do you take that flyer, and use it as a model? Because that’s what it’s for. Listen, if it works, and especially if you see somebody who’s doing it successfully, and you’ve got it, use the model that works. Just change it a little bit. Okay, very, okay. You don’t have to do exactly the same. But like, that’s that you model it? Right. I don’t know if you know, like with advertising, typically, people who do copywriting hold on to to advertisements for years, and they use them for models. So use it for a model to help you base your own mailing campaign. And then, you know, how do you take the leads in? Well, all you really need is a phone number. But you know, I typically suggest people use like a website, I have, I have some lists of resources that are related to wholesaling. If you go to the Durham Rei website, under Resources, you’ll be able to see them, but one is investor carrot, which I used for the creation of the templated website. And the other one is grasshopper. And the reason why I like grasshopper is because it has a text to speech function, which makes it easy for you to read messages that are that are left. And also you can have different phone numbers that it tries before it goes to voicemail. Because if you’re getting a lead coming in, you want to take it and you don’t actually want it to go to voicemail, because you want to interact with the person as quickly as possible. So I would say, you know, those two, like getting a website going and having an a website really is just so people know, like and trust you. Right, that’s that’s the point when somebody goes to a website, it’s know like and trust you. And the next point is to is to, to be able to contact you in some way. Go ahead, Randall, I see you had your hand up there.
I’m just on that point, I wanted to just kind of get a little clarification because obviously, I’m fairly familiar with a bunch of the wholesalers that are maybe on this call, or at least in the group, but I know some of them kind of have their personal branding on their wholesaling. Like it’s their name, let’s say, where other people it’s kind of like a separate company, like I buy houses or whatever. Did you have any feedback on what you think works best?
The simplest and easiest to remember works best, you know, a lot of people are searching on like, like, as long as it’s easy to remember, and a lot of the the the URLs are taken. And the thing is I typically want to see a dot seen a.com if I can take both of them, and that usually works out for me. So mine is we buy houses cash.ca and.com so it’s a it’s a typical, you know, we buy houses website. I’m not active on the wholesaling side of things, or on buying smaller than four units anymore. But that’s, you know, that’s definitely a strategy to be able to pull them in to take them and and push them that way. Does that help? Okay, good. I mean, the idea like is, and when you’re doing a mailer, a lot of people like so this is the thing about how wholesaling. weekend boot camp courses work. They tell you about what to do, right? And then they and then we see a whole bunch of signs, and then they they all go away. Because they think they they spent $2,000 on advertising. They got 10 leads, they got one that was perhaps a good deal and then they drop the deal. Okay. The thing about advertising is that, like some of the people that you are that you commonly see Who are doing advertising for we buy houses and things like that, that are successful, are spending between, you know, 50 to $200,000 a year on advertising. And when people who don’t understand that, you know, want to cut their, you know, assignment fee, I cut like I, you know, I asked, you know, what’s the assignment fee? Or what it is? Or does it make sense for me with total, I never asked anybody to cut their assignment sheet. Because, like, most people don’t understand that there, you know how hard it is to get deals that make sense, especially in the, you know, the position that we’re in now, now, who knows, in six months from now what that’s going to look like, but you know, no, it’s, it’s something to get out there. And I think that’s, it’s smart to get into the no bad opportunity, you just have to watch out. Like, I know that there’s a, there’s a few realtors in that in the group here. So I just want to warn you and watch out for that, because you don’t want to get into trouble with whoever your body is. I forget what the body is for realtors. So just be careful with that. I know that some people get around it by using an assistant or something like that. But I don’t know, because it’s not my like, I’m not a realtor. So I can’t really tell you, but there I’m sure that there are ways around it. I just I don’t know what they are, because I’ve never had to do that. But just be careful with that. But I mean granularly why Canada Post does like they have like this deal right now for mailers. And people are like 20,000, mailers for like nothing. And you can pretty much direct them to different postal codes. So that’s something to keep in mind. If you’re looking at that. Okay, and Thanks, Paul. Paul had a good suggestion there. If you are looking to do like a question, and you’re on the video, you can just put up your hand and I can and then I’ll actually give you the ability to, to ask the question orally if you’d like. So that’s okay. Oh, boy, I’ve got a whole bunch of questions. So I’m going to start Oh, wait, I still had a couple more responses for you there. What telephone service grasshopper mailers for marketing Canada Post questions checklist for qualifying the seller callers, I have a like a property sheet that I have. It’s basically and I and Randall you already have it, I’ve given it to you. And it basically whether you kept it or not. But, you know, there’s a list of like the typical questions that I asked for sellers. And I think it’s actually in the, on the website under negotiating with private sellers. I think there’s a copy of it there. But I’ll check it out. But I’m going to put together a course around finding discounted properties or online, just some some more like a master course around that. But first, I’m going to do the OPM stuff and put that on there. So to get that going, so I can only do so much at a time and, and I enjoy it. But if it becomes too hard, I’m not going to do it as much so alright, if you have a question, you can always post it in the chat there and I’ve got a few so I’m going to start answering them. One is from Lee Lee, what internal checks have you implemented to control the people you have hired? That’s a good question. Usually, it’s kind of interesting. I’ve noticed this more as I’m as I’m going along, but like, I will have somebody like I’ll have my assistant do a little bit of work for me. And then I’ll have a bookkeeper check their check the work so that they will the the rent roll at the end of the month will be summarised, and then sent to the bookkeeper. And then the bookkeepers kind of rechecking the work. So I think that’s, that’s kind of one control. The other controls is really just ensuring that the people are doing what they say they’re doing. And that can always be a challenge. You have to trust you know, but you have to verify as well. So if something starts to happen, and you’re kind of like, why are they not doing this? And truthfully, it’s hard to tell now with like, the way where I with COVID and but you know, if you’re expecting so much work to be done and you only get this this much work done, then you know, you’re gonna have to have a conversation. Whether That’s what’s happening with your, the person that you’ve hired. It’s always about communication and setting expectations. So if you can do that, then that that’ll, that certainly helps. Lee, I don’t know if you want to add anything to that question or if that helped you. I can see that you’re up here on the on the screen. So if you if you do want to add anything to add to that, just unmute yourself and let me know.
So there is another question here, Gilly. Given COVID is here to stay for a little while, and universities are online. Do you think we should consider shifting student rental properties to other uses? Oh, boy. that’s a that’s a good question. And a big question. And let me see who’s on the call. Renee. Renee, are you on that? Wish? Rene, may you hear? Yeah, you are? I’m gonna ask to unmute you.
Everyday, so I put me on the spot. I don’t know. Okay, so I’m going to get you to answer. Certainly, Lee’s question for me. So the question is given COVID is here to stay for a little while and universities are online? Do you think we should consider shifting student rental properties to other uses?
I did not just because in certain places, I reduce the rent. I mean, obviously we know COVID is gonna be a temporary thing. eventually it’s going to come around the student there are students that are at Queen’s University students are there plenty. There’s plenty of medical students they had to come there’s a few master students have also a few students. I noticed international students that are kind of stuck in Canada that stayed. And this particular student rental has furniture so they they enjoyed that. I also rent it to a few people who had graduated but who are in transition. So they went to university or college, but they’re not quite there in transition. So they I felt they were comfortable living with students that they knew the lifestyle so so I just reduced rents on some and others I didn’t I didn’t increase the rents, but overall, it was more challenging, I felt and there was a lot more competition because there’s I know many places that are still vacant other people, especially if it was property managers, they didn’t really they weren’t necessarily invested in getting it rented or not. If it if it doesn’t rent, it doesn’t really matter as much, as long as they pick something from their roster. And overall, it’s just it’s a test of the market if you can with if you go to go through this these difficult times, then you’ll be able to find you’ll be fine for the rest of the times. Oh, and having good pictures as well really, I had to update on the pictures. I’d have a really good picture so that people would respond to the ads on Facebook and I went from Kijiji I used to use a lot of Kijiji now I go, I just have Facebook ads with really good pictures and pictures of furniture, or have I no longer have beds with simply beds. It has to have a cover and a pillow and really has to have good pictures in order to get leads.
Awesome. Thanks for those those great suggestions, Renee, really appreciate it. You’re welcome. Anytime. Awesome. So I think that the the other thing that you want to think about is you could always you could reposition. But I would think that if it were something more systemic, like, for example, Gilly, like Airbnb in Toronto, for example, where there’s like a big legal change that’s happened. Right? I think that if that were to happen, I would be switching from short term rentals to longer term rentals or a different type of, you know, rental situation. But where we are right now, I still do think that it’s temporary, although it’s extended, I do think it’s a temporary situation. So I wouldn’t necessarily be switching strategies. I don’t do student rentals. So I’m not I don’t like to talk about things that I don’t have experienced in. There’s anybody else who is you know, we’re working in the student rental space and wants to try them in more than welcome to but I mean, that’s that’s the way that I would kind of take it. All right. Let’s see the next one here. Oh, got a couple of questions. All right, George. George, buddy, how you doing? All your work out there? Hey, all right. Are you being even more selective when filling your units at this time due to the backlog of evictions? Yes, sir, I am. Definitely being more careful I, I finally got an eviction order, if you can believe it, this eviction started in November 2019. And I finally got my eviction order for September 29. This month, I’ve got the sheriff going in. That’s almost a year. And believe me, when I tell you, this is a, this is painful. Okay. And but unfortunately, this was a building that I purchased. And it’s an inherited tenant and can’t do much about it. Right? I’ve got, I’ve got a, in that building, I’ve got a couple of tenants like that. But the beauty is, once they’re out, I’m going to be raising the rents and building and it’s going to be worth a lot more. So that’s the way that I look at it. And am I doing more due diligence? Yes, I am, I’m being more careful, actually, I’m being a little bit, I’m being more careful than I normally would. So I’m just taking it a little bit easier and kind of avoiding having to do you know, I’m not taking the risks that I normally meet, you know, if it was kind of iffy, I might take them, but now I’m not doing that at all. It’s, it’s just not worth it. So I am I would say that I am being a little bit more careful when it comes to the backlog. And with regards to evictions, for sure. Is that help anything else that you want to? Like? Did you want to add anything to that? George?
Yeah, I was just gonna say I’m working with a property management company to help me fill the unit. And I feel like they’re getting a bit impatient with me, because I’m being careful. And just within if I don’t respond within 24 hours, apparently these tenants are finding another place. So the property management company has been really getting really frustrated seems. So do you have any suggestions or advice on how to communicate that with them?
Get them to text you and come up with like, like a process with them? I think that that you should be able to respond to them within like, you know, a couple hours. So I mean, like, make a decision, like? Are you saying that they’re providing you? I think that there’s too many variables here, are they providing you all the due diligence, and you’re not having enough time to review it to decide whether you’re going to go ahead with the tenant or not, or they just giving you like this person has an application, there’s no due diligence behind it. And then they’re expecting you to make a decision. What’s the I don’t have enough information.
They’re providing the credit report and a lot of information, but there are certain things that they’re missing. And so when I’m asking them for additional information, by the time they get back to me, the apparently, they’re saying that the tenant found some other place or whatever.
Honestly, it’s very possible that that will happen. Like, like, especially if it’s a competitive market, or there’s no. And there’s a few other rentals, like, for example, in some buildings in Toronto with the new Airbnb thing, you’re seeing 35 listings come up. And if you’re not going to respond quickly, they’re going to go to somebody else, because there’s a whole bunch of things that are available. So that’s just something that you have to keep in mind. So it is possible for sure, you want to be careful. And I would try to just work it out with them to see how you can help them respond faster to like, you’re like, your tenant can be your greatest asset and your worst nightmare. And I know like I talked to you for so I know. I know that you know what I’m talking about. So do the due diligence, but try to do it quickly, as an help them to help you for sure. All right. Okay, another question here. Going to purchase my fifth property, that’s awesome. This time, with down payment from our company funds with the new holding company. Any difference with mortgage requirements, the previous four properties are with down payments from our personal cash holding company. So that is a financing question that I think you’re going to want to talk to like, I’m assuming that if you’re using a holding company, it’s going to be in a corporation. You’re going to want to talk to a mortgage broker or talk to like commercial side of a bank like, BM o commercial. and talk to them what they’re looking for seasoning wise, usually, if you can explain where the funds came from, and show the paper trail to get where it is now, it’s usually okay. They just want to see that the funds have been there, and it’s not like drug money or whatever, I know, it’s not drug money for you. Okay? I’m just saying that like that. You know, they just want to see it, the trail, the paper trail of where it where it came from. Alright, so and that’s what they’re what’s that’s what they’re looking for. So, holding company, commercial lenders make sure there, once you start to go with holding companies, you start to reduce the amount of lenders that you’re working with, typically, particularly if it’s in residential properties, right. So you got to keep that in mind as well. But some banks like civc, and Scotia, and I believe RBC too, will take We’ll take commercial mortgages on the residential side with a holding company. So but you have to figure out what makes sense and what doesn’t with them, because they may not, but they used to be that they did it. And now more and more I’m seeing that happen. And it always depends on your situation. And, and I only know that, because that’s what I’m looking for sometimes where I was, and, and so that’s that, that’s kind of a piece of it there. I hope that helps if you if you want to, if you have any other additional pieces that you want to know around that. I think it’s really it’s really personal, like it depends on the institution that you’re working with to and what kind of relationship you have like, like, you know, a civc worked on Imperial service there. So I’ve got the Imperial service with them. And that’s kind of neat when it comes to dealing with issues. And then on the VMO side, I deal with private banking, which makes it a little bit easier, just gives me a point person to kind of work with. So I think that’s that’s, that’s really good. Okay. All right. Yes. And then, Renee, you got lots of kudos from Sean, he was very happy with your your comments they’re running. Alright. Make sure that you’re asking questions into the chat if, if you do, or if you do need any help. Okay, um, let’s see, Gilly. Who would you recommend to connect with for a beginner to learn the ins and outs of redevelopment of an industrial site in Toronto and building a mixed use building? What fee is reasonable offer an expert for this mentorship role? Okay, so that’s a very interesting question. There are a couple people that that are that do development, and may be interested in that type of role. I don’t know if you remember, Michael wyrick. He presented Durham Rei, probably about a year ago. And I know that he has worked with another real estate investor in Durham. Rei, I don’t want to point people out because it’s kind of weird. But I know that he and he seemed to have liked working with him. So Michael wire, it might be a good example. I’m not I’m trying to think of like Toronto and industrial sites specifically. But I know that Ryan does some mentorship, Ryan carved and some mentorship and stuff like that. But I just not sure. Like, I don’t know what people’s experiences are and what they where they focus, because it does make a difference with how you’re dealing with the city. So that’s somebody you probably I would, I would check out like Michael, first, just because of, he’s doing development projects in Toronto. If you were to do the same thing in the Durham Region, I might suggest Ryan for you. But I hope that helps I whether a cost or not, I have no idea. But as a developer, somebody who will make a million dollars on a deal is not going to be cheap for mentorship. So just put it that way, you know, and that’s they may not get paid till the end of the deal, but typically they get paid a lot. So that’s, you have to keep that in mind. Or it may be something as simple as investing in their project and, you know, working something out with them, you’re gonna have to negotiate with them. But developers are people that typically give up their secrets very easily. Michael wire it. How do I spell his last name is y no WYRO T. And then the first name is Michael M IC k l like that. All right, his brother is Luke. They’re both really good guys, but I like them I’m not that I don’t like all investors, but I like them anyways. So anyways, uh, okay, let’s see I do have one more or a couple of the questions and if you do have questions posted in the group. So secondly, so this is a random continuing questions here. Secondly, is there anyone in the group who’s working in rockville hoping to connect with a few questions? brockville I’m thinking you’re probably looking at like, who you’re looking at Fern maybe out there, Rene out there. Who else is out there? It’s Jeff patry. That’s right. brockville. He runs the he used to run the rockville Real Estate Group or something like that. Roderick Jones. Okay, I’m gonna suggest that Renee, you connect with our sorry, Randall that you connect with Renee Randall is not even on the phone answering his questions. Well, tough luck, Randall. I’m gonna answer your other question. Ah, all right. Oh, you’re on the call. Okay. So the Sorry, I was giving you hacking. You weren’t even here. Okay. All right. Lastly, are there any mortgage qualifiers on the call? This is not a networking call. But if you are, if you are looking for looks like that. Randall is looking for a mortgage qualifier for a property in Peterborough up to 40 to 420 k purchase and the ability to refi 525 k in the next 12 months or so. So you’re looking, so we’re getting qualifiers just just so everybody understands the process? Randall, I’m going to put you on the spot here. And I’m going to ask you to unmute and describe. So I don’t have to, but a mortgage qualifiers?
Well, in this case, it’s just someone to qualify for the mortgage or percentage of equity.
I already have
the deal about to be signed. So just more or less feelers out there to see if anyone else wanted to qualify instead of myself and get a piece of the deal.
Okay, so you’re giving them an equity piece of cash flow piece? What How does that work with you?
Hey, I’m open to discussing with anyone interested.
Okay, so you’re looking for somebody to qualify for the deal for you. It’s a it’s a single family home that you’re converting, I’m assuming?
Yeah, exactly. It could also be a student rental initially, and then turned into a duplex when we wanted to or needed to.
Okay, so you’re looking for a mortgage qualifier to help you to close on the property, refinance the property and on the back end. And for a piece of the equity and cash flow or how you work
depending on which strategy we go with. If it’s the rental right up front, then we can do equity and cash them out. Or, yeah, we can do cash flow while we run it as a student rental,
or an Air Force to.
Alright, that’s great. So if you’re interested in that you should reach out to Randall Randall you I think if there’s anybody who’s interested, just private chat, Randle, send them a quick chat that would be good. If you have a question you can raise your hand to like you can raise your hand here like this, where you can raise your hand on the on your screen there. And yet, I’m Uh, I’m assuming that you have a question because you have your hand raised there. So if you want to ask it, go ahead. Yep, I can hear you.
I just wanted to comment.
Enough for potential candidates.
This is something we should be doing because you could not charge a fee. But what do we just say you need to make sure that you are serious. They ask you to complete the door deposit and an employee possible. deny your orange
whatever your preference is, and these are my opinions. As this series
goes through your undergrad chip,
and then they decide not to go through. So this is probably one of the examples. You know, maybe at the beginning they say to you.
Okay, so I’m gonna just repeat the like, I’m gonna repeat out what Andrea was sharing, because I think it was a little hard to hear. So what she was sharing is a strategy. And I have used the strategy in the past and competitive rental markets. And, George, it’s definitely something that you may want to talk to your property management company around. But so, you cannot, you cannot ask for an application fee for applying for a rental property, but you can ask for a deposit towards last month’s rent with the application. So what what Enya is suggesting is that when you take the application, you take a deposit towards last month’s rent as part of the application process. And then by doing that, you’re they’ve committed money to the process. Now, if you decide that you don’t want to take the tenants, or if they decide that they don’t want to take the property anymore, it’ll be a bit of a push back, you know, like, hey, well, you already gave your deposit, you’re gonna move on, go move on, right. But in the situations where I’ve had that I’ve given funds back, because it’s been competitive enough where I found somebody else within a few days, but it is a strategy that, that some property managers use, and it can be quite effective in a very, in a competitive market, like so for example, if I, if I, if I had a condo and one of those buildings with 35 vacant units, that’s what I would be doing. Because that way I can. No, I would make sure that there’s some financial contribution to that process. That’s a great suggestion. And I’m glad that you mentioned it. I, you know, I think I forget half the things that I that I’ve done. Maybe, I don’t know, I don’t know if that’s age or what, but in any case, yeah, the that’s a great strategy. And yeah, and thanks so much for sharing that. That’s, that’s awesome. All right. Okay, I think that that was the that was all the questions that I got nailed in. So I think that’s that’s good. If there are any more questions that you that you want to ask, what happened? Alex? I see Alex here. What are you doing Alex? You just hopping on the call in May or not your screens not on? I don’t know what’s going on there. All right. Okay, who else do we have on the call here? Oh, Anita, I see you there. How you doing Anita? All good. All right. Awesome. Okay, any other questions? You want to post a question here? We can we can chat about it a little bit. How is the How is the offer situation going? Actually, I noticed that August was really like crazy. And then Oh good. Another question here. But I August was pretty crazy. And I know that September we’re seeing multiple offers, but what’s going on in the market? I know there’s a bunch of realtors happening in here I know even in the multi unit you know we’re looking at multiple offers on big you know $4 million buildings crazy. Anyways, let me know like so what’s happening in India Do you want to give us anybody else to I just want to kind of what’s happening in the market right now? Because I always looking at
Hey, Quintin. It’s exactly what you’re you’re saying it’s it’s really, really competitive. It’s really really aggressive in the market. I think the fewest amount of offers I’ve had in a bidding war we’ve submitted lately was tonight at seven offers. I had one a few days ago that was 22 offers it. It’s really competitive. And some of the prices are really going quite crazy. We know prices are up 20% year over year. So there are a lot out there getting a little more eager to get the properties and bidding quite aggressively to get what they’re looking for. So trying to be creative sometimes and help people switch their strategies a little bit or find something that something different than what it seems to try to get them into something that maybe other people are missing.
Awesome. Thanks for sharing that. The that’s, it’s kind of interesting, actually. Since this is a group of people who have three or more properties, you’re all probably like laughing here. Some, at least some of you are married. Hey, George, what’s happening over on the other side of the GTA?
Yeah. So exactly like what you just heard, but I’d say 90% of listings are going into multiples. They’re they’re holding offers, I’m seeing about 90%. There is the odd one where they don’t and that might still go into multiples. So anywhere from Mississauga down to Hamilton, I’m seeing even Brampton you’re seeing that all over all over that area.
Crazy. Crazy. All right. How about you? Randall What are you seeing in the Toronto kind of city centre there? I can’t hear you guy. You’re gonna take yourself off mute.
Sorry. Yeah, the exact same exact same as Anita and George. It’s just crazy everywhere, I think and it’s always multiples in the city. But now you’re seeing really big bullies come in and you’ll see them get taken down after a day a quarter of a million dollars over ask things like that. But um, yeah. Like you said, it’s not good for us owners. It’s tough for buyers right now.
That’s okay. I’m still a buyer as long as the numbers make sense. A Michael? Yeah, I see you. Yeah. I how’s it going up in the Ottawa region? What’s happening with the, like the offers in there? You’re gonna have to unmute yourself there.
There you go.
Okay, can’t hear you. You got to unmute yourself.
There. Am I unmuted now? Yep,
yeah, I can hear you. I had to
find my the button
up here. I haven’t made any offers but the this still seems to be a hot market. I was expecting it slowed down and I don’t see that happening yet.
Same thing a lots of multiples going on.
Yeah. still having trouble getting that ch MC mortgage to finish? Or not? Not bad. We got
time here. Okay.
But I got to
finish it to move on to the next.
Yeah, for sure.
So I don’t know I’m keep I’m keep waiting for the other shoe to drop in for the downturn to start, but I’m not seeing it yet.
Don’t wait too long. That’s what people were saying in 2009. And they’re still waiting.
Yeah. And do they have started? We got an eviction Sheriff on the 10th for a bad tenant. So it is starting to open up.
Yeah, no, that’s good. I’m glad that you’re seeing that too. That’s that’s gonna help quite a bit. Yeah, Renee, how’s it going out in Kingston? area? What’s going on there like realtor wise? Is it is it craziness? Are you seeing Oh, I don’t know. See the challenge with this is I’m not sure if they’re still crazy.
Yeah, it’s just like anywhere else. It’s it’s a hot market and multiple offers boy offers. You get lucky. I think the goal is simply to just spit out a lots of offers. Eventually, something’s going to give
you seeing anything different that you haven’t seen before in the area?
Ah, torontonians they’ve arrived to Kingston.
They’ve arrived. Yeah, they’ve arrived they now realise how good it is. And the cheap prices. They’re like, what 350 I’ll buy two. So they’re they’re overbidding they’re away. overbidding things that that I would think that last year would have sold for 280 are now selling for 400
crazy, crazy, crazy. just crazy, cheap, cheap, crazy.
But you know what? It was good as they you like, you know you you’ve got an established portfolio, you’re going to continue to find the ones that make sense and continue to keep growing Most
definitely. It’s very exciting.
Awesome stuff. Yeah, I can tell In this group, like just looking at some of your numbers here that you probably in the last, like, let’s say 20%, like any day, said, 20%, from last year, some of you are up probably a million dollars, I would say in your, your net worth just in the last year. So kudos to you. All right. Oh, we have one question here just before the end? What are your thoughts on a succession plan? Do you keep properties and have a? Do you keep the properties and have a person run the whole company? Or do you solve a whole portfolio? What would you suggest if your company is not big enough to hire someone and kids do not want to run the business? Ah, that’s going to be a very personal question up to you and what you decide and what your you there was a really great presentation, you should go back and listen to it by Leslie Quinsey qu i NSAY, it’s just do a search under the vault and you’ll find the presentation by her it was really good. And she has a book on, hold on, see if I can grab it.
There we go.
It’s called the legacy a and, and we actually bought copies for everybody. That’s a great, great tool for you to utilise. And I think it talks more about the mechanics of it. And you know, exactly the questions that you’re asking, instead of me just regurgitating what she says, Listen to the presentation. Well, I’m going to mute you there. Rene, the so go back and listen to that the presentation and the book is called legacy, I would take some time and read that everybody’s path to this is going to be different. And you know, I can like looking at some of your numbers. And in talking to some of you now I can, I can, my guess is that some of you are gonna have like a 10 million, by the time you pass away 10 million net worth. And you’re gonna have to figure out whether you want to pass all of that on to your kids or, you know, to grandkids or, you know, different structures, you’ll have to have to think, think about what that’s going to look like. So just take a look at the book, The Legacy legacy book and listen to the presentation. And I think that will probably help you to think about that in different ways. And it is something that I think about, and look at the action taker, that pyramid, it’s a solid pyramid, but it requires you to really talk to lawyers, you may or may want to look at the primary wills and secondary wells, just to deal with your properties. There’s a lot of different things. And it’s not something that I can cover in a to two minutes, you know, quick answers. A lot of these are not quick answers. But take a look at that book in the presentation. It’s a good starting point for you. Alright, ladies and gentlemen, I hope that you know, there was a lot that you you could get out of this call we this is more advanced than typical call that we would we would do. I’m going to ask you, too, just pushed up a quick poll there. And if you could just respond to that, that would be great. I want to know whether you know, this was helpful for you. And, and if this was would be something that you would let other people know about. As a know, you would recommend it to friends and family. Cool. All right. So that being said, I have recorded this call it is going to be on the Durham Rei website, we have a section for beginners calls and a section for more experienced members calls. So I’m going to put that there. And if you asked a question, I responded to all the questions that were asked to me beforehand, that hopefully, those of you who are kind of sitting in just kind of soaking it all in. I hope you soaked up a couple of pieces of knowledge. But the thing about it is, is that it’s only in here, but you got to take it and put it out there. You got to do something with it. Okay. I appreciate you coming out and listening but without doing something and taking action. It’s it’s not gonna, it’s just gonna sit in your head, okay, we want to take it out and make it happen. All right. I hope everybody has a You know, good, good couple of weeks before our next meeting, I’m actually off to a retreat with some members of the eel entrepreneur organisation that I’m part of and, and in my business is still gonna keep running while I’m not there. Okay, so anyways, have a great day. Have a great one. Everybody have a good night, and I will hopefully see you at the next next call and our next meeting is October the 14th. All right, have a good one everyone. Can I
What What’s the name of the author?
Leslie Quinsey. Leslie Quinsey q ui NSAY in the book is called legacy. It’s on Amazon.
Thank you very much.
All right. Good night, everyone.