June 27, 2024 • 36 mins
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In this episode, Tom and Brandon are joined by Erwin Szeto. Erwin is the Owner at iWin Real Estate and the Director of the Mr. Hamilton team from Hamilton, Ontario, a team of veteran real estate investors, who coach investors from the Toronto area to achieve wealth and are the four time winning team of Real Estate Agent of the Year. Erwin is also the host of the "Trust About Real Estate" podcast, in addition to being a blogger, speaker, and philanthropist.
Erwin is here to discuss: → Why Canadians should look at investing in the US, it's advantages, and how to know where to invest in the US. → What Share does for US investors and it's fees, US mortgage financing, and the favorable corp structure for Canadians investing in the US. → Who does and doesn't fit this type of investment, going for cash flow or appreciation, and his future plans for Canadian investments.
Erwin Szeto's Share Website: www.sharesfr.com/partners/iwin
iWIN Real Estate's Instagram: @iwinrealestate
iWIN Real Estate's Facebook: @iwinrealestate
Erwin Szeto's Instagram: @erwinszeto
Erwin Szeto's LinkedIn: @erwinszeto
Truth About Real Estate Investing Podcast: www.truthaboutrealestateinvesting.ca
Truth About Real Estate Investing YouTube: @TruthAboutRealEstateInvesting
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:07):
Mortgage Guide. Brandon Love herewith Tom Moffitt and a very
special guest, Erwin Sito.
Erwin is the host of the Truth
About Real Estate Investingpodcast, and he is going to do a
deep dive into why Canadiansshould consider investing into the
U.S.
We're going to also touch on some
other fun topics as well.
(00:28):
So, Erwin, thanks for joining us.
Thanks for having me.
I need to say something as well is
that, you know, it's not oftenthat other real estate
professionals have me on theirplatforms to promote what I'm
talking about because I think manyrealtors, mortgage folks feel that
U.S. investing is a threat totheir existing businesses.
So I think the kudos to you, too,that you're open minded and you
want to share the truth with yourlisteners.
Yeah, I appreciate that.
It is true.
Like, sure, you might be puttingthis out there and getting more
(00:51):
people open minded, which I takeaway business.
But at the same time, if it'ssomething that's inevitable and
it's going to help people alongthe lines of building up their
future and their plans, like whynot put this out there.
And we've always been open withthat stuff.
And yeah, that's why we want tohave you on.
I'm a big listener of yourpodcast.
I've invested in the US as well.
I have one property there.
And I know your plans to build outyour portfolio.
(01:12):
So I figured why not have you onour podcast and really just dive
deep on why Canadians should beconsidering it and really get your
take on it.
I'm going to put you on the spot
here.
Why don't you give us like a two
minute snippet of why a Canadianshould invest in the US?
where to start?All new investors always ask them
about like, what's your worst casescenario?
Your worst case scenario, like I'min Ontario, you know, I've had two
(01:33):
clients have their propertiescondemned by actions that their
tenants caused, as in like theinsurance replacement of the home
exceeds the damage that it doesn'tcause.
Hasn't had their landlord tenantboard hearing yet.
They haven't been getting rent foreight months.
Another client, they haven't beengetting rent for 12 months.
So worst case scenario, it's notfavorable in Ontario specifically.
And also it's just not affordable.
Versus in the States, you have a
non-paying tenant.
They're out in 30, 60 days.
(01:53):
Basically all the laws and rulesfavored the landlord and
landlord-friendly USA.
Mortgages are infinite, basically.
Rights are all in your favor.
The US economy is creating some
significant distance between thetwo economies.
They go into debt too, but they'reinvesting in creating historic
amounts of high-payingmanufacturing jobs.
So simply, if you're going to beton a stock, Canada was a stock in
(02:13):
the U.S. was a stock which wouldyou choose right and to me it's
pretty obvious yeah I if you lookat government policies coming in
across the board and like you lookat the federal budget and
everything here is geared towardsthe tenant protection and it's
very much done so from a we dothis to get votes perspective it
doesn't help the investor at alland you you look at the US and
(02:33):
they are very protective of theirinvestor class.
And it's just a night and daycomparison.
And I know when you do look atthose comparisons of where am I
going to put my money?It's like, you know what, long
term, this is actually a saferplace.
Sure, there's a bit of uneasinesswith it being out of your home
country and not having physicalpresence there per se.
But you can do so much to mitigatethose risks and protect yourself
(02:54):
that way.
to add to your point, Brandon,
like protecting investors, theAmerican government protects
foreign investment as well.
So I, as a Canadian, are pretty
much welcome to buy property inthe States, almost anywhere.
And then especially more welcomein the landlord-friendly places
versus foreign investment islargely discouraged and taxed
heavily, if you will, in Canada.
So again, it's just completely
different environments forinvestment for business.
So I imagine part of your processfor diving into the US and setting
(03:16):
up your locations and where youwant to dive into, like the nice
part is you have 50 states tochoose from.
And not all are treated equal.
part is you have 50 states to
choose from and not all aretreated equal.
So I'd imagine the places you'relooking in are more favorable to
the landlord tenants.
Yes, absolutely.
And that just makes sense.
(03:37):
You know, I just read a book
called Solve for Happy.
You know, it talks about like,
figure out what makes you happyand what doesn't make you happy.
I'm not very happy being anOntario landlord.
So I'm interested in doing so muchmore passive things in the states
going forward.
My government hasn't made me feel
welcome at all here, all levels,federal, provincial, municipal.
At all levels, I don't feelwelcome.
So why should I stay?And it's not just me too.
I have a lot of clients that arehelping the States.
(03:58):
My clients have bought moreproperty in the States than I have
so far.
But yeah, to your point, landlord
friendliness, I studied economicsin school as well.
And I've been studying economicsever since.
So I largely lead with where isinvestment going?
Right.
Right.
And investment in the States alsofollows where is it business
friendly?Where it is business friendly is
generally landlord friendly aswell.
Is there a few spots that are likehigh on your radar right now for
(04:19):
anyone who's like just curiositylevel exploring that?
The two big stories of the Statesin terms of economics is they're
investing heavily in microchipmanufacturing and electric
vehicle.
Anything around electric vehicles
and green energy in general, butlargely electric vehicles.
Folks can just simply Google everybattery or car manufacturer.
Seriously, that's how I did itbecause the news is all cluttered
with like politics and war and,you know, stuff that doesn't help
me as an economist research,right?
(04:40):
So I literally, that's how Iactually had to look up all my
news was, you know, General MotorsInvestment USA, LG Battery
Investment USA.
I actually have a spreadsheet on
it.
I read all these articles, but
then there's just too much totrack.
I honestly have about four pagesof historic levels of investment,
minimum billion dollar investmentor a thousand net new
(05:00):
manufacturing jobs in the States.
There's honestly just tons.
But anyone who follows USAInvesting, the same states keep
coming up, Tennessee, Georgia,Texas, Alabama.
The property I've tied up is inMissouri, specifically Kansas
City, because Kansas City hasquite a bit going on for it.
Nice.
Yeah.
That's awesome.
You're in safe space when it comes
to giant spreadsheets.
We are spreadsheet wizards over
(05:21):
here.
Hey, if you want me to share it,
I'm happy to share it.
Yeah, we would love that.
Actually, everyone asks for itbecause it's a lot of work to put
it together.
But again, it's just weird because
every time I find something, somuch investment in the States.
For example, I knew aboutPanasonic's investment in Nevada.
(05:41):
Because Panasonic is partners withTesla to manufacture batteries.
They're spending some of about$3.6 billion to upgrade that
plant.
What I didn't know was that
Panasonic's building their ownplant just outside Kansas City,
Missouri.
So $4 billion investment.
Expected to create 4,000 net newhigh-paying manufacturing jobs.
Huge.
Yeah, so it's absolutely huge.
And these investments absolutelyeclipse anything going on in
thousand net new Canada.
high-paying manufacturing jobs
huge yeah so it's absolutely hugeand these investments absolutely
eclipse anything going on incanada so again it goes back to my
(06:03):
point and then not just automotiveget away from automotive like
microchips start from a high levelthis is how i always think is what
is the biggest thing in the worldin terms of jobs business whatever
and i think most people can agreeit's ai and And so OpenAI controls
TypeJPT.
So OpenAI is over, what, 50% owned
by Microsoft.
(06:23):
So then I just keep asking
questions.
Who makes Microsoft's microchips?
It's NVIDIA.
And they're actually trying to
diversify to AMD as well.
So then my next Google is, where
are NVIDIA and AMD chips made?Who makes them?
TSMC.
TSMC, the T stands for Taiwan.
Taiwan Semiconductor ManufacturingCompany.
The world's largest outsourcedmanufacturer of microchips, right?
And where are they investing?They're building three fabrication
plants right now in Phoenix,Arizona, $65 billion investment.
It'll create something around6,000 jobs.
So I believe this ranks among thelargest foreign manufacturing
investment in US history.
Yeah.
So why not follow that?I love that approach because most
(06:44):
investors will start with maybeGoogling what's the highest
cashflow state or what's thehighest cashflow city.
And I think that's like the wrongplace to start.
So are you going for cashflowheavy or are you more so just
ensuring that you have maybecashflow neutral, cover your nut
and have the appreciation happenover time?
Like what's your play there?I find between both my clients and
(07:06):
I, because we pretty much all haveportfolios in Canada, like I
consider someone who is anexisting homeowner, say they own a
house in the GTA, it's a millionbucks, right?
You already have a million bucksof real estate here.
And then they ask them how tohouse your cashflow situation.
They always tell me not good.
(07:27):
That doesn't matter how many
properties they own, pretty muchnot good.
So what I'm finding is most of myclientele and myself included, our
portfolios in Canada, specificallythe Golden Horseshoe of Ontario,
we're all poised quite well formore appreciation.
So pretty much all of us arelooking for more cash flow.
So we're looking for those moreaffordable markets.
So as wonderful as Phoenix is interms of appreciation, expected
(07:48):
appreciation, just from populationgrowth, right?
Everyone from the West Coast,North America, basically, that's
like their most popular place togo for winter vacation, right?
For us on the East, we're allgoing to Florida, right?
So it's less as a populardestination for East Coast
Canadians.
But my point, though, is that
Phoenix is already pretty pricey.
It's hard to get a house for under
300 grand versus markets likeMemphis, Tennessee, where I think
over half my clients are buyingpart outside Atlanta, Georgia and
my property in Kansas City,Missouri.
(08:09):
Those are more affordable markets.
You can get better yields and get
higher cap rates as well.
Most Canadians are all looking for
cash flow because they're allgetting squeezed here with the
poor affordability.
And most investors don't even know
what cap rate means because theycan't get that much cash.
So your clients that you'reguiding to buying in the States,
in terms of their setup, are yousetting up like a corp there or
(08:32):
some of them putting it in theirpersonal names?
How is that structured typically?What I'm promoting with share is
more of a passive investment.
So we're pretty much all
structured the same.
For those who have done more
research on this, they've heard ofthe GPLP, General Partner Limited
Partner Structure.
So pretty much all of us have that
sort of structure, which isintended for those who are passive
Canadian investors.
Luckily, I have my wife as a
(08:53):
Canadian accountant.
My friend at Share, Carmen, is
also a CPA in both sides of theborder.
And also we've consulted, ofcourse, lenders, right?
Because like you guys are lenders,you get it, right?
You have to appease CRA, thelenders, liability protection, and
also privacy is a big thing in theStates.
So there's more optimal choicesfor privacy.
And, you know, I like to beprivate.
One of my goals going forward isthat a property manager or tenant
(09:15):
never calls me again.
And I can achieve that.
that.
Again, I've been a landlord for 20
years.
I put in my dues and I kind of
know what Yeah, I've been again,in Atlanta for 20 I put in years.
my dues and I kind of know what Iwant now going You've been
investing for how long here inCanada?
It's like 15 years now?Since 2005.
Yeah, it's almost 20 years.
You've definitely seen it all, the
(09:36):
highs and lows.
And obviously you've probably made
out pretty well over the years,but you're kind of seeing the
writing on the wall.
And I think a lot of us are.
There's some solutions to helpwith that.
I'll drop their name, Single Key.
I don't know if you've heard of
Single Key.
I use Single Key, yeah.
So that mitigates some of therisk, obviously.
For listeners that don't knowSingle Key, they cover you up to a
(09:57):
year for if your tenant stopspaying you, they'll kick in if you
have their rent insurance.
And you obviously have a fee for
that every month.
And it helps, but you still run
the risk of landlord-tenant boardpast a year or so.
there's a cost half of my rentevery year.
half For sure, for sure, yeah.
But it helps.
So going back to your structure,DLP is most favorable for
Canadians from a tax perspective,right?
Like obviously everyone'ssituation is different, but to
kind of put like more of a blanketstatement, LP is generally the
(10:19):
route to go for Canadians.
And right, no, I'm not an
accountant.
I'm not your listeners accountant,
they should always get their ownadvice.
The comment I want to make though,is most people who mess this up
and end up paying double taxation,generally, they're getting advice
from an American lawyer,accountant guru, right?
And it's just reality is thatthey're not used to dealing with
Canadians.
So you really do need to speak to
a Canadian accountant who'sfamiliar with working with
Americans.
But yeah, so that's the structure
we have.
We have GPLP structure.
(10:40):
And again, if they say that totheir accountant or lawyer, they
should understand that.
If your accountant or lawyer
doesn't understand that, it'sprobably a good idea to find a
different accountant or lawyer towork with if this is your
strategy.
There's a lot of nuance and
different things when it comes toinvesting.
And we found that clients don'talways have the best team in the
background to facilitate theirgrowth and their setup and what
(11:01):
they're actually looking toaccomplish.
So it's important to ask some ofthese questions.
Sometimes you have a relationshipwith someone who, when you're just
a straight T4 employee, they havea basic level and they're able to
file your taxes.
But as you add complexity, you
want to add skills in your backendteam as well, because that's
really going to save you money andpain and heartache Absolutely.
To mention some other things aboutthe States, the advantages is for
(11:24):
anyone who knows commercial realestate, like retail or industrial
in Canada, I mean, that's myanalogy for how residential
landlording is in the States.
For example, I literally had this,
my tenant had her boyfriend movein a year ago and didn't tell me.
She only told me because her newlandlord was doing a reference
check.
So she had to let me know that her
boyfriend had lived there for ayear.
By the way, he's been here for ayear.
(11:46):
I haven't been living here a year,but it's just so you know.
But yeah, I have no rights aroundthat.
Versus if this was a landlord fromthe friendly usa i can charge that
new person rent not only that newperson any additional people they
have moving with them long termand also pets right each dog and
depending on the size as well iwould charge them rent as well if
they choose not to pay me rent ican find them for my the way, he's
(12:08):
been i got, I think we werecharging 30 bucks per dog and I
think they have two dogs.
So like right there, 60 bucks
extra, it helps.
It can mitigate some of the costs.
Yeah.
So if you find out that say they
had a dog and another person, canyou do that charge retroactively
or is it just going forward?Again, it's depending on the
lease, but that's how I would wordmy leases.
(12:29):
Okay.
No, that's cool.
That's really cool.
I would not fly here at all not oh
you can say no to smoking tooright okay you know no different
in a commercial property retailindustrial you can have terms that
are in your it's very clear fromlike a cost of investment cash
flow rights everything why peopleshould be in control yeah can you
highlight a few reasons whysomeone wouldn't do it?
Like what would be the avatar ofsomeone who wouldn't be a fit for
this type of investment?be in control yeah I was literally
(12:51):
talking to my wife about it thismorning.
I have a business now in theStates for investing.
I have to file taxes in the Statesas well.
Okay.
So that's why I tell my clients
and anyone who comes into the doorand wants to talk about this, like
I always say, you have to beplanning to buy at least three
properties to pay for theaccounting.
But then I'll also say, you know,what's different about investing
in the States is because the waythat we do it, it'll be smooth.
(13:14):
So you can bring on partners veryeasily and passively, family
members, whatnot.
I have a group of tech bro
clients.
They each work for one of the fan
companies.
So they all make lots of money and
they're like childhood friends sowhy not why not four individuals
with lots of money just divvy upthe shares equally and then you
only pay for one accounting feeyeah great idea yeah you need to
(13:34):
do scale but that's no reallydifferent than here as well you
need to do enough scale and reallyyou need to do enough cash flow to
afford for professional servicesright you have to pay an
accountant here to do your filingas well but yeah no different than
the states you need to do enoughcash flow to afford for
professional services, right?You have to pay an accountant here
to do your filing as well.
But yeah, no different than the
(13:55):
States.
You need to make enough cash flow
to make everything worthwhile.
Ideally, not pay as much out of
pocket.
But I'll say it's a lot easier in
the States to cash flow, right?This little $158,000 house I'm
buying, it'll be a 5.9 cap.
And so if a listener doesn't
understand what cap rate is,please look it up, right?
Investopedia, there's people thatwrite about it on youtube right
i'm sure you guys have talkedabout it and you will gladly talk
(14:15):
to your client about the cap rateis but every sophisticated
investor and professional realestate investor knows what a
capitalization rate is you justgot this one under wraps and it
hasn't closed yet right it's anapproach no i'm waiting for the
home inspection and my quote i getballpark the.
So I'm still waiting for the quoteand whatnot.
So it's still a conditional deal.
It is from a wholesaler and it's
(14:36):
done off market.
Cher brought me the deal.
So that was my question becauseI've gone down the route of, like
getting on wholesalers list is awhole project that you have to
like, you have to scan Facebookgroups.
You have to get on their emaillist.
You have to sort through theemails.
Like it's a whole process and I'vegone down that route.
And that's why I stopped the oneproperty, because I'm busy in my
mortgage business.
And I'm like, I can't take on this
whole other business.
So why don't we chat a bit about
like what share does and how theybrought to you this deal?
I'd love to kind of go throughthat and maybe just run through
the numbers on this property.
(14:57):
to sort I Sure.
It is an American company justhappens that the four founders are
Canadian.
The CFO, for example, she's almost
a grandma.
She's been a CPA for, I don't know
how long, over 30 years,practicing tax accountant.
She's from Canada, but she livesin Tampa Bay.
She has 70 investment propertiesherself.
And again, she's a CPA on bothsides of the border.
And then she said something to meI've never heard an investor say.
(15:18):
She said the last few propertiesshe bought, she bought with the
cash flow from her portfolio wowyou guys are mortgage
professionals has anyone bought itoutright let's stay on payments
still that's crazy yeah likeeveryone does refis or key locks
right yeah so like to me mynatural next question is i need to
learn more.
She's been investing since 2008.
And again, she's a practicingaccountant.
She does people's tax returns.
So she's bringing clients to the
States since like the early 2010s.
(15:39):
Right.
So it gave me a lot of comfort inknowing how to do this.
And then what her and her client,Andrew, realized, Andrew's now the
CEO of Share, just how the term Ilike to use is analog.
Like real estate investing islargely analog.
It's a lot better than it used tobe.
I've been a realtor since 2010.
So I remember the old days of
faxing offers and whatnot.
There's nothing like DocuSign
these days, right?It's not nearly as organized now
(15:59):
today as it is available viashare.
Like for example, for mostCanadians, one of their biggest
hurdles is legal structure andthen creating the legal
structures, right?I've heard quotes from accountants
and lawyers between $2,500 to$10,000, right?
So to create my LLC and my LP, andthen my wife and I will own them
personally, just because of theway the new capital gains tax is
the way they are.
So then we can report them as
personal capital gains.
But I think I paid a grand between
the two of them.
(16:20):
Really?
Yeah.
And then the share guided me
through that.
And they just sent me basically a
DocuSign to get my EIN, myEmployment Identification Number,
which is my unique IRS number so Ican pay taxes.
But they're just hand-holding methrough this whole thing.
I'm trying to approve a fund, sothey send me the deals.
First one I bid on.
(16:40):
I didn't know anything about
Kansas City.
But then just, you know, between
ChatGPT and Gemini, I was drivingfrom Muskoka.
So I had a lengthy conversationwith ChatGPT to tell me about
Kansas City, Missouri.
Doing research is easier than
ever.
Like, for example, one of the
things that may give me a lot ofcomfort about Kansas City,
Missouri is the Ford F-150 ismanufactured there.
Right?The U.S.'s number one manufactured
(17:00):
truck for the last 40 years.
That ain't going anywhere.
Yeah, it ain't going anywhere.
7,500 jobs, diversified economy.
And that's actually how I foundout about Panasonic being there.
Even though I've done a ton ofresearch, that one slipped through
my fingers.
I had no idea about the Panasonic
plant.
And now I have like, holy cow, now
I have upside.
A past and now a future reason to
invest.
So again, share family, the deal.
(17:21):
And the interesting thing aboutwholesalers in the States as well
is the good ones, how they scaleup is starting to wholesale for
institutional investors.
So that's actually the wholesale
that we're doing.
Cause you know, just to throw some
numbers around wholesalers in theStates, like an individual might
do like 30, 60 anywhere.
as they start selling to
institutional investors, they caneasily do a Is this thing you only
have like, maybe like threecustomers.
(17:43):
So you do away with all theprevious customers that you're
used to dealing with.
Right.
Tom, like think about how manypeople were on that email list
that you were on.
Yeah, exactly.
They probably have thousands.
Yeah.
And then how many questions thosepeople ask and then how many tie
kickers are Those folks who haveno money who just want to tie it
up and then they go try and thereverse is true too.
Like there's so many wholesale,well, maybe not as many as we'd
(18:04):
had during COVID, but back when Ibought my property, there were so
many wholesalers.
The flip side to that is there's
so many that are new and have noidea what they're doing.
And I imagine like share when theypartner up with these wholesalers,
they're doing the screeningprocess.
They're picking out who the rightwholesalers are to partner up with
too.
So I can see that being a benefit.
(18:24):
Well, the wholesale that I'm withthat provides the deal in this one
is actually the property manager'swholesaler.
Okay.
So yeah, they're their money where
is.
Yeah.
The challenges I find withCanadians is they're just not
familiar with how much biggereverything is in the States.
Like the property manager I'll beusing, the ones our clients are
using, they usually have somethinglike 3,000 houses under management
in that city.
Yeah.
Right.
Which is basically unheard of in
Canada.
So when you have scale, it's like
(18:44):
being a Costco member.
I'm a Costco member.
I live there once a week.
But like, you know, my car rental
is cheaper.
Generally, my groceries are
cheaper.
Eight out of 10 times of getting a
better deal.
Right.
And no different by going throughshare.
Them being an institutionalinvestor, I get access to everyone
that they have access to.
They're property managers.
They're wholesalers.
The property managers will have
lawyers in-house.
They'll have handy people
(19:05):
in-house.
So all those costs come down as
well.
Tenant doesn't pay me rent, they
can just make an internal phonecall, start the paperwork to get
that person, encourage them to payor leave.
So all those costs come down asbeing a customer share, which is
what I'm planning on doing, whatmy clients are doing in the
States.
So they're coordinating right now
on my home inspection and theproperty manager who's going to be
doing my renovation.
Because again, it's because they
(19:25):
have so much scale.
They want this business just so
they can collect their propertymanagement fees.
And the way the contracts arenegotiated as well, because again,
share has clout.
I don't pay property management
fees or asset management feesunless there's rent coming in.
So everyone's incentives are inline with my financial goals.
These things are not easy to getin Canada, in.
So Yeah.
And then once that fee structure
kicks in, how is share set up thatway?
(19:45):
Is it like a percentage of therent?
How does it work that way?all asset managers, more commonly
known as REITs, they all takefees.
Like I have friends in thisbusiness as well.
One of my friends takes 30% equityas well.
I like doing diligence.
I just feel like that's the right
thing to do.
I was researching a publicly
traded and one, they charge feesand they charge performance fees
versus what I like about share.
(20:05):
I Again.
like doing diligence.
I just feel like that's the right
thing to I was do.
researching a publicly traded one
and they charge fees and theycharge performance fees versus
what I like about share.
Again, I'm cheap though.
So I still want an optimizedhigh-performing investment.
So how share makes money is theycharge a 3% acquisition fee based
on the investment value.
So investment value would be like
the purchase of the home plus theimmediate renovation.
(20:26):
plus the immediate renovation.
So 3% of that, and then So 3% of
their that.
ongoing asset management fee.
And then their ongoing assetmanagement fee.
What I'm seeing my clients pay isthey're paying between half a
percent to 1% of that same numberof the investment value.
And that's paid over the year,each month.
But again, that comes out of yourrent.
Okay.
And so when I say cap rate, that's
still after all fees, right?Yeah.
(20:46):
After property management, afterleasing fees, after repairs and
maintenance, after asset sharesfee, after everything.
So again, like I say to Canadiansall the time, buy me a five, six,
seven cap in Canada where I haveall the rights.
And again, the property I'm buyingis a three bedroom After property
square foot for 158,000 American.
Yeah.
Single family dwelling.
You're just not finding that.
And hands off too, right?Hands off.
Yeah.
That's a big win.
And then to add to the hands-offpart, all my financials and
(21:07):
documentation is all managed on myclient portal within Share's
website.
Yeah.
That's cool.
Yeah.
It's easy.
All my bookkeeping is done for me.
No different than discountstockbroker account.
When it comes to tax time, you getyour tax documentation.
Just download the PDF or CSV fileand send it to your accountant.
So all the bookkeeping for theproperties is done already.
So just to be clear, Share doesn'town any of the equity in the
property.
They charge the upfront fee and
the ongoing management.
That's it.
And to And to me, that's cheapbecause nobody does exactly.
Yeah.
I actually assume there was some
sort of ownership part of that.
So and I'm a guy that loves to
leverage.
And I think initial thought for
some people is like, okay, well,like 3%, I don't want to pay that
(21:30):
fee.
But the reverse to that is that
you're going to spin your wheelstrying to find these deals, you're
gonna spend more time, time to meis more valuable than a fee that
you pay up front.
And you have that ongoing
management in one place.
I know I'm selling this hard.
but honestly, I love the idea.
And I like the fact that you can
just be more hands-off and trustthese people that have already put
in the reps and can leverage otherpeople that they've built up this
team and you don't have to go andfind them to do that.
(21:54):
Team is incredibly important.
The chief investment officer of
share is X Starlight Capital.
So the the largest reit the
largest apartment building ownerin canada 53 000 units and he was
taking a director of investmentsfor the u.s portfolio so he was
actively hands on a portfolio like20 000 units that passed through
his desk so he knows more aboutu.s investing than anyone i know
personally right that's sevenbillion dollars worth of
transactions of u.s incomeproperties yeah but at least stack
(22:19):
my team up against we always talkabout like building our team kind
of like in the idea of a hockeyteam so every player you can add
to your existing team you knowsomeone plays better defense so
you have your account you're legalthere but then when it comes to
offense like you want to havesomeone finding the deals you want
to have someone finding greatrates and products and everything
(22:41):
that way.
And you can stack your team this
way.
And anything you can do to buy
back your time is a big win.
So a couple of percentages here
and there, you will save money.
You'll save headaches for sure.
But long-term you free up all thattime, which, you know, go earn
more money, whatever else you doand pour that back into investing.
That's how you're going to scalelong-term.
(23:02):
Going back to the ARV.
So when it's determined the fee on
the total after repair value,who's determining that?
Are you doing your owncalculations and then sending that
into them and they review andmight make some corrections to
that?Or is it them that runs the
numbers?So for value, we're just doing
purely book value.
What you bought it for, what the
price of the renovation was.
Oh, okay.
So they do it after the reno isdone.
Book value, right?Yeah.
ARVs in the market.
(23:23):
But what I'm hearing is that
lending is still pretty tight inthe States.
So ARVs aren't coming in thathigh.
But for my project, I'm expectinglike a $10,000 uplift in equity.
If it's there, great.
If it's not, it's okay.
My numbers still work great.
Yeah.
Yeah.
Yeah, because I think the LTV is
still 65% for Canadians, right?Unless they've gone up to 70, but
from when I was doing it, 65 waslike the highest we were getting.
(23:43):
But folks want their minds blown.
How many lenders are there for
investors in Canada?I think we sent 52.
We had in our portfolio of likeoptions last year and that's just
broker channel.
So add some big ones who aren't in
there yeah not including privateprivate privates but i think the
number is there's over a thousandlenders ready to lend
non-residents and yeah it's adifferent market even though these
(24:05):
are residential properties it'sall commercial mortgages on
residential property yeah exactlyfinitely scalable, as long as you
have the down payment and can finddeals like cashflow.
privates but i Yeah.
And when it comes to that mortgage
financing, is Share helping youwith like partner lenders as well?
Are you on your own to find lenderrelationship?
They're open to folks bringingtheir own mortgage.
Again, Share is a tech company.
And how I explain to clients, it's
(24:26):
like, it's like what you guys do,full service, or it can go like
Amazon levels of service, whereyou may never to a most of my
clients, they go the route ofservice, right?
Because with my clientele, almostall of them are using money from
existing capital in theirproperties here in Canada to
invest in the States.
So it makes sense that they have
more full service, one-stop shopYeah.
Instead of trying to nickel anddime and not have someone that
(24:48):
specializes in Canadians investingin the US because it's completely
different than a US personinvesting in the US.
So why don't we like touch a biton that?
What are your plans here inCanada?
It sounds like you're done.
You're not looking for any more
deals going forward.
You're selling off maybe a portion
of your portfolio here.
Like maybe talk a bit that.
So I've been talking sell forquite a while, even on my show.
(25:11):
It was kind that some people frommy audience wrote in and said,
thank you.
I did sell when you said so.
And other people were saying notto.
I'm grateful for being dumb lucksometimes.
I've sold five of my ownproperties in the last 12 months.
I made the decision to accelerateour selling, I think back in
November, December of last year.
I just didn't like the way things
were going here.
(25:31):
And also just with rates being
high, inflation just being brutalon our properties.
So I've sold four this year sofar.
That might be all I sell this yearto raise capital, pay off debts.
I can be mortgage-free now, whichis amazing.
Pay off our car loan.
So yeah, thanks to real estate.
My advice to my clients is, again,I'm a realtor, so I make money
selling real estate, but I can'tin good conscience recommend to
someone to buy an income propertyfor purely investment purposes in
(25:54):
Ontario.
I don't know BC and Quebec that
well, but I'm guessing it'sprobably similar.
I think BC is worse than Ontario,actually.
I don't know Quebec.
We don't touch that.
Alberta is better, but Alberta isbetter.
is better.
Yeah.
Alberta is better, but then I'lljust put back, you know,
affordability is better in theStates and also the SCR is
available in the States.
It's not in Canada for small
residential.
Yeah.
(26:14):
So my plan is to continue tellingpeople, you know, just use what
share offers.
It's boring.
Use that as a baseline againstanything else you're investing
against.
Because again, I can walk into
five, six, seven cap rates in thesingle family home in the States.
What do I have to do with five,six, seven cap rate in Canada?
You go multi.
You got to go student rental with
(26:35):
like four people in the bedroom.
Right.
Maybe.
Yeah.
And then you guys are lenders.
How much do you like those deals?
It doesn't really fly.
And you're getting alternative So
let's financing.
just say we don't take I was you
them.
guys Yeah.
are How much lenders.
do you like those deals?
It doesn't really And you'regetting fly.
alternative financing.
(26:55):
So let's just say we don't take
them.
I that road.
One of my properties I sold was astudent rental.
I won't say how many people are init, but I was getting really good
rent.
I was with a B lender.
My plan was selling it.
We had an open mortgage.
So I was paying 10% on thatmortgage.
But even with the B, I think Iwould be paying over eight, Yeah.
You could do You could do astudent rental right now for like
seven, seven and a quarter.
(27:15):
Yeah.
1% lender's fee.
Which is Which is like comparable
to the US rates right now forCanadians.
Like, I mean, it's been a whilefor me, but I think like usually
there's 3% more than Canadianrates.
Obviously depends, but I'm prettysure it was around there when I
purchased.
Unfortunately, mine was also in
Hamilton.
So the city is chasing me for
licensing.
No longer though.
There you go.
(27:36):
You're free.
And that's the thing.
I feel so much freer.
I'm so much happier.
Obviously I've made some money,
but yeah, peace of mind.
It's worth a lot.
And stress, I think, will beconsidered the new smoking.
There's a lot of people thatthey're getting sick and they
don't really know why becausestress hasn't been studied enough.
Smoking has been well studied.
I think everyone knows if you can
remove some stress from your life,why wouldn't you?
(27:57):
Yeah.
Yeah.
I'm kind of in that zone right nowtoo.
I just want to declutter, focus onone to two things in my life and
just go deep on it.
Brandon is laughing because I say
this like every day.
I've got properties here that I
want to start offloadingpotentially.
Just having the peace of mind,knowing that they're all gone out
of my life, which is, I feel likeit would free up my mind.
(28:19):
So I agree with that.
My friend in the States, Andrew,
he's a CEO of Share.
Sorry, he's not even in the
States.
He used to live in California, but
now he lives in, he's back inBrampton.
He owns 20 houses he's never seenbefore.
Never seen them before.
They're all in the States because
the management is just so muchbetter in the States.
And he cash flows $10,000 US amonth.
Wow.
(28:40):
From 20 Wow.
From 20 properties, eh?20 properties.
Took him 10 years to accumulateall of them.
But still, where do you find thisin Canada?
Yeah.
I'm just looking for opportunity.
Yeah, that's great.
And less headache.
You know, the funny thing is likea lot of people know this message
is out there.
Almost no one's argued with me.
I've had some very briefconversations, folks say, oh,
there's no appreciation in theStates.
I'm like, that's because youinvest in I just gonna say Yeah.
There's a high cash flow, butyou're not going to get that
appreciation or where I am Indy.
Actually, I've been a bit with
Indy, but same kind of boat.
I have the chart for the area I'm
investing in Kansas City.
(29:00):
The prices have doubled in the
last 10 years.
You can't tell me there's no
appreciation, right?You can't make blanket statements
like that.
You can't tell me places like
Phoenix or Austin, Texas didn'tappreciate the raise in the last
10 years.
Florida.
Florida.
Yeah.
But then just the caveat thatinsurance is a big risk in
Florida.
Yeah.
Yeah.
But then just the caveat that
(29:21):
insurance is a big risk inFlorida.
Yeah.
risk in Yeah.
Especially along the coastlinetoo.
So for a share, for example,they're even looking at divesting
some of their Florida portfolio,even though they're up near Tampa.
You know, just think if you're aninsurance company, you need to
recoup your losses.
So you just increase everyone's
insurance.
Doesn't matter where they're
located.
And does share focus only in
(29:42):
specific states?Like how many states do they deal
in?Pretty the entire country,
anywhere it makes sense forinvesting.
Wherever there's institutionalgrade property management is
generally where it's good toinvest.
Yeah.
So I know the Carolinas, again,
I've mentioned like Alabama,Tennessee, Ohio, they're pretty
much everywhere where it makessense for investing.
That's how capital works.
It'll flow to where it's welcome
and treated well.
Yep.
So not California, not New YorkCity.
Yeah, exactly.
Yeah.
Avoid those.
Just to close it because off, in
case the listener doesn't thoseknow, are generally dependent
(30:03):
friendly areas.
Yeah.
It's like in Ontario.
Maybe not in not in but like
Ontario.
Ontario light.
Yeah.
Beautiful.
Well, Erwin, thank you for comingon today and shining a light on
this.
I know like, Tom and I joke
because we're always like we gotto simplify with running our
brokerage and our book of businessand the properties we already
have.
We're always like we got to
simplify our life.
But then we have someone like you
on the podcast.
And I know like both of our wheels
(30:25):
are spinning, thinking aboutdifferent opportunities and
investing in the States.
And I love that you shared a
version of investing here that'svery hands-off and stress-free.
And I can tell from your mindsetand outlook right now that you're
very happy and the direction isreally great.
And for a lot of people who arestressed or they're not headed in
that same direction, it's reallyrefreshing to see that real estate
(30:45):
investing, just do a little hopbelow the border can still be a
great avenue to build your wealthwith and take that layer of stress
off.
So thank you for coming on today
and shining a light on you forhaving me.
I'm only a real estate investorbecause I'm so stressed out about
all the problems we have comingdown the future.
Like you both have kids, right?Yeah.
What parent doesn't stress abouthow their kids are going to afford
to live?Oh yeah.
You top up the RESP, you know, youadd a rental property here and
(31:08):
there and you're like, all right,well, I was joking with my
daughter the other day.
I'm like, yeah, you'll need like
$2 million for your first starterhome.
That's our saving.
Better top up cost of everything
rising, you really have no choicebut to be an investor.
That's my opinion.
That's my opinion.
That's my experience.
And it's worked out well.
I'll continue buying propertiesbecause, again, governments will
continue to print money.
Inflation will constantly be a
thing.
Housing inflation in the States
(31:29):
for the last 53 years has been5.5% on average.
That's a lot of inflation.
Golden horseshoe has been around
7% over the last 20 years.
So you really have no choice but
to grab some of it or else it getsaway.
Right.
So that was my thought about my
kids' houses when they're born.
Cause this market might get away
from my kids.
I said, it's all those houses now.
So I owe them houses in theStates.
(31:50):
I think that's something peopledon't realize is that the wealth
divide is growing bigger andbigger with each day.
And if you don't get on theproperty ladder, be it here or in
the States, you're not gonna beable to earn at a pace fast enough
to catch it.
You know, maybe one or two people
(32:10):
will be lucky to grab a break likeNVIDIA and the stock market and
make their money that way.
But for the majority of people,
they're squirreling away theirmoney in high interest savings
accounts, effectively losingwealth year after year.
And there's no way to ever catchthe wave.
And I know I felt like this when Ifinished university.
my brother said, you Oh, should gobuy a place in Hamilton.
And we were living in Burlingtonat the time.
(32:31):
And I was like, God, I just don'thave the money.
And he's like, just partner with afew buddies and do it, like get
the place.
And I didn't do it.
I didn't listen to him.
And then like three years later, I
was looking for a place inHamilton, the property prices had
gone way up and I had missed theboat there.
And for a long time, I couldn'tget anything.
And fortunately, I found themortgage industry where we made
(32:53):
money quite quickly and it allowedme to start getting properties.
But without that change inopportunity and industry, I would
have been probably sitting on thesidelines right now too.
And for anyone listening, the nextwave is coming.
The rate cut period is coming asupon us.
Yeah, exactly.
A lot of stimulus for prices to go
up and then for the states a lotof those investments hit in like
2021 so a lot of these factoriesare opening this fall and then so
(33:15):
you want a real estate event likeyou guys know who's the most
motivated real estate buyer thenso got to move right so you So,
you know, when doors open for highpaying manufacturing jobs, you
better believe people are movingeither to buy or to rent.
So me being someone who likes tooptimize their investments, I want
to be there before that happens.
And before the rate cut happens in
the States.
So two events there for sure that
(33:35):
will time quite nicely for it'sbeen a pleasure.
Thank you for hopping on thepodcast and talking all things
about US investing.
And if you have anywhere people
can get a hold of you, where wouldbe?
They can actually go to mywebsite, iwin.sharesfr.com, or
they can just Google me.
I'm very easy to find.
But for folks who want to browsewhat US properties look like in
(33:57):
terms of numbers, they can simplygo to iwin.sharesfr.com and
they'll actually see my deal onthe website as well.
They just need to create anaccount, name and email address.
They can create a free account.
And the property that's on from
Kansas City is the one that I havetied up right now.
Beautiful.
Beautiful.
Thanks, everyone.
All right.
Thank you, guys.
Mortgage Guide. Brandon Love herewith Tom Moffitt and a very
special guest, Erwin Sito.
Erwin is the host of the Truth
About Real Estate Investingpodcast, and he is going to do a
deep dive into why Canadiansshould consider investing into the
U.S.
We're going to also touch on some
other fun topics as well.
(00:28):
So, Erwin, thanks for joining us.
Thanks for having me.
I need to say something as well is
that, you know, it's not oftenthat other real estate
professionals have me on theirplatforms to promote what I'm
talking about because I think manyrealtors, mortgage folks feel that
U.S. investing is a threat totheir existing businesses.
So I think the kudos to you, too,that you're open minded and you
want to share the truth with yourlisteners.
Yeah, I appreciate that.
It is true.
Like, sure, you might be puttingthis out there and getting more
(00:51):
people open minded, which I takeaway business.
But at the same time, if it'ssomething that's inevitable and
it's going to help people alongthe lines of building up their
future and their plans, like whynot put this out there.
And we've always been open withthat stuff.
And yeah, that's why we want tohave you on.
I'm a big listener of yourpodcast.
I've invested in the US as well.
I have one property there.
And I know your plans to build outyour portfolio.
(01:12):
So I figured why not have you onour podcast and really just dive
deep on why Canadians should beconsidering it and really get your
take on it.
I'm going to put you on the spot
here.
Why don't you give us like a two
minute snippet of why a Canadianshould invest in the US?
where to start?All new investors always ask them
about like, what's your worst casescenario?
Your worst case scenario, like I'min Ontario, you know, I've had two
(01:33):
clients have their propertiescondemned by actions that their
tenants caused, as in like theinsurance replacement of the home
exceeds the damage that it doesn'tcause.
Hasn't had their landlord tenantboard hearing yet.
They haven't been getting rent foreight months.
Another client, they haven't beengetting rent for 12 months.
So worst case scenario, it's notfavorable in Ontario specifically.
And also it's just not affordable.
Versus in the States, you have a
non-paying tenant.
They're out in 30, 60 days.
(01:53):
Basically all the laws and rulesfavored the landlord and
landlord-friendly USA.
Mortgages are infinite, basically.
Rights are all in your favor.
The US economy is creating some
significant distance between thetwo economies.
They go into debt too, but they'reinvesting in creating historic
amounts of high-payingmanufacturing jobs.
So simply, if you're going to beton a stock, Canada was a stock in
(02:13):
the U.S. was a stock which wouldyou choose right and to me it's
pretty obvious yeah I if you lookat government policies coming in
across the board and like you lookat the federal budget and
everything here is geared towardsthe tenant protection and it's
very much done so from a we dothis to get votes perspective it
doesn't help the investor at alland you you look at the US and
(02:33):
they are very protective of theirinvestor class.
And it's just a night and daycomparison.
And I know when you do look atthose comparisons of where am I
going to put my money?It's like, you know what, long
term, this is actually a saferplace.
Sure, there's a bit of uneasinesswith it being out of your home
country and not having physicalpresence there per se.
But you can do so much to mitigatethose risks and protect yourself
(02:54):
that way.
to add to your point, Brandon,
like protecting investors, theAmerican government protects
foreign investment as well.
So I, as a Canadian, are pretty
much welcome to buy property inthe States, almost anywhere.
And then especially more welcomein the landlord-friendly places
versus foreign investment islargely discouraged and taxed
heavily, if you will, in Canada.
So again, it's just completely
different environments forinvestment for business.
So I imagine part of your processfor diving into the US and setting
(03:16):
up your locations and where youwant to dive into, like the nice
part is you have 50 states tochoose from.
And not all are treated equal.
part is you have 50 states to
choose from and not all aretreated equal.
So I'd imagine the places you'relooking in are more favorable to
the landlord tenants.
Yes, absolutely.
And that just makes sense.
(03:37):
You know, I just read a book
called Solve for Happy.
You know, it talks about like,
figure out what makes you happyand what doesn't make you happy.
I'm not very happy being anOntario landlord.
So I'm interested in doing so muchmore passive things in the states
going forward.
My government hasn't made me feel
welcome at all here, all levels,federal, provincial, municipal.
At all levels, I don't feelwelcome.
So why should I stay?And it's not just me too.
I have a lot of clients that arehelping the States.
(03:58):
My clients have bought moreproperty in the States than I have
so far.
But yeah, to your point, landlord
friendliness, I studied economicsin school as well.
And I've been studying economicsever since.
So I largely lead with where isinvestment going?
Right.
Right.
And investment in the States alsofollows where is it business
friendly?Where it is business friendly is
generally landlord friendly aswell.
Is there a few spots that are likehigh on your radar right now for
(04:19):
anyone who's like just curiositylevel exploring that?
The two big stories of the Statesin terms of economics is they're
investing heavily in microchipmanufacturing and electric
vehicle.
Anything around electric vehicles
and green energy in general, butlargely electric vehicles.
Folks can just simply Google everybattery or car manufacturer.
Seriously, that's how I did itbecause the news is all cluttered
with like politics and war and,you know, stuff that doesn't help
me as an economist research,right?
(04:40):
So I literally, that's how Iactually had to look up all my
news was, you know, General MotorsInvestment USA, LG Battery
Investment USA.
I actually have a spreadsheet on
it.
I read all these articles, but
then there's just too much totrack.
I honestly have about four pagesof historic levels of investment,
minimum billion dollar investmentor a thousand net new
(05:00):
manufacturing jobs in the States.
There's honestly just tons.
But anyone who follows USAInvesting, the same states keep
coming up, Tennessee, Georgia,Texas, Alabama.
The property I've tied up is inMissouri, specifically Kansas
City, because Kansas City hasquite a bit going on for it.
Nice.
Yeah.
That's awesome.
You're in safe space when it comes
to giant spreadsheets.
We are spreadsheet wizards over
(05:21):
here.
Hey, if you want me to share it,
I'm happy to share it.
Yeah, we would love that.
Actually, everyone asks for itbecause it's a lot of work to put
it together.
But again, it's just weird because
every time I find something, somuch investment in the States.
For example, I knew aboutPanasonic's investment in Nevada.
(05:41):
Because Panasonic is partners withTesla to manufacture batteries.
They're spending some of about$3.6 billion to upgrade that
plant.
What I didn't know was that
Panasonic's building their ownplant just outside Kansas City,
Missouri.
So $4 billion investment.
Expected to create 4,000 net newhigh-paying manufacturing jobs.
Huge.
Yeah, so it's absolutely huge.
And these investments absolutelyeclipse anything going on in
thousand net new Canada.
high-paying manufacturing jobs
huge yeah so it's absolutely hugeand these investments absolutely
eclipse anything going on incanada so again it goes back to my
(06:03):
point and then not just automotiveget away from automotive like
microchips start from a high levelthis is how i always think is what
is the biggest thing in the worldin terms of jobs business whatever
and i think most people can agreeit's ai and And so OpenAI controls
TypeJPT.
So OpenAI is over, what, 50% owned
by Microsoft.
(06:23):
So then I just keep asking
questions.
Who makes Microsoft's microchips?
It's NVIDIA.
And they're actually trying to
diversify to AMD as well.
So then my next Google is, where
are NVIDIA and AMD chips made?Who makes them?
TSMC.
TSMC, the T stands for Taiwan.
Taiwan Semiconductor ManufacturingCompany.
The world's largest outsourcedmanufacturer of microchips, right?
And where are they investing?They're building three fabrication
plants right now in Phoenix,Arizona, $65 billion investment.
It'll create something around6,000 jobs.
So I believe this ranks among thelargest foreign manufacturing
investment in US history.
Yeah.
So why not follow that?I love that approach because most
(06:44):
investors will start with maybeGoogling what's the highest
cashflow state or what's thehighest cashflow city.
And I think that's like the wrongplace to start.
So are you going for cashflowheavy or are you more so just
ensuring that you have maybecashflow neutral, cover your nut
and have the appreciation happenover time?
Like what's your play there?I find between both my clients and
(07:06):
I, because we pretty much all haveportfolios in Canada, like I
consider someone who is anexisting homeowner, say they own a
house in the GTA, it's a millionbucks, right?
You already have a million bucksof real estate here.
And then they ask them how tohouse your cashflow situation.
They always tell me not good.
(07:27):
That doesn't matter how many
properties they own, pretty muchnot good.
So what I'm finding is most of myclientele and myself included, our
portfolios in Canada, specificallythe Golden Horseshoe of Ontario,
we're all poised quite well formore appreciation.
So pretty much all of us arelooking for more cash flow.
So we're looking for those moreaffordable markets.
So as wonderful as Phoenix is interms of appreciation, expected
(07:48):
appreciation, just from populationgrowth, right?
Everyone from the West Coast,North America, basically, that's
like their most popular place togo for winter vacation, right?
For us on the East, we're allgoing to Florida, right?
So it's less as a populardestination for East Coast
Canadians.
But my point, though, is that
Phoenix is already pretty pricey.
It's hard to get a house for under
300 grand versus markets likeMemphis, Tennessee, where I think
over half my clients are buyingpart outside Atlanta, Georgia and
my property in Kansas City,Missouri.
(08:09):
Those are more affordable markets.
You can get better yields and get
higher cap rates as well.
Most Canadians are all looking for
cash flow because they're allgetting squeezed here with the
poor affordability.
And most investors don't even know
what cap rate means because theycan't get that much cash.
So your clients that you'reguiding to buying in the States,
in terms of their setup, are yousetting up like a corp there or
(08:32):
some of them putting it in theirpersonal names?
How is that structured typically?What I'm promoting with share is
more of a passive investment.
So we're pretty much all
structured the same.
For those who have done more
research on this, they've heard ofthe GPLP, General Partner Limited
Partner Structure.
So pretty much all of us have that
sort of structure, which isintended for those who are passive
Canadian investors.
Luckily, I have my wife as a
(08:53):
Canadian accountant.
My friend at Share, Carmen, is
also a CPA in both sides of theborder.
And also we've consulted, ofcourse, lenders, right?
Because like you guys are lenders,you get it, right?
You have to appease CRA, thelenders, liability protection, and
also privacy is a big thing in theStates.
So there's more optimal choicesfor privacy.
And, you know, I like to beprivate.
One of my goals going forward isthat a property manager or tenant
(09:15):
never calls me again.
And I can achieve that.
that.
Again, I've been a landlord for 20
years.
I put in my dues and I kind of
know what Yeah, I've been again,in Atlanta for 20 I put in years.
my dues and I kind of know what Iwant now going You've been
investing for how long here inCanada?
It's like 15 years now?Since 2005.
Yeah, it's almost 20 years.
You've definitely seen it all, the
(09:36):
highs and lows.
And obviously you've probably made
out pretty well over the years,but you're kind of seeing the
writing on the wall.
And I think a lot of us are.
There's some solutions to helpwith that.
I'll drop their name, Single Key.
I don't know if you've heard of
Single Key.
I use Single Key, yeah.
So that mitigates some of therisk, obviously.
For listeners that don't knowSingle Key, they cover you up to a
(09:57):
year for if your tenant stopspaying you, they'll kick in if you
have their rent insurance.
And you obviously have a fee for
that every month.
And it helps, but you still run
the risk of landlord-tenant boardpast a year or so.
there's a cost half of my rentevery year.
half For sure, for sure, yeah.
But it helps.
So going back to your structure,DLP is most favorable for
Canadians from a tax perspective,right?
Like obviously everyone'ssituation is different, but to
kind of put like more of a blanketstatement, LP is generally the
(10:19):
route to go for Canadians.
And right, no, I'm not an
accountant.
I'm not your listeners accountant,
they should always get their ownadvice.
The comment I want to make though,is most people who mess this up
and end up paying double taxation,generally, they're getting advice
from an American lawyer,accountant guru, right?
And it's just reality is thatthey're not used to dealing with
Canadians.
So you really do need to speak to
a Canadian accountant who'sfamiliar with working with
Americans.
But yeah, so that's the structure
we have.
We have GPLP structure.
(10:40):
And again, if they say that totheir accountant or lawyer, they
should understand that.
If your accountant or lawyer
doesn't understand that, it'sprobably a good idea to find a
different accountant or lawyer towork with if this is your
strategy.
There's a lot of nuance and
different things when it comes toinvesting.
And we found that clients don'talways have the best team in the
background to facilitate theirgrowth and their setup and what
(11:01):
they're actually looking toaccomplish.
So it's important to ask some ofthese questions.
Sometimes you have a relationshipwith someone who, when you're just
a straight T4 employee, they havea basic level and they're able to
file your taxes.
But as you add complexity, you
want to add skills in your backendteam as well, because that's
really going to save you money andpain and heartache Absolutely.
To mention some other things aboutthe States, the advantages is for
(11:24):
anyone who knows commercial realestate, like retail or industrial
in Canada, I mean, that's myanalogy for how residential
landlording is in the States.
For example, I literally had this,
my tenant had her boyfriend movein a year ago and didn't tell me.
She only told me because her newlandlord was doing a reference
check.
So she had to let me know that her
boyfriend had lived there for ayear.
By the way, he's been here for ayear.
(11:46):
I haven't been living here a year,but it's just so you know.
But yeah, I have no rights aroundthat.
Versus if this was a landlord fromthe friendly usa i can charge that
new person rent not only that newperson any additional people they
have moving with them long termand also pets right each dog and
depending on the size as well iwould charge them rent as well if
they choose not to pay me rent ican find them for my the way, he's
(12:08):
been i got, I think we werecharging 30 bucks per dog and I
think they have two dogs.
So like right there, 60 bucks
extra, it helps.
It can mitigate some of the costs.
Yeah.
So if you find out that say they
had a dog and another person, canyou do that charge retroactively
or is it just going forward?Again, it's depending on the
lease, but that's how I would wordmy leases.
(12:29):
Okay.
No, that's cool.
That's really cool.
I would not fly here at all not oh
you can say no to smoking tooright okay you know no different
in a commercial property retailindustrial you can have terms that
are in your it's very clear fromlike a cost of investment cash
flow rights everything why peopleshould be in control yeah can you
highlight a few reasons whysomeone wouldn't do it?
Like what would be the avatar ofsomeone who wouldn't be a fit for
this type of investment?be in control yeah I was literally
(12:51):
talking to my wife about it thismorning.
I have a business now in theStates for investing.
I have to file taxes in the Statesas well.
Okay.
So that's why I tell my clients
and anyone who comes into the doorand wants to talk about this, like
I always say, you have to beplanning to buy at least three
properties to pay for theaccounting.
But then I'll also say, you know,what's different about investing
in the States is because the waythat we do it, it'll be smooth.
(13:14):
So you can bring on partners veryeasily and passively, family
members, whatnot.
I have a group of tech bro
clients.
They each work for one of the fan
companies.
So they all make lots of money and
they're like childhood friends sowhy not why not four individuals
with lots of money just divvy upthe shares equally and then you
only pay for one accounting feeyeah great idea yeah you need to
(13:34):
do scale but that's no reallydifferent than here as well you
need to do enough scale and reallyyou need to do enough cash flow to
afford for professional servicesright you have to pay an
accountant here to do your filingas well but yeah no different than
the states you need to do enoughcash flow to afford for
professional services, right?You have to pay an accountant here
to do your filing as well.
But yeah, no different than the
(13:55):
States.
You need to make enough cash flow
to make everything worthwhile.
Ideally, not pay as much out of
pocket.
But I'll say it's a lot easier in
the States to cash flow, right?This little $158,000 house I'm
buying, it'll be a 5.9 cap.
And so if a listener doesn't
understand what cap rate is,please look it up, right?
Investopedia, there's people thatwrite about it on youtube right
i'm sure you guys have talkedabout it and you will gladly talk
(14:15):
to your client about the cap rateis but every sophisticated
investor and professional realestate investor knows what a
capitalization rate is you justgot this one under wraps and it
hasn't closed yet right it's anapproach no i'm waiting for the
home inspection and my quote i getballpark the.
So I'm still waiting for the quoteand whatnot.
So it's still a conditional deal.
It is from a wholesaler and it's
(14:36):
done off market.
Cher brought me the deal.
So that was my question becauseI've gone down the route of, like
getting on wholesalers list is awhole project that you have to
like, you have to scan Facebookgroups.
You have to get on their emaillist.
You have to sort through theemails.
Like it's a whole process and I'vegone down that route.
And that's why I stopped the oneproperty, because I'm busy in my
mortgage business.
And I'm like, I can't take on this
whole other business.
So why don't we chat a bit about
like what share does and how theybrought to you this deal?
I'd love to kind of go throughthat and maybe just run through
the numbers on this property.
(14:57):
to sort I Sure.
It is an American company justhappens that the four founders are
Canadian.
The CFO, for example, she's almost
a grandma.
She's been a CPA for, I don't know
how long, over 30 years,practicing tax accountant.
She's from Canada, but she livesin Tampa Bay.
She has 70 investment propertiesherself.
And again, she's a CPA on bothsides of the border.
And then she said something to meI've never heard an investor say.
(15:18):
She said the last few propertiesshe bought, she bought with the
cash flow from her portfolio wowyou guys are mortgage
professionals has anyone bought itoutright let's stay on payments
still that's crazy yeah likeeveryone does refis or key locks
right yeah so like to me mynatural next question is i need to
learn more.
She's been investing since 2008.
And again, she's a practicingaccountant.
She does people's tax returns.
So she's bringing clients to the
States since like the early 2010s.
(15:39):
Right.
So it gave me a lot of comfort inknowing how to do this.
And then what her and her client,Andrew, realized, Andrew's now the
CEO of Share, just how the term Ilike to use is analog.
Like real estate investing islargely analog.
It's a lot better than it used tobe.
I've been a realtor since 2010.
So I remember the old days of
faxing offers and whatnot.
There's nothing like DocuSign
these days, right?It's not nearly as organized now
(15:59):
today as it is available viashare.
Like for example, for mostCanadians, one of their biggest
hurdles is legal structure andthen creating the legal
structures, right?I've heard quotes from accountants
and lawyers between $2,500 to$10,000, right?
So to create my LLC and my LP, andthen my wife and I will own them
personally, just because of theway the new capital gains tax is
the way they are.
So then we can report them as
personal capital gains.
But I think I paid a grand between
the two of them.
(16:20):
Really?
Yeah.
And then the share guided me
through that.
And they just sent me basically a
DocuSign to get my EIN, myEmployment Identification Number,
which is my unique IRS number so Ican pay taxes.
But they're just hand-holding methrough this whole thing.
I'm trying to approve a fund, sothey send me the deals.
First one I bid on.
(16:40):
I didn't know anything about
Kansas City.
But then just, you know, between
ChatGPT and Gemini, I was drivingfrom Muskoka.
So I had a lengthy conversationwith ChatGPT to tell me about
Kansas City, Missouri.
Doing research is easier than
ever.
Like, for example, one of the
things that may give me a lot ofcomfort about Kansas City,
Missouri is the Ford F-150 ismanufactured there.
Right?The U.S.'s number one manufactured
(17:00):
truck for the last 40 years.
That ain't going anywhere.
Yeah, it ain't going anywhere.
7,500 jobs, diversified economy.
And that's actually how I foundout about Panasonic being there.
Even though I've done a ton ofresearch, that one slipped through
my fingers.
I had no idea about the Panasonic
plant.
And now I have like, holy cow, now
I have upside.
A past and now a future reason to
invest.
So again, share family, the deal.
(17:21):
And the interesting thing aboutwholesalers in the States as well
is the good ones, how they scaleup is starting to wholesale for
institutional investors.
So that's actually the wholesale
that we're doing.
Cause you know, just to throw some
numbers around wholesalers in theStates, like an individual might
do like 30, 60 anywhere.
as they start selling to
institutional investors, they caneasily do a Is this thing you only
have like, maybe like threecustomers.
(17:43):
So you do away with all theprevious customers that you're
used to dealing with.
Right.
Tom, like think about how manypeople were on that email list
that you were on.
Yeah, exactly.
They probably have thousands.
Yeah.
And then how many questions thosepeople ask and then how many tie
kickers are Those folks who haveno money who just want to tie it
up and then they go try and thereverse is true too.
Like there's so many wholesale,well, maybe not as many as we'd
(18:04):
had during COVID, but back when Ibought my property, there were so
many wholesalers.
The flip side to that is there's
so many that are new and have noidea what they're doing.
And I imagine like share when theypartner up with these wholesalers,
they're doing the screeningprocess.
They're picking out who the rightwholesalers are to partner up with
too.
So I can see that being a benefit.
(18:24):
Well, the wholesale that I'm withthat provides the deal in this one
is actually the property manager'swholesaler.
Okay.
So yeah, they're their money where
is.
Yeah.
The challenges I find withCanadians is they're just not
familiar with how much biggereverything is in the States.
Like the property manager I'll beusing, the ones our clients are
using, they usually have somethinglike 3,000 houses under management
in that city.
Yeah.
Right.
Which is basically unheard of in
Canada.
So when you have scale, it's like
(18:44):
being a Costco member.
I'm a Costco member.
I live there once a week.
But like, you know, my car rental
is cheaper.
Generally, my groceries are
cheaper.
Eight out of 10 times of getting a
better deal.
Right.
And no different by going throughshare.
Them being an institutionalinvestor, I get access to everyone
that they have access to.
They're property managers.
They're wholesalers.
The property managers will have
lawyers in-house.
They'll have handy people
(19:05):
in-house.
So all those costs come down as
well.
Tenant doesn't pay me rent, they
can just make an internal phonecall, start the paperwork to get
that person, encourage them to payor leave.
So all those costs come down asbeing a customer share, which is
what I'm planning on doing, whatmy clients are doing in the
States.
So they're coordinating right now
on my home inspection and theproperty manager who's going to be
doing my renovation.
Because again, it's because they
(19:25):
have so much scale.
They want this business just so
they can collect their propertymanagement fees.
And the way the contracts arenegotiated as well, because again,
share has clout.
I don't pay property management
fees or asset management feesunless there's rent coming in.
So everyone's incentives are inline with my financial goals.
These things are not easy to getin Canada, in.
So Yeah.
And then once that fee structure
kicks in, how is share set up thatway?
(19:45):
Is it like a percentage of therent?
How does it work that way?all asset managers, more commonly
known as REITs, they all takefees.
Like I have friends in thisbusiness as well.
One of my friends takes 30% equityas well.
I like doing diligence.
I just feel like that's the right
thing to do.
I was researching a publicly
traded and one, they charge feesand they charge performance fees
versus what I like about share.
(20:05):
I Again.
like doing diligence.
I just feel like that's the right
thing to I was do.
researching a publicly traded one
and they charge fees and theycharge performance fees versus
what I like about share.
Again, I'm cheap though.
So I still want an optimizedhigh-performing investment.
So how share makes money is theycharge a 3% acquisition fee based
on the investment value.
So investment value would be like
the purchase of the home plus theimmediate renovation.
(20:26):
plus the immediate renovation.
So 3% of that, and then So 3% of
their that.
ongoing asset management fee.
And then their ongoing assetmanagement fee.
What I'm seeing my clients pay isthey're paying between half a
percent to 1% of that same numberof the investment value.
And that's paid over the year,each month.
But again, that comes out of yourrent.
Okay.
And so when I say cap rate, that's
still after all fees, right?Yeah.
(20:46):
After property management, afterleasing fees, after repairs and
maintenance, after asset sharesfee, after everything.
So again, like I say to Canadiansall the time, buy me a five, six,
seven cap in Canada where I haveall the rights.
And again, the property I'm buyingis a three bedroom After property
square foot for 158,000 American.
Yeah.
Single family dwelling.
You're just not finding that.
And hands off too, right?Hands off.
Yeah.
That's a big win.
And then to add to the hands-offpart, all my financials and
(21:07):
documentation is all managed on myclient portal within Share's
website.
Yeah.
That's cool.
Yeah.
It's easy.
All my bookkeeping is done for me.
No different than discountstockbroker account.
When it comes to tax time, you getyour tax documentation.
Just download the PDF or CSV fileand send it to your accountant.
So all the bookkeeping for theproperties is done already.
So just to be clear, Share doesn'town any of the equity in the
property.
They charge the upfront fee and
the ongoing management.
That's it.
And to And to me, that's cheapbecause nobody does exactly.
Yeah.
I actually assume there was some
sort of ownership part of that.
So and I'm a guy that loves to
leverage.
And I think initial thought for
some people is like, okay, well,like 3%, I don't want to pay that
(21:30):
fee.
But the reverse to that is that
you're going to spin your wheelstrying to find these deals, you're
gonna spend more time, time to meis more valuable than a fee that
you pay up front.
And you have that ongoing
management in one place.
I know I'm selling this hard.
but honestly, I love the idea.
And I like the fact that you can
just be more hands-off and trustthese people that have already put
in the reps and can leverage otherpeople that they've built up this
team and you don't have to go andfind them to do that.
(21:54):
Team is incredibly important.
The chief investment officer of
share is X Starlight Capital.
So the the largest reit the
largest apartment building ownerin canada 53 000 units and he was
taking a director of investmentsfor the u.s portfolio so he was
actively hands on a portfolio like20 000 units that passed through
his desk so he knows more aboutu.s investing than anyone i know
personally right that's sevenbillion dollars worth of
transactions of u.s incomeproperties yeah but at least stack
(22:19):
my team up against we always talkabout like building our team kind
of like in the idea of a hockeyteam so every player you can add
to your existing team you knowsomeone plays better defense so
you have your account you're legalthere but then when it comes to
offense like you want to havesomeone finding the deals you want
to have someone finding greatrates and products and everything
(22:41):
that way.
And you can stack your team this
way.
And anything you can do to buy
back your time is a big win.
So a couple of percentages here
and there, you will save money.
You'll save headaches for sure.
But long-term you free up all thattime, which, you know, go earn
more money, whatever else you doand pour that back into investing.
That's how you're going to scalelong-term.
(23:02):
Going back to the ARV.
So when it's determined the fee on
the total after repair value,who's determining that?
Are you doing your owncalculations and then sending that
into them and they review andmight make some corrections to
that?Or is it them that runs the
numbers?So for value, we're just doing
purely book value.
What you bought it for, what the
price of the renovation was.
Oh, okay.
So they do it after the reno isdone.
Book value, right?Yeah.
ARVs in the market.
(23:23):
But what I'm hearing is that
lending is still pretty tight inthe States.
So ARVs aren't coming in thathigh.
But for my project, I'm expectinglike a $10,000 uplift in equity.
If it's there, great.
If it's not, it's okay.
My numbers still work great.
Yeah.
Yeah.
Yeah, because I think the LTV is
still 65% for Canadians, right?Unless they've gone up to 70, but
from when I was doing it, 65 waslike the highest we were getting.
(23:43):
But folks want their minds blown.
How many lenders are there for
investors in Canada?I think we sent 52.
We had in our portfolio of likeoptions last year and that's just
broker channel.
So add some big ones who aren't in
there yeah not including privateprivate privates but i think the
number is there's over a thousandlenders ready to lend
non-residents and yeah it's adifferent market even though these
(24:05):
are residential properties it'sall commercial mortgages on
residential property yeah exactlyfinitely scalable, as long as you
have the down payment and can finddeals like cashflow.
privates but i Yeah.
And when it comes to that mortgage
financing, is Share helping youwith like partner lenders as well?
Are you on your own to find lenderrelationship?
They're open to folks bringingtheir own mortgage.
Again, Share is a tech company.
And how I explain to clients, it's
(24:26):
like, it's like what you guys do,full service, or it can go like
Amazon levels of service, whereyou may never to a most of my
clients, they go the route ofservice, right?
Because with my clientele, almostall of them are using money from
existing capital in theirproperties here in Canada to
invest in the States.
So it makes sense that they have
more full service, one-stop shopYeah.
Instead of trying to nickel anddime and not have someone that
(24:48):
specializes in Canadians investingin the US because it's completely
different than a US personinvesting in the US.
So why don't we like touch a biton that?
What are your plans here inCanada?
It sounds like you're done.
You're not looking for any more
deals going forward.
You're selling off maybe a portion
of your portfolio here.
Like maybe talk a bit that.
So I've been talking sell forquite a while, even on my show.
(25:11):
It was kind that some people frommy audience wrote in and said,
thank you.
I did sell when you said so.
And other people were saying notto.
I'm grateful for being dumb lucksometimes.
I've sold five of my ownproperties in the last 12 months.
I made the decision to accelerateour selling, I think back in
November, December of last year.
I just didn't like the way things
were going here.
(25:31):
And also just with rates being
high, inflation just being brutalon our properties.
So I've sold four this year sofar.
That might be all I sell this yearto raise capital, pay off debts.
I can be mortgage-free now, whichis amazing.
Pay off our car loan.
So yeah, thanks to real estate.
My advice to my clients is, again,I'm a realtor, so I make money
selling real estate, but I can'tin good conscience recommend to
someone to buy an income propertyfor purely investment purposes in
(25:54):
Ontario.
I don't know BC and Quebec that
well, but I'm guessing it'sprobably similar.
I think BC is worse than Ontario,actually.
I don't know Quebec.
We don't touch that.
Alberta is better, but Alberta isbetter.
is better.
Yeah.
Alberta is better, but then I'lljust put back, you know,
affordability is better in theStates and also the SCR is
available in the States.
It's not in Canada for small
residential.
Yeah.
(26:14):
So my plan is to continue tellingpeople, you know, just use what
share offers.
It's boring.
Use that as a baseline againstanything else you're investing
against.
Because again, I can walk into
five, six, seven cap rates in thesingle family home in the States.
What do I have to do with five,six, seven cap rate in Canada?
You go multi.
You got to go student rental with
(26:35):
like four people in the bedroom.
Right.
Maybe.
Yeah.
And then you guys are lenders.
How much do you like those deals?
It doesn't really fly.
And you're getting alternative So
let's financing.
just say we don't take I was you
them.
guys Yeah.
are How much lenders.
do you like those deals?
It doesn't really And you'regetting fly.
alternative financing.
(26:55):
So let's just say we don't take
them.
I that road.
One of my properties I sold was astudent rental.
I won't say how many people are init, but I was getting really good
rent.
I was with a B lender.
My plan was selling it.
We had an open mortgage.
So I was paying 10% on thatmortgage.
But even with the B, I think Iwould be paying over eight, Yeah.
You could do You could do astudent rental right now for like
seven, seven and a quarter.
(27:15):
Yeah.
1% lender's fee.
Which is Which is like comparable
to the US rates right now forCanadians.
Like, I mean, it's been a whilefor me, but I think like usually
there's 3% more than Canadianrates.
Obviously depends, but I'm prettysure it was around there when I
purchased.
Unfortunately, mine was also in
Hamilton.
So the city is chasing me for
licensing.
No longer though.
There you go.
(27:36):
You're free.
And that's the thing.
I feel so much freer.
I'm so much happier.
Obviously I've made some money,
but yeah, peace of mind.
It's worth a lot.
And stress, I think, will beconsidered the new smoking.
There's a lot of people thatthey're getting sick and they
don't really know why becausestress hasn't been studied enough.
Smoking has been well studied.
I think everyone knows if you can
remove some stress from your life,why wouldn't you?
(27:57):
Yeah.
Yeah.
I'm kind of in that zone right nowtoo.
I just want to declutter, focus onone to two things in my life and
just go deep on it.
Brandon is laughing because I say
this like every day.
I've got properties here that I
want to start offloadingpotentially.
Just having the peace of mind,knowing that they're all gone out
of my life, which is, I feel likeit would free up my mind.
(28:19):
So I agree with that.
My friend in the States, Andrew,
he's a CEO of Share.
Sorry, he's not even in the
States.
He used to live in California, but
now he lives in, he's back inBrampton.
He owns 20 houses he's never seenbefore.
Never seen them before.
They're all in the States because
the management is just so muchbetter in the States.
And he cash flows $10,000 US amonth.
Wow.
(28:40):
From 20 Wow.
From 20 properties, eh?20 properties.
Took him 10 years to accumulateall of them.
But still, where do you find thisin Canada?
Yeah.
I'm just looking for opportunity.
Yeah, that's great.
And less headache.
You know, the funny thing is likea lot of people know this message
is out there.
Almost no one's argued with me.
I've had some very briefconversations, folks say, oh,
there's no appreciation in theStates.
I'm like, that's because youinvest in I just gonna say Yeah.
There's a high cash flow, butyou're not going to get that
appreciation or where I am Indy.
Actually, I've been a bit with
Indy, but same kind of boat.
I have the chart for the area I'm
investing in Kansas City.
(29:00):
The prices have doubled in the
last 10 years.
You can't tell me there's no
appreciation, right?You can't make blanket statements
like that.
You can't tell me places like
Phoenix or Austin, Texas didn'tappreciate the raise in the last
10 years.
Florida.
Florida.
Yeah.
But then just the caveat thatinsurance is a big risk in
Florida.
Yeah.
Yeah.
But then just the caveat that
(29:21):
insurance is a big risk inFlorida.
Yeah.
risk in Yeah.
Especially along the coastlinetoo.
So for a share, for example,they're even looking at divesting
some of their Florida portfolio,even though they're up near Tampa.
You know, just think if you're aninsurance company, you need to
recoup your losses.
So you just increase everyone's
insurance.
Doesn't matter where they're
located.
And does share focus only in
(29:42):
specific states?Like how many states do they deal
in?Pretty the entire country,
anywhere it makes sense forinvesting.
Wherever there's institutionalgrade property management is
generally where it's good toinvest.
Yeah.
So I know the Carolinas, again,
I've mentioned like Alabama,Tennessee, Ohio, they're pretty
much everywhere where it makessense for investing.
That's how capital works.
It'll flow to where it's welcome
and treated well.
Yep.
So not California, not New YorkCity.
Yeah, exactly.
Yeah.
Avoid those.
Just to close it because off, in
case the listener doesn't thoseknow, are generally dependent
(30:03):
friendly areas.
Yeah.
It's like in Ontario.
Maybe not in not in but like
Ontario.
Ontario light.
Yeah.
Beautiful.
Well, Erwin, thank you for comingon today and shining a light on
this.
I know like, Tom and I joke
because we're always like we gotto simplify with running our
brokerage and our book of businessand the properties we already
have.
We're always like we got to
simplify our life.
But then we have someone like you
on the podcast.
And I know like both of our wheels
(30:25):
are spinning, thinking aboutdifferent opportunities and
investing in the States.
And I love that you shared a
version of investing here that'svery hands-off and stress-free.
And I can tell from your mindsetand outlook right now that you're
very happy and the direction isreally great.
And for a lot of people who arestressed or they're not headed in
that same direction, it's reallyrefreshing to see that real estate
(30:45):
investing, just do a little hopbelow the border can still be a
great avenue to build your wealthwith and take that layer of stress
off.
So thank you for coming on today
and shining a light on you forhaving me.
I'm only a real estate investorbecause I'm so stressed out about
all the problems we have comingdown the future.
Like you both have kids, right?Yeah.
What parent doesn't stress abouthow their kids are going to afford
to live?Oh yeah.
You top up the RESP, you know, youadd a rental property here and
(31:08):
there and you're like, all right,well, I was joking with my
daughter the other day.
I'm like, yeah, you'll need like
$2 million for your first starterhome.
That's our saving.
Better top up cost of everything
rising, you really have no choicebut to be an investor.
That's my opinion.
That's my opinion.
That's my experience.
And it's worked out well.
I'll continue buying propertiesbecause, again, governments will
continue to print money.
Inflation will constantly be a
thing.
Housing inflation in the States
(31:29):
for the last 53 years has been5.5% on average.
That's a lot of inflation.
Golden horseshoe has been around
7% over the last 20 years.
So you really have no choice but
to grab some of it or else it getsaway.
Right.
So that was my thought about my
kids' houses when they're born.
Cause this market might get away
from my kids.
I said, it's all those houses now.
So I owe them houses in theStates.
(31:50):
I think that's something peopledon't realize is that the wealth
divide is growing bigger andbigger with each day.
And if you don't get on theproperty ladder, be it here or in
the States, you're not gonna beable to earn at a pace fast enough
to catch it.
You know, maybe one or two people
(32:10):
will be lucky to grab a break likeNVIDIA and the stock market and
make their money that way.
But for the majority of people,
they're squirreling away theirmoney in high interest savings
accounts, effectively losingwealth year after year.
And there's no way to ever catchthe wave.
And I know I felt like this when Ifinished university.
my brother said, you Oh, should gobuy a place in Hamilton.
And we were living in Burlingtonat the time.
(32:31):
And I was like, God, I just don'thave the money.
And he's like, just partner with afew buddies and do it, like get
the place.
And I didn't do it.
I didn't listen to him.
And then like three years later, I
was looking for a place inHamilton, the property prices had
gone way up and I had missed theboat there.
And for a long time, I couldn'tget anything.
And fortunately, I found themortgage industry where we made
(32:53):
money quite quickly and it allowedme to start getting properties.
But without that change inopportunity and industry, I would
have been probably sitting on thesidelines right now too.
And for anyone listening, the nextwave is coming.
The rate cut period is coming asupon us.
Yeah, exactly.
A lot of stimulus for prices to go
up and then for the states a lotof those investments hit in like
2021 so a lot of these factoriesare opening this fall and then so
(33:15):
you want a real estate event likeyou guys know who's the most
motivated real estate buyer thenso got to move right so you So,
you know, when doors open for highpaying manufacturing jobs, you
better believe people are movingeither to buy or to rent.
So me being someone who likes tooptimize their investments, I want
to be there before that happens.
And before the rate cut happens in
the States.
So two events there for sure that
(33:35):
will time quite nicely for it'sbeen a pleasure.
Thank you for hopping on thepodcast and talking all things
about US investing.
And if you have anywhere people
can get a hold of you, where wouldbe?
They can actually go to mywebsite, iwin.sharesfr.com, or
they can just Google me.
I'm very easy to find.
But for folks who want to browsewhat US properties look like in
(33:57):
terms of numbers, they can simplygo to iwin.sharesfr.com and
they'll actually see my deal onthe website as well.
They just need to create anaccount, name and email address.
They can create a free account.
And the property that's on from
Kansas City is the one that I havetied up right now.
Beautiful.
Beautiful.
Thanks, everyone.
All right.
Thank you, guys.
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