Building from the ground up: Real estate investing in Canada with Scott McGillivray

Get ready for an in-depth conversation with savvy real estate investor Scott McGillivray, as he shares the ins and outs of his journey from a university student facing housing challenges to a real estate investment guru. Discover Scott's strategic approaches to investment, key financial insights, and personal anecdotes that highlight the resilience required to thrive in the competitive world of real estate.

Whether you’re an aspiring entrepreneur or a Canadian looking to dip your toes into real estate investing in Canada, this episode is for you!

Here are three reasons why you should listen to this episode:

1. Learn the value of leverage when it comes to your capital — whether that’s actual cash or equity.
2. Find out why it’s critical to tap into expertise, building a team of professionals to support you along your homeownership journey.
3. Discover the reality of real estate investing in Canada — and why you should start right now.

Resources

• Visit CIBC for more smart advice
• Watch episodes of Income Propertyfor lessons on how to leverage your home as a real estate investment.
• Watch episodes of Buying In for more real estate advice.

Episode Highlights

[01:23] Scott’s origin story and first real estate investment:

• Scott started his real estate journey while in university after facing the challenge of finding affordable housing.
• It wasn’t necessarily about wealth at the time — back then, it was just about finding a reliable place to live.
• His first shot at real estate investing in Canada was prompted by a suggestion from a realtor to buy instead of rent.
• Although his family and friends cautioned him against buying real estate, he elected to listen to his real estate agent, financial advisor, and mortgage advisor instead.

“Why take financial advice from broke people when I have — I hate to say it — I have these people who have a track record of success with money, giving me different advice?”

[09:23] Strategies for building a real estate portfolio

• Scott explains his aggressive strategy of using equity from one property to buy more, scaling up rapidly.
• He discusses transitioning from basic cash flow focus to long-term equity building and strategic financial planning.

[09:24] “You have to be ruthless about achieving your goals. And you have to make smart goals. So set up your goals to make sure that they're realistic, they're time bound, that there's a certain metric attached to them.”

• The evolution of his business model included learning to manage and leverage financial tools and market changes effectively.

[19:15] Advice for new investors

• Scott advises new investors to make decisions based on logic and calculations rather than emotions.
• Another critical piece of advice to new investors is to dislike failure, rather than fear it.

[20:36] “You can hate losing, that's great, but you can't be afraid of it. You just have to learn how to understand this part of the process. It's worth losing ten times, it's all worth it when you win that one time. But if you're afraid, you never get the win.”

• He stresses the importance of being proactive in creating positive cash-flowing properties as they rarely come ready-made.
• Scott encourages new investors to educate themselves and use professional advice to navigate the real estate market.

[22:55] “When the work needs to be done, the best thing you can do is lead by example.”

[29:33] Scott’s reflections on his personal experiences

• Scott reflects on the importance of persistence and adapting to market conditions throughout his career.
• He shares personal anecdotes of overcoming challenges and leveraging opportunities that seemed daunting at first.
• Scott discusses the value of learning from both successes and failures, emphasising  continuous improvement.

[35:39] The future outlook on real estate investing in Canada

• Scott talks about adapting strategies to cope with economic changes, such as interest rate fluctuations and market dynamics.
• He expresses optimism about the future of real estate and the potential for continued growth and adaptation.
• Scott emphasises the importance of long-term planning and strategic investment to navigate through varying economic climates.

[43:55] “One of the biggest secrets to succeeding as an entrepreneur, I believe, is making sure that other people get to their goals.”

• He concludes by sharing his commitment to both personal growth and helping others achieve their real