Michelle and Melissa share their journey from stable government careers to successful multifamily real estate investing, revealing how they build wealth and help others invest without dealing with the day-to-day hassles of property management. Their story demonstrates how real estate can create financial freedom and time flexibility that traditional employment cannot provide.
• Transitioning from government jobs to real estate investing after realizing relying solely on earned income wouldn't create the financial future they wanted
• Starting as passive investors before moving to active investing allowed them to learn the industry while building confidence
• Multifamily properties offer better risk mitigation than single-family homes because when one tenant moves out, it's a non-event financially
• Commercial financing (5+ units) can be easier to secure than residential, offering more flexibility and better economies of scale
• Their company, Magnetic Ventures, creates hands-off investment opportunities for busy professionals who want real estate benefits without management headaches
• Education is critical - they dedicate time to teaching their investors about both risks and benefits of each opportunity
• "Build Wealth, Pay it Forward" philosophy shapes their approach to investments and community involvement
• Finding the right partners with complementary strengths creates more opportunities than trying to do everything alone
• Investing in proper education up front prevents costly mistakes that could set you back tens of thousands of dollars
Remember, if you don't find a way to make money while you sleep, you'll be working until you die. Take action today and build your real estate portfolio with partners who share your vision.
Connect with Magnetic Ventures: https://linktr.ee/magneticventuresinc?utm_source=linktree_profile_share<sid=83104ffd-82c5-42d6-9b7e-c56d69eb4ca2
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You know, Warren Buffett says it best right, If
you don't find a way to makemoney while you're sleeping,
you're going to be working untilyou die.
Speaker 2 (00:09):
Welcome to the 5 Questions Podcast, where we
unlock real estate and businessinsights one question at a time.
Welcome to the 5 QuestionsPodcast.
I am your host, mario Lamar.
Our guests on today's show.
(00:36):
They bring over 40 years ofexperience in high-level
government roles to now changingthe way people invest into real
estate.
They focus on buyingmultifamily properties and
developing sustainable projects,with the goal of helping others
build wealth and make apositive impact through easy,
hassle-free investmentsopportunities.
Welcome, Melissa and Michelle.
Speaker 1 (00:57):
Thank you so much.
Speaker 2 (01:00):
Welcome to the show today.
The concept of the podcast isreal simple.
I ask five questions, eitherabout real estate or business,
and we get straight to the pointyou ready.
Speaker 3 (01:09):
Great, all right there.
Speaker 2 (01:11):
Okay, first questions I have for you.
As mentioned, you both startedyour real estate journey in
November 2020, but you hadgovernment jobs or you still do
but you transitioned to realestate investing.
What was the tipping point thatled you to pivot into this
(01:31):
industry and, maybe, what is thebiggest challenge you faced
when you began?
Speaker 3 (01:39):
Okay, so I can take on this one.
So in late 2020, like manypeople, we found ourselves
re-evaluating what matters most,especially when we were
spending our time and planningfor our future.
So we have stable careers inthe federal government, but we
weren't building the kind offinancial freedom we were
(02:02):
looking for, and so the tippingpoint for us was when we
realized relying solely onearned income wouldn't really
give us the future that wereally wanted or envisioned so,
or even even the impact wewanted to create.
So so that realized we weneeded to take some action, and
(02:22):
the biggest challenge for for us, and especially for me, is
analysis paralysis.
You think you always need allthe information before getting
started.
At the end of the day, you justneed to take action and involve
yourself.
Would you add anything to this?
Speaker 1 (02:37):
Yeah, no, I think part of our story as well is
that we started with passiveinvesting only.
As well is that we started withpassive investing only and and
and.
During that time we got.
We felt like we got our toesdipped into the industry and
just fell in love with it really.
(02:58):
And one more so, michelle, my,my love for it, you know, slowly
came a little later, when I wasable to find myself in our
business a little bit more,which I think is a pretty
typical situation when there's acouple in the industry One's
100%, in the other one'ssupportive but doesn't have the
same level of passion.
But then I was able to findthat mainly through different,
various forms of mentoring andthen, while we had our toes
(03:21):
dipped in there because we werepassive investors, we took that
opportunity to really learneverything we could so that we
could transition from passiveinvestors to now active
investors.
Speaker 2 (03:33):
You know, what I like is you said it right is, even
though you had good jobs at thegovernment you still do but you
were not satisfied with thewealth you were trying to build,
you know, for the future.
And a lot of people get in thattrap where they think, okay,
I'll pick up some overtime andthen you know, make a little bit
(03:54):
more money, but really you'remaking peanuts.
This is not what, what's goingto leave a legacy or the type of
you know money that you canbuild or wealth that you can
build to, to get the free timeof freedom of time, or or really
what you want to do.
And through real estate, that'swhere you guys shifted to build
(04:16):
your wealth.
Speaker 1 (04:17):
You know Warren Buffett says the best right If
you don't find a way to makemoney while you're sleeping,
you're going to be working untilyou die.
And you know we were justtalking a little bit earlier
before jumping on this podcast.
You know I'm quite literallyjust coming home from a family
funeral and you know, working anine to five job even if working
from a home, you know, doesn'tgive you that freedom to pick up
(04:39):
and go quite as much as if youhave this going for yourself
full time.
So it's money.
It's, you know, money freedom,but time freedom, and it's an
important value for us as well.
Speaker 2 (04:50):
That leads us to our second question.
And you created MagneticVentures, which is your real
estate company, and it's focusedon multifamily real estate.
What's the appeal ofmultifamily investments over
maybe other types, and how doyou identify the best
opportunities?
Speaker 1 (05:12):
Yeah, for us we just felt that the risks were more
mitigated through multifamily.
You know scalability, stability, cash flow potential If you
have, you know units, you knowduplex, single family homes,
duplexes, triflexes, you knowyou, you only have a couple
people contributing to thatmortgage.
(05:33):
But if you go larger, scale,multi-family, you know you have
so many people contributing tothe the mortgage that when
someone moves out it's really anon-event.
So for us we felt thatrisk-wise, it was the best
strategy, the benefits of theeconomy of scale.
And for us, we also like theidea of looking for value-add
(05:57):
projects so that we can bringsome value to an underperforming
building.
And then, of course, you know,bring that up and then refinance
and pull out the money andrepay back our lenders.
And so we feel that that, youknow, is one of the ways to
mitigate the risks is by beingable to really focus on those
(06:21):
opportunities where you'rebringing something to the table.
Speaker 3 (06:30):
Focus on those opportunities where you're
bringing something to the tableand then it doesn't make the
numbers so tight and you're notso concerned about how you're
going to repay back your lendersat that magical year five.
Yeah, also, I'll add that.
So we have a duplex in St John,new Brunswick and, yeah, when
someone moves out, you're like,ok, so someone needs to cover
that mortgage.
You're like, okay, so someoneneeds to cover that mortgage.
Yes, it does, um, but there'sthat and there's also um, at one
point you run out of money,right.
(06:51):
So now you're looking forcapital partners, but, um, it's
um, it's easier to get amortgage, um, on the commercial
side, commercial mortgage, sofor five units or more.
So I find that at one point noone's going to finance you
anymore.
So now you, you can.
You know, as long as thenumbers work, the uh debt
(07:13):
service ratio, as long as it'suh over 1.2 in most cases, um,
you can get some some prettydecent financing.
Speaker 2 (07:23):
So you have more flexibility.
When you're dealing withmultifamily, either to raise the
rents, create more revenue,reduce expenses you just have to
be creative.
And then easier to finance, andpeople don't realize that,
which is you know.
Once you start dabbling intoreal estate, you quickly realize
(07:46):
that it is easier to getfinancing on bigger assets.
The banks love it.
Speaker 1 (07:55):
All the work that you do for a single dwelling unit,
duplex, triplex is the same workthat you do for 15 unit or 32
unit, right, and the convenienceis that it's all under one roof
.
So, you're not having to runaround town, you know, because
you have 15 single houses.
If you have, you know, 15 doorsunder one roof, you know that
(08:16):
helps you manage your portfolioa lot easier as well, so we find
that it's an advantage at thatpoint as well as our mentor
would say, say that's a lot ofleaks, a lot of leaks, a lot of
leaks.
Speaker 3 (08:29):
So uh, so yeah, so we , uh, we truly believe and uh,
we, uh, we have seen this reallife, we've realized it through
our own experience.
Speaker 1 (08:38):
So yeah, so yeah, it's uh, just a better way, I
think, to go forward I mean, welove our duplex and it was our
first investment, you know, andit was a nice way to get our
toes dipped in there a littlebit, as I said, with passive
investing.
But once you do that and youbuild your confidence, you
quickly realize that it's thesame formula.
(08:59):
You just add a bigger scale.
Speaker 2 (09:01):
Yeah, absolutely Brings us to our third question.
At a bigger scale.
Yeah, absolutely Brings us toour third question.
You focus on offering tailoredinvestment solutions that allows
people to invest withoutdealing with either the toilets
or the tenants.
Can you elaborate on how youmake this possible for your
investors?
Speaker 3 (09:23):
Yeah, so many of our investors are busy professionals
, so they're busy professionalsor families who want the benefit
of real estate without thoseheadaches, the day-to-day
management or dealing withtoilets, our projects as class
of investment opportunities sothat they're truly hands-off.
(09:47):
For others, so, as generalpartners, we're doing all the
heavy lifting sourcing deals,securing financing, managing the
(10:07):
renovations and overseeingproperty management, or hiring
out for property management.
So our investors come in aslimited partners and so they can
contribute the capital andreceive a share of the returns,
and so they do that while wemanage the asset.
And so, yeah, so, and we keepcommunication with the, with our
limited partners, and give themregular updates, performance
reporting and quarterlydistributions and all that good
(10:31):
stuff.
So it's a partnership built ontrust and with aligned interest.
We try to partner with thosethat we share our values with.
Speaker 1 (10:45):
It's really a reflection of our company name
Magnetic Ventures.
Right, we want to attract theright projects.
We want to attract the rightpartners, whether that's the
active or the passive side.
We just want to attract theright mentors and just the
general team around us whereit's really in the core of how
we set up our projects and andwhat we're, who we decide to go
(11:10):
in business with, includinginvestors.
Trust is a huge one.
Speaker 3 (11:13):
So you know when you're dealing with money,
there's a lot going on there, uh, it's.
You know, in relationships, someof the the the barriers are
communication and, uh, financeyeah so and and then you're
getting in, uh, in a deal withpeople who you know you're not
(11:33):
dating or anything right, so sothey are completely different
couples.
So, essentially, at the end ofthe day, you're kind of dating
each other or like coming to amarriage, because you know these
deals are like for likesometimes five years or more, so
so it's really important tofind the right partners and yeah
(11:54):
, most deals last longer thanmost marriages.
Speaker 1 (11:56):
Yeah, and this is what we were working with.
Speaker 2 (11:59):
This is interesting what you're saying, because you
know you don't want to acceptthe first dollar that comes on
the table.
You really want to take yourtime and the investors that
you're getting involved with, asyou said, could last for many
years and it's important thatyour goals align to be
(12:20):
successful.
And then let's say it's forfive years.
Well, this is not transactional.
I mean, I'm into real estatetoo and we know we want to keep
working with the same investorsbecause once we have a track
record with them, well guesswhat?
They'll reinvest on your nextdeal.
So, really taking your time tochoose your partners on both
(12:41):
sides, I should say, is key tosuccess.
Both sides, I should say, iskey to success.
Well, if you're ready, we'regoing to go to question number
four and your mantra is buildwealth and pay it forward.
How does this philosophy shapethe way you approach both your
(13:05):
investments and yourrelationships with clients and
partners?
I think we touched a little biton it, but let's dig a little
deeper both your investments andyour relationships with clients
and partners.
Speaker 1 (13:13):
I think we touched a little bit on it, but let's dig
a little deeper.
Well, deeper, yeah, absolutelyso.
You know, Build Wealth, Pay itFor.
It's not just our slogan, it'sour North Star, it really it's
part of our why.
It's, like I mentioned earlier,it drives who we partner with
and what projects we take on.
We really believe that realestate is a powerful vehicle for
creating freedom for ourselvesand for others, and we take that
(13:33):
seriously, including paying itforward and educating our
partners so that they know therisks, they understand the
benefits.
We don't just highlight thebenefits, we talk about the
risks and various exitstrategies.
We give them a little bit ofinvestor 101.
For those who are newer, wetake the time to educate them so
(13:56):
that they have a really solidunderstanding and that they feel
not only excited for thereturns but they feel excited
for being educated about thisand to hopefully, you know, gain
a little bit more confidence inwhat they're doing.
Another thing is, you know welike to pay for not only an
(14:18):
education but our community.
You know, Michelle and I are ina position that we don't want to
just be taking from thecommunity, as in raising capital
and, you know, looking fortransactional deals, but rather
giving back to the community andeducation, whether that be
joining podcasts like yourself,like this podcast, rather
(14:51):
setting up on stage and givingtalks at different conferences,
going into, you know, smallerlike masterclasses, or, you know
, any opportunity that we can doto really just find a topic
that we think that we haveexpertise in and again give back
to the community, so that we'renot in a position of just
taking I think as well you knowwe'd like to give back to the
community.
I think as well you know we'dlike to give back to the
community.
So identify some of thoseorganizations that are really
meaningful for us and with anadditional stream of income,
(15:12):
we're able to give more as well.
So find those organizationsthat really speak to us, you
know, individually, but then, ofcourse, within the community of
real estate themselves, andjust keep giving back.
I mean, I come from abackground of social work and so
helping others is one of mypassions and one of my strongest
(15:34):
attributes, and so we just makesure that we weave that into
our business as well.
Speaker 2 (15:40):
That's great and I like the fact that, going back
to the partnerships, the peopleyou decide to get involved with
you educate them if they're new,if they're not used to it, on
what they can expect.
So the cards are on the table,it's clear for everybody and you
know you can go on a moresecure relationship.
(16:04):
Sure, things will happen, butthat comes with communication
afterwards.
But as long as people are fromthe beginning on the same page,
it puts all the chances on yourside to be successful for both
sides.
Speaker 3 (16:18):
Yeah, both sides too, and you're having those
difficult conversations at thebeginning, right, and so they're
coming in informed and so it'salways good.
So, and exit strategies are soimportant when you're getting
into a deal, because, hey, ifyou're going to go belly up,
know your exit strategy, knowwhat you're going to do to get
(16:38):
their money back and how hardyou're going to work.
It's so important.
So that's how you can rinse andrepeat.
But you need to, you need toreally work hard and take them
their money Like it was, likelike it's yours or your parents.
You know what I mean.
Speaker 2 (16:58):
Other people's hard, hard earned money 100%.
Speaker 3 (17:01):
yes, it can make or break them.
You don't want to break them.
Speaker 2 (17:04):
Yeah Well, here we are at our final question for
today.
Question number five lookingback at your real estate journey
, what's one piece of adviceyou'd give someone considering
maybe a shift, like you did,into real estate investing in
today's market?
Speaker 3 (17:31):
market.
Well, I would say, there's notime like today.
Um, so we wish we would havemaybe started earlier, but uh,
you know we started when we did.
And um, uh, so don't wait andtake action.
Um, that's what I would say.
Um, there's a lot of noise outthere.
Don't concentrate on that.
Essentially, there's a marketfor every um, for every uh
situation.
Speaker 1 (17:49):
Yeah, um and so and I think part of that too is, um,
you know, educate yourself, sospend a little bit money, invest
on in yourself and youreducation before diving in there
.
Uh, one way that we did it iswe started with, you know, an
education program, um, and westarted passively, as I
mentioned earlier, and then sothat at least we're in the
(18:11):
market, and then we slowed downa little bit and learned the
active side, and so that gave usa little bit of confidence to
boost from one end to another.
And, you know, don't do italone.
Yeah, um, oh yeah, real estateis all about community and
supporting one another, findingpeople who have your strengths
(18:32):
or their weaknesses and viceversa.
And I think there's a lot ofgreat solutions to different
challenges that buildings mighthave.
And so when you're able tobuild a team and everyone brings
in a different quality, youknow it's, it's quite, it's a
(18:52):
lot easier to find the rightsolutions to those buildings,
because most times when peopleare selling, there's there's a
you know a problem, or you knowthere's a, or there's a death,
(19:20):
or a partner, or multiplepartners, allows multiple eyes
and multiple strategies to cometo the table when it's necessary
to to kind of brainstorm andfind those creative solutions
for it.
So, you know, build thatcommunity.
Go to events, networking events,go to education weekends or you
know little seminars here andthere, and start talking with
(19:43):
people and see what they'redoing, follow them on Facebook
or Instagram or LinkedIn and,you know, start having those
conversations behind the scenesif you're not really going into
going in person, you knowmeetings or events and create
that.
You know, start creating alittle mini community and you'll
see everybody wants everybodyto succeed.
(20:05):
You know there's a lot ofabundance in terms of
opportunities.
So share, share ideas,collaborate and team up because
you know, even if you'remultiple people in one deal,
you'll probably be able to domore projects with partners and
get a piece of the pie.
Then try to go at it alone andtry to get, you know, a hundred
(20:27):
percent of of one pie.
You know you've really beatyour eight.
We're able to create multiplestreams that way and I think
it's a lot more fun to to do itwith somebody else and to, you
know, build that relationship.
Speaker 2 (20:42):
Yeah, and to you know , build that relationship.
Here's the two things.
The two top mistakes I thinkmost people do if they're new
and I agree with you is they tryto do it alone and they try to
save money by not buyingeducation Because, oh, I'll
learn, you know, I'll start slowand learn on my own.
I'll learn, you know, I'llstart slow and learn on my own.
(21:03):
You know, if education is goingto cost you $10,000 or $20,000
to participate in a communityand learn from people that have
done it longer than you, it'stotally worth it.
Because in real estate, amistake is not $100.
A mistake is tens of thousands,even maybe, in some case,
$100,000.
Speaker 3 (21:21):
You're going to pay one way or another.
Speaker 1 (21:23):
That's the thing.
You're going to pay one way oranother.
And you can pay up front and beeducated and have mentorship
and have that investment inyourself, or you can learn the
lessons as you go.
But I'm telling you it's goingto cost you over the years,
versus just putting the money upfront for that education.
It's that investment inyourself.
If you're going to invest inbuildings and in partnerships,
(21:46):
invest in yourself first.
It'll just give you theconfidence you need and it'll
give you access to so much more.
You'll be able to go biggerlikely with the right education,
the right mentorship.
Speaker 3 (22:01):
Yeah, and you're not learning piecemeal, right,
You're not learning one thingand doing one thing.
No, now you know like 10different things and how you can
actually add them in together,and this one opportunity that
you thought was great now can beeven more amazing because
you've used all those strategies.
Speaker 2 (22:23):
Michelle, Melissa, it was a great conversation we had
together today.
I hope every listener will takea piece of your advice on their
journey and, once again, thankyou for being on the 5 Questions
podcast sharing your knowledge.
Speaker 1 (22:37):
It was an absolute pleasure, mario.
Thank you so much for includingus and inviting us, and you
know we look forward tolistening to your upcoming
episodes as well.
Speaker 3 (22:47):
Yes, it's awesome to see you shine and grow and
you're just you know you're oneof the greats.
So yeah, absolutely.
Speaker 2 (22:57):
Okay, so I'm blushing now.
We'll stop there.
We'll talk soon, Thank you.
Okay, thank you.
Thank you Bye.
Thanks for tuning in to the 5Questions Podcast.
If you enjoyed today's episode,don't forget to subscribe, like
and hit the notification bellon our YouTube channel so you
never miss an episode.
Stay tuned for more insightsand tips to transform your real
(23:19):
estate and business game.
See you next time.
You know, Warren Buffett says it best right, If
you don't find a way to makemoney while you're sleeping,
you're going to be working untilyou die.
Speaker 2 (00:09):
Welcome to the 5 Questions Podcast, where we
unlock real estate and businessinsights one question at a time.
Welcome to the 5 QuestionsPodcast.
I am your host, mario Lamar.
Our guests on today's show.
(00:36):
They bring over 40 years ofexperience in high-level
government roles to now changingthe way people invest into real
estate.
They focus on buyingmultifamily properties and
developing sustainable projects,with the goal of helping others
build wealth and make apositive impact through easy,
hassle-free investmentsopportunities.
Welcome, Melissa and Michelle.
Speaker 1 (00:57):
Thank you so much.
Speaker 2 (01:00):
Welcome to the show today.
The concept of the podcast isreal simple.
I ask five questions, eitherabout real estate or business,
and we get straight to the pointyou ready.
Speaker 3 (01:09):
Great, all right there.
Speaker 2 (01:11):
Okay, first questions I have for you.
As mentioned, you both startedyour real estate journey in
November 2020, but you hadgovernment jobs or you still do
but you transitioned to realestate investing.
What was the tipping point thatled you to pivot into this
(01:31):
industry and, maybe, what is thebiggest challenge you faced
when you began?
Speaker 3 (01:39):
Okay, so I can take on this one.
So in late 2020, like manypeople, we found ourselves
re-evaluating what matters most,especially when we were
spending our time and planningfor our future.
So we have stable careers inthe federal government, but we
weren't building the kind offinancial freedom we were
(02:02):
looking for, and so the tippingpoint for us was when we
realized relying solely onearned income wouldn't really
give us the future that wereally wanted or envisioned so,
or even even the impact wewanted to create.
So so that realized we weneeded to take some action, and
(02:22):
the biggest challenge for for us, and especially for me, is
analysis paralysis.
You think you always need allthe information before getting
started.
At the end of the day, you justneed to take action and involve
yourself.
Would you add anything to this?
Speaker 1 (02:37):
Yeah, no, I think part of our story as well is
that we started with passiveinvesting only.
As well is that we started withpassive investing only and and
and.
During that time we got.
We felt like we got our toesdipped into the industry and
just fell in love with it really.
(02:58):
And one more so, michelle, my,my love for it, you know, slowly
came a little later, when I wasable to find myself in our
business a little bit more,which I think is a pretty
typical situation when there's acouple in the industry One's
100%, in the other one'ssupportive but doesn't have the
same level of passion.
But then I was able to findthat mainly through different,
various forms of mentoring andthen, while we had our toes
(03:21):
dipped in there because we werepassive investors, we took that
opportunity to really learneverything we could so that we
could transition from passiveinvestors to now active
investors.
Speaker 2 (03:33):
You know, what I like is you said it right is, even
though you had good jobs at thegovernment you still do but you
were not satisfied with thewealth you were trying to build,
you know, for the future.
And a lot of people get in thattrap where they think, okay,
I'll pick up some overtime andthen you know, make a little bit
(03:54):
more money, but really you'remaking peanuts.
This is not what, what's goingto leave a legacy or the type of
you know money that you canbuild or wealth that you can
build to, to get the free timeof freedom of time, or or really
what you want to do.
And through real estate, that'swhere you guys shifted to build
(04:16):
your wealth.
Speaker 1 (04:17):
You know Warren Buffett says the best right If
you don't find a way to makemoney while you're sleeping,
you're going to be working untilyou die.
And you know we were justtalking a little bit earlier
before jumping on this podcast.
You know I'm quite literallyjust coming home from a family
funeral and you know, working anine to five job even if working
from a home, you know, doesn'tgive you that freedom to pick up
(04:39):
and go quite as much as if youhave this going for yourself
full time.
So it's money.
It's, you know, money freedom,but time freedom, and it's an
important value for us as well.
Speaker 2 (04:50):
That leads us to our second question.
And you created MagneticVentures, which is your real
estate company, and it's focusedon multifamily real estate.
What's the appeal ofmultifamily investments over
maybe other types, and how doyou identify the best
opportunities?
Speaker 1 (05:12):
Yeah, for us we just felt that the risks were more
mitigated through multifamily.
You know scalability, stability, cash flow potential If you
have, you know units, you knowduplex, single family homes,
duplexes, triflexes, you knowyou, you only have a couple
people contributing to thatmortgage.
(05:33):
But if you go larger, scale,multi-family, you know you have
so many people contributing tothe the mortgage that when
someone moves out it's really anon-event.
So for us we felt thatrisk-wise, it was the best
strategy, the benefits of theeconomy of scale.
And for us, we also like theidea of looking for value-add
(05:57):
projects so that we can bringsome value to an underperforming
building.
And then, of course, you know,bring that up and then refinance
and pull out the money andrepay back our lenders.
And so we feel that that, youknow, is one of the ways to
mitigate the risks is by beingable to really focus on those
(06:21):
opportunities where you'rebringing something to the table.
Speaker 3 (06:30):
Focus on those opportunities where you're
bringing something to the tableand then it doesn't make the
numbers so tight and you're notso concerned about how you're
going to repay back your lendersat that magical year five.
Yeah, also, I'll add that.
So we have a duplex in St John,new Brunswick and, yeah, when
someone moves out, you're like,ok, so someone needs to cover
that mortgage.
You're like, okay, so someoneneeds to cover that mortgage.
Yes, it does, um, but there'sthat and there's also um, at one
point you run out of money,right.
(06:51):
So now you're looking forcapital partners, but, um, it's
um, it's easier to get amortgage, um, on the commercial
side, commercial mortgage, sofor five units or more.
So I find that at one point noone's going to finance you
anymore.
So now you, you can.
You know, as long as thenumbers work, the uh debt
(07:13):
service ratio, as long as it'suh over 1.2 in most cases, um,
you can get some some prettydecent financing.
Speaker 2 (07:23):
So you have more flexibility.
When you're dealing withmultifamily, either to raise the
rents, create more revenue,reduce expenses you just have to
be creative.
And then easier to finance, andpeople don't realize that,
which is you know.
Once you start dabbling intoreal estate, you quickly realize
(07:46):
that it is easier to getfinancing on bigger assets.
The banks love it.
Speaker 1 (07:55):
All the work that you do for a single dwelling unit,
duplex, triplex is the same workthat you do for 15 unit or 32
unit, right, and the convenienceis that it's all under one roof
.
So, you're not having to runaround town, you know, because
you have 15 single houses.
If you have, you know, 15 doorsunder one roof, you know that
(08:16):
helps you manage your portfolioa lot easier as well, so we find
that it's an advantage at thatpoint as well as our mentor
would say, say that's a lot ofleaks, a lot of leaks, a lot of
leaks.
Speaker 3 (08:29):
So uh, so yeah, so we , uh, we truly believe and uh,
we, uh, we have seen this reallife, we've realized it through
our own experience.
Speaker 1 (08:38):
So yeah, so yeah, it's uh, just a better way, I
think, to go forward I mean, welove our duplex and it was our
first investment, you know, andit was a nice way to get our
toes dipped in there a littlebit, as I said, with passive
investing.
But once you do that and youbuild your confidence, you
quickly realize that it's thesame formula.
(08:59):
You just add a bigger scale.
Speaker 2 (09:01):
Yeah, absolutely Brings us to our third question.
At a bigger scale.
Yeah, absolutely Brings us toour third question.
You focus on offering tailoredinvestment solutions that allows
people to invest withoutdealing with either the toilets
or the tenants.
Can you elaborate on how youmake this possible for your
investors?
Speaker 3 (09:23):
Yeah, so many of our investors are busy professionals
, so they're busy professionalsor families who want the benefit
of real estate without thoseheadaches, the day-to-day
management or dealing withtoilets, our projects as class
of investment opportunities sothat they're truly hands-off.
(09:47):
For others, so, as generalpartners, we're doing all the
heavy lifting sourcing deals,securing financing, managing the
(10:07):
renovations and overseeingproperty management, or hiring
out for property management.
So our investors come in aslimited partners and so they can
contribute the capital andreceive a share of the returns,
and so they do that while wemanage the asset.
And so, yeah, so, and we keepcommunication with the, with our
limited partners, and give themregular updates, performance
reporting and quarterlydistributions and all that good
(10:31):
stuff.
So it's a partnership built ontrust and with aligned interest.
We try to partner with thosethat we share our values with.
Speaker 1 (10:45):
It's really a reflection of our company name
Magnetic Ventures.
Right, we want to attract theright projects.
We want to attract the rightpartners, whether that's the
active or the passive side.
We just want to attract theright mentors and just the
general team around us whereit's really in the core of how
we set up our projects and andwhat we're, who we decide to go
(11:10):
in business with, includinginvestors.
Trust is a huge one.
Speaker 3 (11:13):
So you know when you're dealing with money,
there's a lot going on there, uh, it's.
You know, in relationships, someof the the the barriers are
communication and, uh, financeyeah so and and then you're
getting in, uh, in a deal withpeople who you know you're not
(11:33):
dating or anything right, so sothey are completely different
couples.
So, essentially, at the end ofthe day, you're kind of dating
each other or like coming to amarriage, because you know these
deals are like for likesometimes five years or more, so
so it's really important tofind the right partners and yeah
(11:54):
, most deals last longer thanmost marriages.
Speaker 1 (11:56):
Yeah, and this is what we were working with.
Speaker 2 (11:59):
This is interesting what you're saying, because you
know you don't want to acceptthe first dollar that comes on
the table.
You really want to take yourtime and the investors that
you're getting involved with, asyou said, could last for many
years and it's important thatyour goals align to be
(12:20):
successful.
And then let's say it's forfive years.
Well, this is not transactional.
I mean, I'm into real estatetoo and we know we want to keep
working with the same investorsbecause once we have a track
record with them, well guesswhat?
They'll reinvest on your nextdeal.
So, really taking your time tochoose your partners on both
(12:41):
sides, I should say, is key tosuccess.
Both sides, I should say, iskey to success.
Well, if you're ready, we'regoing to go to question number
four and your mantra is buildwealth and pay it forward.
How does this philosophy shapethe way you approach both your
(13:05):
investments and yourrelationships with clients and
partners?
I think we touched a little biton it, but let's dig a little
deeper both your investments andyour relationships with clients
and partners.
Speaker 1 (13:13):
I think we touched a little bit on it, but let's dig
a little deeper.
Well, deeper, yeah, absolutelyso.
You know, Build Wealth, Pay itFor.
It's not just our slogan, it'sour North Star, it really it's
part of our why.
It's, like I mentioned earlier,it drives who we partner with
and what projects we take on.
We really believe that realestate is a powerful vehicle for
creating freedom for ourselvesand for others, and we take that
(13:33):
seriously, including paying itforward and educating our
partners so that they know therisks, they understand the
benefits.
We don't just highlight thebenefits, we talk about the
risks and various exitstrategies.
We give them a little bit ofinvestor 101.
For those who are newer, wetake the time to educate them so
(13:56):
that they have a really solidunderstanding and that they feel
not only excited for thereturns but they feel excited
for being educated about thisand to hopefully, you know, gain
a little bit more confidence inwhat they're doing.
Another thing is, you know welike to pay for not only an
(14:18):
education but our community.
You know, Michelle and I are ina position that we don't want to
just be taking from thecommunity, as in raising capital
and, you know, looking fortransactional deals, but rather
giving back to the community andeducation, whether that be
joining podcasts like yourself,like this podcast, rather
(14:51):
setting up on stage and givingtalks at different conferences,
going into, you know, smallerlike masterclasses, or, you know
, any opportunity that we can doto really just find a topic
that we think that we haveexpertise in and again give back
to the community, so that we'renot in a position of just
taking I think as well you knowwe'd like to give back to the
community.
I think as well you know we'dlike to give back to the
community.
So identify some of thoseorganizations that are really
meaningful for us and with anadditional stream of income,
(15:12):
we're able to give more as well.
So find those organizationsthat really speak to us, you
know, individually, but then, ofcourse, within the community of
real estate themselves, andjust keep giving back.
I mean, I come from abackground of social work and so
helping others is one of mypassions and one of my strongest
(15:34):
attributes, and so we just makesure that we weave that into
our business as well.
Speaker 2 (15:40):
That's great and I like the fact that, going back
to the partnerships, the peopleyou decide to get involved with
you educate them if they're new,if they're not used to it, on
what they can expect.
So the cards are on the table,it's clear for everybody and you
know you can go on a moresecure relationship.
(16:04):
Sure, things will happen, butthat comes with communication
afterwards.
But as long as people are fromthe beginning on the same page,
it puts all the chances on yourside to be successful for both
sides.
Speaker 3 (16:18):
Yeah, both sides too, and you're having those
difficult conversations at thebeginning, right, and so they're
coming in informed and so it'salways good.
So, and exit strategies are soimportant when you're getting
into a deal, because, hey, ifyou're going to go belly up,
know your exit strategy, knowwhat you're going to do to get
(16:38):
their money back and how hardyou're going to work.
It's so important.
So that's how you can rinse andrepeat.
But you need to, you need toreally work hard and take them
their money Like it was, likelike it's yours or your parents.
You know what I mean.
Speaker 2 (16:58):
Other people's hard, hard earned money 100%.
Speaker 3 (17:01):
yes, it can make or break them.
You don't want to break them.
Speaker 2 (17:04):
Yeah Well, here we are at our final question for
today.
Question number five lookingback at your real estate journey
, what's one piece of adviceyou'd give someone considering
maybe a shift, like you did,into real estate investing in
today's market?
Speaker 3 (17:31):
market.
Well, I would say, there's notime like today.
Um, so we wish we would havemaybe started earlier, but uh,
you know we started when we did.
And um, uh, so don't wait andtake action.
Um, that's what I would say.
Um, there's a lot of noise outthere.
Don't concentrate on that.
Essentially, there's a marketfor every um, for every uh
situation.
Speaker 1 (17:49):
Yeah, um and so and I think part of that too is, um,
you know, educate yourself, sospend a little bit money, invest
on in yourself and youreducation before diving in there
.
Uh, one way that we did it iswe started with, you know, an
education program, um, and westarted passively, as I
mentioned earlier, and then sothat at least we're in the
(18:11):
market, and then we slowed downa little bit and learned the
active side, and so that gave usa little bit of confidence to
boost from one end to another.
And, you know, don't do italone.
Yeah, um, oh yeah, real estateis all about community and
supporting one another, findingpeople who have your strengths
(18:32):
or their weaknesses and viceversa.
And I think there's a lot ofgreat solutions to different
challenges that buildings mighthave.
And so when you're able tobuild a team and everyone brings
in a different quality, youknow it's, it's quite, it's a
(18:52):
lot easier to find the rightsolutions to those buildings,
because most times when peopleare selling, there's there's a
you know a problem, or you knowthere's a, or there's a death,
(19:20):
or a partner, or multiplepartners, allows multiple eyes
and multiple strategies to cometo the table when it's necessary
to to kind of brainstorm andfind those creative solutions
for it.
So, you know, build thatcommunity.
Go to events, networking events,go to education weekends or you
know little seminars here andthere, and start talking with
(19:43):
people and see what they'redoing, follow them on Facebook
or Instagram or LinkedIn and,you know, start having those
conversations behind the scenesif you're not really going into
going in person, you knowmeetings or events and create
that.
You know, start creating alittle mini community and you'll
see everybody wants everybodyto succeed.
(20:05):
You know there's a lot ofabundance in terms of
opportunities.
So share, share ideas,collaborate and team up because
you know, even if you'remultiple people in one deal,
you'll probably be able to domore projects with partners and
get a piece of the pie.
Then try to go at it alone andtry to get, you know, a hundred
(20:27):
percent of of one pie.
You know you've really beatyour eight.
We're able to create multiplestreams that way and I think
it's a lot more fun to to do itwith somebody else and to, you
know, build that relationship.
Speaker 2 (20:42):
Yeah, and to you know , build that relationship.
Here's the two things.
The two top mistakes I thinkmost people do if they're new
and I agree with you is they tryto do it alone and they try to
save money by not buyingeducation Because, oh, I'll
learn, you know, I'll start slowand learn on my own.
I'll learn, you know, I'llstart slow and learn on my own.
(21:03):
You know, if education is goingto cost you $10,000 or $20,000
to participate in a communityand learn from people that have
done it longer than you, it'stotally worth it.
Because in real estate, amistake is not $100.
A mistake is tens of thousands,even maybe, in some case,
$100,000.
Speaker 3 (21:21):
You're going to pay one way or another.
Speaker 1 (21:23):
That's the thing.
You're going to pay one way oranother.
And you can pay up front and beeducated and have mentorship
and have that investment inyourself, or you can learn the
lessons as you go.
But I'm telling you it's goingto cost you over the years,
versus just putting the money upfront for that education.
It's that investment inyourself.
If you're going to invest inbuildings and in partnerships,
(21:46):
invest in yourself first.
It'll just give you theconfidence you need and it'll
give you access to so much more.
You'll be able to go biggerlikely with the right education,
the right mentorship.
Speaker 3 (22:01):
Yeah, and you're not learning piecemeal, right,
You're not learning one thingand doing one thing.
No, now you know like 10different things and how you can
actually add them in together,and this one opportunity that
you thought was great now can beeven more amazing because
you've used all those strategies.
Speaker 2 (22:23):
Michelle, Melissa, it was a great conversation we had
together today.
I hope every listener will takea piece of your advice on their
journey and, once again, thankyou for being on the 5 Questions
podcast sharing your knowledge.
Speaker 1 (22:37):
It was an absolute pleasure, mario.
Thank you so much for includingus and inviting us, and you
know we look forward tolistening to your upcoming
episodes as well.
Speaker 3 (22:47):
Yes, it's awesome to see you shine and grow and
you're just you know you're oneof the greats.
So yeah, absolutely.
Speaker 2 (22:57):
Okay, so I'm blushing now.
We'll stop there.
We'll talk soon, Thank you.
Okay, thank you.
Thank you Bye.
Thanks for tuning in to the 5Questions Podcast.
If you enjoyed today's episode,don't forget to subscribe, like
and hit the notification bellon our YouTube channel so you
never miss an episode.
Stay tuned for more insightsand tips to transform your real
(23:19):
estate and business game.
See you next time.
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