Today we have Dalia Barsoum who’s everywhere these days and who can blame her. She’s incredibly popular for her diligence in underwriting and guiding her clients towards quality. Unfortunately, Dalia and Streetwise are picking up the pieces from deals gone sideways brokered by other mortgage brokers. I know that feeling…
Today we chat about where rates are going, what private mortgages (rates and terms) are going sideways. Some tips on how to weather this rising interest rate environment including joint venturing, our favourite Economists to follow, where the challenges are in getting new financing, apartment building financing and much much more.
Cheap debt is what makes the world go around which benefits real estate investor returns so you don’t want to miss this episode. Have a pen and paper ready!
Today, we Kyle Pearce who’s a real estate investor with 22 doors. Kyle's been investing since the last recession being braver than many buying the dip in Florida back in 2011. He’s a Stock Hacker, an online education business side hustler as Kyle’s full time job is as a Mathematics Consultant to Kindergarten to Grade 12 teachers as his local school board. Kyle teachers the Math teachers.
Kyle is passionate about education and lucky for us. It spills into the investments arena, he loves to share his knowledge, is always sharing his research with our community, and I selfishly had some questions for Kyle on how to teach Math and Investing to kids.
Now that I think of it, Kyle’s method of teaching compound interest, the 8th wonder of the world would work on adults too so you want to have your pens and note taking devices ready.
Please enjoy the show!
One of the reasons we started Stock Hacker Academy was we knew real estate was inaccessible to many AND with cash flow so squeezed on real estate, I know many are looking for better yield after their real estate portfolios had gone up so much in value.
At the end of the day, no matter the investor we’re all in search of a return on our time, passive investments that cash flow and Anderson Carter-Griffith has found a side hustle and investment that works for him.
Anderson is an immigrant and a chef who was underemployed thanks to the pandemic. He’s since pivoted to investing in stocks, trading in options, and delivers food via Door Dash, an online food delivery app.
On this show Anderson shares how he makes a couple hundred dollars combined via his side hustles and how he invests in boring stocks for the long term.
Most importantly, thanks to Anderson’s newfound financial education he has done a 180 degree turn having previously prioritised buying luxury cars and accessories and now prefers to invest for the benefit of compounding returns. Something those who unknowingly were spinning their wheels in the rat race can understand.
If you know someone looking to make some extra money to cover rent increases or inflation, Anderson has found himself a solution in side hustles.
During the interview we mention the stock and options brokerage we use. In the show notes I have a referral link that helps to support this show. Interactive brokers: https://ndcdyn.interactivebrokers.com/Universal/Application?employer=SHA8
Quick disclaimer, none of anything discussed should be considered advice but rather Anderson and I are sharing our experiences for educational purposes. Please seek professional advice.
If you can’t tell, Cherry and I prefer to buy than rent. I like hard assets and being in control. I do rent some things like cottages, hotels, cars while on vacation as I want my life to be simple. We used to lease our cars for tax purposes and those are generally depreciating assets.
Other examples of wanting to be in control is of our estate when we pass on from this world. I don’t want our staff nor our kids to have to sell off our businesses or properties hence we invest in insurance to cover the taxes as the good old government will want their pound of flesh.
As we prefer to own over rent, we prefer whole life insurance over term life insurance. If you don’t know why that’s because you’re among the 99% of Canadians. I only learnt of the Infinite Banking Concept strategy a few years ago at my real estate mastermind where I’m the poor person in the room. Several members were already applying the Infinite Banking Concept and we even brought in an outside expert from one of the big banks to educate us on the subject. Unfortunately, the subject is confusing until we met Jayson Lowe, founder of Ascendant Financial, co-Author of “The Bankers’ Secret, a Simple Guide to Creating Personal Wealth for Canadians.” And leading Financial Professional in Canada.
Jayson being an expert in whole life insurance including being a client of all the insurance providers in Canada alone gives him more experience than anyone I know.
At the end of the day, Cherry and I’s policies, because we own them, shows up on our balance sheet with the banks which they love to see hence they’ll lend us more money. We can also borrow against our policies at rates low rates and can pay it back whenever we want. Cheap money, flexibility and control. All things I like hence our plans in 2023 include growing our policies.
To explain it in further detail, I give you Jayson Lowe.
For priority access to Jayson and his team go to: https://www.ascendantfinancial.ca/cherrychan
Our Market update two weeks ago with Coach Tammy DiTomaso was a hit.
FYI to our 17 listeners, the vast majority of real estate investors are investing as a side hustle. The truth about real estate is the folks who successfully make full time careers as investors is a small minority. I remember asking a mortgage broker friend who focuses on investors tell me only 1% reach 10 or more properties. That number has gone up a lot since then but my point is, do what’s right for you. No need to compare yourself to folks with 100’s of doors. The other truth is several investors are in financial distress right now who were over leveraged and had challenges executing their flips or BRRR’s of simply speculated and can no longer afford their investments at the current interest rates.
Boring, cash flowing starter homes is the bread and butter of our team since 2010. Starter homes with renovations to increase cash flow such as basement suite conversion or student rental worked pre pandemic and still works in this declining market hence we have coach Stephen Phillips to talk to the towns east of the GTAin terms of the deals and the numbers behind the properties investors are buying right now in today’s market that make sense.
Coach Steve has extensive experience in real estate having owned and operated a kitchen and countertop business. Their stuff was so nice they caught the attention of HGTV’s Scott McGilvray and his business was part of 20 something episodes on Scott’s shows. Steve grew up in the Durham area, East Greater Toronto Area and now focuses on the areas East in the investor friendly towns from Oshawa and Kingston but primarily the sweet spot of Belleville.
The most common request we receive from new clients is “I want a deal” so as a service to you 17 listeners, we’re here to provide context to what a deal looks like so have your pens, paper, spreadsheets ready as we’ll talk to current opportunities and the analysis behind them.