00:04 Speaker 1 Welcome to the Real estate investing morning show with your hosts, Wayne and Gabby.

00:16 Speaker 2 Good morning, real estate investors.

00:18 Speaker 3 Good morning.

00:19 Speaker 2 Oh boy.

What day is it today?

00:22 Speaker 3 Wednesday, you betcha.

00:23 Speaker 2 I think it's gonna be a good day today.

00:25 Speaker 3 Gonna be a great day today.

00:27 Speaker 2 That's the kind of positive energy we need around here.

No topics really planned air quotes planned for today, but we're going to leave it in the hands of our amazing live community that's here with us this morning on the live show.

We broadcast the show live every weekday morning at 6:00am Mountain time.

And we do that not because we love waking up early, but because we want to.

We want to come here and give you guys the opportunity to bring any questions that you have about real estate investing, put them in the chat, we answer them and then you go and take that information, that clarity and go take action.

That's what we're, that's what we're aiming to do here.

I love nothing more than getting DMS and emails from listeners saying like, I bought my first property.

01:24 Speaker 2 It was all because of you guys.

Like, it's, it feels so good.

It feels so good.

And I want that for this week.

You know what I want?

I want someone to bring a question today and I want them to get the answer that they need from whatever was holding them back so they can go and they can buy a property this week.

I know it's a little short notice.

I know it's Wednesday.

I know it's a little difficult.

There's got to be something, there's got to be something that's preventing you from doing what you need to do.

And you know what, feel free to share it in the comments below as well.

And everybody's making, slowly making their way in.

But put in the comments below, what's preventing you from buying your next rental property right now?

Put in the chat.

02:14 Speaker 2 Maybe there's some way I can help you.

You never know until you ask, right?

02:18 Speaker 3 Absolutely.

02:18 Speaker 2 You never know until you put it out into the, to the universe, man.

Right?

Sometimes you just got to put it out in the universe and just be like, I can't buy a property because I can't get a mortgage.

Well, my follow up question for that would be why can't you get a mortgage?

02:39 Speaker 3 Let's work through it.

02:40 Speaker 2 Let's work through it.

There's got to be some reason.

Maybe there's something we can do.

Maybe you're like, well, because I just bought a big truck and it was really dumb and now I can't get a mortgage.

So well, can you sell the truck?

Well, nobody would want to buy it.

Well, let's check the chat.

Does anybody want to buy their truck?

02:57 Speaker 3 We'll sell it for you.

02:59 Speaker 2 We'll come up with something.

Or maybe there's some.

Some really cool creative strategies that we could work around where the seller might carry the financing for you so you don't have to get a mortgage.

Are we getting somewhere?

See what I mean?

You don't know until you ask.

You don't know until you put it out there.

There's so much creative stuff that we could do.

There's so many different experiences that we've experienced.

Situations, you know, we've been through that.

We've.

You know, we've.

We've learned so much over the years.

We love sharing it with you guys.

We love coming up with solutions.

Right.

Okay.

So that's what we're going to do today.

You guys are going to share what it is that's holding you from moving forward with doing whatever it is that you want to do, whether buying another property or whatever.

03:50 Speaker 2 We're going to help you guys through it.

I did want to point something out as well, Gabby.

While everybody's working through this, I've been quite consistent with YouTube.

04:07 Speaker 3 You have?

04:08 Speaker 2 Yes.

I've been putting out regular videos on YouTube as well.

For those of you guys that haven't noticed, I.

My YouTube channel used to suck.

It really did.

04:26 Speaker 3 Yeah.

It was just another place to put the same stuff that you were already putting out, right?

04:32 Speaker 2 Yeah.

04:33 Speaker 3 And what I love about what you've turned the YouTube channel into is that it is unique content to YouTube.

It's.

You can't find it anywhere else.

04:46 Speaker 2 Yeah, I am doing.

04:47 Speaker 3 That's so cool.

04:48 Speaker 2 Yeah, that's.

That's my goal.

It's a lot of work, guys.

It's a lot of work we're putting into it because, you know, for the last year or so, we've been saying, okay, we need to finally, we need to put this podcast on.

On video, so that way I can post the video on YouTube and I have something to go on YouTube.

But that's.

That's just.

It's just repurposing what we're already doing here.

You know what I mean?

Yeah, it's regurgitating.

It's just in video format, and I didn't want to do that.

I'm like, I want to have its own unique content, but that requires us to film exclusive content specifically for YouTube.

And that's what we're doing now, and we're staying very consistent with it, minimum, once a week, sometimes twice a week.

05:29 Speaker 2 Full length videos you can go and watch and learn if you prefer video.

Additionally, you know, there's.

There's shorts as well, cut into shorter little snippets and stuff.

So if there's something that you want me to cover about real estate investing or you want to see more of on YouTube in video form, let me know.

Put in the chat.

Send us an email@inforeimorningshow.com Let me know what you want to see more of.

We just released a new video yesterday on Edmonton townhouses.

So we talked about the difference between buying a new townhouse versus an old townhouse for a rental property and the benefits, the pros and cons of it for purchasing a property, a rental property, whether it be new or old townhouse in Edmonton.

So super valuable.

Go and check that out.

Go and subscribe to the channel.

06:23 Speaker 2 And again, let me know, is there anything that you guys would like to see more of or anything you want us to cover?

We'll go cover that for you.

Just like this here on the morning show.

You guys bring your questions.

I throw out the same invitation for YouTube video.

It takes a little bit longer to shoot though, so just be patient.

It might be a couple weeks.

But again, I don't want anyone to say the reason why I didn't was because I didn't know how or I didn't have the right information.

That is just absolute bs.

There's no reason for that.

There's.

We are providing free education day in, day out.

Free coaching day in, day out.

Take advantage of it, guys, please.

I want to see all of you guys reaching your dreams, reaching and reaching your goals.

07:12 Speaker 2 I want to see all of you guys building the life that you want to live.

Absolutely no reason not to.

And I want to show you how to do it in a safe and reliable way that won't affect your family's financial stability.

I get really jazzed up about this.

I get really hyped up about this stuff.

I really love this.

Even just like last night.

So we have our weekly coaching sessions on Tuesdays.

Yeah.

With the mentorship program there.

Yeah.

And it is honestly my favorite thing in the world to like answer people's questions or like, you know, whatever it was that was.

Yeah.

Give that.

That clarity.

You know what I mean?

You can call it the like the light bulb, the aha moment.

You could see it in their eyes.

You can see it on their face.

I love it so much.

08:01 Speaker 2 I love someone.

I could see the reaction on their Face that they understand it now and they can get.

They've gotten over that and they can just move forward.

Some pretty crazy stuff, actually, that we covered last night.

It looks like we have a question that came in, which I'm gonna.

Which we're gonna cover that after the break here.

But last night was quite possibly one of the most intense coaching sessions we've had since we started.

08:38 Speaker 3 I say definitely the most.

The most questions submitted by our topics.

08:43 Speaker 2 Topics, topics.

More.

So you want to go through the list of things that we covered last night.

It's absolutely bonkers.

You will not believe what we covered last night in a coaching call.

And by the way, our coaching sessions are not like, you know, you show up to a group because there's lots of group coaching things out there.

There's lots of like, quote unquote masterminds, group coaching, stuff like that.

Our group coaching is not like you show up and Wayne does a presentation on RRSPs or like today we're going to talk about how to have the right mindset to burst through whatever limiting beliefs you have.

No, that's not what we do.

Basically, it is a time.

It is a time slot, by the way, an unlimited time slot.

We stay till whenever everything's done.

09:28 Speaker 2 Specifically for anyone who has anything they need to work through.

Right.

So everybody has their action items in the mentorship program, things they're supposed to be working on to move the needle.

Anything that's preventing you from getting those action items done, you bring that.

We work through it together, one one and as a group as well.

Everybody gets to be a part of it and listen and learn.

But normally we have like two or three things we work through.

It might be like we'll do deal analysis on a deal that someone's bringing.

We might be like, hey, can we go through joint ventures and, you know, making my pitch?

Or it might be like, hey, can we go through social media branding and how do I get my content better?

Or something along those lines.

Right.

Wholesaling.

10:07 Speaker 2 Can we analyze this fix and flip deal?

Right.

Last night was like, it wasn't two or three.

How many was it?

Like seven or eight?

Wait till you hear the topics that we covered all in one call.

10:25 Speaker 3 Yeah.

So went over an eviction, if it's so, providing an eviction notice to a tenant and the wording and process to go through that.

10:35 Speaker 2 So one of our students has bought a property and the tenant was included and it's been going badly.

10:44 Speaker 3 So multiple breaches.

10:46 Speaker 2 Multiple breaches.

And so going through how to submit the paperwork and get it all set up and filing, you know, the eviction notice or giving them the eviction notice, but then also filing it the rs.

Yeah.

So went through that, that should have been one undone that should have been enough right there.

11:06 Speaker 3 Yeah.

We went over a deal analysis on a off market fourplex that had below market rents that would need to be brought up and whether or not to, you know, sit on that until you could do the rent increases.

11:20 Speaker 2 And by the way, you know who you are.

Great deal.

11:23 Speaker 3 Fantastic deal.

11:24 Speaker 2 Fantastic deal.

Pass the cash flow Test, pass the 5% rule.

And it's a perfect burr.

11:32 Speaker 3 Yeah.

11:33 Speaker 2 So that's a really super exciting deal that was really, it was cool to go through.

Now it's a little complicated because like when you do a perfect burr, sometimes it doesn't cash flow afterwards.

So were going through like the technical side of it of like, do you refinance it?

Do you pull all the money out?

Plus I think in this case she could have pulled out all the money plus an additional $110,000 or something like that on top of it and she would have kept the 4 Plex as a long term buy and hold, but it wouldn't have cash flowed afterwards.

So went kind of went through like how much do you take out?

Do you take out everything?

You know what I mean?

Or do you know, we even talked about, do we just take the property, renovate it and sell it?

12:12 Speaker 3 Yeah.

Flip it.

Yeah.

12:14 Speaker 2 And make, I think it was going to be like, I can't remember how much.

Maybe like a hundred to 200,000.

No, it was at least $200,000 profit.

At least.

Anyways, really cool deal went through last night.

12:27 Speaker 3 Yeah.

We also talked about a whole bunch of joint venture stuff.

We talked about how taxes work when you have a joint venture partner.

12:36 Speaker 2 Yeah.

12:37 Speaker 3 As well as joint venture prospect conversions.

12:43 Speaker 2 So like when you've got a, when.

12:44 Speaker 3 You have somebody interested, you know, how do you turn that into an actual joint venture partnership?

12:49 Speaker 2 Right, right.

The sales side of it.

12:51 Speaker 3 Yeah.

12:52 Speaker 2 Which is hard.

12:53 Speaker 3 Yeah.

12:54 Speaker 2 Hard to get someone to go from interested to, you know, to committed is, is very difficult.

But yeah, we kind of just went through like how to go about actually just making the pitch.

13:06 Speaker 3 Yeah.

13:07 Speaker 2 Just, you know, just pulling up your socks, walking up there and say, hey, do you want to do this Y slash N.

Yeah.

13:16 Speaker 3 And that.

It's a numbers game really.

13:18 Speaker 2 Yeah, really Just it's understanding the sales side of joint ventures.

It Was pretty cool.

13:23 Speaker 3 Yeah.

We talked about starting a private lending business.

And you know, what is private lending?

How does it work?

13:30 Speaker 2 How do we go about all of that, evictions and like joint ventures, like straight over to private lending.

And then we even talked about mortgage investment corporations as well.

13:39 Speaker 3 Yep.

Yeah, yeah, we talked about cmhc, MLI select and combining that with different grants that are available.

13:47 Speaker 2 Yes.

13:47 Speaker 3 Yeah, we talked about infinite banking.

13:52 Speaker 2 Yeah, we talked about infinite banking and insurance as well.

Oh my God, there was a lot.

13:56 Speaker 3 Last night we talked about quitting your job to become a full time real estate investor.

14:02 Speaker 2 Yeah.

Yeah.

So Matt, Matt just joined the mentorship program and unfortunately he works nights.

So he's in the chat here and he's like, I cannot wait to listen to this recording.

Matt, the.

When you're done, this podcast, the recording is in the master's vault.

You can go ahead and listen to it.

It's about two and a half hours long and it is full of.

You're going to be blown away by it.

Yeah, what was that last one?

14:25 Speaker 3 Quitting your job to become a full time real estate investor.

14:28 Speaker 2 Yeah, I forgot about that one.

I forgot about that one.

And we kind of went through like, I guess like not the rules of like when it's safe to do it, but I gave some like general guidelines and some considerations.

I also talked about the fact that nobody should quit their job ever.

I don't care how much cash flow you have in your rental portfolio, you should never quit your job unless you have another source of income, another business to support you.

And talked about the mechanics of how do you use your real estate portfolio to get to a point and leverage the existing equity that you have to create a cash flow machine that's more reliable than cash flow from rental income.

15:11 Speaker 2 Because I think we've learned over the last five years between Covid, between the interest rates and inflation and all the things that control interest rates and rents, nothing is guaranteed.

Nothing is guaranteed with rent as far as cash flow goes.

And cash flow should be used as a risk mitigator as a way to secure and create a safe rental portfolio that's secure from or safe from interest rates and dropped rent and stuff like that.

And not to be re.

You can spend your cash flow.

Just don't have it.

Like, don't solely rely on it because it could be gone in a moment.

Right.

So we talked about how to.

15:51 Speaker 2 The mechanics of like, how to actually build it properly so that you can leave your job using your rental portfolio, but building it in a more safe and reliable way that doesn't affect your financial stability for you and your family.

16:03 Speaker 3 Yeah.

We also talked about wholesaling basics.

Yeah, yeah.

Like, more specifically, like the knocking on the door, like, what do you say?

And kind of the difference between what would.

How would that script differ if you were just an inventor investor versus if you are also a realtor.

16:22 Speaker 2 Right.

16:24 Speaker 3 Yeah.

16:25 Speaker 2 And a really cool.

We shared a really cool secondary income stream for wholesalers to make extra money, you know, for basically a way to make a little extra money on the side for all of those deals that didn't really turn out, that turned into nothing.

16:42 Speaker 3 Yeah.

16:43 Speaker 2 And you'd be surprised.

You can make an additional, like you could make 25% more as a wholesaler by doing that.

Really cool strategy.

16:50 Speaker 3 Yeah.

And then lastly we talked about content creation and more specifically the technology that can be used and how to, you know, how to use technology too.

17:03 Speaker 2 Video editing and like, how to do like social media content, the cool apps and tools that are available.

And yeah, just like diving into like, you know, other creative ways of like repurposing your content as well.

Very similar to like what I was talking about earlier.

Just about, you know, taking existing content that you have and regurgitating it on YouTube or on different social media platforms.

But, you know, there's nothing wrong with having a video posting it one piece of one platform and then repurposing it on another piece of another platform as well.

17:35 Speaker 3 Yeah.

So those are the types of questions and topics that our students brought to us last night.

17:44 Speaker 2 Yeah.

17:45 Speaker 3 And maybe it might get you thinking about the types of questions and topics that you can or should or might be curious about that you can ask right here in this show.

You're not going to get the same level of, you know, we don't know your situation.

We don't know, you know, all the things about you and can't go that in depth, but you know, those.

Maybe it gets your creative juices flying.

18:09 Speaker 2 Yeah, absolutely.

Yeah.

It looks like we got one question here and hopefully this might have sparked, you know, some ideas for some other types of questions for you guys.

The show is for you.

The show is.

Is here to.

To as a resource for you for free coaching to get your answers, to get that guidance that you guys can go and take action today.

So we're gonna take a quick little commercial break.

When we come back from the break, we're gonna answer that question and I hope that there will be more questions there as well.

We'll be right back.

18:38 Speaker 1 Looking to own real estate as a source of income, Crystal Crom is who you're looking for.

A highly experienced realtor and property investor specializing in Red Deer in Central Alberta.

From buying, selling to investing, she can help you make the smartest choices with property.

Experienced in owning townhouses to multi family buildings and everything in between.

Contact Krystal Krom today for all your realty needs.

19:06 Speaker 4 The Real estate investor conference, September 6th and 7th here in Edmonton.

19:13 Speaker 2 Galvin.

I'm stoked.

19:15 Speaker 4 I cannot wait, Wayne.

There is going to be so much opportunity happening in this room and I think they're even giving you a mic and doing a live podcast.

19:24 Speaker 2 Yeah, we're doing the live podcast in person.

You can come and see Gabby and myself in our pajamas drinking coffee.

And I'm, I'm.

Like I said, I mean, I'm stoked for it.

It's going to be a blast.

19:35 Speaker 4 And we're serving waffles.

Who doesn't love waffles?

This is the conference you want to come to, where the focus is not sales, the focus is value.

Learn what your next step is in real estate investing.

Rub shoulders with some of the top Canadian real estate investors out there.

This is the opportunity you do not want to miss out.

Get your tickets today at REI conference.

19:57 Speaker 2 See you guys there.

Who's excited to see us in our pajamas?

20:02 Speaker 3 I am not showing up in my pajamas.

20:04 Speaker 2 Yeah, you are.

I got, I ordered onesies.

20:09 Speaker 3 You're gonna be sweating up there.

20:10 Speaker 2 Yeah, it's.

Yeah, yeah, don't come close to the stage.

It's gonna stink.

Yeah, I order onesies.

One says Property Poppy, one says Property Mommy.

20:24 Speaker 3 Chess names.

20:25 Speaker 2 That's that.

Yeah, it is.

That is legit.

Our chest names.

Yeah.

So anyways, Recon is.

Is indeed coming up September 6th and 7th.

I.

That.

That's your opportunity to come and see us in person and also see us speak on stage.

You know, we'll be doing the podcast.

We'll be doing breakout rooms.

We're doing some presentations on Friday.

And what else is there?

There's the, the.

The tank.

The, the.

The.

The.

What do you call it?

20:53 Speaker 3 Deal tank.

20:54 Speaker 2 Is that what it's called?

20:54 Speaker 3 Think tank.

20:55 Speaker 2 Think Deal tank.

Is that what it's called?

20:57 Speaker 3 I don't know.

20:58 Speaker 2 Deal tank.

I think it's like.

Yeah, it's like the Dragon's Den for Recon.

But I'm gonna be a judge in the deal tank.

I think that's what's called Somebody please throw me a lifeline.

It's Gonna be a lot of fun, a lot of great speakers, a lot of great opportunities to network.

That's the most important thing to me is don't go there.

Like, just like, how do I word this so I don't sound like a dink.

Why did you move the mic away from your face?

21:29 Speaker 3 I took a sip of my coffee and I had this like vivid, this vivid image come through my head that you were gonna make me laugh and I was gonna spit it everywhere.

21:40 Speaker 2 Oh, it's so like conferences are great, you know what I mean?

You're gonna, you're gonna see some people speak, you're gonna learn some things maybe you've never learned before.

But to be honest with you, I think it's a tremendous opportunity to get in a room with 500 plus other people who are like minded.

Go and find your tribe, build your community.

Right.

Come and say hi to me.

I'll introduce you to some of our students in our community so you can get to know them, put some faces to some names and really just like I, I love building your tribe, I love building your community because if you can surround yourself with other people that are as ambitious as you are, it's gonna, they're gonna help push you.

You know what I mean?

22:17 Speaker 2 Just imagine having like some really super ambitious people around you that are constantly holding you accountable and pushing you to do the things that you say that you're gonna do.

I think it's incredibly powerful.

22:27 Speaker 3 Absolutely.

22:28 Speaker 2 So don't sit around at the table just waiting for the next speaker for them to talk about whatever.

Like I think that you should get up and start going around and meeting people and if you don't know anyone, come find me.

Say hi.

I know we'd never met, Wayne, but I listen to your show every day and I know you and I will introduce you to people.

Right?

22:47 Speaker 3 Yeah.

22:49 Speaker 2 I'll make sure you find some really cool folks.

And, and you know, I want you to leave with five new friends.

22:54 Speaker 3 Emphasis on really cool.

22:56 Speaker 2 Yes, absolutely.

So that's coming up September 6th and 7th.

Mogul mastermind August 27th as well in Edmonton.

I'm going to be speaking there with my good buddy Steve.

Steve.

I are going to be representing Fingo and talking about accounting tips.

23:10 Speaker 3 Hell yeah.

23:13 Speaker 2 That's August 27th.

Go register for that as well.

And then we got our REI Masters mentorship retreat this weekend.

How many days until that?

Is that three days?

23:22 Speaker 3 Yep.

23:23 Speaker 2 Thursday, Friday, Saturday.

Wowza.

Yeah, we got our two day retreat coming up this weekend for our master's students very excited for that.

It's going to be fun.

All righty.

What's the, what's the question?

23:38 Speaker 3 Okay, so the question is, coming all the way from Ontario, I'm searching for a starter property right now.

Where is a good spot to start looking?

Should I be aiming for a downtown Edmonton bachelor pad or a one bedroom with no garage on the outskirts, Question mark?

23:58 Speaker 2 Okay.

Thank you so much.

I'm assuming this is specific for Edmonton.

24:04 Speaker 3 Yeah.

24:04 Speaker 2 Okay, so you want to know a starter property, I need to know how much money you have.

24:10 Speaker 3 Yeah, I was going to say it seems quite clear that by the, you know, term starter and the types of properties mentioned that we're specifically talking about a low buy in price.

24:25 Speaker 2 Right, Right.

24:26 Speaker 3 So I'm guessing the funds are limited.

24:29 Speaker 2 I, I really want to make sure that regardless how much funds you have, whether you've got 5,000 or you've got 500,000, what you want is you want the best return on investment.

Return on investment is a percentage, right?

It's a percentage.

How much money am I getting back from my investment?

If I invest 5,000, how much money is coming back?

That's a 50% return on investment.

Okay.

I want to see you get the highest percentage of return on investment, whether it's 5,000 or 500,000 or 5 million.

We want a high return on investment.

Okay.

That's what we're measuring to determine how well our investment did.

I bought a property, I sold it, I made this much money.

It was this percentage of roi.

Okay, but I also want, I want to get the best ROI percentage with the least amount of risk.

Okay.

25:33 Speaker 2 There's lots of ways to make great roi, but at what cost do you want to put.

Do you want to be at risk of potentially losing all of it or do you want to be at risk of that property potentially being exposed to a negative cash flow situation if rents drop by 300 bucks?

Right.

What if the vacancy rate goes up?

Maybe it's a really low risk property right now, but vacancy rates go up over the next three years because everybody's building so much in Alberta and in Edmonton and suddenly that property is a negative cash flowing property in three years from now?

It cash flow today, but it doesn't cash flow in three years from now.

What do you do in three years from now when it's negative $400 a month?

Are you going to support that property?

26:29 Speaker 2 Are you going to take $400 out of your own pocket and support it whenever there's a Repair.

Are you going to take the money out of your own pocket?

Because you're already negative 400, so there's no cash flow, there's no reserve.

Are you going to take more money out of your own pocket or out of your own credit card to pay for that repair?

And when somebody moves out and it sits empty for two months and you have to repaint it because it was lots of wear and tear, are you going to cover the cost of the expenses while it's empty for two months and cover the cost of the paint?

Or at some point are you going to be like, I can't handle this anymore.

I can't afford to support this property.

27:07 Speaker 2 I, I'm just going to sell it and then sell it when it's arguably the worst time to sell the property.

If that's the case, do not buy that property.

This is what I mean, that, you know, you can buy a really good property.

You could get it for 70 cents on the dollar.

You can get it for 30% off.

You made money on your buy.

Or hell, you could buy it and you could.

Maybe it's a per.

It's close to a perfect burr.

Or a perfect burr.

Maybe you could buy the property and, you know, you can renovate it, increase the value, refinance it and pull all your money back out.

27:41 Speaker 2 But if it's not sustainable, if it can't weather that storm of, you know, interest rates going up or rents going down, suddenly it's negative cash flow and you can't continue to hold it for as long as you said you're going to hold it and you are forced to sell, then you shouldn't do the deal.

Right?

That's what were talking about last night with our student.

We were analyzing that four plex.

It's a perfect burr.

It was a perfect burr where she could get all of her money back out plus 100 and some odd thousand dollars extra in equity that she was able to pull out and then she could use those funds to reinvest.

The problem was it was negative $400 a month in cash flow afterwards.

Should she do it?

Maybe she should, maybe she shouldn't.

28:24 Speaker 2 We took a lot of things into consideration, which I can't talk about in detail, but that would be considered to be a high risk deal because the rents are good right now.

The rents are actually quite high in Edmonton because of the fact that we have a low vacancy rate.

There's not enough supply to meet the demand for renters in the rental market.

But when the supply does meet the demand.

When we put a rental property up and nobody calls, or we have a tenant that calls, but they're looking at six other properties, we need to be competitive.

We need to lower our rents in order to make sure that our unit gets rented.

And everybody else is lowering their rents because they want to get theirs rented too.

So the market rent is going down.

29:09 Speaker 2 We need to make sure that we have enough cash flow buffer there in order to make sure that we still have enough rent or sorry, enough rent to be able to cover our expenses.

We still have enough cash flow to be able to cover our maintenance and repairs and vacancies.

Now, I haven't answered your question yet, but this is how you determine whether you should buy a property or not buy a property.

So when you look at a bachelor, you know, unit in downtown Edmonton, does it meet that criteria?

Does it have a great return on investment?

Does it meet the five fundamentals that I listed off on that podcast the other day?

Does it pass the cash flow test to know that there is a sufficient amount of cash flow in order to weather any potential shitstorm?

Doesn't meet that criteria.

29:55 Speaker 2 I'm going to give you the short answer because this is like, this is.

This is grade one real estate investing.

Apartment condos don't work.

Apartment condos, the numbers work when it's a really good market, but the second is not a really good market.

They're terrible.

So I'm going to give you that one for free.

I want you to do your own research, obviously.

I want you to go and run the numbers yourself.

Don't just trust the guy on the podcast.

You don't know me.

I sound really funny.

I sound really cool.

Sound like a great guy.

He's goofy.

He says, he says swear words just like me.

Do not trust me, please.

I don't want you to trust me.

Because if you trust me, that means you trust other people too.

And you shouldn't trust other people.

30:37 Speaker 2 I want you to go, I want you to trust, but I want you to verify.

30:42 Speaker 3 Right?

30:43 Speaker 2 So go and take a peek.

Go look and see what kind of opportunities are available in downtown Edmonton for one bedrooms and bachelor paths, right?

But I can tell you that the condo fees on those properties are just ridiculous and there's no way that the rent is going to be able to cover it.

And if it does cover it right now, when you're listening to this podcast, stress test it, see if it will cover it in the future.

Right?

I.

The second part of this question is, what about a one bedroom with no garage on the outskirts.

I've never heard of a one bedroom house.

Or is it a one bedroom condo on the outskirts of Edmonton?

31:16 Speaker 3 Yeah, I'm not sure.

31:17 Speaker 2 Oh, maybe like around the ring road.

Like, like the Allersley, you know, area, Summerside area.

Like one bedroom condos.

Same thing.

Anyone who's been around investing in Edmonton for more than 10 years knows that like those things are a bitch to sell.

When the market is not hot.

When the market's hot, it's okay.

It's great.

Right?

Calvin's been on the show multiple times this year.

Calvin Hexter is an investor focused realtor in Edmonton.

He's been on the show multiple times this year and all.

Every single time he's been on the show this year it's been like condo sales are up.

Condo sales are up.

And we're like yeah, just wait until they're not up.

Wait until the market actually like flattens.

Not flattens, but you know what I mean?

Like just like stabilizes.

It's not in an upward trend.

Yeah.

32:05 Speaker 2 In a few years and those things are not going to be doing good.

32:08 Speaker 3 Yeah, well, and I'm, you know, without data, I am almost certain that one of the major reasons they're up is because of the amount of immigration and migration to the city, of people who just don't know how our market works and that these types of properties, you may see some appreciation, you may see that value increase momentarily but you'll watch it eventually drop way faster and further than the increase ever lifted.

32:41 Speaker 2 Yeah.

32:42 Speaker 3 Yeah.

So it's just, it's, they're volatile.

At the end of the day, they're extremely volatile.

Yeah, yeah.

32:48 Speaker 2 I highly recommend just avoiding them.

I don't know, I don't deal in absolutes.

You know what I mean?

A Jedi does not deal in absolutes.

However, this is one of those ones.

It's just like.

33:05 Speaker 3 It'S just an easy thing to say.

33:07 Speaker 2 Like I can save you a lot of trouble.

I just saved you a lot of trouble.

Yeah, like when we were in a flat market, do you remember the deals that we would see for one bedroom condos?

I mean I'm talking like people would be willing.

They would, they would, they'd throw their child in with the deal.

Like they would.

The terms would be ridiculously good.

33:32 Speaker 3 Well seller, finance it for 20 years.

We will pay you ero money.

Additional $30,000.

33:39 Speaker 2 Oh, we're not exaggerating here.

Okay.

Maybe a little on the $30,000 but like I remember seeing deals for like hey, seller financing.

We'll give you an agreement for sale, we'll carry the mortgage and.

And the financing for you.

We'll give you 10 years and we'll give you $5,000 cash to take this property.

But you have to take this property, you know, for $250,000 what I bought it for.

And it's actually only worth $170,000.

So you're underwater by 80k.

But don't worry, you've got 10 years worth of mortgage paid on and everything else.

So you'd look at it and if you ran the numbers it would actually be profitable.

But it's so incredibly risky.

34:16 Speaker 3 Yeah.

34:17 Speaker 2 It's funny though, people that did snag it up, they probably did are profitable now because it's probably up at around $250,000 again.

But again, the second it's not a good market, suddenly those things will be back down below 200 again because it's so volatile.

But anyways, it's.

I just stay away from those.

34:34 Speaker 3 Yeah.

As far as like, you know, starters and getting like a lower buy in, definitely condos are the lowest.

That's where you're going to find the cheapest options to purchase a property.

34:46 Speaker 2 Lowest down payment, you mean?

34:47 Speaker 3 Yeah, lowest down payment.

And you know, like after that you'd be looking at townhouses, Townhouse condos.

Townhouse condos.

Yeah, yeah.

And then kind of like your half duplexes, then single family, then suited properties.

So there's like, you know, there's the different types of properties and where you're going to find the lowest purchase prices.

35:07 Speaker 2 Yeah.

35:08 Speaker 3 So yeah, after condos would definitely be townhouses but again, you need to be careful about the types.

There's, you know, there's so many different types of townhouses and yeah, we got.

35:18 Speaker 2 Jigsaw townhouses, we got carriage style townhouses, we got two story townhouses.

35:23 Speaker 3 I would really highly recommend and I can't recall if this listener has or hasn't but for anyone listening and if you're kind of intrigued by this as well, I really highly recommend.

Wayne did a fantastic course on investing in Edmonton and going through neighborhoods and property types and you know, all this type of information that would be extremely valuable for an out of town investor.

35:53 Speaker 2 That was the main focus of that course.

The eight week Edmonton real estate investing course was understanding the different neighborhoods and understanding the five asset types and going through one bedroom apartments, apartment condos, townhouse condos, single family houses, suited houses and multifamily that's what went through in that course.

So you have a good understanding, a thorough understanding of it for Edmonton.

It also teaches you how to analyze any city.

I mean, I know the main major focus and.

And was on Edmonton and the neighborhoods went through.

But if you took that course, it would basically teach you how to analyze.

36:25 Speaker 3 How to analyze.

Yeah.

How to take exactly what you did with Edmonton and apply it to whatever city you're looking at.

36:31 Speaker 2 Yeah, that's.

That's the same way that I analyze any market.

You have to understand it inside and out.

But, you know, to answer your question, if it's a money thing, he didn't say how much money he had.

So, which is fine.

But, you know, next would be like a townhouse condo.

You'd look at and you're looking in the range of anywhere from 160,000 to 280,000, depending on the area, depending on the finishes.

The ones again that are like low, close to 150,000.

Just be aware that, you know, typically higher condos are not the greatest condo board or it'd be one of those, like less than desirable, like townhouses, like one that doesn't have a basement or like a jigsaw townhouse or like a carriage style.

Carriage style townhouse.

Just be aware.

Don't just be like, oh, I bought it.

37:14 Speaker 2 I found a townhouse for 150.

And Wayne was saying everybody else is buying them for 250.

So this is a good deal.

Not necessarily.

There's a lot of considerations you need to take into account.

And again, take the Edmonton real estate investing eight week course.

It's on our website, our masters.

Or book a one one call with me and I can analyze deals with you and I'll show you how to find the good ones.

And I know the city inside and out.

I know which ones.

I can tell you which ones have the best ROI and which ones have the best cash flow percentage.

So we can get you the best ROI with the lowest risk.

That's what it's all about.

I don't, I don't play risky.

I don't throw my money around like that.

I don't throw other.

37:54 Speaker 2 My joint venture partners money around like that.

I want as close to guaranteed returns as possible.

I can't say guaranteed on a live podcast.

I can't say it anywhere.

Actually, I should never say guaranteed.

But I think the people that know and take our education that are in our mentorship program, they know exactly what I'm talking about.

I am 100% numbers based yeah.

So hopefully that helps.

Hopefully it's helpful.

I would say if it's an affordability thing.

Townhouse, like a two story townhouse?

That would be your best bet.

Okay.

Oh, a break, a little commercial break.

And then we have another question.

We're gonna get to that.

We shall be right back.

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40:23 Speaker 2 And we are back.

Okay, let's get to this question.

And by the way, thank you guys for bringing your questions to the show.

I love it.

I love helping.

I love giving you guys that clarity this morning.

Guys, I understand purchasing rentals in a market that you don't live in, such as Edmonton, but if you also wanted to pursue a flip strategy, is the flipping best done where you live because of how involved that gets?

I live in Calgary.

40:49 Speaker 3 Great question.

40:51 Speaker 2 Yeah, it's.

It's a great consider.

I'm glad that you're asking that question because you don't just want to assume that you can, but also you don't just want to assume that you can't either.

41:01 Speaker 3 Yeah, for sure.

And that's.

And, yeah, it is a really good question to be asking and something that we actually have a lot of experience in.

41:11 Speaker 2 Yeah.

41:12 Speaker 3 Maybe not in quite the same context of, you know, being, you know, not close by, but back when fix and flipping was hot in 2022.

41:25 Speaker 2 Yeah.

41:25 Speaker 3 Yeah.

We were doing multiple flips at the same time and I was actually managing those projects remotely.

So there was very, like, very few times that I would actually show up in person.

41:39 Speaker 2 I would swing by maybe once a week to go get some pictures.

41:42 Speaker 3 Yeah.

For social content.

41:44 Speaker 2 But otherwise, yeah, Gabby was really running the show.

I wasn't really involved in it at all.

Gabby was ordering all the supplies remotely.

She was working with all the contractors, the different teams that we had, and she did it all from home and never really went down there unless, like, oh, the flooring's in, so you just want to go and see it.

42:03 Speaker 3 Yeah, for sure.

It was more of, like, a interest in seeing how it's coming along type of thing rather than a like, oh, my gosh, I need to be there to manage these.

These trades or to, you know, go and discuss this or that.

Like, it was all manageable from afar.

42:20 Speaker 2 Yeah.

Whether that be 15 minutes away or three hours away.

Yeah, it's doable.

42:24 Speaker 3 I think.

I think the main thing that it really comes down to is having the right context, like the right traits, the right building the right team, which can be difficult if you don't know.

Like, if.

If you're completely new to the city that you're going to be doing this in and you don't have contacts, it may take time to build that up.

42:46 Speaker 2 Yeah.

42:47 Speaker 3 And maybe a little bit more, like, relying on.

On referrals would be really important.

So people who are doing what you're wanting to do and getting those really good contacts, those really good referrals of.

Of who other people trust would be really important.

So building the right team as well as the right systems, and I wouldn't really suggest this if this strategy is new to you.

So if you've never done a fix and flip before and you're starting from scratch and you don't really have any systems in place at all, and you don't really know what you're doing and you're gonna kind of, you know, stumble your way through your first flick fix and flip.

I wouldn't suggest doing it from afar with a team that you don't know and trying to build systems, you know, that way.

43:38 Speaker 3 But if this is something you're familiar with and you're comfortable with and you know how to, you know, vet people and the process and all that kind of stuff, then it's absolutely doable.

Yeah, absolutely doable.

43:52 Speaker 2 We teach, we teach this stuff, you know what I mean?

We teach how to build these systems.

We have a great fix and flip workshop on our mentorship program.

Manage it.

Does you saying that like it is possible.

I love saying like it is true.

And I want to say that.

I want you to say that.

Gabby.

I've got so much like, I also don't feel comfortable saying it because I don't want people to run with that answer being like, oh, they said it was possible.

I just need the right team man.

Like you can find the best plumber, the best H vac technician, the best electrician, the best laborer, best project manager, the best painter, flooring specialist.

And they can all be really great.

And they can show up when they're supposed to show up because they're professionals and they do great work.

44:45 Speaker 2 If you get a call from the neighbor next to that property that the front door is wide open at 11pm and there's somebody inside, or if you get a call from Your painter at 6:30 in the morning because they just showed up with their sprayer and they say that there's water three inches deep in the basement, who do you call for either of those things?

Which of these quote unquote professional tradespeople are going to be the people that are your boots on the ground that help you through the crazy situations like that?

45:32 Speaker 3 Yeah.

45:34 Speaker 2 Who do you rely on?

It's, it can be hard.

That's the stuff that scares the crap out of me.

If you're three hours away.

45:42 Speaker 3 Yeah.

45:43 Speaker 2 Like, you can't just go drive there at 11 o' clock at night and get there at 2 o' clock in the morning.

Right.

Do you call the police or is it because the drywall guy forgot.

Forgot his stuff and he just went back because he had a lockbox code to go grab his fan that he left there?

You know what I mean?

Do you just start calling literally everyone at 11:30 at night being like, is it you that's in there?

Is it you that's in there?

Do you ask the neighbor, he neighbor, would you actually mind going over there and seeing who it is?

Ask them their name.

Meanwhile, it could just be someone breaking in.

46:14 Speaker 3 Yeah.

46:15 Speaker 2 Methed out with a knife.

You know what I mean?

Like, how do you handle a situation like that?

This is the kind of stuff that's, like, you really do need this.

If you were around, you would deal with it, right?

When someone says that it's, you know, there's water in the basement, you ask them how much, they'd be like, oh, it's pretty deep.

Well, how much?

Tell me how much.

Well, I.

I don't know, Van, but I.

I only came here just to, like, to prep, and I don't.

I don't have time to be, like, sitting here measuring the depth of the water here.

Like, I only came here to tape it up so I can paint it this afternoon.

So I'm gonna have to get going.

But you're gonna have to call someone to come down here.

Who do you call?

Yeah, right.

46:52 Speaker 2 That's the stuff where you need someone extremely reliable in town, the type of person that will drop whatever it is they're doing, you know, leave the dinner table with their kids and go and help you deal with that.

That's the stuff that's a little bit scary with fix and flips or having vacant properties when you're not around.

And it's the same thing with, like, rental properties as well.

You know, Gabby teaches a really great course called the Remote Property management course.

You can get that on our website as well, teaching you how to remotely manage your properties, your own properties, from wherever you want.

But it's all about building the right team and having reliable people around in the event for things just like that.

Hey, I saw the lights on inside, and someone's walking around.

Isn't your.

Isn't your unit empty right now?

47:39 Speaker 2 What do you do?

Do you call the cops?

Right?

So that would be the big thing that I would.

The last consideration that I would take before you do something like that is that you need to have reliable people that will.

Will treat this property just like you would treat it, or drop things and go and deal with it as if it were their own.

47:57 Speaker 3 Yeah.

Yeah, for sure.

Kyler in the comments says reliable people are hard to find these days.

48:04 Speaker 2 Nobody gives a.

About your as much as you do.

48:08 Speaker 3 Yeah, for sure.

48:09 Speaker 2 I'm sorry to be so pessimistic.

I know it sounds negative, but nobody has your best interest in mind as much as you do.

Right?

And, yeah, there's some good people out there that really care about you.

But it's.

When, you know, push comes to shove and it's.

It's in a situation like that, will they drop everything they're doing?

You know, they're Trying to put the kid down to bed.

Are they just gonna leave?

They're gonna put the kid in the car seat when it's bedtime and go run down there and see what's going on.

Find out if there's someone actually in there that's methed out with a knife or if it's just the.

The drywall guy that forgot his fan.

You know what I mean?

Are they going to deal with that with their.

With their newborn?

48:54 Speaker 2 I know it's an extreme circumstance, but this is kind of stuff you.

You know what I mean?

That you have to deal with from time to time.

And, you know, most.

Most cases, you know, everything goes as planned and everybody does what they're supposed to do.

But what if, like, the guy that's there to, you know, go to paint, shows up and he's supposed to be doing all the painting the doors, and somebody was supposed to set all of the brand new doors up in the living room on stands so that they could be painted.

And that was the agreement, was the painter said, make sure you have all the brand new doors ready to go, all the hinges off of them set up in the living room.

I'll come with my sprayer.

I'll pant all them on Thursday afternoon.

49:39 Speaker 2 Painter shows up on Thursday afternoon, and they're not set up, and they can't even find the doors.

Who do you call?

You know what I mean?

You call the other person, like, hey, you're supposed to do that.

Oh, yeah, sorry.

It was raining and I couldn't.

I didn't want to bring the doors in when it was pouring rain.

There was lightning and stuff like that.

So I'm going to be coming to do that this morning, or I'm going to do it tomorrow morning.

Well, no, the painter's there right now.

You know what I mean?

Trying to coordinate that stuff remotely is a pain in the ass.

You've dealt with that, Gabby.

50:05 Speaker 3 Yeah, for sure.

But what I'm hearing, Wayne, is a lot of doom and gloom and.

But I'm like, can come up from time.

50:11 Speaker 2 I always do that, though.

That's what I do.

I tell you all the reasons not to do it, and then we will teach you all the ways, the systems that you put in place, because Gabby does have systems in order to solve all these things, right?

50:21 Speaker 3 Yeah, but.

And what I was going to say is that, like, you know, he's saying all these, like, situations that may or may not arise, and it's no different than owning rental properties and have tenant issues that arise from time to time.

You deal with it.

50:34 Speaker 2 Yeah.

50:35 Speaker 3 Right.

You find a way and you deal with it.

You get resourceful and you deal with it.

And so, yes, it can be difficult from afar.

There can be things that come up.

You may not have somebody super reliable, and you need to get creative.

50:51 Speaker 2 Yeah.

50:51 Speaker 3 But where there's a will, there's a way.

Where there's a system, there's a way.

50:57 Speaker 2 And where there's a will, there's a.

Wayne, I'll teach you.

51:02 Speaker 3 Yeah.

And.

And I.

I say that as long as you have experience in.

In the strategy, that I say that you can do it.

51:14 Speaker 2 Yeah, yeah.

If you want it bad enough.

If you want it bad enough.

Yeah, yeah.

All those things, by the way, that I said, will inevitably happen.

We've dealt with it all.

51:25 Speaker 3 Well, Kyler says maybe the drywall guy is methed out and drywalling late.

51:29 Speaker 2 Yeah.

You don't know.

You don't know.

51:32 Speaker 3 Yeah, one.

One.

I'll just.

I'll just leave, like, one little tip.

But just because, like, you're talking about all these, like, crazy situations, and we never did this ourselves, but I do know of people who have done it who are flippers, is that if they're not actually, like, on the tools and they're all the time, sometimes people doing flips will actually set up, like, security systems.

51:55 Speaker 2 Yeah.

51:55 Speaker 3 Where there's actually cameras, like, inside, too, so you can, like, keep an eye on, you know, that progress is happening, that people aren't, you know, messing around and not doing what they're supposed to be doing and that sort of thing.

But then also that your property is secure.

And there's actually, like, alarm systems that are monitored.

That's what it's called.

Monitor alarm system.

So if there is a break in, the police are automatically called, like, those types of things.

Things.

Right.

Or the, you know, fire.

The fire department is called those types of things.

So just for added protection, especially if you're from afar.

52:28 Speaker 2 Yeah.

52:28 Speaker 3 I don't think it's a bad idea.

52:30 Speaker 2 Yeah.

We were.

We were doing a renovation.

It was a burr.

Years ago, and the property was.

It was abandoned before we bought it, so it was all boarded up and it was fenced.

And so homeless people have been living in it.

They've broken the window, and they've been living in the basement and kind of camping out in there until we purchased it.

And then basically we boarded up those windows until the new windows came in and we started the renovations and the demo and stuff like that in the cleaning.

But from time to time, the homeless individuals would tear off the sheet of plywood and get back in and they would sleep in there.

And from time to time, our contractors would come in the morning and they'd be like, yeah, there was definitely people living in here overnight.

53:23 Speaker 2 So, you know, that's something you have to deal with.

We thought about putting up cameras, but, like, we didn't even have elect.

I don't think we had electricity in there because electricity was cut off at that time.

So, like, they were.

They were running extension cords from the neighbor's house with their permission, by the way.

53:37 Speaker 3 Yeah, we paid.

53:40 Speaker 2 But they were running extension cords.

So, like, we didn't have WI fi to be able to.

Or like electricity to be able to set up cameras.

And if we did, I mean, the.

The person would just come over and unplug the extension cord and it would turn the camera off.

But yeah, you know, stuff like that we've dealt with in the past before.

And it's actually not.

I wouldn't say that it's common or that it's uncommon, but it's possible that, you know, if people see vacant properties, you know, they'll.

They'll go and set up camp and, you know, camp in there and they'll sleep in there.

54:10 Speaker 3 Yeah, you should always put up curtains.

You can set up little lights on timers and stuff.

There's.

There's little tips and tricks.

54:17 Speaker 2 So many little tips and tricks and things that you can do.

Yeah, it's.

Vacant properties are.

Yeah, you do need to take all that stuff into consideration depending on what neighborhood you're into.

Obviously, you know, some neighborhoods are a little bit more prone to that than others, but.

Yeah, it's exciting.

I mean, like, if you're interested in, you know, flipping in Edmonton, there's definitely opportunities, you know, is it the hottest fix and flip market right now?

I wouldn't say that.

I wouldn't say that.

But it's not that it doesn't work right now.

You know, Edmonton isn't a.

The prices are rising.

They've been rising for two years now.

How much more in this upward trend?

We'll see how it all plays out through the winter and into next spring.

And that's typically where you.

The.

It's the best time for fix and flips is.

55:12 Speaker 2 Is typically when it's not in a negative trend.

You certainly.

You can do it in a.

In a balanced market, but.

Or in a flat market, but it's not as easy.

So in a rising market, it's.

It's a good time to do it.

When there's lots of demand from buyers.

So definitely it's possible.

You just got to know the right neighborhoods and the right areas.

Because not every neighborhood, you could say the city's oh in an upward trend and that way it's a good time for fix and flips.

Not every neighborhood, there are specific neighborhoods in every city that are best for flipping.

Right.

55:45 Speaker 2 And you have to know where those areas are, where the big in demand areas are, where people are willing to pay more for that proximity to whichever or that to live in that neighborhood, to have that high end product in that neighborhood.

You got to really, truly understand that to make sure that you don't just buy a property and the numbers look good, but then it sits in the market for three months because nobody wants to buy it, Right?

56:05 Speaker 3 Yep.

56:06 Speaker 2 But hopefully that answers your question.

I think that wraps up today's show.

Sweetheart, go and get your tickets for recon.

Go to reiconference Cat.

Feel free to use the code reimasters for a discount as well.

Come hang out and come see me at the mogul mastermind on August 27th as well.

Learn all about new accounting tips that you weren't aware of.

And for everybody else, you know, I guess we'll just see you tomorrow.

56:39 Speaker 3 We'll see you tomorrow morning.

Have a great day, you guys.

56:41 Speaker 2 Bye now.

56:45 Speaker 1 Thanks for listening.

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