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Episode Summary In this episode of Get Real Wealthy Season 2, Quentin shares eight things he would have done differently if were to build his portfolio again. Quentin says that he purchased his first property in 2004. In 2008, he bought multiple properties for a year. By 2013, the cash flow from the portfolio allowed him to decide whether to quit his job or not. He left his job as a public-school teacher in 2014. He adds “it was quite a stressful decision, but decided to leave my profession and focus on real estate investing, full time, which I have been doing since 2014.” Talking about the eight things he would do differently if he were to rebuild his portfolio, Quentin says. Topics Discussed • Eight Things He Would Have Done Differently Important Links • https://EducationREI.ca • https://GetRealWealthy.com • https://DurhamREI.ca

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin takes on the question; ‘would you rather have 100% of $5,000 a month in cash flow or 1% of $500,000 in rents.’ Quentin says that the reason why we're going through this is to give you a perspective of whether you invest directly in one to four-unit properties and build a portfolio over time or you decide to scale into a property and have an idea of what that cash flow would look like for you based on that portfolio. To understand this, really, you need to know about the debt coverage ratio, what cash flow is and agree on that. Then, look at the portfolio size, how that affects your cash flow and the returns that you get on a particular investment. The debt coverage ratio is a way for the bank to determine whether they are going to fund your property or not. If you calculate your mortgage, utility payments, property taxes, insurance, and some variable costs, put them all that together, that is the debt on the property. So, If you are getting an equivalent amount of monthly rent to debt, that means you would have a 1.0 debt coverage ratio, and 1.2 would mean that you are earning 20% per month on that particular asset. As for the one to four-unit property space, you are looking at proforma, which takes those same numbers that you use for a debt coverage ratio, but analyzes them from a cash flow perspective. Let's suppose you have a cash flow of $200 from a property, and your goal is to generate $5,000 a month, you would need 25 doors to accomplish that. On the other hand, if you had portfolio size change because you decided to scale up and get into larger multifamily units, it's easier to look at it from a debt coverage ratio perspective and get an idea of what your general rents are, you can come up with return you would be getting. So, if you had $500,000 in rent, and you had that coverage ratio of 1.2, that means 20% of that is $100,000, which you would keep at the end of the month. If you had 50% of that as a partner, you would have $50,000 a month. Now being able to get to that scale in size takes time, but it depends on the size of the projects that you get involved in. However, other things also come into play when you scale, such as a much high mortgage payment, as compared to a smaller portfolio. Essentially, having 100% of $5,000 a month in cash flow or 1% of $500,000 in rents is going to depend on what your goals are and what you are looking to accomplish with real estate investing. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin shares how he was introduced, and how he has used the ‘buy, renovate, refinance and rent’, or the BRRR process. Quentin says that he has used this approach since 2008, from small starter homes to large 40, 50 unit apartment buildings. While the process is the same, the timeline varies a little and the scope of what you are doing with capital expenses can be different. He shares that when they had gone back to 20% down, he was just trying to figure out a way to get a larger yield on his money. He started out in real estate by taking a line of credit out on their principal residence. He adds that since the start, it's been refinancing and rolling that into new projects, taking on different partners on different projects, etc. while trying to take advantage of having a low-down payment into his projects, get better yield and have cash flow. What he had figured out was that if he bought a property that needed work, he could fix it, refinance it to the after repaired value, and as long as that after repair value cash flowed well, he could continue to hold that asset. The better that he did it, the more he was able to take out of the project and have none of his own money into it. While he had success with this approach and developed great relationships, he says “if I were to go back, I would have done a lot more of the projects that I had passed over because I felt like they were singles or doubles…” It led him to seek out other people who are doing the strategy, and met two great friends, Andrew Brennan, and Jeff Wood. Quentin also wrote the book The Ultimate Wealth Strategy with the latter. He adds “The Ultimate Wealth Strategy, which is on buying fixing refinancing renting real estate back then we called it the BFRR strategy. It was rebranded years later to buy renovate, refinance and rent the BRRR strategy.” In conclusion, he says that when you're able to find in use the strategy of buy renovate, refinance and rent and cashflow positive on an asset in an appreciating market where it is typically considered an appreciation market versus a cash flow market, you can do extremely well that's why he focuses on that strategy. In the upcoming episodes, Quentin will cover different aspects of this approach. Resources Mentioned http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses the buying section of the buy, renovate, refinance and rent process. Quentin says that buying right is probably the most important part of the BRRR strategy. If you overpay for an asset, you are not going to be able to refinance it for a price higher than the purchase price, and the strategy is not going to work. He adds that you can actually buy at market price, but it will always depend on the market. Sometimes if you're in a heavily situated seller's market, the purchase price is a lot higher than what would be considered the previous market price. That can work, if the market price continues to push up over the time of the renovation, but you're taking a risk if you're trying to predict or speculate on a future price. He further says that if you are buying high, in a fast-appreciating market, it can really benefit you, even if you bought it at the market price of today. He says that “my preference is to buy with equity and buying with equity means that you have to work harder in order to find those properties…” He dedicates his time and resources to find opportunities that other people won't be able to. You can either spend the time and marketing dollars yourself to do it, or you can give those dollars to somebody else and let them do it for you. You deal directly with a broker who has a pocket listing, or you can reach out to wholesalers. Talking about the wholesalers’ assignment fees, Quentin says that they charge for the work, time and effort they dedicate to put such deals together. The alternative is going out, spending the time and looking for off market properties yourself. You can do that by reaching out to the people who put up the ‘WE BUY HOUSES’ signs, and asking to be put on their buyer's list. You can also use other sources like Property Guys or Kijiji. He further adds “create those relationships with those wholesalers…create relationships with realtors and brokers who have lots of listings that match the type of property that you are interested in purchasing.” In conclusion, Quentin says that when you reach out to them, let them know that you've got your financing ready, you have your down payment ready, and you just need the property. Furthermore, create a property scoring system that could help you filter the properties that fit your criteria. Resources Mentioned https://educationrei.ca/ldcourses/off-market-and-discounted-properties-real-estate-system/ (Off Market Properties Course) http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses the renovation aspect of the buy renovate, refinance and rent, or the BRRR strategy. Quentin says that when it comes to the BRRR strategy, it is crucial to keep your costs down. He says that add the buying, renovation costs, add them together and subtract the after-repair value, the spread that you get is what is going to be reduced from your 20% down payment. He adds that you have to have the renovation cost in mind. While keeping those costs down can be a challenge, but you're also trying to get the highest appraised value possible. It does not necessarily mean that the property has to have high-end finishes, it is about bringing it to its highest and best use. He further adds “what it means is looking at a property seeing what it is now and seeing what it could be in the future after you added some renovations to it after you've solved the problem.” Essentially, you want to give the most value lift to the property. To keep your construction costs on budget, sometimes you buy a property, and you need to identify what your renovation costs are because you don't have the expertise to do it yourself. This is where you can ask general contractors for the services during the inspections of the property. Perhaps two or three contractors, during the inspection process and get some quotes on the renovation costs for the particular property. He adds that what you're always trying to do is to see how you can increase the potential income from that asset, and that's why accessory apartments or accessory dwelling units can add value to a building. Quentin further says “I always suggest that you have a general contractor especially if you're doing it for the first time to handle all the day-to-day stuff. But you go in every week and make sure you understand the entire process and then you can always take it on yourself on the next project.” In conclusion, he says that while it can be very challenging dealing with various municipalities and building inspectors in general. Just remember you're building to a building code and that's what you want to adhere to as best as possible. Resources Mentioned http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca) YnP30lX9JUX6IA7baq43

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses the refinancing aspect of the buy renovate, refinance and rent, or the BRRR strategy. Quentin says that when it comes to the BRRR strategy, this is when the investor gets paid. So, it is the most important step of the process. If you bought the property well, and identify what the after repair value of the property, whether it is with the help of an app, or a realtor, it should be higher than what it was when you started the project. It is really important that you take some time and prepare for the appraisal. Talking about the financing types, he says that you should be in a variable rate product, whenever you're doing this type of strategy. You want to make sure that you have the ability to get out with three months interest penalty, or you're in perhaps a private mortgage, that allows you to get out of the property current mortgage into an A lender or better product. He adds that as opposed to the US, there is no seasoning period in Canada. He says that there are ways to prepare for the appraisal of a property. Knowing the comparables and preparing appraisal package for your appraiser is a key tool to help you get a higher than appraised value. During the appraisal, you want to make sure that you are walking through the property with the appraiser. You do not want to just find a time let them go in by themselves. You need to let them know about the new wiring, the upgraded plumbing, any bills or large expenses, share that you have spent the money and made upgrades to this property. You want to bring up the benefits of the property, as well as compare it to the other units or properties in the area. Talk about some of the other pieces that make this property unique and better? Put yourself on a different pedestal versus the comparable properties. You want to make sure that you're doing that as best as you can. In the event of receiving a low appraisal, there are a few options for you. One, you can talk to your mortgage broker, your mobile mortgage specialist bank, and you can ask them, Can I get another appraisal? Sometimes you can. Another option would be to question the comparables that were used. In the appraisal, perhaps they are comparing your legal duplex to a similar single family home which is not the same, and especially if an appraiser doesn't know or understand the difference. The third thing that you could do is you could take a short term mortgage, maybe a one year term, perhaps a variable rate mortgage, and get the property appraised again in a few months. A fourth option would be another financial company to come in and put the mortgage on the property and try for a different appraisal. Resources Mentioned http://goo.gl/Kp5UjA (The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate) https://educationrei.ca/ldcourses/getting-higher-appraisals-the-basics/ (Getting Higher Appraisals: The Basics) Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca) gY6Xnegk9Yiwl3vTHEYN

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses the illegal versus legal secondary suites. Quentin says that an accessory dwelling is usually a dwelling that's found in addition to a primary dwelling. So the primary building could be a single detached, semidetached house or one house beside the other and then in the basement of that, there is another unit. Usually, there is another entrance into that unit. Sometimes it's from a shared common area. Sometimes it's a separate entrance from the outside going in. So the accessory dwelling unit can be in the basement, an addition on the back, or the top. Sometimes it could be an exterior building, like a pool building or a garage that has another living unit on the same lot as the building. There are some units that are illegal, which were created without permits. They don’t adhere to building codes, the bylaw, or the fire code. So if you are buying a building that has an accessory dwelling, you need to make sure that it's legal. Sometimes there are properties that are legal and non-conforming, though, meaning that they were built perhaps years earlier, met the code at the time, and perhaps they are grandfathered in as being legal but they do not conform to current building codes or the bylaws. He adds that he stays away from the illegal suits because they can easily be shut down if someone complains. There are different rules that are out there that allow you to legalize a unit. Sometimes there are pieces of legislation that allow you to grandfather in units. Every municipality is different in this regard. He adds “what I would love to see is that any unit can be made legal as long as it needs fire code, because by law, I think it's a little out of control when it comes to parking regulations and green space.”Quentin further says that there are some risks associated with illegal units. Putting an end to the unit itself can be a big risk because all of a sudden you're losing an income source. If it doesn't meet fire regulations and there's a fire in the unit, and your insurance provider wasn't aware that it was an illegal unit, it could cause some issues for you. In conclusion, he says that you should make sure that you have all of those pieces in place. As a professional investor, he likes to stay out of illegal units, adding “that's the way that I like to play and I try to stick to legal units as much as possible. Sometimes I may have a building that has an illegal unit in it and I work to through the process to convert it to make it legal.” Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses renting versus buying a vacation property. Quentin says that over the past few months, there have been a lot of vacation properties being rented out in the Halliburton area, where a few years ago, there were for-sale signs everywhere. So, why would you buy a vacation property? He says that if one of your goals was to own a vacation property and go ahead and buy it. However, if you're just looking to utilize the vacation property, there are a couple of different options. First, how often are you actually going to utilize the actual property? Look at the number of days that you were actually able to go to the cottage versus renting the same type of cottage in the same area. This will give you an idea of whether the expenses owing such a property are feasible or not. He adds that oftentimes, the rental vacation properties barely cover the expenses and don’t offer any significant cash flow. It is different for people who are in the business of short-term vacation property rentals. The other thing is can you get a better yield on your money in a different asset? Sometimes it makes more sense to invest money in your business or in a rental property in a different area that has good cash flow and good appreciation. Quentin adds that when it comes to vacation properties, there are other types of investments as well like new fractional ownership properties, where there are 12 owners of the property, and each one gets assigned five weeks, where you can go and visit. However, it is not an investment as it does not give a yield that you can get on an investment property with cash flow and appreciation in a good solid investment area. As for timeshare, he says “Get it off the secondary market you can probably pay for like the cost of the paper that it's on like $1 And you just take over the payments. Don't buy a new timeshare.” In conclusion, he adds that to learn about whether your property would make sense as a vacation rental, you can use resources like AirDNA, to get an idea of how much time a certain area is being rented out and the prices that they're going for. This will help you make an informed decision. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses renovations of the rental unit – repaint replace, or reface. Quentin says that firstly, you want to maximize your renovation dollars as well as the possible rents for a given property. We always want to have our property clean, safe and secure, so we want our renovations to match it. You want to make the property appear safe when someone walks up, the curb appeal also makes a huge difference. He adds that when getting into a new rental unit or turning over a rental unit, make sure that you use the same colour paint. Quentin says that they have the same colour scheme that they use as well as similar lighting. He adds that usually when turning over a unit, the property might require small-scale minor fixes. Ultimately, it just depends on the condition of the property, and whether a section needs repainting, replacing, or refacing. Whether it is cabinet doors in the kitchen, countertops, bathroom fixtures, vinyl tile flooring, faucet fixtures – you need to find things that work well for you. You want to create that list of items that you're going to continue to do over and over again in every rental unit. He concludes by saying that the key, when it comes to renovations of the rental unit is consistency. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin discusses the BIG DEAL Formula. There is a BIG DEAL Formula scoring system on DurhamREI.ca, which is a free tool that can be used to analyze properties. In the BIG DEAL Formula, ‘B’ stands for below market value. You want to buy properties that are below market value so that you can have some instant equity. The idea behind this is that you're usually solving some sort of problem. Next, ‘I’ stands for income-producing property. We want to see cash flow, because cash flow helps us to hold on to an asset. If we can hold on to an asset for a long period of time, we're going to be able to see that hockey stick growth. Lastly, ‘G’ stands for good fundamentals. We want to see an area with a population that's growing, has infrastructure investment at the municipal, provincial or state, and federal levels. The next thing we want to see is job diversity. As for the DEAL, ‘D’ stands for the downpayment. How are you getting the downpayment for your asset purchase? ‘E’ is for equity. You should be equity owners of a property if you are simply getting interest from a private loan, as equity is important to have in any deal. ‘A’ stands for asset value, which we want to build. Adding value is an important part of the BIG DEAL Formula. The last one is location. You can do a lot of things to a property, but one of the things you can't do is change the location. So, having a key location in a good area of town or a city makes it a lot easier for you to see appreciation and growth in an area. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin talks about how to succeed in real estate investing. Quentin shares some of the things that he has learned over the years and will hopefully help you to get going with your real estate investing. The most important thing before you start investing in real estate, is the mindset. Mindset is important to help you to get to the place where you want to go. There are lots of great books on this topic, such as Mindset: The New Psychology of Success by Carol Dweck. The second one is understanding where you are in the real estate cycle. All markets, all areas go through the real estate cycle. You want to know where you are and you want to have that understanding of the real estate cycle. The third is goals. You want to have specific goals when it comes to investing in real estate. Those goals need to be numbered. It needs to be categorized in a way that relates to you. What are the most important things for you and set those goals and write them down. You can use Quentin’s book The Action Taker’s Real Estate Investing Planner to help you with goal setting. The second last strategy is to buy and hold apartment buildings. The last one is, remember that there are tactics used to implement strategies that are out there to help you to get your other goals done. Remember to be proactive, and not reactive. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)

Episode Summary In this episode of Get Real Wealthy Season 2, Quentin talks about vendor take-back mortgages. A vendor take-back mortgage is when you have financing that comes from the seller. When you have financing that comes from the seller it's usually because the seller has paid off the existing mortgage on the property and it's owned free and clear or they have enough equity in the properties that they could offer you a mortgage in the second position in order to lower your down payment on the property. Vendor financing or seller financing can help you to increase your ROI and also make a deal make sense. Oftentimes you're including terms in your purchase and sale agreement that outline that the seller is going to carry back the first mortgage or a second mortgage on the property. Your lawyer outlines those terms and can set up a mortgage for you and sometimes people make it out that it's some complex thing and it really isn't. Oftentimes, it's possible to even cover closing and land transfer costs into your seller financing. It just depends on how you negotiate that in your purchase and sale agreement. There are a lot of different and creative ways to do it. You can take possession of it through the mortgage, you could use a joint venture agreement in order to help you to use the existing financing on a property, and then once the work is done, flip that to either yourself or through a sale to the third party. Usually, it's just what you negotiate with the seller from a terms perspective. In conclusion, there are lots of benefits for vendor take-backs or seller financing for the buyer and the seller. And it's a great tool for you to include in your toolbox for being in real estate investing. Important Links https://educationrei.ca (https://EducationREI.ca) https://getrealwealthy.com (https://GetRealWealthy.com) https://durhamrei.ca (https://DurhamREI.ca)