Buying Real Estate at 21 Years Old! Building a Real Estate Portfolio in Windsor Ontario

[@vontaylorco]

this is amazing for young people especially inspiring for those from Ontario. You guys and Matt are making such a great contribution to this world. have fun in India!!

[@CanadianRealEstateChannel]

Thanks! Glad you're enjoying it!

[@andrewmcglennon1108]

Great video. Can you elaborate on the terms that you have with your investors? Preferred returns, profit split, etc Can you also make a video on how to attract the investors in the first place? I.e talk about why the investors don’t just do it themselves.

[@stephenhickey8062]

A friend of mine who is a professional investor just told me about a mortgage product RBC was offering. For commercial apartments of 5+ units, they allowed a 5% down payment on a 40-year mortgage. This is perfect for buy and hold investing since the point of passive investing is cash flow. Does it matter that it'll take 40 years to pay off? No. And because the payment will be lower than a typical mortgage, you'll make more money every month. And at the end of any fixed-term, you can always renew for a shorter time. It's a good way to get in the door. I'm considering a 6-unit with an additional 5000 sq ft bldg attached for 290k. So that is $14.5k at 5%. Pennies on the dollar of what it would normally cost through traditional lending. Just throwing it out there for those who may think that's a useful piece of information.

[@CanadianRealEstateChannel]

Thanks for sharing Stephen. I'm not familiar with the exact project but sounds interesting. I know there are certain products for larger multifamily backed by cmhc where you only need 15% down.. 5% is new to me... I'll have to look into it - thanks again for sharing!

[@inspirationacademy6898]

@@CanadianRealEstateChannel Hey did you find anything on this? Reached out to my broker at RBC and he wasn't aware of any product?

[@dolphin.cheddar]

What is the equity vs liability here? If you buy the first property estimating 20% down --- 34k... + reno costs @ 10k per unit for another 30k --- you'd have ~65k tied up in the triplex. Where do you find the cashflow to purchase a 2nd, 3rd, 4th property? Do you have to pull a home equity loan each time to keep going?

[@CanadianRealEstateChannel]

Great question James - if you checkout some of my other videos - you'll see an investing strategy called the BRRRR method - it can be one way to speed up velocity of your money, otherwise you can get joint venture partners who bring the money, and you bring the opportunity/deal

[@waltermercado9152]

Wow those properties are dirt cheap. Loved the video thanks Matt, Cassidy and other Matt.

[@CanadianRealEstateChannel]

Haha - right? and here I thought London Ontario was cheap!

[@KellanJames]

Seriously impressive! Especially all of the creative financing. 0% VTB with under 5% down?? Ridiculous!

[@CanadianRealEstateChannel]

100% They're crushing it!

[@garymacdonald5921]

Can't wait for this video Matt!!!

[@CanadianRealEstateChannel]

Thanks Gary!

[@JohnDoe-xh3el]

Hey Matt! What are your thoughts on investing in kitchener/waterloo. With high house prices, most investment properties would result in negative cash flow depending on how the downpayment is funded.

[@alfonsosolano3486]

This was amazing and so helpfull thx Matt!

[@CanadianRealEstateChannel]

Thanks for the feedback! Glad to hear you enjoyed it!

[@honestly101]

Kassidy plus Matt x 2 thank you for sharing.

[@CanadianRealEstateChannel]

Thanks Noel!

[@rickymagicanada]

That's amazing

[@amolgill7480]

So when they said they used other people’s money. Did they use the money for the down payment or for the renovations? And what ratio do the investors own in the joint venture deal? PS Great video, loved the information!

[@ketaknaik9755]

Informative, thnks guys

[@CanadianRealEstateChannel]

Glad you enjoyed it! Thanks for commenting!

[@ketaknaik9755]

Matt McKeever hi, can you suggest a good insurance conpany that covers student tental property in London. Thank you

[@Currygoatpapi]

For someone who's building their capital off of Earned income below 30k any suggestions on the first step they should take starting out in real estate investing ?

[@CanadianRealEstateChannel]

I recommend you start by looking at wholesaling real estate - it takes a lot of initial startup time or money - with wholesaling you can choose whether you'll grow your business with time or money. Checkout this video for an idea about wholesaling: kzbin.info/www/bejne/iWqmlJKmq7GHlbc

[@KellanJames]

I love the idea of a "portfolio porn" series, would be super entertaining to watch and learn!

[@CanadianRealEstateChannel]

Does that mean you'd be willing to be on the show?

[@KellanJames]

Matt McKeever Mayyyyybe!

[@abdullahrubiyath]

Market is slowing down in 2018. Enjoy the ride while it lasts :)

[@SikderDiamond]

Does Cassidy still in Real Estate Business?

[@propellerpropertygroup]

Portfolio porn lol love it. Matt and Cassidy - you guys are crushing it! Love the blend of different structures and strategies!

[@CanadianRealEstateChannel]

Thanks Phil! 100% Agree - they are crushing it! You'll see a bunch more of them on my channel (and their own) once they get back from their 3 month vacation in India!

[@jeffenatrix]

Portfolio porn, I love it. Keep it up!

[@omaxman1]

These kids are definitely playing with fire. It could take one hicup for this portfolio to go down like domino...

[@CanadianRealEstateChannel]

Hi - while I agree that leverage is a double edge sword - I don't think they shared enough information for you to determine one hicup could crash their portfolio. Can you define what a hicup looks like? I know I've had a lot of people say similar things to me, but it would take a greater than 20% price correction before I'd feel any real pain, and it would take a 30% reduction in rent prices before I'd be in trouble in regards to cashflow/breakeven. As well in my market, as well as theirs hasn't seen significant price appreciation compared to major cities like Toronto or Vancouver. Just food for thought.

[@omaxman1]

Matt McKeever I don't suggest that playing with fire will definitely get you burned... But I'll say that chances are there

[@omaxman1]

Matt McKeever one way a hiccup might look like- bank calling notes. I met a guy at my local real estate auction who got screwed up by a bank. ( Of course that will never happen with them). You can't just gamble on how good real estate market is. There are a lot of different factors to consider when you evaluate risk.

[@eringigi7096]

They are so young they have lots of time to recover from any risk that goes wrong.

[@richlaron3895]

How are they buying so many properties with debt and not having an issue with DTI?

[@zackeryplaxton3391]

You couldn’t buy a crack shack for $400,000 in my city 😂

[@CanadianRealEstateChannel]

Haha - start looking in south western ontario! (we may not have appreciation like the big city, but at least we have cashflow!)

[@zackeryplaxton3391]

Matt McKeever I'm not even big city! Live in the Okanagan in BC. Almost every house is a luxury house worth 2 mill...average house price for 2018 is around 750,,000!! It's crazy

[@CanadianRealEstateChannel]

😲- jeez, that is expensive, I’m guessing it’s a city where renting often makes better financial sense than owning

[@zackeryplaxton3391]

Matt McKeever we had the lowest vacancy rate in Canada at 0.2!!! So probably better to rent...if you can find a place

[@techwatch67]

I would love some portfolio Porn Fridays

[@inspirationacademy6898]

Portfolio Porn needs to happen