58: Mastering Real Estate Investing with Patrick Francey, CEO of Real Estate Investment Network (REIN)

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back to the Real Estate Podcast,
guys.

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I'm your mortgage broker host,
Taylor Atkinson.

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And I'm your agent Matt Glenn.

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What's going on today, Taylor?

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What's happening?
Oh, man, I am excited.

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Today's guest, Patrick Franci, is
just one of those guys you don't

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want to stop talking to.

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Yeah, no doubt.

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That is very true.

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Yeah, he's been a hero of mine.

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I listened to his podcast for
years now.

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Got me into real, well, I was kind
of into it, but I would listen to

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him when i started going i
followed his advice listen to his

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podcast worked on the mindset this
is a big deal for us to have him

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on the podcast and i'm super happy
he came on so thank you patrick

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for that i know how much of a
impact he was for you but i loved

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it man you can see like your
energy like you really enjoyed

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connecting with him and he's one
of those guys, he just seems to

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provide an abundant amount of
resource and education to people

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because he genuinely believes in
real estate as an investment and

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wants to help people.

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He runs RAIN, Real Estate

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Investment Network across Canada.

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Yeah, huge, huge network, massive

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following with his own podcast.

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So give him a lesson if you

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haven't.

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But some key takeaways for me,

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like he really touched on just
fundamentals for investing

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throughout Canada, specific
provinces, legislation changes

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that are happening and how to kind
of navigate that.

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Yeah.

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Yeah.

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It was a super enlightening
episode.

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A lot of takeaways.

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It was a good one.

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Yeah.

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Also, we got some good news in the

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market.

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2.8 inflation came down a little

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bit unexpectedly.

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Nice.

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One step closer to lowering yeah
that's looking good for the summer

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outlook for sure yeah the market
seems to be pretty active like

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spring market is definitely here
and i think that inflation rate

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will help the interest rate come
down and yeah so we'll definitely

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see a bit of a flurry happening i
think in the next little while the

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market does seem to come back but
kind of in fits and starts like

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it's interesting how's working
like it's coming back but like i

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think it's all the way and then
like it kind of backs off a bit

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and then yeah it's coming it's
just a little good it seems pretty

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right now yeah i'd say that for
sure yeah obviously we're just

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talking about colonna but colonna
real estate podcast represent yeah

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yeah i guess we'll shed some light
throughout the nation it focus on

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colonna quite a bit too, though.

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He's good.

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Yeah, he Yeah, also this episode,
along with every other episode, is

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sponsored by Century 21 Assurance
Realty.

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Whether you're a buyer or a
seller, Century 21 is probably the

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brokerage to call.

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And if you're an agent looking to

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make a change, fire up your
business, have a little help, call

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Century 21.

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Go have a meeting with Max.

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Have your profile made, business
plan.

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Honestly, it could be a game
changer for you in this changing

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market.

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So I believe in it and you should

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too.

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Enjoy the show, Patrick Franci.

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Thanks for joining happy to be
here, guys.

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Looking forward to the
conversation.

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Yeah, very much so.

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We were talking off air, but I've

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been listening to your podcast
since 2017.

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A little bit of a starstruck
situation going on here.

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I'm that old guy, right?
No way, No way, you're that wise

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guy.

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guy.

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Am I an OG?
Am I officially an OG?

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I don't know.

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Is that the right term?

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By life, you definitely are.

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Okay, well, yeah, I am to most.

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I'm rarely the youngest guy or one
of the younger guys in the room.

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I turned 65 in July this past
year, so that's getting up there.

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65 is 65 is the new phone.

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I was listening to one of your

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shows this morning and you said
that you were a recent grandfather

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and I was like, that is awesome.

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That is a pretty cool experience.

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Yeah.

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You and I are both recent fathers.

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So that's kind of a...

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Oh, congrats.

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Yeah.

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Well, how we like to kind of start

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our show just for you to connect
to our listener is what's your

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perfect Friday look like in terms
of work, productivity, what gets

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you out of bed, and then kind of
leading into the weekend for a bit

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of My journey as an entrepreneur
and as a business owner, real

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estate investor, all the things
that I've done in my life, you

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know, I've been a business owner
for over 40 years and an

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entrepreneur in that regard.

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So, you know, certainly one of the

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things that my journey and, you
know, my own way of operating is,

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you know, coming to a place where
I've come to understand what my

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purpose is, you know, what it is
for me in terms of calling, what

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lights me up and why do I get out
of bed?

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You know, and it took a long time
actually, surprisingly, to get

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there in reflection.

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But ultimately, you know, I have a

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tagline that I've used for many
years, which is to be my greatest

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self and to live my best life.

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And then as a coach and as

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somebody that's supporting other
young entrepreneurs, I say that,

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you know, here's how I operate.

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Be your greatest self, live your

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best life.

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And so when I'm getting out of bed

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in the morning, when I'm doing a
segment like this, when I'm on

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stage with the Real Estate
Investment Network, whatever I do,

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I'm always coming from that place
is how do I support others in

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being their greatest self and
living their best life?

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So for me, that's why I get out of
bed in the morning.

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I'm blessed over the years to have
developed my business, my team.

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So when I'm working with my team,
that's how I'm thinking about it.

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How do I open doors of opportunity
for my team to be the best they

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can be within the business that
serves them, that serves the

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business, that serves our clients?
Not necessarily in that order, but

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ultimately ultimately that's where
I come from.

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So, you know, at this point in my
life, I've trained all my life.

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So Friday for me is, you know,
kind of a daily routine where at

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some point I train, I do a
workout, whatever that might look

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like.

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I don't lift heavy weights, but I

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do lift weights.

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I'm these days more into wellness

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than fitness.

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And although I'm quite fit, I'm

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not running half marathons
anymore, which is something that I

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used to do.

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And so on Fridays, I always try

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and shape my day, whether it's
Friday or Monday, doesn't matter,

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so that it serves me in terms of
what I want to do and how I want

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to show up.

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Now, it doesn't always go that

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way, but that's where I start
from.

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So Fridays for me is I connect
with the team as a group because I

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have an international team.

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We do that virtually and lots of

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fun.

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We gamify it.

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How was your week?
What was your wins?

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If you haven't read the book, The
Gap and the Gain, you would

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understand the reference that I
make.

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What was your win?
What was your gain this week?

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We have a tendency to focus on our
gaps.

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So Benjamin Hardy and Dan Sullivan
wrote a book called The Gap and

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the Gain, recommended reading.

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And so with the team on Friday, we

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all look forward to that.

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You know, it's like joke of the

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week.

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What was your win?

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Was there any sticky spots you had
to get over?

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What was your challenge?
That kind of stuff.

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So that's a little bit of a
Friday.

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And I generally end my day early.

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But I also work from a home

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office.

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So I'm pretty flexed that way.

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What is business?
You have multiple businesses.

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Can you kind of tell us a little
bit that?

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Yeah, you bet.

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So there's a couple of things back

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to purpose statement.

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So back in about what year was it?

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Gosh, 2000, I guess it was, I
started investing in real estate.

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And in that journey of investing
in real estate, I came across the

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real estate investment And over
network.

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the first few years of being part
in real I came estate, across the

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Real Estate Investment Network,
and over the first few years of

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being part of that community, I
happened to get to know Don R.

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Campbell, who was one of the
originating founders of the Real

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Estate Investment Network, and his
wife, Connie, and my wife,

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Stephanie, and I got to know them.

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We became friends, and in 2007, we

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were on vacation together in St.

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Lu Lucia I had just come off a

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project and was done now my retail
business which is my other

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business that's just over 40 years
old in the sporting goods industry

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called Pro Skate in Edmonton is a
boutique shop and I had kind of

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thrown away the keys to that store
and stores at the time back in

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2005.

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So in other words, I became an

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absentee owner, if you will.

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I owned the business.

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I had the team.

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I worked on the business, not in

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the business, all of those kinds
of things.

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And so I took on a project late
2005, which was within the

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industry, but it was a technology,
if you will.

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It was a heated skate blade called
Thermablade.

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And we've done some really cool
stuff.

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And long story short, I exited
that project in 2007.

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I'm on vacation with Don and
Connie and my wife, Stephanie, and

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I'm kicking back.

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And Don says, well, so what are

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you going to do now?
And I said, I don't know.

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You know, it's like, I don't have
to go back to the store.

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And it's not Lifestyles of the
Rich and Famous, but hey, listen,

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I could live like this for a long
time, which I didn't want to do,

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but it was an option for me.

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And he said, well, have you ever

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considered, you know, leaving
Alberta because my businesses were

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in Edmonton and moving to British
Columbia?

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And I said, yeah, we've actually
talked about it.

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It was one of my wife's goals to
live in British Columbia, have a

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view of the ocean and the
mountains, and so on and so forth.

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So long story short, I came and
joined Don on his team within the

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Real Estate Investment Network
here in British Columbia, which

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was the base of the business.

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And then in 2011, I liked the

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business so much, I went to of
buying the business.

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So I bought the business from Don
and here I am today.

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Amazing.

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That was that part of the story.

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My wife and I do a couple of
different coaching programs.

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We love small group coaching, you
know, a dozen people.

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I have a men's group of about a
dozen called Shift Men's and then

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another coaching program called
Think Tank, which we just finished

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one timing of this recording in
Calgary and really cool personal

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professional development, business
development kind of things.

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And I'm just bringing, you know,
many years of experience, many

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years of mistakes, lots of
understanding of personal

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professional development.

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So we have that business.

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My wife owns a business.

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So yeah, we've got different

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things going on, is what I like to
say.

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But we love what we do.

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So it doesn't feel like work,

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actually.

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And your wife, I think I heard

246
00:08:22,993 --> 00:08:24,359
this in your podcast, she was an
Olympic mindset coach.

247
00:08:24,359 --> 00:08:27,758
So you would call her an Olympic
and world-class mental performance

248
00:08:27,658 --> 00:08:27,714
coach.

249
00:08:27,714 --> 00:08:29,496
So she has about 25 years in what

250
00:08:29,496 --> 00:08:31,906
started out to be the development
of hockey players.

251
00:08:31,906 --> 00:08:36,615
So she was a, what would refer to
back then as power skating coach.

252
00:08:36,615 --> 00:08:38,019
And so she understands
biomechanics.

253
00:08:38,019 --> 00:08:41,580
She has a figure skating
background that she then turned

254
00:08:41,568 --> 00:08:42,091
into hockey.

255
00:08:41,991 --> 00:08:43,260
Long story short, you know, she's

256
00:08:43,260 --> 00:08:46,854
been wearing hockey skates for 35
years and ended up being the first

257
00:08:46,854 --> 00:08:48,991
female paid NHL skating coach.

258
00:08:48,991 --> 00:08:51,167
So she worked with the Oilers for

259
00:08:51,267 --> 00:08:55,408
about nine years, and then she
went on to work with St. Louis

260
00:08:55,408 --> 00:08:55,641
Blues.

261
00:08:55,641 --> 00:08:56,514
The interesting story about that

262
00:08:56,514 --> 00:08:59,926
is what she came to realize is
that, you know, if you're in the

263
00:08:59,826 --> 00:09:01,439
NHL, you're playing at the top of
your what game.

264
00:09:01,439 --> 00:09:05,152
she came to realize is that, you
know, if you're in the NHL, you're

265
00:09:05,152 --> 00:09:08,451
playing at the top of your game.

266
00:09:08,451 --> 00:09:11,011
I mean, you've got to be very,

267
00:09:11,011 --> 00:09:14,120
very good to play in the NHL.

268
00:09:14,120 --> 00:09:14,996
Even fourth line players are

269
00:09:14,996 --> 00:09:15,622
freaking awesome.

270
00:09:15,622 --> 00:09:17,124
But ultimately, you know, how much

271
00:09:17,124 --> 00:09:21,694
skating can you help them improve?
They're already at that level.

272
00:09:21,694 --> 00:09:25,981
So the short of it is, is that
there is technical things that she

273
00:09:25,881 --> 00:09:27,780
helped them a lot with.

274
00:09:27,780 --> 00:09:29,137
But what she started to understand

275
00:09:29,137 --> 00:09:33,184
that as she got to know the
players, and just because of her

276
00:09:33,184 --> 00:09:36,390
nature you know they were sharing
different parts of what was going

277
00:09:36,390 --> 00:09:40,560
on in their life and as she held
space for that as she gave

278
00:09:40,560 --> 00:09:42,947
guidance she started to see that
when they shed some of the weight

279
00:09:43,047 --> 00:09:44,412
they were carrying personally
professionally whatever was going

280
00:09:44,412 --> 00:09:45,633
on with the team etc their skating
improved actually quite

281
00:09:45,513 --> 00:09:47,064
dramatically and when she got her
job with the Whitehurst back then,

282
00:09:47,064 --> 00:09:48,553
Glenn Sather, I don't know, he was
coach and general manager, you

283
00:09:48,434 --> 00:09:50,693
know, as she was thanking him for
the job, he said, make no mistake,

284
00:09:50,793 --> 00:09:52,629
you don't have a job.

285
00:09:52,529 --> 00:09:53,997
The players decide if you're going

286
00:09:53,997 --> 00:09:55,686
to be here to stay.

287
00:09:55,686 --> 00:09:56,855
I don't make that decision.

288
00:09:56,855 --> 00:09:59,309
So if you don't earn a position on
the roster, you're gone.

289
00:09:59,309 --> 00:10:01,443
And nine years later, management
changed and she moved on.

290
00:10:01,443 --> 00:10:04,329
And then St. Louis Blues picked
her up, same kind of scenario.

291
00:10:04,329 --> 00:10:07,159
The point of that kind of
background is to understand that

292
00:10:07,159 --> 00:10:10,010
what she realized at that level,
that elite level of athlete had

293
00:10:10,010 --> 00:10:12,233
very little to do with the
technicalities of their skating.

294
00:10:12,233 --> 00:10:15,446
And yes, she could help some
fourth line defensemen who aren't

295
00:10:15,446 --> 00:10:19,460
known for the skating to improve
their skating, but ultimately it

296
00:10:19,460 --> 00:10:20,354
was a mental game.

297
00:10:20,354 --> 00:10:21,600
That evolved into other

298
00:10:21,600 --> 00:10:24,753
opportunities in a different
skating world within the figure

299
00:10:24,753 --> 00:10:25,164
skating world.

300
00:10:25,164 --> 00:10:27,869
And now she works with, I don't

301
00:10:27,769 --> 00:10:31,357
know, 14, 16 teams from around the
world in the sport of ice dance

302
00:10:31,357 --> 00:10:33,943
and figure skating and literally
travels the world and works with

303
00:10:34,043 --> 00:10:37,840
them within a business that she's
part owner in Montreal called IAM,

304
00:10:37,840 --> 00:10:38,815
Ice Academy of Montreal.

305
00:10:38,815 --> 00:10:40,323
So they are a world-class training

306
00:10:40,323 --> 00:10:44,348
center and she does the mental
performance of it, helps kids get

307
00:10:44,248 --> 00:10:48,510
out of their own way so they
perform better.

308
00:10:48,510 --> 00:10:50,890
So that's the mental and
performance game that she's played

309
00:10:50,890 --> 00:10:51,830
for many years.

310
00:10:51,730 --> 00:10:53,819
She's not a psychologist, by the

311
00:10:53,819 --> 00:10:53,969
way.

312
00:10:53,969 --> 00:10:55,768
She likes to make sure that

313
00:10:55,768 --> 00:10:58,840
everybody understands that that's
not the game she plays.

314
00:10:58,840 --> 00:11:01,382
There are psychologists and all
the rest of that.

315
00:11:01,382 --> 00:11:03,288
That's not the game that she
plays.

316
00:11:03,288 --> 00:11:06,750
She works with people to just help
shed the weight they carry

317
00:11:06,750 --> 00:11:06,918
sometimes.

318
00:11:06,918 --> 00:11:08,761
And I'm probably not doing a great

319
00:11:08,761 --> 00:11:11,433
service of describing that, but
that's kind of it.

320
00:11:11,533 --> 00:11:12,594
kind of it.

321
00:11:12,594 --> 00:11:15,060
Such a powerful thing to have,

322
00:11:15,060 --> 00:11:17,627
right?
wife played on the olympic soccer

323
00:11:17,727 --> 00:11:21,401
team for a couple of the olympics
and like they had you know the

324
00:11:21,401 --> 00:11:25,168
same support on their staff and
like gave all the credit to them

325
00:11:25,168 --> 00:11:28,863
and i was watching the netflix
documentary the pga one the second

326
00:11:28,863 --> 00:11:33,374
season that's come out and ricky
fowler his coach like they stopped

327
00:11:33,374 --> 00:11:36,382
working together for a few years
because he retired and ricky

328
00:11:36,382 --> 00:11:38,166
fowler like had some pretty bad
years.

329
00:11:38,266 --> 00:11:39,300
So they got back together.

330
00:11:39,300 --> 00:11:40,498
And the only thing his coach

331
00:11:40,498 --> 00:11:42,451
wanted to focus on was his
confidence.

332
00:11:42,451 --> 00:11:45,726
He's like, I just want to make him
feel good about his swing.

333
00:11:45,826 --> 00:11:48,101
You know, like he just needs to
feel positive about it.

334
00:11:48,101 --> 00:11:52,067
But then I guess translating that
into real estate for you guys, is

335
00:11:52,067 --> 00:11:53,945
that what you do in the real
estate investment network?

336
00:11:53,945 --> 00:11:56,904
Like, is that one of the main
things you guys focus on is

337
00:11:56,904 --> 00:11:58,780
people's mindset?
You know, it's interesting that

338
00:11:58,780 --> 00:11:59,869
you asked that question.

339
00:11:59,869 --> 00:12:01,760
You know, people come to the real

340
00:12:01,760 --> 00:12:02,620
estate investment network because
we're education based, we're

341
00:12:03,000 --> 00:12:04,255
research based, we're data based.

342
00:12:04,355 --> 00:12:05,885
So we don't sell real estate.

343
00:12:05,885 --> 00:12:07,893
We provide education, research,
how to's, strategies, those kinds

344
00:12:07,893 --> 00:12:08,583
of things.

345
00:12:08,583 --> 00:12:09,900
And so really we support people

346
00:12:09,900 --> 00:12:12,880
in, you know, not only how to
choose, but how to understand the

347
00:12:12,880 --> 00:12:15,649
economics that drive real estate,
and understanding that as real

348
00:12:15,649 --> 00:12:17,795
estate investors, so we speak
primarily to investors.

349
00:12:17,795 --> 00:12:21,313
And by the way, we look at first
time homebuyers as investors,

350
00:12:21,313 --> 00:12:23,331
because most first time
homebuyers, as you know, you know,

351
00:12:23,331 --> 00:12:25,851
you hear the phrase that this is a
starter home.

352
00:12:25,851 --> 00:12:28,114
Okay, well, that's an interesting
phrase to use because it implies

353
00:12:28,114 --> 00:12:29,927
immediately that you're going to
be buying another home.

354
00:12:29,811 --> 00:12:30,472
This is your place to start.

355
00:12:30,472 --> 00:12:30,819
So, okay.

356
00:12:30,766 --> 00:12:33,216
Given that you're starting there,
what do you want to make sure?

357
00:12:33,216 --> 00:12:37,085
You want to make sure that you get
the best return on investment of

358
00:12:37,085 --> 00:12:40,098
that starter home so that when you
go to your next home, you're

359
00:12:40,098 --> 00:12:42,504
actually being able to get
appreciation and gain the equity

360
00:12:42,504 --> 00:12:45,989
and do all the things that you
need to do to buy the next phase

361
00:12:45,989 --> 00:12:47,277
of your home, whatever that might
be.

362
00:12:47,238 --> 00:12:49,344
So that's how we look at it.

363
00:12:49,344 --> 00:12:51,902
I'm just giving you a little bit

364
00:12:51,902 --> 00:12:52,600
of context there.

365
00:12:52,600 --> 00:12:56,456
So RAINN is a very much was always

366
00:12:56,456 --> 00:12:59,379
built in a how to.

367
00:12:59,379 --> 00:13:00,793
And within the community, our

368
00:13:00,793 --> 00:13:03,049
membership has transacted $5.4
billion worth of real estate.

369
00:13:03,049 --> 00:13:06,585
And so that's volunteered, by the
way, based on awards that we give.

370
00:13:06,585 --> 00:13:09,980
So we know that number is even
actually quite low.

371
00:13:09,980 --> 00:13:14,176
But the point of it is that what
we came to realize over many years

372
00:13:14,176 --> 00:13:18,881
and how I operate and what I've
noticed, one of our foundational

373
00:13:18,981 --> 00:13:21,452
things is treat your real estate
investing like a business.

374
00:13:21,452 --> 00:13:25,652
So we have people join and they
get into the how to's and the

375
00:13:25,652 --> 00:13:28,156
strategies and all the rest of it.

376
00:13:28,156 --> 00:13:29,780
And we teach this education.

377
00:13:29,780 --> 00:13:30,525
It's a system.

378
00:13:30,525 --> 00:13:31,350
It's a process.

379
00:13:31,350 --> 00:13:33,083
It's a rinse and repeat.

380
00:13:33,183 --> 00:13:34,721
We do this all the time, every

381
00:13:34,721 --> 00:13:35,048
day.

382
00:13:35,048 --> 00:13:36,190
And we're seeing some investors

383
00:13:36,190 --> 00:13:39,668
that are like literally putting
what we teach them into action and

384
00:13:39,668 --> 00:13:40,900
growing great portfolios, being
very successful.

385
00:13:40,900 --> 00:13:44,289
We see the other side, which is
those individuals who don't follow

386
00:13:44,289 --> 00:13:47,637
the system, don't follow the
process, pet coroners and end up

387
00:13:47,637 --> 00:13:48,745
getting their asses handed to
them.

388
00:13:48,745 --> 00:13:50,000
That's another side of it.

389
00:13:50,000 --> 00:13:51,228
But then we see individuals and

390
00:13:51,228 --> 00:13:53,339
we're going, well, how is it
everybody's getting the same

391
00:13:53,339 --> 00:13:54,840
access to information, same
education, yet some crush it, hit

392
00:13:55,320 --> 00:13:56,751
their goals, execute while others
simply don't.

393
00:13:56,751 --> 00:13:59,818
And then we realize that that
really is the mindset

394
00:13:59,818 --> 00:14:00,091
conversation.

395
00:14:00,191 --> 00:14:03,727
It is literally where people get

396
00:14:03,727 --> 00:14:05,364
in their own way.

397
00:14:05,464 --> 00:14:08,130
And so just to expand on that one

398
00:14:08,025 --> 00:14:09,788
kind of next layer is that
ultimately, we came to understand

399
00:14:09,783 --> 00:14:12,474
that if we can help people get
through those blocks, those

400
00:14:12,474 --> 00:14:14,888
stories they tell themselves, the
belief systems that they might

401
00:14:14,888 --> 00:14:18,026
have, the team that they have, not
understanding what their values

402
00:14:17,926 --> 00:14:21,008
are, not what their value is, but
what their values are.

403
00:14:21,008 --> 00:14:23,056
And then it gets really complex,
right?

404
00:14:23,056 --> 00:14:25,704
So with small business owners,
with accomplished real estate

405
00:14:25,704 --> 00:14:27,644
investors, with those who are
really committed to building a

406
00:14:27,644 --> 00:14:30,021
portfolio, we see that there is a
mindset aspect of it that's very,

407
00:14:30,121 --> 00:14:30,990
very helpful.

408
00:14:30,990 --> 00:14:32,445
So we do provide that.

409
00:14:32,445 --> 00:14:36,651
That's actually a lot of what we
do in terms of the personal

410
00:14:36,651 --> 00:14:39,401
professional development coaching
that we do and small business

411
00:14:39,401 --> 00:14:40,632
coaching that we do.

412
00:14:40,632 --> 00:14:43,388
And even with the men's group that

413
00:14:43,388 --> 00:14:45,620
I have, the oldest guy is 47 years
old.

414
00:14:45,620 --> 00:14:49,743
They're all really great men, but,
you know, they get in their own

415
00:14:49,743 --> 00:14:49,962
way.

416
00:14:49,962 --> 00:14:51,935
They struggle with what's going on

417
00:14:51,935 --> 00:14:54,139
with family and understanding
their relationships and how do I

418
00:14:54,139 --> 00:14:57,911
handle my kids and still build a
business and all of these things.

419
00:14:57,911 --> 00:15:03,497
And a lot of it is just mental and
it's perspective, it's perception,

420
00:15:03,497 --> 00:15:09,189
it's busting through some of your
belief systems and the operating

421
00:15:09,189 --> 00:15:14,291
system that you have so that's all
part of what we do yes so so what

422
00:15:14,291 --> 00:15:17,662
about like obviously right now the
real estate investing climate is a

423
00:15:17,662 --> 00:15:20,927
little crazy high interest rates
government intervention like real

424
00:15:20,927 --> 00:15:23,787
estate investors persevering
through this or like what are you

425
00:15:23,787 --> 00:15:27,864
hearing through your network like
how are people handling the well

426
00:15:27,864 --> 00:15:31,840
that's a great question and i say
this is that the experienced real

427
00:15:31,840 --> 00:15:34,818
estate investors like the savvy
guys that have taken the time to

428
00:15:34,818 --> 00:15:37,020
educate themselves and learn,
they've established a degree of

429
00:15:37,120 --> 00:15:38,707
confidence because they've done
some deals.

430
00:15:38,707 --> 00:15:43,210
Now, those guys look at a market
like this and they're like,

431
00:15:43,210 --> 00:15:45,938
opportunity, right?
Because we know what happens in

432
00:15:45,938 --> 00:15:49,987
these markets is as few deals that
seem to show up because of high

433
00:15:49,887 --> 00:15:52,781
interest rates, lack of inventory,
and all the other excuses that are

434
00:15:52,781 --> 00:15:53,863
out there, underlying that,
there's some chaos.

435
00:15:53,863 --> 00:15:56,844
There's some people that are
having challenges.

436
00:15:56,844 --> 00:15:58,335
There's some people that bought
wrong.

437
00:15:58,335 --> 00:16:00,227
There's some people that have lost
jobs, got transferred, got

438
00:16:00,227 --> 00:16:01,916
divorced, had a death in the
family.

439
00:16:01,916 --> 00:16:05,820
What that creates for somebody
who's a little more, I guess,

440
00:16:06,180 --> 00:16:08,396
committed or sophisticated or
really wants to get a deal done,

441
00:16:08,396 --> 00:16:09,531
sees what it really is.

442
00:16:09,531 --> 00:16:12,177
They want to get deals done.

443
00:16:12,177 --> 00:16:13,981
So yes, they're looking for and
they're actually creating

444
00:16:13,981 --> 00:16:14,328
opportunities.

445
00:16:14,328 --> 00:16:16,340
And they do that by solving other

446
00:16:16,420 --> 00:16:16,699
people's problems.

447
00:16:16,699 --> 00:16:18,516
So that isn't to go in and say,

448
00:16:18,616 --> 00:16:20,682
take advantage of somebody.

449
00:16:20,682 --> 00:16:22,649
That's not at all the thought

450
00:16:22,649 --> 00:16:23,081
process.

451
00:16:23,081 --> 00:16:25,059
But not at you've got a problem,

452
00:16:25,059 --> 00:16:26,913
and that problem is I'm divorced,
I got transferred, I can't afford

453
00:16:26,913 --> 00:16:30,778
these payments, whatever the story
is, if I can sit down with you as

454
00:16:30,778 --> 00:16:35,651
an investor, put my investor hat
on and go, how can we solve this

455
00:16:35,651 --> 00:16:37,503
problem together so that you get
from underneath the weight of what

456
00:16:37,450 --> 00:16:40,149
you're carrying financially,
perhaps, and I can actually see an

457
00:16:40,149 --> 00:16:44,100
opportunity to profit and make
money and get paid for what I do,

458
00:16:44,100 --> 00:16:45,660
then we got a deal.

459
00:16:45,660 --> 00:16:47,849
And so when you approach it that

460
00:16:47,849 --> 00:16:49,600
way, it becomes really win-win.

461
00:16:49,600 --> 00:16:51,449
And the reason I'm cautious around

462
00:16:51,441 --> 00:16:53,556
that is so many inexperienced or
unsophisticated investors going,

463
00:16:53,556 --> 00:16:56,028
oh, you're just taking advantage
of people.

464
00:16:56,028 --> 00:16:58,807
No, that's not true at all.

465
00:16:58,807 --> 00:17:00,603
Those individuals have a problem

466
00:17:00,603 --> 00:17:03,180
and they're desperate to have
somebody help them solve the

467
00:17:03,180 --> 00:17:03,307
problem.

468
00:17:03,307 --> 00:17:05,460
And investors are willing to take

469
00:17:05,460 --> 00:17:05,815
that risk.

470
00:17:05,815 --> 00:17:07,296
They understand how to do the

471
00:17:07,396 --> 00:17:07,751
math.

472
00:17:07,651 --> 00:17:09,646
They understand what the economics

473
00:17:09,546 --> 00:17:09,960
are.

474
00:17:09,960 --> 00:17:11,525
So they take on that risk.

475
00:17:11,425 --> 00:17:12,589
And so it creates win-win
situations.

476
00:17:12,689 --> 00:17:15,638
So I hope that answers your
question that ultimately, even in

477
00:17:15,539 --> 00:17:18,048
this market, first-time homebuyers
are going to get shut down many

478
00:17:18,048 --> 00:17:21,369
and less sophisticated investors
are going, no, this is stupid.

479
00:17:21,270 --> 00:17:23,878
The rates are too high.

480
00:17:23,878 --> 00:17:25,837
And so there's a lot of that.

481
00:17:25,837 --> 00:17:28,979
You have to be creative in this
market is my point.

482
00:17:28,879 --> 00:17:33,397
And if you want to kind of go down
one other path, I suggest often,

483
00:17:33,397 --> 00:17:36,868
and it's one of the things that
I've said many times over 20

484
00:17:36,868 --> 00:17:40,223
years, is there's no bad times to
invest in real estate.

485
00:17:40,223 --> 00:17:42,403
I don't care what the economy is.

486
00:17:42,403 --> 00:17:43,620
Adjust your strategy to

487
00:17:43,620 --> 00:17:44,750
accommodate what's happening in
real estate.

488
00:17:44,750 --> 00:17:47,567
I don't care what the economy
Adjust is.

489
00:17:47,467 --> 00:17:49,434
your strategy to accommodate
what's happening in the economy.

490
00:17:49,434 --> 00:17:53,485
So the point is, is that in many
areas, buy and hold of a duplex

491
00:17:53,485 --> 00:17:53,838
doesn't work.

492
00:17:53,838 --> 00:17:55,531
The math doesn't pencil.

493
00:17:55,531 --> 00:17:58,016
And if you can find a deal, great.

494
00:17:58,016 --> 00:18:00,972
But if you're in British Columbia,

495
00:18:00,872 --> 00:18:04,068
duplex probably doesn't cut it
these days, you know, even a

496
00:18:04,068 --> 00:18:04,390
triplex.

497
00:18:04,390 --> 00:18:06,480
So you have to look and say, well,

498
00:18:06,800 --> 00:18:10,159
how the hell do I park capital?
Because real estate is a store of

499
00:18:10,059 --> 00:18:10,204
value.

500
00:18:10,204 --> 00:18:13,309
And if we just hold it in that

501
00:18:13,309 --> 00:18:18,466
space and say, how do I put my
capital to work in a store of

502
00:18:18,466 --> 00:18:21,391
value that I am going to see
hopefully some cashflow, but some

503
00:18:21,391 --> 00:18:23,782
appreciation, I have a long-term
view of the world.

504
00:18:23,782 --> 00:18:26,889
Well, you actually shift the
conversation and the seeing more

505
00:18:26,889 --> 00:18:28,607
investment opportunities outside
of British Columbia then?

506
00:18:28,607 --> 00:18:31,226
Like, is that mostly where the
network is going?

507
00:18:31,226 --> 00:18:33,981
I'm just seeing in British
Columbia, there's a lot of like

508
00:18:33,881 --> 00:18:36,144
bubble economies in terms of, you
know, Kelowna, Vancouver.

509
00:18:36,144 --> 00:18:39,244
I'm sure even in Vancouver,
there's, you know, Fraser Valley

510
00:18:39,244 --> 00:18:40,600
or Vancouver Island.

511
00:18:40,600 --> 00:18:41,939
Are your investors starting to

512
00:18:41,939 --> 00:18:44,949
search out of their normal
territory to find better cash

513
00:18:44,949 --> 00:18:46,444
flowing properties?
Like, is that their way around

514
00:18:46,444 --> 00:18:48,300
some of the difficulties?
Let me you some insights into

515
00:18:48,360 --> 00:18:48,522
that.

516
00:18:48,522 --> 00:18:49,714
So number one, RAINN is an

517
00:18:49,714 --> 00:18:50,580
organization, we're national in
scope.

518
00:18:50,900 --> 00:18:52,353
So we have investors from across
the country.

519
00:18:52,353 --> 00:18:55,477
Having said that, again, some of
the fundamentals that we teach and

520
00:18:55,477 --> 00:18:59,827
that we share with people is that
our job as investors is to make

521
00:18:59,827 --> 00:19:02,983
our money work harder for us than
we work for our money.

522
00:19:02,983 --> 00:19:05,395
Our job as investors is to look
into the future and say, where is

523
00:19:05,371 --> 00:19:06,019
real estate going?
Now, this is not a dig at

524
00:19:06,033 --> 00:19:08,691
realtors, but most realtors who
aren't investor focused, you're

525
00:19:08,791 --> 00:19:10,411
always looking at historical data.

526
00:19:10,311 --> 00:19:11,700
You're always looking at what's

527
00:19:12,060 --> 00:19:12,555
happening today.

528
00:19:12,555 --> 00:19:13,050
Got it.

529
00:19:13,050 --> 00:19:15,774
It's not that that information is
not valuable.

530
00:19:15,874 --> 00:19:20,393
Well, let's compare it to what it
was a year ago in August and all

531
00:19:20,493 --> 00:19:23,006
the things that you do, historical
data.

532
00:19:23,006 --> 00:19:31,522
Well, that's kind of like trying
to drive forward while looking

533
00:19:31,500 --> 00:19:32,401
through your rear view mirror.

534
00:19:32,301 --> 00:19:32,885
It's a tough go, right?

535
00:19:32,880 --> 00:19:34,259
And it doesn't really serve you.

536
00:19:34,259 --> 00:19:35,104
Now, from our perspective as an

537
00:19:35,104 --> 00:19:36,839
investor, what do we want to do?
We want to look into the future.

538
00:19:36,839 --> 00:19:38,057
And there's some fundamentals,
some economic fundamentals that

539
00:19:38,057 --> 00:19:40,808
give us the indicators of where
real estate is going.

540
00:19:40,808 --> 00:19:45,021
So gross domestic product, when we
know GDP is good, short snapshot

541
00:19:45,021 --> 00:19:50,340
of what GDP is, it is actually an
economic snapshot of the health of

542
00:19:50,340 --> 00:19:53,494
an economy, whether it be Canadian
overall as a country.

543
00:19:53,494 --> 00:19:57,270
But when we have to look at real
estate, we're going, it's like

544
00:19:57,170 --> 00:19:57,879
average prices in Canada.

545
00:19:57,879 --> 00:19:59,024
Who gives a shit?

546
00:19:59,024 --> 00:20:00,916
That's like saying, what's the
average temperature?

547
00:20:00,816 --> 00:20:01,181
It's meaningless.

548
00:20:01,181 --> 00:20:02,589
What's the average price in

549
00:20:02,689 --> 00:20:03,580
Vancouver versus Kelowna?
Who cares?

550
00:20:03,580 --> 00:20:05,195
They're four hours apart.

551
00:20:05,195 --> 00:20:07,652
The reality of it is a different

552
00:20:07,652 --> 00:20:08,073
culture.

553
00:20:08,073 --> 00:20:10,320
It's a different climate, it's a

554
00:20:10,320 --> 00:20:11,134
different everything.

555
00:20:11,034 --> 00:20:11,927
And is it an indication?

556
00:20:11,927 --> 00:20:12,195
Sure, maybe.

557
00:20:12,195 --> 00:20:13,980
But the point is that every region

558
00:20:13,980 --> 00:20:14,956
has an economic snapshot.

559
00:20:15,056 --> 00:20:16,736
So we look at Kelowna, for

560
00:20:16,736 --> 00:20:18,630
example, I would say, well, what's
your GDP?

561
00:20:18,630 --> 00:20:21,046
What's your population growth?
What's your job growth?

562
00:20:21,046 --> 00:20:22,707
Because people with jobs spend
money.

563
00:20:22,707 --> 00:20:24,011
They have a place to live.

564
00:20:24,011 --> 00:20:25,842
If Kelowna's got a lot of jobs,

565
00:20:25,842 --> 00:20:27,536
Kelowna's a great place to live.

566
00:20:27,536 --> 00:20:29,383
People move into the area, they

567
00:20:29,383 --> 00:20:31,207
get work, and then what do they
do?

568
00:20:31,207 --> 00:20:32,517
They ultimately have to rent.

569
00:20:32,517 --> 00:20:34,380
And very few buy given the price

570
00:20:34,380 --> 00:20:34,656
points.

571
00:20:34,656 --> 00:20:36,451
And so these are things that are

572
00:20:36,451 --> 00:20:40,698
happening in behind the scenes of
what drives an economy and what

573
00:20:40,698 --> 00:20:41,760
drives real estate.

574
00:20:41,760 --> 00:20:44,221
So as people move into a region,

575
00:20:44,221 --> 00:20:50,708
what do they do?
They need a place to rent.

576
00:20:50,708 --> 00:20:51,293
Supply gets short.

577
00:20:51,293 --> 00:20:51,782
Demand remains high.

578
00:20:51,782 --> 00:20:52,121
Rents go up.

579
00:20:52,059 --> 00:20:52,510
Eventually, those people who rent

580
00:20:52,510 --> 00:20:52,787
work hard.

581
00:20:52,787 --> 00:20:53,549
They hope to buy a home.

582
00:20:53,649 --> 00:20:54,554
That drives house prices up.

583
00:20:54,554 --> 00:20:56,439
So there is a proven what we call

584
00:20:56,439 --> 00:20:57,547
a success formula.

585
00:20:57,547 --> 00:20:59,640
And if I'm looking at a region, so

586
00:20:59,720 --> 00:21:03,697
if I look at Kelowna again, first
thing I'm going to say, how are

587
00:21:03,597 --> 00:21:04,805
they doing economically?
What's the job growth there?

588
00:21:04,805 --> 00:21:07,136
What's driving jobs?
Oh, and I'm saying this is

589
00:21:07,136 --> 00:21:12,260
happening in Kelowna, but I'm
saying if all of a sudden you see

590
00:21:12,260 --> 00:21:13,908
unemployment go to 8%, I'd be
worried.

591
00:21:13,908 --> 00:21:15,951
Because you know what's going to
happen next.

592
00:21:15,951 --> 00:21:18,349
People are going to leave Kelowna.

593
00:21:18,449 --> 00:21:18,687
Why?

594
00:21:18,587 --> 00:21:21,846
Because they got to go someplace
where they can work.

595
00:21:21,846 --> 00:21:26,581
And so the minute you have people
leaving an area, to go someplace

596
00:21:26,581 --> 00:21:27,762
where they can And so the minute
work.

597
00:21:27,862 --> 00:21:30,773
you have people leaving an area,
then vacancy goes rents up, come

598
00:21:30,773 --> 00:21:30,828
down.

599
00:21:30,828 --> 00:21:32,903
And the next thing you know, house

600
00:21:32,903 --> 00:21:37,162
prices follow because people have
to move because they are now

601
00:21:37,162 --> 00:21:37,762
unemployed.

602
00:21:37,762 --> 00:21:39,639
They can't afford a mortgage.

603
00:21:39,739 --> 00:21:41,208
You see the drivers of those
economies.

604
00:21:41,208 --> 00:21:45,504
Now, the minute you see GDP growth
fall in an area, it's not like

605
00:21:45,504 --> 00:21:46,425
everybody abandoned ship.

606
00:21:46,525 --> 00:21:48,160
It takes about 18 months.

607
00:21:48,160 --> 00:21:51,763
So as an investor, you say, oh,
GDP is negative, negative,

608
00:21:51,763 --> 00:21:51,963
negative.

609
00:21:51,947 --> 00:21:53,185
Holy cow, we're really into a

610
00:21:53,285 --> 00:21:54,073
recession in this city.

611
00:21:54,057 --> 00:21:57,069
And I'm going to sell now, or I'm

612
00:21:57,069 --> 00:22:01,340
going to lower my rents, or I'm
going to extend my leases.

613
00:22:01,340 --> 00:22:03,175
I'm going to do something to firm
it up.

614
00:22:03,275 --> 00:22:04,570
make sense?
Yes, very much so.

615
00:22:04,570 --> 00:22:07,321
Somewhere like Kelowna has like,
we're the fastest growing city in

616
00:22:07,221 --> 00:22:10,080
Canada, or one of, but we're
running into an issue right now

617
00:22:10,700 --> 00:22:13,665
where we have government
regulation and we have super high

618
00:22:13,665 --> 00:22:17,165
interest rates for the developers
to bill there's been a few

619
00:22:17,165 --> 00:22:20,780
projects that have been put on
hold for now like i don't think

620
00:22:20,780 --> 00:22:23,693
they're canceled but they're
probably gonna be paused for a few

621
00:22:23,693 --> 00:22:29,073
years so like we seem to have a
glut of condos but it doesn't

622
00:22:29,073 --> 00:22:33,633
really make sense when you think
about our population growth so i

623
00:22:33,633 --> 00:22:36,456
don't what are your thoughts about
like a dynamic like you know, it's

624
00:22:36,456 --> 00:22:39,009
interesting right now from a
British Columbia point of view, it

625
00:22:39,009 --> 00:22:41,125
kind of pisses me off to be honest
with you.

626
00:22:41,125 --> 00:22:43,169
I'm going, is this government that
incompetent?

627
00:22:43,169 --> 00:22:46,218
Like it's hard to believe that the
incompetency can be this high.

628
00:22:46,218 --> 00:22:49,161
It can't possibly be, they have to
be doing this on purpose.

629
00:22:49,161 --> 00:22:51,512
Like nobody can be this blind to
what's happening.

630
00:22:51,512 --> 00:22:54,700
So when you consider all of the
things that they've done over the

631
00:22:55,160 --> 00:22:58,253
years, you know, foreign buyers
tax and transfer tax and oh, yeah,

632
00:22:58,253 --> 00:23:01,562
okay, well, if you sell it to your
wife, that's transfer, like, it's

633
00:23:01,562 --> 00:23:04,236
just ridiculous, the tax, tax,
tax, tax, tax, then you have all

634
00:23:04,236 --> 00:23:05,030
of the permitting process and the
ability to get a deal done and

635
00:23:04,875 --> 00:23:12,572
what the cost is associated with,
oh, we finally bought a piece of

636
00:23:12,579 --> 00:23:12,779
land.

637
00:23:12,612 --> 00:23:13,391
Well, now we're only four years

638
00:23:13,224 --> 00:23:14,662
away from being able to build,
given the bureaucracy that we got

639
00:23:14,662 --> 00:23:15,234
to go through.

640
00:23:15,141 --> 00:23:16,526
You know, that's on top of that.

641
00:23:16,526 --> 00:23:20,032
And then recently, it's 20%
flipping tax, which is just the

642
00:23:20,032 --> 00:23:22,383
most asinine thing I've ever seen.

643
00:23:22,383 --> 00:23:23,435
Because ultimately, flippers,

644
00:23:23,435 --> 00:23:25,145
let's just use that term.

645
00:23:25,145 --> 00:23:26,732
Number one, most flippers don't do

646
00:23:26,632 --> 00:23:27,380
it for a living.

647
00:23:27,380 --> 00:23:29,608
Number two, if I'm looking at

648
00:23:29,508 --> 00:23:32,784
flipping, I'm going to add some
nuances to it saying, well, if you

649
00:23:32,784 --> 00:23:35,516
take a piece of crap in East
Vancouver and it's a drug house

650
00:23:35,516 --> 00:23:37,750
and you're going to flip it and
turn it around, as in you're going

651
00:23:37,824 --> 00:23:39,635
to renovate it, bring it up to
speed.

652
00:23:39,635 --> 00:23:42,094
All of a sudden I'm adding
inventory to the fricking market.

653
00:23:42,094 --> 00:23:45,281
Why would I shut that down?
So now, no, you're going to pay

654
00:23:45,281 --> 00:23:47,704
20% on top of the capital gains
that you make.

655
00:23:47,704 --> 00:23:50,724
And you probably worked, you know,
nights from, you know, 8 p.m. to

656
00:23:50,724 --> 00:23:52,797
midnight to try and get this piece
of property done.

657
00:23:52,797 --> 00:23:56,050
So don't even get me started on
that whole Patrick, we just became

658
00:23:56,050 --> 00:23:56,250
best friends.

659
00:23:56,250 --> 00:23:56,400
Yeah.

660
00:23:56,400 --> 00:23:57,550
then the most recent and the most
ridiculous.

661
00:23:57,550 --> 00:23:58,397
Oh, this gets me fired up.

662
00:23:58,397 --> 00:23:59,591
I don't remember her name.

663
00:23:59,572 --> 00:24:00,295
Sonia blah, blah, blah.

664
00:24:00,295 --> 00:24:01,560
I Sonia don't blah, blah, know.

665
00:24:01,560 --> 00:24:01,714
blah.

666
00:24:01,714 --> 00:24:02,584
I don't know.

667
00:24:02,584 --> 00:24:05,758
I I don't don't want want to to
remember remember her her name.

668
00:24:05,758 --> 00:24:06,116
name.

669
00:24:06,116 --> 00:24:07,965
She's with the Green Party, but

670
00:24:07,965 --> 00:24:10,362
she literally is an MP that tabled
a bill for vacancy control.

671
00:24:10,262 --> 00:24:13,047
And I'm going, you've got to be
kidding me.

672
00:24:13,047 --> 00:24:15,337
Tell me what vacancy control is.

673
00:24:15,337 --> 00:24:16,667
So we've got rent controls.

674
00:24:16,667 --> 00:24:20,187
So we know that 2.5% or 2% or
whatever the freaking deal is.

675
00:24:20,187 --> 00:24:23,561
We get a cap there below
inflation, by by the way, like how

676
00:24:23,561 --> 00:24:24,178
dumb is that?
Yeah.

677
00:24:24,178 --> 00:24:24,402
Yeah.

678
00:24:24,402 --> 00:24:26,296
I'll get to why and how ridiculous

679
00:24:26,196 --> 00:24:27,093
this really is.

680
00:24:27,093 --> 00:24:29,168
So now you got me fired up on a

681
00:24:29,168 --> 00:24:29,336
rant.

682
00:24:29,336 --> 00:24:29,560
Okay.

683
00:24:29,560 --> 00:24:31,303
So I asked the right question.

684
00:24:31,303 --> 00:24:33,591
So then the next phase of that is

685
00:24:33,591 --> 00:24:33,960
vacancy control.

686
00:24:34,100 --> 00:24:35,581
Do you guys know what vacancy

687
00:24:35,581 --> 00:24:37,373
control is?
No. Oh yeah.

688
00:24:37,373 --> 00:24:37,918
Surprising.

689
00:24:37,918 --> 00:24:38,308
Isn't it?

690
00:24:38,308 --> 00:24:41,174
I think it's a new thing that they
decided to invent.

691
00:24:41,174 --> 00:24:44,055
So let me tell you what vacancy
control is based on what Sonia or

692
00:24:44,055 --> 00:24:45,387
whatever the hell her name is.

693
00:24:45,487 --> 00:24:47,269
Right now, if you live in Ontario,

694
00:24:47,269 --> 00:24:49,760
you live in Vancouver, you live in
British Columbia, if somebody

695
00:24:49,820 --> 00:24:53,092
moves out of your unit that's been
in there, let's say seven years,

696
00:24:53,092 --> 00:24:58,247
10 years, five years, you then can
go in, update, whatever you want

697
00:24:58,247 --> 00:25:00,860
to do, but then you can bring it
up to market rent.

698
00:25:01,320 --> 00:25:02,072
Okay, reasonable.

699
00:25:01,972 --> 00:25:03,571
There's cash for keys scenarios,

700
00:25:03,471 --> 00:25:07,187
like how do I get my tenant out of
there so that I can bring my rent

701
00:25:07,187 --> 00:25:10,509
up because I can't do more than
2%, all the stories that go with

702
00:25:10,509 --> 00:25:10,731
that.

703
00:25:10,731 --> 00:25:11,954
Vacancy control is no, no, no, no.

704
00:25:11,954 --> 00:25:14,333
If somebody moves out of that
property, you're only permitted to

705
00:25:14,233 --> 00:25:15,757
raise rents within the rent
control 2.5%.

706
00:25:15,757 --> 00:25:19,225
So in other words, you cannot
raise rents to market rents.

707
00:25:19,225 --> 00:25:22,307
So if you've got a unit that
you're renting for 800 bucks a

708
00:25:22,307 --> 00:25:24,778
month, it's now worth $2,000 a
month given market rents.

709
00:25:24,878 --> 00:25:28,032
Somebody moves out, no, you can go
to 816 or 860 or whatever the

710
00:25:28,032 --> 00:25:31,180
number is do the math when did
this come out and did you say is

711
00:25:31,180 --> 00:25:35,035
it provincially is yeah it's
provincial and it's bill that got

712
00:25:35,035 --> 00:25:38,660
tabled so you can google it and i
don't remember what it's called if

713
00:25:38,880 --> 00:25:41,819
you google vacancy control it'll
come up her name is she's an mp on

714
00:25:41,757 --> 00:25:43,029
the and all or is that her name or
stand or something like that yeah

715
00:25:43,026 --> 00:25:47,401
i don't think like that yeah i
don't think that's a bill yet, but

716
00:25:47,401 --> 00:25:50,004
I- No, it hasn't been approved.

717
00:25:50,004 --> 00:25:53,035
My I- No, it hasn't been approved.

718
00:25:53,135 --> 00:25:54,876
My point is, is that she presented
the bill.

719
00:25:54,876 --> 00:25:55,579
She tabled it.

720
00:25:55,579 --> 00:25:57,544
So like, just thinking about this

721
00:25:57,544 --> 00:26:00,645
for literally two seconds, how do
you even control that?

722
00:26:00,645 --> 00:26:04,831
You're going to have to have a
database, which is probably going

723
00:26:04,931 --> 00:26:07,612
to cost way more money than you
can count.

724
00:26:07,612 --> 00:26:10,253
Also like, people cry communist a
lot, but that literally is

725
00:26:10,253 --> 00:26:12,846
communist if government is setting
the prices for the rent for

726
00:26:12,846 --> 00:26:12,969
everybody.

727
00:26:12,969 --> 00:26:13,992
We know it doesn't work because

728
00:26:13,982 --> 00:26:16,944
you look next door to Alberta who
does not have rent control.

729
00:26:16,944 --> 00:26:19,248
And it's a simple, you're
providing a service supply and

730
00:26:19,248 --> 00:26:22,120
demand like the market dictates
what it should be.

731
00:26:22,120 --> 00:26:24,163
You know, if you overcharge on
rent, you're going to have

732
00:26:24,163 --> 00:26:24,560
vacancy.

733
00:26:24,860 --> 00:26:26,438
If you can actually cash flow as

734
00:26:26,438 --> 00:26:28,142
an investor, you're going to buy
more units.

735
00:26:28,142 --> 00:26:29,531
Developers are going to build
more.

736
00:26:29,531 --> 00:26:32,018
And that's the whole issue we have
is supply and demand.

737
00:26:32,018 --> 00:26:35,722
Like take off your investor hat
for a minute and try and be

738
00:26:35,722 --> 00:26:36,290
completely unbiased.

739
00:26:36,290 --> 00:26:37,925
Cause I fully agree with

740
00:26:37,925 --> 00:26:40,950
everything you said, like that
resonates with me, but I guess

741
00:26:40,950 --> 00:26:43,450
what are the solutions?
Because I agree with everything

742
00:26:43,350 --> 00:26:45,600
the government's been coming out
with terrible policies, you know,

743
00:26:45,700 --> 00:26:50,191
for us, I think I speak kind of
for Matt and I is like less

744
00:26:50,191 --> 00:26:52,483
intervention from the government,
let the market, you know for us i

745
00:26:52,483 --> 00:26:55,200
think i speak kind of for matt and
i is like less intervention from

746
00:26:55,200 --> 00:26:59,595
the government let the market you
know sustain itself how it should

747
00:26:59,595 --> 00:27:05,328
and just let developers build
maybe easier said than done but i

748
00:27:05,328 --> 00:27:10,541
guess what are the solutions that
we should be focused on you know

749
00:27:10,541 --> 00:27:14,536
to be quite honest with you you
know as an investor there is no

750
00:27:14,536 --> 00:27:17,346
solutions because you've got
government in place so understand

751
00:27:17,346 --> 00:27:20,162
that this is politics over policy.

752
00:27:20,062 --> 00:27:22,762
So in other words, the squeaky

753
00:27:22,762 --> 00:27:23,788
wheel gets the grease.

754
00:27:23,788 --> 00:27:26,296
And right now, tenants, voters,

755
00:27:26,296 --> 00:27:28,382
read voters, are the squeaky
wheel.

756
00:27:28,382 --> 00:27:30,084
I can't afford, I can't afford, I
can't afford.

757
00:27:30,084 --> 00:27:33,378
The government then has to or
wants to pander to that squeaky

758
00:27:33,378 --> 00:27:35,110
wheel because they just want to
get voted in again.

759
00:27:35,110 --> 00:27:36,723
I mean, that's their job.

760
00:27:36,723 --> 00:27:37,889
They get voted in.

761
00:27:37,889 --> 00:27:40,652
And then for four years, they work
on getting voted in again.

762
00:27:40,652 --> 00:27:43,863
So in other words, as we look at
whatever elections might be coming

763
00:27:43,863 --> 00:27:44,265
up, whatever they're trying to
achieve, they're vote getting.

764
00:27:44,265 --> 00:27:46,020
So policies, I mean, it's why
often policies don't make sense.

765
00:27:46,120 --> 00:27:46,715
There's another layer of all of
this, and we're seeing it, you're

766
00:27:46,695 --> 00:27:47,913
at the effect of it.

767
00:27:47,913 --> 00:27:49,260
Government bureaucracy is the bane

768
00:27:49,360 --> 00:27:50,060
of everybody's existence.

769
00:27:50,600 --> 00:27:52,038
You know, we look at the

770
00:27:52,038 --> 00:27:53,482
permitting process that was
happening before.

771
00:27:53,482 --> 00:27:54,910
I mean, even consider the fact
that they took zoning out.

772
00:27:54,910 --> 00:27:55,071
Okay, awesome.

773
00:27:55,049 --> 00:27:56,158
We're going to take zoning out,

774
00:27:56,158 --> 00:27:59,633
you can go build a fourplex, you
can go do whatever you want within

775
00:27:59,633 --> 00:28:01,826
that footprint, as long as it's
within the square footage and the

776
00:28:01,826 --> 00:28:02,536
percentage of and da-da-da-da-da.

777
00:28:02,536 --> 00:28:02,867
Got it.

778
00:28:02,867 --> 00:28:04,480
Seems like a pretty good idea.

779
00:28:04,480 --> 00:28:05,453
And it probably is.

780
00:28:05,453 --> 00:28:06,912
We'll see how it all plays out.

781
00:28:06,912 --> 00:28:07,988
But there's no limitations.

782
00:28:07,988 --> 00:28:11,225
You know what's going to happen
around parking and the fights that

783
00:28:11,225 --> 00:28:14,351
are going to ensue after that,
because there's not really any

784
00:28:14,351 --> 00:28:15,329
planning around it.

785
00:28:15,229 --> 00:28:17,049
So let's just say, OK, Patrick,

786
00:28:17,049 --> 00:28:18,392
you don't want bureaucracy.

787
00:28:18,392 --> 00:28:20,481
We're going to remove all that

788
00:28:20,481 --> 00:28:20,630
bureaucracy.

789
00:28:20,630 --> 00:28:20,854
Great.

790
00:28:20,854 --> 00:28:23,288
It just shows up somewhere else,
because there's an underlying

791
00:28:23,288 --> 00:28:24,604
thing that people don't get.

792
00:28:24,604 --> 00:28:25,357
Bureaucracy begets bureaucracy.

793
00:28:25,357 --> 00:28:27,613
Everybody thinks, okay, we need to
be more efficient.

794
00:28:27,613 --> 00:28:28,406
Let's add some bureaucracy.

795
00:28:28,406 --> 00:28:30,175
We're going to put some controls

796
00:28:30,175 --> 00:28:30,507
in place.

797
00:28:30,507 --> 00:28:32,265
But if you're in the bureaucracy,

798
00:28:32,265 --> 00:28:34,849
if you're the person standing
behind the desk at whatever city

799
00:28:34,849 --> 00:28:39,022
municipality you work at, if you
get efficient, you risk losing

800
00:28:39,022 --> 00:28:39,504
your job.

801
00:28:39,504 --> 00:28:40,774
That's it.

802
00:28:40,674 --> 00:28:42,790
Bureaucracies are designed not to
be efficient because then what are

803
00:28:42,782 --> 00:28:43,674
we going to do?
Create an efficiency and then I

804
00:28:43,557 --> 00:28:43,977
don't have a job.

805
00:28:44,077 --> 00:28:44,333
That's the story, right?

806
00:28:44,333 --> 00:28:45,033
As a matter of fact, that's why
you see layers of bureaucracy that

807
00:28:45,025 --> 00:28:45,308
frustrates us.

808
00:28:45,192 --> 00:28:46,728
You can talk to my supervisor, and

809
00:28:46,728 --> 00:28:51,723
then you get to the supervisor and
we go, well, you can talk to my

810
00:28:51,723 --> 00:28:53,229
supervisor and then the supervisor
of the supervisor.

811
00:28:53,229 --> 00:28:54,374
So nobody's making decisions.

812
00:28:54,374 --> 00:28:55,398
Nobody's being held accountable.

813
00:28:55,398 --> 00:28:57,993
So how do we solve the problem?
We have to get rid of bureaucracy.

814
00:28:57,993 --> 00:29:02,269
We have to get rid of rent
controls because I'll tell you

815
00:29:02,269 --> 00:29:04,118
what sets the bar.

816
00:29:04,118 --> 00:29:06,951
And this is why Alberta is

817
00:29:06,951 --> 00:29:08,897
successful within their rental
market.

818
00:29:08,897 --> 00:29:12,611
Is it perfect?
No. There's all sorts of stories,

819
00:29:12,511 --> 00:29:14,938
but I'm heavily invested in
Alberta.

820
00:29:14,938 --> 00:29:18,003
I understand what goes on in terms
of landlord-tenant rules and

821
00:29:18,003 --> 00:29:19,644
ultimately capitalism slash
entrepreneurs.

822
00:29:19,644 --> 00:29:20,003
rules.

823
00:29:20,003 --> 00:29:21,077
And ultimately, capitalism slash

824
00:29:21,077 --> 00:29:25,108
entrepreneurs, listen, you get
into a battle with each other and

825
00:29:25,108 --> 00:29:26,720
the market sets the rent.

826
00:29:26,940 --> 00:29:28,505
You do a good job.

827
00:29:28,405 --> 00:29:29,242
You provide value.

828
00:29:29,342 --> 00:29:31,405
If you want to up your rent, go

829
00:29:31,405 --> 00:29:31,545
ahead.

830
00:29:31,545 --> 00:29:32,940
You don't want to.

831
00:29:33,440 --> 00:29:34,510
You don't want to provide that
value.

832
00:29:34,510 --> 00:29:36,536
You don't want to look after your
tenants.

833
00:29:36,636 --> 00:29:37,156
You're gone.

834
00:29:37,156 --> 00:29:39,520
And so it changes who's on the

835
00:29:39,820 --> 00:29:41,509
playing field and it changes the
game.

836
00:29:41,509 --> 00:29:45,983
Because when you live in a market
of capitalism, and I'm a fan of

837
00:29:45,983 --> 00:29:48,524
that, and entrepreneurs, yes, and
you can be a compassionate

838
00:29:48,424 --> 00:29:51,340
capitalist for those of you who
don't agree.

839
00:29:51,440 --> 00:29:53,041
I'm not suggesting you come in and
bulldoze.

840
00:29:53,041 --> 00:29:56,747
My point is, is that when you get
into a market that's competitive,

841
00:29:56,747 --> 00:29:58,278
let the market set the rents.

842
00:29:58,278 --> 00:29:59,768
But that's not what happens here.

843
00:29:59,768 --> 00:30:02,014
So, you know, British Columbia is
a tough haul right now for all of

844
00:30:02,014 --> 00:30:03,444
the reasons that it is.

845
00:30:03,444 --> 00:30:04,432
And back to your original

846
00:30:04,432 --> 00:30:07,440
question, we've been talking about
Alberta for years, but, you know,

847
00:30:07,760 --> 00:30:09,244
back in 2019, we saw what is
coming.

848
00:30:09,244 --> 00:30:11,620
And then when the pandemic hit, it
got put on steroids.

849
00:30:11,980 --> 00:30:16,044
And, you know, if you were to look
at all of the stuff that we were

850
00:30:16,044 --> 00:30:18,332
producing, even back in mid 2020,
we're going, folks, get to

851
00:30:18,332 --> 00:30:19,754
Alberta, get your capital invested
in Calgary.

852
00:30:19,754 --> 00:30:22,480
So RAINN members, members of our
community, many were investing

853
00:30:22,680 --> 00:30:23,082
heavily in Calgary.

854
00:30:23,082 --> 00:30:24,480
That was a no brainer.

855
00:30:24,920 --> 00:30:29,106
That was like, OK, we know the
dice are loaded and we're going to

856
00:30:29,106 --> 00:30:29,660
throw crabs.

857
00:30:30,200 --> 00:30:34,343
There were seven every time.

858
00:30:34,343 --> 00:30:35,880
Like it was that easy from my
perspective.

859
00:30:36,360 --> 00:30:40,694
You know, so back to your original
question, which is real estate's

860
00:30:40,694 --> 00:30:41,020
regional.

861
00:30:41,020 --> 00:30:44,042
And so we have to look and say,

862
00:30:44,042 --> 00:30:47,738
where do we get the best return on
our investment?

863
00:30:47,738 --> 00:30:51,377
Where do we see some lift in terms
of appreciation?

864
00:30:51,377 --> 00:30:57,279
Where do we see a strong economy,
strong jobs, low cost of living?

865
00:30:57,279 --> 00:31:00,658
And I'm not talking about cheap
housing prices, by the way,

866
00:31:00,658 --> 00:31:02,548
although Alberta is inexpensive
compared to British Columbia and

867
00:31:02,548 --> 00:31:04,160
in many places in Ontario.

868
00:31:04,440 --> 00:31:05,825
The point is, is that price aside,

869
00:31:05,825 --> 00:31:07,840
jobs, lower cost of living, higher
incomes.

870
00:31:07,840 --> 00:31:10,963
Oh, by the way, Alberta's got the
highest income in the country,

871
00:31:10,963 --> 00:31:11,205
weekly income.

872
00:31:11,205 --> 00:31:12,562
They've also got the lowest tax

873
00:31:12,462 --> 00:31:14,151
and they've got one of the
strongest economies right now.

874
00:31:14,151 --> 00:31:14,786
tax.

875
00:31:14,786 --> 00:31:16,821
And they've got one of the

876
00:31:16,921 --> 00:31:18,537
strongest economies right now.

877
00:31:18,537 --> 00:31:21,906
I think for me, like a point I

878
00:31:21,906 --> 00:31:25,161
took out of that too, that you
were talking about investing in

879
00:31:25,161 --> 00:31:27,022
Alberta, you're not getting people
speculating.

880
00:31:27,022 --> 00:31:28,413
They're trying to ride some
massive appreciation.

881
00:31:28,513 --> 00:31:28,856
There's stability.

882
00:31:28,856 --> 00:31:30,625
You know what your return on

883
00:31:30,625 --> 00:31:31,321
investment is.

884
00:31:31,321 --> 00:31:32,288
There's healthy cashflow.

885
00:31:32,288 --> 00:31:33,594
The numbers make sense.

886
00:31:33,594 --> 00:31:35,619
And I think maybe that's where the

887
00:31:35,619 --> 00:31:38,967
government skewed a little bit is
like, they think investors are

888
00:31:38,967 --> 00:31:46,585
just trying to buy for that
appreciation pop. And we're really

889
00:31:46,685 --> 00:31:47,639
not successful investors.

890
00:31:47,739 --> 00:31:48,945
That's not why they bought in

891
00:31:48,935 --> 00:31:49,949
B.C., right?
Like some people were fortunate

892
00:31:49,949 --> 00:31:51,121
that we got that pop out of it.

893
00:31:51,184 --> 00:31:52,097
But right now, it doesn't make

894
00:31:52,097 --> 00:31:53,110
sense for investors to buy here.

895
00:31:53,210 --> 00:31:53,939
And it's speculating.

896
00:31:53,939 --> 00:31:56,900
So if the government just like
walked away and kind of let the

897
00:31:56,900 --> 00:31:59,554
market dictate, there'd actually
probably be a depreciation

898
00:31:59,454 --> 00:32:01,257
happening, which would kind of
resolve the issue.

899
00:32:01,257 --> 00:32:04,774
And I'm And I'm not suggesting
that there should be no rules or

900
00:32:04,774 --> 00:32:04,835
regulations.

901
00:32:04,835 --> 00:32:06,427
So don't hear that at all.

902
00:32:06,427 --> 00:32:08,876
What I'm saying is, is that
they're trying to control

903
00:32:08,876 --> 00:32:10,651
something that they can't control.

904
00:32:10,651 --> 00:32:11,753
And because it's politics over

905
00:32:11,753 --> 00:32:12,833
common sense policy.

906
00:32:12,833 --> 00:32:14,760
And I mean, you know, somebody

907
00:32:14,760 --> 00:32:17,319
like Pierre Polyev is actually,
that's basically what his platform

908
00:32:17,319 --> 00:32:20,732
is being built on, what he's
calling common sense.

909
00:32:20,732 --> 00:32:24,344
Now, I'm a Polyev fan, but that's
not to say that he's still

910
00:32:24,344 --> 00:32:24,772
government.

911
00:32:24,772 --> 00:32:25,503
He's a career politician.

912
00:32:25,503 --> 00:32:29,134
So I'm guarded around it all, but
I just know that what we've got in

913
00:32:29,134 --> 00:32:32,766
the federal government right now
makes no sense.

914
00:32:32,766 --> 00:32:34,642
I look at what's happening
provincially with British

915
00:32:34,742 --> 00:32:35,089
Columbia.

916
00:32:34,989 --> 00:32:36,240
Listen, it's a train wreck.

917
00:32:36,240 --> 00:32:39,660
So I think from a real estate
investor point of it's a

918
00:32:39,660 --> 00:32:41,700
toughcially view, with British
Columbia, it's a train listen, So

919
00:32:41,700 --> 00:32:42,538
I think from wreck.

920
00:32:42,538 --> 00:32:44,341
a real estate investor point of

921
00:32:44,341 --> 00:32:46,274
view, it's a tough haul in British
Columbia.

922
00:32:46,274 --> 00:32:48,336
That's not to say you shouldn't
invest.

923
00:32:48,336 --> 00:32:52,665
Here's what I want to take you
guys back to a little bit, right?

924
00:32:52,665 --> 00:32:55,931
And this is maybe something that
even will support your listeners

925
00:32:55,931 --> 00:32:56,320
and your clients.

926
00:32:56,320 --> 00:32:57,351
Right now what's happening, you're

927
00:32:57,351 --> 00:33:00,166
going to see a real problem in
Alberta near future, which is a

928
00:33:00,166 --> 00:33:02,996
lot of Ontario and BC money is
flooding into Calgary, for

929
00:33:02,996 --> 00:33:03,124
example.

930
00:33:03,124 --> 00:33:05,172
So they're buying condos for a

931
00:33:05,172 --> 00:33:07,094
couple hundred grand, 300 grand.

932
00:33:07,094 --> 00:33:08,718
It's like, holy cow, give me four.

933
00:33:08,718 --> 00:33:09,531
It seems so cheap.

934
00:33:09,531 --> 00:33:11,585
They're buying for the wrong

935
00:33:11,585 --> 00:33:11,723
reasons.

936
00:33:11,723 --> 00:33:12,759
They're buying condos that aren't

937
00:33:12,759 --> 00:33:15,181
going to make sense.

938
00:33:15,181 --> 00:33:17,649
And you're going to see a fallout

939
00:33:17,749 --> 00:33:20,389
because condos in Calgary, condos
in Edmonton, it's a different

940
00:33:20,389 --> 00:33:20,667
culture.

941
00:33:20,667 --> 00:33:21,835
It's a different market.

942
00:33:21,835 --> 00:33:25,953
And they're buying because they're
cheap as opposed to who's my end

943
00:33:25,953 --> 00:33:27,039
user demographic?
What's the upside?

944
00:33:27,039 --> 00:33:31,356
Why is that condo market?
Oh, and by the way, within any

945
00:33:31,356 --> 00:33:35,153
city, there is, of course, better
places to own specific property

946
00:33:35,153 --> 00:33:36,546
types than in other places.

947
00:33:36,646 --> 00:33:39,735
And so you know that in the game

948
00:33:39,735 --> 00:33:43,140
that you guys play is that cities
are even broken down regionally.

949
00:33:44,640 --> 00:33:46,219
There's good parts of town, not so
good parts of town.

950
00:33:46,291 --> 00:33:47,361
There's parts of town where you
buy a condo that makes sense.

951
00:33:47,361 --> 00:33:49,460
You buy a single family that makes
sense, but put a condo over here

952
00:33:49,460 --> 00:33:51,455
that doesn't make sense.

953
00:33:51,455 --> 00:33:53,800
A townhouse, what are you doing?

954
00:33:53,700 --> 00:33:55,356
Don't do that.

955
00:33:55,356 --> 00:33:57,394
It breaks down that way, and you

956
00:33:57,294 --> 00:34:00,662
have to get into the nuances of it
all.

957
00:34:00,662 --> 00:34:03,400
So when you look at real estate,
and this is where, yes, you want

958
00:34:03,460 --> 00:34:04,926
to ride the wave called
appreciation.

959
00:34:04,926 --> 00:34:06,685
And yes, you want cash flow.

960
00:34:06,685 --> 00:34:10,100
And yes, you want cash on cash

961
00:34:10,340 --> 00:34:10,621
returns.

962
00:34:10,621 --> 00:34:11,980
And these are kind of the ideal

963
00:34:12,000 --> 00:34:12,257
situations.

964
00:34:12,257 --> 00:34:14,121
What we've got going on globally

965
00:34:14,121 --> 00:34:16,608
right now, when we look at the
geopolitical kind of issues that

966
00:34:16,608 --> 00:34:18,562
are happening, we got wars all
over the country.

967
00:34:18,562 --> 00:34:21,465
We went through four years or
three years of money printing and

968
00:34:21,465 --> 00:34:22,130
a flood into it.

969
00:34:22,130 --> 00:34:24,344
And I don't know what you guys

970
00:34:24,344 --> 00:34:26,838
know about monetary but we've
actually flooded it.

971
00:34:26,838 --> 00:34:28,888
policy, The value of our dollar,
there's no value to it.

972
00:34:28,888 --> 00:34:31,639
People think real estate prices
are going up when in fact, it's

973
00:34:31,739 --> 00:34:33,213
just the value of our dollar going
down.

974
00:34:33,213 --> 00:34:37,632
Happening around the world, by the
way, it's not just us.

975
00:34:37,632 --> 00:34:42,520
There's certainly lots of people
that believe the U will fall as a

976
00:34:42,420 --> 00:34:45,659
reserve currency, and maybe that
is or maybe that isn't.

977
00:34:45,659 --> 00:34:46,965
But the point is this.

978
00:34:47,065 --> 00:34:48,768
How do you hedge your bet?

979
00:34:48,768 --> 00:34:50,772
How do you take capital?
For example, if you got $100,000

980
00:34:50,772 --> 00:34:53,275
in your bank account today, good
for you.

981
00:34:53,376 --> 00:34:56,752
But when we look at the real cost,
the real inflation, you're losing

982
00:34:56,752 --> 00:34:58,828
probably 10 or 12% a year of
buying power.

983
00:34:58,828 --> 00:35:00,567
In reality, they're telling you
it's 6% or 5%.

984
00:35:00,567 --> 00:35:04,571
So I put it in a GIC, I get 5%,
still losing that value over the

985
00:35:04,527 --> 00:35:04,806
course of the year or 10 years.

986
00:35:04,763 --> 00:35:05,095
So in other words, my 100 grand

987
00:35:05,052 --> 00:35:06,503
today in 10 years from now is
basically worth 60 grand, 40

988
00:35:06,503 --> 00:35:09,135
grand, 50 grand, whatever number
you want to put on it.

989
00:35:09,035 --> 00:35:10,420
The point is, is cash doesn't
work.

990
00:35:10,520 --> 00:35:12,453
So what do we do?
We say, well, we have to put it

991
00:35:12,451 --> 00:35:12,741
somewhere.

992
00:35:12,841 --> 00:35:14,373
What do we know about real estate?

993
00:35:14,373 --> 00:35:18,215
I'm going to use this phrase, and
I want you to think in these

994
00:35:18,115 --> 00:35:18,495
terms.

995
00:35:18,495 --> 00:35:19,891
It's a store of value, okay?

996
00:35:19,891 --> 00:35:22,620
So in other words, you could buy
gold or precious metals, silver,

997
00:35:22,620 --> 00:35:27,265
Bitcoin, perhaps it's a store of
value is where we can put cash and

998
00:35:27,265 --> 00:35:30,318
in the future state, sell that
property and get cash at today's

999
00:35:30,318 --> 00:35:30,830
market price.

1000
00:35:30,730 --> 00:35:31,136
You follow?

1001
00:35:31,136 --> 00:35:31,252
Yeah.

1002
00:35:31,352 --> 00:35:32,355
I love that.

1003
00:35:32,355 --> 00:35:35,464
But people look at it and they
don't think longer term.

1004
00:35:35,464 --> 00:35:38,963
They say they do, but in their
world, three to five years is long

1005
00:35:39,063 --> 00:35:39,582
term.

1006
00:35:39,482 --> 00:35:40,982
I'm talking five years bare

1007
00:35:40,982 --> 00:35:41,613
minimum.

1008
00:35:41,713 --> 00:35:44,348
I'm looking 10, 15 years out into

1009
00:35:44,348 --> 00:35:47,855
the future and saying, you know,
if you really want to create

1010
00:35:47,855 --> 00:35:51,859
future sustainable wealth, you
need to put your money into a

1011
00:35:51,759 --> 00:35:52,526
store of value.

1012
00:35:52,626 --> 00:35:55,211
And real estate is a very, very

1013
00:35:55,311 --> 00:35:57,225
proven store of value.

1014
00:35:57,225 --> 00:35:59,691
And as many people are saying

1015
00:35:59,691 --> 00:36:02,737
we're in a bubble and it's gonna
collapse, I don't see it.

1016
00:36:02,737 --> 00:36:04,814
I cannot see it and I'm in it.

1017
00:36:04,814 --> 00:36:06,631
I'm watching it closely.

1018
00:36:06,631 --> 00:36:08,748
So long winded, I know, but I hope
that's valuable.

1019
00:36:08,848 --> 00:36:10,005
I agree with that.

1020
00:36:10,005 --> 00:36:11,483
When you buy real estate, it

1021
00:36:11,483 --> 00:36:12,807
should be for long-term.

1022
00:36:12,807 --> 00:36:14,279
I agree with you, five-year

1023
00:36:14,279 --> 00:36:14,647
minimum.

1024
00:36:14,747 --> 00:36:16,266
And you can't really go wrong.

1025
00:36:16,266 --> 00:36:19,681
The issue right now is that people
are having a hard time holding on

1026
00:36:19,781 --> 00:36:22,281
until that five years with the
lower rents and the high interest

1027
00:36:22,281 --> 00:36:24,170
rates and the regulations and
stuff like that.

1028
00:36:24,170 --> 00:36:28,153
So I guess if the property makes
sense and you can hold onto a

1029
00:36:28,153 --> 00:36:30,512
long-term, whether it's your
principal residence, your first

1030
00:36:30,612 --> 00:36:33,782
place or an investment, as long as
you can float the property until

1031
00:36:33,882 --> 00:36:35,240
Yes, a hundred percent.

1032
00:36:35,240 --> 00:36:37,466
And that's just what it is.

1033
00:36:37,466 --> 00:36:40,508
And my point is, is that I'm not
buying it because it's cheap.

1034
00:36:40,508 --> 00:36:44,453
I'm buying it because number one,
I see it as a store of value.

1035
00:36:44,453 --> 00:36:49,480
I'm looking provincially,
municipally, and I'm going, what's

1036
00:36:49,442 --> 00:36:49,480
the economic future of this city,
of this region?

1037
00:36:49,474 --> 00:36:53,785
And so I'm very strategic in my
thought process.

1038
00:36:53,745 --> 00:36:53,920
And then what strategy?
Is it a buy and hold?

1039
00:36:53,913 --> 00:36:55,714
You know, am I buying a
multifamily?

1040
00:36:55,614 --> 00:36:58,080
What am I doing?
So, you know, from an investment

1041
00:36:58,080 --> 00:37:00,373
point of view, right now, I'm a
strong advocate for good REITs

1042
00:37:00,373 --> 00:37:01,314
that are buying multifamily.

1043
00:37:01,314 --> 00:37:03,305
So what we're seeing in the space,

1044
00:37:03,405 --> 00:37:07,242
and I'll share this with you just
in the research, is that we're

1045
00:37:07,242 --> 00:37:10,662
seeing a lot of growth in the
multifamily space in both Canada

1046
00:37:10,662 --> 00:37:11,304
and the US.

1047
00:37:11,304 --> 00:37:13,221
But the growth is in those units

1048
00:37:13,121 --> 00:37:13,964
that are 100 plus.

1049
00:37:13,964 --> 00:37:15,261
So 100 units, 200, 150, 225.

1050
00:37:15,261 --> 00:37:18,665
That's where there's a lot of
growth, significant.

1051
00:37:18,665 --> 00:37:22,921
And the reason that is, is that
we've got all of this immigration

1052
00:37:22,921 --> 00:37:24,823
flooding into both Canada and the
US.

1053
00:37:24,923 --> 00:37:27,738
They can't afford a house.

1054
00:37:27,738 --> 00:37:30,218
They can't afford the rent of a

1055
00:37:30,118 --> 00:37:30,317
condo.

1056
00:37:30,417 --> 00:37:33,589
So where do they have to live?

1057
00:37:33,689 --> 00:37:35,476
They're going to live in an
apartment style accommodation.

1058
00:37:35,376 --> 00:37:39,554
And the bigger spaces like those
hundred plus units, they come with

1059
00:37:39,554 --> 00:37:40,648
all sorts of amenities.

1060
00:37:40,748 --> 00:37:43,731
You know, you can get a pool, you

1061
00:37:43,731 --> 00:37:47,372
can get a gym, you can be close to
stores.

1062
00:37:47,372 --> 00:37:50,669
And as a perspective of putting
capital into a store of value, I'm

1063
00:37:50,669 --> 00:37:52,225
a huge fan of REITs right now.

1064
00:37:52,225 --> 00:37:54,109
And depending on the province, I'm

1065
00:37:54,109 --> 00:37:57,794
also a big fan of, I own a lot of
detached Patrick, I know we're

1066
00:37:57,771 --> 00:38:00,079
running against your time here,
but do you have time for our five

1067
00:38:00,077 --> 00:38:00,922
quick questions here?
Let's try it.

1068
00:38:00,922 --> 00:38:02,743
Okay, let's do it.

1069
00:38:02,743 --> 00:38:04,642
You go first up, Taylor.

1070
00:38:04,642 --> 00:38:10,043
If could buy one property in the
Okanagan in the next 12 months,

1071
00:38:10,043 --> 00:38:11,793
what would it Light industrial or
commercial.

1072
00:38:11,793 --> 00:38:15,644
is a new question that we're
asking, but if you could tell your

1073
00:38:15,644 --> 00:38:18,335
younger self any piece of advice,
what be?

1074
00:38:18,435 --> 00:38:20,162
Start sooner, have confidence, be
brave.

1075
00:38:20,162 --> 00:38:20,389
Nice.

1076
00:38:20,489 --> 00:38:21,812
Don't be afraid to kiss.

1077
00:38:21,812 --> 00:38:23,520
What's best thing you've ever
spent money on?

1078
00:38:23,700 --> 00:38:24,705
Experiences with my wife.

1079
00:38:24,605 --> 00:38:24,798
Nice.

1080
00:38:24,798 --> 00:38:26,091
Vacations, that kind of thing.

1081
00:38:26,091 --> 00:38:27,577
then, okay, finally, Pat, how can

1082
00:38:27,577 --> 00:38:30,095
us or our listeners help you and
rain?

1083
00:38:30,195 --> 00:38:32,962
can you help me?
Yeah, I know the answer to that

1084
00:38:33,062 --> 00:38:33,429
question.

1085
00:38:33,329 --> 00:38:35,020
Spread the word, the real estate

1086
00:38:35,020 --> 00:38:36,462
investment network.

1087
00:38:36,562 --> 00:38:38,073
We've been around 30 years

1088
00:38:38,073 --> 00:38:41,466
teaching investors how to invest
in real estate the right way,

1089
00:38:41,466 --> 00:38:44,545
proven system, share the word,
reach out to me anytime, CEO at

1090
00:38:44,545 --> 00:38:48,400
rain Canada.com R E I N Canada.com
and listen to the everyday

1091
00:38:48,300 --> 00:38:48,740
millionaire podcast.

1092
00:38:48,740 --> 00:38:49,509
continue doing that.

1093
00:38:49,509 --> 00:38:50,470
like eight, three years.

1094
00:38:50,470 --> 00:38:51,020
That'd be awesome.

1095
00:38:51,200 --> 00:38:51,881
Thanks a Patrick.

1096
00:38:51,881 --> 00:38:53,694
lot, It's been awesome.

1097
00:38:53,594 --> 00:38:54,130
It's been awesome.

1098
00:38:54,130 --> 00:38:55,713
thanks so much for coming man.

1099
00:38:55,680 --> 00:38:57,560
Yeah, on, This was a ton of
knowledge.

1100
00:38:57,460 --> 00:38:58,510
we can go Yeah, all day.

1101
00:38:58,506 --> 00:39:00,619
we'll have you back on for sure.

1102
00:39:00,619 --> 00:39:01,440
Yeah, Love the support.

1103
00:39:01,540 --> 00:39:01,702
guys.

1104
00:39:01,702 --> 00:39:01,971
Thanks,