Introducing Quentin D'Souza, Host of the EducationREI podcast. Get insight into his background and experiences in Real Estate Investing.

Show Notes:

Getting Started in EducationREI series is an opportunity for you to be a fly on the wall of some of the conversations that I have with different members who are part of EducationREI and DurhamREI. I wanted you to get a sense of some of those conversations, as well as how I'm helping them in their real estate business, and how sometimes they're helping me in my real estate business.

Just so you know who I am. My name is Quentin D'Souza,

• I'm an award winning real estate investor,
• trusted authority of investing.
• I'm certified teacher, I hold two university degrees, which includes Master's in education.

I quit my job in 2014 as a as a teacher with the Toronto school board, I was there for about 20 years, I quit at 40 years old. And I haven't looked back since. It's been a really interesting and gratifying experience to move away from the public system where I was in on the sunshine list, which was, it's basically public sector employees who earn over $100,000 was on my way to be an administrator or principal in the system, and decided to focus all my time on my own business.

I've appeared on local and national television and radio. I've been interviewed in national publications. I've been a keynote speaker to large audiences of real estate investors. I'm a proud member of the entrepreneurs organisation which has certain criteria to be accepted. I have been accepted in Tiger 21. Again, which is an organisation that has a certain net worth that is required to be accepted. You could look both of those up.

In my company Appleridge Homes, I use the buy, renovate, refinance, rent (BRRR) long term rental properties since 2008, started off with single family homes moved, over to apartment buildings, where I focus now. Im investing both in Ontario and in the US.

My Portfolio really focuses on Win Win relationships between myself and the people I work with. We currently have over 75 million+ in assets under management.

I'm the author of multiple books The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords, The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate Investors and Landlords for Renting Out Residential Real Estate. I co-wrote a book with two friends of mine The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.

And my last and latest book,The Action Taker's Real Estate Investing Planner, which is half book and half planner that helps you to achieve your real estate goals. You can find any of those books on Amazon.

I no longer offer coaching but I mentor real estate investors through the club and you can listen to those conversations or at least some of those conversations through this podcast. I hope you enjoy your listen and if you'd like to learn more about the club, you can visit DurhamREI or EducationREI enjoy the podcast

In this episode, I'm talking to a new member of EducationREI.ca, where we get them familiar with the material, find their goals and direct them on where they can get started working toward those goals.

Quentin talks with a new member, who moved to Canada in 2006 as a first-generation migrant from India. He became interested in real estate in Canada while working at one of the top five banks in Canada. Meanwhile, he used the buy and hold strategy in India. After marriage, he and his wife decided that they wanted to become homeowners, which they were able to achieve. Now, they want to achieve financial freedom, and want to start with some cash flowing properties. To sustain their lifestyle, they are looking at an income of 100k. Talking about what the financial freedom looks like for him, he says that it has more to do with the time, what they could do, and the location they could be at.

Quentin shares a complete blueprint to help them get started with real estate investing. He says that if you've got 500k and you want to create $8,000 a month for cash flow, as you're investing in property, you’ll end up with cash flow that starts off smaller but increases over time. At the same time, you need to be careful. He adds that cash flow helps you to hold on to an asset, but what is really going to make you money is the mortgage paid down and the capital appreciation with that product. Over time, as you own that asset, let's say five to 10 years, then you can refinance the property. You can also use the cash flow to help support your income. He says that you have to have a longer-term mindset, there's too much of a day trading mentality when it comes to a lot of things, which is as true for real estate as it is for the stock market.

He adds that the way that you do well is, you have to invest in markets that are both appreciating and give you some cash flow. You can find cash flow by doing different strategies; working privately, networking with other investors to find opportunities, looking at areas along the 401 Corridor, etc. He recommends the courses to start off with is ‘Your First Million in Real Estate’, to learn some of the fundamentals that you want to be looking for when you're looking at all these markets. He further adds that you need to stay away from some of the smaller communities, because they can have these big rushes of appreciation, that can go on for 5, 10 years, but then they'll have flat periods. People don't see the flat periods because they don't have a long enough memory to be able to see it.

Quentin says that you've got to keep that in mind when you're looking at different types of investment property, not just cash flow. He suggests him to do his own research first. With regards to accessing funds, he recommends financing at this point. At the very least, a line of credit; home equity line of credit as a component of the mortgage, so that the mortgage payment amount doesn't change but you have access to the funds, as a secured line of credit. Then as you go along, you're going to look at the joint venture course. Quentin then suggests that he should go back to the meeting and listen to the meeting recordings because that is where we talk about what's happening right now, what areas and what strategies are working, where people are buying – those are the things that you really want to go in and listen to. Rather than the reports, he says that the videos would be more helpful.

In conclusion Quentin says that EducationREI.ca is essentially an education platform for people who are investing in other places, it's more about the fundamentals of real estate investing, the Q&A calls, the meetings and the connections that you make.

Topics Discussed

·        Introduction [00:00:00]

·        What Was His Experience Like and What Were...

Episode Summary

In this episode, Quentin takes the mystery out of real estate investing with a new member who has owned a business for 15 years and is looking for a career change. We go over the best way to get started in real estate investing, and why you should start now and not wait for later.

The member shares that he has worked in the masonry business for the last 15 years, but now he is looking to change from a career in stone masonry. Quentin adds that in real estate, it's about figuring out what works and what doesn't work for you, what you like, and what strategy you want to focus on. The member shares that he has renovated a couple of his properties, planning to sell one later. Quentin suggests that he should focus on both getting his license and buying a property. He says "See what you qualify for, then you can go and figure out what you want to do."

Quentin suggests starting with the financing piece, and then just finding something where numbers make sense. He adds, "If you're looking for numbers that make sense, I would say focus on Barry. Barry right now has the ability to do garden suites, which is not really well known. And so if you can buy a house put, like put a basement suite in and then add a garden suite, you're basically creating a triplex, which would be a good strategy." In conclusion, Quentin suggests starting right away once numbers make sense and he has a good deal.

Topics Discussed

• Introduction [00:00]

• His Masonry Business and How Does it Work? [01:45]

• What is He Doing in Order to Get His First Project Started? [05:18]

Important Links

• https://EducationREI.ca

• https://GetRealWealthy.com

• https://DurhamREI.ca

Episode Summary

In this episode, Quentin takes the mystery out of real estate investing with this new member who is just beginning her journey, and we cover some of the basics, some of the lingo, and where to start the learning process, as well as the best place to start building the network.

The member shares that she became interested in real estate investing as a means to achieve financial freedom, and that is how she discovered EducationREI. Quentin suggests going through The Action Taker Goal Attainment Program first, as well as The Action Taker Wealth Pyramid. The Wealth Pyramid gives you the background on how to structure the direction of where you want to go. He also suggests her to start with the materials that are available and then join the calls, especially the ones for the beginners. After that, she should go through the courses Your First Three Properties and Your First Million in Real Estate. He further says, "Right now, the most important thing for you is to listen for the language and understand the concepts."

Quentin goes on to explain some of the lingo such as ROI (Return on Investment), Rent to Owns, Wholesaling, Joint Venture, etc. He adds, "As you start to learn and you go through the materials, you'll start to listen and hear different strategies that people use. And every strategy is different, and you're going to find ones that work for you and ones that you're not interested in." He also adds that being around other people who are doing the same thing is like who are interested in the same thing, that's going to help a lot.

As for whether this is a good time to invest in a property, Quentin says that it is more about finding something that works well for you. When you're looking at doing renovations, you have to know who you're dealing with contractor-wise because it will affect your overall costs. Talking about, The Ultimate Wealth Strategy book, he says that it really is about purchasing well, keeping your renovation costs under control and then refinancing to that the highest amount possible, while your property still cash flows.

Topics Discussed

• Introduction [00:00]

• Her Background and Experience in Real Estate Investing [01:24]

Important Links

• https://EducationREI.ca

• https://GetRealWealthy.com

• https://DurhamREI.ca

• The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate

• The Action Taker Goal Attainment Program

• The Action Taker Wealth Pyramid

• Your First Three Properties: Your First Million in Real Estate.

• Rent to Owns

Episode Summary

In this episode, Quentin talks with a member, who understands the importance of continually investing in their own education, and the significant returns that it can bring learning from his past. We find out how he managed to go from a negative cash flow of $3,000 a month to a positive cash flow.

The member shares that he was looking at appreciation and capital gains when he started investing in properties. He found that it was not working out very well after a couple of years, and it became hard to keep those properties. This is where joining the program greatly helped him turn the tide. He says that the key takeaway for him was that you should always be learning as that is the only way to improve, and that's how you build wealth.

Talking about the investment property that he now has in Oshawa, the member shares that he is in the process of duplex conversion, where he will be able to get a gross rent of around $4,000 a month. He adds that the property will be cash flow positive once he does the refinancing. Quentin adds that the key at this point is not to put himself in the position that he was before. He suggests working on the numbers better, include repairs, maintenance, property management costs, as well as insurance, property, property taxes, and mortgage payment.

He further says, "my encouragement for you is, don't just do it once. You've learned the process, you understand, you know how to do this now. Take it and do it again, and again, and again, rinse and repeat. That is the key for this strategy, and you are doing a buy, fix, refinance and rent." The member says that while it is more work, you get a better price when you buy from a wholesaler. Quentin says that if you're buying in the right area, at the right price, you're going to get appreciation, and you're going to get cash flow, further saying, "with a lots of people looking for the same thing, it becomes more challenging, what you have to do is differentiate yourself."

Topics Discussed

• Introduction [00:00]

• How He was Able to Turn Cashflow Negative to Positive [01:02]

• His Key Takeaways After Joining the Program? [02:34]

• The Investment Property that He Now Has in Oshawa [04:12]

• What is the Expected Cashflow for that Property? [06:35]

• What is the Refinancing Rate for the Property? [07:40]

• Why Did He Decide to Buy From a Wholesaler? [12:05]

Important Links

• https://EducationREI.ca

• https://GetRealWealthy.com

• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member, and they talk about leveraging the equity in your property to buy more investment properties. 

The member shares that the first property that he got, he stayed there for five years. Then, he took the equity and went to the second property, which is a principal residence now. Now, he is using the first one as a rental property. While the property is cash flowing negatively as he is in the early stages of real estate investing, Quentin says that it is good to start somewhere. The member shares that the property is being rented for $2500 and it has a negative cash flow of $200 to $300. As for the interest, it is around 1.85 variable, with a 30-year amortization. 

Quentin adds that the reason behind negative cash flow is the size of the mortgage. He adds “You want to make sure that you talk to your accountant, and make sure that you cap when it turned from a principal residence to a rental property. Otherwise, you're going to lose that tax advantage.” He further says that sometimes it makes more sense to sell a property as a principal residence, take the funds, put it into the new principal residence, and use the balance of the funds to invest. Talking about the available lines of credit, the member shares that he has access to some funds. 

Quentin adds that having good credit is the key, saying “if you can access credit in different ways, you can structure things a little differently, especially if you have, good income that can support it. So you can take, pay down secured, and if that is okay with the bank to use a secured line of credit, you increase your room, and then you're able to access, perhaps a third property doing it yourself.” While leverage can help when you’re starting out, Quentin suggests that he should avoid over-leveraging. 

In conclusion, he suggests the member consider selling the first property, seeking multiple options for lending, talk to a mobile mortgage specialist, and explore all of his options.

.   

Topics Discussed

• Introduction [00:00]
• His Background and Experience in Real Estate Investing [01:02]
• How Much Does He Have Available in HELOC, and Other Lines of Credit? [07:41]

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who shares his journey in real estate investing, some of the strategies that he's used to build a portfolio of properties, and how he's flipped properties in the last year. 

The member shares that he became interested in real estate investing following the 2008 recession, as a safe investment, while working at Bell. He purchased a condo townhouse for $96,000 as his first property. He went on to acquire 17 properties, which helped him retire after he was laid off from his job. He adds that he does things differently than a lot of other people in DurhamREI, as he manages all the properties himself, and does his own renovations and fixes. It gives him a chance to interact with his tenants. He also adds that he hasn’t remortgaged his properties. This has helped the properties go up substantially over time. As he has a low loan to value ratio, the income that he generates from the properties is really good. 

Talking about his house flipping experience, he says that following the first, the lesson that he learned was “the kind of flips I want to do in the future are kind of easy cosmetic flips on relatively small houses or condos.” His second experience was much more pleasant. He says that if you're going to flip, stage it just to the nines, and make it so unbelievably nice in terms of staging. After that, he managed to flip a few other properties, where he made decent profits, while getting to work on the properties with his son. 

There are two categories of MICs, one that pays about 3%, and one that pays about 15%. Then, you have to have equity in a property, and you have to take a mortgage out against this property. And the mortgage is taken out, the lender is the same company that runs these Mortgage Investment Corporations. All of the cash from step one is now lent out to be invested personally in non-registered investments. This can then be re-invested in exactly the same holdings as before or put into something entirely different. These mortgage investment corporations then pay money every month back into the RIF and back into the TFSA. As for the monthly mortgage payments, an equivalent amount is pulled out from the RIF every month for the mortgage payment, and this loop continues until all of the money from RRSP is transferred to TFSA, which you can pull out on tax-free basis.   

Topics Discussed

• Introduction [00:00]
• His Background and Experience in Real Estate Investing [01:24]
• How Was He Able to Retire After Losing His Job [04:02]
• How He Does Things Differently On His Investment Properties [05:52]
• How Much Time Does He Spend Managing His Properties [09:55]
• His Experience of Flipping Properties Over the Last Year [10:53]
• What is a TFSA Maximizer and How Does it Work? [22:37]

Important Links

• https://EducationREI.ca
• https://GetRealWealthy.com
• https://DurhamREI.ca

Episode Summary

In this episode, Quentin talks with a member who is who is upgrading to a larger principal residence, they need to move their properties from their personal name into a corporation in order to create qualification room.

The member shares that he started his real estate journey after attending a real estate conference. He started with student rentals, and over the years, he managed to build a portfolio of fifteen properties that includes student rentals, duplexes, single family homes and some condos as well. He says that as he purchased properties in his personal name, with a trust agreement to the corporation, now he is unable to qualify for a bigger mortgage when he wants to get a bigger house. Now, he wants to move some of his properties from his personal name into his corp.

He shares that when he was building his portfolio, he used his personal residence for my personal residence. So, now he has a huge credit line on his personal residence that as he moves this over, he is going to take those proceeds and pay himself back and free up debt on his personal name, so that he could buy a larger personal home. He adds that his primary objective is qualifying for a larger home, secondary is paying off his debt, refinancing and freeing up equity in those properties.

Quentin says that the member needs to look for a portfolio lender, that's going to take on all of those residential properties and bring them over. He suggests that the member should approach the commercial lending department versus the residential lending, and ask them to give a portfolio loan against all four at the same time. They have the same payment structures as a variable rate mortgage. The rates are higher, but they have the same of flexibility for selling one out of the portfolio. He adds that with the B lenders, the rates will be even higher.

He also adds that the challenge that the member will have is the student rental component, because that's not favourably looked on by the lenders. He says that another option for him would be credit unions, and they may be able to offer him different options as well. Quentin adds that his joint venture partners are going to have to qualify on those mortgages as well when he is bringing them over. If those are personally owned and not JV properties, then there shouldn't be an issue. In conclusion, Quentin suggest doing it in stages. Stage one is flip it over from personal to corporate, and then stage two, access equity later on.

Topics Discussed

• Introduction [00:00]

• His Background and Experience in Real Estate Investing [00:50]

• What is the LTV on the Properties He Wants to Move? [07:03]

• Is He Using the Smith Maneuver? [08:22]

• Does He Have a Bear Trust on the Properties He Wants to Move? [09:45]

• What are the Paperwork Requirements For the Process? [16:08]

Important Links

• https://EducationREI.ca

• https://GetRealWealthy.com

• https://DurhamREI.ca