59 episodes

Real estate investing in Canada can be confusing. You own your first home, but where do you go from here? How do you build your portfolio and your wealth? The confusion ends here.

Quentin DSouza is your host, an award-winning real estate investor and founder ofAppleridge Homes, which started with small single-family homes in 2008 and has grown to large apartment buildings and growing towards 100 million+ in assets under management.

On this podcast, you'll learn how to take your high-income, and your first home, andmove into the ultra-rich with our lessons from how Quentin and many others did it withreal estate investing.

Connect with Quentin at https://linktr.ee/qmanrei

Get Real Wealthy Quentin DSouza

    • Business
    • 4.9 • 34 Ratings

Real estate investing in Canada can be confusing. You own your first home, but where do you go from here? How do you build your portfolio and your wealth? The confusion ends here.

Quentin DSouza is your host, an award-winning real estate investor and founder ofAppleridge Homes, which started with small single-family homes in 2008 and has grown to large apartment buildings and growing towards 100 million+ in assets under management.

On this podcast, you'll learn how to take your high-income, and your first home, andmove into the ultra-rich with our lessons from how Quentin and many others did it withreal estate investing.

Connect with Quentin at https://linktr.ee/qmanrei

    7 Things I Would Have Done Different If I started Again

    7 Things I Would Have Done Different If I started Again

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

    • 10 min
    100% of $5,000 a Month in Cash Flow vs. 1% of $500,000 in Rents

    100% of $5,000 a Month in Cash Flow vs. 1% of $500,000 in Rents

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

    • 9 min
    The Basics of The BRRR Process

    The Basics of The BRRR Process

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

    Important Links
    https://educationrei.ca (https://EducationREI.ca)
    https://getrealwealthy.com (https://GetRealWealthy.com)
    https://durhamrei.ca (https://DurhamREI.ca)

    • 7 min
    BRRR - Buying RIGHT: The Key to the Success of BRRR Strategy

    BRRR - Buying RIGHT: The Key to the Success of BRRR Strategy

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

    Important Links
    https://educationrei.ca (https://EducationREI.ca)
    https://getrealwealthy.com (https://GetRealWealthy.com)
    https://durhamrei.ca (https://DurhamREI.ca)

    • 8 min
    BRRR - How to Renovate a Property For its Highest and Best Use

    BRRR - How to Renovate a Property For its Highest and Best Use

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

    Important Links
    https://educationrei.ca (https://EducationREI.ca)
    https://getrealwealthy.com (https://GetRealWealthy.com)
    https://durhamrei.ca (https://DurhamREI.ca)

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    • 8 min
    BRRR - How Does a BRRR Refinance Work?

    BRRR - How Does a BRRR Refinance Work?

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

    Important Links
    https://educationrei.ca (https://EducationREI.ca)
    https://getrealwealthy.com (https://GetRealWealthy.com)
    https://durhamrei.ca (https://DurhamREI.ca)

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    • 7 min

Customer Reviews

4.9 out of 5
34 Ratings

34 Ratings

Sharon Caetano ,

Phenomenal knowledge base with a practical application.

Quentin is down to earth, knowledgeable and easy to follow. Anyone who puts Quentin’s practical knowledge and suggestions into action is bound to do well in Real Estate Investing!

Investing with Purpose ,

Practical information for practical application

I appreciate Quentin’s podcast because his content offers real estate investors with very practical information, that is beneficial when put into practice.

Peterwilson99 ,

Very informative

I didn’t know much about inviting in real estate but Quentin explains information in a very clear way. He provides actual information that is needed to learn and leaves out all of the useless filler. Great podcast!

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