Real Estate Investing Morning Show ( REI Investment in Canada )

Wayne & Gabby Hillier | Canadian Real Estate Investing Coaches / Mentors
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"Real Estate Investing Morning Show" with Canadian investor power couple, Wayne and Gabby Hillier. We talk everything real estate. Joint Ventures, Landlording, Buying/Selling, Financing, Flipping, BRRRR, Multi-Family, Secondary Suites, Condominiums, Agreement For Sales, Rent to Own, Wholesaling. Not to mention, sharing routines and strategies that we've implemented into our lives that have helped us 10X our performance, our drive and our efficiency.

  1. 2d ago

    Are You A Real Estate Investor? What Would You Choose?

    This or That: Real Estate Investing Edition With Wayne and Gabby Hillier Cash flow or appreciation? One million-dollar property or five $200,000 properties? A tenant who always pays late or one who complains about everything? On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier switch things up with a fun and surprisingly educational round of This or That: Real Estate Edition. Gabby takes control of the show and challenges Wayne with 13 difficult real estate investing questions. The rules are simple. Wayne must choose one of two options, answer quickly, and isn't allowed to say "it depends." The live audience plays along, sharing their own answers and comparing them with Wayne's. But what starts as a lighthearted game turns into an interesting discussion about investing fundamentals, property management, risk, profitability, and why the best decision isn't always the most obvious one. 13 Difficult Real Estate Investing Questions Gabby challenges Wayne with a series of choices that force him to prioritize one investing outcome over another. Some seem straightforward. Others require balancing financial returns, operational challenges, and long-term investment risk. Here are the questions and Wayne's answers. 1. Cash flow or appreciation? Wayne chooses appreciation. It's a surprising answer considering how often he emphasizes the importance of purchasing cash-flowing properties. The distinction is that appreciation can be an important long-term profit centre, while cash flow provides the financial stability needed to hold an investment. 2. One $1 million property or five $200,000 properties? Wayne chooses one $1 million property. The game doesn't provide the additional information that would normally be needed to properly compare these investments. 3. Tenants with pets or tenants with kids? Wayne chooses tenants with pets. The choice is part of the rapid-fire game rather than a complete tenant selection recommendation. 4. A terrible house in a great neighbourhood or a great house in a terrible neighbourhood? Wayne chooses the terrible house in the great neighbourhood. His explanation is simple: he can improve the condition of a property, but he cannot change an entire neighbourhood. 5. A tenant who pays late every month or a tenant who complains about everything? Wayne chooses the tenant who consistently pays late. Both situations create additional work, but he considers predictable late payments easier to manage than constant, potentially costly complaints. 6. Free property for a year or free property management for life? Wayne chooses free property management for life. The potential long-term value of ongoing management services influences his decision. 7. Buy a property sight unseen or buy without an inspection? Wayne chooses buying sight unseen. He explains that purchasing remotely is something he already does, whereas obtaining appropriate property information and completing due diligence remain important. 8. A condo cash-flowing $500 per month or a detached house cash-flowing $200 per month? Wayne chooses the detached house. He acknowledges that both options have different risks and that cash flow alone is not enough to determine which is the better investment. 9. A tenant who never cleans or a tenant who never cuts the grass? Wayne chooses the tenant who never cuts the grass. 10. Never deal with another contractor or never deal with another tenant? Wayne chooses never dealing with another tenant again. 11. Own 100 rental properties with partners or 20 rental properties by yourself? Wayne chooses 100 properties with joint venture partners. He explains why sharing ownership in a larger portfolio may produce significantly greater financial benefits, particularly when the managing partner contributes expertise rather than acquisition capital. 12. A flooded basement or a broken furnace in January? Wayne chooses the broken furnace. After dealing with serious flooding problems, he considers a furnace failure the more manageable option, even during an Alberta winter. 13. A property that doubles in value but never cash flows, or a property that never appreciates but generates $1,000 per month? Wayne chooses the property generating $1,000 in monthly cash flow. This becomes one of the episode's most detailed discussions. Why a Bad House in a Good Neighbourhood Can Be Better One of Gabby's questions forces Wayne to choose between a terrible house in a great neighbourhood and a great house in a terrible neighbourhood. Wayne explains that neither option is automatically attractive. A poorly maintained house can require substantial repairs and renovations. However, those problems may be fixable. A bad neighbourhood is different. Even after investing money into the property, the surrounding location remains the same. That can influence rental demand, tenant appeal, resale potential, and the overall investment. Wayne emphasizes that he would still need to review the purchase price, renovation costs, rental income, and potential equity before making a real investment decision. The lesson is to consider which problems you can control and which ones you cannot. Why Wayne Would Rather Have a Tenant Who Pays Late Another surprising answer involves choosing between a tenant who consistently pays late and one who complains about everything. Wayne chooses the tenant who pays late. His reasoning is that the question specifies the tenant eventually pays. Late rent is frustrating, but it can be handled through an established management process. The landlord can communicate with the tenant, document the payment arrangement, and follow applicable procedures when necessary. A tenant who complains constantly may create more unpredictable demands. Some complaints may require additional repairs, correspondence, or expenses. Other situations may lead to dissatisfaction and eventual turnover. Wayne and Gabby explain that predictable problems are often easier to manage than unpredictable ones. They also emphasize the importance of developing clear property management systems rather than reacting differently to every issue. Why Wayne Would Choose 100 Properties With Partners Gabby asks whether Wayne would rather own 100 rental properties with joint venture partners or 20 properties entirely on his own. Wayne chooses 100 properties with partners. He explains that, under a typical 50/50 joint venture arrangement, the managing investor receives half the profits. If all properties were otherwise economically comparable, receiving half the profits from 100 properties would resemble receiving the full profits from 50 properties. Gabby adds another important consideration. In many joint venture arrangements, the money partner provides the down payment and financing while the managing partner contributes the deal, expertise, and management systems. That means the managing partner may receive a significant share of the profits without personally providing all the acquisition capital. Wayne acknowledges that managing 100 properties creates additional responsibilities. However, he believes the right systems, processes, and team can make a large portfolio manageable. Cash Flow vs Appreciation: The Big Debate The final question becomes the most important educational discussion of the episode. Would Wayne rather own a property that doubles in value but never generates cash flow, or one that never appreciates but produces $1,000 per month? He chooses cash flow. At first, this appears to contradict his earlier preference for appreciation. But Wayne explains why these are different questions. Real estate investing is about balancing profitability with financial risk. Appreciation can produce substantial wealth over time, but it is not available as cash until an investor sells or otherwise accesses the property's equity. Cash flow is different. Positive monthly cash flow can help pay for repairs, maintenance, vacancies, and other operating expenses. It gives investors the ability to continue holding a property when unexpected costs occur. Wayne argues that the ability to hold an investment long enough to benefit from appreciation is just as important as the potential appreciation itself. Comparing the Numbers Wayne works through an example involving a $500,000 property over 20 years. Option 1: The property doubles in value. If the property appreciates from $500,000 to $1 million, the gross appreciation is $500,000. However, the property produces no cash flow during the ownership period. Option 2: The property generates $1,000 per month without appreciating. At $1,000 per month, the property generates $12,000 annually. Over 20 years, that equals $240,000 in cumulative cash flow before considering changes in income, expenses, taxes, and other assumptions. Wayne acknowledges that the appreciation scenario appears more profitable based on those figures. But he argues that cash flow provides financial flexibility. An investor receiving rental profits may be better positioned to cover unexpected costs without continually contributing additional personal funds. An investor whose property does not cash flow may have to fund those costs from other income or savings. The risk is that the investor may eventually need to sell before realizing the anticipated appreciation. Don't Forget Mortgage Paydown Wayne also reminds listeners that real estate investing has another important profit centre. Mortgage principal repayment. As tenants pay rent and the landlord makes mortgage payments, part of those payments may reduce the outstanding loan balance. That increases the owner's equity. Both hypothetical properties could benefit from mortgage paydown, provided they are financed and the loans amortize as expected. Wayne explains why investors need to consider all the profit centres together rather than judging an investment based on a single num

    Are You A Real Estate Investor? What Would You Choose?

  2. 4d ago

    Can AI Do Your Taxes? How Real Estate Investors Can Save Time and Money

    Can AI Do Your Taxes? How Real Estate Investors Can Save Time and Money Artificial intelligence is changing the way Canadian real estate investors manage their businesses. But can AI actually do your taxes? And could it eventually replace your bookkeeper or accountant? On today's Canadian Real Estate Investing Morning Show, Wayne Hillier welcomes Steve Tsonev, managing partner at Finngo Bookkeeping & Tax, to discuss how artificial intelligence is transforming bookkeeping, accounting, and tax preparation. Steve explains that accounting firms have already been using automation and machine learning for many years. The biggest opportunity today isn't necessarily having AI prepare an entire tax return. It's using AI to solve one of the most frustrating problems accountants face: getting complete, accurate information from their clients. Wayne and Steve explore how investors can use connected email accounts, Google Drive, calendars, and other digital tools to locate missing receipts, organize records, and reduce the amount of time spent searching for financial documents. They also discuss privacy concerns, the limitations of AI, and why professional oversight remains essential. Why Your Accountant Is Still Waiting for Your Documents Wayne opens the discussion by explaining a problem he has noticed throughout his involvement with Finngo. Many investors assume that accounting firms spend most of their time processing financial transactions. But Steve explains that entering and categorizing transactions is often relatively straightforward. The bigger problem is obtaining all the supporting information required to complete a client's file. An accountant may identify several unexplained transactions, missing invoices, or expenses that require clarification. They send the client an email asking for the missing documents. Then they wait. Sometimes days turn into weeks or months. Meanwhile, the accounting team moves on to another client's work. When the missing information finally arrives, the original file needs to be reopened and reviewed. This creates unnecessary delays and makes the entire process less efficient. Accounting Firms Have Been Using AI for Years Steve explains that artificial intelligence isn't entirely new to the accounting industry. Before AI became a popular term, many of these tools were described as machine learning or automation. Accounting software such as QuickBooks Online has used connected bank feeds and automated transaction categorization for years. Instead of manually entering every transaction, accountants can import banking information and receive suggestions about how expenses should be categorized. These systems have continued improving. Modern accounting software can learn from historical transactions, identify recurring expenses, and suggest appropriate bookkeeping categories. But there is one important limitation. Software cannot always determine why a transaction occurred. For example, a bank statement might show a $50,000 withdrawal. Was that money used for a property down payment? Was it a repayment to a joint venture partner? Was it transferred between businesses? Without context or supporting documents, an accountant cannot reliably determine how to record the transaction. This is where newer AI capabilities may offer significant value. Using AI to Find Missing Receipts Wayne and Steve discuss a simple but powerful application of artificial intelligence. Imagine your accountant sends you a list of ten transactions that are missing receipts. Normally, you might need to search through multiple email accounts, download invoices, review Google Drive folders, and contact vendors. That process could take hours. With appropriately connected AI tools, investors may be able to search across several sources at once. For example, you could ask an AI assistant to look for an invoice from a particular contractor, an amount paid on a specific date, or documentation related to a particular rental property. The system may be able to identify relevant emails, attachments, calendar appointments, and stored documents. Instead of manually searching for every missing receipt, investors can use AI to help locate the information and then verify that it is correct. Steve explains that this could significantly reduce one of the biggest administrative obstacles in the tax preparation process. Understanding Transactions Across Multiple Businesses Another common problem occurs when investors move money between properties, bank accounts, or corporations. Wayne and Steve discuss how complicated this can become. A business owner might transfer money from one account into another, combine funds with another business, and then use that money to complete a real estate transaction. When the accountant reviews the bank statements, the transfers may not clearly indicate what happened. A connected AI assistant may help identify supporting evidence across emails, calendars, invoices, and transaction records. For example, it could find correspondence discussing an upcoming property purchase and connect that conversation to a bank draft issued around the same time. Steve explains that this contextual information can help accountants understand where the money went and how the transactions should be recorded. However, those connections still need to be verified rather than assumed to be correct. Wayne and Gabby's AI Bookkeeping System Wayne shares an example from his own real estate business. He and Gabby maintain a spreadsheet containing information about their investment properties, joint venture partners, and associated accounts. They have been developing workflows that help organize incoming documents according to the property they belong to. For example, when a contractor sends an invoice related to a particular rental property, their system can identify the property and save the invoice into the corresponding Google Drive folder. Previously, Gabby handled much of this process manually. She would spend hours reviewing emails, downloading invoices, renaming files, and organizing documents for bookkeeping. Now, some of that work can be automated. Wayne acknowledges that their system isn't perfect, but it has already reduced the amount of repetitive administrative work required. The goal is to have organized, property-specific records ready when their accountant needs them. Can AI Replace Your Bookkeeper? Wayne raises a question many business owners are beginning to ask. If AI can locate receipts, organize documents, and identify transactions, do we still need bookkeepers? Steve explains why he believes professional bookkeeping remains important. Modern accounting platforms already have reliable systems for maintaining financial ledgers, balancing transactions, and producing financial reports. Recreating those systems entirely through general-purpose AI may be unnecessarily complicated and inefficient. Instead, Steve sees the greatest opportunity in using AI alongside established accounting software. AI can help locate and organize information. Accounting software can maintain the books. Qualified professionals can review the results, identify inconsistencies, and ensure the records are accurate. The tools can work together rather than replacing one another. Why Human Oversight Still Matters Steve gives an example involving property insurance. Suppose AI automatically organizes all of an investor's documents. The accountant reviews the information and notices that a particular property's insurance expense is missing. Perhaps the insurance policy covers several properties. Or maybe the invoice was never received electronically. Even a sophisticated AI system may fail to identify that missing information. An experienced accountant can recognize that something doesn't make sense and ask the appropriate questions. Wayne emphasizes that investors should not assume an automated system is completely accurate simply because it appears to be working. Financial documents still need to be checked. The Privacy and Security Risks of AI One of the most important discussions involves connecting artificial intelligence to sensitive personal and business information. Wayne and Steve explain that AI tools may require access to email accounts, financial documents, and other private records to perform the tasks being discussed. That access introduces important privacy and security considerations. Steve explains that accounting firms have professional obligations to protect client information. Finngo maintains an internal AI policy and reviews it regularly as technology changes. He emphasizes that professional firms cannot simply connect confidential client information to any available AI platform without considering the consequences. Wayne agrees that investors need to research the tools they use and understand the permissions they are granting. Convenience is valuable, but it should not come at the expense of appropriate data protection. Why AI Bookkeeping Courses Can Become Outdated A listener asks whether Gabby could create a course teaching investors how to use AI for bookkeeping. Wayne explains why he is hesitant to offer that education as a complete system right now. AI technology is changing rapidly. A workflow that works today may be replaced by a more efficient method in just a few months. There is also the risk of teaching a process that accidentally overlooks important financial documents. Wayne and Steve agree that AI is valuable, but investors need to be prepared to monitor, test, and continually improve their workflows. For now, their focus is on helping people understand the opportunities while encouraging appropriate verification. Is AI Worth the Cost for a Small Investor? Near the end of the episode, Wayne asks Steve whether AI is practical for the average real estate investor. Steve believes it can be, but the cost needs to be

    Can AI Do Your Taxes? How Real Estate Investors Can Save Time and Money

  3. 5d ago

    How to Structure Joint Ventures for Maximum Cash Flow

    How to Structure Joint Ventures for Maximum Cash Flow What happens when your joint venture partner wants monthly income now instead of building wealth over the next 20 years? Most real estate investors focus on long-term equity growth, mortgage paydown, and appreciation. But not every investor is at the same stage of life or has the same financial priorities. Someone approaching retirement may be more interested in generating immediate passive income than maximizing long-term returns. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier continue a listener discussion about structuring joint venture partnerships for cash flow optimization. The listener has traditionally focused on long-term portfolio growth but is now considering a partnership with an investor who wants cash flow to supplement retirement income. Should they lower the loan-to-value ratio by putting more money down? Should they invest in smaller markets offering potentially higher rental yields? Or is there another strategy that would better suit the partner's goals? Wayne and Gabby explain how they would approach the situation, including the importance of reserves, how much rental income should be retained for property expenses, and why investors should be extremely cautious when promising monthly distributions. Cash Flow Is Primarily About Protecting Your Investment Wayne begins by explaining why he and Gabby prioritize cash flow in their own rental portfolio. For them, cash flow isn't necessarily money to spend every month. It's a financial safety net. They prefer to retain rental profits in reserve accounts so that money is available when unexpected expenses arise. That could include a vacant property, major repairs, replacing a furnace, or higher mortgage payments. This approach helps protect the investment and reduces the likelihood of being forced to sell during difficult market conditions. Wayne explains that investors who distribute their cash flow instead of saving it may be reducing the financial protection available to the property. However, that doesn't mean distributing cash flow is always inappropriate. It means the investment needs to be structured differently. Understand What Your Joint Venture Partner Actually Wants One of the first questions Wayne and Gabby suggest asking is whether the investor needs the monthly cash flow to cover essential living expenses or simply wants additional discretionary income. Those are two very different situations. For someone who relies on rental distributions to cover groceries, utilities, housing expenses, or other necessities, an interruption in cash flow could create serious financial problems. For someone who already has sufficient retirement income and simply wants additional money each month, the consequences may be less significant. Gabby emphasizes the importance of understanding the investor's stage of life and financial priorities before recommending a strategy. The right joint venture structure should reflect both partners' goals, financial circumstances, and tolerance for risk. Why Choosing the Right Joint Venture Partner Matters Wayne explains that he generally prefers working with joint venture partners whose goals align with his own. His investment strategy focuses on building long-term wealth through rental properties. That means retaining cash flow, maintaining reserves, and allowing mortgage paydown and potential appreciation to build equity. Someone who needs immediate income may have different expectations. Wayne cautions that investors shouldn't simply choose partners based on how much money they have available. Instead, they should look for compatibility in investment timelines, risk tolerance, cash flow expectations, and long-term objectives. However, Gabby points out that investors with different goals can still develop successful partnerships when those differences are understood and the investment is structured appropriately. The Risk of Promising Monthly Cash Flow One of Wayne's biggest concerns is promising a joint venture partner a specific monthly payment that the rental property may not always generate. Imagine a property producing $1,000 in monthly cash flow. Everything looks excellent when the investment begins. But what happens if interest rates increase, rent decreases, or the property sits vacant? That $1,000 could become $500, $200, or even a negative amount. For Wayne and Gabby's investment portfolio, a temporary reduction in cash flow is something they plan for. But an investor who relies on that income for essential expenses may not be able to absorb the interruption. Wayne explains why partners need to understand that rental property cash flow is not guaranteed. The property must retain enough money to continue operating successfully even when circumstances change. How Much Rental Income Should Be Set Aside? Wayne and Gabby share a basic reserve allocation framework for investors considering monthly cash flow distributions. They identify two major expense categories that must be planned for. 1. Vacancy allowance: 8% of monthly rental income This allowance is intended to build a reserve approximately equivalent to one month's rent each year. The assumption is that a tenant could leave after a one-year lease and the property might experience a month of vacancy before the next tenant moves in. Ideally, tenants remain much longer. When that happens, the reserve continues accumulating for future vacancies. 2. Repairs and maintenance: 4% of monthly rental income This allowance helps prepare for repairs, maintenance, and eventual replacement of building components. Appliances, furnaces, hot water tanks, roofs, flooring, and other property components all require attention over time. The amount required will vary depending on the property's age and condition. Older properties with aging mechanical systems may require a larger allowance. Together, these two categories create a suggested minimum reserve contribution of 12% of rental income. Wayne emphasizes that this is a minimum starting point for the particular scenario being discussed, not his preferred approach for most investors. He generally recommends following the 5% Rule Cash Flow Test and retaining as much rental cash flow as possible. Example: A Rental Property Collecting $2,000 Per Month Wayne and Gabby walk through a simple example. Assume a rental property collects $2,000 per month and produces $500 in monthly cash flow after regular operating and financing expenses. The reserve contributions would be: Vacancy reserve: 8% of $2,000 = $160 per month Repairs and maintenance reserve: 4% of $2,000 = $80 per month Total reserve contribution: $240 per month That leaves $260 per month in potentially distributable cash flow. Under a traditional 50/50 joint venture structure, each partner could receive $130 per month. These amounts are illustrative. Whether the distribution is appropriate depends on the property's actual expenses, expected capital expenditures, existing reserves, the partnership agreement, and each investor's financial circumstances. Why More Money Down Can Increase Cash Flow The listener asks whether reducing the loan-to-value ratio would be a good strategy for a partner who prioritizes monthly cash flow. Wayne believes this can be a useful approach. Most investors try to put down the minimum amount required because using less capital can improve their percentage return on investment. But someone prioritizing immediate income may have different goals. By putting more money down, the investor reduces the amount being financed. A smaller mortgage generally means lower mortgage payments. And lower mortgage payments can create more monthly cash flow. Wayne suggests that a partner primarily focused on immediate income might consider a 30% or 40% down payment rather than the traditional 20%. The trade-off is that more capital becomes tied up in the property, potentially reducing the percentage return on the money invested and limiting how quickly the portfolio can grow. Long-Term Investing Can Create More Cash Flow Later Wayne also offers an alternative for investors who don't need immediate distributions. Instead of putting a larger down payment toward one property, an investor could focus on building a conventional rental portfolio and retaining its cash flow. Over time, mortgage principal may decline, rental income may increase, and the property may generate significantly more cash flow. Wayne discusses the possibility of waiting approximately 15 years before beginning to draw income from the portfolio. By that point, a property may have accumulated substantial reserves and greater cash flow, depending on market performance and operating conditions. This is the approach Wayne and Gabby prefer for their own long-term investment strategy. Should You Invest in Smaller Markets for Higher Yields? The listener also asks whether investing in smaller secondary markets might generate better cash flow. Gabby challenges the assumption that smaller markets automatically produce higher yields. A lower purchase price doesn't necessarily mean a better investment. Wayne explains that smaller communities may have more concentrated economies, fewer major employers, and smaller pools of prospective tenants. These characteristics can increase the impact of economic changes. A property might produce excellent cash flow today but become more difficult to operate if local employment declines or rental demand weakens. Wayne generally prefers larger, economically diversified markets that he believes are better positioned to withstand difficult periods. His recommendation is to look for strong cash flow in a sustainable market rather than accepting additional market risk simply to generate a higher advertised yield. Why Market Sustainability Matters Wayne and Gabby emphasize the importance of choosin

    How to Structure Joint Ventures for Maximum Cash Flow

  4. Oct 30

    5 Things to Consider Before Investing Out of Province in Canada

    Investing Out of Province in Canada: 5 Things You Need to Know Should you buy your first rental property in your hometown, or could investing in another province be a better decision? For many Canadians living in expensive housing markets, purchasing an investment property close to home is becoming increasingly difficult. High property prices, substantial down payment requirements, and limited rental cash flow can make it challenging to find properties that generate acceptable returns. But does buying a property thousands of kilometres away create even bigger risks? On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier answer an email from a 24-year-old aspiring investor living just north of Toronto. The listener wants to purchase his first rental property and has been researching opportunities outside Southern Ontario, particularly Edmonton, Alberta. He asks whether he should start with a property within driving distance, consider smaller Ontario markets like Windsor, Kingston, or Belleville, or take the leap and purchase an investment property in another province. Wayne and Gabby explain the most important considerations for investing out of province, including market selection, cash flow, landlord-tenant legislation, building a local team, and managing rental properties remotely. Why Your Local Market Isn't Always the Best Market Wayne begins with an important question. Why do you want to invest outside your province? Purchasing a rental property close to home certainly has advantages. You understand the area, you're familiar with local neighbourhoods, and you can visit your property when necessary. But convenience should not be the deciding factor when choosing where to invest. Wayne explains that a rental property should be evaluated as a business. If local property prices are too high relative to rental income, the investment may not generate sufficient cash flow to support itself. He uses the Toronto market as an example. A property costing $900,000 could require a $180,000 down payment at 20%. If the achievable rent cannot cover the mortgage, taxes, insurance, maintenance, and other expenses, the property may require ongoing financial support from the investor. Wayne argues that investors shouldn't force a property purchase simply because they want to invest in their own backyard. 1. Understand Your Reason for Investing Out of Province Before researching another city, investors need to understand exactly what they're hoping to accomplish. Are you looking for better cash flow? Higher long-term returns? More affordable purchase prices? A stronger rental market? More favourable landlord-tenant laws? Wayne explains that investing out of province introduces additional responsibilities, so there needs to be a compelling reason to do it. For his own portfolio, the objective is to achieve strong returns while minimizing financial risk. He emphasizes the difference between cash flow and return on investment. Cash flow helps protect the investment during difficult periods. Overall return on investment determines how effectively the invested capital is building wealth. Both matter, but they serve different purposes. 2. Follow the Five Fundamentals of Real Estate Investing Wayne shares the Five Fundamentals he teaches through the REI Masters Mentorship Program. These principles help investors evaluate whether a market and property align with a sustainable long-term investing strategy. Fundamental 1: Cash Flow From Day One A property should generate positive cash flow after accounting for its operating and financing expenses. Cash flow provides a financial buffer when unexpected problems arise. Fundamental 2: Profit Without Relying on Appreciation Wayne prefers investments that can generate acceptable returns even if property values don't increase. Investors should not rely exclusively on the hope of selling for a higher price. Fundamental 3: Strong Landlord-Tenant Legislation The legal environment matters. Investors need to understand their rights and obligations, including procedures involving unpaid rent, tenancy termination, dispute resolution, and eviction. Fundamental 4: A Great Tenant Profile Properties should attract the type of tenants an investor wants to rent to. Understanding the neighbourhood, local employment opportunities, rental demand, and suitable property types is essential. Fundamental 5: Long-Term Growth Potential Wayne also wants properties in markets with strong economic fundamentals and potential for future appreciation. The goal is to combine current profitability with sustainable long-term growth. The 5% Rule Cash Flow Test Wayne explains why the 5% Rule Cash Flow Test is one of his first considerations when evaluating an investment property. The framework compares annual cash flow against a benchmark investment amount based on a 20% down payment. Wayne's general benchmarks are: 5% to 6%: Sufficient cash flow 7% to 9%: Strong cash flow 10% or higher: Excellent cash flow The objective is to identify properties with enough cash flow to help withstand changes in operating costs, mortgage expenses, and rental income. The test is a screening tool, not a guarantee against investment losses. 3. Research the Entire Market, Not Just Property Prices Wayne explains that researching another province requires much more than finding affordable houses. Investors need to understand the city, its economy, individual neighbourhoods, and the types of rental properties that attract suitable tenants. An inexpensive property isn't necessarily a good investment. The neighbourhood may have weak rental demand or limited employment opportunities. A property may look affordable but require substantial repairs. Or the local rental market may not support the expected rental income. Wayne recommends researching: Local employment and major industries Economic stability and diversification Confirmed infrastructure and development projects Population growth and migration Rental supply and demand Market rents for specific property types Neighbourhood characteristics and rental demand Long-term housing demand Property values and potential for appreciation He also encourages investors to distinguish temporary economic activity from sustainable growth. For example, a major construction project may attract workers for several years. But what happens when that project is completed? Will those workers remain in the community, or will they leave when their employment ends? Wayne prefers markets with stable, diversified employment opportunities that can continue supporting population growth and housing demand. Why Wayne Prefers Larger Cities Wayne explains that he generally prefers investing in larger cities rather than smaller communities. Larger markets often have more diversified economies, broader employment opportunities, and deeper rental demand. Smaller markets may offer attractive prices or strong returns, but they can be more vulnerable to changes in a particular industry or employer. That doesn't mean smaller markets cannot produce successful investments. It means investors need to understand the additional risks and determine whether the potential returns justify them. 4. Understand Provincial Laws, Financing, and Taxes One of the biggest differences between investing locally and investing out of province is the legal and regulatory environment. Wayne discusses why landlord-tenant legislation is a major consideration in his investment strategy. Different provinces have different rules governing tenancy agreements, rent increases, evictions, and dispute resolution. Those differences can influence an investor's financial exposure and ability to resolve problems. Wayne encourages investors to research the applicable residential tenancy legislation rather than assuming the rules are the same across Canada. Investors should also examine financing options, closing costs, provincial taxes, and other expenses that may affect the investment. A property with an attractive purchase price may become less appealing after accounting for all ownership and operating costs. 5. Build a Reliable Local Real Estate Team The listener also asks how important it is to have a good local realtor and property manager when investing across the country. Wayne's answer is that having the right local team is essential. When you cannot easily visit a property yourself, you need reliable professionals who understand the local market and can respond when problems occur. Wayne recommends developing relationships with: An investor-focused local real estate agent A knowledgeable mortgage broker Reliable plumbers, electricians, and other contractors A trustworthy handyman Professional cleaning services A qualified property manager, if you choose not to self-manage These professionals can help investors evaluate opportunities, coordinate repairs, manage property maintenance, and deal with issues without travelling across the country. Gabby adds that online investor communities have made finding reliable local professionals easier than ever. The key is to obtain recommendations, verify credentials, and build relationships before they're urgently needed. Should You Hire a Property Manager or Self-Manage? Wayne and Gabby explain that they have managed their own rental property portfolio remotely for many years. Some of their properties are located hours away from where they live. Their approach relies on established systems, reliable local contractors, and clearly defined management processes. Wayne explains that professional property management can be an excellent option for investors who don't have the time or confidence to handle operations themselves. However, property management fees and additional charges need to be incorporated into the investment analysis. He also discusses Gab

    5 Things to Consider Before Investing Out of Province in Canada

  5. Oct 29

    Secrets To Finding Great Tenants - Gabby Hillier

    Secrets To Finding Great Tenants - Gabby Hillier Are you actually reading your prospective tenants' credit reports, or are you just checking their credit scores? For many landlords, tenant screening consists of reviewing an application, verifying income, checking references, and looking for a satisfactory credit score. But according to experienced landlord and property manager Gabby Hillier, there's much more valuable information hiding inside those credit reports. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier discuss some of the tenant screening strategies Gabby has developed over more than 15 years of managing rental properties. Following Gabby's appearance as a guest speaker at a FrontLobby tenant screening webinar, the conversation focuses specifically on how to interpret credit reports, assess an applicant's financial obligations, recognize recent borrowing activity, and look beyond the credit score when selecting tenants. If you own rental properties in Canada, this episode offers practical insight into how experienced landlords evaluate applications and manage tenant selection risks. Why Credit Scores Don't Tell the Whole Story Most landlords understand that reviewing a prospective tenant's credit history is an important part of the application process. But Wayne and Gabby explain that many investors don't fully understand what they're reviewing. They obtain the credit report, look at the credit score, and decide whether the applicant has passed or failed. Gabby believes this approach overlooks some of the most important information available. A credit score provides a general indication of creditworthiness, but it doesn't necessarily tell a landlord everything about the applicant's current financial situation. A person might have a strong credit score while carrying substantial debt. Another applicant may have a lower score because of past circumstances that are no longer affecting their finances. Gabby explains why landlords need to understand the information behind the number. Using Credit Reports to Verify an Application Before even examining an applicant's financial history, Gabby reviews the personal information contained in the credit report. She compares the applicant's legal name and address history with the information provided on the rental application. This helps identify inconsistencies that may need clarification. Gabby emphasizes that credit reports are only one component of the process. She also verifies identification and requests supporting documentation to confirm that the applicant's circumstances match what they've disclosed. The objective is to make an informed decision using multiple reliable sources of information rather than relying on a single report. Understanding Credit Utilization One of the most important sections Gabby reviews involves an applicant's credit accounts and outstanding balances. Credit utilization refers to how much available revolving credit an individual is currently using. For example, someone might have access to $20,000 in credit and carry a balance of $19,000. That tells a different story from someone who has the same credit limit but only owes $1,000. Gabby examines available credit, outstanding balances, and reported loan obligations to better understand the applicant's financial commitments. She also considers installment loans, including vehicle financing and other personal loans. The goal is to determine whether an applicant has sufficient financial flexibility to manage their rent alongside their existing obligations. A Real Tenant Application With Significant Debt Wayne and Gabby discuss a recent rental application that initially looked excellent. The applicant had strong income, good communication, and appeared to be a suitable match for the property. The rent was approximately $1,500 per month, and the applicant reportedly earned around $120,000 annually. Based on income alone, affordability appeared promising. However, the credit report revealed additional financial obligations. The applicant had a vehicle loan of approximately $70,000 and roughly $65,000 in additional credit accounts and loans, much of which was already utilized. Those obligations could translate into substantial monthly debt payments. Wayne explains why someone who earns $120,000 annually may still experience financial pressure if a significant portion of their income is committed to servicing existing debts. The lesson is that landlords should not evaluate affordability using income and rent alone. They should also consider the applicant's broader financial commitments. Available Credit vs Outstanding Debt Gabby makes another important distinction. Having access to a large amount of credit is not the same as actually owing that amount. For example, an applicant with $100,000 in unused available credit may have much more financial flexibility than someone who has borrowed nearly all of it. Gabby explains that she would not automatically reject an otherwise strong applicant simply because they have access to substantial credit. However, she considers whether the applicant's financial situation could change if that credit were heavily utilized. Tenant screening is about evaluating the overall picture rather than treating any single number as an automatic approval or rejection. One of Gabby's Favourite Sections: Credit Inquiries Gabby explains why one of her favourite sections of the credit report is the section showing recent credit inquiries. This information can reveal when an applicant has applied for certain credit products. The dates and types of inquiries can help landlords understand whether the individual has recently been seeking additional financing. Gabby particularly looks for clusters of recent inquiries involving high-interest lenders, payday loan providers, and other sources of short-term borrowing. These may warrant additional questions about the applicant's current financial situation. She also explains why context matters. Multiple inquiries related to shopping for a vehicle loan may have a reasonable explanation. An older period of financial difficulty may be less relevant if the applicant's recent payment history and finances demonstrate improvement. The goal is not to make assumptions about someone based on a single credit inquiry. It's to recognize patterns, investigate relevant concerns, and understand whether the applicant appears financially stable today. Hard Credit Checks vs Soft Credit Checks Wayne and Gabby also discuss the difference between hard and soft credit inquiries. Hard inquiries commonly occur when someone applies for certain forms of credit and may affect their credit score. Soft inquiries generally don't affect a person's credit score. This distinction is important because prospective tenants sometimes express concern that a landlord's credit check could lower their score. Landlords should understand the type of inquiry performed by their screening provider and explain it accurately to applicants. Looking at Someone's Financial History and Current Situation Throughout the conversation, Wayne and Gabby emphasize two important considerations. The first is an applicant's history. Have they generally met their financial obligations? Do their reported accounts show a consistent pattern of responsible payments? The second is their current circumstances. Are they carrying unusually high balances? Have they recently applied for multiple loans? Are there indications that their financial obligations may be difficult to manage? By considering both, landlords can develop a more complete picture of the applicant's finances. Why Past Financial Problems Don't Always Mean Future Problems Wayne and Gabby also explain that not every applicant with a difficult financial history should automatically be rejected. People go through challenging circumstances. Sometimes someone experiences financial difficulties because of a change in employment, an unexpected expense, or another life event. Gabby explains that she considers the context, how long ago the problem occurred, and what the applicant's financial situation looks like today. Wayne adds that they have occasionally accepted applicants while recognizing that certain aspects of their history presented additional risk. The key is making deliberate, informed decisions rather than ignoring concerns or assuming that past events will necessarily repeat. Why Good Systems Matter More Than Fancy Software Gabby reflects on being invited to speak at FrontLobby's tenant screening webinar despite not personally using the platform in her property management business. She explains that she and Wayne have established their own screening and management systems over the years. Wayne emphasizes that screening platforms and software can be useful, but their effectiveness depends on how people use them. A tool cannot replace judgment, proper verification, or a thorough understanding of tenant selection. The objective is to build an effective, consistent screening process using the tools and systems that make sense for your business. What Is FrontLobby? FrontLobby provides tenant screening, rent reporting, and debt recovery services for landlords. Gabby participated in a FrontLobby webinar about common tenant screening mistakes and shared her experience as a landlord. The discussion highlights why credit reports and screening tools can be useful resources, but landlords still need to know how to interpret the information they receive. The Goal of Tenant Screening Wayne closes the discussion by returning to the most important objective. Landlords want tenants who can afford the rent, communicate responsibly, and fulfill their obligations under the lease. No screening process can predict the future or eliminate every possible risk. However, reviewing financial information thoroughly, verifying documentation,

    Secrets To Finding Great Tenants - Gabby Hillier

  6. Oct 28

    Should I Buy a Rental Property Right Now With This Crappy Rental Market?

    Should I Buy a Rental Property Right Now With This Crappy Rental Market? Is now a bad time to buy a rental property in Edmonton? With rental vacancies becoming more challenging, additional rental supply entering the market, and winter approaching, many Canadian real estate investors are questioning whether they should continue purchasing properties or wait until conditions improve. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier answer an excellent listener question about buying a second investment property during a slower rental market. The listener already owns a suited property and is considering purchasing a townhouse but is concerned about finding tenants during the winter months. Should they buy now, potentially face a longer vacancy, or wait until spring? Wayne and Gabby explain why there are advantages and disadvantages to both approaches, how they manage seasonal vacancies in their own portfolio, and why waiting for the perfect time to buy could mean missing an excellent investment opportunity. The episode also covers condominium document reviews, utility billing strategies for suited properties, and an update on the REI Masters Costa Rica Retreat. Is It a Bad Time to Buy a Rental Property? The main question comes from a listener who has been following the Morning Show for almost a year. They currently own a property with a secondary suite and are considering adding a townhouse to their portfolio. Their biggest concern is timing. With fewer tenants looking for rental properties during the fall and winter, should they purchase a property in October or wait until December or January and arrange possession for April or May? Wayne and Gabby agree that the concern is legitimate. Rental activity is seasonal, and fewer people typically want to move during the coldest months of the year. However, they explain that the rental market is only one part of the equation. Investors also need to consider the conditions in the real estate sales market. Why Winter Can Be a Great Time to Buy Wayne explains that the same seasonal factors that make finding tenants more challenging can also create opportunities for property buyers. During the spring and summer, the real estate market often experiences stronger buyer demand. More buyers compete for available properties, which can make negotiations more difficult. During the colder months, fewer people are actively purchasing homes. Properties may sit on the market longer, sellers may become more motivated, and investors can sometimes negotiate more favourable terms. That can mean paying less for a property or avoiding multiple-offer situations. Wayne explains that a strong investment opportunity doesn't always appear when it's convenient. You need to be actively looking so that you're prepared to act when the right property becomes available. The Trade-Off Between Purchase Price and Vacancy Gabby acknowledges that purchasing a vacant rental property in December or January may create additional holding costs. It could take longer to find a suitable tenant. That means carrying the mortgage, condominium fees, utilities, insurance, and other expenses without rental income. However, investors should compare those potential costs against the savings they might achieve when purchasing the property. If an investor can negotiate a significantly better purchase price during the slower season, the long-term financial benefit may outweigh the temporary cost of vacancy. The important thing is to account for those potential costs before purchasing. A lower price is only valuable if the property still makes sense financially. Why You Should Always Be Looking for Deals Wayne emphasizes that investors shouldn't restrict their property searches to certain months of the year. A great investment opportunity may appear in October, January, May, or August. Waiting until spring doesn't guarantee that a suitable property will be available. It could also mean competing against more buyers. His recommendation is to analyze opportunities throughout the year and make decisions based on the quality of the investment rather than simply the season. Investors should have their financing, criteria, and analysis systems ready so they can act when a property meets their requirements. How to Avoid Winter Rental Vacancies One of the most practical lessons from today's episode concerns structuring lease terms. Wayne and Gabby explain that they prefer having their rental property leases expire during the spring and summer months. Those months typically offer a larger pool of prospective tenants and more favourable moving conditions. But what happens if you purchase a property in December and secure a tenant for January? A standard 12-month lease would expire the following January, potentially creating another vacancy during the slowest time of year. Gabby shares a strategy they use in their own rental portfolio. Instead of signing a standard 12-month lease, they may offer a longer initial term, such as 16, 17, or 18 months. This allows the lease to expire during a more favourable rental season. If the tenant renews, the landlord can then return to a standard 12-month lease cycle. It's a simple strategy that can improve the timing of future rental turnovers. Why Shorter Leases Aren't Always the Answer Some landlords consider signing six- or seven-month leases when filling winter vacancies. The idea is to bring the lease expiration date into the spring or summer. However, Wayne and Gabby generally prefer longer initial leases. A short lease can create another vacancy only a few months after the property was first rented. That may lead to additional advertising, cleaning, turnover expenses, and periods without rental income. Gabby also discusses Alberta's rent increase rules. Landlords cannot simply sign a six-month lease and automatically increase the rent when it expires. Applicable notice requirements, the length of time since the last increase, and the type of tenancy must all be considered. The takeaway is to understand the legal and financial consequences before choosing a lease term. Good Tenants Are Still Looking Despite discussing the challenges of the rental market, Wayne and Gabby share positive news from their own portfolio. They have filled several vacancies recently and received applications from strong prospective tenants. Their first garden suite tenant also moved in earlier than expected. This is particularly encouraging because they are operating during a slower seasonal rental period. Wayne explains that a smaller tenant pool doesn't mean there are no suitable tenants. People still relocate for employment, family circumstances, and other reasons throughout the year. The challenge is making sure your property stands out and your advertising reaches the right applicants. Why Rental Marketing and Tenant Selection Matter Wayne discusses the importance of marketing rental properties effectively, particularly when prospective tenants have many options. It's not enough to simply publish a listing and hope someone applies. Landlords need to understand what tenants are looking for and how to communicate the advantages of their properties. They also need effective systems for reviewing applications, communicating with prospective tenants, and completing leases. Wayne shares an example involving an applicant who was interested in a rental property but delayed signing the lease. Until the agreement is completed, there is still uncertainty. Landlords should maintain clear expectations and avoid assuming that verbal interest guarantees a completed tenancy. Should You Install Separate Utility Meters in a Suited Property? Another listener asks about installing individual utility meters in legally suited rental properties. Wayne and Gabby explain that they generally prefer charging tenants a flat monthly utility amount rather than installing separate meters. Under their system, the utility accounts remain in the landlord's name. They review historical consumption, calculate the average expenses, and establish a flat utility charge with a reasonable buffer. This can produce additional income when the amounts collected exceed actual utility costs. Installing separate meters may make billing more convenient, but the installation costs need to be considered. Wayne and Gabby explain that they use a similar approach in their multi-unit garden suite developments. The key is understanding the property's actual utility consumption and ensuring the billing arrangement complies with applicable rules and lease terms. Can You Review Condo Documents Before Making an Offer? The original listener also asks an important question about purchasing a condominium townhouse. Can you review the condominium corporation's documents before submitting an offer? Wayne explains that buyers can sometimes obtain existing documents from sellers, owners, or other residents before making an offer. However, those documents may not be current. He prefers submitting an offer that includes an appropriate condition allowing time for condominium document review. Once the offer is accepted, the buyer can obtain and review the necessary documents before deciding whether to remove the condition. Important documents include: Current condominium bylaws Financial statements Reserve fund information and studies Annual general meeting minutes Board meeting minutes Condominium fees and budgets Information about special assessments and outstanding issues Wayne emphasizes that buyers should complete proper due diligence rather than relying exclusively on older documents or informal conversations. A properly drafted conditional offer can allow investors to secure an opportunity while completing necessary investigations. The ability to terminate an agreement and recover a deposit depends on the contract's specific conditio

    Should I Buy a Rental Property Right Now With This Crappy Rental Market?

  7. Oct 27

    The Best Real Estate Investing Advice If You're Struggling

    How to Overcome Your Fear of Real Estate Investing What's stopping you from buying your first rental property? For many aspiring real estate investors, it isn't necessarily money, financing, or finding the right opportunity. It's fear. Fear of making a mistake. Fear of losing money. Fear of bad tenants. Fear of buying the wrong property. And sometimes, simply the fear of not knowing what could go wrong. On today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier tackle one of the most common challenges facing new and experienced investors: overcoming the fears that prevent them from taking action. Drawing on more than 15 years of investing experience and countless coaching conversations, Wayne shares the concerns he hears most frequently and explains how education, careful planning, cash flow, and strong business systems can help investors manage those risks. Gabby also reflects on the fears she experienced when they began their own real estate investing journey and how knowledge and experience gradually changed her perspective. This episode isn't about pretending real estate investing is risk-free. It's about understanding what can go wrong, preparing for those situations, and developing the confidence to move forward. Why So Many Investors Never Buy Their First Property Wayne opens the episode by sharing a recent coaching conversation with an aspiring investor. The individual had spent considerable time learning about real estate investing, watching others purchase rental properties, and developing an understanding of the business. Yet despite feeling knowledgeable and prepared, he still couldn't bring himself to purchase his first investment property. Wayne explains that this is an incredibly common situation. Many aspiring investors spend years researching markets, analyzing opportunities, attending seminars, and learning strategies without ever taking meaningful action. Sometimes they know exactly what they're afraid of. Other times, they simply have an overwhelming feeling that something could go wrong. Wayne's approach is to identify those fears individually, determine whether the risks are realistic, and develop a plan for managing them. Gabby Shares Her Own Experience With Fear Gabby explains that she was extremely anxious when she and Wayne first started investing in real estate. While Wayne appeared confident about moving forward, she struggled with uncertainty about what they were getting into. There were so many unknowns. She didn't fully understand how everything worked or what would happen if something went wrong. Looking back, Gabby recognizes how much of that fear came from a lack of experience and information. Today, after years of managing rental properties, purchasing investments, and handling challenging situations, she approaches those same concerns very differently. Her experience reinforces an important point. Confidence often develops through education, preparation, and experience rather than appearing overnight. Confidence vs Ignorance Wayne makes an important distinction between confidence and recklessness. He explains that his confidence never came from believing he knew everything about real estate investing. Instead, he believed in his ability to find answers. When he encountered something unfamiliar, he would research it, ask questions, seek professional guidance, and develop a solution. That willingness to be resourceful allowed him to move forward without pretending that risks didn't exist. For aspiring investors, this means developing the ability to recognize what they don't know and finding reliable sources of information before making important decisions. What If I Buy the Wrong Property? One of the biggest fears among new investors is purchasing a property that turns out to be a poor investment. A listener shares concerns about eventually converting her current residence into a rental property. Wayne explains that a home purchased primarily as a personal residence may not necessarily perform well as an investment property. The financing, purchase price, amortization, operating expenses, and achievable market rent may not produce the cash flow needed to make it a strong rental. Rather than assuming the property will work, investors should run the numbers. Wayne discusses why understanding rental demand, cash flow, and the 5% Rule Cash Flow Test is essential before purchasing an investment property. He also emphasizes that making a less-than-ideal decision in the past doesn't mean someone cannot improve their investment strategy moving forward. What If My Tenant Doesn't Pay Rent? This is one of the most common concerns for prospective landlords. Wayne explains that no screening process can guarantee a tenant will always pay rent. Even an applicant with good credit, stable employment, strong references, and a history of making payments could eventually stop paying. The goal is not to eliminate every possible risk. It's to reduce the likelihood of problems and understand the appropriate response if they occur. That includes: Thorough tenant screening Verifying employment, income, and references Understanding applicable landlord-tenant legislation Maintaining accurate documentation Following proper procedures when rent is unpaid Having financial reserves available to cover temporary shortfalls Knowing how to respond can make unexpected situations far less intimidating. What If the Tenant Trashes My Property? Property damage is another concern that prevents some people from becoming landlords. Although the episode does not go into a detailed damage-recovery process, Wayne identifies this as one of the fears investors need to plan for. Proper screening, inspections, documentation, adequate insurance, and maintenance reserves are all important parts of protecting a rental property business. Landlords should also understand their legal rights and responsibilities before renting a property. What If Interest Rates Go Up? Wayne discusses why rental properties should be purchased with sufficient cash flow to withstand changing financing costs. For example, an investment property generating $500 per month in cash flow may have some room to absorb a $200 monthly increase in mortgage expenses. The remaining cash flow would be approximately $300 per month, assuming everything else stayed the same. This doesn't make rising interest rates harmless. It demonstrates why purchasing properties with a reasonable financial cushion can help protect investors from being forced to sell when financing costs increase. What If Rental Prices Go Down? Rental markets are constantly changing. New construction, increased supply, shifting demand, and broader economic conditions can all influence market rents. Wayne explains that investors should be prepared for rents to soften. If a property generates strong cash flow when purchased, the investor may have more flexibility to lower the rent when necessary. A property operating with little or no cash flow has much less room to absorb unexpected changes. This is one reason Wayne places so much importance on buying properties that pass his 5% Rule Cash Flow Test. What If the Roof Needs Replacing? Wayne gives a straightforward answer to this common fear. Eventually, it probably will. Roofs, furnaces, hot water tanks, appliances, and other property components have finite useful lives. Replacing them is a normal part of owning rental real estate. Rather than worrying about whether major repairs will eventually happen, landlords should prepare financially for them. Wayne recommends directing rental cash flow into reserve funds so money is available when significant repairs are necessary. He emphasizes that having sufficient reserves can make the difference between an inconvenience and a financial emergency. What If My Property Doesn't Appreciate? Another common concern is purchasing a property that doesn't increase in value. Wayne explains that one of his core investing fundamentals is to avoid relying on appreciation to make an investment successful. Instead, he prefers purchasing properties that generate cash flow from the beginning. Although property values can increase over time, appreciation is uncertain. By prioritizing cash flow, investors can build an investment strategy that isn't entirely dependent on selling a property for more than they paid. What If I Can't Find a Tenant? Vacancy is another important risk. Wayne explains that investors need to purchase properties people actually want to rent. That means choosing appropriate markets, neighbourhoods, property types, and tenant profiles. A low purchase price does not automatically make a property a good investment. The property also needs to attract suitable tenants at a rent that supports the investment's financial performance. Understanding rental demand before purchasing can reduce vacancy risk, although no property is guaranteed to remain occupied. The 5% Rule and Five Fundamentals Throughout the episode, Wayne repeatedly returns to the principles he teaches through REI Masters. His Five Fundamentals help investors evaluate cash flow, market quality, tenant demand, landlord-tenant legislation, and long-term growth potential. The 5% Rule Cash Flow Test helps investors assess whether a property provides an appropriate return relative to the capital invested. These frameworks are designed to help investors make more consistent decisions and manage risk. Wayne emphasizes that strong cash flow and adequate reserves provide investors with more options when unexpected situations occur. Stop Worrying About What You've Already Done Wayne also addresses investors who regret previous decisions. Some people purchase properties before fully understanding the numbers. Others follow advice that turns out to be unsuitable for their particular circumstances. Wayne encourages tho

    The Best Real Estate Investing Advice If You're Struggling

  8. Oct 26

    How I'd Grow a Canadian Real Estate Portfolio With $0 in 2026

    How I'd Grow a Canadian Real Estate Portfolio With $0 in 2026 How to Build a $1 Million Real Estate Portfolio Starting With $0 Can you really build a million-dollar real estate portfolio without using your own money? According to Wayne Hillier, absolutely. And he's spent more than 15 years proving that it's possible. On today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby break down how they would approach building a Canadian real estate portfolio from scratch in 2026 and 2027. Wayne shares two strategies he has personally used to acquire properties with little to none of his own money, explains why some popular investing strategies aren't realistic for beginners without capital, and identifies three Canadian markets he believes offer opportunities in the current economic environment. Plus, Wayne and Gabby officially announce their upcoming REI Masters Costa Rica Retreat. Can You Really Invest in Real Estate With $0? One of the biggest obstacles preventing Canadians from getting started in real estate investing is the belief that they need substantial savings. Between down payments, closing costs, financing requirements, and unexpected expenses, purchasing investment properties can feel out of reach. And even investors who have enough money to purchase their first rental often discover they don't have enough capital to purchase their second or third. Wayne explains that creative financing becomes increasingly important as investors try to scale. He shares that, throughout their investing journey, he and Gabby have used approximately $15,000 of their own money to build their multimillion-dollar real estate portfolio. The remainder of their acquisitions have been funded using strategies that involve partners and alternative financing arrangements. These strategies require education, experience, planning, and an understanding of their risks, but they can offer alternatives to funding every property purchase personally. Why the BRRRR Strategy Isn't the Best Starting Point With $0 The BRRRR strategy is one of the most widely discussed methods of building a real estate portfolio. It involves purchasing a property, renovating it, renting it, refinancing based on its new value, and potentially repeating the process. When executed successfully, investors may be able to recover some or all of their initial capital through refinancing. But Wayne highlights one major problem for someone starting with no money. You still need money to begin. The down payment, renovations, carrying costs, and other acquisition expenses must generally be funded before a refinance can occur. For that reason, Wayne doesn't consider BRRRR the ideal starting strategy for someone who genuinely has no capital. Instead, he focuses on two alternatives. Strategy #1: Joint Venture Partnerships The first strategy Wayne recommends learning is joint venture investing. A joint venture involves two or more people contributing different resources toward the purchase and operation of an investment property. In the structure Wayne describes, one partner provides the money and financing, while the other contributes the opportunity, real estate investing expertise, and ongoing management. The partners then share the profits according to their agreement. This can be an attractive arrangement because many Canadians are interested in investing in real estate but don't necessarily have the time, experience, or confidence to acquire and manage properties themselves. An educated investor can help bridge that gap. Wayne explains that a successful joint venture should create value for both partners. One person has capital but may lack the knowledge or time to invest directly. The other has the knowledge and ability to operate the investment but lacks the required capital. Together, they may be able to acquire a property that neither would have purchased independently. The key is building expertise, identifying strong opportunities, and structuring partnerships that are financially sustainable and mutually beneficial. Strategy #2: Agreements for Sale and Seller Financing Wayne's second strategy is one of his personal favourites. Agreements for Sale. He explains that this strategy played an enormous role in accelerating his real estate investing journey. At one point, Wayne was struggling to find new joint venture partners willing to finance additional acquisitions. Despite already owning several investment properties, potential partners wanted him to demonstrate more experience. Rather than waiting for someone else to fund his growth, Wayne learned how to acquire properties using Agreements for Sale. An Agreement for Sale is a seller financing arrangement in which the seller agrees to finance the purchase under negotiated contractual terms. Depending on the agreement, the buyer may acquire beneficial ownership and take responsibility for operating the property while the seller retains legal title until the agreed completion date. In certain circumstances, investors may be able to acquire properties with little or no money down. Wayne explains that sellers may consider these arrangements for a variety of reasons. Some homeowners are struggling with mortgage payments. Others are dealing with properties they no longer want to manage. Some need an alternative when a conventional sale is not meeting their needs. Seller financing can sometimes provide a solution. However, Wayne emphasizes that the objective is not to pressure sellers or take advantage of difficult circumstances. It's to identify situations where a properly structured agreement can benefit everyone involved. Why Seller Financing Could Become More Relevant Wayne believes changing market conditions are creating renewed opportunities for creative financing strategies. When housing markets become more competitive, properties take longer to sell, or homeowners experience financial difficulties, some sellers may become more open to alternative arrangements. Investors who understand seller financing may be better equipped to recognize those opportunities. Wayne explains that the most important skill is learning how to solve problems. By understanding Agreements for Sale, investors can determine whether the strategy provides an appropriate solution for a particular homeowner. Not every property or seller will be suitable. And investors need to understand the contractual, financing, legal, and operational risks involved before proceeding. Why Education and Integrity Matter Wayne also discusses the importance of learning Agreements for Sale properly. He credits Barry and Donna Maguire with teaching him the importance of structuring transactions that create positive outcomes for both buyers and sellers. Creative financing contracts can become complicated, particularly when there is an existing mortgage, the seller retains legal title, or the agreement includes future financing and exit obligations. Wayne encourages investors to take the time to understand how the contracts work and ensure the arrangement is appropriate for everyone. If a seller has a better alternative, investors should be willing to recommend it. Building a successful investing business requires trust, integrity, and strong relationships. Three Canadian Real Estate Markets Wayne Is Watching Wayne also shares three markets he believes investors should pay attention to in 2026 and 2027. 1. Edmonton, Alberta Edmonton remains Wayne's preferred real estate investing market. He believes the city continues to provide opportunities for investors who understand the rental market and can identify properties with strong long-term fundamentals. However, he cautions that markets operate in cycles. Edmonton will not necessarily remain the strongest opportunity forever. Investors need to understand changing rental conditions, supply, demand, property values, and cash flow before making decisions. 2. Red Deer, Alberta Red Deer is Wayne's second market to watch. Although he generally prefers larger markets, he believes Red Deer offers interesting opportunities. He highlights the city's growth, comparatively limited rental supply, and potential for continued rental demand. Wayne also discusses how development restrictions can sometimes produce unexpected effects on the existing rental market. He believes investors should research Red Deer as a potential alternative to larger Alberta cities. 3. Saskatoon, Saskatchewan Wayne's third market is Saskatoon. He identifies relative affordability, rental demand, economic activity, and its more measured construction environment as reasons the city deserves attention. He also discusses how investor interest can shift between cities as market cycles change. Just as some investment capital moved from Calgary toward Edmonton, Wayne believes Saskatoon could attract additional attention in future years. These are Wayne's market opinions, and individual property performance still depends on local conditions and deal analysis. The New Agreement for Sale Course Wayne and Gabby are preparing an Alberta-focused Agreement for Sale course through REI Masters. The course will cover how the strategy works, how to identify appropriate opportunities, how to approach sellers, how transactions can be structured, and how investors should plan their exits. The goal is to help investors understand how seller financing may allow them to acquire properties without relying entirely on their own savings or conventional mortgage financing. More information about the course will be announced soon. REI Masters Costa Rica Retreat Officially Announced Wayne and Gabby also announce that the REI Masters Costa Rica Retreat has been booked for January 16 to 20, 2027. The retreat will take place at a private lodge near Playa Negra in Costa Rica. The lodge has only nine guest rooms, creating an intimate, adults-only experience for participants. The s

    How I'd Grow a Canadian Real Estate Portfolio With $0 in 2026
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About

"Real Estate Investing Morning Show" with Canadian investor power couple, Wayne and Gabby Hillier. We talk everything real estate. Joint Ventures, Landlording, Buying/Selling, Financing, Flipping, BRRRR, Multi-Family, Secondary Suites, Condominiums, Agreement For Sales, Rent to Own, Wholesaling. Not to mention, sharing routines and strategies that we've implemented into our lives that have helped us 10X our performance, our drive and our efficiency.

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