Real Estate Investing Morning Show ( REI Investment in Canada )

Wayne & Gabby Hillier | Canadian Real Estate Investing Coaches / Mentors
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  • Updated Daily

"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. 19h ago

    Real Estate Deals Are Everywhere — Here's Why You're Missing Them

    How Are We Finding So Many Great Real Estate Deals? If great real estate deals really exist, why isn't everybody buying them? That was the question that came into the Canadian Real Estate Investing Morning Show today. A listener wanted to know how Wayne keeps finding strong deals, how REI Masters students keep buying cash-flowing properties, and why those opportunities seem almost invisible to everyone else. Wayne and Gabby's answer is simple: You don't know what you don't know. The properties are not hidden. The MLS is not secretly showing Wayne different listings. The opportunities are sitting in front of everybody. The difference is understanding what you are actually looking at. Today's episode also covers the growing infill controversy in Edmonton, a suspicious fire in Parkview following an anti-infill protest, the current Edmonton rental market, and several recent deals being completed by REI Masters students. "Something Seems Off" The listener's email asked: How can Wayne and his students keep finding all these great deals if everyone else can see the same properties? Wouldn't somebody else buy them first? Wayne's response is that most people are looking at real estate one-dimensionally. Experienced investors are looking at it from multiple angles. Two people can look at the exact same property. One sees: An old townhouse. A condo fee. A property that has been sitting on the market. Something that needs work. Another investor sees: Strong tenant demand. Cash flow. A below-market acquisition. A refinance opportunity. Long-term appreciation potential. A BRRRR. A wholesale assignment. Or simply a property that fits a very specific investment framework. The property did not change. The investor's knowledge changed. Buying the Property Is the Easy Part Wayne explains that even when he tells people exactly what type of property to buy, that does not guarantee success. He could say: Buy three-bedroom townhouses in Edmonton. He could narrow it down further. West end. South side. Certain neighbourhoods. Certain price ranges. But there are still plenty of ways to make a mistake. Which complex? What condo corporation? What reserve fund? What future repairs are coming? What tenant profile? What rent? What condition? What purchase price? What financing? What cash flow? What due diligence? And once you buy it, how will you manage it for the next 20 years? The purchase is only one piece of the puzzle. Why Education Changes What You See Wayne compares real estate knowledge to assembling a puzzle. The Morning Show gives investors pieces every weekday morning. Over time, listeners begin understanding how those pieces fit together. But somebody who hears only one episode may hear: "Buy an Edmonton townhouse." And think that is the entire strategy. It is not. The strategy is the complete framework surrounding the acquisition. Gabby summarizes the difference: Education. Someone who understands an industry will recognize opportunities that somebody without that education will completely miss. That principle applies far beyond real estate. The Deals Are Right in Front of You Wayne explains how his own acquisition process often works. Every month or two, he decides he is ready to buy. He messages his Edmonton realtor, Calvin Hexter, and tells him: I'm in buy mode. Then Wayne reviews the available inventory. He may look at seven properties. Write three offers. Get two accepted. And buy them. There is no secret inventory. There is no hidden database. The opportunities are already available. The key is recognizing which properties meet the framework and knowing how to evaluate them quickly enough to act. Wayne Has Already Locked Up Three Properties Wayne says he has already locked up three properties recently and still wants to purchase two more. The reason he has not bought the additional properties yet is not a lack of money or financing. He simply has not seen anything good enough. That is another important lesson. Being ready to buy does not mean forcing a deal. You wait until the property fits. Then you move. Opportunities Constantly Change A great real estate strategy today may not be a great strategy three years from now. Markets change. Prices change. Rents change. Interest rates change. Inventory changes. Investor competition changes. That means opportunities appear and disappear. Wayne says there are currently two particularly strong opportunities in Edmonton. Eventually, everybody may recognize them. Prices will increase. Competition will increase. Returns will compress. And the opportunity will disappear. Then investors need to recognize the next one. The Cost of Waiting for Proof One of Wayne's biggest warnings is waiting too long for proof that a strategy works. People often want to see everybody else doing it before they feel comfortable. But once everybody else is doing it, that creates the very competition that removes the opportunity. Wayne says his best deals often happen because he recognizes the opportunity before the broader market does. His students may then enter shortly afterward. Eventually everybody catches on. By that time, prices may already be 15%, 20% or 25% higher. Education allows investors to recognize opportunities earlier. REI Masters Student Deals Wayne and Gabby also highlight several deals currently happening inside the REI Masters community. Dennis Dennis recently took possession of another rental property generating approximately: $580 per month in cash flow. Wayne says Dennis and Andrea have acquired several properties during their first year and have added substantial monthly cash flow to their portfolio. Kyla and Fabian Kyla and Fabian found an off-market property through their We Buy Houses marketing. Instead of completing the flip themselves, they found another buyer and are assigning the opportunity for approximately: $10,000. Kane Kane recently locked up his first wholesale deal. Wayne describes it as an excellent potential Edmonton BRRRR opportunity. The property is a three-bedroom townhouse requiring approximately $15,000 to $20,000 in renovations. The potential strategy: Buy. Renovate. Refinance. Recover the invested capital. Keep the property. Cash flow approximately $300 per month afterward. Wayne says the property scored approximately 9% on the cash-flow test. Jas and Rupinder Jas and Rupinder recently acquired another property for approximately $30,000 to $40,000 below market value. They plan to complete renovations and may potentially use a BRRRR strategy. Anya Anya recently acquired a commercial property worth approximately: $2 million. Amanda Amanda has secured her first joint venture partner. Her challenge now is finding the right deal for the available capital. Additional Students Wayne also highlights several other students who have been acquiring properties, raising joint venture capital, building rent-to-own businesses and expanding their portfolios. The common thread is not luck. It is education followed by action. Edmonton's Infill Debate Gets Hotter The episode also covers a very different Edmonton real estate story. Residents in Edmonton's Parkview neighbourhood recently held a protest against increasing infill development. Residents have raised concerns about: Density Parking Traffic Garbage collection Snow removal Construction disruption Neighbourhood character Property values Shortly after the protest, a vacant house slated for redevelopment caught fire. The property reportedly had approval for a four-dwelling row house with four secondary suites. Fire officials considered the blaze suspicious, and Edmonton police began investigating. Wayne makes clear that nobody knows whether the fire had any connection to the protest. But the timing intensified an already heated debate around infill development in mature Edmonton neighbourhoods. Another Infill Fire Had a Different Cause Wayne also discusses another recent Edmonton infill-related fire. That fire was reportedly connected to a lithium-ion battery inside an electric scooter. Wayne says Edmonton fire officials reported numerous lithium-ion battery-related fires and millions of dollars in associated damage. The two fires were unrelated, but both highlight risks surrounding increasingly dense residential development. Wayne's Complicated View on Infill Wayne openly admits he has mixed feelings about Edmonton's infill boom. He participates in infill development. He believes new housing supply is necessary. He also understands why existing homeowners may be frustrated. Wayne believes Edmonton went too far in certain areas and added too much competing rental supply too quickly. That additional supply has created significant pressure on some segments of Edmonton's rental market. But not every property type is being affected equally. Edmonton Rents Are Down — But Not for Every Property Wayne says Edmonton rents overall have softened year over year. However, rents within his own portfolio have continued increasing. Why? Because he deliberately purchased properties that serve a different tenant profile than much of the new rental supply being built. This is another example of why understanding property type matters. Citywide averages do not tell you everything. You need to understand exactly who your tenant is, what alternatives they have and what type of property they actually want. The Main Lesson If you look at Wayne's deals or the deals being completed by REI Masters students and think: "Something seems off. Why don't I see these?" The better question may be: "What am I not seeing yet?" The listings are there. The opportunities are there. But opportunities only become obvious when you understand: The market. The numbers. The property type. The tenant. The risks. The financing. The exit. The operations. And how all of those pieces work to

    Real Estate Deals Are Everywhere — Here's Why You're Missing Them

  2. 1d ago

    What You Need To Know Before Investing in a New City

    What You Need To Know Before Investing in a New City How do you know whether a city is actually a good place to invest in real estate? A market can have cheap houses. It can have great-looking cash flow. Population might be increasing. Property values might be rising. And it can still be a terrible place to build a long-term rental portfolio. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby answer a question from listener Carmen: What do you look for when deciding whether to invest in a new city? Wayne breaks down five of the major factors he looks at before putting money into a new real estate market. The goal is not simply finding the city with the highest appreciation or cheapest properties. The goal is finding a market where you can buy a profitable rental business, operate it successfully, and have confidence that it can remain sustainable for the next 20 years. The Framework Comes Before the City Wayne explains that he does not start by falling in love with a city and then trying to make the numbers work. He starts with his investment framework. Then he asks: Does this market fit? If it does not fit the fundamentals, he moves on. Gabby describes it as trying to fit the correct peg into the correct hole. You do not start sanding the corners off because you really want the deal to work. The standards stay the same. The market either meets them or it does not. 1. Landlord and Tenant Laws One of Wayne's first considerations is the legal environment where the rental business will operate. A city can have: Great cash flow. Strong population growth. Excellent rents. Good appreciation potential. Low vacancy. And attractive properties. But if the landlord and tenant laws prevent you from operating the rental business effectively, that can be enough for Wayne to walk away. Wayne uses Ontario as an example. Issues such as restrictions surrounding lease termination, rent increases and lengthy dispute processes can materially change the risk profile of owning rental property. Gabby makes an important point: Managing the property properly is how you ultimately make money. You can make money when you buy. You can have great appreciation. You can have positive cash flow. But poor operations can destroy all of it. Wayne wants to know that both landlord and tenant are held accountable to the agreement they signed and that there is a reasonably efficient process when somebody does not fulfil their obligations. Before researching individual cities, understand the landlord and tenant laws of the province. 2. Cash Flow Potential Cash flow is one of the most important filters Wayne uses. If the type of property he wants to purchase cannot generate sufficient cash flow in that market, he will not buy there. Why? Because Wayne does not view rental real estate as simply purchasing an asset and hoping its value increases. He is buying an asset and operating a business from it. A business consistently spending more every month than it generates is not attractive simply because the building might eventually appreciate. Cash flow is also Wayne's primary risk mitigator. The greater the cash-flow cushion, the more room the investment has to absorb things outside the investor's control: Higher interest rates Vacancy Lower rents Increasing expenses Job losses Economic changes Unexpected repairs Wayne uses the 5% Rule™ Cash Flow Test as a minimum standard for evaluating this. Understand the Specific Neighbourhood Do not simply search: "What is the average rent in this city?" That is not enough. Different neighbourhoods attract different tenants. Different property types command different rents. One side of a city may perform very differently from another. Wayne and Gabby recommend researching the actual properties competing with the one you intend to purchase. Wayne gives an example from recent market-rent research. There were only a handful of comparable rentals available, and his property was clearly superior to the competition. Instead of simply copying the average asking rent, he decided the property could justify charging more. Market rent is not just a statistic. It is the price your property can command relative to the alternatives available to tenants. 3. Market Size Small towns can sometimes produce incredible-looking cash flow. Properties can be inexpensive. There may be almost no rental competition. Rents may appear exceptionally strong relative to purchase prices. That can be tempting. But Wayne sees a major problem: Sustainability. Everything can look fantastic while the town is booming. Then one employer closes. One construction project ends. One mine shuts down. One mill disappears. One economic event hits the dominant industry. Suddenly the rental demand that supported your investment disappears. Wayne generally prefers major cities with populations of approximately 500,000 or more. That is not a universal rule for every investor. It is his preference because larger markets generally provide more diversification and resilience. What About Smaller Cities Around Major Centres? Gabby adds an important exception. Smaller communities immediately surrounding a major metropolitan area can function as extensions of the larger city. Examples around Edmonton include: St. Albert Sherwood Park Spruce Grove Beaumont Residents may live there while still working, shopping and participating economically in the larger metropolitan area. Sometimes those communities offer lower purchase prices while maintaining similar rental demand. The important distinction is whether the smaller community has a genuinely diversified economic connection to the larger centre or exists primarily because of one local employer. 4. Industries and Employment Once Wayne identifies a potential market, he wants to understand: Why do people live there? Where are the jobs? How much do those jobs pay? Are those jobs sustainable? Are more jobs being created? Is the city dependent on one employer or industry? A market dominated by a single mill, mine, manufacturing plant or temporary infrastructure project creates more risk. If that employer disappears, the rental market can change extremely quickly. Wayne prefers markets with diversified employment and industries capable of producing good-paying, long-term jobs. Temporary Growth Can Fool Investors Imagine a small community suddenly gets thousands of workers because a major highway, mine, pipeline or infrastructure project is being built. Rental demand explodes. Vacancy disappears. Rents increase. Investors see the numbers and rush in. But what happens when construction finishes? If those workers leave and there is no permanent economic reason for people to remain, the rental demand can disappear just as quickly as it arrived. Wayne wants investments that can survive for 20 years. Not just the next construction cycle. 5. Population Growth and Migration Population growth is another major factor. More people moving into a city creates additional demand for housing. Initially, many newcomers rent. Eventually, some become homeowners. That can create pressure on both: Rental demand and Real estate values. Wayne wants to study the history of population growth and net migration. But historical numbers are not enough. He also looks forward. What projects are being announced? What employers are expanding? What new industries are arriving? What infrastructure is being built? What will cause people to move there over the next five, ten or twenty years? Follow the Jobs Wayne gives a theoretical example of a major new project creating thousands of construction jobs followed by thousands of permanent jobs. During construction, many workers may become renters. That puts pressure on rental supply. Later, some of those workers may take permanent jobs and become homebuyers. If you own the right type of property, you can potentially benefit from both phases. First, strong rental demand. Later, increased homebuyer demand for the same type of property. That is exactly the kind of long-term market dynamic Wayne looks for. Real Estate Prices Going Up Is Not Enough A city can have rapidly increasing real estate prices and still be a poor rental market. Gabby discusses communities where outside buyers drove prices higher while local residents increasingly struggled to afford either rents or homes. That creates a disconnect. Wayne repeatedly comes back to the same principle: You are not simply buying a box and hoping the box becomes more valuable. You are operating a business from the property. The market needs to support that business. The Five Filters When Wayne begins evaluating a new real estate market, five of the major things he considers are: Landlord and tenant laws Cash flow potential Market size Industries and employment Population growth and migration These five factors are only the beginning. Once a market passes those filters, deeper due diligence begins. What neighbourhoods? What asset classes? What tenant profile? What vacancy? What property values? What rents? What long-term development is happening? The purpose of the first analysis is not to prove that you should invest somewhere. It is to determine whether the market deserves further investigation. A Rare BRRRR Opportunity in Edmonton Wayne and Gabby also discuss an opportunity brought to the previous night's REI Masters coaching session. One student operating a wholesaling business found an Edmonton property that Wayne believes could potentially make an excellent BRRRR. The renovation appears relatively simple, potentially around $10,000 to $20,000 in cosmetic improvements. The strategy would be: Buy the property. Complete the renovation. Increase the value. Refinance. Recover the invested capital. Then hold the property as a cash-flowing rental. Based on the analysis discus

    What You Need To Know Before Investing in a New City

  3. 2d ago

    Is Calgary Still a Good Place to Invest in Real Estate?

    Is Calgary Still a Good Place to Invest in Real Estate? Calgary real estate investors have had an incredible run. Properties that once sold for under $300,000 are now worth significantly more. Rents increased. Investors who bought several years ago benefited from cash flow, mortgage paydown and substantial appreciation. But that creates a different question in 2026: Does Calgary still make sense for someone buying today? In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby answer a listener who already owns Calgary rental properties and wants to know whether they should buy more, continue holding what they own, or sell. Wayne's answer comes down to one important relationship: The rent-to-price ratio. Property values can continue increasing, but if rents are no longer high enough to support the cost of owning the property, the investment stops functioning as a profitable rental business. Don't Fall in Love With a Market Wayne starts with an important reminder. Being from Calgary is not a reason to invest in Calgary. Loving Calgary is not a reason to invest in Calgary. Having made money there previously is not automatically a reason to buy there again. Real estate investing decisions should be based on the numbers and fundamentals available today. Markets change. Strategies need to change with them. The Difference Between Holding and Buying Today This is one of the most important distinctions in the episode. Someone who bought a Calgary property five years ago may be in an excellent position today. They may have: A much smaller original mortgage Years of mortgage principal paydown Increased rents A large amount of equity Positive cash flow A substantial reserve fund That does not mean someone purchasing the exact same property today will get the same result. The existing owner and the new buyer are working with completely different numbers. The Calgary Investor Who Bought at $280,000 Wayne walks through a simplified example. Several years ago, an investor might have purchased a Calgary house for approximately: $280,000 At 20% down, that investor would have contributed approximately: $56,000 Their mortgage would have been around: $224,000 At the time, similar properties could potentially rent for approximately $1,700 to $1,900 per month depending on the property and neighbourhood. Interest rates were also dramatically lower. The property could cash flow. Then rents increased. And property values increased significantly. That investor may now be sitting on an asset worth well over $500,000 while still carrying a relatively small mortgage. That is an excellent position. Now Buy the Same Property in 2026 The problem is the next investor is not buying it for $280,000. They may be buying it for: $550,000 At 20% down: $110,000 Mortgage: $440,000 Now add today's mortgage rate, property taxes, insurance, maintenance, vacancy and other operating expenses. The same rental income that produces great cash flow for the person who bought five years ago may produce negative cash flow for the buyer purchasing today. That is the problem. The Rent-to-Price Ratio Is Out of Balance Wayne describes the rent-to-price ratio as the relationship between: What the property costs and What the market will pay to rent it. Calgary property prices increased extremely quickly. Rents increased too. But eventually prices outpaced rents. And rents cannot simply keep increasing indefinitely because tenants still need to be able to afford them. Once purchase prices increase faster than rental income, cash flow begins disappearing. That is where Wayne believes Calgary is today for many residential rental properties. Appreciation Does Not Fix Bad Cash Flow Wayne believes Calgary property values can continue to increase over the long term. Residential real estate generally trends upward over long holding periods. But it does not move upward in a straight line. Interest rates change. Oil prices change. Inflation changes. Employment changes. Government policy changes. Immigration changes. Economic conditions change. Investors cannot reliably predict every short-term movement. That is why Wayne does not want to purchase a negative-cash-flow property simply because he believes it may appreciate. The business still needs to work. The $550,000 Example Wayne runs another simple example. Purchase price: $550,000 20% down: $110,000 Mortgage: $440,000 At approximately 4% over 30 years, the mortgage payment alone is around $2,100 per month. Then add approximately: $300+ per month in property taxes $150 or more in insurance Repairs Maintenance Vacancy Other expenses If the market rent is approximately $2,200 to $2,300, the numbers do not work. You are negative before even accounting for several real operating expenses. That is not the type of rental business Wayne wants to buy. Don't Follow the Headlines This is where investors can get confused. They see headlines saying: Calgary prices are increasing. Calgary is appreciating. Calgary is growing. Calgary remains desirable. Those things may all be true. But the important question for a rental-property investor is: Can I buy this property today and operate it profitably at today's price, today's rent and today's financing costs? If the answer is no, rising property values do not automatically make it a good investment. Wayne Is Still Holding His Calgary Properties Wayne makes an important distinction between buying more and selling what he already owns. He is not currently looking to buy more Calgary residential rental properties. But he is also not rushing to sell the Calgary properties he already owns. One example from his portfolio was purchased for approximately: $350,000 Today, Wayne estimates that property is worth around: $575,000 That represents roughly 65% appreciation over approximately five years. Even more interestingly, Wayne estimates the property increased from around $530,000 to $575,000 in the last year alone. That is approximately an 8.5% increase. The property still cash flows because Wayne's mortgage is based on the original purchase price, not today's value. Why Wayne Isn't Refinancing All That Equity That property now contains a significant amount of equity. So why not refinance it and pull the money out? Because increasing the mortgage could destroy the cash flow. Wayne's existing mortgage started at approximately $280,000 and has been paid down over time. Refinancing against today's $575,000 value would dramatically increase the debt and potentially eliminate the profitability of the rental business. So Wayne is comfortable allowing the equity to sit there. The property cash flows. It continues paying down debt. It has a healthy reserve. And it may continue appreciating. That is enough. Calgary Was an Incredible Opportunity Wayne is not saying Calgary was a bad investment. Quite the opposite. For investors who purchased the right properties before prices accelerated, Calgary created exceptional returns. Some properties appreciated 50%, 60% or more over several years. At the same time: Rents increased. Mortgages were paid down. Cash flow accumulated. That combination produced tremendous returns. The problem is that once everybody recognizes the opportunity, capital rushes in. Prices rise. Eventually the original opportunity disappears. The Opportunity Moves Wayne explains this as a pattern. A market has a strong rent-to-price ratio. Investors recognize it. Capital enters. Homebuyers enter. Prices increase. Eventually the rent-to-price ratio gets squeezed. Investors then start looking for the next market where rents still support the purchase prices. Wayne believes this is part of what happened as attention shifted from Calgary toward Edmonton. Edmonton then experienced substantial appreciation as more capital entered that market. Eventually another market may become the next opportunity. The investor's job is to recognize it before everybody else does. Wayne's Answer: Hold Calgary, But Be Careful Buying More For the listener who already owns successful Calgary rentals, Wayne's approach would generally be: Keep the profitable properties. Continue collecting cash flow. Continue paying down the mortgages. Let the equity grow. Be cautious about refinancing if it destroys the cash flow. And wait for the right time to eventually sell. But for someone looking to purchase a typical Calgary residential rental today, Wayne believes it is difficult to find properties that meet the investment fundamentals he teaches. There may still be specific opportunities. But they are much harder to find. The Main Lesson Do not ask: "Are Calgary prices going up?" Ask: "Does this rental property make sense at today's price?" Understand: Purchase price Market rent Financing Property taxes Insurance Repairs Maintenance Vacancy Cash flow Then determine whether the property meets your investment criteria. The goal is not to predict which city will increase the most next year. The goal is to buy a rental business capable of surviving for the next 20 years. Coming Tomorrow A listener asked another important question during today's live show: What do you look for when deciding whether to invest in a new city? Wayne and Gabby plan to tackle that question on tomorrow's Morning Show. REIcon – The Summit Series REIcon takes place in Edmonton this weekend: September 11–13, 2026 Wayne and Gabby will be there Friday and Saturday. The Canadian Real Estate Investing Morning Show will broadcast live on stage Saturday morning. Wayne will also be teaching due diligence and pre-purchase analysis. Get your tickets at: www.reiconference.ca Use discount code: REIMASTERS15 for 15% off. REI Masters Mentorship Work directly with Wayne and Gabby on acquisitions, market selection, financing, deal analysis, joint ventures, property manag

    Is Calgary Still a Good Place to Invest in Real Estate?

  4. 3d ago

    Fall Rental Property Maintenance Checklist: What Landlords Should Do Before Winter

    Fall Rental Property Maintenance Checklist: What Landlords Should Do Before Winter Winter problems are expensive. A furnace that fails during the first cold snap. A frozen exterior water line. Clogged gutters sending spring melt toward the foundation. Too much humidity creating condensation, ice and eventually mold. These are predictable problems, which means landlords should be dealing with them before they become emergencies. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby walk through their fall rental-property maintenance checklist and explain the systems they use to prepare their portfolio for winter. The goal is simple: Be proactive instead of reactive. A relatively inexpensive preventative repair in September can save you from a much larger emergency repair in January. Why Every Landlord Needs a Seasonal Maintenance System When you own your own home, seasonal maintenance can happen naturally. You notice something in the yard. You walk past the furnace. You see leaves accumulating in the gutters. With multiple rental properties, that does not happen automatically. The more properties you own, the more important systems and checklists become. Wayne and Gabby recommend creating a repeatable fall inspection checklist, saving it permanently and putting a recurring reminder into your calendar every year. You should not have to remember everything. The system should remind you. Start With the Furnace One of the most important fall checks is the furnace. Do not wait for the first -30°C night to discover that the furnace does not work. During the fall inspection: Turn the furnace on Confirm it fires properly Change the furnace filter Consider servicing it if it has not been checked recently Make sure airflow is not being restricted Deal with known issues before winter The worst time to discover a furnace problem is late at night during the first major cold snap when every HVAC company in the city is already dealing with emergency calls. Preventative maintenance gives you options. Emergency maintenance usually gives you a bill. Check the Humidifier Gabby considers humidity control one of the most important seasonal checks. If the property has a furnace-mounted humidifier or HRV system, the settings may need to change as outdoor temperatures drop. Too much indoor humidity during very cold weather can cause condensation and ice around: Windows Window frames Exterior walls Corners Areas behind furniture Other cold surfaces That ice eventually melts. Then you have water entering drywall, flooring and framing. And moisture problems can quickly become mold problems. Make sure the humidifier is set appropriately for the season and outdoor temperature. Winterize Exterior Hose Bibs Exterior water lines are another major concern. Before freezing temperatures arrive: Disconnect exterior hoses Locate the interior shutoff Shut the water supply off Open the exterior hose bib Drain the remaining water from the line Close everything properly for winter Water expands when it freezes. If water remains trapped in the pipe, the line or hose bib can burst. You may not even discover the damage until spring when somebody turns the water back on. Wayne and Gabby have purchased properties where exterior hose bibs did not survive the previous winter. A simple preventative step can save hundreds or potentially thousands of dollars. Clean Gutters and Check Downspouts Make sure gutters are clear and downspouts direct water away from the house. In Alberta, snow may accumulate for months before melting rapidly in spring. When that happens, you want the water moving away from the foundation. Clogged gutters or poorly positioned downspouts can contribute to: Foundation moisture Basement leaks Water intrusion Landscaping damage Properties surrounded by mature trees may require gutter cleaning every spring and fall. Wait until most of the leaves have fallen before completing the final fall cleaning. Check the Roof While inspecting the exterior, look at the roof. Check for: Missing shingles Damaged shingles Storm damage Fascia issues Soffit damage Areas where water could penetrate A small roof problem in September is much easier to repair than a roof problem buried beneath months of snow. Don't Ignore the Attic Attic issues can create serious winter problems. Look for: Inadequate insulation Poor ventilation Disconnected vents Bathroom fans exhausting incorrectly Signs of moisture Previous water staining Heat escaping into the attic can create condensation and ice. When that ice melts, the water can end up inside the ceiling, insulation or walls. That can lead to stains, leaks and mold. Wayne and Gabby emphasize another lesson here: If your home inspector identifies an attic issue when you buy the property, do not simply file the inspection report away and forget about it. Fix the important items. Test Smoke and Carbon Monoxide Detectors Every seasonal inspection should include life-safety equipment. Test every smoke alarm and carbon monoxide detector. Check: Operation Batteries where applicable Expiry dates Proper placement These devices are not decorative. They exist to protect the people living in your property. Check Windows and Doors Look closely at exterior windows and doors. Check: Caulking Sealant Weather stripping Visible gaps Signs of water intrusion Areas where daylight is visible around doors If you can see daylight around a door, cold air can get through too. Wayne and Gabby have become increasingly focused on exterior sealing after dealing with water-intrusion issues in their portfolio. Water will find surprisingly small openings. Seal them before weather makes the problem worse. Check the Rest of the Property While You're There If you are already inspecting the property, use the opportunity to perform a broader maintenance review. Consider checking: Hot water tank Appliance filters Plumbing Exterior drainage Interior moisture Property condition Previously identified maintenance items Treat the rental property the way you would treat your own home. The goal is to leave knowing the property is prepared to operate safely through winter. Document Everything Do not simply walk through and rely on memory. Take photos. Record what was inspected. Document repairs required. Keep the inspection record. Then compare it against the next seasonal inspection. If something does not need immediate attention but should be reviewed again in spring, document it and schedule the follow-up. Proactive Beats Reactive Wayne summarizes the philosophy behind the entire episode: Good property management is not about fixing things when they break. It is about identifying predictable problems before they become emergencies. A $150 preventative repair in September can easily prevent a $2,000 emergency repair in January. The exact number is not the point. The principle is. Preventative maintenance is almost always easier and cheaper than emergency maintenance. Build the System Once For investors with multiple properties, the solution is not becoming better at remembering everything. Build a system. Create a fall checklist. Create a spring checklist. Put recurring reminders into your calendar. Delegate inspections where appropriate. Document the results. Schedule repairs automatically. The simpler the system is, the more likely it will actually be followed. That frees up your mental bandwidth for higher-value activities: Finding deals. Building relationships. Raising capital. Growing your portfolio. And spending time on the things outside real estate that actually matter to you. REIcon – The Summit Series REIcon takes place in Edmonton this weekend: September 11–13, 2026 Wayne and Gabby will be there Friday and Saturday. On Saturday morning, the Canadian Real Estate Investing Morning Show will be recorded live on stage. Later Saturday, Wayne will participate in a due diligence and pre-purchase session with Patrick Francey. Wayne and Gabby will also present together on asset management and property management. Get tickets at: www.reiconference.ca Use discount code: REIMASTERS15 for 15% off. REI Masters Mentorship Work directly with Wayne and Gabby on acquisitions, financing, deal analysis, property management, joint ventures and building a profitable Canadian real estate portfolio. www.reimasters.ca Watch the Morning Show Join Wayne and Gabby every weekday morning at 7:00 AM Mountain Time on YouTube. Follow Wayne Hillier – Real Estate Investing Coach on YouTube. Questions for the show: info@reimorningshow.com Upcoming Events REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026 www.reiconference.ca Discount code: REIMASTERS15 REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026 www.reimasters.ca Sponsors Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca keaton@kbmortgages.ca

    Fall Rental Property Maintenance Checklist: What Landlords Should Do Before Winter

  5. Sep 4

    September 2026 Edmonton Real Estate Market Update

    September 2026 Edmonton Real Estate Market Update What is actually happening in the Edmonton real estate market heading into fall 2026? Inventory has climbed dramatically compared with the last couple of years. Months of inventory has increased. August was slower. Buyers have significantly more choice. But that does not mean the opportunities are gone. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby are joined by Edmonton investor-focused realtor Calvin Hexter of Calvin Realty for a September 2026 Edmonton real estate market update. They break down the latest inventory numbers, months of inventory, days on market, pricing, rental vacancy pressures and what investors should expect as Edmonton moves into the fall market. They also discuss why September may create an important buying window, why investors need to look beyond citywide averages, and why some of the best deals Wayne and his students have seen in years are showing up right now. Edmonton Inventory Has Changed Dramatically One of the biggest changes in Edmonton is inventory. Calvin says available inventory is now around 8,050 properties. For comparison, Edmonton had roughly 3,000 to 4,000 available properties during much tighter periods in the previous couple of years. That means buyers now have considerably more selection. For sellers, that creates competition. For buyers, that creates opportunity. Months of Inventory Climbs to 3.88 Edmonton moved from roughly 3.3 months of inventory to approximately 3.88 months. That is a meaningful shift. For comparison, during some of the tighter periods in 2024, Edmonton was around 1.7 to 1.8 months of inventory. The market is now much more balanced. That does not mean every property is easy to negotiate. Real estate is still hyper-local. Different neighbourhoods, property types and price points can behave very differently. But overall, buyers have more leverage than they did during Edmonton's extremely tight market. August Was a Sleepier Month Calvin describes August as a slower month, which is not unusual. People are travelling. Families are preparing for school. Sellers sometimes allow listings to expire or temporarily remove properties from the market. Calvin expects activity to start increasing again around the second week of September. His prediction is that the market begins waking up around September 10. That combination can create an interesting opportunity for investors: More inventory. Some sellers becoming frustrated. Listings that have been sitting. And buyers beginning to return. Prices Were Mostly Slightly Lower According to Calvin, most major property categories declined approximately 1% from July into August. Townhouses were the exception, increasing by roughly 2%. Properties that are selling are averaging around 40 days on market. But citywide averages only tell part of the story. A townhouse in one neighbourhood can behave completely differently from an infill property or multifamily asset somewhere else. Not Every Property Has the Same Vacancy Rate The same principle applies to rental vacancy. A citywide vacancy number does not tell you exactly what is happening with your property. Calvin gives the example of newer west-end infill projects. While the broader Edmonton vacancy rate may be somewhere around 4% to 5%, certain concentrated property types could be experiencing vacancy closer to 10%. That is why investors need to drill down. What neighbourhood? What property type? What tenant profile? What rent? How much competing inventory? Wayne recommends talking directly with other landlords who own similar properties. Ask them: How long did it take to rent? How many inquiries did you receive? What rent did you achieve? That real-world information can sometimes tell you more than a citywide statistic. Wayne and Gabby Are Seeing Rental Pressure Too Gabby also provides an update on September rent collection. On the morning of September 1, only about 45% of their expected rent had been received. Normally, Gabby likes to see closer to 60% to 65% collected before the first because many tenants pay early. Ultimately, everything was collected. But there were a couple of tenants who needed an extra day or some clarification around credits. Wayne and Gabby believe affordability pressure is becoming more noticeable. Groceries are expensive. Fuel is expensive. Households are feeling stretched. At the same time, Edmonton has more rental supply than it did previously. That means landlords may occasionally need to be slightly more flexible while still maintaining strong systems and boundaries. More Rental Supply Does Not Mean Stop Buying This is an important distinction. Wayne is actively purchasing properties. REI Masters students are actively purchasing properties. And Wayne says some of the deals they are finding right now are among the best they have seen in approximately a decade. The rental market may require stronger management. But the acquisition market is creating opportunities. The answer is not necessarily to stop buying. The answer is to buy properly and manage properly. Strong cash flow gives you room to handle vacancies, slower leasing periods and occasional tenant payment issues without putting the investment at risk. Why Toronto and Vancouver Investors Changed Edmonton The conversation also touches on the wave of Ontario and British Columbia investors who entered Edmonton aggressively during the previous market cycle. Calvin says there was more resentment in 2024 when Edmonton buyers were regularly being beaten by aggressive out-of-province offers. Wayne shares a story about a Mill Woods property he wanted to flip. He submitted an aggressive offer over asking. Another investor from Toronto beat him by approximately $45,000 over asking with no conditions and without seeing the property. Wayne watched the deal afterward. The buyer eventually lost money. That is the difference between buying because you believe prices will keep increasing and buying based on fundamentals. Wayne and Gabby were also able to benefit indirectly from rising Edmonton values by refinancing properties they already owned and redeploying that capital later. Edmonton Investors Have More Choice Again The key takeaway from Calvin's September update is that Edmonton is no longer experiencing the same extreme shortage buyers faced during the tightest parts of the market. Inventory is higher. Months of inventory is higher. Sellers have more competition. Buyers can be more selective. For disciplined investors, that can create excellent buying opportunities. But investors still need to understand the specific neighbourhood, property type and tenant market they are buying into. REIcon – The Summit Series Wayne, Gabby and Calvin also discuss the upcoming REIcon Summit Series in Edmonton. September 11–13, 2026. The event is structured more like an investing workshop than a traditional conference. The goal is to walk investors through the process of completing a real estate deal from beginning to end. Topics include: Finding opportunities Determining what makes a good deal Negotiating Due diligence Financing Joint ventures Seller financing Residential investing Multifamily investing Raising capital Building the right professional team Wayne and Gabby will be presenting during the event. The Canadian Real Estate Investing Morning Show will broadcast live on stage on Saturday, September 12. Wayne will also be teaching due diligence alongside experienced Canadian real estate professionals, including his Edmonton real estate lawyer, Richard Bell. REIcon takes place September 11–13 in Edmonton. Use discount code: REIMASTERS15 for 15% off tickets. www.reiconference.ca About Calvin Hexter Calvin Hexter is an Edmonton investor-focused realtor and the founder of Calvin Realty. Calvin and his team work with real estate investors purchasing and selling residential, multifamily and investment properties throughout Edmonton. www.calvinrealty.ca REI Masters Mentorship Work directly with Wayne and Gabby on acquisitions, financing, deal analysis, property management, joint ventures and building a profitable Canadian real estate portfolio. www.reimasters.ca Watch the Morning Show Join Wayne and Gabby every weekday morning at 7:00 AM Mountain Time on YouTube. Follow Wayne Hillier – Real Estate Investing Coach on YouTube. Questions for the show: info@reimorningshow.com Upcoming Events REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026 www.reiconference.ca Discount code: REIMASTERS15 REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026 www.reimasters.ca Sponsors Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca keaton@kbmortgages.ca

    September 2026 Edmonton Real Estate Market Update

  6. Sep 3

    The Basement Suite Cashflows - But Is It Actually Legal?

    The Basement Suite Cashflows - But Is It Actually Legal? A basement suite can make a rental property look fantastic on paper. Two rents. Better cash flow. Stronger returns. But there is one question investors sometimes forget to ask before removing conditions: Is the basement suite actually legal? In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby explain how investors can verify whether a secondary suite is permitted, why an illegal or non-conforming suite can create serious financial risk, and what could happen if the city, lender or insurance company eventually starts asking questions. They also discuss the Bank of Canada's latest interest-rate announcement, why investors shouldn't build deals assuming rates are going to fall, and why sufficient cash flow is what protects a rental portfolio when borrowing costs change. What You'll Learn Why the Bank of Canada holding rates doesn't mean investors should assume rates are headed lower How variable-rate mortgages and HELOCs are affected differently than fixed-rate mortgages Why Wayne believes deals should work at today's interest rates How the 5% Rule™ Cash Flow Test creates a cushion against higher borrowing costs Why reserve funds make property repairs and renovations much easier Why a basement suite can make a mediocre property look great on a spreadsheet How to determine whether a basement suite is actually legal Why pulling a permit does not necessarily mean the suite received final approval Why investors should confirm that the existing suite matches what was originally approved Why you should never automatically treat rent from an illegal suite as guaranteed income How an illegal suite can affect property value Why neighbours and former tenants can create unexpected problems What could happen if the municipality orders a secondary suite to stop operating Potential tenant relocation costs when a suite can no longer legally be occupied Why insurance becomes particularly important with non-conforming suites How Edmonton, Calgary, Winnipeg, Toronto and Vancouver differ when researching secondary suites Why Wayne and Gabby recommend buying or building legal suites whenever possible Bank of Canada Holds at 2.25% The Bank of Canada held its overnight rate at 2.25% in its September announcement. Wayne points out that the bigger story for investors is not simply that the rate stayed the same. It is the possibility that the environment could change. His message to investors is straightforward: Do not buy a rental property assuming interest rates are going down. Make the property work at today's numbers. If rates eventually fall, great. But your investment should not require that to happen. Variable vs. Fixed Mortgages Wayne also explains an important distinction. Changes to the Bank of Canada's overnight rate directly influence prime-based borrowing products such as: Variable-rate mortgages Adjustable-rate mortgages Home equity lines of credit A fixed-rate mortgage does not immediately change simply because the Bank of Canada changes its overnight rate. For investors with variable borrowing, however, rate increases can mean either higher interest costs or higher monthly payments depending on the mortgage structure. That makes cash flow especially important. Could Your Property Survive Higher Rates? Imagine your mortgage payment increases by $50 per month. Probably manageable. What if it rises by $500? Now the question becomes much more serious. Over a 20-year investment period, investors should expect interest rates to move. The property needs enough cash-flow cushion to survive those changes. Wayne points back to what happened when investors purchased properties during extremely low-rate environments and built their deals around financing conditions that did not last. When rates increased, some properties and projects could no longer support themselves. That is exactly the type of situation the 5% Rule™ Cash Flow Test is designed to help investors avoid. Why Cash Flow Creates Options Wayne and Gabby share another example from their own portfolio. One of their properties recently became vacant after several years. The property now needs repairs and improvements. But they are not scrambling to find the money. Why? The property's cash flow has been accumulating inside its reserve fund. That reserve can now pay for the work. No emergency credit card. No unexpected cash call to the joint venture partner. No panic. The rental business generated the money needed to maintain the rental business. That is how Wayne and Gabby believe a long-term portfolio should be built. Is That Basement Suite Actually Legal? The second major topic today begins with a situation Wayne recently heard about. An investor had been renting a basement suite when the municipality contacted them and wanted to inspect it. The problem? The suite was not properly permitted. Now the investor is facing questions about whether the tenant can continue living there and what happens to the economics of the property if that basement rent disappears. This is why Wayne believes investors need to verify secondary-suite status before purchasing the property. The Numbers Can Look Amazing Non-conforming suites can be tempting. Imagine two similar properties. One has a fully legal secondary suite. The other has a basement suite that looks almost identical but was never properly permitted. The non-conforming property may sell for less while producing almost the same advertised rental income. On a spreadsheet, that can look like an incredible deal. But that additional rent comes with risk. If something happens and you can no longer rent the basement separately, does the property still work? The Question Wayne Would Ask If you are considering purchasing a property with a non-conforming basement suite, Wayne suggests running a worst-case scenario: Does this property still cash flow if I cannot rent the basement separately? Assume the suite gets shut down. Assume you must rent the entire house as one unit. Does that rent still cover the property's expenses? Does it still pass the 5% Rule? If the answer is no, you need to understand exactly how much risk you are accepting. Wayne and Gabby's preference remains much simpler: Buy or build legal suites. Don't Overpay for an Illegal Suite Wayne gives a simple example. Imagine similar bungalows in a neighbourhood are worth: $400,000 A comparable property with a properly permitted legal suite might be worth: $500,000 Now imagine another $400,000 bungalow has an unpermitted basement suite. An investor sees the additional rental income and pays: $450,000 They think they received a bargain because it is cheaper than the legal suited property. But that unpermitted suite does not necessarily create the same market value as a fully legal one. You may have simply paid $50,000 too much for a $400,000 house. How to Check Whether a Basement Suite Is Legal Before buying a suited property, investigate it. 1. Check the Zoning Determine whether secondary suites are permitted under the property's zoning and municipal rules. 2. Check the Permits Find out whether the correct permits were actually issued for the secondary suite. Do not simply take the seller's word for it. 3. Confirm Final Inspections A permit being opened does not necessarily mean the work received final approval. Ask whether all required inspections were completed and the permit was properly closed. 4. Compare the Current Suite to What Was Approved A previous owner may have obtained approval and then changed the property afterward. Make sure today's layout and use still correspond with what was permitted. Some Cities Make This Easier Depending on where you are investing, your municipality may provide online tools that can help with the initial research. Wayne and Gabby discuss several examples. Edmonton has tools investors can use to research secondary-suite permits. Calgary has a secondary-suite registry. Winnipeg allows investors to search issued permits by address. Other cities, including Toronto and Vancouver, have permit and property-research tools, but investors may still need to contact the appropriate municipal department to confirm the actual status of a secondary suite. The easiest approach is usually: Search the city's online tools first. Then, if there is any uncertainty, contact the municipality directly and ask: "Does this address have a permitted secondary suite, and were all required final inspections completed?" What Causes the City to Investigate? Municipalities generally are not driving around neighbourhoods searching for illegal basement suites. Problems often begin because somebody complains. Two obvious possibilities are: Tenants. And: Neighbours. A tenant who becomes unhappy with the landlord may discover that the suite is not legal. A former tenant may complain. A neighbour who is frustrated with parking, noise or repeated rental problems may report the property. Everything can operate smoothly for years. Until somebody makes the phone call. What Happens to the Tenant? This is one of the risks investors sometimes overlook. You may have a valid residential tenancy agreement with someone living in the basement. If the municipality determines they can no longer legally occupy that space, you now have two problems. You lost the rental income. And your tenant may need somewhere else to live. Depending on the circumstances and applicable law, the landlord could potentially face costs resulting from being unable to provide the premises promised under the tenancy agreement. That could include temporary accommodation, moving, storage or other expenses. This is an area where investors should obtain proper legal advice for their specific situation. Don't Forget the Insurance Company Another major concern is insurance. Imagine you buy a property with an il

    The Basement Suite Cashflows - But Is It Actually Legal?

  7. Sep 2

    Your Tenant Is Running a Business From Your Rental. Now What?

    Your Tenant Is Running a Business From Your Rental. Now What? Your tenant starts operating a business from your rental property. Do you care? Maybe not. But your condo corporation, municipality, lease agreement and insurance company might. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby break down a real situation happening inside their own rental portfolio after a condo corporation discovered that one of their tenants was advertising childcare services from the property. The tenant may simply have been trying to earn some additional income. From Wayne's perspective, that alone is not the problem. The problem is what that business could potentially do to the risk and liability attached to the property. Customers entering the rental. Children being cared for inside. Additional traffic and parking. Increased wear and tear. Business equipment or inventory. Potential injuries. And most importantly: What happens to your landlord insurance policy if the property is being used for something your insurer never agreed to cover? This is the kind of boring property-management system that becomes extremely important the day something goes wrong. What You'll Learn What happened when Wayne and Gabby discovered a tenant advertising childcare from their rental Why the condo corporation became involved Whether landlords should automatically prohibit every home-based business The difference between working from home and operating a customer-facing business Why customer traffic may dramatically change the risk How a business can create parking issues in a condominium Why certain businesses may increase wear and tear Why condo bylaws matter even if the landlord personally approves of the business Why municipal permission does not necessarily override condo bylaws Why Wayne recommends prohibiting businesses by default in the lease How landlords can later approve specific activities individually Why landlord insurance is based partly on the property's intended use How business activity could change coverage, exclusions, deductibles or premiums Why the tenant may need separate business liability insurance Whether the landlord may need to be added as an additional insured Why you should get insurance approval in writing Why landlords should confirm the facts before confronting a tenant How Wayne and Gabby communicated with their tenant Why simply sending an email is not the end of the process How landlords can verify compliance Why a property manager does not eliminate the owner's responsibility Why regular inspections and systems still matter even with professional management Why Wayne Doesn't Obsess Over Daily Real Estate News Wayne starts today's episode responding to a listener who complained that the Morning Show does not spend enough time discussing inflation, trade negotiations, interest-rate predictions and daily real estate-market news. His response is that most of that information has very little impact on how he operates a properly structured long-term rental portfolio. Wayne's strategy is not built around predicting what property values will do next month. It is built around buying properties capable of surviving 20 years or more. That means strong cash flow, strong returns without relying on appreciation, strong tenant demand, the right landlord environment, promising long-term market fundamentals and systems capable of protecting the investment when something inevitably goes wrong. Wayne does pay attention to market information when it could influence an actual decision. Should he buy? Sell? Refinance? Take equity out? Change financing strategy? Those forecasts matter because they affect the operation of the business. But endlessly predicting whether values will move slightly up or down is not the foundation of his investing strategy. Long-Term Investors Need Systems This leads directly into today's primary topic. If you are planning to own a property for 20 years, you need systems for situations that may only happen once or twice during that ownership period. A tenant operating a business from the property is one of those situations. The probability may be relatively low. The consequences could still be significant. And Wayne's philosophy is that the investor should have the system before the problem appears. The Real Situation: A Tenant Advertising Childcare Wayne and Gabby recently received an email from the manager of one of their condominium corporations. Someone had discovered a social-media advertisement from their tenant offering childcare or day-home services from the rental property. The condo corporation provided Wayne and Gabby with a screenshot of the advertisement, the applicable condominium bylaw and a request that the activity stop. The condo bylaws prohibited this type of commercial activity from the townhouse. Wayne's personal reaction was not: "How dare our tenant make money?" Quite the opposite. If the tenant can earn additional income, that may improve their financial situation and ability to pay rent. The problem is that Wayne's personal opinion does not override the condo bylaws. And even without the condo restriction, there would still be several other issues to investigate. Working From Home Is Not Necessarily the Same Thing A home-based business can mean many different things. Someone working remotely on a laptop is obviously different from operating a daycare. Someone selling T-shirts online and shipping them through the mail is different from running a salon with customers coming through the door every hour. Gabby says one of the most important dividing lines is often: Are customers attending the property? Once customers begin arriving, the potential liability changes. That can also affect parking, neighbours and common-property usage in a condominium. A childcare business creates another level of concern because multiple children may be on the property for extended periods. Increased Wear and Tear Insurance is not the only concern. Different businesses can also affect the physical property. Consider customer traffic, equipment, furniture, inventory, frequent use of entrances, additional plumbing or electrical usage and changes made to rooms to accommodate the business. The question becomes: How is this business changing the way my rental property is being used? That matters to both the landlord and insurer. Check the Condo Bylaws For condominium properties, this is one of the first checks. A tenant must comply with the condominium corporation's bylaws. A landlord cannot simply tell the tenant: "I'm okay with it." If the activity violates the condo bylaws, the landlord's permission does not solve the problem. That is exactly what happened in Wayne and Gabby's situation. The activity was prohibited under the condo bylaws, so it could not continue. Check Municipal Requirements If the property is not governed by restrictive condo bylaws, or if the bylaws permit the activity, the next question is whether the municipality allows it. Some businesses may require licensing, permits, specific zoning, parking requirements, occupancy restrictions or other approvals. However, municipal approval does not automatically mean the landlord or condo corporation must allow it. There can be multiple layers of requirements. Put It in the Lease Wayne recommends that landlords address home-based businesses directly in the lease. His preferred default is: No business activity without landlord approval. That does not mean the landlord can never approve one. It means the tenant must first ask. The landlord can then investigate: What exactly is the business? Will customers attend? Is it permitted by the municipality? Is it permitted by the condo corporation? Does it affect insurance? Is additional coverage required? Once those questions are answered, the landlord can make an informed decision. Leaving the lease silent creates unnecessary ambiguity. The Biggest Issue: Insurance This is where today's episode becomes especially important. A landlord insurance policy is written based on the expected use of the property. The insurer believes it is insuring a residential rental. If that rental begins functioning partly as a commercial operation, the risk may change. That could affect policy eligibility, liability coverage, premiums, deductibles, exclusions or required coverage. Wayne uses the example of someone operating a hair business. Imagine a customer gets injured. Or a hot styling tool causes a fire. The insurer investigates the loss and discovers that a commercial hair operation was being run from a property insured simply as a residential rental. That is not something Wayne wants to discover after the claim. Questions to Ask Your Insurance Broker If you are considering allowing a tenant to run a business from your rental, Wayne and Gabby recommend speaking directly with your insurance broker. Ask: Does my landlord policy permit this specific activity? Does customer traffic change my coverage? Does childcare change the coverage? Does business equipment or inventory change anything? Does the tenant require separate commercial liability insurance? Should the landlord be added as an additional insured? Are there new limits, exclusions or deductibles? Can the insurer confirm its approval in writing? That last question matters. A phone conversation with a broker is useful. Written confirmation is much better. Don't Accuse the Tenant Before Confirming the Facts Gabby emphasizes another important part of the process. Just because somebody tells you that your tenant is running a business does not automatically make it true. Verify first. Ask for evidence. Review the advertisement. Review the condo bylaws. Confirm what the tenant is actually doing. Check municipal requirements. Speak with your insurer. Then communicate with the tenant. In Wayne and Gabby's situation, they a

    Your Tenant Is Running a Business From Your Rental. Now What?

  8. Sep 1

    Stop Gambling On Real Estate

    Real Estate Is a Business, Not a Gamble Why did Wayne Hillier choose real estate investing over stocks, traditional investments, or other ways of building wealth? Because Wayne never wanted to rely on simply hoping an asset would increase in value. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby answer two investor questions: why they chose real estate investing in the first place, and how to approach friends or family about becoming joint venture partners without making the relationship weird. Wayne explains the realization that changed how he looked at real estate: A rental property isn't just an asset. It's a business. You can buy a property for its ability to generate revenue, control expenses, create cash flow and build equity — without requiring the property value to increase for the investment to work. The second half of today's episode tackles another common investor roadblock: raising money. If you have a great deal but need a money partner, how do you ask your friends? Wayne and Gabby's advice is surprisingly simple: Stop being weird about it. Have the conversation. 🧠 What You'll Learn Why Wayne prefers turnkey rental properties at this stage of his investing journey Why investors do not always need to buy distressed properties Why "make your money on the buy" is not a requirement for a profitable rental How Wayne and Gabby choose the path of least resistance when investing What happened when they recently took back possession of a rental after a three-year tenancy Why strong cash flow and reserve funds make expensive property decisions easier Why Wayne treats rental properties as businesses rather than speculative investments Why appreciation is a bonus rather than a requirement How Wayne compares a rental property to purchasing a franchise The two numbers Wayne focuses on when evaluating the business Why the Five Fundamentals matter before buying How the 5% Rule helps Wayne assess cash flow and risk Why Wayne believes investors should focus on what happens inside the property financially, not only what the property might eventually be worth How to approach friends and family about investing with you Why asking someone about a joint venture does not need to damage a friendship Why a real estate partnership should be presented as an opportunity, not a request for a favour What a basic 50/50 joint venture structure can look like Why a "no" does not need to become awkward Why your friends may become interested later after watching your progress What to do if everyone in your existing network says no Why sometimes the solution really is: go meet more people Two More Rental Properties Under Inspection Wayne and Gabby start today's episode with another update from their own portfolio. They recently completed an inspection on one of their newest potential acquisitions. Gabby had not previously seen the property but liked what she saw. It had already been renovated, appeared well suited to their target tenant profile, and looked like the type of property that could potentially be rented quickly without a major renovation. There were some areas that looked somewhat DIY or rough around the edges, but nothing immediately appeared catastrophic. Wayne was also heading to inspect another recently renovated property immediately after the show. That reflects where Wayne and Gabby are today in their investing journey: They like easy. Turnkey. Minimal renovations. Minor repairs. Get the property rented. Then move on to the next opportunity. You Don't Have to Buy the Worst House Wayne pushes back against a common message in real estate investing education: That investors need to find the ugliest, smelliest, most distressed property possible. Those properties can create opportunities. But they are not required. You also do not have to manufacture massive equity on every purchase for the investment to be successful. If the property functions properly as a rental business, generates good cash flow and produces an appropriate return, buying something turnkey can be completely reasonable. The strategy should depend on the investor. What are you trying to accomplish? How much time do you have? How much work are you willing to take on? What risks do you need to avoid? Wayne and Gabby describe their role as coaches as helping investors reverse engineer the life they actually want, then finding the path of least resistance to get there. The objective is not to become really good at renovating terrible houses. The objective is to use real estate to create the outcome you want. When the "Smell of Money" Is Your Own Property Ironically, Wayne and Gabby also walked into one of their existing rentals yesterday and immediately noticed a smell. The tenant had lived there for approximately three years and had always paid rent. But after getting possession back, the property was rougher than expected. It needed a substantial deep cleaning. There were damages and worn finishes. Some things needed repairs. And replacing one item could easily start pulling the thread that turns a small refresh into a major renovation. Wayne joked that this time it was not the "smell of money." It was the smell of money leaving their pocket. Their goal is to find the balance. They do not want to be cheap landlords. They also do not want to over-renovate a rental property and spend money that will never generate an adequate return. The property needs to meet the expectations of the tenant profile and market it serves. This Is Why Cash Flow Matters There is one reason this situation is not particularly stressful: The property has been extremely profitable. Wayne and Gabby keep their rental-property cash flow inside the portfolio rather than pulling it out personally. That money builds reserves. So when a property eventually needs repairs, cleaning, renovations or updates, the money is already available. There is no panic. No scrambling for a credit card. No wondering how they will afford the work. The business has generated the money required to maintain the business. As Wayne explains: Good cash-flowing properties are easier to operate. That is one of the reasons his investment criteria place so much emphasis on cash flow from day one. Why Wayne Chose Real Estate Investing The first listener question today was: "What made you decide to invest in real estate?" Yesterday's episode explained part of Wayne's origin story before real estate. Today he explains why, once he was earning good money in Alberta, real estate became the investment vehicle he ultimately chose. Wayne had reached a point where his career income had grown significantly. But he could also see the ceiling. The next major promotion was not immediately coming. The next huge raise was not coming. And he watched people around him make great incomes while spending almost everything they earned. Wayne did not want to do the same thing. He needed somewhere productive to put the additional money. That led him to investing. Why Traditional Investing Didn't Appeal to Wayne Wayne started researching stocks and traditional investments. But he struggled with the concept. From his perspective, putting money into something and then hoping its price increases felt too much like gambling. Give money to a financial advisor. Hope they choose the right investments. Buy a stock. Hope the company performs. Buy an asset. Hope demand increases its value. Wayne wanted more control. His previous experience playing poker actually helped shape the way he thought about this. Poker involved uncertainty, but Wayne could still make decisions throughout the game. He could evaluate information. Control his bets. Change his strategy. Manage his risk. He wanted an investment where his own knowledge and decisions could similarly influence the outcome. Then he started understanding rental real estate. A Rental Property Is Like Buying a Franchise This became the key realization. Imagine someone offered you several franchises. Every franchise costs: $300,000. Forget about whether the franchise itself will eventually increase in value. Instead, evaluate the business. How much revenue does it generate? What are the expenses? How much profit remains? What return are you receiving on the money you actually invested? What is the demand for its product? What are the risks? Wayne realized that rental properties can be evaluated in much the same way. Except instead of paying $300,000 cash for the entire business, you may invest approximately: $60,000 as a 20% down payment. Now evaluate what that $60,000 produces. Cash flow. Mortgage principal paydown. Return on invested capital. Tenant demand. Operating expenses. That is the business. Forget Appreciation Wayne says he could theoretically buy a $300,000 rental property and have it remain worth exactly $300,000 for decades. If the business itself produces strong profits and acceptable returns, the investment can still work. That changes everything. Instead of asking: "Will this house go up in value?" Ask: "Does this rental business make money?" Wayne argues that too many investors obsess over the value of the box while ignoring what is happening financially inside the box. His investment strategy does not require appreciation. If appreciation happens over a long holding period, great. That is a bonus. But the property should already work without it. The Five Fundamentals + The 5% Rule That does not mean rental properties are guaranteed to succeed automatically. There are still variables outside an investor's control. Tenant demand. Rental supply. Economic conditions. Interest rates. Market conditions. That is why Wayne developed a set of fundamentals for determining where and what to buy. He wants properties that: Cash flow from day one Generate strong returns without requiring appreciation Operate in

    Stop Gambling On Real Estate
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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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