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Volition meetup 2019.01


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Start Real Estate Investing! Where to invest? When to invest?


The holidays are done and the credit cards have been filled just as high as stockings. January is looking tight and KEEPING YOUR JOB is on your mind, let alone early retirement. If this is you don’t beat yourself up - in fact almost *50%* of consumers go into debt to pay for Christmas. THIS WAS ME 18 years ago. Faced with huge student debt, holiday costs and getting laid off during the dotcom crash. Good thing I had started investing in real estate and had a reliable second source of income. Since then, our investments have grown considerably over the years and the Volition Team has now helped invest over $110M in real estate!

What we will be teaching is our systematic method for investing in real estate based on our years of experience! STOP THE CYCLE! Do something in 2019 to achieve financial freedom. Learn to make real estate work for you!

During our session we’ll be answer questions like:

Where do I invest? How to identify the best places to invest. Small towns, big cities?
Is now the right time to invest? How to know if this is the right time to buy an investment property? Should I wait?
How do I buy the right property? Are condos good investments? Should I buy multifamily?
Where do I start with $50k, with $100k, with $300k? With different amount of investment funds, there are different strategies to take.
How does real estate actually make money? If you think it’s about buy low, sell high, you only understand a small part of real estate investing!

Make a change this year. Keep that promise to yourself that you’re going to learn to take control of your finances and make work optional. If you have ever thought about investing in real estate this, you don’t want to miss this session!


Jan 17th, 2019

Entry Fee: The workshop is $20 at the door or $15 when you pay online!

Location: Living Realty Office at 7 Hayden Street (not the dance studio!)

6:30pm-7:00pm: Arrival, meet and greet and networking
7:00pm-9:00pm: Presentations begin at 7pm SHARP
9:00pm-10:00pm: Networking


Volition Properties

Volition Properties is an award-winning Toronto boutique real estate investment firm that provides advisory and turnkey real estate investment services. Its mandate is to help real estate investors sustainably invest to build wealth in the Toronto real estate market by investing in low-risk, freehold, cash-flowing income properties over longer-term real estate cycles.

[Volition (vō-ˈli-shən): The power to make your own choices or decisions; free will. Living life by design, not by default.]

Contact us today for any questions about investing in real estate in Toronto!

Published in: Real Estate
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Volition meetup 2019.01

  1. 1. @volitionproperties Volition Investment Mastermind January 2019
  2. 2. @volitionproperties Who is Volition?
  3. 3. Realty ManagementAdvisory Mentorship & Education & Consultation Acquisition of Investment Properties Design & Renovations Leasing & Property Management Renovations
  4. 4. @volitionproperties
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  6. 6. @volitionproperties Who is Volition? ● Certified Real Estate Investment Advisors ● Toronto’s Exclusive Investor Realtor for REIN Buyer’s Group ● Nominated for REIN’s Highest Award (Michael Millenear Leadership Award) ● $25M+ in personal holdings over 50 doors
  7. 7. @volitionproperties We do normal stuff like listings and personal residence too! ● Why list with us? Investor advantage! ○ Active buyers / investor list ○ REIN Investor Database ○ REIN Buyers Group ○ The BEST marketing ■ Virtual 3D Dollhouse, Drone, Lifestyle video ■ Multiple languages, foreign investors ● We can also help you find your dream home! ○ Top 1% of all agents ○ Extensive local knowledge of one of your biggest investments ○ Combination personal residence and investment property
  8. 8. @volitionproperties Volition Mastermind Chat Group ● We’ve created a mastermind group for all our VIP clients. ● Talk about news, tenant issues, share contacts, basically help navigate the difficulty of this investor world! Let us know if we missed you!!
  9. 9. @volitionproperties 3 years and going strong! 3 s
  10. 10. @volitionproperties Ming’s Market Minute
  11. 11. @volitionproperties TREB Market Data
  12. 12. @volitionproperties Market Update - Sales Volume
  13. 13. @volitionproperties Market Update - Listings
  14. 14. @volitionproperties Market Update - YOY Summary
  15. 15. @volitionproperties Market Update - Indicators
  16. 16. @volitionproperties Market Update - Sales & Avg Price
  17. 17. @volitionproperties Volition Market Data
  18. 18. @volitionproperties Toronto Downtown Core
  19. 19. @volitionproperties Volition Metrics - Downtown municipalities
  20. 20. @volitionproperties Volition Metrics - Downtown SF Detached
  21. 21. @volitionproperties Toronto - Everywhere else?
  22. 22. @volitionproperties Volition Metrics - Uptown municipalities
  23. 23. @volitionproperties Volition Metrics - Uptown SF Detached
  24. 24. @volitionproperties Volition Metrics - Condos
  25. 25. @volitionproperties ● Sam’s Preconstruction ● Unsecured LOC $42k to cover 15% deposit ● 6% interest = $2520/year interest ● 4 years interest = $10,080 ● March 2010 ● 1 bedroom + 1 den (1 parking, 1 locker) ● $279,900 ● Liberty Village ● Upon close in 2014: $360,000 ● Rent $1700 ● Condo Fee $350 ● Cash flow = Break even Real Life: "If you bought this 10 years ago..."
  26. 26. @volitionproperties ● Sold May 2016 ● Sold for $400,000 ● Total Profit (after closing costs): $90,000 in six years! ● 2019: $600,000 ● Rent: $2500 Real Life: "If you bought this 10 years ago..."
  27. 27. @volitionproperties What’s News?
  28. 28. @volitionproperties Soaring rents are no longer just a Toronto and Vancouver problem. The latest survey from rental site Padmapper shows rents have jumped by double digits over the past year in 17 of 24 Canadian cities surveyed in December, with some of the country's (previously) most affordable markets seeing the largest hikes. Toronto retained its position as the country's most expensive rental market for one-bedroom units, with asking rents rising 11.9 per cent in a year, to a median of $2,260. Two-bedroom rents rose 13.1 per cent, to $2,850 per month. By comparison, Vancouver had a tame year, with one-bedroom rents up 6.5 per cent, to $2,130, while two-bedroom units rose 0.9 per cent, to $3,230. Meanwhile, many smaller and mid-sized Canadian cities saw considerably faster rent jumps, with hikes in the 15- per-cent range in Halifax,Kingston, Kelowna, London and Victoria. Quebec's two largest metros, Montreal and Quebec City, also saw rent hikes in this range. So why are rental rates rising in many cities that haven't seen a house price boom? What explains, for instance, struggling Saskatoon's 10.7-per-cent rate hike? The likeliest culprit is the mortgage "stress test" put into place at the start of last year, combined with rising interest rates that have pushed up monthly mortgage payments. While the stress test and the Bank of Canada's rate hikes were meant in part to keep Canadian homebuyers from overextending themselves on their mortgages (and the evidence so far suggests it has worked), it may have had an unintended consequence: Forcing would-be homebuyers to stay in rental housing longer as they save up a larger down payment. Rents Rise By Double Digits In 17 Of 24 Canadian Cities: Padmapper
  29. 29. @volitionproperties Another reason commonly cited for the rent spikes is the acceleration in Canada's population growth. The federal government's increase to the country's quota of new arrivals to above 300,000 has spurred faster population growth, and many market experts say real estate developers haven't yet adjusted to the new reality. As new immigrants tend to rent rather than buy, this puts more pressure on the rental market than on the sales market. Still, there may be some relief on the horizon for renters, at least in some cities. Rents Rise By Double Digits In 17 Of 24 Canadian Cities: Padmapper Toronto is currently seeing the highest rate of purpose-built apartment construction the city has seen in three decades, according to industry research group Urbanation. That will slow down rental rate growth this year, the group predicted, noting that the rate at which rents have been increasing had already been slowing through 2018. But many experts say the upward pressure on rental rates will continue in 2019, in Toronto and elsewhere, as there's little on the horizon to change the situation in most cities. Rental and sales site polled 16 industry professionals, and they predicted 11-per-cent rental rate growth for Toronto in 2019, a 9-per-cent increase in Ottawa and 7 per cent in Vancouver. They point to near record-low vacancy rates in those cities as one sign price growth will continue.
  30. 30. @volitionproperties Introduction To Real Estate Investing in Toronto
  31. 31. @volitionproperties Is now the right time to invest? ● Should I buy now? ● Should I wait? ● How do I know when the right time to invest is?
  32. 32. @volitionproperties Is now the right time to invest? ● Sound real estate investment strategies are based on long term returns and are not reliant on market timing ● Ming’s Favourite Saying: “...............” ● Long term investing is critical - here is why
  33. 33. @volitionproperties How Real Estate Builds Wealth
  34. 34. @volitionproperties Average Market
  35. 35. @volitionproperties FLAT Market
  36. 36. @volitionproperties DOWN Market
  37. 37. @volitionproperties What’s actually happened in Toronto ~7% growth over past 10 years
  38. 38. @volitionproperties Real Estate Values Over the Long Term
  39. 39. @volitionproperties Cashflow - What does it really mean? ● When investors are new, they focus heavily on cash flow ○ Why not? If you can get more returns, it must be better ○ Cashflow is a function of risk ○ You don’t get something for free! ● What would you choose? ○ $500 vs $2000 cash flow ○ 5% vs 7% appreciation
  40. 40. @volitionproperties 5% Appreciation and $2000 Cash Flow Value of Property $1,000,000 Down Payment 20% Annual Interest Rate 4.00% Years 25 Payments Per Year 12 Mortgage Amount $800,000 Appreciation 5.00% Total Periods 300 Rent Increase 5% Monthly Cash Flow $2,000 Final Property Value $3,466,845 Final Equity Built $4,443,095
  41. 41. @volitionproperties 7% Appreciation and $500 Cash Flow Value of Property $1,000,000 Down Payment 20% Annual Interest Rate 4.00% Years 25 Payments Per Year 12 Mortgage Amount $800,000 Appreciation 7.00% Total Periods 300 Rent Increase 5% Monthly Cash Flow $500 Final Property Value $5,692,214 Final Equity Built $5,936,276
  42. 42. @volitionproperties The impact of cash flow vs appreciation 5% and $2k cashflow $4,443,095 7% and $500 cashflow $5,936,276 Delta $1,493,181 What’s the important take away?
  43. 43. @volitionproperties Cashflow - What does it really mean? ● Cashflow has a purpose and that’s to help hold for the long term ● Higher cashflow ≠ better investment ● There is always a trade off for higher cashflow, that might be ○ Tenant profiles ○ Distance to manage properties ○ Scalability ○ Property Management ○ Economic dependency on a single industry ○ More headache ● Cashflow is largely a myth. What do we mean by that?
  44. 44. @volitionproperties Appreciation for the long term - how do you get it?
  45. 45. @volitionproperties Appreciation for the long term - how do you get it? LOCATION! LOCATION! LOCATION!
  46. 46. @volitionproperties How to eventually live off your cashflow? ● The Multiplier effect is how you get to lots of doors or significant cash flow ● Whenever you hear about someone who has 20+ doors, this is how it was done
  47. 47. @volitionproperties Long term buy and hold looks great. But what about... ● What about flipping? ● Wholesaling? ● Development?
  48. 48. @volitionproperties Long term buy and hold looks great. But what about... ● What about flipping? ● Wholesaling? ● Development? SHORT TERM MARKET RISK!
  49. 49. @volitionproperties Where do I invest? ● 4 areas of Risk ● What the best place to invest in? ● Look at your customer - target demographic ○ Why is this the best demographic ● Look at long term appreciation of the property ○ Transit ○ Job Market and population growth
  50. 50. @volitionproperties 4 Areas of Risk
  51. 51. @volitionproperties What the best place to invest in?
  52. 52. @volitionproperties What the best place to invest in?
  53. 53. @volitionproperties
  54. 54. @volitionproperties
  55. 55. @volitionproperties
  56. 56. @volitionproperties
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  58. 58. @volitionproperties
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  83. 83. @volitionproperties This even applies to your personal residence ● My personal residence ○ Investment Pros ■ Yonge and Sheppard ■ Near public transit, access to highways, school ■ Bought land not house ■ Duplex ○ Investment Cons ■ Low rents compared to downtown ● Purchased for $500k. Now worth $1.5MM ● Original rent was $1000 now rents for $3800
  84. 84. @volitionproperties An example of what to buy - $50k of capital ● What our clients have bought in the past 6 months... ○ Strategy: Preconstruction ○ Project: Artworks ○ Tenant profile: Millennials ○ Location: Heavy gentrification ○ Rental Strategy: House Hacking ● Financials ○ Price: $825k ○ Rents: $4900 ○ Expenses: $560+300+$3200 ○ Cashflow: $850
  85. 85. @volitionproperties An example of what to buy - $100k of capital ● What our clients have bought in the past 6 months... ○ Strategy: Resale Condo ○ Project: Queen & Gladstone ○ Tenant profile: Millennials ○ Location: Uber hipster ○ Rental Strategy: Tenant turnover for higher rents ● Financials ○ Price: $595,000 ○ Rents: $2700 ($2250 currently) ○ Expenses: $200 + $400 + $2100 ○ Cashflow: Break-even
  86. 86. @volitionproperties An example of what to buy - $300k of capital ● What our clients have bought in the past 6 months... ○ Strategy: Resale Triplex ○ Project: Roncesvalles ○ Tenant profile: Millennials ○ Location: Super attractive for young professionals and young families ○ Rental Strategy: Already renovated, assume tenants, higher rents upon turnover(!) ● Financials ○ Price: $1.352M ○ Rents: $2900 + $2350 + $1300 = $6550 ○ New Rents: $2900 + $2700 + $1700 = $7300 ○ Expenses: $400 + $200 + $400 + $4900 =$5900
  87. 87. @volitionproperties An example of what to buy - $70k + $15k + $39k= $124k ● As the market is shifting again… Assignments!! ● Queen & Spadina ● SQ2 ● $545,000 ● Rent: $2600 ● Expenses: $300 + $350 + $1950 ● Cashflow: Break even
  88. 88. @volitionproperties What do I buy?
  89. 89. @volitionproperties Announcements
  90. 90. @volitionproperties Sign up for Advisory. ● 60 Minute complimentary Advisory Consultation ● We will help you determine ○ Where you are at ○ Where you want to go ○ Help you build a customized plan to get there ● Sign up app on iPad that is being passed around ● We will reach out to you by Monday to schedule a session with our Advisory team
  91. 91. @volitionproperties What do YOU want to learn about this year?
  92. 92. @volitionproperties Next Month - Advanced Mortgage Planning - WEDNESDAY Feb 20 ● I need 3 volunteers. We can anonymize if necessary. Email me directly at ● We will do a real life case study. Not the fluffy generic crap that you get everywhere else. ○ Straightforward: Salaried, 1st property, etc. ○ Small portfolio: 3-5 properties, looking to grow portfolio, hitting the financing wall. ○ Complex: 10+ properties, self-employed and/or commissioned income, corporations, divendends, gross income vs. net income, taxable income, B-lending.
  93. 93. @volitionproperties
  94. 94. @volitionproperties
  95. 95. @volitionproperties Pub Time! ● Drinks at Burgs BURGS YOU ARE HERE