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Volition meetup 2020.04 fundamentals presentation - part 2

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Following on the heels of our wildly popular FULL-DAY Quick Start Seminar on Feb 1 where we taught 100+ investors how, why, and where to invest in Toronto, we are finally having our first Meetup of 2020.

We ran out of time on Feb 1 (apparently an 8 hour event just isn't long enough!). By all accounts, it was because Matt kept speaking for too long. While his tangents might have been interesting (to him, anyway), it meant that we only glazed over the some of materials that you investors told us that you want to learn more about.

The focus of this Meetup will be to uncover the Hidden Gems that we only briefly touched upon that were planned as part of the original presentation. Specifically, in this March Meetup we will discuss in greater detail:
- "Real People, Doing Rea $#}+!" -- Continuation of our Expert Panel
- Investment Heat Map showing the best areas to invest in Toronto
- Various business models that Volition investors are employing in 2020
- Luxury Triplex Conversion vs. Turnkey Triplex vs. Condo vs. Preconstruction Condo vs. Small Town
- Pros/Cons of those business models
- Financials of those business models
- How to execute on a Luxury Triplex Conversion
- Actual Case Studies of investment properties
- Journey to $10k/month cashflow (10yr Advisory Model)

Hopefully we fit all of this into 2 hours (otherwise we will have to do a "Quick Start" Part 3!)

REMINDER: IF YOU DID A VIDEO TESTIMONIAL AT THE QUICK START EVENT, YOUR ENTRY TO THIS MEETUP IS FREE!! (please email Janny at janny@volitionprop.com that you will be attending)

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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! ming@volitionprop.com

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Volition meetup 2020.04 fundamentals presentation - part 2

  1. 1. @volitionproperties www.volitionprop.com Quick Start - Part 2! Everything you need to know to get started in real estate investing April 2020
  2. 2. @volitionproperties www.volitionprop.com Who is Volition?
  3. 3. @volitionproperties www.volitionprop.com Thank you Creeds!! We’re still open for coffee takeout and dry cleaning!
  4. 4. @volitionproperties www.volitionprop.com 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)… (and a bunch of other awards: SilverInvestment Award, Bronze Investment Award, Chairman’s Club, President’sClub, Top Producer, blah blah blah) ● $25M+ in personal holdings over 50 doors
  5. 5. @volitionproperties www.volitionprop.com Realty ManagementAdvisory Mentorship & Education & Consultation Acquisition of Investment Properties Design & Renovations Leasing & Property Management Renovations We are Toronto’s leading full-service, bespoke Real Estate Investment Firm
  6. 6. @volitionproperties www.volitionprop.com We do normal stuff better than normal agents! ● Why list with us? Investor advantage! ○ Your primary residence is a key tool in your investment portfolio ○ Active buyers / investor list ○ 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
  7. 7. @volitionproperties www.volitionprop.com The Volition Team!
  8. 8. @volitionproperties www.volitionprop.com Private Volition Mastermind Chat Group ● Open to Investor clients & Advisory 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 www.volitionprop.com 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 ● Send us an email at info@volitionprop.com to schedule a session!
  10. 10. @volitionproperties www.volitionprop.com Ming’s Market (COVID) Minute
  11. 11. @volitionproperties www.volitionprop.com Market Update - Sales Volume
  12. 12. @volitionproperties www.volitionprop.com Market Update - New Listings
  13. 13. @volitionproperties www.volitionprop.com Market Update - Average Resale Home Price
  14. 14. @volitionproperties www.volitionprop.com Volition Market Data
  15. 15. @volitionproperties www.volitionprop.com Toronto Downtown Core
  16. 16. @volitionproperties www.volitionprop.com Volition Metrics - Downtown municipalities
  17. 17. @volitionproperties www.volitionprop.com Volition Metrics - Downtown SF Detached
  18. 18. @volitionproperties www.volitionprop.com Toronto - Everywhere else
  19. 19. @volitionproperties www.volitionprop.com Volition Metrics - Uptown municipalities
  20. 20. @volitionproperties www.volitionprop.com Volition Metrics - Uptown SF Detached
  21. 21. @volitionproperties www.volitionprop.com Volition Metrics - Condos
  22. 22. @volitionproperties www.volitionprop.com Our Expert Panel Real People, Doing Real $#}+!
  23. 23. @volitionproperties www.volitionprop.com Our Panel - REAL People, doing real $#}+! ● Florence Lee ● Chris Law ● Vinay Kanthan
  24. 24. @volitionproperties www.volitionprop.com Case Studies
  25. 25. @volitionproperties www.volitionprop.com What to buy at $350k of capital ● Wait, who has $350k lying around? ● HELOC, Refi, RRSP’s, JVs, etc. ● No one has $350k lying around and no one should have $350k uninvested!
  26. 26. @volitionproperties www.volitionprop.com
  27. 27. @volitionproperties www.volitionprop.com
  28. 28. @volitionproperties www.volitionprop.com
  29. 29. @volitionproperties www.volitionprop.com An example of what to buy - $350k of capital ● Turnkey triplex ○ Purchase Price - $1.4MM ○ Initial Investment (Down, Tax, Closing) - $333k ○ Rents - $6500 ○ Expenses - $1100 ○ Mortgage Payment (3.3%, 30yr am) - $4,905 ○ Monthly Cashflow - $495
  30. 30. @volitionproperties www.volitionprop.com An example of what to buy - $350k of capital
  31. 31. @volitionproperties www.volitionprop.com An example of what to buy to maximize return
  32. 32. @volitionproperties www.volitionprop.com An example of what to buy to maximize return
  33. 33. @volitionproperties www.volitionprop.com An example of what to buy to maximize return
  34. 34. @volitionproperties www.volitionprop.com An example of what to buy to maximize return
  35. 35. @volitionproperties www.volitionprop.com An example of what to buy to maximize return
  36. 36. @volitionproperties www.volitionprop.com Other business models
  37. 37. @volitionproperties www.volitionprop.com What do I buy?
  38. 38. @volitionproperties www.volitionprop.com Advanced Investing (beyond today’s scope) ● Laneway Housing ● Development ● Executive Rentals ● Advanced Financing ● Luxury Triplex Conversions ● BRRR(R) ● Leasing & Property Management Tips
  39. 39. @volitionproperties www.volitionprop.com Luxury Triplex Conversion Turnkey Triplex Condo Preconstruction Condo Small Town Tenant Profile A+ A+ A+ A+ F Short Term Headache F A- A A+ F Long Term Headache A+ B+ A A F Short Term ROI A+ A- C C C Long Term ROI A+ A B- B- D Affordability F C A A+ A+++ Pros New, Cashflow Own land Entry-level $150k Deposit structure Cheap, Cashflow Cons $800k+ required $350k+ required Cashflow is hard at 20% down Can’t get rent or sell in the short term Higher risk Overall A A- B+ B+ D
  40. 40. @volitionproperties www.volitionprop.com **JOURNEY TO MASSIVE CASHFLOW OF $10k/month!! (SCAM ALERT!!)**
  41. 41. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – 3 Questions THE THREE MOST IMPORTANT QUESTIONS Where are you at? ● Existing properties: ? ● Household income: $200k ● Cash $90k, Stocks, $25k, RRSP $10k Where do you want to go? ● “Want the flexibility to work when I want to (contract work, retire early, do something else, etc.)” ● Think: FORM ● Goals: $5000/month ($60,000/year) When do you want to be there? ● When? They don’t know. (But they should know!!). Typical answer. “I don’t know what is realistic to expect” is a very common response. ● You need clarity on this!!
  42. 42. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 1 Step 1: Analyze their portfolio at 80% LTV ● Maximum equity takeout ○ Tommy condo: ○ Gina condo: ● Cashflow after refi ○ Tommy condo: ○ Gina condo: ● Total capital after refi:
  43. 43. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 2 Step 2: Acquisition Phase ● Determine what their capital can buy ● Determine mortgage qualification ability ● ASSUMPTION FOR THIS SCENARIO ○ Triplex, $1.2M, $500 cashflow ● Run financials & cashflow for all properties: 1. Property #1 2. Property #2 3. Property #3 4. Property #4 ● ARE WE CLOSE? ○ Cashflow: ??
  44. 44. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 3A Step 3. Choose Your Own Adventure Scenario A – Lazy Approach ● Wait 12 years. ● What happens during this time? ○ Property Value ○ Rents ○ Interest Rates ○ Inflation ● Run financials & cashflow for all properties according to assumptions: 1. Property #1 2. Property #2 3. Property #3 4. Property #4 ● ARE WE CLOSE? ○ Cashflow: ○ Net Worth:
  45. 45. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Teaching Moment TEACHING MOMENT!! ● Point of this session? ○ Tips & tricks?? ● Variables to Play with ○ Time ○ Appreciation ○ Interest Rates ○ Rent growth ● What is the MOST important variable? ● Key Learning Takeaways ○ Role of Cashflow ○ Importance of Time / Getting started early ○ WHY the “Lazy” scenario may be a good one for you?
  46. 46. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 3B Step 3. Choose Your Own Adventure Scenario B – TAKE MASSIVE ACTION Approach ● DOUBLE YOUR PORTFOLIO IN 4 YEARS ● THEN SELL HALF ● PAY OFF MORTGAGES FOR MASSIVE CASHFLOW
  47. 47. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 3B Equity Takeout Step 3. Choose Your Own Adventure Scenario B – TAKE MASSIVE ACTION Approach ● IN 4 YEARS, DO EQUITY TAKEOUT ● What is Value, Mortgage, Equity Takeout, Cashflow for: ● Property #1 ● Property #2 ● Property #3 ● Property #4 ● ARE WE CLOSE? ○ Cashflow:
  48. 48. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 3B Double Portfolio Step 3. Choose Your Own Adventure Scenario B – TAKE MASSIVE ACTION Approach ● DOUBLE YOUR PORTFOLIO ● For simplicity sake, assume that you're buy the EXACT same property that you did refinance. ● What is Value, Mortgage, Equity Takeout, Cashflow for: ○ Property #1 ○ Property #2 ○ Property #3 ○ Property #4 ○ Property #5 (SAME AS PROPERTY #1) ○ Property #6 (SAME AS PROPERTY #2) ○ Property #7 (SAME AS PROPERTY #3) ○ Property #8 (SAME AS PROPERTY #4) ● ARE WE CLOSE? ○ Cashflow:
  49. 49. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 3B Wait Step 3. Choose Your Own Adventure Scenario B – TAKE MASSIVE ACTION Approach ● WAIT 8 YEARS. ● What's the magic of 8 years? (Assumption of 5% growth) ● You are aiming to get to 50% LTV. ● What is Value, Mortgage for: ○ Property #1 ○ Property #2 ○ Property #3 ○ Property #4 ○ Property #5 (SAME AS PROPERTY #1) ○ Property #6 (SAME AS PROPERTY #2) ○ Property #7 (SAME AS PROPERTY #3) ○ Property #8 (SAME AS PROPERTY #4)
  50. 50. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Step 3B Divest Step 3. Choose Your Own Adventure Scenario B – TAKE MASSIVE ACTION Approach ● DIVEST STAGE. SELL OFF HALF. ● What is Value, Mortgage for: ○ Property #1 ○ Property #2 ○ Property #3 ○ Property #4 ● What is Net Proceeds after (proceeds after Realtor & Capital Gains) ○ Property #5 ○ Property #6 ○ Property #7 ○ Property #8
  51. 51. @volitionproperties www.volitionprop.com Journey to $10k Cashflow - Step 3B Pay off mortgage Step 3. Choose Your Own Adventure Scenario B – TAKE MASSIVE ACTION Approach ● PAY OFF MORTGAGES OF THE OTHER HALF. ● (Assume that it lines up) ● What is Value, Mortgage, Rents, Cashflow for: ○ Property #1 ○ Property #2 ○ Property #3 ○ Property #4 ● Total Cashflow: ○ Does this fall short / meet / exceed goals?
  52. 52. @volitionproperties www.volitionprop.com Journey to $10k Cashflow – Teaching Moment TEACHING MOMENT!! ● This is a more aggressive of a scenario. ● Limiting factors ○ Refi mortgages ○ Acquisition mortgages ○ DON’T WASTE MORTGAGES ON SMALLER CHEAPER PROPERTIES (i.e. outside Toronto) ● What is the watershed moment? ● Variables/factors: ○ Appreciation ○ Interest rates? ● Doesn’t have to be this prescriptive. Customize it for yourself: ○ 4 years to double ○ 8 years to 50% LTV ○ Sell off half, pay off mortgages ● BEWARE: ○ The “Myth” of Cashflow ○ Pitfalls?
  53. 53. @volitionproperties www.volitionprop.com Now What?
  54. 54. @volitionproperties www.volitionprop.com 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 ● Send us an email at info@volitionprop.com to schedule a session!
  55. 55. @volitionproperties www.volitionprop.com Next Meetup - May 3rd, 2020 ● Triplex Street Smart Tour! ● Join us for a Livestream as we tour two triplex conversation which we are currently conducting. One is mid-progress, the other is nearly completed.
  56. 56. @volitionproperties www.volitionprop.com Next Next Meetup - May 20th, 2020 ● Dave Dubeau - How to Raise Capital during a Pandemic ● Host of the Property Profits Podcast ● Raised millions in funds!
  57. 57. @volitionproperties www.volitionprop.com
  58. 58. @volitionproperties www.volitionprop.com THANK YOU!

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