Does Investing in Toronto Real Estate Still Make Sense Today?

@volitionproperties
www.volitionprop.com
Volition Investment Mastermind:
Does Investing in Toronto Real Estate Still
Make Sense Today?
April 2022

@volitionproperties
Monthly Meetup Agenda
6:30 - 7:00 pm Online networking (your network is your net worth!)
And yes, the Meetup will be recorded and posted on our website!
www.volitionprop.com/mastermind-meetup/
7:30 - 9:00 pm The Main Event
7:00 - 7:30 pm Volition presentations including market updates and case studies

@volitionproperties
Who is Volition?

@volitionproperties
Who is Volition?
● Mission Statement: To help people navigate the complex world of real
estate and to be the team who has your back.
● Complete Solution Provider: Everything you need to be successful.
● We Figure It Out For You: Cutting-edge research, analysis, and (more
importantly) synthesis in putting together solutions for the competitive
Toronto market.

@volitionproperties
Who is Volition?
● Credentials:
○ $32M+ personal holdings in Toronto Real Estate (55+ doors)
○ Featured on HGTV, REIN, RISE, Property Profits Real Estate Podcast, etc, etc.
○ Certified Real Estate Investment Advisors
○ Michael Millenear Real Estate Investing Leadership Award nomination
○ Realtor Awards: Chairman Award, President Award, Top Producer Award 5 years running

@volitionproperties
Frequently featured as EXPERT REALTORS on HGTV
1. Expert Tips That Will Help You Become a Homeowner Before 40
2. 15 Things You Need to Know Before You Buy Your First Rental Property
3. 15 Important Things to Look for When House-Hunting for Your First
Property
4. How to Get a $100K Renovation for Free, According to the Experts
5. Top 15 Trends That Renters Are Looking for During the Pandemic
6. How to Make an Extra $50k When Selling Your Home
7. This Housing Trend is Taking Over the Toronto Real Estate Market Right
Now
8. Expert Stager Shares Top Tips To Sell Your Home in a Snap
9. What to Look Out for in the Toronto Real Estate Market for Summer 2022
…and more to come!

@volitionproperties
Volition Services
Mentorship,
Education &
Consultation
Leasing &
Property
Management
Toronto’s Leading Real Estate Investment Advisory & Realty Firm
Realty Management
Advisory Renovations
Acquisition of
Properties
Design &
Renovations

@volitionproperties
The Volition Team
Toronto’s Leading Real Estate Investment Advisory & Realty Firm
Matthew Lee
Founder &
Managing Partner
Ming Lim
Head of Construction and
Realty Services
Florence Lee
Strategic Initiatives Manager
Construction Project Mgmt
Sam Ho
Special Advisor
Brian Li
Construction Project Mgmt
Alykhan Jinnah
Realty Coordinator
Chris Law
Realty & Leasing Services
Daniel Weng
Realty & Leasing Services
THIS COULD BE YOU!
Realty Services
THIS COULD BE YOU!
Realty Services
Alcina Sung
Interior Design & Stager

@volitionproperties
Investor agents make the best “normal”
agents!
● We can help you find your dream home and have it make financial sense
○ Does this property hold to long term appreciation fundamentals?
○ Does it require construction? How much are those things going to cost?
○ Can I have a secondary suite to help with cash flow? How much are rents?
What tenant profiles will I get?
○ How can my primary residence help me qualify for investment properties in
the future? HELOC? Secondary suites?
○ Advanced financing - B Lenders, Second Mortgages, Private Lenders
○ Top 1% of all agents
● We sell investor properties and single family homes
○ Active buyers / investor list, email marketing, social media marketing
○ Virtual 3D Dollhouse, Drone, Lifestyle video
○ Multiple languages, foreign investors
Your home is the most important tool in your investment journey!

@volitionproperties
The Volition Advantage
The Volition Team!

@volitionproperties
Private Volition Inner Circle Whatsapp Group
● Exclusive to Investor clients & Advisory clients
ONLY.
● Talk about news, tenant issues, share contacts,
basically help navigate the difficulty of this
investor world!
● Let us know if we missed you!!

@volitionproperties
Ming’s Market Minute

@volitionproperties
Sales Volume

@volitionproperties
Average Resale Home Price

@volitionproperties
New Listings

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Volition Market Data

@volitionproperties
Volition Metrics - Downtown municipalities

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Volition Metrics - Downtown SF Detached

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Volition Metrics - Condos

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Volition Metrics - Toronto - Everywhere else

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Volition Metrics - Uptown SF Detached

@volitionproperties
Case Study:
The Volition Advantage - How We
Can Help You Sell Your Property

@volitionproperties
The Five-Step Listing Process
Discussion &
Planning
Pre-listing Marketing Listing
Sale of
Property

@volitionproperties
Step 1: Discussion & Planning
• Understand your needs
• Explain the current market conditions
• Explain our listing & marketing strategy
• Explain the required paperwork
• Ongoing communication

@volitionproperties
Step 2: Pre-listing
•Walkthrough the property together
•Recommend the highest ROI renovations
•Enlist the best designers, stagers, contractors
•Coordinate elevator bookings, set up lockbox

@volitionproperties
Step 3: Marketing
● Cleaning & Staging
● Professional Photos
● Feature Sheet
● MLS & Social Media

@volitionproperties
Step 3: Marketing - Before Photos

@volitionproperties
Step 3: Marketing - After Photos

@volitionproperties
Step 4 & 5: Listing and Sale
Listing
• Listing goes live on MLS
• Answer questions from Buyer agents
Sale of Property
• Review Offers & Discuss Strategy
• Negotiate Offers &
• Offer accepted!

@volitionproperties
The Result
● 5 FIRM Offers
● SOLD FOR $701K
● New building record by ~$50k
● Greatly exceeded client’s expectations and felt
reassured throughout the entire process
● Highest Sold Price In The Building Ever for a
non-penthouse unit!

@volitionproperties
Post-Listing Support
● Toilet leaked water into the unit below causing
damage to the ceiling
● Coordinated toilet repair with plumber
● Worked with Property Management to form
agreement on repair to damage
● Coordinated repair and painting of ceiling

@volitionproperties
Recent SOLD Volition Listings!
● 66 ArmstrongAve – SingleFamily with NannySuite
● 264 StrathmoreBlvd – TurnkeyTriplex
● 135 MacDonellAve – SingleFamilywith NannySuite
● 204-20 MinowanMiikanLane – Condo
● 100 ForestRidgeRoad– LuxuryEstate
● 46 EmersonAve – TurnkeyTriplex
● 922 LoganAve – SingleFamilywith NannySuite
● 429 BrockAve – Turnkey Triplex
● 78 HarcourtAve – SingleFamily
● #2707-55 RegentPark Blvd – Condo
● Artworks East Tower E-1202 Unit2 Level12 – CondoAssignment
● RiversideSquare,414 QueenSt E, Unit24, Level 4 – CondoAssignment
● SQ2, 80 VanauleySt – CondoAssignment
● 53 Eversfield Road– SingleFamily
● 19 BattenbergAve – SingleFamily
● 606-25 CapreolCrt – Condo
● 38 HumbersideAve – TurnkeyFourplex
● 1177 DufferinSt – SingleFamily with BasementMortgageHelper
● 48 DewhurstAve – TurnkeyFourplex
● 4908-8 The Esplanade– Condo
● 3007-12 York St – Condo
● 539 Jarvis PH4 – Condo
● 300 AngusGlenBlvd – SingleFamily
● 409-8 Charlotte– Condo
● 1070 ProgressAve – Condo
● YorkdaleCondoBldg1 #1116 – CondoAssignment
● 42 CamdenSt – Condo
● …And many more

@volitionproperties
Interested in Listing?
Please reach out to us to book an appointment!
● Email: info@volitionprop.com
● Book a call using the link in the chat box
● The next 3 clients who list with us within the next 3
months will get free staging and free contractor
management!!

@volitionproperties
The Main Event:
Does Investing in Toronto Real
Estate Still Make Sense Today?

@volitionproperties
Does Toronto Still Work?
● Single most common question I get these days…
● Intention for today:
○ Provide zoomed out view
○ Fill in the gaps
○ Connect the dots

@volitionproperties
Does Toronto Still Work?
Put questions in to the
chat box! Quick Q&A at
end of every section
(remind me if I forget! :))
Agenda:
a) Economic Fundamentals vs. Market Influencers
b) Chaotic Environment! (How do you separate the signals from the noise?)
c) Rising Interest Rates & Rising Prices: (Cashflow Sensitivity Analysis)
d) What is happening to Market Rents?
e) Bringing it all together (What does this mean for Toronto as a whole?)
f) Boosting Cashflow (Actionable Volition Strategies & Tactics)

@volitionproperties
Economic Fundamentals vs. Market
Influencers

@volitionproperties
Preamble
● This is just a quick
overview
● Full-day deep-dive
Masterclass (Jan 2021) in
the Premium Content
section of our website

@volitionproperties
What Drives A Real Estate Market?
Economic Fundamentals!
Market Supply/Demand!

@volitionproperties
Economic
Fundamentals
GDP Growth
Job Growth
Population Growth
Rental Demand
Vacancy Rates
Rental Rates
Real Estate Demand
Real Estate Fundamentals
The RIGHT Tenant Profile
The RIGHT Neighbourhoods
Well-Paying Stable Companies
Diversified Industries
Transit Lines & Nearby Transit Improvements
Neighbourhood Gentrification
Infrastructure Developments
Immigration
Development Potential
Densification Opportunities
Laneway/Garden Suite
The RIGHT investment strategy
The RIGHT property to execute your strategy
+ =
Real Estate
Investment
Success
The Volition
“Secret Sauce”
(not for today though!)
The “RIGHT”
way to invest in
Toronto
Econ Fundamentals
are strong in
“Toronto”

@volitionproperties
a) Interest Rates (cost of financing a purchase)
b) Ease of Borrowing (the availability of financing)
c) Confidence in real estate as an investment
vehicle
d) Inflation
e) Legislative Amendments (taxation and/or local
authority)
f) Foreign Investors in Local Real Estate
g) Investment Alternatives
This stuff matters! But it's not as critical
as Economic Fundamentals!
So where do Market Influencers fit in?
Is this shifting
the market? Is this creating an
Opportunity?
Is it easy to confuse
these with Econonic
Fundamentals?

@volitionproperties
Immigration
Economic
Fundamentals
GDP Growth
Job Growth
Population Growth
Rental Demand
Vacancy Rates
Rental Rates
Real Estate Demand
Fundamentals vs. Influencers
Market Influencers
Interest Rates (cost of financing a purchase)
Ease of Borrowing (the availability of financing)
Confidence in real estate as an investment vehicle
Inflation
Legislative Amendments (taxation and/or local authority)
Foreign Investors in Local Real Estate
Investment Alternatives

@volitionproperties
Chaotic Environment
(may we live in interesting times…)

@volitionproperties
Summary of the Chaos
Topic Leads To Effect/
Result
Action/Insight Economic Fundamental or Market Influencer?
Inflation at 6.7%
(↓ Unemployment
↑ Econ Growth
↑ Price of Goods
↑ Wages
↑ RE Prices)
↑ Interest Rates ↓ Cashflow Use Boosting Cashflow: Advanced Volition Tactics & Strategies.
(Also keep in mind, ↑ Money Supply)
Economic Fundamental
● ↑ Economic Growth (+ve)
● ↓ Unemployment (+ve)
Market Influencer
● ↑ Interest Rates (-ve)
What’s happening
to Rents
– Rents NOW
(combined with
↑ Prices
↑ Mortgage
leads to…)
↓ Cashflow Keep in mind, Inflation is a rising of prices across the board. Rents
are on the rise.
Use Boosting Cashflow: Advanced Volition Tactics & Strategies
Economic Fundamental
● If – Rents (neutral)
● If ↑ Rents (+ve)
NRST 20% ↓ Demand…? – NRST 15% didn’t have intended effect. Extra 5% isn’t doing to
change things for foreign investors. Still cheap comparatively
speaking.
Market Influencer
● If ↓ Demand (-ve)
War in Ukraine &
Global Uncertainty
↑ Population…?
↑ Demand
↑ Foreign
Capital
(↑ Price)
↓ Cashflow Keep in mind, flight of capital to safety in times of uncertainty. Economic Fundamental
● ↑ Population (+ve)
● ↑ Demand (+ve)
Market Influencer
● ↑ Foreign Capital (+ve)
Notice: Similar
cause/effect
profiles…
Will do deeper
dive on yellow
items

@volitionproperties
Summary of the Chaos
Topic Leads To Effect/
Result
Action/Insight Economic Fundamental or Market Influencer?
Flippers Tax vs.
Principal Residence
↑ Tax
↓ Profit
– Effect
(Not enough to
change
market)
Tax was already there
Do it in a corp, active business income 12.5%
If you were seriously doing this already, you weren’t declaring as
Principal Residence anyway… this is just for the odd mom&pop
“flippers”.
Burden of proof is now on you. PITA factor.
Market Influencer
● ↑ Gov’t Meddling (-ve)
Restriction of
HELOC for
Downpayment
6 months in bank
account
– Effect
(PITA for
investors)
Ways around it, just costs a bit more in HELOC interest, just delays
things a little bit.
Market Influencer
● ↑ Gov’t Meddling (-ve)
City of Toronto
Development
Changes
Garden Suite
Easier to build
↑ Supply of units
(but NOT
ENOUGH to
change market)
– Rents
As investor,
↑ Cashflow
↑ Asset Value
Market Influencer
● ↑ Gov’t Meddling (+ve)
All the “Headlines”... is it
really Econ Fundamentals
or Market Influencers?
Open Bidding ↓ Prices…? – It’s only optional. It’s a Gov’t Optics ploy. And… check Australia
to see if it REALLY curbs pricing (professional auctioneers).
Really should be Open Data
Market Influencer
● ↑ Gov’t Meddling (MAYBE -ve)

@volitionproperties
Immigration
Economic
Fundamentals
GDP Growth
Job Growth
Population Growth
Rental Demand
Vacancy Rates
Rental Rates
Real Estate Demand
REMINDER: Fundamentals vs. Influencers
REMINDER: Always think
about “Newspaper
Headlines” in context
Market Influencers
Interest Rates (cost of financing a purchase)
Ease of Borrowing (the availability of financing)
Confidence in real estate as an investment vehicle
Inflation
Legislative Amendments (taxation and/or local authority)
Foreign Investors in Local Real Estate
Investment Alternatives

@volitionproperties
(PREVIEW: Where is Toronto in the
Real Estate Cycle?)

@volitionproperties
(PREVIEW: Where is Toronto in the
Real Estate Cycle?)
Million Dollar
Question #2: Where is
Toronto in the real
estate cycle?
Million Dollar Question
#1: Where do you want
to be as an investor in
the Real Estate Cycle?
June Meetup!

@volitionproperties
(PREVIEW: Real Estate Cycle Scorecards!)
+
T
P
+
P
P
+
P
–
P
P
P
T
+
-
+
5 7 6 7 4 4 3 1 0
June Meetup!
Toronto in 1989. Economic
Fundamentals indicate entering late
Boom phase / early Slump phase.
Toronto in 2010 (based on charts on
previous slide). Economic
Fundamentals indicate entering late
Slump phase / early Recovery phase.
Toronto in 2022. Economic
Fundamentals indicates…?

@volitionproperties
Rising Interest Rates & Rising Prices:
Cashflow Sensitivity Analysis

@volitionproperties
● Same Basic Volition Triplex in all scenarios
○ Value: $1.4M
○ Rents: $5750 ($2100, $2100, $1550)
○ Expenses: $1100
○ Mortgage (80%, 30yr, 2.00%): $4140
○ Cashflow: $510
Sensitivity Analysis
3-4 months
ago

@volitionproperties
● Take that same Triplex…
● Variables:
○ Increment price by $50k
○ Increment interest rate by 0.25%
● Commentary:
○ Every $50k Price jump is ~$150 in cashflow
○ Every 0.25% is ~$150 in cashflow
○ Now: $1.5M, 2.75%, -$249 cashflow
Increment Price & Interest Rate
Now
3-4 months
ago

@volitionproperties
● Running Total:
○ Yr0: -$249 cashflow x 12 months = -$2988
● Commentary
○ Is this ideal? No, definitely a harder environment to invest in.
○ Is it still viable? Very much so.
○ If necessary, capitalize it (have it available in additional capital upon acquisition).
○ Does this make or break?? Let’s see…
Yr0 Cashflow
Now
3-4 months
ago

@volitionproperties
● Variables:
○ Apply 3% rent growth y/y
● Running Total:
○ Yr0: -$249 cashflow (-$2988 annual)
● Commentary:
○ We are seeing rents starting to uptick again (discussed later)
○ As rents increase over time, you will get to neutral/positive cashflow
Yr1 Cashflow
Yr1: 3% rent
increase
(~$175)
Yr1: 3% rent growth

@volitionproperties
● Variables:
○ Apply 3% rent growth y/y
● Running Total:
○ Yr2: $101 cashflow ($1212 annual)
● Commentary:
○ Cashflow negative is not ideal, but don’t overreact to the headlines
○ Capitalizing $4000 in negative cashflow when you need $350k for an
acquisition is not unreasonable.
○ It’s not forever!
Yr2 Cashflow
Yr2: 3% rent
increase
(~$350)
Yr2: 3% rent growth

@volitionproperties
● Mid-long term prospects are still very strong.
● Make sure you stick to Econ & RE Fundamentals now more than ever!
● Important considerations:
○ To get faster rising rents: “Toronto’s Next Hottest Neighbourhood” Meetup (Jun 2021)
○ Make sure you have a plan to get to neutral/positive cashflow.
○ Remember: Increased interest rates don’t exist in a vacuum! It’s a RESPONSE to
inflation & econ growth and eventually increased rents (remember the arrow!)
○ Utilize Advanced Volition Strategies & Tactics to boost cashflow (discussed later).
Takeaways

@volitionproperties
● Does it still make sense to invest in Real Estate with neutral/negative cashflow?
○ Elsewhere, no.
○ Toronto, yes (for the right property in the right areas).
○ Keep in mind the larger picture.
Does it still make sense?
NOTE: This is demonstrating negative cashflow. We can still find
neutral or even slightly positive cashflow for Volition clients.

@volitionproperties
Name of Return Annual ROI Target ROI
Relative Contribution of Cashflow to ROI
Reno Lift Cash-on-Reno Lift % ~50% (depending on how extensive
the reno is)
Appreciation Cash-on-Appreciation % ~23% (5% market appreciation at
80% LTV)
Mortgage Paydown Cash-on-Mortgage
Paydown %
~8% (First 5 years you
pay down 13% principal)
Cashflow Cash-on-Cash % ~2% ($200-$500/mo)
Don’t forget: The role of
cashflow is to hold for
long term. You’re not
retiring off $200/mo.
Keep in mind the ROLE
and the relative
CONTRIBUTION of
cashflow to the overall
ROI.

@volitionproperties
Year 4 Year 8 Year
12
THE VOLITION MULTIPLIER EFFECT
5% growth
3% rent
3% expenses
Year 0 Free & Clear
Year 18
50% LTV
Value: $1.5M
Mortgage: $1.2M
Downpayment: $300k
Rent: $6000
Expenses: $1100
Mortgage: $4800
Cashflow: $0
Value: $1.8M Value: $2.2M Value: $2.7M Value: $3.6M Value: $3.6M
Mortgage: $0M
Rent: $9800
Expenses: $1900
Mortgage: $0
Cashflow: $7900
x4
Value: $14.4M
Mortgage: $0M
Rent: $39,200
Expenses: $7600
Mortgage: $0
Cashflow: $31,600

@volitionproperties
Result of 18 Year Action Plan
• Portfolio value: $3.6M x 4 = $14.4M
• Mortgage value: $0M x 4 = $0M
• Rent: $9800 x 4 =
$39,200
• Expenses: $1900 x 4 = $7,600
• Mortgage: $0 x 4 = $0
• Cashflow: $7900 x 4 = $31,600
• Annual Portfolio Cashflow: $379,200
Alternative Scenarios:
● Buy single property and wait 30 yrs
● Toronto at 10% growth (shorter 2.5yr iteration period, ~11yrs to get end)
● Fewer iterations
● NOTE: Financing is going to be your biggest roadblock!
“REACHING BELIZE”
Keep in mind the
larger picture…
Cashflow Now vs.
Cashflow Later

@volitionproperties
What is happening to Market Rents?

@volitionproperties
“The biggest change over the past
six months is a return to
downtown with big rent increases
in Toronto and Vancouver, as well
as decent rent growth in cities like
London, Hamilton and Kingston in
Ontario,” says Ben Myers,
president of Bullpen Research and
Consulting Inc., a residential real
estate advisory firm in Toronto.”
Rent Rate Trends

@volitionproperties
Rent Rate Trends

@volitionproperties
Bringing It All Together:
What does this mean for Toronto as
a whole?

@volitionproperties
● No!
● Still the same mid-long term prospects as before.
● Just a slightly more challenging environment to
invest in now.
● As the market has shifted, we need to adapt to the
change.
● Keep Calm, Keep Perspective!
● Our only job as RE Investors is to adapt to changes in the
market!
Have the Fundamentals changed in Toronto?

@volitionproperties
Areas that still make sense in Toronto
Updated for
21st Century

@volitionproperties
● I’m considering Buying: What should I know?
○ We’re shifting from fighting for scraps to having some choice - both for investors and
end users
■ Offer nights are less busy
■ Now is the time to capitalize on getting the right properties
■ It’s not like Toronto has become cheap in two months! There might be some
slight cost savings, but these periods of slow down really allow for buying the
right property
■ It’s not shifting to a buyers market for without reason!
Volition Realty: Boots-on-the-Ground Market Update

@volitionproperties
○ Fundamentals more than ever!
■ Neutral cashflow may be manageable for a temporary period, but only if it’s the
right property and location
■ Look for future value
■ Be strategic and buy in areas of rising rents
■ It’s not about timing the market, it’s about time in the market!
○ There are strategies to improve cashflow (more later!) but don’t forget it’s not the be
all / end all.
○ BEWARE
■ Reduced mortgage qualification. Calculate it or ask your broker
■ Know when your pre-approvals run out.

@volitionproperties
○ Context: We’re still at historically low rates with low down payments
When Ming got his first investment property

@volitionproperties
● I’m considering Selling: What should I know?
○ Why are you selling?
■ Lock in gains? Shift of strategies? Move up to a triplex? Should you hold and
refi?
■ Take advantage of Advisory!
○ The market has changed in a short time and has slowed considerably in some areas.
○ Use the right strategy for your property in your market!
■ Not always an offer night like it used to be.
■ Marketing for the right target demographic is key
● Investor? Focus on tenant profiles, major improvements, having a solid
proforma, etc.
● End User? Who is your target demographic? Do you need improvements?
What improvements do you need? Don’t over stage / over renovate!
● Should you use open bidding?

@volitionproperties
● I’m considering Selling: What should I know?
○ Timing
■ Unlike buying, selling is a more a set event. There isn’t as much flexibility once
you’re on the market.
■ If you can time your sale, try to time it around market influencers to maximize
returns
○ You have one chance to make a first impression
■ Photography
■ Staging
■ Something for them to take away - appropriate for the home
○ Creative Deal Making
■ VTBs? Agreement for Sale? JVs?
■ Phased Payments?
○ Talk to us and take advantage of your Free Advisory Session!

@volitionproperties
Boosting Cashflow:
Actionable Volition Strategies &
Tactics

@volitionproperties
Advanced Volition Tactics & Strategies
Drop your expert
tips/tricks into the
chatbox!
● Without trying to be Captain Obvious, 4 ways to approach this:
○ Increase Traffic
○ Increase Income
○ Decrease Expenses
○ Rethink Financing
● Extra 10% efforts yield outsized results!
○ Now, if you want to make your Toronto acquisitions work (and yes, they can still work)
you have to put in the extra 10%.
○ Don't settle for "average", aim for above-average rents. Go the extra mile, go the extra
10%.
○ Do it better than everyone else!
○ Sweat Equity. Be more active now. You've had the LUXURY of being a landlord in
Toronto. Tenants begging to rent your property. You could be super passive and still be
ok. Now is the time to roll up our sleeves.
● Bear with us if some of these are super obvious… (the good stuff is at
the end! :))

@volitionproperties
Increase Traffic (1/5)
● Change your mindset
○ Use all the same tactics as Realtors when selling a house
○ Also, we’ve been spoiled as landlords in Toronto…
○ Think: Marketing & Advertising… not just throwing up an ad.
○ Leasing is NOT just an afterthought, leasing is a core element of the success of your business.
● More traffic, more interest, more rent
○ Can you get $500 more than market? Prob not.
○ Can you get $100 more than market? Yes. I've consistently gotten more than market. I just got
$3200 for a 2bdrm when market was $3000.
● Better Photos (Photos are INCREDIBLY important):
○ When listing, take better photos (or hire professional photography). Not just your iPhone!
○ Spending $200 at Toronto rents can be worth it... And use it ongoing.
○ Wide angle is key (with angle distortion correction)
○ Filters to make it pop. Don’t overdo though.
○ The photographer we use makes places look better in photos then in real life!
(http://www.studiogtavirtualtour.ca/135-macdonell-avenue-toronto)
○ Videography? Video walkthrough tours linked in your listing to Youtube?
(https://www.youtube.com/watch?v=6-gQvg2hup0)
○ Floorplan layouts for furniture layout
○ 3D Dollhouse views (https://youriguide.com/135_macdonell_ave_toronto_on/)

@volitionproperties
● Staging
○ Seller staging might be overkill.
○ Consider the use of "rental" staging, much cheaper than seller staging. Boxes and slip covers
instead of actual. Just don't sit on it.
○ Virtual staging
● Where to list/advertise?
○ Get out on ALL channels. You might be used to JUST using Kijiji or FB Marketplace… find ALL
possible sources.
○ UofT Medical School FB group. Hospitallisting services. Nurses. Executive Placement Agencies.
IG groups. Get creative.
○ Sign on lawn. Use tech... QR codes, website, photos, virtual tour. Know your tenant profile... Ours
is Professional Millennials.
○ Airbnb, HomeAway, etc if you are willing to take on shorter term.
○ REPOST/RENEWon Kijiji/Craigslist. Don't just let it go stale.
○ MLS is an important source over $2400.

@volitionproperties
Write better ad descriptions/copy. Think Features vs. Benefits.
● Know your target tenant profile demographic. And then cater to their wants/needs.
● BENEFITS-centric copy 👍
✪✪Welcome To Your Majestic Country Home In The City✪✪ Prestigious Trailwood Estates, The Most Coveted Neighbourhood In Richmond Hill.
Newly Renovated, Open-Concept Chef's Kitchen, Entertainer's Paradise, Contemporary 3-Way Luxury Fireplace. Dramatic Exterior With
Architectural Pillars, Circular Driveway, And Sensational Exterior Lighting. Sip A Glass Of Wine On Your Deck While Overlooking The Lush Scenic
Forest Providing Exceptional Privacy And Sanctuary. The Entire 2 Acre Flat Tableland Lot Is Usable, Covered By Mature Trees And Forest. The
Many Walking Trails Will Fill Your Soul With Tranquility And Serenity. The Perfect Place To Rejuvenate & Re-Energize Away From The Hustle &
Bustle.
3700sqft home, renovated kitchen, 3 full baths, luxury ensuite, 2 parking, 10 min drive to big box stores, great neighbourhood. SS appliances. ELF
included.
● Connect the dots FOR THE TENANT. Paint a picture for them. Make it stupidly easy for a tenant to decide to come
see the unit.
● Use Walkscore/Transit Score/Bike Score.
● Use Google Maps
○ Create personalized google maps to demonstrate all the fantastic amenities nearby,
○ Map to nearest transit station/stop
○ Map to the hospitals (if you're trying to attract a nurse or doctor, etc.)
○ Etc.
● FEATURES-centric copy 👎

@volitionproperties
● Showing/Application process
○ Make it easier for tenants to book now.
○ Don’t require potential tenants to fill out a screening form anymore.
○ Be RESPONSIVE. They are FB applying for 30 units – later, they won't even remember which unit is yours.
● During Showings: You're a salesperson now!
○ Be more ACTIVE and ENGAGED. Passive is... Just open the door.
○ Highlight the features. Nest thermostat – control it when you're out, auto changes when you arrive home. No-touch
smart locks entry, etc.
○ Print Feature Sheets. The prospect is looking at your place and a dozen others.
○ Appeal to all senses.
■ See: Lights on. Make the unit sparkle to entice.
■ Smell: Nice smelling. Scents. Candles. Diffusers.
■ Hear: If on a loud busy street, play gentle music during showing.
■ Touch: Don't touch the tenant! But smart locks or smart thermostat or anything they interact with.
■ Taste: Freshly baked cookies. Not going that far!
○ Live virtual tour walk thru / open house on zoom?
○ Negotiate with current tenants if they’re no cooperative. Give them a Tim Horton gift card... But dangle the carrot
for the behaviour you want.
○ Create the illusion of demand, "open house" showings, or slightly overlapping showing times.

@volitionproperties
● Application Process
○ Play one applicant off the other. See if one tenant will consider offering a bit more. Bidding war. Come up with a story. The other tenant is willing to
offer $2100, but I actually like you better. Can you match?
○ Get back to tenants quicker. They might take another unit.
○ Don’t get desperate and let your guards down! Don’t compromise on your screening process!
● Signing process
○ DocuSign your lease to make it easier.

@volitionproperties
Increase Income (1/3)
Capex Investments that provide ongoing operational revenue benefit
● Renos (obviously):
○ There are certain things that make tenants go gaga. Figure those things out and give it to them.
○ If you can get $500 more in rent, it's worth spending $100k
● Furnishings
○ Big flat screen TV. $400 for 55" TV with Google/Android TV built in. $50 for TV Mount.
○ Sound bar, sub, and rear speakers $200
○ Google Chromecast or Fire TV sticks for $50.
○ Deck furniture/umbrella
○ $200 Weber BBQ
● Functional benefits to the tenants. Not just nice tiles and countertops:
○ Electronic/smart locks $150
○ Smart Thermostats $150
○ Ring alarm system? That's not something everyone has! $150-200.
○ Bike lock stands
● Build/Densify:
○ Laneway Suites – big cashflow boosters. $500-600k build yields $3500-4000 in rent (under the right circumstances), and boosts
your property value (should be beyond build cost).
○ Separate out basement unit from main floor
○ 4plexes! More density
○ Etc.

@volitionproperties
● Opex Investments: Add additional services that are of value.
○ Buy internet once, collect 3-4 times. (Fibe 1gb $61/mo which normally costs $125/mo, mesh routers $300, charge extra $75 per unit, net extra $150-
200+ income). Create separate wifi networks for each unit.
○ Share subscriptions. Not necessarily saying do this... but:
■ IPTV subscription with 3000+ channels is $8/month if you are tech savvy and know how to set it up.
■ Netflix deals. Not going to promote this, but there are cheaper ways to get Netflix (google Turkey Netflix deals).
■ Disney+
■ Amazon Prime Video.
■ Music services
■ Experiment a bit. Put it directly on the box/TV, so tenants can’t share it on other devices.
○ Other incentives. Use your imagination.
● Separate it out and rent it separately
○ Rent out parking to someone NOT in the house (instead of $75 to tenant in the house, $125 to someone else)
○ Rent out garage as a workspace if it's insulated and has electrical ($400-450vs. $150)
○ Rent storage spaces or lockers separately
● Additional Revenue Sources:
○ DO YOUR RENT INCREASES…esp if you haven’t done it in the past 12 months.
○ Coin-op laundry
○ Apartment building? Mixed use res/com? Put commercial sign on roof (or cell phone tower rental).
○ Is there a Bell telephone pole in your backyard? Do they have an easement on title? If not, you can score a windfall! (I’ve heard of $20-25k)
○ For furnished... Chattels deposit. Not actual more rent, but it's kind a security deposit. And ensures your place stays nice (could go under expense
section as well)
○ Get creative.

@volitionproperties
● Run it differently:
○ Think of it this way:
■ Real Estate = Computer
■ Actual Property = Hardware
■ The Way You Operate It = Software
■ You can achieve a different result than "everyone else" and “the market”
○ House Hack: bring together separate people into a unit, but do NOT make it a rooming house (one large house with locks
on doors, no separate units, etc.)
○ Fully Furnished Rental
○ Allowing for ShortER Term Rental (not necessarily STR). 6 months? Executive Rentals? Vacation Rentals? HomeAway?
AirBnb if that's your thing.
○ Cater to a particular audience and GIVE THEM WHAT THEY WANT.
○ Move in ready? Fully furnished? Partially furnished? Internet? Netflix? Disney Plus? IPTV with 3000+ channels?
Android TV box / Fire TV stick? Speakers/home theatre?

@volitionproperties
Cashflow Booster – Bell Fiber Internet!
● Matt found a Bell Small Biz Sales Rep
● $60.95/mo!!
● 3yr contract
● Email info@volitionprop.com if you
want the details.

@volitionproperties
General Stuff
● Manage more tightly. Go over your bills and see if there are any spikes/anomalies.
● Property tax reassessments (esp upon renos)
● A lot of regular home maintenance stuff / regular PM stuff. How you operate it makes a difference.
● Govt rebates for upgrading... Insulation, furnace, weather stripping, window, smart thermostats, etc.
● Don't pay taxes!
Reduce costs
● Shift from more expensive insurance to a simpler insurance policy.
● Put sign on washer/dryer to remind tenants to do laundry at off peak hours.
● +hydro +gas +water (less rent, more work, you shift risk to tenant)
● Reduce util bills – weatherstripping, leaky toilets, switch to LED bulbs, etc. All regular energy saving tips.
● Capex investments to reduce opex. Invest in better windows, higher efficiency furnace, smart thermostat, etc.
● Make tenants responsible for snow removal / garbage removal
● Install your own blind or curtain (or at least curtain rod)... fewer holes in the wall.
● Encourage use of 3m command strips. Less holes in walls. Hell, even provide them! On sale in Amazon, it's like 2 for $2.
● Keep extra paint for future touch ups
● Save on leasing fees. Previous tenants recommendation for new tenants (good tenants usually beget good tenants).
● 0% vacancy should be the goal.
Forgo some expenses if you can (until cashflow is better)
● Defer maintenance if possible (but not being irresponsible about it)
● For those who pay for Property Management, move to self management for a while
● Do leasing yourself
Decrease Expenses (booooring)

@volitionproperties
● Larger downpayment (25% instead of 20%). Rents rise again, take it out again (full 80% LTV financing split into 75%
LTV mortgage & 5% undrawn HELOC).
● Simply just find a property with higher rents. Not all properties are created equal, and sometimes some are able to
achieve slightly higher tents :) (Easier said than done!)
● Consider areas with lower pricing, but relatively still good rents. This might mean going slightly outside our "core"
A+ areas into A- or B+ areas. This could mean closer to St. Clair, Eglinton, Main, etc. Be ready for lower tenant
profiles!
● Buy with Laneway Suites potential, even if you don’t build right away. $500-600k build yields $3500-4000 in rent
(under the right circumstances), and boosts your property value (should be beyond build cost). NOTE: you pay a premium
for laneway suite potential, so will be even more cashflow negative until you build it.
● Do renovations upon acquisition without a refinance
For New Acquisitions

@volitionproperties
Creative Financing Solutions
● Boost your cashflow by $1000 by using HELOCs
○ Entry-level Triplex. $1.5M, Rent $5750, Expenses $1100.
Scenario A:
Mortgage $4900 (80% LTV, 2.75%)
Cashflow -$250.
Scenario B:
HELOC $3000 (65% LTV, 3.7%)
Mortgage $900 (15% LTV, 2.75%)
Cashflow $750.
+ $1000
Cashflow

@volitionproperties
● Pros:
○ MASSIVE CASHFLOW BOOSTER (solves the problem of “being able to hold the
property for the long term”, which is the biggest predictor of success)
○ Extreme Flexibility
○ Pay HELOC down using additional cashflow, redraw it when required (rainy day
fund).
● Cons:
○ No principal paydown, so you don’t own more of the property over time.
○ Ever-so-slight lower overall ROI due to higher interest rate (but doesn’t make a huge
difference in the overall picture)
○ Doesn’t work for B-lenders (HELOC rates are too high)
Scenario A:
Mortgage $4900 (80% LTV, 2.75%)
Cashflow -$250.
Scenario B:
HELOC $3000 (65% LTV, 3.7%)
Mortgage $900 (15% LTV, 2.75%)
Cashflow $750.

@volitionproperties
● Notes:
○ Do NOT pay down the mortgage principal, since it will not free up on the HELOC due
to 65% LTV limit.
○ Good for temp renos when trying to minimize outflow when no rental income, etc.
○ (Hugo says: one lender will go up to 80% LTV HELOC). Don’t quote me on that.
Scenario A:
Mortgage $4900 (80% LTV, 2.75%)
Cashflow -$250.
Scenario B:
HELOC $3000 (65% LTV, 3.7%)
Mortgage $900 (15% LTV, 2.75%)
Cashflow $750.

@volitionproperties
● Reamortize mortgages to 30yr
○ Pretend you’ve owned Triplex for 5yrs (bought in 2017).
○ Bought at $1.2M, Value today $1.5M, Rent today $5750, Expenses $1100.
○ Initial Mortgage Balance (80% LTV): $960k
○ Current Mortgage Balance (paid down 13%): $835k
Scenario A:
Current Mortgage Monthly (3%, 25yr): $3853
Cashflow: $797
Scenario B:
30yr Mortgage Monthly (3%, 25yr): $3410
Cashflow: $1240
+ $450
Cashflow

@volitionproperties
● Fixed payment for variable interest rate mortgages.
○ NOTE: TD is one lender (there might be others) that allow. Check to see if yours is. It means that the
payment is fixed, but the ratio of interest to principal changes.
○ This continues until you hit the “trigger” rate (payment isn’t enough to cover the interest)
● General rate stuff:
○ Variable is still generally the better choice for most people, unless you have a VERY specific reason.
○ Some clients are opting for fixed, because they managed to get good deals on them
■ Fixed: 3.2% and 3.37%
○ Rate holds:
○ Client is getting 1.79% CIBC (from an application started 2 months ago) for primary res
○ Current rates:
■ Scota is low 4% 5yr fixed
○ P-.52% on variable (Prime=3.2% so rate is 2.68%)
■ B lender rates 4.25-5% 1yr
○ Keep in mind: possibly BoC rate hike of up to 1% next June.

@volitionproperties
Summary
● Obviously this not an exhaustive list.
● Intention:
○ Expand your mind and change your mindset. Instead of being a victim (Victim Saboteur from Dec!).
○ Realize that there are things within your control, and there are ways to improve and do things better.
● Yes, more effort than before... But real estate was never a passive thing.
● BTW this is the kind of stuff we share all day long with each other in our Volition Inner Circle!
● So... How do YOU get higher than average rent??
Drop your expert
tips/tricks into the
chatbox!

@volitionproperties
Now what?

@volitionproperties
What is my next step #1?
● Sign up for a complimentary Advisory session
● To make the session productive and effective,
come prepared with:
○ Capital available to invest
○ Mortgage qualification
○ Current real estate portfolio details
○ Your goals
● We will help you determine:
○ Where you are at
○ Where you want to go
○ Help you build a customized plan to get there

@volitionproperties
What is my next step #2?
Attend the next Meetup!
● Topic: Where is Toronto in the Real Estate Cycle?
● Date: April 20, 2022
● Time: 7:00pm (6:30pm Networking)
● RSVP for free: www.meetup.com/volition
What do YOU want to learn about?? (Zoom Poll, Put
into Zoom Chatbox, or info@volitionprop.com)

@volitionproperties

@volitionproperties
THANK YOU!

Does Investing in Toronto Real Estate Still Make Sense Today?

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