From Minnesota Winters to Florida Wealth: Ryan Poole's Real Estate Story

Introduction

Welcome to the Wisdom Lifestyle Money Show. I'm your host, Scott Dillingham. The show is designed to help Canadians invest better in Canada and the United States. We are the North America-based mortgage financing lender and provide education to both countries.

Discover how you can become a better investor and access the financing you need. Welcome to the Wisdom Lifestyle Money Show.

I'm your host, Scott Dillingham. Today, I have a very special guest with us.

His name is Ryan Poole. He's the owner of RealTrade. He's also a realtor and he specializes in working with properties in the South Florida area.

The Core Idea

So welcome, Ryan. Thanks for having me here, Scott. I'm really excited, you know, to be on the show. You know, I'm originally from Minnesota, you know, been down here in South Florida 25 years, so Northern Minnesota.

So I feel like a Canadian. We used to go to Winnipeg when we were young because of the drinking age of 18 up there. We spent a lot of time up there playing hockey as well.

So glad to be on the show, Scott. That's awesome. Were you one of those Americans? Because we have, I live in a border city and they would come over because you can drink younger in Canada.

Is that what you did? Yeah.

Deep Dive

Yeah. Northern Minnesota, there wasn't a whole lot of nightlife, right? I grew up in a small town called Feats River Falls. And yeah, there wasn't much going on.

So Winnipeg was actually our closest, biggest city, if you can imagine that. And we spent a lot of time up there. We also have a two-house fishing cabin on Lake of the Woods on the Ontario side. So we spent a lot of time up there too, which is, you know, grew up catching walleye, loved to fish.

One big reason, obviously I moved to Florida. I love the ocean and the fishing and all that fun stuff too.

Yeah, I know. Me too. I actually, for those that don't know this, but I was actually born in Maine.

Practical Steps

So I grew up on the East Coast as well. And then when I was five, my mom, she remarried. And the guy there, he got a job here in Windsor. So I just kind of grew up and stayed here.

But yeah, for the first five years of growing up on the ocean, I loved it. And it's in me. I want to live on the water now. It's just something I want to do.

So come down here. A lot of water down here in South Florida, as you know.

That's it. That's it.

Key Takeaways

It's warm. Unlike where I'm at.

But no, that's awesome. So I'm very curious, Ryan. So obviously you've done some big things and you're going to get into that and you're going to talk about kind of what you've done and what you've accomplished and who you are. But I'd like to hear sort of the transition journey.

So for anybody listening to this, you know, how can we get into your shoes or how can we grow as a person? So I'd love to hear your story about, you know, what it was like growing up to where you are today. Yeah, you know, I have that kind of entrepreneurial spirit, right, where I always want to challenge myself and try different things. And I think that was one thing that moved to Florida.

Just a little bit about my backstory. You know, as I mentioned, I grew up in northern Minnesota, which, you know, I loved growing up there.

Resources

The people were awesome. So many great things. I love the outdoors, fishing, hunting. I was a hockey player, played hockey, had a great friend network.

But, you know, it got to the point there, you know, as I got into my early 20s, I was like, wow, man, this weather's a tough one. You know, the Minnesota winters were really tough. I think it's even more farther north than you are, right, in Toronto, up in northern Minnesota. And, you know, the weathers were tough.

And, you know, I luckily came down to South Florida my second year in spring break in college and just fell in love with it. And I actually went to the Florida Keys and I was like, wow, what a beautiful place. And I found Jimmy Buffett, listened to all the cool songs that he sings about the Caribbean atmosphere and life. And I really fell in love with it.

And I said, wow, this is someplace I would really like to go. Went back, finished out a year in school and was just going to come down here in South Florida to work for the summer in the Florida Keys. And, you know, after working for that summer, I started creating a really good network. I actually meant a mentor, multimillionaire that worked at a restaurant that I worked for the summer.

Introduction

His name was Mike. And he goes, you know, Ryan, I'm like, you know, I didn't know what I wanted to do in my life.

He goes, listen, Ryan. He goes, you know, my restaurant's very successful. But I've made all my money in real estate. And he goes, Florida's going to blow up here in the next 20 years.

If I can give you any kind of advice, get your real estate license and start learning real estate at a young age like you are right now, because I was in my early 20s. And, you know, I took his advice to Hart Scott and I got my real estate license. And, you know, it's been an incredible journey since. You know, it's been a lot of, just a lot of opportunity.

I had my own investment properties, rights that I've invested in. And that's so many great people in real estate. And the big thing is, you know, I've got to impact a lot of people's lives. As I've been doing this now for over 20 years, I really get to see the impact that I've had on, you know, my clients, right?

The Core Idea

Especially a lot of friends that I've sold real estate to of how much wealth they've built and how successful they've become just from owning, you know, South Florida real estate. And it's been a very rewarding experience. And, you know, it was an impact on my life. I actually had some things go through Minnesota too.

I had, you know, just a little bit of personal level. You know, I had a tragedy happen in our family.

I had a twin brother. If you could imagine that. And he passed away when I was 17. So that was part of the reason too, I think Minnesota, as you know, it can get very gray during the winter.

And that was a big reason too. I wanted to explore and just be somewhere very bright and green and, you know, like summer all the time. So that was another big reason, you know, to moving down here. But yeah, so I got my real estate license, you know, at 20 years old and started cutting my teeth on real estate.

Deep Dive

Started actually working for developers, selling new construction. It was very successful in that and the Florida Keys. One thing about the Florida Keys, there is a lot of inventory and selling new construction. We used to joke, you'd sell yourself out of a job, right?

You know, we'd have, I sold myself out of a job. So you'd go to new projects and invest. I'm like, wow, there's more opportunity up on the mainland. So that's when I moved to, which I am now at, which is beautiful West Palm Beach.

And let me tell you something, so much incredible, you know, things are going on here in West Palm, so many opportunities. And it's been just something else to watch West Palm grow now here for the last 20 years and see the trajectory of where it's going in the future, especially when it goes to real estate.

That's awesome. Yeah.

Practical Steps

And I'm super excited. And I know you have some examples to show us.

Really excited to see that. Now, just to, the only negative thing that I hear about Florida, and I know it's not really a huge thing in your area, but I'd like you to touch on it because, you know, some people, it comes up, right, is the flooding. So can you talk about, you know, how West Palm Beach, you know, it's not so affected compared to other places?

Yeah. You know, obviously South Florida, we have storms here.

We call them hurricanes, right? And with those hurricanes can bring flooding, you know, which can bring flooding. And there's a different area of a way the state is kind of set up, right? There's a, you know, there's a geography and a way the state's set up.

Key Takeaways

And usually on the West Coast, it's a little bit lower. So you're going to have lower, in more flood, in lower areas with more flood zone. Here in West Palm, it's, you kind of look at the topography and geography. We're like on a ridge here in West Palm Beach area.

So we have areas here that are 20, 30, 40 feet above sea level, right? That are right here in the immediate area. So we have, number one, a good drainage area. We have coral bedrock here that's on a kind of a slope.

So it's a good drainage area here for West Palm Beach. And yeah, our areas are tend to be a lot higher than on the West Coast of Florida where you experience a lot of flooding. You know, last year, the year before, they had that big hurricane there in Fort Myers and had a lot of flooding and stuff like that. But now what you do have, as you know, insurance for that.

So you have flood insurance that you can purchase. You have wind insurance that you can purchase for all that kind of stuff. But yeah, that's one thing I tell people in the West Coast of the United States and, you know, in Fort Canada, right, you have earthquakes.

Resources

Here we have hurricanes. Knock on wood, we've been really lucky here in West Palm. We haven't had a major hurricane hit here since the 1920s. And we've had some like category like twos, you know, and low threes that hit, but we haven't experienced, luckily any major flooding here in the West Palm Beach area because it is a little bit higher, even more so than Miami or Fort Lauderdale.

Yep, exactly. And I think that's why your area is awesome for people that want to invest in Florida because there are areas and, you know, not everybody on this call knows this, but there's areas that you cannot get wood insurance because it just keeps happening over and over again. I think over time, you know, insurance companies will step up to the plate, but I know a lot of places are still dealing and trying to rebuild, right? So the fact that you can easily get insurance in West Palm Beach and surrounding area, it goes to show you that the insurance companies are not really concerned with the area.

So for an investor, I think that's super important. Yeah, I'll say this in my 20 years experience of selling real estate here in this area, I've never once not had a client not be able to get, you know, insurance for their home, flood and wind insurance for their home.

Yeah, it's pretty. And I got some great insurance agents too, by the way, that are in my network. Some are on Real Trade, right, that are on there that can give you some great quotes. I tell everybody to get a couple, at least two or three different quotes when quoting your, you know, your insurance.

Introduction

No, that's awesome. That's cool. So yeah, I would love and thank you for that. I would love for you to start so you can show everybody here your presentation.

Now, obviously, a lot of people are going to be hearing this on Spotify and Apple. So if you could try to be detailed and explain things for somebody who's just listening that they could still pick up the details. But yeah, let's hear more about you and then look at some of these property examples.

Yeah. All right, here, let me share my story. And obviously, talk about Real Trade, which I think is the best tool to get properties in South Florida.

Yeah, no, for sure. That's one of the more exciting ones that I want to share with Scott is about Real Trade. You know, we have thousands of users, lots of people looking for properties on there and all that kind of good stuff. I literally build Real Trade to help clients, right?

The Core Idea

Like this. So this is pretty cool. All right, so let me share my screen. All right, can you see it there, Scott?

Yes. All right, so this is something that, you know, I love this, sun, sand, and ROI, investing in South Florida real estate. So I want to say this, and this is something that's really important. Having grown up in Northern Minnesota is, you know, and being in real estate, all my investors that I talk to, a lot of them have been here in Florida, but one thing, and you get a great old ROI investing in Florida and some, like I said, have had some great returns and impacted life positively, but I also want to do the ROL, which I call it, which is the return on life.

And that's something that I'm really passionate about selling real estate in Florida is the lifestyle that you get to have here of owning real estate in, you know, in Florida, right? So many wonderful things to do.

I'm a big outdoorsman. I love to, I love to dive. I'm a big tree diver, spear fisherman. So if you can imagine it's like hunting underwater, you know, where you actually dive down and hunt the fish.

Deep Dive

I do a lot of hunting here, believe it or not, in South Florida. We've got deer hunting, hog hunting. We have wild turkey, which we have a famous subspecies here. Wild turkey people come from all over the world to hunt, and it's just a lot of outdoor activities.

I'm a big bike rider, Scott, as you know. I just finished a 160-mile bike ride from the University of Miami to Key West. Actually, not this weekend, but the weekend before. You can do all this stuff year-round.

You know, I got my son out of his, I have a seven-year-old son, he plays baseball, and he can play baseball year-round Scott outside. So I can't express that ROL, return on life. Now, I spoke a little bit about myself, about my, you know, real estate experience, but I've been active in real estate as an investor, a full-time agent, partners in a brokerage, for over 25 years. So I have tons of experience, you know, and I could, you know, I'm not a big one to kind of toot my own horn, but I was an asset manager at one time, helping large hedge funds acquire investment properties.

At one time, I had 250 million under management, just myself, Scott. Wow, that's impressive.

Practical Steps

That I was managing. Yeah, that was, and they were mostly buying distressed assets, fixing up, selling them, some they would hold. So I had a lot of experience, have a great contractor network. Like I said, have a lot of great lenders like you, Scott, my network, and then also have a lot of insurance agents and property managers and all that where I can put pieces together.

But the one thing that I'm most proud of, founder of RealTrade. com, I really saw where the industry was going. I'm like, wow, the consumer's becoming smarter. They're going to want all the information.

They're going to want the best information, most up-to-date information on the market. And I wanted to provide that.

So that's why I built RealTrade. So RealTrade, what it is, it's a marketplace where buyers and sellers can search for properties for sale or do research on properties like they can on other platforms. But the biggest thing is we have an integrated social media platform where not only they connect with agents that have property but connect with awesome service providers that they're going to need. Like you, Scott, you're on RealTrade.

Key Takeaways

Like some awesome title companies, attorneys, inspectors, appraisers, you know, everything that you need to have successful real estate transaction, you can get connected with on RealTrade. So, yeah, very excited about that. So that's a little bit about myself, guys.

Loved helping. I have a huge passion for helping people not only to get great returns but something that really, like, motivates me, Scott, is having that great return, ROL, that return on life. Like I said, is I want you to come down here. I want you to enjoy South Florida.

I want to show you the great restaurants to eat at, some awesome fishing. I have a boat. I've taken my clients out, which I think you know the was, Scott, taken them out plenty times. Charles Irvshot, had him out of my boat many times.

Loved to take my clients out and really show them what Florida's all about. I mean, the best way to see Florida's from the water. You know, we're surrounded by it. Loved giving them tips and taking trips to the Keys.

Resources

If I have the time, I'll go with you. You know, I used to live down there and it's just such, such a beautiful drive to go to the Florida Keys and see Key West.

Awesome. A lot of great things there.

Yep. You know, the big things, I work with a lot of Canadian investors, as you know, Scott, even before we met, and there's a big, some big reasons of why Canadians are investing in South Florida real estate. And, you know, the big thing is, we talked about it here, but as we started, is our climate. You know, right now, it's such a magical time in South Florida because it's almost like someone's getting, just turns a light on and our humidity breaks.

And now here, from the end of November all the way through May, we don't have any humidity here in South Florida. And our average daytime temperature is going to range anywhere from about 65 up to about maybe 80 degrees. So you're talking just that perfect temperature, no humidity. It's just a beautiful time to be here.

Introduction

You know, and of course, we have all these awesome tourist activities. Of course, everybody knows the beaches in South Florida, but here's a big thing too. We have Orlando here in Florida, which is in the center of the state, which something exciting just happened here is we now have in here in the West Palm Beach, the Brightline Train Service, which is a high-speed train, European-style train, that can bring you up to Orlando in less than two hours and go up there and visit Disney World. So now we have a lot of my clients on Hayline, we're taking the train up to Disney World for the weekend and they take it up there.

We have a great, you know, we have so many other tourism activities. Obviously, we touch on those, the hunting, the fishing, the diving, a lot of great restaurants, a lot of culture. You know, we have a lot of New Yorkers, as you know, has moved down here to South Florida, Scott, so they're bringing their diversity and their culture with them. We have a lot of great things in West Palm Beach like that.

It's a true metropolitan area. We have a great diverse market, you know, operating everything from luxury condos to single-family homes, suburban areas, so we can find you something that aligns with your investment goals.

Now, here's a big thing. This is why we've had a lot of Americans and why we're getting a lot of big influx to South Florida. Close to 1,000 people a day are moving to Florida, Scott, and a big reason that we have, and this is something, say what you want about DeSantis, our governor, you know, but he called it right. You know, he did some really great things for businesses.

The Core Idea

One thing we have, we don't have any floors, state income tax, so that's a huge advantage for a lot of investors here, so they don't have to pay state income tax for the gains, and we also have some great laws as far as, as that they've passed for renters, right? So I know in Canada, right, they have a, basically a structure where you can only go up 3% a year on your, on your rents. We don't have that here in South Florida, so as the market changes, you can change quickly too with the market.

Of course, our currency exchange is why a lot of, you know, Canadians are buyers. It's almost like you put your money into an American bank because the reason you sell they're in American dollars, and historically, you know, South Florida has experienced relatively stable real estate appreciation. Much now, so obviously since COVID, and we've come more discovered, you know, there were people down here, we weren't on this crazy lockdown through COVID, we had a lot of people coming here which put more, you know, buying pressure in South Florida, but even last year, we've looked at the numbers, Scott, we've still seen 8% to 9% in appreciation from this time last year within the last year.

That's good. Yeah, very good. You know, and I, you know, model things out at a 5%, which I can show you as we get in this presentation with that too. So definitely good solid long-term investment.

All my clients that have held five or more years, you know, Scott, have been very excited with their investment. So a couple part two, you know, obviously a big destination of South Florida versus the West Coast of Florida and some other areas is, you know, we're an international appeal. You know, Miami is only about an hour's car drive. You can take the high-speed train there and be a little less than an hour, but that's an international market.

Deep Dive

You know, we have people from all over the world, you know, from South America, Europe, Asia, that are now coming to South Florida to vacation and spend time and buy real estate. And let me tell you something, a lot of those people go to Miami, right? They see the craziness and this is why we're getting a big influx here and some great capital, you know, some appreciation here at West Palm is, wow, we love South Florida, we love the weather, but it's not quite as crazy as it is in Miami as far as activity, right?

So we're a little bit more laid back here in West Palm. Diversification, there's a lot of diversity here, as you know, in South Florida that you can help with investing here versus, you know, other places in Canada. Now, this is a big thing and I touched on this as a strong rental market. Not only do we have, you know, the long-term tenants, right?

Which a lot of my clients have long-term tenants, meaning yearly tenants, right? But we also have, which is a great option, which I'll go over a couple of those, is the short-term rental, you know, market, which is very strong as well. We see some of the highest vacancy rates, you know, the highest vacancy rates of anywhere else in the country as far as if you look at AirDNA and some of the other platforms that track that. So there's close to a thousand people a day moving to Florida and they all need housing, even if it's just temporary housing.

So it's a strong market. Of course, our infrastructure, which I talked about, the new Brightline station in amenities, we have great highways, airports. I mean, right here at West Palm Beach, we have the Palm Beach International Airport. I know starting this winter, they have direct flights, I believe, from Toronto right here.

Practical Steps

So that's a huge attraction to a lot of places. Great shopping.

We have outlet malls. Of course, South Florida, we're all really well-known for our dining options.

I love eating out. Seafood's one of my favorite things to experience, not only among fishermen, so I love fresh seafood. And there's so many great amenities here that we have in South Florida. Stable legal environment, we touched on that.

You know, it's very well established, our real estate transactions here in South Florida. We have great security for foreign buyers as well. And then, of course, you touched on the potential for capital appreciation and then the networking opportunities. South Florida, let me tell you, has a very vibrant real estate community.

Key Takeaways

There's even people's building, you know, online social, you know, social media platforms just for real estate, right? So it's very vibrant. There's a lot of people that want to help you here in South Florida real estate and help you reach your goals and I'm one of them. So it's a great networking opportunities here in South Florida for real estate.

Awesome. Awesome. So people have any questions, feel free to ask as we go, right? They can raise their hand, Scott.

So let's go over a couple examples here. So this is a real world example of a property that I just sold, right? That I just closed with a client. This is one of my favorite types of investment properties.

This is a four unit. Love to sell these multifamilies, you know, anywhere from four to 20 units. And this is a great one. This is in Lake Worth Beach.

Resources

So this is just south of West Palm where you're talking 10 minute, 15 minute drive to downtown West Palm Beach. Lake Worth Beach is a very up and coming area. There's a lot of opportunity for growth on the equity side here.

The rental rates are great. It's almost like a little, I call it kind of like a quintessential South Florida beach town, right? So it has a lot of history, a lot of artists in the area. So the purchase price on this was $830,000.

It was four units. They range from one, one to three studios and the gross annual rent on this is $105,000. Here's kind of the financial breakdown that we had for this client. So the rental rates, actually I'm getting these, actually a little above these on the leases that I, that we signed, but anywhere from $1,850 a month for the studios to $2,600 then for that one ones.

And then the cool thing is here in South Florida that they do a lot is they'll keep all the utilities under the owner's name. And then you charge a utility fee of $150 a month, you know, to the tenant. So it ends up, he actually is getting $8,750 a month, you know, as far as revenue on that. I mean, here's your taxes, your insurance, you know, your utilities, which he's paying, your pest control, lawn maintenance, and then a 5% property management or real estate fee.

Introduction

And of course, here's his mortgage, but he took out, he did only a 20 year mortgage. I know you have a lot of other options that you can go with with People's Cots. And this is ends up being his cash on cash return ends up being 11%. So this is a great option to a lot of investors that I work with is selling these types of multifamily properties.

And they got great returns and get great rents. For sure. And I'll just touch on this too, guys. So you see the monthly payment on the mortgage at 20 years, right, is $5,048.

So you're making awesome money, but you can go with a 30 year or even a 40 year interest only option in the States. So this person obviously wants to pay off this home, right? But as an investor growing your portfolio, I believe it's best in the beginning not to focus on paying it off, right? Get that interest only, build up your portfolio.

And then when you transition in life where you're like, okay, now I want to pay these off and live off the income, then you can increase your payments, but you can make some killer money. And they say too, I don't know if you know this, Ryan, if it's a Canadian thing or whatnot, but the 1% rule, it's called 1% rule because if you can rent a property for 1% of the purchase price and you have an amazing investment on your hands and you've just literally showed us the 1% rule still works.

The Core Idea

Yep. There it is right there.

Yeah, no, it works. I mean, it works and it's a, yeah, it's a beautiful thing. He's very happy with this asset. I actually sold this particular buyer another asset, you know, not too far from here.

You know, the multifamily option is awesome, which I'm excited about your opportunity too, Scott, that we can maybe touch on in the presentation too after we're done here. All right.

All right. So let's go to the next one here. Now, this is a cool one. Now, this is one, this is one that I've actually sold a number of clients in this actual complex called the Courtyards.

Deep Dive

And this is in downtown West Palm Beach. So this is right in the heart of the metropolitan area in West Palm. But of course, you're still only like over the bridge, the beach, we're talking five minutes. And this is one particular condo now that you can do short-term rentals.

Most condos, I just want the, you know, the viewers to know that you can sell for most condos, you can't do short-term rentals, right? They're going to have to probably do a year, a year lease, or maybe like a six month lease minimum. But this particular one allows with the HOA rules 30 days. So you can do 30-day rentals in the actual four-year unit.

Great, get some great returns. Yeah, and they're averaging 5,700 a month or 199. The purchase price on this one is like $430,000. And now here's the financial breakdown.

Oh, excuse me, it was $450,000. This is a financial breakdown that we did with an investor. They put down, had your closing costs.

Practical Steps

They put in furnishings, right? Because the only thing is, obviously, if you do a short-term rental, you have to furnish the unit, right? Because people are going to come in for a month and furnish it themselves.

5%, 30 years. I think you probably have a similar product to this, you know, Scott, that we have. And this should be their home insurance, the taxes, right?

So $2730 a month. And then, of course, if you're averaging 190 a night, which would be the average at 85% occupancy, you can see what your net profit is. Now, I did factor in here a management fee of 10%. It wouldn't be quite as high as like an Airbnb because remember, you're only doing monthly rentals, so it's going to be around 10%.

As you get higher towards the Airbnb models, that'll scale up to 15. Two could be as high as 18%, okay? But here, as you can see, the net monthly revenue ends up being a cash-on-cash return right at about 8%. And then your IRR, if you appreciate, I projected a 5% equity growth per year.

Key Takeaways

Like I said, we did 9% this last year, but it ends up being IRR levered at 13% or your cap rate at 8%, 13%. So that would be another pretty good one right there. But the nice thing on this one that I want to say, Scott, is like that occupancy rate that, you know, 85%. Remember, you could come in and use that for two months.

You know what I mean? You could have two months that you could come and have, which I like to say, the ROL, right? The return on life where you could actually use your unit, come down and enjoy it, which is pretty awesome.

Yeah. I think it's awesome too. I mean, you know, I have clients right now that are doing this. I had one client that bought here.

They're what's, you know, they're millennials, right? They're in their 30s and they're nomads, right?

Resources

So they travel all over the world. They're called the digital nomad. They all work from their computer. And, you know, they rented out short term and they'll come back for a month to West Palm.

Then they'll leave for two or three months and travel and come back. And they've been very happy with that investment. I have some other investors too that are just renting it, you know, you know, for the year. And I have some that are doing like this hybrid, like they were talking as well.

So a lot of possibilities with that type of property. Nice thing about a condo, you do have your HOACs, which you can see, right? Your maintenance and your structural insurance. That's your HOACs right here at 7,900 a year.

But the nice thing about your HOACs is that does include your structural insurance and upkeep on the property so you don't have to do anything with that. So that's one nice thing. Now, the next one that we want to look at, this is one actually that's on the market right now. This is a very good area.

Introduction

It's just north of West Palm in an area called Northwood. Okay. And it's just, a lot of these homes were built back in basically from the 1920s up to about the 1950s or so, right? But it's very close to downtown.

We're talking a five minute drive. A lot of people biked downtown. You're right across your bridge from Palm Beach Island.

Okay. So people that don't know, now downtown West Palm is on the mainland. Then you cross the bridge and now you're on what's called Palm Beach Island. Now Palm Beach Island, this is a whole different world on there.

That's where the super mega wealthy own real estate. So that's where Donald Trump, right, owns Mar-a-Lago is on Palm Beach Island. You also have a lot of hedge fund managers. The Kennedy, the older Kennedy state is there.

The Core Idea

The average home, which is literally right across the bridge from this home is $7 million. So you're pretty much surrounding yourself by some of those valuable real estates, you know, in the United States right across the bridge.

But here's a perfect one. The purchase price is $395,000. We've been factored about an 85% occupancy rate on this one at average about the same.

It's a three bedroom. So average about $190 a night, right? It's a little bit further from downtown, but you have an extra bedroom. Here's how that financial breakdown works.

Now I modeled this out with this client at 20% down. Obviously you could do 30% down, but the returns would be about the same. You don't have obviously your maintenance fees, but you do have to buy structural insurance, right? Because you still have to have that flood and wind insurance that you have to purchase that.

Deep Dive

16 a month. And then you, I put in here a 15% management fee, Scott, on this one. Because you could do, you know, the weekly rentals or even nightly rentals.

67%. And then you look at over here, your equity growth per year that you're seeing at just a 5% of how that comp can compound over the next 10 years.

So pretty exciting stuff. No, that's awesome.

Yep. Yep. People always want to ask, like, how do we, how do you get ahold of me? This is one of the best ways that I have.

Practical Steps

And I have a lot of Canadians that are using Realtrade is you can sign up for Realtrade. Now it's free if you're, you know, just want to browse this. Actually, it's free for any buyers and sellers.

io. Create a profile. I suggest following me on one of the agents on the platform.

You can follow me. You can get all my updates on real estate right down the platform.

You have the social feed. You can then browse for properties for sale and use it and ask questions. You can chat with me right through the app.

Key Takeaways

Literally built that. You can share.

We can share listings. We can discuss them all through Realtrade.

Like I said, it's free. Check it out. You know, definitely check it out for property trails.

You can also email me. Here's my email. If you want to take a screenshot of that and my phone number, you can message me on WhatsApp too as well. That's easier for you right there.

Resources

And then of course, want to have a contact for a great lender that works with Canadian investors that I work with. Here's obviously a picture of Scott in Glen City, which obviously, thank you so much, Scott, for helping my clients that, you know, my Canadian investors and my other foreign investors as well. We've got a great relationship going.

Yeah, no, you're welcome. And I'm excited. I think the time is really good for Canadians. You kind of touched on a couple of our pain points, right?

We don't have the rent control. The rates went up so high. A bulk of Canadian investors' mortgages are coming up for renewal in the next year or two, right? So they're going to be purchasing and entering these renewals that are going to cause negative cash flow and, you know, there's not much they can do about it.

And then if we have a troubled tenant, it can take eight to nine months in the tribunal, where in the States, I know it can be like a couple of weeks to maybe two months maximum and the tenant is going up. Yeah, two months maximum, Scott, that I've seen were to evict tenants. You know, one good thing that we have, you know, for a lot of my clients that have a lot of rental properties, we haven't had too many evictions just because the rental market's so tight, people get into a place they don't want to go through the whole headaches and hassles trying to find another place for rent, right?

Introduction

Because it's, the market's tough. So actually we have a lot of my clients have tenants that are staying, you know, on the annual rentals, obviously two, three years that they have these great tenants. Another thing too is, you know, you can readjust your rent every single year. So after that lease is up after that year, everything's renegotiated at that point, you sign a new lease and whatever the rates are at that time.

Yeah. Yeah.

Which is super cool. And another thing that I think is awesome on our webinar with Jim that he touched on and it opens up the door for us. So a lot of Canadians do buy in the States, but, and specifically Florida, I think Florida is one of the hottest states that Canadians buy in, but it was really hard for them to buy a good property. And the reason is from the foreign buyer standpoint, the number one foreign buyers in Florida was actually China or people from China, right?

Yeah. But DeSantis recently blocked the Chinese from being able to purchase there. so it really opens up the door for Canadians to find that key property that they're looking for.

The Core Idea

So I'm excited for that. Yeah.

Yeah. No, he changed that. I mean, it could be a little, looked at a little bit of a political play that he had, but yeah, no, they make it, you know, very difficult, obviously now for Chinese investors, but it's great for Canadian investors, other European, actually the only countries that are really affected are China, Iran, and I think Cuba or Venezuela, you know, are the ones that are really affected on it.

Nice. But no, it's awesome. And you guys, I would recommend to check out Realtrade. ca here, but it's much more fluid.

It looks so much better. It's faster. ca can be sluggish sometimes, really sluggish.

Deep Dive

So it's really sleek. And then you can chat, you can chat with whoever's listing or what I like too. And I think it's super important for the Canadian buyers is like Ryan saying, you can build your network. It's kind of like a social media thing for real estate.

So say, you know, you do want to buy and you want a property manager or you want an insurance person, right? You can literally find who services those areas and you can touch base with them. So you're not having to build from scratch, right?

And look these people up. It's all there in one resource. I would say, follow you, Scott.

Follow me. We got some great attorneys too that can help through the whole purchase. Great title companies that handle the closings here that you can get connected with. And the best thing is the free service doesn't cost you anything.

Practical Steps

And yeah, as far as our data too, we're talking the most up-to-date data than we have on, there are on other platforms, Scott. So we're not selling leads like these other platforms, you know, back to agents or other service providers. So we're giving literally the buyers that are looking for properties the most up-to-date, most accurate information that they can't get literally anywhere else.

So that's really exciting stuff. No, that's awesome. So I'd like to open it up before we end this to see if anybody has any questions, me for the financing or Ryan, as far as buying, you know, real estate or anything Florida related.

So we'll see. Does anybody have any questions?

So that's funny. A quick question. In terms of property, property managers, what's it like in terms of the environment for the property managers? Are they very sort of hands-on, hands-off, sale, and their rates?

Key Takeaways

What are we sort of dealing with there? Yeah, so the property manager, their rates are going to depend on what kind of services they have. You know, if you're doing an annual lease, you don't have a property. You know, you don't have to have, for instance, a property manager, you know, because obviously they're going to be leased.

You know, someone that can go in and check on the property, which I'm a real estate agent, I'd be happy to do. But if you're doing the shorter term, it's going to range anywhere from like 10% to 18%, you know, as far as the rates for the property managers. Now, if you're paying like the 18%, we're talking full-on property management for your short-term rental property. So they handle the Airbnb, you know, profiles, the bookings, the cleanings, you know, the screenings, all those kind of things.

They're going to handle that for you. You know, so it's basically pretty much hands-off, you know, at that point. Now, if you're doing like the monthly rentals, remember, the rates are going to be lower because they're not going to be renting it, you know, 20 or 30 times a year. They're going to be just renting it maybe 8 to, you know, 12 times a year if you have 100% occupancy, right?

So their rates are a little bit, are lower at like 10%. Awesome.

Resources

Great question, Lee. And the other question is also, do you have, I guess, on their list of, I guess, trades or contractors on the site as well? Yeah, no, we have contractors that are on there. So you can search, you know, attorneys, inspectors, appraisers, you know, all those types of people that you need to use for your real estate journey can be found on there.

Great lenders, great lenders, you can find Scott on there as well. So, yeah, you can find them, obviously agents, I'm on there, I'm all over there, so you're definitely going to see my face as the founder. Hey, I'm on there as an agent, so, yeah, no, it's a great resource, feel free to use it. Yeah, just to further add to that, Wayne, I know, so I'm in Windsor, right, for anybody here that doesn't know that I'm in Windsor, across board, right, Detroit is right, literally a bridge away.

S. side, and they can also set up corporations for you in the States as well. So, if you do want to purchase, it is advisable through a corporation or a limited partnership, you can close in the personal name, but then you will be subject to double taxation between the two countries plus the estate tax. So, in the States, when you pass away, there's an estate tax and everything goes, you know, to the estate.

but if you have it in the corporate or limited partnership, you can kind of defer that and, you know, potentially there might be ways around that. Again, I'm not a tax professional, but I can introduce you to those people to help you guys get set up so then you can move forward and make this happen.

Introduction

Now, that's important, right? No one wants to pay double taxation. No, a lot of the buyers, foreign buyers, I have, they buy in, you know, in vehicles, right, LLCs, different entities, courts, all that kind of good stuff we have to find out which was the best fit for you on that. Yeah, and then you get that liability protection too in the personal, or sorry, corp name.

Yeah, which is nice. But yeah, my corp, we set it up in Wyoming for the business because Wyoming has no estate tax as well, so that's super cool. But now I wish we set it up in Florida because that's where I want to buy. Yeah, no, a lot of them, I mean, it's amazing.

A lot of, you know, one of my buyers was on real trade. She's from Montreal and she had domiciled here in Florida and she goes, Ryan, what's one of the best things that I ever did was domiciled my business here in South Florida about the state income tax.

She's very happy with that. Yeah, that's so awesome. Any other questions from anybody else on the call today?

The Core Idea

So, quick question. I know we're focusing more on Florida properties and stuff. Does real trade also show properties in other areas in the states?

A good question. Right now, we're South Florida focused. Some of our properties are in South Florida, but we do have some properties that are outside of South Florida on the marketplace. So, you can go ahead and check them out.

It just won't be all of them that are in that area. You know, just do some research on some different marketplaces in that particular area that you're researching. But I think, Wayne, just to help you all, like when we started getting into the lending, it was some astounding number like 70% of foreign buyers, like Canadians, buy in Florida.

Right? So, I think, that's why I wanted to have Ryan on because I think he covers the bulk of the purchasers who would buy.

Deep Dive

ca. I don't know.

What do you think, Ryan? Are you allowed to say? Yeah, no, I mean, obviously, Zillow's a competitor of ours, but no, they're good. I mean, I'm saying, if you're looking at other states, especially, you know, the Midwest or maybe Texas or some of those other states, DanZillow would be a good platform to use for properties.

We have, listen, we have aspirations. We only launched two years ago. We have aspirations here of being, you know, across the United States, maybe eventually into Canada and being, you know, being the trusted global database and community to real estate, which would be awesome.

It takes some time. It takes some time to get there.

Practical Steps

For sure. But yeah, absolutely, if you're looking for Florida, it's way better. Real Trade is way better than the other ones.

Yeah, we spent a lot of time. I wanted to make the UX and UI really nice, really easy to use, really intuitive. I mean, you can filter out from sizes, you know, of the units, the types of units, whether it's condo or townhome, you know, the price point, obviously, you can filter out so you can really, really see the types of properties. And then, of course, you can save the properties that you like, right?

Then they're saved there under your profile so you can always go back and view them and check them out, which is a really nice option, which is a really cool thing that you can do on the platform. So, yeah, I just tell people just check it out every once in a while and get on there, see what's new. You can filter out how many days on the market so you can say, I just want to just check out the new ones that are on here for the last couple days, you know, or the last week, right?

You go on once a week and just filter out, hey, the last seven days and check them out and see what's new. Awesome.

Key Takeaways

Any other questions, guys? So, quick question about Realtrade. So, it's free for just browsing and stuff like that. When do you have to actually start paying for its use?

Yeah, so the nice thing for the members, which would be a member of buyer-seller, it's free. The only ones that are paying would be the agents and then the service providers. So, they have a subscription model that they have that they paid for. So, yeah, for the members, which you'd be a member like a buyer-seller, it's free.

The only time it would cost if you want to advertise your business would be a way that it would cost you money. Can you hear me, Scott?

Yeah, I can hear you. Okay, cool.

Resources

Hope that one ends. Does that answer that, Wayne?

Yep, it does. Thanks.

All right, no problem. Perfect. Wayne, you've been awesome with the questions. Is there anybody else with questions?

I did want to ask if there's any pre-construction opportunities on that site. Yeah, we actually have a lot of new construction projects that are on Realtrade. One of the, you know, we have the Elba Project, which is a big sponsor on the platform.

Introduction

There are new construction condos. Yep, yeah, basically anything that's put into which, you know, that we have here in the States is called the MLS, which is just a multiple listing service. We automatically get all of them. And then people can add things too on the social feed if there's new stuff too.

So you're going to be seeing things, you know, from all over the place that are on there. But the big majority of the listings are going to be from the MLS and all the new construction projects, they list their projects on the MLS. So you'll see them on, you'll see them on Realtrade.

Yep. Which I love new construction. Actually, that's how I started my whole real estate, you know, career was selling new construction condos. Have a great experience in that.

So, yeah, you feel free to reach out to me and I can point you in the right direction to some other, you know, some new construction projects too that are out there. Thank you.

The Core Idea

You too. Thanks, Adele.

Awesome. I think we have a couple more minutes if there's any other questions and if not, we'll head out.

Yeah. I just want to add one thing, you know, Scott, is that, you know, I talked about this. It's just, you know, and you can kind of hear my passion for my voice and it's like, just take that first step even if it's a small property to start and you start coming down here and spending more time and get more of experience here in the South Florida, you know, that return on life, it just can't be underestimated, you know, estimated shot. Like, it really is such a great experience.

It's one of the best things that I ever did. And all my friends, you know, that started out here, maybe buying a second home, got to be careful. You might end up living in South Florida. A lot of, a lot of friends over the years, that's how it started and they enjoyed it out here so much.

Deep Dive

Yeah. And just to let you guys know too, like if you, say you want to get started in, into this, but you're overwhelmed and you don't know what steps to do and you just don't have, you know, the confidence or whatever to move forward of this yourself. We actually have partners and we'll share the details later. I don't want to share them on here, but we have partners that have a done for you service in Florida, right?

Ryan's spoken to them. I've known them, right? So, so we have that and then even myself, I'm getting together some partners and we're going to be buying a ton of properties, right? We're building the team for the management and all that stuff, right?

We just want the money for the down payments, right? And we're going to get the financing and all that. So there's avenues for you to get started without, you know, jumping all in and feeling like you're alone, right? There's people that can help you to do this.

So I want you to know that. But if you guys do want my contacts for the done for you service or whatever, just message me within the hub. On there, you can find me, right? I obviously, I run it, but send me a DM in there and then I will respond and share with you all the contacts that you need that we have access to.

Practical Steps

That's awesome, Scott. Yeah, I'd say just any way that you get, you know, get invested in Florida real estate is just going to change so many things and I have had so many clients over the years. They're like, wow, it was really scary taking that first step. But now that I have clients that now have five, six, seven properties that started with just one.

Yeah, and it's nothing crazy and I mean, we're all investors here, but it's new, right? Just like some people, they might buy duplexes and they're scared to buy a fourplex because it's something new, right?

This is the same thing. It's something new and, you know, there's hurdles, but they're not difficult to get past.

So, just inspire everybody. Awesome. Thanks for having me on, Scott, and thank you all for listening. It's been nice chatting with you all and I enjoyed the presentation and, hey, if you're ever here, in South Florida, West Palm Beach, love to take you out.

Key Takeaways

I've had a lot of Canadian clients. We take the whole day and tour the whole areas and I show them all the landmarks and all the great restaurants. Love to do that for you too.

Awesome. I'm going to hold you to it because I'm going to be up there soon.

Get on the boat, Scott. We'll do some fishing.

All right. Sounds good.

Resources

Thanks everybody for joining. Thank you, Ryan as well. Wealth of knowledge and I love the fact that you completely designed the best tool I've seen to find property. So, I just was super excited to get you on to talk about it.

Thanks for having me on, Scott. Appreciate it.

No problem. Thank you.

Take care. Thank you so much for tuning into the show today. If you found value, please follow the show and rate it five stars. It would mean the world to me.

Introduction

And lastly, all the resources that we spoke about are at the bottom of the show notes. Looking forward to seeing you on the next episode.

out.