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.
Scott Dillingham:He's also a realtor, and he specializes in working with properties in the South Florida area. So welcome, Ryan.
Ryan Poole: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 south for over twenty five years, so Northern Minnesota. So I feel like a Canadian.
Ryan Poole:We used to go to Winnipeg when we were young because of the drinking age of eight up there. We spent a lot of time up there playing hockey as well, so glad to be on the show, Scott.
Scott Dillingham: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?
Ryan Poole:Yeah. Yeah. Northern Minnesota, there wasn't a whole lot of nightlife. Right? I grew up in a small town called Pete River Falls and, yeah, there wasn't much going on.
Ryan Poole: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 of fishing cabin on Lake Of The Woods on the on the Ontario side that we spent a lot of time up there too, is, you know, grew up catching walleye, love to fish. One big reason, obviously, I moved to Florida. I love the ocean and the fishing, all that fun stuff too.
Scott Dillingham:Yeah, know, me too. I actually, for those that don't know this, but I was actually born in Maine. 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.
Scott Dillingham: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.
Ryan Poole:Down to Florida. Lot water down here in South Florida, as you know.
Scott Dillingham:That's And 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, what you've accomplished and who you are. But I'd like to hear sort of the transition journey.
Scott Dillingham:So for anybody listening to this, how can we get into your shoes or how can we grow as a person? So I'd love to hear your story about what it was like growing up to where you are today.
Ryan Poole:Yeah, I have that kind of entrepreneurial spirit, right, where I always wanna 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, I as I mentioned, I grew up in Northern Minnesota, which, you know, I loved growing up there. The people were awesome.
Ryan Poole: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, was like, wow, man. This weather is a tough one.
Ryan Poole:You know, the Minnesota winners 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 weather's were tough. And, you know, I luckily came down to South Florida my second year in spring break in in college and just fell in love with it. And I actually went to the Florida Keys, and I was like, wow.
Ryan Poole:What a beautiful place. And I found Jimmy Buffett, listened to all the cool songs that he sings about the Caribbean atmosphere and life. I really fell in love with it. And I said, wow, this is someplace I really like to go. Went back, finished out year of school and was just gonna come down here in South Florida, work for the summer in the Florida Keys.
Ryan Poole:And you know, after working for that summer, I started creating a really good network. I actually meant a mentor, a multimillionaire that worked at a restaurant that I worked for the summer. His name was Mike. And he goes, you know, Ryan, I'm like, you know, didn't know what I wanted to do in my life. He goes, listen, Ryan.
Ryan Poole:She goes, 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 twenty 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 twenties. And I took his advice to Hart Scott and I got my real estate license. And it's been an incredible journey since.
Ryan Poole:It's been a lot of just a lot of opportunity. I had my own investment properties that I've invested in. Met so many great people in real estate. And the big thing is, I've got to impact a lot of people's lives. As I've been doing this now for over twenty years, I really get to see the impact that I've had on my clients.
Ryan Poole:Especially a lot of friends that I've sold real estate to of how much wealth they've built and how successful they become just from owning South Florida real estate. And it's been a very rewarding experience. As an impact in my life, I actually had some things go through Minnesota too. I just saw a little bit of personal level. You know, I had a tragedy happen in our family.
Ryan Poole:I had a twin brother, if you could imagine that he passed away when I was 17. So that was part of the reason to I think Minnesota as you know, it can get very gray during the winter. That was a big reason too. I wanted to explore and just be somewhere very bright and green and like summer all the time. So that was another big reason to move it down here.
Ryan Poole:But yeah, so I got my real estate license at 20 years old and started cutting my teeth on real estate, started actually working for developers, selling new construction. I was very successful in that in the Florida Keys. One thing about the Florida Keys, there isn't lot of inventory. It's selling new construction. We used to joke, you'd sell yourself out of a job.
Ryan Poole:Right? You know, we'd have, I'd sell myself out of a job. So you'd go to new projects and venture 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, are going on here in West Palm, so many opportunities.
Ryan Poole:And it's been just something else to watch West Palm grow now here for the last twenty years and see the trajectory of where it's going in the future, especially when it goes to real estate.
Scott Dillingham:That's awesome. Yeah, and I'm super excited. I know you have some examples to show us. Really excited to see that. Now, just 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.
Scott Dillingham:Right? It's the flooding. So Mhmm. Can you talk about, you know, how West Palm Beach, you know, it's not so affected compared to other places?
Ryan Poole:Yeah. You know, obviously South Florida, we have storms here. We call them hurricanes. Right? And Yeah.
Ryan Poole: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. And usually on the West Coast, it's a little bit lower.
Ryan Poole:So you're going to have lower more flood, lower areas with more flood zone. Here in West Palm, if 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 twenty, thirty, 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.
Ryan Poole:So it's a good drainage area here for West Palm Beach. And yeah, our areas tend to be a lot higher than on the West Coast Of Florida where you experience a lot of flooding. Know, last year or the year before they had that big hurricane there in Fort Myers and had a lot 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.
Ryan Poole:You have wind insurance that you can purchase for all that kind of stuff. But yeah, that's one thing I tell people on the West Coast Of The United States and Canada, right? You have earthquakes here, 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.
Ryan Poole: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.
Scott Dillingham: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 not everybody on this call knows this, but there's areas that you cannot get flood insurance because it just keeps happening over and over again. I think over time, insurance companies will step up to the plate, but I know a lot of places are still dealing and trying to rebuild. 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.
Scott Dillingham:So for an investor, I think that's super important.
Ryan Poole:Yeah, I'll say this in my twenty years experience of selling real estate here in this area. I've never once not had a client not be able to get insurance for their homes, flood and wind insurance for their home. Yeah, it's pretty. And I've got some great insurance agents too, by the way, that are in my network somewhere on Real Trade, right? That are on there that can give you some great quotes.
Ryan Poole:I tell everybody to get at least two or three different quotes when quoting your insurance.
Scott Dillingham: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, a lot of people are going to be hearing this on Spotify and Apple.
Scott Dillingham: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.
Ryan Poole:Yeah. All right. Here, let me share
Scott Dillingham:my screen. And obviously talk about RealTreat, which I think is the best tool to get properties in South Florida.
Ryan Poole:Yeah. No. For sure. That's one of the the more exciting ones that I wanna that I wanna share with Scott is about RealTrade. You know, we have thousands of users, lots of people looking for properties on there and all that kind of good stuff.
Ryan Poole:I literally build RealTrade to help clients, right? Like this. This is pretty All right, so let me share my screen. All right, can you see it there, Scott? Yes.
Ryan Poole:All right, so this is something that, you know, I love this, Sun Sand and ROI, investing in South Florida real estate. So I wanna 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 talked to, a lot of them have been here in Florida, but one thing, and you get a great ROI investing in Florida and some, like I said, have had some great returns and impacted life positively, but I also wanna 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 Florida, right? So many wonderful things to do. I'm a big outdoorsman.
Ryan Poole:I love to love to dive. I'm a big free diver spear fisherman. So if you can imagine it's like hunting underwater, you know, you actually dive down and hunt the fish. I I do a lot of hunting here. Believe it or not, soft forted.
Ryan Poole:We 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. With 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.
Ryan Poole:And he could do all this stuff year round. You know, I got my son up. 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 knowledge of that ROL, which return on life.
Ryan Poole:Now I spoke a little bit about myself, about my real estate experience, but I've been active in real estate as an investor, a full time agent, partners in a brokerage for over twenty five years. I have tons of experience, you know, and I could, 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 $250,000,000 under management just myself, Scott. Wow, that's impressive. I was managing.
Ryan Poole: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 the pieces together. But the one thing that I'm most proud of, founder of RealTrade. So as I saw the industry going towards tech, as I was in real estate and I saw what was happening with Zillow and Trulia and Redfin and realtor.com, I really saw where the industry was going.
Ryan Poole:I'm like, wow, the consumer's becoming smarter. They're gonna want all the information. They're gonna 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.
Ryan Poole:But the biggest thing is we have an integrated social media platform where not only they connect with agents that have property sale, but connect with awesome service writers that they're gonna need. Like you, Scott, you're on RealTrade, 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. Love helping.
Ryan Poole: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 wanna show you the the great restaurants to eat at, some awesome fishing. I have a boat.
Ryan Poole:I've taken my clients out, which I think you know the was. Scott taken them out plenty times. You know, Charles Herbstadt had him out of my boat many times. Loved to to take my clients out and really show them what Florida is all about. I mean, the best way to see Florida is from the water.
Ryan Poole:You know, we're surrounded by it. Love giving them tips of taking trips to the Keys. If I have the time, I'll go with you. You know, I used to live down there and it's just such a beautiful drive to go to the Florida Keys and see Key West. A lot of great things there.
Ryan Poole: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 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 their 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 in our humidity breaks. And now here from the November all the way through May, we don't have any humidity here in South Florida.
Ryan Poole:And our average daytime temperature is gonna range anywhere from about 65 up to about maybe 80 degrees. So you're talking to said perfect temperature, no humidity, it's just a beautiful time to be here. 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 have 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 out there and visit Disney World.
Ryan Poole:So now we have a lot of my clients on Halen. 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, touch on those, the hunting, the fishing, the diving, restaurants, a lot of culture. You know, we have a lot of New Yorkers, as you know, has moved down here to South Florida, Scotts.
Ryan Poole:So they're bringing their a lot of 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, know, operating everything from luxury condos to single family homes, suburban areas. So we can find you something that aligns with your investment goals.
Ryan Poole: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 a thousand people a day are moving to Florida, Scott. A big reason that we have, and this is something, say what you want about DeSantis, our governor, but he called it right. He did some really great things for businesses.
Ryan Poole:One thing we have is 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 or the gains. And we also have some great laws as far as that they passed for renters. So I know in Canada, they have basically a structured where you can only go up 3% a year on your rents.
Ryan Poole: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 Canadians are buyer. It's almost like you're putting your money into an American bank because you sell there in American dollars. And historically, South Florida has experienced relatively stable real estate appreciation, much now.
Ryan Poole: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 still seen eight to 9% appreciation from this time last year within the last
Scott Dillingham:That's good. Yeah,
Ryan Poole: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 a good, solid long term investment. All my clients that have held five or more years, know, Scott, have been very excited with their investment. So a couple part two, you know, obviously a a big destination is South Florida versus the West Coast Of Florida and some other is we're an international appeal. Miami is only about an hour's car drive.
Ryan Poole:You can take the high speed train there and be a little less than an hour, but that's an international market. We have people from all over the world, 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 as well. We love South Florida.
Ryan Poole: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 other places in Canada. Now this is a big thing and I touched on this as a strong rental market.
Ryan Poole:Not only do we have the long term tenants, right, which a lot of my clients have long term tenants, yearly tenants, right? But we also have, which is a great option, I'll go over a couple of those is the short term rental, you know, market, which is very strong as well as we see some of the highest vacancy rate, vacancy rates of anywhere in the country, as far as if you look at AirDNA and some of the other platforms that track that. There's close to a thousand people a day moving to Florida and they all need housing, even if it's just temporary housing. It's a strong market. Course, our infrastructure, which I talked about, the new BrightLine station in amenities, we have great highways, airports.
Ryan Poole:I mean, here in West Palm Beach, have the Palm Beach International Airport. I know starting this winter, they have direct flights, I believe from Toronto right here. So that's a huge attraction to a lot of places. Great shopping. We have outlet malls.
Ryan Poole: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 more 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.
Ryan Poole:You know, it's very well established, real estate transactions here in South Florida. We have great security for foreign buyers as well. And then of course, touched on the potential for a capital appreciation and then the networking opportunities. South Florida, let me tell you, has a very vibrant real estate community. There's even people's building, you know, online social media platforms just for real estate, right?
Ryan Poole: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.
Ryan Poole: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 of examples here. So this is a real world example of a property that I just sold, right? That I just closed with a client.
Ryan Poole:This is one of my favorite types of investment properties. This is a four unit. Love to sell these multi families, you know, anywhere from four to 20 units. This is a great one. This is in Lake Worth Beach.
Ryan Poole:So this is just South of West Palm, but you're talking ten minute, fifteen 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 would call it kind of like your quintessential South Florida beach town, right?
Ryan Poole:So it has a lot of history, 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 $18.50 a month for the studios to 2,600 then for that one ones. And then the cool thing is here at South Florida that they do a lot is they'll keep all the utilities under the the owner's name, and then you charge a utility fee of a $150 a month, you know, to the tenant.
Ryan Poole:So it ends up he actually is getting 8,750 a a month, you know, as far as revenue on that. I mean, here's your taxes, your insurance, your utilities, which he's paying, your pest control, lawn maintenance, and then a 5% property management or realtor fee. And of course, here's his mortgage that he took out. He did only a twenty year mortgage. I know you have a lot of other options that you can go book with people, Scott.
Ryan Poole:And this ends up being his cash on cash return ends up being 11%. This So is a great option to a lot of investors that I work with is is selling these types of multifamily properties, and they they got great returns and get great rents.
Scott Dillingham: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 you're making awesome money, but you can go with a thirty year or even a forty year interest only option in The States. So this person obviously wants to pay off this home.
Scott Dillingham:But as an investor growing your portfolio, I believe it's best in the beginning not to focus on paying it off. Get that interest only, build up your portfolio. 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. They say too, I don't know if you know this, Ryan, if it's a Canadian thing or whatnot, but the 1% rule.
Scott Dillingham: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.
Ryan Poole:Yep. There it is right there. Yeah. No. It works.
Ryan Poole:I mean, it works. And it's, 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.
Ryan Poole:All right. So let's go to the next one here. Now this is a cool one. Now this is one that I've actually sold a number of clients in this actual complex called the Courtyards, And this is in Downtown West Palm Beach. So this is right in the heart of the metropolitan area in West Palm.
Ryan Poole: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 viewers to know that in South Florida, most condos you can't do short term rentals, right? They're gonna have to probably do a year lease or maybe like a six month lease minimum. But this particular one allows with the HOA rules thirty days, so you can do thirty day rentals in the actual for your unit.
Ryan Poole:And great get some great returns. Yeah. And they're averaging 5,700 a night or I mean, 5,700 a month or a hundred ninety ninth. The purchase price on this one was like 430,000. Now here's the financial breakdown, or excuse me, was 450,000.
Ryan Poole:This is a financial breakdown that we did with an investor. They put down, had your closing costs, they put in some 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. The interest rate at 7.5%, thirty years, I think you probably have a similar product to this, know, Scott, we have.
Ryan Poole:This should be their home insurance, the taxes, right? $27.30 a month. 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 gonna be around 10%.
Ryan Poole: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.
Ryan Poole:Like I said, we did 9% this last year, but 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?
Ryan Poole: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.
Scott Dillingham:Yeah. I think it's awesome too.
Ryan Poole:I yeah, 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 thirties and they they're nomads, right? So they travel all over the world.
Ryan Poole:They're they're called the new digital nomad. They all work from their computer. And they rent it 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.
Ryan Poole:A lot of possibilities with that type of property. Nice thing about a condo, you do have your HOA fees, which you can see, right? Your maintenance and your structural insurance. That's your HOA fees right here at at 7,900 year. But the nice thing about your HOA fees is that does include your structural insurance and upkeep on the property.
Ryan Poole: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. It's just North of West Palm in the area called Northwood.
Ryan Poole:And this is a lot of these homes were built back in the 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 bike to downtown.
Ryan Poole: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.
Ryan Poole:That's where the super mega wealthy owned 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. Kennedy is all the Kennedy state is there. The average home, which is literally right across the bridge from this home, is $7,000,000 So you're pretty much surrounding yourself by some of the most valuable real estates, you know, in in The United States right across the bridge.
Ryan Poole:But here's a perfect one. The purchase price on is 395,000. We've been factored about an 85% occupancy rate on this one at an average about the same. It's a three bedroom. So average about 190 a night.
Ryan Poole:Right? It's a little bit further from downtown, but you have an extra bedroom. And here's how that's financial breakdown works. Now, I'd model this out with this client at 20% down. Obviously, you could do 30% down, but the returns would be about the same.
Ryan Poole:You don't have obviously your maintenance fees, but you do have to buy structural insurance, right? Because you still have to have that flooding wind insurance that you have to purchase that. You have your taxes at $4.16 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.
Ryan Poole:So the management fee is gonna be a little bit higher on that one. But you're still looking at a cash on cash return of 11.67%. And then you look at over here, your your equity growth per year that you're seeing at just a 5% of how that comp can compound over the next ten years. So pretty exciting stuff. No.
Ryan Poole:That's awesome. Yep. Yep. People always wanna ask like, how do we how do you get ahold of me? This one of the best ways that I have, and I have a lot of Canadians that are using RealTrade, is you can sign up for RealTrade.
Ryan Poole:Now it's free if you're, you know, just want to browse this, actually it's free for any buyers and sellers. Realtrade.io, create a profile. I suggest following me. I'm one of the agents on the platform. You can follow me.
Ryan Poole:You can get all my updates on real estate right there on 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. Literally built built that.
Ryan Poole:You can share. We can share listings. We can discuss them all through RealTrades. Like I said, it's free. Check it out, you know, definitely check it out for PropertyTrails.
Ryan Poole:You can also email me. Here's my email if you wanna take a screenshot of that and my phone number. You can message me on WhatsApp too as well if that's easier for you. Right there. And then of course, when you have a contact for a great lender that works with Canadian investors that I work with, he has 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.
Ryan Poole:We've got a great relationship going.
Scott Dillingham:Yeah, no, you're welcome. And I'm excited. And 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.
Scott Dillingham: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 gonna be purchasing and entering these renewals that are gonna cause negative cash flow, 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.
Scott Dillingham:Where in The States, know it can be like a couple weeks to maybe two months maximum the tenants
Ryan Poole:Two months are maximum, Scott, that I've seen to evict tenants. One good thing that we have, 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 of trying to find another place for rent, right? Because it's the market's tough. So actually we have a lot of my clients have tenants that are staying on the annual rentals, obviously two, three years that they have these great tenants.
Ryan Poole:Another thing too is you can readjust your rent every single year. So after that lease is up, after that year, everything's renegotiated at that point, sign a new lease and whatever the rates are at that time. Yep.
Scott Dillingham:Yep. 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 in 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.
Scott Dillingham:And and the reason is from the foreign buyer standpoint, the number one foreign buyers in Florida was actually China or people from China. Right? Yep. 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. So I'm excited for that.
Ryan Poole:Yeah. Yeah. No. They he changed that. I mean, it could be a little looked a little bit of a political play that he had, but No.
Ryan Poole:They know they make it. Yeah. Very difficult obviously now for Chinese investors, but it's great for Canadian investors, other European. Actually, only countries that are really affected are China, Iran, and I think Cuba or Venezuela are the ones that are really affected on it.
Scott Dillingham:Nice. But no, it's awesome. And you guys, I would recommend to check out RealTreat. It's kind of like realtor.ca here, but it's much more fluid. It looks so much better.
Scott Dillingham:It's faster. I find realtor.ca can be sluggish sometimes, really sluggish. 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's saying, you can build your network. It's kinda like a social media thing for real estate.
Scott Dillingham: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. You're not having to build from scratch, right? And look these people up. It's all it's all there in one resource.
Ryan Poole: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. Honestly, best thing is the free service doesn't cost you anything.
Ryan Poole: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.
Scott Dillingham: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 real estate or anything Florida related. So we'll see. Does anybody have any questions?
Show Guest:Dwayne, a quick question. In terms of 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? What are we sort of dealing with there?
Ryan Poole:Yeah, so the property manager, their rates are going to depend on what kind of services do they have. Know, it's, 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 be leased. You don't have 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 you know, for the property managers. Now, if you're be paying like the 18%, we're talking full on property management for your short term rental property.
Ryan Poole:So they handle the Airbnb, you know, profiles, the bookings, the cleanings, you know, the screenings, all those kind of things, they're gonna handle that for you. You know, so it's basically pretty much hands off, you know, at that point. Now, you're doing like the monthly rentals, remember, they're gonna the rates are gonna be lower because they're not gonna be renting it, you know, 20 or 30 times a year. They're going be just renting it maybe eight to 12 times a year if you have 100% occupancy. Their rates are a little bit lower at like 10%.
Ryan Poole:Awesome. Great question, Lee.
Show Guest:And the other question is also, do you have, I guess, on their list of, I guess, trades or contractors on the site as Yeah,
Ryan Poole:no, we have contractors that are on there. So you can search our like, you know, attorneys, inspectors, appraisers, you know, all those types of people that you need to use for your real estate journey can be find on there. Great lenders, great lenders. You can find Scott on there as well. So yeah, you can find them.
Ryan Poole:Obviously agents, I'm on there. I'm all over there. So you're definitely gonna see my face as the founder. Hey. I'm on there as an agent.
Ryan Poole:So, yeah, no, it's a great resource. Feel free to use it.
Scott Dillingham: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 border, right? Detroit is rate literally a bridge away. So we have a few people here that no taxes on both the Canadian and The US side.
Scott Dillingham: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 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 to the estate. But if you have it in a corporate limited partnership, you can kind of defer that.
Scott Dillingham: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.
Ryan Poole:Now that's important, right? No one wants to pay double taxation. No, a lot of the foreign buyers I have, they buy in, you know, in in vehicles, LLCs, different entities, corps, all that kind of good stuff. We had to find out which was the best fit for you on that.
Scott Dillingham:Yeah. And then you get that liability protection too, the personal or sorry, Corp name.
Ryan Poole:Yep. Which is nice.
Scott Dillingham:Yep. But yeah, my Corp, we set it up in Wyoming for the business because Wyoming has no state 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.
Ryan Poole:Yeah, no, a lot of them mean, it's amazing. A lot of I, you know, I, one of my advisors on RealTrade, she's from Montreal and she had domiciled here in Florida. She goes, Ryan, what's one of the best things that ever did was domiciled my business here in South Florida. Income tax. She's very happy with that.
Scott Dillingham:Yeah. That's awesome. Any other questions from anybody else on the call today?
Show Guest:So quick question. I know we're focusing more on Florida properties and stuff. Does RealTrade also show properties in other areas in The States?
Ryan Poole:Good question. Right now we're South Florida focused. So 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.
Ryan Poole:Just do some research on some different marketplaces in that particular area that you're researching.
Scott Dillingham:But I think, Wayne, just to help you all, like, we started getting into the lending, there was some astounding number, like, 70% of foreign buyers, like, Canadians buy in Florida. Right? So I think that's why wanna have Ryan on because I think he covers the the bulk of of of the purchasers who who would buy. But if they're not on real trade, they also have Zillow in The States, which is, I think, in my opinion, better than realtor.ca. I don't know.
Scott Dillingham:What do you think, Ryan? Are you allowed to say?
Ryan Poole:Yeah. No. I mean, obviously Zillow is 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, Dan Cielo would be a good platform to use for properties. Listen, we have aspirations.
Ryan Poole:We only launched two years ago. We have aspirations here of being across The United States, maybe eventually into Canada and be the trusted global database community to real estate, which would be awesome. It takes some time. Takes some time to For get
Scott Dillingham:sure. But yeah, absolutely if you're looking for Florida, it's way better. Real trade is way better than the other ones.
Ryan Poole: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, can filter out from sizes of the units, the types of units, whether it's condo or townhome. The price point, obviously, you can filter out so you can really see the types of properties. And then of course you can save the properties that you like, right?
Ryan Poole:Then they're saved there under your profile so you can always go back and view them and check them out, which is really nice option, which is a really cool thing that you can do on the platform. Yep. Yeah, I just tell people just check it out every once in a while and get on there and see what's new. You can filter out how many days on the market. So you could say, I just wanna just check out the new ones that are on here for the last couple days, or the last week, right?
Ryan Poole:You go on once a week and just filter out, hey, the last seven days and and check them out and see what's new.
Scott Dillingham:Awesome. Any other questions guys?
Show Guest:So a quick question about RealTrade. It's free for just browsing and stuff like that. When do you have to actually start paying for its use?
Ryan Poole:So the nice thing for the members, which would be a member of buyer seller's tree, 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 pay for. So yeah, for the members, which you'd be a member like a buyer seller's tree, the only time it would cost if you want to advertise your, your, you know, your business would be a way that it would cost you money. Can you hear me, Scott?
Scott Dillingham:Yep. I can hear you.
Ryan Poole:Okay, cool. Hope that one ends. Does that answer that, Wayne?
Show Guest:Yep, it does. Thanks.
Scott Dillingham:Alright, no problem. Perfect. Wayne, you've been awesome with the questions. There anybody else with questions?
Ryan Poole:Did want to ask if there's any preconstruction opportunities on that site. Yeah. We actually have a lot of new construction projects that are on real trade. One of the you know, we have the Alba project, which is this big sponsor on the platform. They're new construction condos.
Ryan Poole:Yep. Yeah. Basically, anything that's put into which, you know, that we have here in The States is called the MLS, which is the 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.
Ryan Poole:So you're gonna be seeing things, you know, from all over the place that are on there. But the big majority of the listings are going be from the MLS and all the new construction projects, they list their projects on the MLS. So you'll see them on Real Trade. Which I love new construction. Actually, that's how I started my whole real estate career was selling new construction condos.
Ryan Poole: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 too, some other, some new construction projects too that are out there. Thank you. Thank you. Thanks Adele.
Scott Dillingham:Awesome. I think we have a couple more minutes if there's any other questions and if not, we'll head out.
Ryan Poole: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 from my voice. 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 into South Florida, that return on life, it just can't be underestimated, you know, estimated shot. It really is such a great experience. It's one of the best things I ever did.
Ryan Poole:All my friends that started out here maybe buying a second home, got to be careful, you might end up living in South Florida. A of friends over the years. That's how it started and they enjoyed it down here so much that they ended up living here.
Scott Dillingham:Yeah. And just to let you guys know too, if you say you want to get started into this, but you're overwhelmed and you don't know what steps to do and you just don't have the confidence or whatever to move forward with this yourself. We actually have earners and we will 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.
Scott Dillingham:Ryan has spoken to them. I've known them. So, we have that. And then even myself, I'm getting together some partners and we're going be buying a ton of properties. We're building the team for the management and all that stuff.
Scott Dillingham:We just want the money for the down payments. And we're going get the financing and all that. So there's avenues for you to get started without jumping all in and feeling like you're alone. There's people that can help you to do this. I want you to know that.
Scott Dillingham:But if you guys do want my contacts for the done for you service or whatever, just message me within the hub. Whether 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.
Ryan Poole:That's awesome, Scott. Yeah, I'd say just any way that you get invested in Florida real estate, just going to change so many things. I have had so many clients over the years. They're like, Ryan, it was really scary taking that first step. But now that they have, I have clients that now have five, six, seven properties that started with just one.
Scott Dillingham: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.
Scott Dillingham:It's something new. And, you know, there's hurdles, but they're not difficult to get past. So just inspire everybody.
Ryan Poole:Awesome. Thanks for having me on, Scott, and thank you all for listening. It's been nice chatting with you all and I've enjoyed the presentation. Hey, if you're ever here in South Florida, West Palm Beach, love to take you out. I've had a lot of Canadian clients.
Ryan Poole: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.
Scott Dillingham:Awesome. I'm gonna hold you to it because I'm gonna be up there soon.
Ryan Poole:Get on the boat, Scott. We'll do some fishing.
Scott Dillingham:Alright. Sounds good. Thanks everybody for joining. Thank you, Ryan, as well. Wealth of knowledge, and I love the fact that you've completely designed the best tool I've seen to find properties.
Scott Dillingham:So I just was super excited to get you on to talk about it.
Ryan Poole:Thanks for having me on, Scott. Appreciate it.
Show Guest:No problem.
Scott Dillingham:Thank you. Take care.