The 5 Questions Podcast
Join us as we unlock real estate and business insights, one question at a time.
The 5 Questions Podcast
From Engineering to Real Estate Success | Layda & Valentina's Inspiring Journey
What if your background in engineering could lead you to a thriving career in real estate? Meet Layda and Valentina, two industrial engineers who turned their analytical skills into a winning formula for multifamily real estate investing.
Sponsored by: https://ekconsulting.ca/
Social Media Links: https://www.instagram.com/lmv.properties
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In this episode, they share:
✅ How process optimization and problem-solving skills gave them an edge.
✅ Their strategic transition from single-family homes to multifamily investments.
✅ The role of education and mentorship in navigating real estate complexities.
✅ The importance of partnerships in achieving success — likened to a marriage!
✅ Tips on risk management, from understanding tenant profiles to evaluating market locations.
Whether you’re an aspiring investor or a seasoned professional, their practical advice and inspirational stories are a must-watch. Dive in to discover how their love for numbers, spreadsheets, and meaningful relationships is shaping their real estate success.
Watch now and level up your investment game!
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#RealEstateInvesting #MultifamilyInvestments #WomenInRealEstate #EngineeringToRealEstate #InvestmentTips
Another thing was also mindset. Yeah, mindset. We had to shift our mindset at the beginning. Right, it's key.
Speaker 2:Welcome to the 5 Questions Podcast, where we unlock real estate and business insights, one question at a time, if you're looking to grow your business, create cash flow or invest smarter. Elizabeth Kelly is a boutique coach specializing in business planning, cash flow creation and real estate investments. Through personalized one-on-one online coaching, elizabeth meets you where you are and guides you to your next step. With nearly 20 years of experience, she provides the systems. Welcome to the 5 Questions Podcast. Visit us at wwwekconsultingca to learn more. Welcome to the 5 Questions Podcast. I am your host, mario Lamar, and today our guests have over 30 years of industrial engineering background and they transitioned to be successful real estate investors. They started investing in single-family and now they focused on multi-family properties. Welcome, leda and Valentina. Welcome ladies.
Speaker 3:Hello, hello, hi, mario, nice to see you. Thank you for having us.
Speaker 2:Not a problem. The concept of the podcast I ask five questions about real estate or business and we get straight to the point. Are you ready?
Speaker 3:Ready Okay.
Speaker 2:Question number one as industrial engineers with extensive experience in process optimization, how do you apply these principles to evaluating and managing real estate properties?
Speaker 3:Yeah, the biggest thing for us is the numbers. We love spreadsheets, so running numbers for the properties and analyzing deals for us is a key factor. As industrial engineers, and always in manufacturing, we have been always in looking at numbers and our day-to-day is solving problems, so it's something that also we apply in the real estate world.
Speaker 1:Yeah, as you know, in real estate you always have to be ready for things that change last minute. So that's part of the journey and we both have a lot of experience working in quality, which basically day-to-day, is dealing with problems. So that's one of the key elements that we have been able to apply in real estate. The other one is process optimizations right, so we work directly in the assembly lines, so we try to optimize the assembly, the quality, the output. So it's very transferable to real estate, right, because every real estate is a project, absolutely.
Speaker 3:The other thing is the deadlines. We're always working with project managers, so we know how to lead a project, lead a team, and when you're in real estate and you're doing, for example, retrofits, you need to have deadlines. You need to make sure you're aligned with everyone. It's in, you know the team, uh, you know if you're going to apply to your refi, uh, you have to make sure you have, uh, your papers, your deadlines, like everything is. We track everything you know in paper and you know, like, all the spreadsheets and all that. So that's it's. It's also key and I I also have a team of 11 people, so this helps in in the real estate when you have to deal with other people managing contractors contractors.
Speaker 3:You know, like I have my supervisors, so yeah, it helps.
Speaker 1:Yeah, and one thing I'll tell you it will be managing the people but also working with other departments, right? I don't work in quality anymore, but I remember you had a complaint from a client. You have to work with the rest of the team to give a solution right, and we know that in real estate, you know we are very partnerships is kind of our heart. Partnerships is kind of our heart, so that helps us to work with other people and align and at the end, find that, identify that we are to the same end result and we're working together to get there.
Speaker 2:Absolutely Well. It seems like you have everything under control, from your nine to five job in bringing it into real estate and managing a portfolio from running numbers to managing partners, contractors and maybe some property managers is all really important things that real estate investors have to know how to do on their everyday life. It brings us to our second question and I wanted to ask how did your transition from owning a single-family home to acquiring apartment buildings shape, maybe, your approach to multifamily investing?
Speaker 1:shape maybe your approach to multifamily investing. So for us approaching the multifamily really came naturally right at the beginning. So when we started getting the proper education, so we always felt the love about real estate but we didn't have the proper education. So normally when you don't know you just start with a single family home, right when we started getting the proper education.
Speaker 1:So normally when you don't know you, you just start with a single on a single family home right when we start getting the proper education and and understanding that even it sounds crazy or bigger or more money or more problems, it actually is less right because you are dealing with everything in under one, one building. So that was our first approach to move from single family to multifamily. So I think it was not a brainer. When we started to get involved into the real estate and connecting with people, networking, that we saw like, okay, we want to be that people and we started relating ourselves with the people that was working in multifamily.
Speaker 2:Yeah, I mean multifamily. It's not like just running like a single family home. There's different processes, there's different ways to calculate a deal, as you approach, as you evaluate a deal. So absolutely getting the proper education is a must if you want to start playing in that game, in that field of multifamily.
Speaker 1:Yeah, and it's key when you don't know what you don't know right.
Speaker 3:Yeah, as we're both engineers and we're known for being so smart you really don't know what you don't know.
Speaker 2:And you know some people they might try to do it on their own and it might take years and, and you know, do mistakes and then have to fix the mistakes and and and multifamily and real estate any mistakes is it could be very costly. So getting the proper education, I think, is key before you get started.
Speaker 1:Yes, another thing was also mindset. Yeah, mindset, that we had to shift our mindset at the beginning. Right, it's key. So you start to get yourself surrounded of people. But if you don't change your mindset, you won't move right. So you will still stay in the same place until you start changing stay on the same place until you start changing.
Speaker 3:Yeah, that's a big one, because at the beginning, as you said, we wanted to do it alone.
Speaker 3:Yeah, like no, we can do it all. You know, we have this background in numbers. We are all set and then we realized there are so many things that we had to learn and that we were we were doing like wrong. We were doing wrong, like, for example, we were not adding vacancy, so then the numbers were not proper, even though we know how to run numbers, that we were missing stuff. So, with the proper education, we're like okay, so now we can scale right.
Speaker 2:Yeah, it's we. We have to get the emotions out of it and maybe humble ourselves to say that we don't know everything right. So we need to learn from others' mistakes. It's less costly this way.
Speaker 3:Yeah, and you know, leverage the risk with other people's expertise, knowledge.
Speaker 1:Yeah.
Speaker 3:Yeah.
Speaker 1:And what you just say is actually very important as well for us the logic and reason, right. Yeah, you leave the emotions outside when you are working in a multifamily just say it's actually very important as well for us, that the logic and reason right. Yeah, you leave the emotions outside when you are working in a multifamily building than compared to a single family or even a four duplex triplex, because the mortgage obviously is based on you and all that. When is a multifamily? Is the numbers works?
Speaker 2:doesn't work yeah, right, so it's logic, yeah, become creative yeah it ties into um, what we talked about, into our third question and this question. I wanted to ask what challenges did you face from expanding from single family homes to larger apartment buildings? Um, and not only what challenges did you face, but but how did you overcome them?
Speaker 3:Yeah, it really ties up with the experience. We don't know everything and we are not experts on everything. So that moment that we realized that there is people, other investors that share our values, our goals, then we realized that we can grow bigger you know bigger faster with other people, with other expertise, with other experts, because we all have strengths, we all complement each other. So that's when we decided to go ahead and break this challenge that we had at the beginning, that thinking that we knew everything, instead of saying you know what, there is people that have already done it and we can learn from them.
Speaker 1:Yeah, that was key for us. And also doing your due diligence right. So we started to be more like open to those partnerships to make sure that we find people that we align, as Val was saying, that we have the same goals because has always risk. So just make your due diligence and be comfortable with the risk that you are taking. So that was the big one for us at the beginning and from there we are always kind of open for partnerships, right.
Speaker 2:Yeah, so partnerships can help you also with financing. I don't know if that was one of your challenge, but for a lot of investors, we run out of money and it's something that we have to overcome. We need a challenge, we need to ask for help or partner with others, like you said, partnership. Was that something, that challenge, that you faced?
Speaker 3:like you said, partnership, was that something that that uh challenge that you faced? Yes, yeah, we, we, we.
Speaker 2:We have multiple partners for that reason and for the expertise, yeah, and the expertise.
Speaker 3:Yeah, yes, and. But we always say partnerships are like a marriage. So sometimes people say, okay, would you leave the kids with the partners? You know what I mean.
Speaker 2:It's very important to do the due diligence yeah yeah, you don't you don't partner with, with anybody you, you have to choose them wisely yeah, yeah, you have to complement each other, right?
Speaker 1:you're not going to partner with someone that has the same experience that you, or they are also focused on the same as you, because we will be the same. You need to partner with people that complement with what you're missing. So everyone has their own strengths and and we also have a big challenge at the beginning with the, our first multifamily, with the financing that we went from seven to ten, oh yes, to seven to ten, uh units yeah, that that's a good, that's a really good one that we always have to.
Speaker 3:We all have to make sure that we check the numbers often, because the market is changing, the things are pivoting. In our case, we bought this property and then the interest rates started going up, so then we had to pivot and our partners made the decision to change from 7 to 10, and we all agreed. So we did a retrofit from 7 units to 7 units, but at that moment we said we're going to go from 7 units to 10 units to increase the value of the property.
Speaker 2:Yeah, so that's a very smart move, but, like you said, we have to consult our partners because we maybe don't know everything, and that's why we partner with different people, different skill sets.
Speaker 1:Yes, yeah, and in the same project. Actually, the other change that affected us was when CMHC changed the rules, because originally we were planning to go on a bridge loan for a year and then they changed it to two years. So those are the things, those are the challenges, that sometimes you don't really have two options but, say, review your numbers, make sure that you are still keeping track of your finances, the project and the timeline right. Sometimes the timeline change and sometimes you can't do anything about it. That's why we're saying that it's important that you know the risk that you're taking, that you're comfortable with that risk, because things change last minute and we know that and be open for that, be be receptible that that's going to happen. Okay, like, what are my options now? And take those decisions quickly so you keep moving.
Speaker 2:Things, yeah, and and things out of our controls. You know CMHC, who knows? Sometimes they wake up one morning and there's the news you got to adapt yourself. There's nothing you can do about it. So, yeah, absolutely, you have to be ready to pivot. I'd like to ask you my fourth question and this way we kind of touched a little bit before on it. You're both big on education and mentorship. You talked about, you know, learning before going into multifamily. How has mentorship played a role in your growth and what advice do you have for finding the right mentor in real estate?
Speaker 3:it has made a huge impact to have a mentor. We can say that we already um increase our business 10 times because of the knowledge and experience from our mentors. It's the guidance and the support. The support and the guidance and sharing the experience with someone that has already done it. It has made a huge impact in our process.
Speaker 1:Yeah, the other thing that we can say from that one is when you get into programs, you have the community right and you don't have to make the same mistake that someone else already did.
Speaker 1:That's why the community, because you can ask questions and people will try to guide you to the best that they can and you have the different options to get feedback from different people and then you can make a more educated decision. And the values, Obviously, if it's something, feedback from different people and then you can make a more educated decision. And the values, obviously if it's something, or the values and the if they align with what you want to do, right. So if find someone that is doing what you want to do, so you can learn from them, because you know I want to do this, but my coach is doing or my, my mentor is doing something else, because it's not going to going to align no, absolutely, the values have to align and, uh, the mentorship usually comes with, like you said, a community which this is key to growth, because you, your, your network, is your network, right?
Speaker 2:you, you need to talk to people. The real estate game is is a relationship game. So, um, absolutely, getting mentorship, I believe as well that it is key if you want to grow into, uh, real estate yeah, it doesn't mean that you cannot do it alone.
Speaker 1:But again, for us, we come back to the same uh example. Right at the beginning we're like, no, we can do it ourselves. And then quickly we realized that why, why we have to wait and what it's going to take us three, four, five years. Maybe we can do it in one, two years, and and and it's actually more fun when you work with someone else yeah because you have that sharing accountability.
Speaker 3:It's, it's a very, very like. You enjoy the journey.
Speaker 1:Sharing with someone and brainstorming back and forth and analyzing different perspectives gives you the expansion so I think the key for people that is still on the fence that I want to do try to identify the people that is doing what you want to do. Talk to these people and then find which one you can align and that will be your good start. And ask questions, ask a lot of questions.
Speaker 2:Yeah, it's okay to interview your mentors before you choose them right. It shouldn't be something that you're that we have to shy, to be shy about Ask questions because it's it's it can. It's going to impact your journey if you align with the right mind, mentor, or the wrong one. Absolutely, I agree to ask what role does risk management play in your investment decisions? We talked a little bit about it before, and how do you assess risk in a volatile market?
Speaker 3:Yeah, we have to analyze the numbers in the market. What's changing? Also, what else we look at with the risk.
Speaker 1:It's what we have been also talking already. Right, you have to be monitoring what's going on around the interest rates. If you are going to be CMHC, for example, for us, we knew when we started the project that we were going to go cmh, cmli, select you have to be monitoring the changes and what's happening outside. Right, the the economics of the country. There's people that invest international. You have to be monitoring that.
Speaker 3:So so you know what is the risk and if you have to take a different approach um, yeah, and for example, if, if you are going to start doing property management and you have to see the profile of the tenants and see what type of tenants are you getting in, uh, because that's that can reduce the risk, yeah, yeah I agree it all goes back, sorry, to the, to what makes you feel comfortable, right?
Speaker 1:We know that, for example, for tenants, as you were saying, there is different tenant profiles. There's people that feel okay with a B, c tenant. There's other people that don't feel okay, so you will go and look for B+, all those things you have to ask at the beginning so you can take the the right decision based on what is suitable for you. Yeah, it's not wrong or right, or it's what you feel comfortable working at. Uh, what is your risk tolerance, um, in terms of tenants? Uh, location, location is another one, right. There is people that is okay, like I don't, i't care, I don't mind, I'm okay dealing with that. As people Like I prefer an A++ neighborhood, right?
Speaker 3:And that is okay. It depends on your risk tolerance. Yeah, and also, for us, the partnerships, is leveraging the partnerships to accommodate the risk. To accommodate the risk, because as you have more experts, then you're reducing the risk as you get more, let's say, more people working on the deal.
Speaker 1:Yeah, the key important thing in that one is your team right. You want to work with the lawyer that is real estate focused, an accountant that is real estate focused? And if you ended up in a work with a lawyer that is real estate focused, an accountant that is real estate focused, and if you ended up in a situation with a problem that no one from your partners know, ask the question. Don't try to say like, oh, we're going to solve it. Ask the question.
Speaker 2:That's how we're surrounded of a community right To reduce the risk, to eliminate the risk, but you need to ask I like the fact that that, uh, you, in your risk management, you you don't consider only numbers but you consider, like you said, tenant profiles, neighborhoods of properties, because this is all part of of risk management. A lot of people say, okay, well, my, my spreadsheet uh gives me the the green light, but is it only a spreadsheet you should be looking at, or everything else to be successful in real estate? So I really enjoyed your explanation and your answer here.
Speaker 1:Yeah, numbers is our reason or heart, right? We always have to run the numbers conservatively, but that is more like black and white, right? So it is or doesn't work. Always have to run the numbers conservatively, but that is more like a black and white right.
Speaker 3:So like it is or doesn't work that's when it has to become creative, because, you know, sometimes we get so much into the numbers, but we we have to see other, other, other ways. It's it's not sometimes black and white, but we we are like that.
Speaker 1:Well, I mean, I mean I didn't, we didn't touch up much on that, because that's kind of her right, like that's for us, like yeah, it makes sense, it doesn't make sense I was thinking about.
Speaker 2:You know if, if, if you have, uh, let's say, for example, numbers, is is what you like to look at, but you establish a system where, okay, the numbers work, but then what's the next thing on our list that we have to look at before we make the decision? So you go down the list. If you build a system where you look at your tenant profile, is it in a good area or in the area that I feel comfortable with, risk management? So putting a system together is definitely something that you should do.
Speaker 1:Yeah, remember we walked a property one time. It was one of those properties that you run the numbers and, yeah, it works. And then you walk the property and you see the tenants and it's like, okay, it may work, but it's not the strategy. But because some of those is like, you can turn them as the tenants leave, and maybe there's people like I'm okay, the tenant leave in 10 years, I will turn over that unit in 10 years. But that's not what we're looking for, right, right, but that's that's the reason. You're like, okay, that's how. It's high risk for me. We're not going to consider that. We didn't know at the beginning.
Speaker 1:like the cash reserve, the cash reserve capex maintenance and repairs, things like that, that even we still own a single family home. We didn't know. Now we consider that, so we eliminated the risk even in a single family home.
Speaker 2:Well, valentina and leda, thank you so much for taking the time to speak with me today to share your knowledge and hopefully that our viewers can take a piece of that knowledge into their journey into real estate thank you so much.
Speaker 3:Thank you for having this space for us to share our experience it's my pleasure, we'll talk to you very soon again, I'm sure.
Speaker 1:Thank you.
Speaker 2:Mario.
Speaker 1:Yeah, for sure, and see you, thank you.
Speaker 2:Thanks for tuning in to the 5 Questions Podcast. If you enjoyed today's episode, don't forget to subscribe, like and hit the notification bell on our YouTube channel so you never miss an episode. Stay tuned for more insights and tips to transform your real estate and business game. See you next time.