The 5 Questions Podcast
Join us as we unlock real estate and business insights, one question at a time.
The 5 Questions Podcast
Real Estate Success: Growth, Due Diligence, Custom Contracts & Networking
In this episode of The 5 Questions Podcast, we’re joined by four seasoned real estate experts: Amy Kim, Shaneka Shaw Taylor, Catalina Martinez, and Patrick Francey. Together, they share invaluable insights on building success in real estate, starting with small investments and scaling strategically.
Discover why thorough due diligence is non-negotiable in partnerships and deals, the pitfalls of relying on cookie-cutter contracts, and how to stay ahead of economic trends and rate shifts. Plus, learn why networking is a cornerstone of any successful real estate journey.
Whether you’re a beginner or a seasoned investor, this episode is packed with practical advice and expert strategies to help you thrive in the ever-evolving world of real estate.
Am I using a strategy, you know, based on what's going on economically? That makes sense.
Speaker 2:Welcome to the 5 Questions Podcast, where we unlock real estate and business insights, one question at a time. We are here at the EXPAND conference Once again. I have another very special guest, amy Kim. Amy, thank you so much for answering, taking the time to answer some questions. But first I'd like to ask you I've been seeing you at a lot of conferences. Why do you take the time to come at conferences like expand? Why do you do that as a real estate investor?
Speaker 3:okay. There's a couple of reasons here that, first of all, I noticed with the current market, some cities in toronto or bc a lot of people are struggling finding a good projects to invest their money, because I understand that it used to be a really good market but now it's not performing as much as it used to be and now people are eager to find a good project. So I'm from Edmonton and Edmonton is the hottest market right now across Canada. We have so many good things happening and strong economy and a growth population as well population growth as well so there are many people coming in and I'm here. I would like to help people that we have so many good projects and we can actually help them grow their wealth faster. So, like, why not come here and then share the knowledge that I know and we can help each other right?
Speaker 2:I have so many good projects, but we need a raise funds for that too so you come here to share your knowledge, find potential partnerships, find maybe money partners, so you find that all in one spot at great conferences and it helps you in your real estate journey excellent, yeah, excellent, yes other question for you. I know you've been working on a big project right now 32 or 36 units 32 units.
Speaker 2:Yes, in edmonton and I'd like to for you maybe to explain to us or to me when you start a project, that of that amplitude, uh, land development, specifically, what kind of implication, what? What should a real estate person um, where, how do you start? Like, where do you start? Because this is big project? You're not buying a 32 unit apartment that's already built. You're, you're dividing land. You're, uh, you know, working with the city. Like, where do people start?
Speaker 3:great question. Yes, so I didn't uh, start building 32 unit from the beginning. So it has been been more than almost five years since I became a full-time investor and my first project was pretty humble. I started with one small bungalow, single family, and I renovated upstairs and downstairs. That's how it started. It was about $250,000. That was the price that I purchased, right?
Speaker 3:So, um, and then after that I learned something that I like about the project. But there's something that I didn't like about the project. And um, using the background as a it former, it professional, every time I love perfecting my projects and systems, so every time I learn something from the previous projects. And then I have been evolved through multiple years. So I start from one single family and then I did two upstairs and then the legal basement suite and I did more of this like two to two units, and then I did four of this like two to two units, and then I did four, and then I converted two to four and then converted another one, four to eight. So I've been evolved that way, right?
Speaker 2:So it's the snowball effect. You started smaller and then you upgraded, upgraded, upgraded, and now you're land developing 32 units. That's amazing.
Speaker 3:Yeah, that's how I got it there.
Speaker 2:Well, Amy, thank you so much for taking the time to answer some questions today and I really look forward to partying with you tonight at the gala yes, I'm so looking forward to it too thank you yeah, thank you so much, mario, and having me on your podcast.
Speaker 3:I've been watching your podcast and I love what you're doing and you have such a big heart and I always admire you. So, yeah, I would love to keep watching you how your business is growing and booming. Thank you so much. Let's grow together. Let's grow together, thank you.
Speaker 2:Awesome. Well, we are here today at the Expand Conference and our special guest today on the Five Questions podcast, shanika Shaw-Taylor, and she is a litigation lawyer specializing for real estate investors. Shanika, it's such a pleasure to have you on the show today. How do you think about Expand so far?
Speaker 4:Well, thanks for having me. I love coming to Expand. I've been coming for the last year and a half now. It's just really good to be in a room of like-minded people who are interested in real estate investing, who are in the trenches, and, yeah, it's good to be here.
Speaker 2:Absolutely so. You are a litigation lawyer specializing in real estate. Yes, I'd like to ask you maybe some free advice. You're not going to charge me right.
Speaker 4:Not going to charge you, but anything that I say, do not rely on it's just general information, not legal advice.
Speaker 2:All right. So you know people like to learn from other people's mistakes.
Speaker 4:Of course, what is, according to you, the number one mistake that people make when it comes to real estate and maybe to avoid going into litigation with other people, I'd say the number one mistake is not doing enough due diligence, relying on social media, relying on the facade that people have about how well they're doing and how well they have done, and not doing enough homework to see okay, what deals have they done, how successful has this person been, what mistakes have they made and what have they learned from those mistakes. So the definite number one is not doing enough due diligence on the people that you're partnering with, not doing enough due diligence on the deals that you're getting involved in and, if you are a passive investor, not doing enough due diligence on the exit strategy to getting your money back.
Speaker 2:Okay, so due diligence definitely a must. What about contracts? How much contracts or how many contracts should people have in place? Any at all, for that matter, should people have before they get into a deal with someone else.
Speaker 4:So it really depends on the type of transaction. So if we are talking about a joint venture partnership, for example, you certainly want to have a joint venture agreement in place, and please don't go on the Internet and pull precedents or samples of joint venture contracts, because not all contracts are the same and they're not all cookie cutter right. You really have to take it to a lawyer that specializes in real estate investment and talk about well, what are you trying to accomplish in this particular venture and are you covering all your bases for that particular contract? There may be things that you find online that are not relevant to your particular situation and there may be things that are important for you to have in your contract that you don't have Right. So it's really important to get the proper legal advice from a real estate focused investor lawyer to help you navigate and create the appropriate contract for you.
Speaker 2:You know that's some great advice. And where could people reach you if they want to work with you or have you look maybe at over their contract to make sure they're all in order? How can people reach you?
Speaker 4:So they can reach me by telephone, 416-628-9830, extension 100, or by email at shanika, at taylor litigationca. It's always best to just go to our website. That has all our contact information, and it's t-a-y, l-o-r-d, l-i-t-i-g-a, o-nca, so taylor litigationca shanika, thank you so much for taking your time to answer our questions today.
Speaker 2:It was a pleasure to have you and guys. Don't hesitate to reach out to Shanika, because we all need legal advice.
Speaker 4:Yes, you do. Thanks for having me, thank you.
Speaker 2:Well, we are here again with another guest at Expand, and I am here with Catalina. Catalina, it's so nice for you to take the time to answer some questions with us today.
Speaker 5:Thank you for having me. I'm excited to answer some questions and to be here with you.
Speaker 2:So you were telling me that you're starting in real estate.
Speaker 5:Yeah, so I started about a year ago. Okay, I started with a youth program so that we're doing real estate, and now I transferred to Wealth Genius and ever since I bought my first property and I've been learning it's just been two or three months since I bought my first property.
Speaker 2:Well, congratulations, Thank you. So first question for you what inspired you to start investing in real estate?
Speaker 5:Security.
Speaker 2:Security yeah, and freedom, can you elaborate a little bit? Yes.
Speaker 5:So I immigrated to Canada from Colombia when I was 16 years old, so I learned I had to work to make a living, and so I learned about how unstable it can be to just rely on a job. So to me investing makes sense, and to me what makes sense in investing was real estate. Because it's something you can feel it's there, you know it's there, you have your house, you have your property, and it's just a numbers game. More stable? Yeah, it's just a numbers game.
Speaker 2:More stable.
Speaker 5:Yeah, it's more stable.
Speaker 2:And so you said you bought your first property. What was your first property?
Speaker 5:My first property is a duplex.
Speaker 2:Okay.
Speaker 5:So I'm doing some renovations right now, getting to know contractors, screening tenants. So just starting small, just so I learn, and I've been doing some wholesaling on the side as well that's very nice yeah, my main market is Nova Scotia, so that's that's where I'm at right now that's good, and so you're.
Speaker 2:You have your first property, your duplex. You're getting to learn how to work with contractors. You're doing wholesale. That seems like not a beginner to me. You seem like you're starting to do a lot, so let me ask you what would be your next step. What do you foresee in the future that you'd like to do with real estate?
Speaker 5:I would like to keep wholesaling, because that's a great way to find off-market deals, even for myself, and I also like to expand. I'm here at expand, I gotta expand, right absolutely well, catalina.
Speaker 2:Thank you so much for answering some questions uh with us today and, uh, let's go back because there's a, there's a lot of noise back there, so I think there's something. Yeah, thank you so much. Thank you, well, another guest from the Five Questions podcast, but we are here at Xpand this weekend and I have the pleasure of speaking with Patrick Franci. Patrick, again, welcome to the show, but this time live in person.
Speaker 1:Live in person.
Speaker 2:We're here, so we're at Xpand learning about real estate, different strategies, different tricks from our lawyers, accountants we have the whole gang here. But you're an expert. You've been investing for over 40 years in real estate. Why do you think that going to these events is important in the journey as a real estate investor? Why should everybody come to these conferences?
Speaker 1:Well, I think the primary reason that these conferences are really good to attend and smart to attend is if you're an investor, you're always looking number one for contacts. You're looking to network, meet other individuals. But also, when you're having conversations, you pick up on those little nuances of perhaps some strategies, some tactics that somebody's using that you never thought to use. You know, for me, for example, I deliver what's going on economically and we look at the economic fundamentals of what drives real estate, and then you consider that when you're building your own model, if you will, so that when you're building your portfolio, you're asking yourself the right questions Am I cash flowing? Am I using a strategy based on what's going on economically? That makes sense?
Speaker 1:And so attending these conferences is really about expanding your network. There is that meme or that quote that your net worth is a reflection of your network, and when you start to get to know people, you expand, you build off a team, you have resources, you can ask others who have gone on the path before you, and then so this is an opportunity to actually meet, read body language, see people shake hands, do all the things that you do in these kinds of scenarios, but ultimately, it's really about expanding your network and also picking up all of the kind of nuances that you learn from other people. But of course, in an event like this, you're listening to some experts on stage.
Speaker 2:Oh, we got a lot of noise going back in the background. I think they're getting started to have another speaker on stage, but that's really good advice. Now I'd like to ask you because you're more on the technical side you analyze numbers what do you think of the new cuts that the government did this past week on the rates?
Speaker 1:On the interest rates. I mean we have to look at, say, well, why are they cutting rates? Of course, as a real estate investor, you go cool, finally. Maybe things will cash flow, things are great and that's true. But you have to consider, why is it that the Bank of Canada will lower interest rates and so originally they raised rates? Why? Because they wanted to get inflation under control. They wanted to actually slow the economy down.
Speaker 1:So, keep in mind, is the Bank of Canada can't actually control inflation. What they're controlling is spending which drives inflation. So it's a little subtle nuance, but these are the important understandings. So when you look at the Bank of Canada and they do a 50 basis point cut, that's a significant cut, and so it's because, when they look into the future, they're going this economy is slowing down a little too much, a little too fast, and so that would be considered an emergency cut. So for us as investors, we look at it, go great, some affordability, some cash flow, that's awesome. But we also have to consider that the economy is starting to slow down. We'll be at the effect of that as investors.
Speaker 2:Patrick, it's always a pleasure to talk with you and we're going to have a great weekend getting ready for the gala tonight. But thanks again for taking the time to answer some questions on our show today. Awesome Thanks for tuning into 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.