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Everything you want to know about Rent To Owns with Dale Monette


welcome back you guys I’m so excited
because today we’re talking about rent to own so if you are thinking of getting
in a rent to own if you want to invest in a rent to own today you’re gonna love
this show because I’ve got Dale Monette in the house and he has a chartered
accountant turned investor and we’re gonna be getting into all of those
details so stick around we’re gonna have a good time Welcome Dale, yeah thanks I’m really
excited I’m glad that you’re here so Dale you’ve made a big transition over
your career from being a chartered accountant to investor world tell us a
little bit about your background how did you even end up as an accountant in the
first place yeah that’s a good question so um my my father was actually a
CGA also accountant as well and like father like son like father like
son I guess apple doesn’t fall far from the tree right so um I grew up in
Saskatoon for the most part and actually my parents divorced when I was 4 or 5
years old kind of thing and so I know as my father’s had this is his second job
he’s had his entire life as working as a accountant for like a farm analyst for
the government of Saskatchewan yeah so he’s a very traditional type individual
you know the only item he’s really ever invested with is his pension but outside
of that to know is very extremely conservative type investing background
know very common accountant I would say okay very common accountant just like
you yeah right for the most for the most part um you know less the divorce
anyways I should say, minus the divorce yet no I’m happily married I got one child one on
the way so congratulations thank you do you want my birthday
actually yeah yeah yeah yeah so I mean I grew up with my mom for most of my life
and she had an interesting background cuz she never really actually women
worked for the most part but what’s really interesting about her like I
guess our story was although we didn’t have like we could quite a modest kind
of operating like not really any money but just she had tons of time so like
she would drive us to school every day she came on every field trip really
involved totally yeah like all the kids came to our house right so very involved
parents so we had all this like time you know every summer we would spend it like
with her at a cabin kind of idea it was very cool right but you know alpha
Gettys and crafts was our meal right yeah so but and what
I learned like later in my twenties was what really happened what was
interesting about her want like finances was that she got the house from the
divorce so really what happened was it no no like they were still being
mortgage like at that time however like you know we she would wait three years
and she would just sell it and this I ever appreciated market and then she’d
get you know some money and we’d wait another three years and she just settled
again and so now we’re lucky like got her through like almost years of time
right really cool kind of and I didn’t really learn all this till I was much older
right and mortgage rules were obviously different back them was really working as much now it’s like yeah yeah like I mean she
would like worked on a job with like selling party like candles kind of thing
has like a you know a solopreneur so she was actually a little bit
entrepreneurial which is cool yeah but anyway still it was wasn’t so I guess
bad go fast forwarding a little bit I started playing I was somewhat
competitive with sports but badminton all this a little bit but I started
playing badminton and I started getting pretty good at it
so when I was fifteen I was actually the youngest guy at the time to get
recruited to the National Bampton squad in Calgary so that’s a move me away from
Saskatoon to Calgary no so this is just me so I moved to Calgary myself
like a boarding school or something, no like I like I lived in like a town
house like apartment like a basement suite kind of thing at 15 yeah yeah and
so that’s like you know playing in a semi-professional or professional
sporting environment that’s where I became an entrepreneur for sure because
they teach things like dedication sacrifice teamwork commitment like these
skills that you don’t really learn outside of that type of environment
anyways right like business or sports in a sense right well it’s funny because I
was telling you before we got started here that as a dancing with a
professional dance company for nine years and whenever I have to do
something that I have to do again and again again keep trying at it I have my
dance director in my head because what he would say is repetition is the mother
of all skills you would again know it again do it again so it’s funny because
those other types of competitive environments really do push you yeah and
what’s interesting now is that we look at we’re going we’re checking out these
like schools from our son right so he turns 3 right away and I mean there’s
also I grew up in Saskatoon like there’s no private schools or even quasi private
schools in Saskatoon but there’s a lot of those options in Calgary and as my
network grew and as I aged like a lot of these people go to either I Montessori
school or just like a semi-private or something like that so anyways you start
looking at all sorts of public private semi-private schools for our boy and
what has been interesting will interview parents and will say you know did you go
to private school or not and sometimes the parents would go to private school
but their children wouldn’t and so to us we’re like well that’s interesting like
tell us why and we’ve heard it several times now that what they’re what they
believe makes someone successful in life is not whether they go to private or
public school or any of those things but whether or not they play some type of
competitive sports, interesting, yeah and so that’s been just recently like within
the last year have that kind of mindset of thinking why I you know didn’t come
from money but I like played you know professional sports and a lot of my
friends who were in the same similar position you know if they came from
money but they don’t didn’t play sports it always seems to be you know there
could you know they’re socially awkward or other as
things yeah it is very interesting to see that but they all say you know they
play sports that’s where they determine just hard work right
like typically just they will work hard at achieving a goal so I’m analyzing now
so I went to private school till the end of grade six and better part of
elementary school and then went to public school and for me like I school
was not easy I mean I was always smart but I struggled to focus so English is
not even my first educated language everyone in Israel so when I came here I
was a year behind and so what I loved when I went to public schools all of a
sudden there was so much more creativity and arts and wood working and computer
skills I didn’t have all that much in private school which is interesting but
we’ll see where you end up sending your son yeah yeah I know it’s uh you
had your entrepreneur training on the badminton court yes on the badminton
court exactly wow of all places so um so anyways I mean i trained let’s say in
that environment for like just over year around 18 months kind of idea yeah but
you know I’ve heard bus 4 hours pretty much a day to like get to and from
training and school so as time kind of went on I stopped going to school like
you know what I mean I went to school less and less just cuz I wanted to train
more and more and my social environment like I didn’t have a lot of like friends
really outside of badminton or anything yeah course I never went to school right
so I same is just like bernal factor happened I was so young to right that just
and most of people are from older just the environment didn’t fit for too long
so anyways that has stopped I moved back to Saskatoon and started my first
company just all of a sudden the entrepreneur ship inside me just like
kind of came out I was 17 no still in high school
yeah so the last the last day of grade 11 so I’ll back up so this is because
it’s this is probably actually an interesting part of how alike
the Entrepreneurship just like came out right so because I was you know the guy
that everyone always came to my house right because I mean Dale’s living on
his own or you know everyone wants to come to my place right but when you’re
you know living in an apartment there’s only so many people you can fit in a
room so me and my buds my high school buds at one point – said you know
let’s um let’s do something bigger like we want to do a bigger party as all we
wanted to do okay so we said okay we rented an event center and we so we paid about
a thousand dollars like rent this event center gets security hire a DJ
kind of thing yeah and we just went to all the high schools and sold tickets it
was like a – it was a DJ show a dance ok, is a high school dance okay we’re
sold a thousand person capacity so if thousand tickets at ten bucks a pop and
we paid a thousand dollars for expenses or like oh my god you know you’re in
high school we made nine grand and we spent it in 48 hours
iPods were brand new these Knicks and watches are in thing back then so we
spent that money faster then then we made it and and so we just kind of kept
doing like bigger shows kind of thing so we hired like classified was a guy I’m
not sure if you’ve heard of him we hired Howard him and and we she started hiring
like some musical acts and some comedy shows kind of thing and I so that’s how
I got started we just I’m gonna stick a risk you know I just had an idea and
just kind of no not you know what yeah you’re like well we would sell tickets
and like as we sold 100 tickets we kind of like we paid for things this isn’t
almost you know yeah so like I mean we’re in high school we’re just totally
slammed it you know wow yeah and so like do you think that was just in you like
it just kind of made sense or did you see that happening somehow no I think
like off the top of my mind probably almost like a leadership position what’s
in there you know what I mean and I mean don’t have like a I may be there
there’s a hierarchy in high school my name is you don’t feel like there’s just
a lot of camaraderie and out of my friends you know I don’t I guess I just
took the lead and was just like let’s just do it and we just all had each
other’s backs and just you know just wanted to do it but I just a team in
that too is what made it successful like we had you know one of my friends is
from another high school so that start to you know sell tickets in other areas
and stuff so Wow so how did that turn into the accountant in you yep so the
business failed okay so for help what’s this stat like I don’t know what
it is yeah I don’t know the number but there’s a lot of them yeah 80-20 rule is
probably pretty appropriate for that but yeah so anyways I out of high school I
was still doing this and so my first year of university I focused I’d
probably say 60% of my time on my business and 40% of my time on my
classes yeah so I had about a 40% average in my first year University
okay so I got put on academic probation actually of all things yeah, you’re a smart guy but this is the second time you sort have chosen other activities so so then that that following year when
I wasn’t in school I tried to really like go to the next level with this like
event promotion company but two shows in a row just turned out extremely bad and
lost all like kind of ran me dry so I was back at square zero right
this point when you I mean kind of Leaning after those were you still
spending all the money that you’re making out the shows are we good yeah no
I would still say that we were pretty just having a good time
no one’s best dressed you know yeah was Sean John and you know best dressed
g-unit t-shirt you could yeah so uh it’s a different time yeah so after yeah so
after those events weren’t working what was next was I just went back to University and so um yeah I’m not
really sure how I came to that decision but I had already had one year kind of
under my belt let’s say and just seemed like a natural Oh everyone’s doing it
kind of thinks I kind of defaulted to it almost in a sense school hard for you or
do you just get into all these other things you end up loving so much
like I would say high school I have like a very high IQ but my attention span
it’s tough to keep me engaged right so I whatever would act out but in high
school let’s say a lot or just like you know what I mean maybe others for
attention or just for whatever purpose it really was at the time right so um I
did like extremely well like high 90s kind of average but the teachers
definitely were not my friends you I mean are the principal was probably my
best friend but so you were back in school do you sort of goal to focus and
make it happen or where we get in university yeah so in university maybe
like I always at that point I started to know that there was something bigger but
the bigger things especially in the university environment seem to be what
you know are you gonna be an engineer or an accountant or a doctor like that’s
what the or a lawyer right there’s like this pinnacle of a job I guess right and
so they ingrained in you a lot so that sounds like yeah Chartered Accountant
let’s do it right that seemed like a really you like a great box to check and
you’re like yeah like let’s just do it right yeah so I yeah so I finished
University got recruited back to Calgary for to work with Ernst and Young and
which was awesome because great network you know it’s kind of like University
after University in a sense always very young you know recent grads can all
training and you know you really grind your teeth kind of idea so did that got
my CA designation actually I should back up so 2011 is when I got recruited
that’s when I graduated from University okay and this is when I started buying
real estate as well when I got back out to Calgary okay so this is where your
first real estate trends that’s a great story
yeah how did you get into that you know what was the mine and this was your with
your mom’s influence I guess you know what no so um so me and my wife I moved
to Calgary together and so the two of us bought this property together but the
way that we even had the opportunity to buy it which is fun unlucky slash funny
is I got a car accident and got an insurance payout of my car being in this
accident and that’s what gave me my down payment to pay for this house Wow
so that’s I mean kind of like out of luck got the down payment cuz I got
never had save no no no no no like I paid for all my like school everything
but no like we didn’t have a down payment we had some you know half of it
but the other half literally came from you guys were gonna live in there
correct yeah so about our first primary residence and then pretty much so myself
and another Chartered Accountant friend who is taking I was taking this master’s
program in conjunction while working at UI and so another one of these these CA
buddies of mine he was also starting to invest in real estate with his parents
like his parents in the financier she was on title kind of idea and so we were
just like well we’re the only two guys that we really know that own real estate
even at this age like for the most part so what was that like your early mid-20s
yeah it would have been 23 24 somewhere around there yeah 23 no it is common
especially today at 23 24 it’s really tough to buy your first property yeah I
don’t even think that any insurance claim would now be enough of a
downpayment right yeah no especially in the GTA yeah yeah sure so I’m yeah so the
two of us just kind of connected and we said yeah let’s buy some real estate
together so what we kind of did was we bought you know our first property
together and they were broke because we save you know we started getting it a
little bit of money and so we had enough for a down payment and so it’s very much
like a traditional investor like no have your day job after your taxes pay for
your life a little bit of money that you have leftovers start to save it until
you’ve got a down payment yeah so him and I like split a conventional
way exactly right so very like very slow like very methodical almost ready to get
you I got a primary residence by luck I guess
and then you know we mean this is my friend split the the downpayment of the
first property and then we’re broke and we saw her said well how are we gonna do
another one and was that one cash flow did you have a tenant yeah yeah so is
cash flowing we turn it into a rent to own eventually so we’ll get into that but yeah so oh so then we’ve decided we
tried to figure out how do we get our next one right because welcome excited
you’re making money every month but you’re like she what happened yeah and
it was a hundred and thirty thousand dollar down payment for six hundred and
sixty thousand dollar house somewhere in that range so I was like it was a lot of
money for especially for your first investment property right so we bought
in we’re like we’re broke so we said how do we get the next one so now we learned
we figured we were taught how to do the RSP mortgage strategy okay so did you go
to a seminar or how did you learn um well after I bought my primary
residence I started going to their called the fast-track group and so
they’re out of there used to be out of out of Edmonton but they’re just like a
real estate and business training kind of event or whatever this is you know so
right club kind of idea hold monthly or quarterly kind of shows and stuff yeah
and so I just I haven’t speakers topics exactly so then so John Simcoe I’m not
sure if you know him but he’s the president of the national rent to own
Association okay so he did the RSP strategy he was the one who started
teaching us about rent to own and all sorts of stuff right so we learned how
to do that so we did that I gave the money back to us we went on we bought
another one so basically I mean if somebody’s watching and they’re not as
familiar can you maybe explain what that might look like sure the RSP mortgage
strategy it’s absolutely one of my ultimate favorites sure sure yeah perfect yeah so
as a chartered accountant I have the luxury I guess or the knowledge of being
able to understand the mechanics behind how the RSP strategy works so
individuals who have any type of registered capital where that’s RSP tax-free savings accounts registered education savings plans risk
there’s all sorts of different types you can utilize those by having a
non-taxable event and placing them in a mortgage against real estate okay that sounded awesomely exciting and a little bit accounting what does that mean not taxable event so an
RSP are registered fund it’s really just a vehicle of earning income and not
paying taxes on it right so every single one of those kinds of accounts that you
just reference have a different type of tax benefit exactly yeah a tax free
savings account is a hundred percent tax free an RSP is really just tax deferred
until retirement or some life event regarding retirement there’s all sort
there’s several different types actually so but what the government has allowed
you to do is to utilize those in certain capacities whether you buy stocks or
mutual funds directly with them or you can buy real estate when with these we
can buy mortgages I guess but things like the most
that people knows you go into your bank your financial planner and they’re like
oh here are some mutual funds here’s some stocks maybe some bonds some GI C’s
whatever depending on your time horizon but what I find a lot of people don’t
know is that you can actually put that money in to mortgages or real estate
and that’s right sure so to a new investor you know let’s
assume someone has you know a hundred thousand we’ll use round numbers hundred
thousand dollars of RRSPs and you know traditionally they’ve made 6% let’s say
on their on their mutual funds kind of thing but maybe now they’re a little bit
worried about volatility in the stock market or there’s a lot of fluctuation
so that was actually if we rewind that was me right when I was working in the
corporate world banking job and you know I I joke around I have this financial
planner in that one every six months I’d go in and I sort of hoped that my mutual
funds and my portfolio went up and you know I thought I was kind of sappy but
there was still a bunch of like look right did it go down I mean every time
we look look at the historicals but you know sometimes some years I would do
better some years I would do worse but then I found real estate and you know
there’s an element of increased security and the rates were higher so yeah I was
definitely in that position so a lot of people know what that was like yeah yeah
exactly so yes so individuals like that yeah real estate yeah like you said it’s
your secured by real estate rather than being secured by paper so you have an
extra element of security and rates typically are higher I mean you can
invest in like REITs and certain public items that pay a little bit less yeah
but what you can do is invest with entrepreneur individuals like myself or
yourself who actually have access to direct deals let’s call them and you
don’t have the banks or the financial planners as these middlemen taking a cut
of that that rate and so we typically pay like you know up to 12% kind of idea
on like an RSP fund no fees right but it’s and it’s also static show actually
of all my real estate coaching this is there
I do the most of because people are like you know like me I’ve been in the
corporate world I you know every single month I put money in my RSP the
bank gave me a little bit of extra money to a match or my employer gave me money
to match and you know now I have these growing RSPs but you know when
they’re growing it 2% or 3% or one year six in the next year minus 2 it doesn’t
necessarily help you get to your retirement goals anytime soon totally
totally well in and it’s sometimes misleading to because those fees are
typically around 2% and so I’ve had clients who even if you actually lose
money like let’s say I have a friend who lost more than 30 percent in his
portfolio in 2008 and the financial planner still gets paid 2% yeah so it’s 2 percent on the balance is what they get
paid but yeah so and that’s just the way you know that the world has worked for a
long time in Canada we’re start talking
about like if I have money my RSP but you were on the reverse side of things
see you were the one boring money from other people’s RSPs
exactly so we would find the Limor’s of the world who want to make a higher
return right yeah we might have been down this path once or twice before but
yeah and then you know Limor or she wants to make let’s say 10% on RRSPs we have a
rent to own project where we’re getting you know rent from uh from a tenant and that
excess cash flow from that rent pays your interest 10% yeah kind of thing so
you provide the tip and money to us and we provide you in exchange for a return
but that money now that hundred thousand is secured against there that building
yes yeah so if let’s say home owners know goes bankrupt or something happens
in the interim then your securities that you actually have claim to the house so
you can sell the property after the fact and reclaim your principle or its
protected at least in that whereas in a stock let’s see if it goes down you
don’t have any claim except for against the company right it’s a general
security claim however if the company goes bankrupt you have no assets really
secured time I mean realistically if you buy a stock and it goes down like what
recourse do you really have exactly let’s be honest right you know we’ve all
got a little bit of money here and there so okay so you started leveraging
other people’s RSP which is an awesome way to grow your portfolio and it just
started going from there or yes don’t you still work in your day jobs still
work in the day job yeah but eventually at some point we you know I mean we at
this point have learned we actually purchased a course off of John Simcoe
like a rent-to-own course that he has he’s been doing rent to own for like 12
years kind of idea so he’s like an expert in the field and he’s the
president of care op I’ll get into that a bit I’m sure but so we started we were
doing rent to own at this point and in 20 so in 2014
Tyler and I my business partner got together and said you know you know in
other word like starting to make some money we we really want to do something
larger right and entrepreneurial really it’s not but we we knew that would be
backstop by real estate so it kind of looked at all sorts of things like buy and
hold rent to own or like small developments even or yes strategies
exactly really take their real estate strategy turn it more into a business is that what i’m hearing, yeah that was like our goal we wanted to create a company around real
estate as our was just the idea right yeah
so then so I one of my family members I call needs a mentor of mine and like
whatever a family member so we have Skype calls here every once in a while
but this one particular Skype call they founded skip the dishes so I’m not
sure if you’ve heard of them before but I could put his – yeah so they found it
skip the dishes and and so I would I turned him often for like advice and
mentorship but this one particular call in 2014 that we had he said you know
Dale if you’re gonna do anything in business you have to find out who’s
doing it the best and you have to just do it 10 times better than that, can we say that one more time. sure so
if you’re gonna do anything in business yeah you want to find out who’s doing it
the best and you want to make sure that you can implement systems and strategies
to do it ten times better than that yeah so that’s what they did was skip
the dishes and that was I began our philosophy of homeowners now or of just
real estate they got us still not path of thinking yeah so we looked at you
know buying hold I’m not gonna compete with Brookfield Properties or you know
this have publicly-traded you know
homebuilders i’m knocking then so we said okay well that’s probably not a way
that we could be like the best right so then we said okay well like even
development like you know what can’t compete with Brookfield again developing
the towers and don’t you know him bay and Adelaide kind of a bit well we look to
try to find out how could we be the best right and rent to own it act like when
we saw rent own at the time you know that there was no one doing nationwide
operations there’s a ton of negative publicity online there was no you know
Chartered Accountants with you know advisory boards all these systems that
were really doing it so we said well there is an opportunity here for us to
be like the best rental company ever so that’s how like that’s how we pursued
rent to own and so everything we’ve done with homeowners now has always been so
that’s how homeowners now was really born in court so let’s talk about rent to
own I mean I’ve got a bunch of them I know you’re doing them on a much bigger
a national scale let’s talk about what a rent to own is maybe first from a have a
program works what that means for somebody who wants to get into the
program and then what that means for an investor so can we break it all down you
bet you bet awesome so let’s go through the program overall had a heavy
structure a rent to own sure so there’s you know a hundred rent to own companies
out there probably a hundred and one ways to do rent to own so this is just
the way the homeowners now does it k our company so what we do is we use what’s
called a tenant first rent to own strategy which really means that we go out and we
market it in all the in all the different markets in Canada that we want to obtain
properties in you know usually the most of the the least risk of devaluation so
areas like you know interior British Columbia Golden Horseshoe Tonto you know
some of the areas in Alberta yeah yeah and that changes over time to like oh
yeah like and we used to advertise in Saskatchewan Saskatchewan market that
wasn’t doing so well so we stopped advertising and stopped taking on
clients there and we kind of you we can pick and choose markets as time
continues based on how we do our marketing so at any rate we do this
marketing we get about 300 applicants a month and what we do is we interview all
and we really dive down to the top like one or two percent so really where we’re
buying between two and six properties a month depending on the month but really
out of 300 applicants we’re just choosing like the top 1% really of
everyone we find and so when these folks are applying for rent to own they
basically want to rent the property for a duration of time until they can
purchase it themselves and you should exactly they have challenges with their
credit or they don’t have enough in the downpayment or there’s there’s some sort
of glitch in their ability to qualify now but you’re essentially screening
them to see if these are the kinds of folks who I’m assuming are dedicated and
willing and ready to do what it takes to own a home in the future yeah yeah like
we’re extremely selective and we take the all the risk in-house right so for
us we don’t want it we did we didn’t want to employ the model where we get
300 applicants a month and we want to sell 250 of them away for a fee and
offload the risk to our investors as an example yeah well we what we wanted to
create was well we’re gonna take on that risk right so we want to make sure that
we’re selecting just the strong absolute strongest applicants we can possibly
find exactly right yeah because I love that you’re taking the risk inside and
make yourself at home I know we’re getting warmed up yeah I know it is
again a little warning yeah so the applicant pool I mean you definitely I
love that you guys are taking the risk in-house right rather than putting the
risk risk on your investors right yeah so our applicant pool the way that that
really looks is this top 1% that we find across our portfolio includes
individuals that provide on average $16,000 of down payments yeah their
co-applicant income is a hundred and eighteen thousand dollars so these you
know they’re good income earners is a really big thing
when you think about rent-to-own programs that I know part of why they
might have gotten a bit of a bad rap in the past or other people is you know
anybody kind of gets shoved into the program but they’re not necessarily
being set up for success so when you’ve brought a six-figure income you know
between a couple together or two individuals who are buying the home
together like these are people who are really serious and oftentimes I mean
it’s like they didn’t pay their cellphone they didn’t pay their
credit-card bill something came up maybe there was a job
loss for short period of time and it’s impacted their their credit but these
are really about helping good qualified people who still with the crazy type
mortgage rules can’t qualify for a mortgage yeah yeah what’s very
interesting is our portfolio that’s $16,000 down payment is that’s where the
real issue comes that these people have usually like they got great income for
the most part they usually do have quite good credit but the real the largest
problem that we find is that this don’t have $30,000 of downpayment that’s
required to buy a home you know like their life savings is 16, 000 you
know and I mean even if you’re being financially fabulous and you know doing
the best that you can with your finances sometimes it’s a little bit hard to just
kind of push them and get a bit ahead yeah exactly so so we find these you
know and we interviewed we have a very strict interview process as well so a
lot of times the questions will even ask some is you know prove to us why we
should buy you a home and sometimes it takes them by surprise they’re like oh
like what do you mean like aren’t you like the bank she’s just buy it for me
right but a lot of times it’s a very common response you know because just
the way that we’re groomed right Canada wherever entitled to-ah own property
yep so we find that the families really that say you know I just I just don’t
want to move my kids away from their school again and like my landlord
wants to sell this house and you know becomes a very like all for the majority
of our clients they have this very emotional attachment to providing
security for their family is like a huge benefit or item of why they want to do
rent to own you know they got two or three kids usually and
program and just they don’t want to move them house every year you know or almost
every year the real estate markets really hot right for the last decades
and the other thing that you know I find with the folks that I do rent to owns
with now you know both caveat I do a small amount I have nowhere near system
in a business like you run nationally which is amazing that you
offer that but what I find is that with these tenant buyers or the folks who are
going through the rent-to-own program is they have the foresight to realize that
if they don’t buy a house and pay off the mortgage over 25 years retirements
not gonna really happen for them but never thought to say that you can’t
retire when you’re making 118 thousand dollars but you know when you hear all
those arguments out there but don’t buy a home you should rent instead
essentially those often say take all the money you would have been using to pay
your mortgage and invest it and aggressive investments which again does
the average person know how to do that right no way Jose right so you know for
a lot of these folks getting into the program is a chance like a financial
stable financially stable life for the rest of their lives
yeah yeah like unusually as Canadians single largest investment they’ll ever
make is owning a home but the trend is down like it’s the home ownership in
Canada is at the lowest level it’s been since 1959 and it still trends downward
with just debt accumulation appreciating property values millennial movement all
sorts of things right so no we feel like we’ve created this company from like I
do have a social background that I haven’t really talked about here but
like we do have a very big social purpose role we’re trying to do with
homeowners now and it’s gardening like that’s a big part of our success
– right so no it’s been it’s been an awesome like really amazing journey to
continue to grow homeowners now yeah so if somebody wants to be
tenant buyer and homeowners now where’s the best place for them to sort of
submit the application be one of your 300 yeah so if you’re interested in being a
tenant buyer our client with with homeowners now visit www.homeownersnow.ca
and yeah feel free to cruiser on our website we do have an application tab
and portal there tons of frequently asked questions so it should provide all
the answers that did any of you out there looking for I’ll make sure we link
it all down here below so it’s easier for you to grab it totally thought down
yeah now so homeowners now are meant to own programs where people go and choose
the home they want to rent for a few years and then own in the future would absolutely
not be possible without people on the other side which are the investors who
are helping to provide this service and also making some money on their money so
certainly well as you kind of mentioned the RSP mortgage strategy is something
that we utilize quite often and so maybe I’ll get back to that but the we do look
for individuals who have the ability to get mortgages and put 20% down payment
to purchase homes for these deserving clients that we find so so what we’ve
structured is it is quite a traditional still real estate strategy where we look
for individuals who have the ability to get mortgages with with the capital and
what we’ll typically do is pay a fee for getting the mortgage and then we’ll pay
up to 12% interest for the month so it’s kind of dual sided here so sometimes our
our investors actually just get the mortgage with no cash down which is a
really interesting literally infinite return strategy which is amazing
actually a good solid income but they’re not ready to buy a million dollar home
in the city yeah so yeah definitely just using those just using your mortgage
ability exactly it’s one place yep so it’s like a fee-for-service so will
usually pay between five and ten thousand dollars just as a fee for their
ability to get a mortgage and so that’s that’s that’s two ways let’s say you
know I can do the mortgage on 20% or you can just get the mortgage or you can
just do private lending as well so just providing the cash for
you know 12% kind of return and then the RSP you know the registered capital side
doing RSP mortgages as well so that’s kind of the four ways that we get
investors to become definitely post them below make sure I’m get that answer for
you because I know this is sort of a great introduction but I just want to
dive in there’s a lot more questions than totally people want to know which
is really really exciting so it’s homeowners now what you’re doing most of
your time what happened to the accounting background yeah still filing
taxes no stuff you know I still I embarrassed to say I
still haven’t even filed my own tax return I don’t file my own tax return
anymore but that just means that but I do file my tax I’m just yeah now I’m
really am focused on the growth of homeowners now as a big part of my
portfolio but no over the years meeting other you know real estate investors
like yourself and others I’ve had no the you know the good fortune of being able
to invest in multifamily apartment projects as well you know I’m growing
out us portfolio right now also and recently just purchased my first company
actually as well I’m actually gonna ask if you’re only in real estate or if
you’re I mean it sounds like you’re diversified in real estate both from a
strategy standpoint but also a graphic standpoint which is awesome but
I was gonna ask if you were participating in other types of
investing as well yeah so as I was mentioning I recently acquired or had an
acquisition of a company quite recently called
action coach so action coach is the world’s largest business coaching
company and they run under a franchise model and so in Canada they currently
have 15 franchises and so what we’ve technically purchased over these 15
franchises plus the rights to sell more franchises within the country and so
it’s it’s a royalty revenue model so traditionally my background has since
it’s so heavy in real estate is very asset rich cash poor whereas this your
have a portfolio it’s funny actually I was talking to somebody who was
telling me about their portfolio of 50 million dollars and they’ve got all
these multifamily units and you know it’s got all this value for the future
when they sell on well that’s amazing because most people don’t have that kind
of thing you know he was telling me he was like
but I need to do more than I need cash right now so it’s kind of its kind of
interesting and that you’re you’re balancing those two well yep so this
company is very cash heavy asset poor actually it’s like the exact opposite so
it is really neat to be able to have kind of both of those going off each
other but I mean up to date yeah like probably a similar story that you just
kind of mention with this other friend is like pretty much my story as well
what is cash flow like you do make cash flow off of real estate but the velocity
of that cash flow is just slow in a sense but on this on this business
acquisition the cash is the cash flow is higher so it’s a good it’s complement
each other yeah quite well here and there yeah like I do like to touch I try
to get involved in a few things I like shiny things for sure but yeah yeah
that’s a great a better that yeah but no you know I don’t understand the stock
market as much as us you know a lot of people do so it’s more rare for me to
get involved directly in a stock let’s say no most of my investing is I would
call it private investing or real estate investing and can I ask have you jumped into the crypto world I have I have
jumped into twice I wouldn’t say crypto world
yes yeah they went to zero both times okay well you know what they were not
financially successful they were a small investment but it they taught me a lot
because the Bitcoin world is interesting because I was sold on the fact that it’s
a Bitcoin investment and just because of that fact it should do awesome that’s
what I was sold on okay right so when I sat back and you
and I have had a conversation like this in the past where I sat back after the
fact I started to analyze other Bitcoin opportunities that came to me and said
well what are your operations how how are you strong like what because bitcoin
just means an alternative to cash is really what it is so I tried to from
that point onward I tried to find out what these Bitcoin investment
opportunities what’s the operations why will the company do you know what that’s
really funny and it makes perfect sense that that’s how you’re thinking about it
I think that’s all a lot of people think about it but fundamentally and we’re not
gonna get into the ins and outs of cryptocurrency right now but
fundamentally it’s such a different world that it’s like investing in
another currency so euro or you know the US dollar saying since we’re here in
Canada there’s nothing really behind those either it’s just that the
government says this is the legal tender that we’re using here in this country
yeah you know and so it’s funny because I’ve actually had many a conversation
around is it even considered an investment because if you’re here you
buy Canadian dollars you know your Canadian dollars you convert them to US
dollars the value goes up for the value goes down I mean we’re not talking about
forex trading where you’re hedging currencies against each other but it
isn’t necessarily an investment so you know I said we’re something I only bring
this up and again this is just another perspective is trying to look at a lot
of cryptocurrency and opportunities it’s harder because you don’t have those
business or real estate or operation fundamentals operating in the background
right and actually if I had just invested in the Bitcoin currency alone I
think I’ve caught like I would have made money but where my mistake let’s call it
was was that I actually invested in a company they utilized Bitcoin as the
medium of exchange and then the company one of them I’m sure think was fake I’m
sure was fake and the other one just like just didn’t pan out the way that they
anticipated it to and they were the company ran out of money so those are my
issues it wasn’t I direct like just got some Bitcoin and left it there to grow I
invested in these two companies that you I have to get Bitcoin to give them the company yeah that funding model and then
the companies run in there and that’s a alright thank you for being so
honest about saying you dabbled in it and you’ve lost some money because I
feel it all we hear all day long is you know Bitcoin millionaires 6,000 percent
return and so it was of a sexy story you know case in point a really smart
accountant and investor and it’s a it’s a totally different world so thank you
for being 100 percent really honest on that every appreciate it that’s very
cool so what’s what’s next for Dale what are the next kind of goals were you
heading next you know what that’s a great question yeah and definitely like
you know what I say this often now business tends to be the easy part the
rest of life tends to be the tough part so for me now I think yeah like you know
like raising kids like I said I got a second on the way you owe my birthday
right so you know when you’re when you have you know I’ve now four company’s
total so being able to manage 4 companies that comes with its own
challenges but it also takes a significant amount of time and resources
like in terms of others time like employees time and and money and all
sorts of things right so for me now especially with a second child being
born time is like more of a importance let’s call it and so being able to have
the right systems in place to manage those operations and go you know I’m
trying to work my way back to like you know 60-hour workweek 50 hour workweek
like start to digress the time a bit I do want to take 60 days off after our next child’s born and go to it’s like somewhere warm and just kind
of you know cocoon kind for 60 days so what happened to all 4 of those
businesses can you leave for 60 days yeah I can leave for 60 days I can
really do them from anywhere in the world like as long as having computer
for the most part I I’m good at phone I guess so
it shouldn’t be an issue but I wouldn’t have I wouldn’t doubt I’ll be on the
phone or answering emails here and there yeah so with a new little one on
the way and you’ve got you’ve got a little boy what kind of lesson about
money are you hoping to instill in that um I think actually right now because my son
he turns three in August so he’s still quite young so right now it’s not so
much about money but it’s about responsibility so you know like cleaning
you know if you’re doing something making sure you’re finishing what you’re
doing it’s like the the Badminton story it’s not so much about money but so much
about the other things about working hard to respect other things to learn so
that’s more of our focus now as time you know like he goes to daycare part time
so he’s really with like my wife part time as well yeah our family I should
say part time and so yeah so making sure you can teach these other lessons that
ultimately will lead up to a money discussion is you know I still read no
travel mentors and a couple other books to him he has no you know you might be
understands it a little bit more now but but those are just very those just for
fun you know he’s such a strong self-starter for understanding that like
real estate has incredible with tangible asset but not only doing it in the way
that so many people do but taking that business lands overlaying in rent to
owns where you really are helping families who are struggling you can’t
get into homes on their own so yeah I really want to acknowledge you for oh
thank you and you know I definitely want to make sure that folks if you are
interested in rent to own either on the investment side or on the rent to own
side they’re able to reach out to you where’s the best place again to to reach
out to you yeah you feel free to go to www.homeownersnow.ca we do have a 24 hour
1-800 number as well that’s one eight hundred nine nine two two four five zero
and either those those areas will be able to get you in touch with our
program perfect well thank you so much would be here thank you I learned
about you and kind of your roots and really interesting to really think that
sport may be a big part of the puzzle in terms of success and achievement in life

Stephen Childs

One Comment

  1. This was a wonderful interview with Limor Markman. I had a great time sharing my past and discussing strategies on how others can become involved in the growing rent-to-own industry. Please feel free to reach out to us at 1-800-992-2450 or visit us online at www.Homeowners-Now.com to learn more!

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