James Su is an investor with a lot of heart, a ton of smarts and a huge amount of guts. He started investing aggressively after quitting his corporate job as an engineer, began buying properties locally around the GTA, then started a chain of retail stores before finding his way into large U.S. properties. On this episode of The Your Life! Your Terms! Show, James share this story. The lessons, the mistakes, and the successes. Wait until you hear the price points he was able to buy properties at in Colorado and Ohio, it’s amazing. He is living proof that we can all live life on our own terms. You can find out more about James and what he’s up to at www.SLEquities.com.
Okay, you’re about to listen to a crazy podcast. This is Tom Karadza. And on this episode of The your life, your term show, we sit down with James Sue. Now this email has been in my inbox since at least January where we were trying to coordinate this chat and we never came together, mostly my fault. But we finally pulled it off. And James, who has been gracious enough to come and sit down here, he’s a longtime rock star inner circle member actually worked with Mike disarm on our team some time ago, actually, you’re going to hear his story. But the crazy part is wait till you hear how he quits his job. And then dives into real estate investing here in Canada, but then takes it really to the next level when he starts buying straight up malls. Like I’m talking about shopping malls in the US without really knowing what he’s doing. And that’s the best part like he did stick to the fundamentals. I mean, you know, he’s not, he’s not he definitely, he’s a smart guy. But I mean, he didn’t have experience, he probably didn’t have the full team around him. But that didn’t stop him. This guy has a lot of guts. And it takes us a little while to break into the exact details of what he started doing in the US, but wait to hear about how he started buying some of these properties and some of the returns and what he’s doing now. So just a great guy. We’re honored and grateful that he came in and sat down and shared his story with us feel grateful that he’s a rock star inner circle member. And listen, this is what makes the Rockstar inner circle membership. It’s so amazing. We have people like James Sue hanging out, sharing what they know. And when we all share between each other’s that’s what we’re trying to do here with this podcast, with the membership that we run with everything that we’re doing. It’s Canadians, helping other Canadians all to live life on our terms. So thank you, James, for sharing this information. Just a blast talking to you. I think my jaw literally dropped at one point in this podcast. And you’ll hear what I mean. And if you’re listening to this and you’re trying to figure out what is this membership, what is Rockstar inner circle all about you can go to Rockstar inner circle.com forward slash member and you can see all the benefits that you get as a rock star inner circle member that’s a rock star inner circle dot com forward slash member and you could check it all out for yourself and if you want to come to the one of the introduction, introductory training classes about real estate investing, that we hold here you can go to Canadian Real Estate training calm for that you can grab a seat, Jenny or Anthony from our team will call you reserve your seat confirm your seat with a with you give you all the details and so forth. That is a Canadian a real estate training.com and with that, let’s get on with the show. Are you ready to live life on your terms? Is it time to take charge? Real Estate,
business building the economy, health and nutrition and more. It’s the your life your term show
with Tom and Nick Arad’s.
Are you ready? Let’s go.
Okay, we are live. Yeah. 10 grams. So James. James, do I pronounce your last name? Sue? Yeah. James Sue. James Sue is here with us. He graciously battle the Toronto traffic for an hour and 20 minutes to be here with us. So we really thank you for doing that. And as a reward for doing this we have given James at a chocolate bar that you know what, that was like a Finnish guy that was some biohacking conference in Toronto. And he was sitting at this booth and all he had were these chocolate bars and it was like he was trying to save the planet Earth by saying we shouldn’t drink coffee because of all the garbage it creates just from the beans but but more so the cups and stuff, and that his preferred way to digest or consume caffeine was in this chocolate format. So each of these little bars apparently has the same caffeine is one espresso shot. Wow. So at least you know you could take water see how like it’s bitter and then you really so yeah, if you have that just get ready.
But it doesn’t it’s not like gonna not bitter though to me. Ya know, just like kind of like the bark here.
It’s hard to like, digest or something to swallow. Whatever,
swallow the sugar here. eight grams in this little thing.
You’re trying to kill me. Now. I’m not having wanna
know. Yeah, eight grams sugar. You can deal with that. She’s so sweet to balance a little bit. Yeah. So James, pull the mic. Always. Right. You need to hear your voice. So Thomas was ordering around. Yeah, yeah.
James, get the freaking mic and put it into your face. It’s close enough. Yeah, that’s perfect. That’s perfect. So James, tell us, you’re investing in the I don’t know, even where you’re investing in the States. In commercial real estate. Yeah.
Okay. What type of commercial real estate are you investing in the state? So when, particularly in retail, and it’s interesting that we decided to go into that route with among many other sectors, but it’s been it’s been one that we’ve been very comfortable in. And, you know, over the last six, seven years or so, about seven years now. You know,
we’ve been acquiring steadily and growing steadily. And so but you’re living
here in Toronto? Yeah. born here in Toronto. I know. So I you know,
I think most of us other than Alex probably first. Yeah. So firstly, I came when I was 12. from Taiwan and love Toronto. Raptors. Yeah, yeah,
totally. No, we were just telling you how come I’m totally not going to resign in Toronto. Listen, I love Hawaii. I think he’s like the freaking Savior. But he’s not going to resign because the population base in the US is 350. But it’s just how many of the what is this brand new balance? My son keeps laughing like that lady. She’s with a new balance. But how many new balance tracksuits and shoes is he gonna sell when he’s in the States? vs. vs. Oh, no. I’m pro Toronto. I wanted to resign but like dollars and cents, man, he’s gonna sign with LA or
you don’t want he’ll be the first like Star leaves Toronto and resigned somewhere else. And we cheer. Yeah.
Thank you for saving us and getting us to the finals.
No, but the fact that he saw a new balance, I feel like maybe there’s something to signing
new balances like not a big break.
Right? Or in terms of basketball anyway, I think that they didn’t really have any signature shoes. No,
before I sign them. So it kind of wears I kind of they kind of look a little funny their shoes, but But anyway, we still are big cowboy fans. So can you walk us through this you get here at a 12? Like, I’m just trying to map how you get to investing in the US. Can you tell us a video just the
US the US retail?
retail market but you’re living here in Toronto, like walk us through that you you come here when you’re 12 you go to school here? Yeah, I grew up in, in the Forest Hill area, in the apartment, on bath essence and close my old hood. And then we moved to North York, but I went to I went to high school in northern secondary and then I went to Waterloo for engineering undergrad and then was working in corporate I mean your parents proud. Yeah.
Waterloo engineer. Yeah, you scored all the marks on that one. Yeah,
it’s it’s funny, like the the population, the student population, the engineering, it’s, you know, it’s pretty, pretty lopsided. So you can
say whatever you want to say, James.
So you go to university engineering, you graduate with an engineering degree. Yeah.
What is engineering? The mechanical, mechanical engineering? Yeah. So I actually did most micro like 90% my club term in automotive. So that was the natural path rather graduate. I was I was I did, you know, I had terms in total Magnan, a couple of the other r&d firms. But there was a course that I took in fourth year that really changed my mind there was energy, energy conversion. And then so then after Of course, I decided go into nuclear. So I actually worked for s&c Loveland for three years at the Bruce power.
You’re a nuclear and you were a nuke? I
would Yeah. So yeah, so we sound smart. really sounds
like something I couldn’t do. It sounds
No, no, but we’re in the we’re in the manufacturing, not manufacturing, but the construction side. So we were managing, I was managing towards the end of my corporate career. I was managing construction bids for contractors, okay, on behalf of booze power, so that I did that gig for I was actually living up there commuting back and forth, on the weekends and stuff. So it’s like it was a pretty brutal Bruce powerplant is up in Concord and, okay. Lake Huron. Okay, got it all going to the side.
So okay, so then you Graduate University that you go into that as a full time job description was you working full time for a
lot of traveling and I moved on to a max and a Mac engineering. Okay. I was working for the SS Division, which is the new nuclear division that they required. And then, but But actually, so I think most of us probably all read the same book that got us started. I read Rich Dad, Poor Dad, before I graduated, and that was one of the books that kind of led me to all these pondering about what to do. Yeah,
what the heck am I yeah, oh, my gosh, I’m in the wrong quadrant. I’m a freaking employee. My life sucks. What did I do? Yeah, absolutely. And that really how many people can blame where they’re like, Dad? I fucking I don’t mean blame. I obviously mean thing. Right? Yeah. Cool. Yeah.
So then, because I read that and there was a stretch when I was working in NSF, sorry. s&c level and I was just the, I guess, being, you know, fresh grad. And they really give you very limited responsibilities. So I was left to like, you know, browse for so long. Internet, you know, back in like, oh, seven. Yeah,
Especially like it was slow. Even in corporate it was slower. So I was like, Man, this is not.
I remember one of my buddies around that era era, sent me an email once. And he said, I’ve read the entire internet, it’s over. And he was in a corporate job. We just have like, endless hours to do nothing at one of those jobs. And he’s like, I literally read the entire internet. I have nothing further to read
those. It seems
like, man, I can’t go on and do this. So that I elected because I actually was based out of upper upper middle, which is just up the street. Oh, right. Yeah. Yeah,
I was commuting and and and then I decided to go out to Bruce because it was more exciting. But during that time, I actually got exposed to the at the time they ran the Rich Dad Poor Dad. seminar. Okay. Yeah. So then I sign up to that first, they get you in that two day free. And then it’s like three day for one. Was that still 2007? 2008? Yeah,
absolutely. Yeah. And then so then I finished the two days on I did the three days and then
see Nick and I both went to those things. Before it was the rich dad we went in the earlier 2000s when it was different names that were doing the same kind of thing. He had to be a real estate millionaire overnight, the
business model was different because they still up sold, I don’t think they have sold as much but the upfront initial cost was much higher than they changed the business model to the upfront costs lower and have more courses of the absorbed throughout the thing. Yeah. Which was an interesting transition time to see it the change it because when we went the initial weekend thing, I think it was like four or 5000 bucks. Right? So like, wow, yeah, right. And then it went down to like, 15, you went to that? 15,000. But yeah, I think it’s 500 a lot of those guys what they do now is the initial and then they sell it that thing smart,
though, because it was such a big leap to get people to spend four or 5000. Yeah, people spend
500 bucks if they’re partially committed, right? Yeah.
Anyway, okay. So you so like us, you went to these different dance,
and then you know, on the on the third. So after you pay, I think it was like a three day seminar. They really get you it’s like, if you want to make changes to your life right now. Sign up to this coaching session segment or whatever. And that was like 3032 grand
smokes back then now. Yeah,
it’s like, you can take like a four course bundle with coaching. And now at pretty sure it was like 30 60,000 Yeah,
I will put my credit card. I didn’t have the right. So then that series, so you know, drag one of my buddy in. And I guess the rest is history. Wow.
That seems to work out. So you take this course. Yeah.
So so the first couple bundle was you know, one of them was rent own. So I took that and I went out and I did there are a few there are like four or five in the GTA action that GTA Kitchener very awesome. And, you know, I it’s interesting, because when they met the same people that took the course with me on following sessions, and I was like, oh, if you guys you know, have you guys gone out? And how did how did it work out for you guys? And a lot of I think a lot of them probably just did nothing. Nothing. Yeah, that’s the norm. Yeah. And I you know, like the first deal I did, I was zero money down. I had a desperate family, they wanted a place to live. And so they put up a I think 25,000 my down payment was only like 15. So I went out and I actually put it put it got it to work and and I was like, you know the stuff works. Right. So then and then after I think I did some creative financing course and then believe that’s when I when I got got a hold of you guys
that long ago. Yeah.
So I was actually part of the original.
Oh, yeah. Yeah.
called an income for life. Yeah, yeah. Yeah. Yeah.
So it was I think one of the your life. I think the membership back then was maybe like 100 people. Oh, yeah. Yeah. So I mean, kudos. You guys. This is phenomenal. You guys done this thing has to? Yeah, so. So I actually, I didn’t want to deal with Mike. in Kitchener. That was like,
oh, nine or 10? Oh, I didn’t even know. Yeah, yeah. So.
Because why? Rich Dad, they have that. At the time. They have a inaugural event in Florida. Okay.
That they it’s like a platform with bunch of like, other other traders, or whatever. Then I ran into a gentleman named Scott shield. He was pitching his commercial Academy program. So, you know, same thing I just like, Oh, you know, this is exciting. I, I could probably do this. Having done like, a few deals at that point. This is you’re still working in the corporate? Yeah, yeah. Okay. Yeah. So I did that. And that’s pretty much actually what got me started understanding the numbers understanding what I needed to do in terms of getting, you know, do leads and what demographics all that. So he got started in the US
into into the commercial side of it, because he teaches he teaches retail multifactor Okay,
so commercial isn’t like a commercial in like, a retail office retail. Yeah. Okay. Yeah.
So that’s, that’s pretty much how I got my foot in the door. But I didn’t actually do anything. Um, I was in corporate was pretty busy at the time I moved positions. Towards the end, I was managing a pretty large scope of projects. I’ve been police power, so I got really busy and then I had a business opportunity. So I, I left corporate to to to take on that role. I had some partners that were doing commodity
commodity training, I was we were buying gold from like, general public. Oh, Tom, but
it is not physical gold, and it’s just paper gold.
Oh, yeah. Gotcha. We
find my challenge. I like my
buying gold from the general public. Yeah. So you know,
just wholesaling it back to the refineries. Got it. Yeah. So we actually set up shop in Southern California. I its type, but you know, make it work. You set up in Southern
California, we had stores and Vancouver, Toronto. eSports. You guys have that point in five or 666?
Or so how many? How many you guys running the business?
was two of us. Two of you, too? Yeah. Yeah.
So what happened that business you ran for a few years,
and I ran for four years. And then I actually sold it to another partner. Because I, I just, maybe it’s because of the engineering background, like I didn’t, I wasn’t enjoying stuff that you can scale. And that was very intensive. Like, when I was back home, back in Toronto, guys, including shop and nine, they gotta call me You gotta you know, check all the sales numbers and all that stuff. And by the time I finished, it’s like, one o’clock, two o’clock in the morning. It’s and then it like it was it was pretty draining for four to three years. So then I just, I think I went back to one of the seminars that Scott was holding, because he also probably he holds him twice, three times a year. I went back, I think it was like 2012 2013. And I was like,
man, I don’t like I gotta I gotta focus on this part of the
so what did you do? Then you bought your first commercial real estate in the States? Yeah.
So actually, we were testing the sort of the idea of, of, you know, kind of the test pilot, so I was pitched a deal. A Self Storage Facility in Sacramento. This is how you pitch the deal. Just networking. Okay. Yeah. So like one of the events. Actually, I won’t segue into that. It’s guys heard of JT Foxx.
I feel like I’ve heard of that. Sounds familiar? Yeah. Another say no,
it was other coaching. Forget, okay, sign up. And I spent like $10,000, and it was like,
you made some real investments and coaching programs. But it seems
you know, I’m the, I think the great The unfortunate thing about me is every even even as much as ridiculous as the cost, I was able to benefit from
that. Well, you do. You’re obviously someone that does something like there’s people that get caught up in and just the learning and they never end up doing anything with it. You started doing stuff with it from very, from the very beginning with the rental property kitchen. Right? So yeah, so there’s something to be said for that. For sure. I don’t know how fortunate you kind of put your boots on the ground and you got busy, right.
So so you get pitched this thing in Sacramento self storage unit.
And no, I had no idea what at least tell me you just bought this thing. We you know,
timing was on our side, because we just came out of the recession. So it was like an ex Kmart that was converted into fully climate eyes how story system then we got into like, 2 million something. When you say we family member at the time, I had to convince some family of course. Yes,
sir. Yeah. Start small. You just like jumped in front. So you’re living in Toronto, and like one of your first purchases outside of the country is in California and a self storage unit from a converted
Katie. Boy, I don’t like people I don’t even know. And I yeah, Tommy a lot. Actually. You know, I was
I was involved in the in the business side of things, because they they sure you were involved in every side of things. But yeah,
the owner was. So we were silent partners. And like, we learned basically what not how not to treat your investors. Like the the the operating agreement was so lopsided that we had no rights whatsoever. And you know, that was so you
were buying like a shares? Yeah.
into this new JV. Okay, into this, this failing self storage that was, who was
operating it. Like, who was running it? Who had the management control of this? It was the, the,
the partner, the main, the main, the major shareholder? Yeah, like 50%. So we were the only
nice all these real estate investors together took money from everyone. So I’m going to manage you guys are silent partner.
That’s right. Gotcha. So it was like a, that was like the first like JV one on one, like what not to do. And we actually. So So the reason why I think thought that was
it worked in the sense that the, in terms of
how the, how the performance of the product really reflects the valuation really is reflected on on the performance of the of the asset and, and so when we bought in, it was like 20% occupied, and it was generally negative cash flow, but we just saw the heart real estate, it was like, in a dense, suburban Sacramento was probably three 400,000 people in the five mile radius, you know, middle, middle, low, low middle income, 6060 ish, thousand average annual average household income at the time. And we just felt like I at least my intuition told me that, you know, this is a management issue. Like the reason why it’s not doing well. So anyway, so that they we put into, we hired a new management team, like, super, and he did. Brilliant, like within eight months, he got up to 97%
occupancy, why is this a bad investment? You said you learned learned a lesson because you’re solid partner, and everything sounds
good. So up in this point, you’re like, Oh, great, you know, like, Where are we going? When are we going to get the dividends or the the preferred returns and stuff? And it didn’t, didn’t? Didn’t come out? magically? Yeah. It’s like, oh, there’s like expenses here. expenses, there’s leakage everywhere. And I was like, This is not right. So then I talked to the, you know, because we hadn’t been involved with the operation. I was like, so they’re telling us like, they’re sending basically, you’re sending us to two different sets of numbers, like the the financials, your centers, is different from what the actual property was the stocks the facility was generating. So I was able to found that out by talking to the Operations Manager.
And whenever you hear there’s two sets of number. Yeah, that’s right. Yeah.
He’s like, Oh, yeah, the guy is driving a brand new Mercedes. And we’re like, Well, okay. I mean, he’s got other ventures and stuff. But anyway, so we I ended up having to expose him of this and then I had to hire
pretty expensive legal. Holy smokes, man. You’ve been through a lot. Okay. Yeah.
So we we forced the sale. Like, I had a lot of the transcripts, pretty much assembled a log of all the all the things that transpired and the engineer sat side of
you kicked in, I’m sure, yeah.
Evidence gather and then we yours the sale,
but you were in a majority. I know. So. So you rallied the other silent investors to get on
notice. The all the solidness was signed the same contract window. Right. But he had committed for pretty much okay, stronger proving that he can Yeah, and that was that was the major pain point for him. So then he was like, you know, what, just, we’ll just solid, then. So I think we, I think we made like 80% in 18 months or so. And it was like, that was kind of the force first for it for
not just me. Yeah. 18 months, you went through a lot. I mean, the returns go to but I just mean, there was a lot of learning going on in a year and a half right.
Now you’re not in the corporate world. You had started that gold business, you’re out of that business. This is a full time endeavor for you at this point. Yeah.
Okay. So then we
got into through the brokers contacts that we made, we got into, like a 92,000 square feet shopping center in Denver. And it was kind of evaluated,
started a rent to own to Kitchener at 2000 square foot shopping center in Denver.
Yes, it was a pretty big jump.
Please. Okay. Sorry. I cut you off. Yeah. describe this one.
So it’s, it’s, you know, so part of the, the, I guess, the fundamental that Scott was focusing on, and the teaching that really appreciative of, of what he’s brought to thousands, is that you are focused on the fundamentals. Right. Retail. I know, there’s a lot of, like, retail, the dying, you know, stuff. Yeah, the retail apocalypse.
So and it’s not, it’s, it’s couldn’t be further from the truth. Like, I think they’re projecting another 6000, store, up 10,000 store closing by end of this year, and then another 6020, 20, but retail is evolving. It’s not, it’s actually not, in my opinion, it’s not dying, it’s evolving. Because it everything we touch, like, experience and feel food, entertainment, that’s all retail, right? So it’s just a matter of being re adapted to higher and better use, and certain locations, you know, you could convert them into higher, like apartment, or whatever, if there’s enough density. So. So one of the key factors keep matrix that we looked at as demographics. And so in our experience, anyway, retail always follows job growth. And, and those are his nominees. So we will tend to follow, we tend to look into areas that have tremendous job growth, and they kind of went through a huge boom, after, you know, 2012 2013.
So that’s kind of what and then
Is this a group of investors who purchase the shopping mall, or you yourself? So I,
I started raising capital, through family friends, and now it’s a lot of a lot of times just referral based. Awesome, very good faith. So again, it’s been very fortunately, we, we try to be as honest as possible. A lot of that’s good. Hey,
sometimes we just, you know, be full of crap. You know,
we don’t we tell you how to like, investing the risk, right? So
make your own judgment. We’re not we’re not here to push make ourselves. And then
how did you do that? As a Canadian, you set up a corporate, you just opened up a corporation in Colorado, to buy Oh, yeah, that’s another
multiple US corporations that need to be set
up. So at this point, we had it. So that’s another like. Yeah,
give me like a highlight. Yeah.
So it’s early operation. earlier days. We were dealing with a lot of lot more us Intel. And they they don’t know anything about Canadian, the CRA requirements, nothing. So they tell you this, you can set up an LLC, it’s easy. And then you come out here, you’re like, Oh, so we ran into some of that earlier on. And so in high level, I think the best, the best best way to strategize is just do a limited partnership. And then you have a blocker Limited Partnership up in Canada, where the Canadian go in so that you don’t have you’re not obligated to file you have to file that that Canadian limited partnership to file us taxes, but not the partners within that.
Got it. Okay. Yeah. So that because we are getting above my pay grade, but I got it. I think I have I haven’t.
Okay. Yeah, it’s actually really simple structure is just a we, we we went we ended up going with law firm, down downtown. Aaron Bullis. One of the partners.
One of the partners, Barbara, she specialized in cross border.
Okay, so they were able to do, yeah, awesome. You need that type of expertise. No kidding. Yeah,
that’s a very vibrant you do but
so then you’re operating? Do you still own this? shopping? Yeah.
So we actually, we still own it.
It’s, we so we done a bunch of work to it. There was a car flying down there coordinating contractors, you or you hire somebody to manage this thing down there. So we have super, we have a really strong project management team that takes care of all the day to day stuff. So we asked him manage, we don’t run the
dog. Okay, how did you find the property management, the strong property management team?
Through actually this was through referral again,
we had another broker that you
know, knows, because I
know, we, we work with pretty, pretty big groups of brokers, Marcus Millichap and within sort of the West Coast branch, and they kind of talk in talking to them, they have been experienced, they have great experience with this particular company that we ended up signing on to and they they I think, today, they manage over to
10 million square feet of retail and office on that
was a big score for you to get the right property managers in there.
It’s a huge bonus for us because we because they’re pretty much all the states west of the Mississippi. So now we’re looking at areas that they’re already in because we can leverage their expertise. Okay, so sorry, before
we get there on this on this mall, why did attract you to the mall? You said the demographics of the area? were obviously good was the mall and opportunity. Like was it not fully occupied at the time? Yeah. So so it was it?
Was it a good buy? Or was it just like, it looks like it’s it has a good return?
It was at the time, it was a pretty good it was a solid buy in, in the sense that it had the right sort of core.
The the flagship tenants, and
No, it didn’t. And that’s where the you know, some of the opportunities we saw in what we can do to kind of upgrade and transition from the tenants that are more mom and pop into more of these credit National Credit tenants. But we what we saw was sort of, it’s Ralph the freeway, it’s pretty dense. They had like a five mile population, like almost 180,000 average household income around that 60s. So you know, it’s the right mix. It’s on. It’s literally two minutes away from the highway. So the why was it being sold? The owner, he is he’s downsizing. He I believe at the time he had over 100 it’s just this old. This is casual. Yeah, like he’s been used. He He’s been buying since the 80s. He went through like two recessions. And he picked this one up super cheap. It was like a note sale. I think he picked it up for 2 million. And we I think we bought it for like 8.6. And he’d been cash flowing for like 12 years. He had this for quite a long time. So he was
I think we’re selling some of the less strong assets that he had in here before looking crazy man in the best possible way. Like, you take these courses, you buy some properties appear you do creative financing, dual deals, then you you find Mike on our team, you do some rent to own stuff, then there’s some public storage unit that you have to take the freakin guy to court because all the money’s going to his new Mercedes or whatever it’s going, then you go to Colorado. And the best I can tell from listening to you is you just found them all. That seemed okay. And you raised money. And you probably bought it with the complete wrong corporate structure from what I’m also gathering. And then you figured out the corporate structure over many years, and it got better, right. And it was like you You kind of lucked into thank goodness for a good property management that has been managing this thing. And now you’re freaking expert in this stuff. I mean, you’re an expert, because you’ve made all these mistakes along the way. And I don’t mean any mistakes. I just mean, you’ve made all these
all everything is learning.
Big pretty quick. You know, like most people are like, I don’t know, if I’m gonna be buying a mall in my lifetime. You bought a mall. I was like, okay, the gold stores didn’t really work out. I’m just going to this real estate. But so good for you.
Lucky didn’t lose all the family money that you raised? That’d be a problem. I know. Yeah.
So there’s a lot of there’s a lot of sense.
Your Vietnamese background? No? Chinese? How many Chinese? Taiwanese? Sorry. Yeah, that’s good that you didn’t? You took good good care of the family’s money. Now? Are you the principal? Like do you? Are you the person who’s like managing this stuff? or right, you and someone else? Like you have a partner that’s equal to you? Yeah. So I, you know,
I think throughout the entire process, I had multiple partners and thankful for you know, the contribution each and every one of them made different process and in different stage. And so I think the the this with the commercial real estate, I have one partner, my buddy a meal that we actually went to school together, and we didn’t really
he, I thought he was a corporate guy. And it wasn’t until he called me He’s like, another engineer. Yeah,
so he was working in a conversation. Just imagine this question. It
used to be his fresh.
Start talking about formulas in a spreadsheet, I just immediately check out
his, I’m very, very fortunate. He, he’s an operations guy. So he’s pure, you know, he takes care of all the numbers. So my, my responsibility is, you know, I go in and find I’m responsible for all the acquisitions. And, and, and raising the capital. And he takes you have all the awesome, good for you.
So it’s all the acquisition. So there’s more. So the story continues. Do you go and buy more? Yeah,
so that was the first that was like the first. So we, we,
I think, small you bought? Yeah.
So where does it? Where does it go next? So then we picked up a bank owned Plaza in Ohio. How’d you find that one? Through brokers again? Yeah, the newer brokers and, and then this one was, like, 40% vacant when we bought it, but had again, you know, we looked at the the fundamentals. And I think one of the key thing, at least my experience, if you stick to the fundamentals, and especially location, especially for retail, like you know, there’s certain things that we kind of was shocking to is like, the the in particular in smaller suburban areas. There is a breakfast side and there’s like a dinner side so then you’ll find all the you know, Starbucks Tim Hortons on the breakfast side and and all the all the fast food, diners on or dinner sit down play
ball or in Australia on the like the side, that’s
right hand side of the freeway, the easiest and make a right hand turn, that’s the breakfast side, like going to work towards the towards work smarter get so much same, right. So but I mean, in a denser area like Toronto and GTA we’re going to have over Yeah, it’s all over. Because
it’s whatever you can get access to. Right, right. Yeah.
So then. So you know, sticking to the end again, appreciate of all the change the proper training, like what you guys are putting out is fantastic. Because people need to have a foundation of what you know how to look at numbers and how to how to how to qualify deals.
You only get there after losing money and making bets. But so the fundamentals of this one,
we’re in Ohio, did you say it was or this was a suburb of Cleveland, it’s called
so like, and but you liked the fundamentals there because it was hot, close to a highway close to a highway,
major artillery road on a major retail trade corridor. income was
like 120,000 was like the higher end
clean. It was near a lot of the law for that
area. So someone was Cleveland to have that. Yeah. What what what sort of possible, you know, a handful of suburbs. Avon, it’s always the West West. Yeah,
Westside. It’s actually, when we first got there, we’re doing a site tour. We’re like, there was like Toronto, there’s like,
that’s a nice income that.
I just know it’s on the west. It’s the main highway
99 signs are when
you get off and you’re like, well, there’s all these import cars. And you know, usually in the states like sex, especially in the markets.
When I’m driving, like, when we’re in the Ohio area, and I have a BMW, they’re like, Look, he’s like, Look, you have to only be a movie in the parking lot. Yeah,
cuz runtime Actually, we gave blood and it wasn’t actually in Pennsylvania, Ohio,
we gave one to get our blood tested. Randomly stop stopping give blood and
we ended up we ended up getting our blood tested because they had some better companies. There was better can now I think it was wellness. I know. Yeah, I know.
I still go to travel. I do it there because it’s all nice on a nice portal and stuff. Right?
So we made an appointment in one of the blood labs and we stopped in the middle of nowhere, Pennsylvania, and we’re driving through this. It’s actually a really nice, small community. But everyone was staring at Nick’s car. I said, Why is everyone just staring at us? Nick? I think it’s the only BMW.
Brand new spanking clean BMW like Dude, I think it’s the car.
Was this guy. Why is he driving that car?
Like you’re such a freakin show off by American? Yeah,
no. And you see me I’m toward quite a lot of these secondary and tertiary markets. And certainly, you stand out if you have a important
being from Toronto as a diverse and like, I cannot believe how many jams and forwards and Chrysler’s there are in this game? Yeah, yeah. No, it’s impressive how like, true. They are two American made cars. But okay, so you see a lot of upper income. And this during the site tour you like what you see?
Yes, it’s just very comfortable. It’s like, again, I mean, we Paul, we don’t invest in areas that we won’t become we ourselves are uncomfortable bringing our families. And so this particular one, we just, you know, everything was right. So then we’re like, you know, what, I think the we thought the funnel was there. And I think within eight months, we filled it 200%.
Wow. And another good property manager, I guess?
No, like this one. This one. Most of work was done by us.
When you’re buying these things. I’m curious, like, if someone’s selling at a 40% vacancy, they’re likely not selling it based strictly off the income numbers of 40% vacancy, because they’re probably like, you know, with the you know, there’s some upside, right I or are they? Because it because if you are taking it as an asset like that, from 40% to 80%, with the income that changes the value change in these assets that you’re creating there, depending on what you’re buying. Its enormous.
That’s why my eyes lit up. Yeah, no kidding. So so one of the one of the challenges that we had
was, Scott, always talk about investing your backyard and we’re like, oh, man, we can do this. So we spent two years spinning our wheels trying to find retail in Yeah. Yeah,
so like we
some of the some of the things we’ve done, like we locked up a piece of land in Kingston, which is kind of your your secondary market and ensure Terry, all right, and, you know, Kingston’s got a population of like steady 100,000. So we locked up this piece of land that’s right next to a regional mall. And we call calls like over 150 National Credit tenants to see if they have any expansion plan out to Kingston rejecting all. So we held on to this for like, two, three months, we do all his work and just couldn’t get in bite. And then we did it again in Bentonville was this time is much closer to Toronto, and same thing like we can’t we went back to the list of like, 150. And they’re like, Oh, yeah, you know, the site. Again, I mean, bondo has gone much, this was like six years ago. So bone has gone much faster now. But the site was just behind the busiest Tim Hortons out there. And right across the street from Dairy Queen in the circle of life circle of like, all these dealerships and hospitality, and hotels,
no one was on,
ya know, and it’s still I mean, I think today, it’s still still a vacant lot. So it’s just the their focus on their, their focus in the GTA. But outside of that, it’s pretty weird. It’s
always been that way in Canada, a little more conservative as well.
So but in the States, you finding the opposite? Yeah.
So that that’s when we were like kind of forced to go out because ours are hurdle rate, you know, we, we, we, we try to generate anywhere between 12 to 15% per annum for investors. And with that kind of requirements, you really just, you get squeezed out if you’re in the core in the GTA. And if you go into secondary market, the population growth doesn’t doesn’t drive enough retail demand, because a lot of the chains don’t want to come in because they’re saturated for whatever, you know, what, what they have currently there.
So this one in Cleve on the west side of Cleveland, you just what? You cold called some Oh, how did you feel them? The the small,
so we we work with the leasing broker? And we actually, it was questionable why we retain him? Because he was he worked for the bank that we bought the property from.
Okay. So he obviously wasn’t really good at this. Yeah.
And but the some of the things that kind of the hints that we picked up the pieces that we picked up from, from the from the bank and talking to him was like, you know, banks don’t banks don’t like to spend money. So, with retail tenants, you have to give them incentive inducements improvements, to get them to come in. I mean, you guys probably know all that stuff. Right? So and banks don’t want to spend money, right. So a lot of times and they don’t fix stuff. So first thing we go in, you know, we paint the whole facade,
the banks are always just like, like, take it or leave it. That’s a good, you know, here’s, here’s the schedule of a schedule that says, We have nothing to do with anything, and it’s all on you. Right, absolutely. And so
we saw the opportunity, we basically, you know, come in repaved the parking lot, we did the frontage sign a certain that the monument sign. So make it all nice and pretty. redid the landscaping. So it’s got a lot of curb appeal. So just show really well. And I think that at your real estate stuff. Yeah, same thing. I mean, residential. And, and sorry, going back to your question. So in so part of reason why we had to go out out of out of the GTA is because exactly that, like every deal we looked at everyone wants they, they are charging on performer. But in the US because there’s there’s a lot more inventory is a lot more competitive. A lot of times you’re buying it actual in place. So when we buy we actually bought so that particular deal, it was 40% vacant, but we bought sorry 40% occupy, and we bought it at 7.5 cap in place. So the 60% of the building was upside. Yeah, it was completely free. smokes. Yeah, so then we It was like 300 times. See?
Ya James, good for you, man. Thank you
nice somewhere, I don’t know what you’re saying. Yeah, you brought it with a steady income stream in like
you said, it’s already it’s already cash flowing at you know, 40% off. So we have to go to secondary lenders because it’s not stabilized. Right. So the rates are higher but you know,
it says high percent of the mall is upside all ups that would be like subdividing a lot like a residential terms, that’s like subdividing a lot where you just get like every law you can build on it or something. But this is even better.
And some of some of the deals we looked at it has have our parcels that you basically you can carve out to do that so that another Yeah, so let’s look at some of those strategies that we typically look for awesome. So
more and more retarding of this happened down there but I see around here more and more retail I think some of the the you know there it’s easier to get some some zoning sit to get some my daughter you know the various events areas is man I’m struggling with that some variances to to some of these laws because some of the parking lots in these residential areas, because sorry, in these retail classes, because they’re putting in those extra units in the parking lots now like more and more you see that they’re like this projects were taken for so long. They provide a business case of why that area is never used, and it can support another business. I don’t know it says do you see that trend? Has that happened to any of your places down there? Do you see that trend happening down there? Because I noticed for some of those buildings down there feels like there’s not as much parking or the net there lots were never as big.
definitely been explored a lot more now because it dropped the retail a lot of a lot of the the focus is on frontage, so you’re the all parcels as the best frontage and you can charge ridiculous amount of rent like you in line space could be 12 bucks. Foot triple net. Or TMI. TMI. Yeah, different terms. But you know, your your your l lots could be 4040 bucks a foot. Oh, wow. You know, that’s a big deal. Yeah, so it’s it’s a lot more premium and it certainly brings more traffic
so that’s what I’m trying to get them out there that
Yeah, so interesting. So this mall once you started offering incentives and stuff, you were able to get it fully leased, fully leased out and they Oh my Yeah. So how long a month. Good for you.
So I mean, that was like, wow, okay, so this is
like, I gotta just hold back for so the value of this change from what to what? Yes. From what you purchase that to now it was we sold it. Okay. So give us the ball. I don’t know how much you want to share a notch.
Just ballpark. We will be we went in 1.85. cashed in. You can even buy a house in Toronto. No. Yeah. Yeah.
That’s a condo. Two parking spots. monetizable for 1.8. Yeah,
this was 28,000 square feet. In the four acre parcel.
Just thinking about driving an electric scooter around my bottom all I would just turn this into one big playground. But anyway, you build like,
bike ramps or whatever.
And then you sell it. And
we by the time we list it was like 4.6. And we close it for for for for young men? And how long did you hold that from beginning to end? 16 months. 16 months? So
that’s freaking incredible, man.
Thank you. And so you know,
a lot of it definitely is, you know, understanding, I think, have a good grasp of the fundamentals and what so we know
what’s interesting, and you keep saying that, which is a 100%. Correct. But the fundamentals once you understand them, they’re kind of can be duplicated like you like once you understand this is not you talk we joke that you were like a nuclear engineer. I know you’re a mechanical engineer, right? Like it. This isn’t like rocket science, actually. You know? It’s more like you had the guts, man. That’s more what this is. You hit the guts. Seriously? Yeah, totally in another country to do this. So how many so are there normal? Yeah.
So we were at quarter million square feet. Right now and we’re looking at a few deals. And what I’m curious at what other state or states so we’re trying to stay focused in Ohio because I know not it’s not a sexy it’s definitely not a sexy but I think the fundament we feel like the fundamentals. Yeah. But
if you’re finding good communities in a very stable place, where banks are
different, it was depressed for a long time. Right, which is, which is what was your helps you pick up these types of
are selling them at 40%? in place? Jesus, those deals are hard. I know. I know. I know, they are,
you know what you took advantage of a good offer to me at the time, because at that time, a lot of those deals weren’t unless it was still hard to find. But with everything else going on, you know, a lot of banks were looking just to unload assets. They’re like, yeah, someone’s going to buy this thing from us. We have all this other crap we’re worried about. Let’s just get rid of it.
You’re buying it a good time. Yeah. And I’m not trying to downplay anything. Oh, we understand the timing was.
And that’s what we kind of change our investment philosophy, we actually picked up two other deals that are similar. And so similar, similar ones in Florida. The other ones in Ohio, which we still own, and we’re still under, under going the transition. But I think right now, because there are a lot of people are are snatching up these deep valley ideals.
Where you can see like, people always have like, brokers love to advertise value ideas. And it’s a lot of times it’s just off the beaten path that just don’t have those fundamentals. And the fundamentals if I was to kind of just sum it up, it’s near major transportation, roots, of course, that’s good one, population density, five miles,
density within five locations grow the top job growth and income levels, right. I mean, it’s the fundamentals that kind of look at location, location, location. Got it. Okay. And then how you said your strategy slightly changing now? Yeah.
So we’re, instead of chasing these more big pop, we’re looking at more the generational hold longer, just stronger fundamentals, even stronger fundamentals. And what we’re looking at before, higher density, we’ve made short term money, and you want to park it in longer term assets. Yeah. It’s interesting what you say trading?
Totally. Yeah. Because you need the income early on. And then you start taking some of that income is no different than the experience. Yeah. And then you park that in some longer term assets while you continue to try to some other things to make the short term income to continue. Because then you’re you’re putting money in the bank short term, and you’re building value and you’re in you know, your wealth long term, right? Yeah. That’s great.
So we we do have one Canadian exposure throughout the I guess
you’re reaching out why bother? Yeah, we while we reaching out to
the one that we made all those class James local
once the once the exchange change, after they made that money, then after the exchange change, and like, I will buy for free back here in Canada.
Not so so because we call call the hundred and 50.
National, don’t tell me one of them called you back.
They Yeah, one of them call us back. And we kind of they, they’re like, okay, you know, if you guys want to work together, we can try to make you guys are preferred developer. So we’re like, oh, you know, like, Wow, this is awesome. Right? So and, of course, we can make you
our preferred developer, you know,
but that’s Look, that’s like I was thinking about when you said, you know that you guys did that twice. You went down that list and called these guys saying, Hey, you know, we got this piece of like, making them all for trying to work together. Do you know a few people would actually do that. That’s like, that’s, you know, that there’s a lot of hustle involved there that people were getting. Yeah, yeah.
Yeah, and some of them probably just flat out. Were just like, Who the hell are you? Yeah, it wasn’t a nice polite. Hey, thank you very much for the opportunity. We’re not interested. Yeah, it’s like get the hell out of here. Who are you? So yeah, that’s cool. Sorry. Sorry.
I cut you off. No, absolutely. It’s hilarious because sometimes you just have to do things to get get ahead so
we we actually build we finished construction. The first ever rooftop patio for St. Louis that was the tenant at all really the the franchise’s that call us and say hey, you know we have this we want to expand in Collingwood. But the is this like St. Louis wings? Yeah, girl, so we actually bought the land and build a building for them.
So it’s 1000 it’s a small four four unit. 8000 square feet for you. That’s nothing that’s like a
rounding error. James it does.
When you do that, though,
it just fits construction last
recently a cool other Collingwood strip right there.
Just across the street from the meantime.
Okay, gosh. Oh, yeah. Got it. Awesome. Yeah.
So it’s the first ever rooftop that overlooks the mountain. So if you guys ever go down, yeah,
very cool. I mean, now we got to make a point to go there. It’s interesting. I don’t know if you heard. I don’t know if you heard the last rockstar VIP thing when Peter Kafka spoke. We just laughing because so for those of you listening to this, we actually just had Peter on this podcast. Yeah, like last end of last week. And he was sharing how he works with pension companies who basically go around Canada, and by mismanaged malls. So sounding so similar to what you’re doing. And then they spruce them up, they increase the they improve the facade, they put up the better signage, and in their world, they do a lot of pads. So they drop a new pad on there, which is just basically a block of cement to put in a Tim Hortons or a shoppers, Shoppers Drug Mart that might not be there. And then they either sell them off or they keep them and their whole strategy is this whole mismanage small opportunity. But that’s like pension pension fund money doing it you’ve decided to do this on your own and not in Canada in the US. So yeah,
and part of the reason why I really appreciate the VIP group is
for numerous years, I would have to go down to the networking sessions in the US to kind of get the commodity mode reason and sort of the just be involved with and that’s actually when I saw you guys I think it was like three years or two years ago and I rejoined the year last year term and then and then after talking to a couple of the VIP members I was like you know, I gotta join because it just
that’s been a pretty good group for us. Yeah,
it’s a great group because everyone’s doing something and regardless what you’re doing it’s everyone’s doing something
so I find in Canada The one thing I have to give credit to the board the US is they do do a better job of networking and hanging out with each other and Canada world a little more conservative a little more timid. No one really talks about when they’re doing
so well yeah, in the states there’s conferences about everything everything and the weirdest random thing like like how to properly put a spine on
like it’s your planes from optimal Yeah,
and they’ll be like 1000 people there Yeah. Hell you know there’s like everything everyone hotel
will have a like a three most random conference at the exact
same time going on and part I think part of that what I at least what I find is because the barrier to entry for the commercial real estate investment is pretty high. Like you’re you know, in the GTA any mall is five cat four and a half cat and you don’t you talk about like a single pad is sub five cat easily so it’s it’s it’s usually the bigger hitters. So when I go to like the conferences here for commercial estates all
like an assassin sitting right next Man, I wish Yeah,
I would. She came with I was just I was just sharing another podcast, which just said that I went to I recently took developed like, it wasn’t available. Again, I don’t know how I got invited, but with some be street like was all
development land and development conference, right?
Well, there’s only 50 people there was even like a real conference. It was like on the 27th floor of some of some building. Like I’m like, Where am I going right? And I’ve walked in, I walk into this place, I’m like, I have a funny feeling that’s going to be quite interesting. And I’m their jeans and like, just a kind of a light spring sweater kinda like your dress that now. And I walk in the room I was I was a little bit late. So of course, I walked in the back, there wasn’t other people. And I walk in and it’s just all dark suits, all dark, like face shaders. And it was all institutional money and that type of that level of developer. They’re just like, I’m sure they were like, Who the hell is this dude? And what is he here for? I wish next time next time, I’m going to one of those I’m going to call you together. It’s gonna be awesome to see was hanging out, I’m going to take a drone, and we’re going to fly the drone while someone’s talking to take a picture of the room and how well we stand out. It’s going to be a good time.
two way street, I just want to share something you said that, you know, you, you found this whole VIP group at rock star in something. It’s a two way street. This only works because there’s people like you who we’ve been able to kind of all get together and hang out together. Yeah. So thank you for trusting us in kind of, you know, working with rock star at the beginning. Now you’ve out James, you’re like way past what we’re doing. No,
everyone’s doing something, ya know, whatever. capacity, it’s just impressive to see. You want to be no keep motivated, be motivated. And regardless of what you know, what
a different field of play, but there’s still players, you know, yeah. And it makes you I agree with you completely. We do the same thing. For people that are just
doing it. I can’t go to those, you know, institutional guys, hey, you know,
the institutional guys don’t own real estate them. They don’t
role. They’re in a corporate role. And it’s a little different when you’re out there hustling yourself doing these cold calls and being the preferred developer for some of these guys are going in feeling totally Yeah, in that room? I don’t think any of them did. There was a couple billion I can’t I can’t tell if I had to guess the amount of times you’ve had cold sweats in the middle of night or almost crap your pants because some use came your way that freak you out. I bet it’s in the dozens of times. But now that How long have you been doing this? When when? How long ago? Did you get the public storage unit or invested in 2012? So that’s several years now many years. Yeah. So you have you’ve managed to squeeze in a ton of experience in a very short amount of time. Thank you. Yeah, we Yeah,
definitely. I’m signing alone dog. That’s like 8 million
Am I doing I hope these tenants don’t leave.
I’m curious in these buildings that that leasing agent was putting in mid I say the buildings before so that like like that first Ohio one or that that level of building compared to what you own now and I shall changes but so who were the people going into those things? So when you took it from 40 to 80%, I will just stick on this one.
Who went is like moment pop shops? Yeah. So.
So kind of going back to retail capitalist apocalypse. Yeah.
We focus in the neighborhood centers that are necessity based. So nothing, you know, nothing fancy not to class a big box because those are going to have some challenges. Yeah. So dry cleaners. Even like banks, gems. Okay. So one of the center we have in Denver’s anchored by Planet Fitness. Okay, like 18,000 19,000
square feet. Banks, restaurants, fats, they call it fast casual facet down.
Restaurants makes sense. So yeah,
retail just seems to be changed to service. Right.
It’s all experience based,
but the big box Best Buys. Or
they’ve reinvented their stores to they’re trying to change it up. Because they had to Yeah, we’ll see long term goals. But that type of environments kind of changing
their so it’s sorry, going back to a lot of it. And what we probably I think what we pride ourselves into is our experience dealing with the mom and pops having a short stint of small business background myself, we looked at attendance as a partners, right. So if they succeed, and you know, it could be a newer, newer business, obviously, we prefer the stage we prefer not to take on that risk your financials, and if you can’t cover three years of random will not take you on but that just the, we understand the struggles, that small business will go through. And so we try to work with them. It’s like just even two months ago, we had a we have we relocated a aquarium store to another location because we wanted to optimize the building of one of our designers. And we didn’t know that he he mismanaged his budget. And then in in the construction, so he couldn’t pay rent for like six months. And he owes us like $30,000. And that’s a lot for you know, like for any for anybody. Yeah. Right. So we just we try to work with him on instead of, you know, I think the institutional guys would be like, that’ll change bolting the door. And you know, you are you so well, right. But we, cuz he’s been there since 2014. Pretty, pretty stand up guy. So we’re like, you know what, let’s work with you. So I believe last week, he just clean cleaned up his balance. That’s cool. And it just,
I believe that stuff goes a lot as an investor on the investor side. So like on that side? I don’t know, man, I’ve just in my life, I’ve always believed that that that type of approach has got goes a long way. And you’re an engineer taking that approach. So it’s even harder because usually the engineers like I’ll get out you don’t use the record owner
to because yeah, this corporate guy, they’re just looking at the return. Yeah, it’s nothing to cut them off. Yeah,
but I mean, sometimes it bite you in it. Yeah.
The same center, we have a dance studio, and the lady bought the business. And like three years ago, and she’s been she owes, like $50,000 of rent. And we’re like, you know, just been trying to work with her and even trying to give her rent concession because she was complaining that the business was the old, the person that sold the business with the Rolodex, took half a client,
whatever I’m stories,
and we’re like, Okay, I will work with you. But it turned out that she was having a fight with her neighbor, which is like an office type of and so she went to like the municipality RGA. She went to sign petition with rest attendant trying to kick kick them out. And we found out we found we found this out, and we ended up taking you to court because we just delayed it too long to try to work with it. So it’s just yeah,
it’s, but I think I know what you I know what you mean benefit of the doubt, you know, give them another like, an opportunity to kind of come around,
I thought you were gonna say she took the money was driving a new Mercedes like the other guy.
So our leasing team found out that she was trying to reload, she’s trying to relocate to another center. Well, you know, we’re not we’re not here to,
like bad tenants exist residential.
but, you know, it’s easy, it’s a little bit easier for for retail, you can just
okay, how old are you now? 3737 days, have you extrapolated out the next 10 and 20 years of your life, the path that you’re on, like if you literally just take your asset base right now the stuff that you are owning and managing and all that stuff and just assign any sort of growth percentage to that and just go ahead 1020 years, if you ever looked at that, you should do that one day it’s going to blow your mind and and you haven’t I don’t think you were going to stop now right?
No, and certainly I think it’s it’s funny because if I had to take take this on at this stage in life with you know, we have a very young daughter it’s profitable Not gonna happen I got very very fortunate I took that endeavor elitist The
only told me to quit your job with like a mortgage and as
crazy as I was, I wasn’t losing it. But yeah, good for you. Man. It all worked out mad props to that. No, no, hey, listen, we can’t say enough about you. And and and I just want to thank you for sharing this story. Because I think especially in Toronto and Canada, I think sometimes as Canadians we downplay what we can accomplish. So there’s going to be someone definitely who listens to this that feels inspired, but what you’ve been able to accomplish, because maybe they’re stuck in a corporate job or a life that they don’t like and listening to your stories really going to give them some incentive to maybe explore read another book, take action in some way call 300 people and get rejected or whatever it is. So really, I mean, you didn’t have to come in here and sit down and share this kind of stuff.
It only took us eight months to to finally make it happen. Yeah,
because you were lost in my inbox for
it’s absolutely My pleasure. So if someone’s
listening, can they find you at? Do you have a website where people can? Yeah, well,
my company is called SL equities. So you guys can visit SL equities. coms plural. And you can email me at James at SL equities calm. Okay, I’ll be more than happy to give it hand or, you know, if you guys are looking at commercial deals, but lesson, whoever the listeners are,
listen, every time you find those 40 What was it 40% occupied on in place revenue selling on in place revenue? Yeah, well, we’ll be interesting, just let us know. But
just there’s a lot of I know, there’s a lot of challenges working, you know, not in your backyard. And, you know, especially where you can’t really see the the assets frequently. Sure. But there are some benefits, at least what we find, you know, some some of it has to do with depreciation, because in the US, you can actually change the allocation of the land versus property. And we’re finding this out, as we hold on to some of the assets is longer. For example, I think care allows you in Canada, at least at 20, like 80% land, yeah, 20% sorry, 80% building allocation, you can change allocation, because the the,
it’s a lot more business friendly in some really like work
that to your advantage.
Absolutely. And so you still have to convert back to the care standard formula. And but because you can go above 80%, not maybe not so much 90%, but anywhere between 85 to 87%. Even if you convert that back to the Canadian, the care standard, it’s still a heck of a saving in terms of depreciation, so more money in your pocket. And you know, it’s deferred, but at least it’s more money in pocket for the, for the duration of the hold. While at some at some point, it feels like you should write a book about buying, you know, really about four Canadians about buying in the US. Not only would it be something like a good project for you, but it would be a great lead generator for people to find out about it. Yeah, because just the amount of knowledge and just your story, but all these lessons about running the numbers, some of the spreadsheets and that’s the kind of stuff you definitely have a great book in you man. Thank you really appreciate that. Yeah.
Nick and anything else? No, James anything anything else? No, no? Thank you again, man. Really? blown away.
This is like cracking not so good. I listened to a lot of podcast. Yeah. So it sounds like what’s what is it like?
Now you listen to yourself, you turn it off right away.
Nick and I rarely listened to ourselves. One time I was walking up to a car and they had one of our audios playing in the car and I heard my voice coming from the car. I freaked out. I totally freaked out. Turn that off. Thanks, James. Man, really, really appreciate this. Thank you so much. Thank you. Hey everyone. So hopefully you enjoyed that. James is just a great guy. I think we will be having him back on the podcast many times with various updates. So just love to sit down with someone like that who’s taking so much action and just figuring things out for themselves you know, just a resourceful resilient person. So if you are listening to this and you want to join on with Rockstar inner circle and meet people like James yourself, you can go to Rockstar inner circle calm forward slash member and and see all the benefits that Rockstar inner circle members get Rockstar inner circle.com forward slash member and I will tell you right now one of the greatest benefits. I mean, our team here is obviously we’re really proud. It’s a great team and there’s lots of good information and newsletters and audios and classes and the whole bit but just the people that make up the membership are what makes it so special and that we’re the most proud of and and grateful for. So you can check all that information out at stopped being able to speak again at Rockstar inner circle calm forward slash member. And listen, it is possible to live life on your terms. You know, don’t this Don’t let anyone tell you it’s not we’ve all it does. Sometimes it’s a challenge to be able to carve out the path to be able to live life on your terms, but it is 100% possible. Start surrounding yourself with the people that can help you get there. They will you know speed up your success to you along along your own path and your own journey. So that’s it for now. Until next time, your life your terms