George El Masri is an impressive guy. He hasn’t let his age, property prices or anyone’s feedback stop him from reaching his investing goals. Often we discuss how Millennials are getting the short end of the bargain lately with property prices sky high, mortgage rules getting tougher each year and incomes not keeping up. But George hasn’t let any of that stop him and today runs his own podcast at www.welloffpodcast.ca . George is part of the Rock Star Real Estate team and we couldn’t be more proud to have him working alongside us.
00:00:00 Hey, it’s Tom Karadza and on this episode with your health, your life, your term show. We have George El Masri on the episode with us and George came to us all backwards. Most people who work with us start as, um, investors are and become members of the Rock Star Inner Circle and join with us. You’ll hear his story. He definitely came through the back door to start working with us here. So with you hear us go through that. He’ll share some of his initial thoughts on myself and nick as well. Um, and uh, he’s just a good guy. He’s a millennial and the reason that he, he actually suggested coming on this to share his story because we’ve been talking over the last few years, just how the millennials have really a difficult time with property prices where they are to buy their first property. I mean everybody does, not just millennials, but uh, we were just focusing in on that age bracket.
00:00:45 And uh, he said, well, you know what, I’ve started and I’d like to share some of my store. And I thought that’s an absolutely great idea. So he came on the episode, the guy is a smart guy, I was impressed with his thinking, how articulate he is, how well spoken he is, um, and just how much action he’s taken already and the influence he’s having on his own family. So, um, George comes on, breaks a bunch of stuff down. We talk about some of the economic update material that we share, how he thinks it’s sometimes a little too scary and we go through that as well. I’m not that it has hold held him back. I should be very clear. Not that really affected any his actions at all. You’ll hear what I mean when we get into the episode. So I really think you’re going to enjoy this document if you’re not a millennial yourself.
00:01:28 I really think getting his perspective is for me really refreshing and insightful. So pumped that we had a chat, was a really good time. We’re definitely going to have him back again. So, um, if you are listening to this though and you want to know how most people get to know us, it is through becoming a Rock Star Inner Circle member. You can find everything out about becoming a Rock Star inner circle member at Rockstarinnercircle.com/member. On that page you’ll see all the different benefits of becoming a Rock Star inner circle member, all the classes and education and different topics that we cover from apartment buildings to joint ventures, to student rentals and beyond. Second Suites, um, uh, accounting classes, the whole bit, the monthly newsletter that we share, sharing different investing strategies with the membership of the monthly audio cd that is in addition to this podcast. Of course, that audio is an MP3 and a CD we send out to members. That’s for Rock Star inner circle members of the different events that we host throughout the year. So it’s all at rockstarinnercircle.com/member if you want to check out what we’re doing here. And with that, let’s get on with the show.
00:02:32 Are you ready to live life on your terms? Is it time to take charge business, building the economy, health and nutrition and more. It’s your life, your term show with Tom and Nick Karadza. Are you ready? Let’s go.
00:02:59 Okay, George? Yeah. Don’t make me try and pronounce your last name on. I already tried to do it just now. We messed it up. You tell me. You didn’t even try. I know because I couldn’t remember. Yeah. So tell me your last name. El Masri. And that’s embarrassing that I can’t remember because you’re part of the Rock Star team member. So that’s how old I’m getting. I can’t even remember everybody’s last name. I thought your last name started with an m. The second part of it. I know. Well that’s the part that stands out for me. So I didn’t. So the background is Lebanese. That’s right. Oh my gosh. The one country that has probably a more war-torn history than Croatia. I know. Oh Man, aren’t you lucky to be in this country? We all are so lucky to be in this country. But we were talking about why millennials are screwed and I just say that in a laughing matter.
00:03:41 So if you’re listening to this, the reason we have George on this, George, this was actually something we both chatted about. The. You’re a millennial. I feel like everybody wants to be a millennial now. Like it’s trendy to be a millennial. Well, I’m actually a millennial. I’m here. Were you born in 1990, 90 and millennials are like, what? Like late eighties? I don’t know. I just know that every little, every time I google it up I get a slightly different answer. But you’re, you’re feeling like you’re an actual Melanie. Yeah. But to me, I don’t think if 35 year old isn’t millennial. Hm, okay. I don’t know. Maybe they are just a different generation thinking. Thirty five old guy or girl. I’m thinking it’s a different generation. We listened to the same music growing up and whatever. So what music did you listen to growing up?
00:04:22 So your teenage years. This is horrible. Your teenage years are like mid two thousands. What are we talking about here? You don’t even know who Milli Vanilli is a no, I actually don’t. But I should go. I should because I used to DJ so I should know who they are. Blaming it on the rain. Dude. Blame it on the reigns of classic girl. You know what kind of. Oh, oh, they won a Grammy. It was all fake. I know girl, you know it’s true. I’ve heard that one before. We leave in the middle of vanilla even after they were exposed as fake and fraudsters. I still liked the music. Yeah, they won a Grammy and then they hit them. I don’t know if they gave it back, but I guess it was taken back. But. So you’re growing your, as a millennial. What’s the music you grew up too? I don’t know.
00:05:02 For me it was probably a little different. So I was in uh, in Brampton. Okay. Why are you smiling when you telling me that Brampton, Mississauga, right next to the breadth, but don’t actually grew up early on and Mississauga. And then moved to Brampton and that’s why I kind of laughed because people would make fun of me for going there. Okay, got it. Got It. Okay. Yeah, there was that, there was. Why would, why would you go to Brampton? Brampton, Brampton to Mississauga. Mississauga to brand. That’s right. That’s right. Yeah. That’s how the politics. So I was always into basketball. I’m still into basketball. I love basketball, so I was kind of a part of that hip hop. I used to wear xl shirts or double xl and your pants were hanging down my pants. Never. I never used to let my pants hanging down, but I did have the extra lecture. It’s so I was into hip hop and that was for the most part like okay. But like give me some Tupac. Biggie. I used to like big lo no idea who big goal. This is like a. It was a group with fat Joe and part of New York. The name. Yeah. So I think you and I have totally different music styles. I have no music style. Useless with a music tragically hip. I’m useless to me is everything. To me it’s nothing. I don’t even know anything about them. Oh my God. We are different era’s. Oh my gosh, this is what. This is. What’s shocking about this country and what makes this country so great all at the same time. Yeah, but the thing is now today what I like is Motown music and older stuff. I like music from the fifties and sixties is because you’re feeling you’re millennial and you’re not cultured and you need some culture in your hood be, but I think it was so you know how vinyl records are back here to talk about real estate, but okay.
00:06:42 Vinyl records are back. Yeah. Oh, it’s a thing. I think it’s a millennial thing now. People love getting records, so I like two years ago I would go to garage sales all over and just pick up a bunch of records. I didn’t even have a record player. I didn’t know anything about it. You’ve just summed up the millennial generation, your pocket Rutgers with no record player. I didn’t even know what the different sizes meant and whatever. Like I just picked up the records that I thought were the right size and it just got a record player and maybe two months ago someone gave it to me. Oh my gosh. So you think there’s other people like you buying record players? Now? You know why this is going to sound hilarious, but I was just telling. Well, it doesn’t sound hilarious, but I just told my own family.
00:07:18 I’m like, there’s something that music coming off a record player, that little crackle that sound off, it just sounds so amazing and I have the most embarrassing story to share with everyone. Nick and I used to wake up like on the weekends our mom would play Whitney Houston, a single. The children are our future, like on full blast on her record player with some big speakers attached to it blaring through the host. Like if you don’t know that song, it’s just talking about the obviously the children are our future and we would wake up just hearing this blasting through the house. Like it was just weird. It was definitely weird. But uh, but I used to love the records. Yeah. Well when you say stuff like that, I can imagine it because your mom is, she’s so different from you and your brother. I find. What do you mean?
00:08:01 I don’t know. I just feel like you guys have a different energy. Completely. Huh? That’s interesting. Your moms don’t take this the wrong way, but I feel like your mom’s very open and she loves to connect with people. Not that you don’t, but she does it in a different way. Like she’s just right off the bat. She loves to to connect with people. I think you and your brother are a bit more cautious about who you connect with, so they were more reserved possibly. I don’t know you guys that well. I think this is actually probably the first time we sit down and talk. Yeah, totally. Yeah, because you infiltrated your way here in the rock star. We don’t even. Just so you know, George, God is waiting, so Rock Star has grown because we work with real estate investors and everyone who almost everyone, until a few years ago who had joined our team. We’re investors we helped with, got their real estate license and they joined Rock Star and that’s how we’ve grown last few years. A few other people have kind of infiltrated in. It’s been minimal, but George is basically one of them. Were you just showed up like one day or you called Nick and Nick met with you. I don’t know even know how you convince them to do that because we don’t like to meet with people, I guess to your point of maybe being reserved or whatever. Don’t even really want to meet with anyone. And uh, you met with Nick and Nick came to me. He’s like, yeah, I met this Guy George. I don’t know. There’s no good reason I have for saying no to this guy, but he said he’s going around evaluating different brokerages. I’m like, did you tell them where basically we hate real estate model and we don’t even care that we’re a brokerage and like, we are a brokerage to make the whole business work. He’s like, yeah, no, I’m pretty sure I was clear about all that stuff and that we don’t offer any training to George and we don’t really even aren’t going to talk to them apparently like you said until now. And uh, and he’s like, yeah, I told him all that stuff. But he keeps coming back and following up and then you decided to join the broker.
00:09:40 Yeah. So a funny story about that. When I met with Nick Heat, so we. I called him a couple times. He screened me over the phone to see if I’m a Douche or not. And then he’s like, okay, fine, you can come meet with me and met with him and then he’s like, all right, well we’ll take you on. You can become a Rock Star. I’m. I’m like, okay, cool. I go back to my office or something. I send an email to my broker. I’m like, Hey, I’m leaving. I’m going to join a different brokerage, whatever. What are the steps? And then the next day I get an email from Nick. He’s like, you know what? Sorry you’re not. He can’t be a rock star. You’ve got to meet Tom.
00:10:12 No Way. Yeah. I really hope this works out. I hope Tom doesn’t know what it is. Most of the time we’re just trying to see if you’re a good person. Like that’s what it boils down to for us. We don’t, we just want to know good people and hang out with good people, so maybe reserved in that way, but I have a similar story. When I was a, I hated my job. I was in tech support at Oracle for a couple of years and I really needed a change and I went on a trip to Cuba with my wife and I was kind of brainstorming, actually launched a couple of business websites from that, just exploring kind of online marketing and stuff. But I got back to us, to Oracle and I went into my manager’s office and I said, look, I’m done. I’ve done a couple of years now in tech support.
00:10:51 I really want to move over into the sales side and be a technical sales consultant to work with Salesforce. There was a posting I saw I’d like to apply for it. Um, I just wanted to let you know, please let me know what the next steps were. I went back to my desk. He comes to my desk about 15 minutes later. He’s like, Tom, so you really want to apply for that job because that postings in Winnipeg, I just told my manager that I basically don’t want to work for him anymore and the job posting on, but that it’s opened was in Winnipeg. Luckily about a month later, not even, there was a big expansion where I was and there was a whole bunch of new sales type jobs opening up and I managed to get over there, but uh, I remember my heart sinking thing thinking that I just like ruined my entire future at this company. But anyway, we met and your here and now you’re a bonafide Rock Star. So
00:11:35 I am. I’m like, I’m finally part of the family because when I first joined I was afraid of saying anything during the meeting because you could shut me down so fast. You’d be like, you know what? Why don’t you save that question for after when we got to discuss other things right now, but now I can actually talk and you’ll, you’ll answer my question.
00:11:51 I don’t think so. You’re talking about our Monday team meetings?
00:11:54 Yeah. I don’t think that we’re trying to really shut you down, it’s just there’s been some people on our team that have been around for like 10 years and there’s other people obviously like yourself with good intentions and good questions, but I’m trying to manage everybody’s tired.
00:12:07 Yeah. So, um, and I’m trying to make a point like at George. Yeah, just park that question asked me afterwards. But it’s interesting that you’re thinking of just shutting you down like that. I didn’t. It’s just, I didn’t know you whenever. Backtrack this. It’s okay. No, I’m saying I didn’t know you when I first joined, so that’s what it felt like to me, but now I know that you’re, you’re above respecting everyone’s time, which is, which is fair because we get done on time and then everyone can move on and do whatever they need to do.
00:12:32 Yeah, yeah, yeah. That’s an important meeting for us. And uh, thankfully it’s also a little bit, just so you know, I don’t know why we’re sharing internal politics of Rock Star on this podcast, but just so you know, it’s a little bit of a test as well, like if you can get through those meetings, I mean, everyone’s pretty good in there, lots of experience and we all like to get to the point. So if you can survive those meetings, it’s a little bit of a test for us to see what you’re all about and if you’re going to survive here at Rock Star. Right, right. So it works that way for us. It’s not like a really conscious thing that we discussed, but it’s just, that’s kind of the way that’s worked out a little bit, right? Rightly or wrongly. I mean, we’ll see. But, uh, over the last 10 years it’s worked out pretty good.
00:13:12 And, and, and to your credit, you’ve hung around and stuck it out and uh, yeah. And you’re right now we’re talking more than we’ve ever spoken. So this is great. So the reason that we wanted, I wanted to talk to you is your property, you’re thinking about real estate as an investment. Um, but before we even get there, we just finished one of our, your life, your terms events, and you asked me something I’m on. Are you, what, what, how did you phrase it? Am I scared I’m putting fear into everybody or something? No, my scaring the millennial.
00:13:41 Yeah, that’s my update. Yeah. Because, um, obviously you talk about the future, the future of real estate and for the most part, the people that are already established and are not too worried, they have their properties and you firmly believe that the properties are going to increase in value because in large part because of all the immigrants that are coming and the growth of the population. So who’s really being impacted? It’s the millennials and you said it yourself, you kind of believe like they’re going to get screwed at some point. And uh, I was just, I was wondering if they’re already screwed. Yeah. Well I kind of disagree with you on that and I’ll talk about that a little bit later. Being a millennial myself, church, you’re a good guy, dude. I like the fact that you’re disagreeing with me. I’m not just going to agree with everything I say is great. Yeah. So, um, I just wanted, I asked you if you get any feedback from people saying that that’s just kind of you’re putting the millennials down and you’re leading them to believe that there’s no future for them. Um, so yeah, if that’s the message that’s coming off, it’s, it’s good that you’re letting me know because it’s absolutely what I do not believe that I always believe leave
00:14:42 that I want to be, have a realistic outlook on what I think the economy is showing us. But I always believed that if you, um, if you have a work ethic, um, and you’re a good person, um, the world is your oyster and the future has unlimited potential for you. But at the same time I’ve met a lot of people in my life who just have happy thoughts and believe in the law of attraction. Like I was Kinda into that whole scene for a little bit, like, you know, think of something and it will materialize and I’ve realized that you need to have the right mindset definitely, but you need to marry it with a certain amount of work ethic to actually materialize what you want in your own future. You know, it’s like your habits create your future. You can’t just think about, you actually have to have the habits and do some work to kind of create the life that you want.
00:15:28 And so the way I talk about the economy is an attempt to have the real information in front of me. Not like everything’s gonna be okay, don’t worry and let’s just dismiss all this crazy business that’s going on the economy. So I like to call it like I see it, but then once I see it, and if it does come off negative, which it often does, um, if I’m aware and I can share that with other people, I think we can all manage through it. And I think there’s huge opportunity. And I’m just to your point about properties that you know, I believe they’re going up because of the population growth, there’s two trends. I look at a long term, like a 10 year trend at a minimum, which would be the shortest amount of time for a longterm trend in my eyes. And over that time I do believe that we are on this cycle of increasing demand because of population growth.
00:16:18 But I also believe that there’s could be any 18 month, two, three, four, five, six year window within any 10 year rolling window. The could be a recession, it could be property prices coming down. So although I might believe long term that if you hold real estate long enough and survive and hold onto it for dear life as a phrase that we always say like buy property and then hold onto it for dear life to survive. And the reason we say that is because we want, we want investors to get in, to survive through the downs. Like don’t give up when the headlines are negative and property prices come down. So we are. We believe that at anytime property prices can come down, so it’s not just that we believe property appraiser, they’re just going to go up forever and the real estate market is highly in tune with access to credit.
00:17:05 So if the banks decide for whatever reason that there’s a US recession or there’s a problem here and they tighten up on on their lending rules further or don’t give any credit out, the real estate market will definitely suffer. My point is that don’t give up because real estate to us as one of the few assets that also produces income, so it’s a self liquidating assets and if you hold onto it long enough, you will likely do really well for yourself even if it doesn’t appreciate, even if it just pays off the mortgage. So I guess that’s the mindset that I’m trying to come from when they give those updates. So it’s good that you’re telling me, hey man, you’re freaking out all the millennials because I want to freak you out in a second a little bit more. Well, I. I’m not freaked out by what you’re saying because I agree and I believe that there are still
00:17:50 opportunities for people my age to get in the market. Maybe you want, like I mentioned to you, I grew up in Mississauga and later moved to Brampton. I probably can’t get in the market right now in those cities, but I can get into Hamilton St Catherine’s Cambridge, whatever. Totally. And the spinning off and you’re saying that because of the price point. Exactly. Yeah. Yeah. And I was able to successfully do that. Not How old, how old are you? Are you are 29, 28, 28. I’ll be 29 later this year. Okay. So 28, 29. Um, and then you have rental properties right now? I have. So I have, how are we getting to know each other? Right. There you go. I probably told me and I forgot. Yeah, I probably did. I bought my first rental in 2017, so it was a closing date, was September 2017 and I actually renovated the house myself with the help of a few people have.
00:18:40 I had to learn everything. I didn’t know how to do anything. I didn’t know how to use a saw, a miter saw or anything. I learned everything. Yeah. And uh, it was uh, the home inspector that did the thing for me, he told me it was the worst he’s ever seen. Awesome. That’s how it’d be good. Perfect. Yeah. One of us. Yeah. And he’s like, you know what, if you weren’t a realtor, I wouldn’t tell you this, but because I’m going to tell you, you should walk away from this house. What was it? It was a two and a half story, a hoarder house with a really terrible tenant with like loaded with fleas, like you have been half story. So is this already a multiunit house? Who was at one point but it was an illegal duplex, illegal or illegal second suite, whatever. Yeah.
00:19:22 So, um, it was just terrible. The fleas were seriously, the house was infested and I didn’t even know. So after I bought the house, I realized there were fleas. Right. And that really slowed me down. That freaked me out. It was not like bedbugs. Yeah. Similar. But fleas, they can jump up to like five or six feet, so we know. Yeah. Yeah. They have like these legs that spring up the shoot up and they can climb up on your clothes and. Yeah. Oh my God. Yeah. Because one of our student rental properties, I had to deal with bedbugs. And have you. Have you ever dealt with bedbugs yet? No. Nasty. Yeah. You push into the seam of the bed and you see these things pop out and crawl around the seam of the mattress. Yep. Disgusting. And all the students were on summer break and we discovered there was bed bugs.
00:20:05 So I went in there. I started throwing all their clothes without their permission into a pile for the moment I just emailed them and I didn’t realize some of these guys had some probably like you. They had somewhat I thought was like a Jersey or something, but some of these things were like signed. Oh Wow. But I just need to clean up the house. So you through. I just threw it all out in the trash, in the trash and I told the guys, we have a bedbug problem. Here’s what it had to do. If, if, uh, you know, I’ve done something incorrect, please let me know and I will compensate you for what I’ve done, but I had to take immediate action. Um, and I think a few of them, I had to give them a few hundred dollars to replace some articles of clothing that really were. But in general they were just happy that I got in there because they were coming back and they will obviously wanted a good place. So they were, they were actually happy
00:20:48 that I was in there battling this problem. And I remember at one bedroom, because the, the, the guy was an international student, went back. Um, and uh, he had like piled all his clothes in the middle of the room. I was in the middle of this room. We’re closed. We’re like up to me, like above my waist, just throwing stuff out in garbage bags. And then I did that for like the whole day cleaning out this house. And then I went, then we had to have the exterminator come in twice because he couldn’t kill them the first time. Then we found some powder that you put in the baseboards that really work. And uh, the first day when I went home I changed in my garage because my wife didn’t want me coming in the house, so I was in my garage closing the garage doors, just getting stripping down, freaking naked in my garage and throwing up my clothes and then walking into our house and straight into the shower was just crazy. Yeah. So a good for you that you battled through that extreme. So what? Exterminator?
00:21:38 Yeah, they had to spray like four or five times, but that was my fault because I’m. The thing is when they spray, it only kills the adults. The eggs aren’t impacted by the spray and the eggs can lay unhatched I think I’d have to check back because I did a bunch of research back then. I don’t remember, but I think they can lay on hatch for up to six months. And um, it’s just a scary thing to think you have to vacuum after they spray every day, you’ve got to vacuum the entire house twice a day and they didn’t tell me that the exterminator. So I just, I got it sprayed and then I’d check back in a week to see if it was gone, but it was still infested with fleas. So it took like maybe two months to clear it out to figure out how to get it done, to get it done.
00:22:20 I love the fact that you said it was your fault and you just took responsibility for that. That tells me so much about your right there. Yeah. But a good for you. So you handled that thing. So. Okay. So you get rid of the fleas, you teach yourself miter saws and you renovate this thing with friends. I’m assuming
00:22:33 family. My Dad helped up. Oh awesome. Uh, so the main things that I did, what I thought you were crazy for doing this and he thought the house smelled like crap. It’s a disgusting house. Oh Man. What did you buy? What was the purchase price again? I bought it for 2:15, a two and a half story. Four bedroom house. Okay. So we’ve got big structure, big structure. It’s probably worth around like maybe three 75, 400 now. Awesome. And that was only a. So we’re talking two years ago, not even. Yeah, a year and a half. Okay. Yeah. And you said that one was Saint Catherine’s? No, Hamilton downtown blue. I’m losing Hamilton. Yeah. Wow. Good for you. You went downtown Hamilton. You’re gutsy. I didn’t know, but that’s the thing. I didn’t know anything about Hamilton at the at the time. I just got lucky. You haven’t met us yet? No. Yeah. Got It. Okay. I seriously, I just saw a house and I felt like it was a good deal. I didn’t even have access to the matrix system, like the Hamilton Board. I just had the Toronto real estate board so I couldn’t even see comparables in the area and I just kind of did a bit of research and I felt like it was a good deal and I move forward and it was the scariest thing I’ve done. Good for you, man.
00:23:36 That’s how it begins, I think sometimes, especially at your age, that’s the stuff you’ve gone through, the lessons that you’re learning, those are unteachable things you’ve dealt with home inspectors and you’ve dealt with these freaking fleas jumping all over the place and uh, you’ve dealt with a home inspector telling you about ripped up. You were the realtor in the process. You dealt with the kind of buying material and fixing it up and then I’m assuming you went, what does it to. You rented it out?
00:24:04 Yeah. Yeah. And I refined, well, I didn’t refinance, it ain’t got a home equity line of credit on it, so I think six months after buying it I got it appraised at 300,000, so I was able to draw out all the money that I put in and it’s cash flowing, so I use it. A single family rental. Yeah. Okay. It was set up as a duplex, but I didn’t want to run into trouble.
00:24:23 Yeah. You use the word illegal duplex. I think sometimes we use the words nonconforming or. Yeah. No, no, no, no illegals. Pretty much the right word to use. Nonconforming just sounds a little bit better. It was like a bylaw officer who taught me that a while back. He’s like, well that’s a nonconforming. Well, technically
00:24:38 probably was because on a, on warehouse it had duplex word on there, so nonconforming duplex. Got It. And uh, just a thing that I had such a small budget at the time, so I had to get creative. I actually bought kitchen cabinets for off Kijiji from somebody who did a reno and their cabinets were still fine, so I just bought them for like 250 bucks and I ripped out all the old cabinets, put those in, bought a countertop from Ikea for 80 bucks and just made it, made things work. However, the cabinets. Do you have a truck? No, I had to rent a u haul truck. Awesome. Yeah. And just put all the material, all the flooring, everything in the truck and brought it over.
00:25:15 And then when you were doing the work during the days at nights we asked. Yeah, that’s it
00:25:19 thing. It took a lot of my time away. So I’m a full time realtor, but I had to probably spend maybe six to eight hours a day on the house to get it done because I didn’t want to carry the mortgage any, any longer, had to do it as fast as possible. And uh, luckily things worked out. I don’t know how, like obviously I’m commissioned based, I don’t have a salary, I don’t have anything and it had just enough money to close on the deal and I just figured things would work out and they did. Deals came along, thing I had enough to just get by for that little period of time and luckily everything worked out and I just had faith that it would. And it was a great deal for me.
00:25:55 Good for you always when you’re taking action, things work out. But yeah, usually when people overthink something and they don’t take action. To me, the reason it worked out for you is because you were taking action. You found the cabinets, you got a rental truck. Like most people will just freeze and say, I have, I don’t have enough money to finish this project. And they want to do anything. You instead said, okay, I don’t have much money at all to work with here, but you found cabinets on Kijiji for two, 300 bucks and he rented a u haul yourself and loaded the cabinets into the u haul and brought them over there. Yeah. It always, you know, I love this kind of phrase that I once heard that action beats meditation. Like I’m a big believer in meditation. Uh, I don’t know if, you know, our mom who you said it’s different than us.
00:26:30 It took us to meditation camp when we were really young and when everyone else was going to summer camp up north, nick and I went to the you downtown Toronto Central Library for one week meditation camps in the summer. And Anyway, um, so, uh, like I, I’m a big believer in it. Um, and it’s played a big role in my life, especially at different stressful times of my life and at times in my life when I wanted to make a real change, um, meditation and the ability to kind of visualize the future that I wanted for myself. And then combining that with some, some work with it really has been beneficial to me. But my point was you were successful because you took action and I just want to give you a lot of credit. Men. Thank you. Your parents must be also pretty proud.
00:27:12 I mean you’re, you’re, you’re in your twenties now. I’m not like they’re patting you on the head proud, but I mean they must be. I’m sure they are. They, they’re not really the kind of people that’ll say it, but I’m sure they believe that they were born. Were Lebanon? Yeah. Both. Both law. Uh, how long you were born in Canada though? Yeah. Um, when did they come to Canada? In 1989. 80 nine. And how, like are they happy that are you? Do you have any brothers or sisters? Have a younger sister. Do you feel that they, they think they made the right move or where do you think they’re coming here? Yeah. Yeah. Yeah, I think so. It’s hard. It’s hard to tell them they’re still like, as most immigrants are, I think they still have that desire to be in their home country. But um, I think they’re happy with what they’ve, a lot for us because they just like most immigrants, they sacrificed everything for us.
00:28:00 They had to give up so much. And I’m sure your parents are the same. So I don’t think you have any regrets about coming. Yeah. Cool. Yeah, it’s funny when I found for, I do find first-generation immigrants, if I can look at our own parents as a little bit of an example of that, they do kind of stick to their community pretty tightly, which they do a lot of cool things because I think from that you learn a lot that isn’t readily available to Canadians. You learn a lot about it, you know, you get a deep understanding of different cultures that way. And I really have a respect for that. And I was fortunate enough, nick and I both were to go over back into Europe and kind of see our family over there. It was still there and stuff that is still there even.
00:28:40 And that’s been really, really beneficial. I think in my kind of own personal worldview. But I find the next generation like yourself, because we went to school here, our network starts to change. We kind of intermingle just a little bit more. And the power that comes from that, you being the next generation is very strong because you, you have a different network. Whereas my parents, and I think if I was to guess your parents, they would have to like the Lebanese net network and my parents would have their kind of circle of network. But now you being born here, you were meeting each other, right? We know each other. And George, you don’t have children right now, but one day you might have children. And the fact that your network has grown beyond kind of what your parents network has. It gives you a lot of opportunity in this country I feel because I feel I have a lot of opportunity in this country that my parents didn’t have because I just know more people, right? Like it’s the kind of the power of your network changes a little bit as the generations move on. Um, which is a really cool thing. Yeah.
00:29:42 And uh, yeah, so that, that first property, um, did you, did you buy another property or did. Yeah, so I used them, he locked to put a down payment on another home, got it. And I still have a bit of a balance on it so I can still probably draw it a bit more and go for a third one. I’m kind of in the process of doing that, but I just don’t want to go to lock on the first property. Yeah. Afterwards. Or did you get one of those mortgages that already attaches a he lock? No, I got it after. Oh, good for you. So you were able to get that on after six months later? Just because I got such a good deal. I think it was appraised at 300. I think it’s worth more, but that was enough to give me access to $80,000.
00:30:18 And then I just went out. I found another home close by that I, that I now live in. Awesome. Cool. So 28, turning 29. You’re already into your second. You’re living in the second property. It’s, it’s, it’s for you. This isn’t like any sort of rental or anything? No, I live in it. It’s just a small house. Awesome. What city? It’s in Hamilton. It’s like five minutes away from the rental. Oh, awesome. Yes. Perfect. Okay, cool. It, man. It’s interesting to see Hamilton Morph in real time with the people you see like you coming in there in that city has changed a lot of people from Charles still don’t understand what’s happening in Hamilton. Like it’s changing. It’s just becoming an extension of Toronto. Exactly. And I can actually feel that just getting to know the city more and more. I just feel like there’s a really young crowd that starting to populate that, that place and I can just imagine all the streets being filled with young families in the near future.
00:31:09 I think that’s the future of Hamilton. It really seems that way. And we’re seeing condos being developed right in downtown Hamilton. New condos, which we never saw before. Mike on, you know, Mike, um, was helping out a bunch of rock star members by some of those condos is investments and I know I’m gray, Brooke. Uh, you know, kind of a land development firm has their hooks into big development projects into Hamilton for future big growth around the harbor front area there. So Hamilton’s really, the story with Hamilton isn’t over. It’s, it’s really just barely begun. And the reason I say it like that is, um, a lot of people who look at Hamilton 10 years ago think the opportunity’s gone. And I’m like, no, no, no. The opportunity in Hamilton is still like, well look, you’re buying that property like 10 years ago. Why did I end up in Hamilton not knowing anything about it.
00:31:53 I was doing searches. I set myself up on a property search on the Toronto Real Estate Board and I looked in my price grid in my criteria and Hamilton was the only city that I could really afford to buy in. So I didn’t want to be in St Catherine’s, that’s a little bit too far. So somehow I ended up there and even to this day when I look, yeah, I can afford me for and some of these other cities, but the city that makes the most sense in terms of location to be in his Hamilton. So I’m sure I’m not the only one who thinks that way. You’re just seeing a thinking proximity to Toronto. Yeah. And to my family, I’m just overall, just the fact also that Hamilton’s a nice place. I, yeah, there is like there’s people that have some maybe mental issues and there’s a lot of that.
00:32:37 And then there’s drug abuse and things like that, but think that’s improving but over also every city has that kind of stuff. Yeah. But I’m just, if you look at the structure of the beauty of the city itself, it’s a beautiful place. It is a nice city with the escarpment right next to it, right next to the downtown there. Yeah. So obviously some of the industrial areas are, they kind of take away from, from that the look of the city. But um, if you look on lock street, I don’t know if you’re familiar with it. I am, yeah, beautiful restaurants, places you get. It just looks like Toronto. It’s pretty much identical to it, so I’m just. I can just imagine that carrying over and, and the Hamilton Mountain for example. Great Place. I would probably raise my family there if that was. Yeah,
00:33:16 what we didn’t know about the Hamilton mountain until we were buying more and working with more and more investors because Nick and I are first entrance into Hamilton was not upon the Hamilton [inaudible] biomech as a student rental. Yeah. And then one day nick and I both decided we were working with more and more investors and we thought we need to find property elsewhere. And he said, okay, I’m going to go explore different parts of Burlington that we’ve never been into before, which now sounds ridiculous because we know all of these areas. But he went through Burlington to some areas and then I drove up onto something called the Hamilton mountain that I’d never been up until the year 2005 or so. And uh, I called Nick and I remember saying, nick, I think it’s a jackpot appear like the property prices that communities, the parks, the schools, the shopping malls, like this looks like heaven up here. And we started plowing into there and now I think you know, this, we’ve done like eight, 900 a thousand different rental properties on the Hamilton. Not even in Hamilton. I’m talking about the Hamilton Mountain specifically. So absolutely fantastic area and all the new developments. So why MCA big box stores. Great. Great spot.
00:34:21 Yeah, absolutely. And uh, I was actually going to ask you, when did you and your brother start investing?
00:34:26 Yeah, we need to get the actual year. I guess it’s going to be because we were with our family, like our family’s been in real estate investing in one way, shape or form since the 19 seventies with our mom renting out rooms in a, in a what would be called today. Like a boarding house? Yeah. Um, I guess on our own it’d be like very late nineties, like [inaudible] 99, 2000, 2001 ish. And you are, we could actually find the actual year, but that’s going to be the timeframe. Was it a buy and hold or was it more of a flip for nick? It was a for me buy and hold first. Uh, for Nick it was a flip first and then a buy and hold, but he bought. That’s why I’m resonating with your story so much is because one of his first properties or his actually his second property, excuse me.
00:35:12 So he would have been like 23 by this age or something was exactly like he bought this thing. I went to go see it on. There was so much tar on the windows that I could, like I could, I couldn’t even write my name because it was so thick you couldn’t even make a dent in it. And uh, it was, uh, there’s no other way to say it. This thing was like a complete shitbox and uh, but he, he and his buddy bought it. They renovated it all themselves. He used me to dig up the side the house because every house needs ever owned has, had a water problem. So we dug up the side of the house by hand. Are you doing waterproofing, waterproofing? You were. It was something you were doing. We did it. Was it like your full time job or. Oh my gosh.
00:35:50 No, no. I was working at Oracle already as a, as a. I Guess I would have been like, no, I think I had already transferred over into the sales side and I remember it was the end of their q four, so their fiscal year, it doesn’t line up with the calendar year and it was like spring and so they decided to dig this house out and it was the last day of q four was the day before I was exhausted. I had never been through a sales year-end before it one of these aggressive software companies and I had like this big blow year but like I was completely drained and then on the next day we were meeting there about four or five of us to dig out this house and I remember just being exhausted and digging this hole and just hoping the like we didn’t even. We didn’t even know what we were digging was structurally sound like if the dirt would hold them aside.
00:36:34 We were just putting up pieces of plywood with little bits of two by four to try to hold it back, but we could have easily been one of those stories on the news of like too smart, you know, Mrs. Saga, Brothers Kitchen, avalanche of dirt pile it on them as their. But we dug it out and then like put all that tar to waterproof it and stuff like that. And this is how little we knew what we were doing. We filled back up the house and about a week later nick and his buddy Dave, they’re like Tom, the hosted leading again. I’m like, what are you talking about? We just dug the house out. We filled up all the dirt back, but there was a pipe that was going into the house that none of us like sealed around the pipe. So it was like Kinda, I guess we had taken off whatever sealant was there and there was, there was just hold, hold inside of that with a pipe going through it with like a one inch gap all the way around.
00:37:20 So we sealed the whole house but we left this massive gap in the side of the wall. Um, so that would be when we kind of started I guess on our own. So you. So nick was really young, you said he was about 22, 29? Yeah, the first property would have been 21 for me. It was a rental, a 26 and then from there we kind of both pushed pretty hard. Did you get yours before him because you’re older than him, right? No, he actually, I was looking into this before but then he went to a conference and got all excited about it and took action before me. So right about the same time. But he actually got it. So you were probably like kind of embarrassed that your brother did it before, you know? No. Yeah. Now when you say it like that, actually now that I have today looking back, maybe I would be, but no, I think it was just more I’m like, good for you and like, yeah, let’s do the, you know, kind of more just like I think we were just trying to create a, like even though we were in our twenties and we were living a bad life, I think we were just thinking we needed to do something.
00:38:19 I guess the whole, our whole attraction to real estate isn’t real estate in and of itself. Our attraction to real estate is every person that’s had some financial freedom in their lives that we’ve ever met have always had some component of real estate in their lives. So we thought we need to have some real estate in our lives because we had tried a whole bunch of stuff. You know, by that point at 26, I already done some stock market trading. Already done, had already done some option trading online. I’d already created some websites online and I was just realizing that although these things could be money producers for me that if you just buy some real estate and hold it for long period, this comes back to our earlier point of just buying some real estate, holding it for periods of time you’re likely going to win and the only reason we talk about the economic update so much in the economy so much with Rock Star members and at our events and stuff like that is we don’t want to be caught off guard.
00:39:15 Right. Like our. I don’t know if you know this, but our family almost lost everything in 1990 during our deep real estate recession. And then the year 2008 we were caught off guard again. So are you talking about you and your brother? Why? Well, the 1990, it was our father in 2000 and 2008. Yeah, we had already started. Rock Star was incorporated in 2008. We started working with investors out of a different brokerage in 2006. So we were already two years in and we were kind of caught off guard again and we thought, well what, where are we, when are we going to learn here? But when you say you were caught off guard, is it because of that your property values went down? No, because that doesn’t actually scare us as crazy as that sounds. If we were caught off guard with a massive economic financial crisis in the U.S. that we didn’t see coming and it happened to affect property prices in the U.S. and then it happened to affect psychology here in the Toronto area and we thought at that time everybody said Toronto real estate and Ontario real estate and Canadian real estate is going to fall next and we didn’t see any of this coming.
00:40:16 So we thought how, how did our family almost go bankrupt in 1990? Because they didn’t see that recession, we didn’t see that recession and correction coming and now we’re getting kind of quote-unquote trick to get. Like when are we going to have an understanding of the economy to the point where we don’t get fooled anymore. Right. And that’s what started our economic update where we just started researching the economy for ourselves and then started sharing it with investors. It wasn’t with the goal to scare anyone. It was more like, hey, here’s the crazy data we saw and just so George, you probably don’t know this, but in 2010 during our economic updates, we were sharing with all our investors at that time that we don’t believe interest rates are going to go up. But everybody we spoke to, especially people in the industry, mortgage brokers who had been in the industry for like 20 years were telling us guys, interest rates have already been low now for a little bit there about to spike back up.
00:41:05 You better be ready. And we in our own research, nick and I were determining that they’re not going to raise interest rates because they’re verbalizing that they want the US economy to get to a certain economic level. They want the expansion, the GDP output to be at a certain level before they raise interest rates. And they’re not at that level. So we’re like, I don’t think they’re going to raise interest rates. It was just a simple kind of thing like, hey man, we’re just listening to what the US Federal Reserve is saying and it doesn’t look
00:41:34 like they’re queuing anybody up to raise interest rates. So we don’t think we even went to the date on the US Federal Reserve’s website where you can see how all the. All the people on the board are voting about interest rates and we would look and you could see that a whole bunch of the people voting we’re seeing in 2010 that they didn’t think were interest rates were going to. They would be able to raise them until like 2014, 2016. And we were showing people this data were like hey look, I know the media is saying instead you’re going to go up. But like look at what the US Federal Reserve is saying internally. And it kind of convinced us to like stay variable with our interest rates and that we weren’t going to have a crazy interest rates spike in Canada. My answering what you were asking, I don’t remember if we really went off and I wanted to show you something.
00:42:20 Um, and, and I’m joking that how the millennials are all, all messed up and, and now you should know that I have my oldest is about to turn 17 in a few months. So He’s 60 now and uh, we have talks about this stuff all the time and I, and I tell them all the time, the world is completely your oyster. I said you, you can do and be anything you absolutely want. Like I really believe that especially if you put the work in to get what you want. Um, but I share this information with him as well because I just don’t want to be caught off guard anymore. Right. So the information is something I’m going to share with you right now is this is a chart that the Ontario government, and I’m going to just try to explain this verbally to everyone. So I’m showing what George’s seeing right here, but the Ontario government puts out this chart about population growth in Ontario and what George is looking at now before the year 2014, 15, it’s in a range of about, I would call it like close to 150,000 is choppy, but it’s about 150,000 people a year and then they have the future projections and the future projections, if I was going to call it look like they’re about let’s say 180,000 ish going forward and on the Ontario government projecting that all the way out to 2041.
00:43:39 And it’s. It’s funny because whenever the governor makes these projections, it’s always the actual data before the projection is always super choppy and then their projections are always like perfectly even. But they’re projecting that they’re gonna in Ontario we’re going to have 175,000 people a year, which is more than we’ve had before. A population growth of that much a year. Is that a net growth? Yeah, everything. You’re talking about, immigrants, newborns or whatever. So the title of the charts, just contribution of natural increase in net migration. So it’s at and you can see on the chart it’s got a population growth here. Natural was that say natural increase and the migration. Okay, cool. So it’s both and it’s about 175. But to your point of not getting caught off guard, we looked at, we always look at Ontario’s reported population growth numbers and for about the last year, every time we go to check the population is not growing at their future.
00:44:34 Increase. One hundred and 75,000. And the last quarter I’m in Ontario. It grew so much that if you extrapolate it out, we’re not going to grow at 175,000 over the next year our population growth is going to be over 300,000 in Ontario and that’s been going on for like over a year. But these charts and projections are still talking about 175,000. And if we. So we made a chart. No one’s actually seen this. I’m going to put this up in one of our Rock Star minutes soon. But here’s what it looks like, George, if you put in the 350,000 population increase coming our way. So, and I know you can’t see this if you’re listening to this podcast, but basically it’s like a big wall of population growth and, and the reason that we want to know that as real estate investors is that if, if the population has been growing at like 150,000 or so and all of a sudden in Ontario annually we’re not, we’re going to be growing at like maybe you know, this is, this trend might change.
00:45:34 You might not be $300,000 if it’s $200,000, first of all, what does that do? Do demand in real estate likely going to increase it and what does that do to things like transportation needs in this area? And then if I’m a real estate investor, I think it’s probably going to put heavy demand on transportation. And if I buy future real estate properties, should I not be buying them around directly next to highways and go train stations? Because those are going to be the hot commodity areas because you’re not gonna be able to move around the city. Just to your point, you bought in Hamilton because of proximity to your family and stuff. And if you could buy clothes, how close are you to the go train station? Hamilton?
00:46:14 There’s two of them. There was one a right downtown while like in the center of downtown. There’s one just north close to the water. So I’m probably a five minute drive.
00:46:23 Yeah. Cool. Okay. So those are like big, big things to us. So if we see this amount of population coming, I joked with everyone, I’m like everybody’s screwed because all these, this population is happening here. But it’s actually a good thing because for our economic activity in this area, more people and money slushing around generally means there’s more options
00:46:42 to economic opportunity for all of us. So although I kind of joke around like we’re all screwed, it’s actually a positive, you know,
00:46:50 I think we would want to be in an area where more people are coming into when we’re all trying to build a life for ourselves than people leaving.
00:46:57 Yeah, yeah, definitely. It’s always, it’s always the same. The people who benefit are the ones that take action are the ones that are held back by fear and that just are waiting to see because they listened to the news and they think that everything’s going to just fall apart. Then they never do anything and they’re the ones who end up being the complainer is about how their don’t make enough money in to pay too many taxes or whatever. What do you,
00:47:18 some of your friends at your age think about you having, you know, rental property and stuff like that? Is that, is that something they think about it all or not really?
00:47:26 Well, I think so. I was going to actually bring this up. I feel like, not to toot my own horn in any way, but I feel like I’m kind of setting a good example for some, some of the people around me, like my sister just bought a place. Oh good for her. Yeah. So I feel like if it weren’t for me and maybe it’s not true, but if it weren’t for me, maybe she wouldn’t have had the confidence to do it, but she knows that I’ve been there before. I’ve done it and she knows that I can help her if she needs anything. Like I have the experience have been through that, that whole thing before. Right. And uh, I’m sure that there is an impact with some of my other family as well because I have a lot of cousins and stuff. So it’s, um, I just try to set a good example and help whoever needs it.
00:48:03 Have you had any thoughts? You know, most real estate investors when they get into it for the first time, some of them panic a little bit about vacancies and thinking, oh my gosh, if I can’t find a renter, how am I going to carry this? What were some of your fears? Do you remember? Yeah, I was terrified about what specifically? Just everything that the carrying costs about. Yeah. If I. What if I don’t find a tenant or what if I don’t get the rents that I wanted and I actually ended up kind of settling for a tenant because it was vacant for so long. I took me a while to renovate with the fleas. I had to clear them all out and yeah. Um, and the renovations themselves took a while and then finding people. I had so many applications. Uh, it was, it was in the, I put it up for release in December though, which was a really bad month and I had through maybe three or four months.
00:48:49 I had like 60, 70 applicants and I just didn’t want any of them. Yeah. Why did it take so long to choose somebody? I was being very careful and careful to you meant what careful meant. They have to have good credit. I want them to have to be working not on Odsp B, which was very common because the income level wouldn’t be enough to really make rent payments regularly. Well that. Yeah, and also I’ve seen what some of the people were somewhat their homes look like. I wanted someone who kind of took care of the house a little bit. Oh, so you went to where they live to? No, not necessarily, but I’m just saying my experiences being in seeing homes that were occupied by tenants that were on Odsp and whatnot, they would smoke in the house often. Things like that. And I just felt like I took.
00:49:31 I worked so hard to get this house to where it is now. I don’t want somebody like the tenants that were there before that were hoarders and that had six dogs and you know, had the flea problems and stuff like that. So that’s why it took so long for me to find someone it good for you. And do you remember what a credit check service you were using? Did you choose neighborly thanks to you guys use neighborly. Got It. It’s a great system. Now it is, yeah. Yeah, and we’re not. We don’t really have any affiliation. Not that I know of. With neighborly, no self. I don’t think we do. No. No. Great system because really at the time I think they changed their model. Did you get a free one? Yeah, it’s pretty. I forget why they make it free. Do you pay for more data afterwards or something? I don’t know, but it’s a nice system because you’re just putting the tenant’s information with their approval. They get an email. Yeah. Why? It’s nice. It’s nice in that way, but a lot of people didn’t want to fill it out because of the long process. Right. But that’s a good screen to me because if they don’t want to go through the effort of that, then forget it. You’re not the kind of person I want
00:50:28 in my house. That’s true. But that’s also like for me before, if I found a good good tenant than I would just throw my previous brokerage. We had a, an Equifax thing where I’d pay $5 and get your credit report, so that was a little bit easier. But you’re right. If they weren’t willing to take that 10, 15 minutes to fill out the application, then they weren’t ready for the house. Yeah. I like those things. At one point, nick and I didn’t know what we were doing at all when we started and one of the first. I’m actually a rent to own. We did on the Hamilton Mountain. Um, we didn’t even let people in the house until they filled out the application on the porch because we were so clueless. Yeah. We were like, Hey, you know what, if you’re serious about this, you’ll fill out the application here and then we’ll show you the house.
00:51:08 And he said it was such a straight face that people did it and we didn’t. Looking back, we’re like, oh my gosh, how did we even ask for that? It’s ridiculous. It sounds like how I was trying to join Rock Star. Yeah, totally. Yeah. It’s amazing what you get when you ask for it. Yeah. Okay, cool. And then, um, so as, um, what’s your world view or what’s your Canadian future view like as a millennial? Do you feel when you hear someone like myself talking about the economy, like this guy’s just smoking some crack up up there, sharing this shit? No. A lot of what you say is accurate and the data is awesome. The immigration, I had no idea there was that many people coming in, so that part’s great. But to me I just feel like there’s still a lot of opportunity regardless, regardless of where you are, what your income level is, you can still make things happen and I have a podcast myself, but some of the people that enter your podcast so well off podcast.
00:51:59 Cool. Yeah. So some of the people that I’ve interviewed, they are young. They’re about my age and these guys and women too. They’re doing really well. So I, I know that people my age can still succeed in today’s market. Yeah, we. And we think that as well and I think you know that now if maybe you doubted us for a little bit, but you know, we think the world is, you know, Easter. Yeah, we’ve been. I think you also do it to be a bit funny. Something humorous myself. Sometimes when I’m like, we’re all screwed. Yeah. But uh, the biggest thing I think for you on a, on a property, something nick and I didn’t have at the beginning, but uh, what we have now is we try to keep, and I guess you have it with your credit line. We try to keep a bit of access to emergency cash for every property that we have.
00:52:44 So we try to keep a minimum of $5,000 and which might sound like some people think that’s high. Some people think that’s low, but we always felt with $5,000 available for any property. If there was a furnace that had to be replaced or a fairly significant roof problem or foundation problem, 5,000 bucks was going to be enough to get us through that problem for sure. So we’ve always operated like that. And um, it didn’t mean at the beginning that we had money in a bank account. It just meant if we had it on even a credit line that we just needed that for each property. Just kind of give us a level of comfort that’s long term. That’s the best thing you can do if you, if you grow a portfolio, you want to have some reserves. Yeah, sure. And most people will ask like, how do people
00:53:26 buy multiple properties? And George, you’re doing it, you know, everyone we’ve seen do it. They buy a property whether you started with a rental, which to me is awesome and uh, you get a bit of equity and it takes time and then you access that equity in some way and if you can be smart with it, like don’t, don’t go by some crazy cars and stuff like that, but by another property. Um, that’s kind of how you grow your asset pool. Yeah. Well the first one that I bought, I was actually considering making the move to Hamilton and living in it. That’s, that was my original thought. But then with all the fleas and all the issues that I came that I came across, I just realized it was, it would have been just way too difficult to continue paying on that mortgage at that moment.
00:54:05 And I think the, the interesting thing about what you’ve done, which is cool to me that you’re, you know, your, your, your age buying is that here at Rock Star we see a lot of people with interests in real estate in their twenties and they struggle with the down payment because, you know, you have to save some money and you need some credit and it’s not easy. And especially in Canada, that’s been made harder per property, prices have gone up, the bank has, sorry, the government’s changed mortgage rules and there’s all that stuff. Um, but then we see very few people in their thirties and it’s because often in their thirties you’re, you’re often starting a family and there are children to feed and you’re more expensive buying maybe a bigger car with four seats instead of two doors, four-door and all that kind of stuff. And then we see people start to trickle back into their forties, mid forties and stuff and say, oh my gosh, I need some real estate.
00:54:51 And we get two reactions at a time. Sometimes people think I’m, I’m not going to buy a property in my forties. And I’m always like, yes, you should absolutely buy property, buy a good property in your forties, and it’s a good. You just always want to be adding good assets into your life. That’s like our whole thing, like, forget about your income, which your income is to us as only a mechanism or a vehicle to add assets into your life. You can add assets into your life by buying them as income properties or building them. Um, you know, so an entrepreneurial kind of thing, you start a new business or something like that. Um, and in, you know, we’ve helped hundreds and thousands of people at this point in their forties buy properties and it’s been going really, really well. Although we do try to prep everybody that there could be at any time, there could be a dip in the real estate market and you don’t give up, hang on for dear life and survive it.
00:55:38 But you and your twenties are really interesting because you’ve done it. And when you buy a property in your twenties, the biggest advantage you have is time. Because if you just sit down and do nothing, that property, even if it doesn’t appreciate from here, even if it goes down a certain percentage, you pick it, it’s ultimately going to pay out to pay off its debt. Because of our population base here, you’re always going to have tenants, especially right in the middle of Hamilton and when you’re in your forties, you’re going to have an asset that is, has a lot of equity available to you or it might just have a mortgage that’s paid off depending on what you do with the mortgage schedule, extended decrease, whatever you do. And it’s going to be a brilliant time for you. One single property can change your whole financial future. And that’s what’s so cool about what you’ve done. And now I didn’t know that about your sister.
00:56:24 Um, I didn’t even know about half the stuff of the Europe doing year to year process. So it’s super cool man. Uh, so don’t be scared of it,
00:56:33 myself or nick. Hey, you tell us what you’re thinking. Oh, let me shut you down in a meeting. Okay. All right. I’ll, um, but, but, uh, any, anything else on your mind that you want to ask you? Actually, so obviously real estate is a primary focus for me, but I’m just thinking I don’t want to have all my eggs in one basket. So longterm what, what have, what are your thoughts on protecting your wealth by diversifying potentially what do you, what do you potentially diversify on or are you just completely invested in real estate?
00:57:02 Yeah, um, I’ve gotten away from the idea of diversification, although that’s discussed everywhere. I find it’s never discussed by people I meet who actually have some money. Everyone I’ve met who has some cash that they’ve been self created are all in on what they’re doing. And I don’t mean to promote real estate. I don’t even care if anyone listening to this buys real estate. Uh, you know, I believe in it obviously, but I’ve never met anyone who’s made a substantial amount of financial net worth from them from from zero with a model of diversification. I’ve only met people who have already made their money in some fashion, begin to diversify it. And I feel that, and I’m sure a lot of people are just going to like, hate me or disagree with me for from this idea, but I’ve never met anyone who said I really got wealthy by carefully diversifying my investments.
00:58:01 I’ve really, I’ve never met that person. I’ve never met that person. I’ve only met people who said, Tom, for 20 years I tripled down on my business. I worked hard and I got some good fortune come my way. And the first 10 years were harder than the next 10 years in the next 10 years got easier. But I still worked hard and by the end of it I have this and now I buy some property and I have, I don’t know, some stocks and I and I do some private lending. You’ll hear that a lot, right? I do some private lending to some investments or to some other real estate people in that kind of stuff and they’re diversifying. But I’ve never heard anyone in their twenties especially come to or come to me in their forties and say, you know what? Thank God. In my twenties I really took this diversification model and rolled it forward and I’m not saying you can’t make money with that. Absolutely not. I just have not met that person.
00:58:51 Yeah, I actually meant for like someone in your position. I totally didn’t answer what you. Oh, you did. Because I think it, it kind of solidifies the fact that we should be focusing on one thing. So for me it’s buying real estate, but once you do get to that point where like, let’s say I invest for 20 years now, do you believe that people should be diversifying at that point or you just stick with.
00:59:12 Got It. Yeah. So nick and I are pretty much open books. We have real estate. Um, I, both of us are, uh, have some precious metals in our lives and the gold and silver as an insurance
00:59:22 policy on the financial system. Um, which sounds doomsday-ish, but it’s really not to me, it’s just being realistic. Again, I’m not trying to be negative with them, just trying to be realistic. Um, and life insurance is all of a sudden become a big part of what we’re doing because from a legacy point of view and the ability to pass down some, um, some assets in the next generation, a whole life insurance policy that I made fun of for many years. It looks like it can actually have some really good tax advantages. Um, so nick and I have some life insurance policies. Nick also still has some RSPS. I don’t, I sold all my RSPS to start Rock Star to kind of fund this thing and uh, because he has some RSPS, he’s chosen to do some investments in um, financial products that are also real estate related.
01:00:10 So with like a company like Raybrook securities and doing that kind of stuff to him that’s diversification because it’s. Although it’s still in real estate, it’s not like rental properties or a student rental by western or it’s like investing in commercial real estate versus residential. Yeah. Yeah. But neither of us at this point feel we can get a good enough, we believe without an information advantage, you shouldn’t put your money somewhere. Right. And we haven’t been able to gain an information advantage on like other things that would entice us to invest in them and definitely not the stock market because I just feel like I don’t have the inside knowledge so someone else has it, so I’m further behind, but I have the inside knowledge on building this business, so rock star real estate, so I should put all my efforts and nick and I do a huge reinvestment back into this business.
01:00:59 So we look at this business as part of our diversification, if that makes any sense because it’s not actual, even though it’s still in real estate, it’s in a different kind of way. Right. Well you could sell the business at some point if you chose. There’s some equity here. Yeah. Whether it’s five bucks or 10 bucks, who knows? But yeah, that’s the idea. Right. So, um, outside of what I just explained, we’re pretty, that’s it. I mean, and we’re just plowing forward now. It might get to the point I’m 46 now and the last few years the business has finally got to the point where it’s Kinda rolling where we’re not just trying to survive like the first three or five years, so maybe in another five or 10 years we might have this discussion and then I’ll say, Hey George, you know, diversifying and these kinds of things.
01:01:44 But yeah, know, like our, our, our next biggest purchase I think you’re aware of is the commercial real estate for this business. Um, and that’s, uh, that we look at that as a different, you know, another, another real estate purchase and different kind of asset. So I don’t know if that’s too boring, but that’s what it is. And that’s what you got to do. What do you think your next move is? Just continue to buy real estate and just get creative eventually I’m going to have to get more creative and maybe find ways to leverage in a different way. Maybe through lines of credit or maybe through, I don’t know, partnering with people. We’ll see. Yeah.
01:02:20 You know, I don’t know if I was as confident as you are at your age, so dude, thanks for coming on here sharing your story. I’m sure someone listening to this is really going to enjoy hearing from someone at your age and what they’re doing, what they’re doing. So we’re gonna have to do this again. Thank you so much. Really, really appreciate this man. Thanks Tom.
01:02:36 Hey, it’s Tom again and hopefully you enjoyed that chat with George. I really think people in their twenties have a benefit to taking action because sometimes when you’re a bit younger you don’t know what you don’t know and you just plow ahead and take action and that’s what George did and that’s why it just really impressed with him as a person and what he’s doing with his real estate. So Kudos to George. Um, if you’re listening to this and you want to know what we’re doing with investors here at Rock Star, the best place to go would be rockstarinnercircle.com/member.
01:03:03 If you go to that webpage, you will see all the things that Rock Star inner circle members get. This has been a 10 year project for us. We’re super proud of the Rock Star inner circle membership, not for the content and education that we try to share and produce, but for the quality of people that make up the Rock Star inner circle membership. We are blessed and grateful to work with so many amazing people, so if you’re already a Rock Star inner circle member, thank you, and if you’re trying to figure out what we do and how we work with members, you can go to rockstarinnercircle.com/member and check it all out there. Thanks for listening everybody. We really appreciate the feedback. Keep it coming in. If you have anything for us, you can email it to firstname.lastname@example.org. That will get to us until next time. Your life, your terms.