We get way off topic to start this podcast and don’t talk about anything that remotely resembles a condo update until at least the 20min mark. But if you’re up for random updates about PRP, Surfing and Tequila mixed in with interest rate updates and a condo chat then this episode is for you. Big shout out to Mike Desormeaux and Carlo Batara who are always willing to jump into an episode without a plan. These guys have a ton of investor real estate experience and it’s always a blast catching up. Enjoy the show!
Hey everyone, it’s Tom Karadza and we haven’t done this in a little while but on this episode of The your life your term show, it’s a bit of a rock star, fireside chat, fire, sad, fireside fireside chat. Whereas myself, Carlo, my brother, Nick, and Mike, we kind of sit around and I thought we were going to dive straight into a condo talk. But we end up talking about everything except for condos for at least the first 2025 minutes. So be prepared. If you want to skip through that. Feel free to skip through to the 25 minute marker so and then we start to having a casual conversation about the condo, Toronto condo scene, or actually the condo scene and all of the Golden Horseshoe and talk about the population and interest rate stuff and the whole bit. But before that, we’re all over the map talking about surfing and tequila and DMT. And everything that just came to mind randomly. So that’s why we’re calling this one the rock star fireside chat. Hopefully you enjoy this. And look, if you are listening to this and you haven’t checked out some of the population reports that we put out, you have to go to www.rockstarinnercircle.com/reports. The latest one is Ontario’s population explosion The Untold Story, when you look at some of the data going on here, and we reference some of this during this episode of the show, the population growth that’s happening right here is completely unheard of. And when you’re from this area, until you travel around North America and come back here, you don’t quite fully appreciate the explosion in population. That’s how that’s happening right here. We had some friends recently come from the States. And they were just shaking their heads of what is happening in Toronto from how they remember it when they were working up here some 10 or 15 years ago. So this is something kind of unique that’s happening in Toronto, take a look at some of the data. And the reason this data is important as real estate investors. The population growth is obviously driving demand for properties right around the Golden Horseshoe people are moving in and need rentals and that’s what’s driving the condo market. People are families who are we’re going to try to buy in Toronto itself or moving out both North and West all around the city and the entire Golden Horseshoe. So check out this data. It’s really important sometimes I think none of us see the forest for the trees and this is an attempt to kind of bring some clarity that so you can go get those reports at rock star inner circle calm forward slash reports. And with that, let’s get on with the show.
Are you ready to live life on your terms? Is it time did 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 Karadza. Are you ready? Let’s go.
Okay, we are live, Nick, are you there?
Can Yeah, I’m here and I can hear you. So you start here. It’s already first let’s talk about the sound quality.
Let’s Mike was just talking about book I just gave Carlo bucks. If you’re listening to this I just Carla. So you’re here with Carla, Tara, Nick crowds of my younger brother who I have to keep in check. And Mike dissolvable. And Aftermath I gave Carlo this book Aftermath it started a conversation on books. And Mike, you were saying that you just showed your wife a series of books that you have. Where do you keep your books in your basement in the basement and in a box one room?
dedicated library. Notice there’s a nice shell. So there’s
other people building a library that nobody will want
more of us. And then Sarah asked us like, do you have anything from accurate? Totally, I think was the Power of Now she specifically asked for and I’m like, Yeah, I do. I brought her downstairs to the secret way to this library. And she’s like, you never come down. You never looked at all the books that I have. So most women have like purses and shoe fetishes. I got a book fetish doesn’t mean I read them all. But I feel smarter than just them being in the house at my disposal. Oh, you want to talk
about this subject? Lemon juice.
And supplements. I’d seen a picture of yourself. Yeah.
Totally. I listened to that in my Honda Civic. That changed my life that freaking book man that book was crazy. I
love that. But one like those books that might? It’s almost like it’s gotta hit you at the right time. Because you can read it five years later. You’re like was said I read piece of shit. Yeah.
I’ve recommended books to people and then read them after I’ve recommended that. Yeah. Oh my gosh.
They’re done. Yeah,
yeah. But no, that book the power of now. And then I think his next book or one of his other books was like a new world or something. Yes. That took me probably three to four minutes per page to read. Right? It was so dense. Yeah. And I remember handing it someone saying this book is going to change your life. Two weeks later, they handed it back to me, said Tom, you know, maybe this is for you, but I can’t even make any sense.
Take this month back
out of my hands. But yeah, anyway. And then I also just heard today I want to tell you guys that Michael Jordan starting at tequila, did you get yours? No. They told me that Yeah. With four or five NBA owners. Boston Celtics Milwaukee Bucks guy. I don’t know why look.
But the only reason Tom’s telling you that is he wants to show that he was ahead of the curve again. And he’s you know his his Yeah. Why he started liking tequila. That’s why everyone else is liking it now.
That’s no secret. Yeah, of course. There’s endless stories of this. Yeah.
Because people have not liked tequila for a long Yeah.
Oh, no, not until Thompson lucky. No, no, no, it’s definitely gotten a lot trendier. And. Yeah,
see. It’s just a matter of fact.
No, totally. And but there’s a there’s a podcast right now with Joe Rogan. And Dan Aykroyd if you guys will heard it. No, no, you gotta listen to the first 10 minutes of Dan Aykroyd explaining his vodka.
Who’s Dan Aykroyd again, dad.
How old are you? Any others actor comedian, okay. I remember
the name of
your old your millennial, right? Yeah, gotcha. I don’t know what a you’re not a millennial. You’re like 30 How old are you? I’m not telling
you on this podcast is a billion people listen to his podcast now.
Yeah, you’re not a millennial.
Have you heard of 1942 tequila Don Julio?
unheard of Don Julio.
No excuse you’re a millennial, but there’s no excuse not to No, no,
I know. That was the
clear bottle right now. We’re putting card. It’s gold ish gold,
Yeah. So they do not sell that at the LC do anymore.
Oh, well. I was just in Mexico. So I definitely drank a lot of that and they had to pay extra drink that or you got to have the Platinum bracelet. That’s the real deal. But the grandma looking bottle at
classes. Oh, yeah, that’s actually just some people prefer it over the Don Julio. 42. Okay. Yeah. And with different levels of the classes we will to summit in Toronto. I’m saying that because you go to all the bars and stuff. Some of the most of them will have a higher end classes will that’s more expensive than the 42. Wow.
I don’t drink I don’t drink. I don’t do any drugs. I don’t even go out at night. Yeah.
Kind of lying on the podcast. That’s what it is.
But you did go. Aren’t you just going surfing again? Are you you actually went surfing again this year or something? Yeah,
finding God the proper surf trip since I tore my Achilles and just changed my perspective on everything I’m doing again.
What was the catalyst to you going?
I like that setup, basically, about a month before. I think Rob Minton is his name. Yeah, yeah, maybe a month or two months before he walked into the office. And I was like, hey, and he was like, Hey, what’s up? I remember you. You’re the surfer. And then Nick creeps out from the back. He’s like, Nah, he works. Now. He just works. He’s a worker. He’s not a surfer. I see him every day. And I was like,
you’re actually true. Made him question. The purpose was my
feelings. And I was like, wait a minute. He’s right. I do just work. So what you’re supposed to go to Costa Rica this week? Yeah. So I’m supposed to go and try to find a flight for either Thursday or Friday, supposedly today. I was out for surfing. Yeah, just to surf and then meet with Greg and Patricia. They’re doing a mastermind and Amazon mastermind. And then partitions like you should come and I was like, Oh, it’s in Costa Rica. Definitely go.
Really great. Greg Kowalczyk. Yeah. Oh, I didn’t I don’t think I knew that.
Yeah, so that’s like a super private mastermind that they’re going on. So okay. I
didn’t know because we weren’t invited to it.
And it’s like, they’re not rocking it. They got it. Got it got and so I’m going to meet up with them right after
cool. And where were you earlier this year surfing? Was it Costa Rica?
Yeah. Costa Rica and Tim Rondo. And that’s a good spot. An amazing spot Costa Rica just in general, if you’ve never surfed before, Costa Rica has some really good beginner waves. or just in general, Nintendo is just a type of spot that’s like super touristy. And I’ve got some really good friends out there. Shout out to at least from Celt sell a surface like therapy. And he used to live here. I used to surf with him. And I literally hit him up and I was like, man, I don’t know if I can surf anymore. When I was in California in April, I surf like shit. And I was just like, Damn, I can’t just pick it up and go. And so I just trained. I’ve been training really hard. And then I went to Tim Brando met up with alias and he was like, bro, don’t tell me you can’t serve. Let’s go right now. Then we went and so he moved there from Toronto. Yeah, he actually is from what’s that country that has all the beautiful women that is involved town right now like super Venezuela, Venezuela, Venezuela. So he lived here couldn’t get stay here for he worked at a surf shop, which is funny and then couldn’t get immigration, and then got ship or basically asked to leave. Then he left and then went to Venezuela and it was the shits and then he ended up in Costa Rica, which is every surfers dream to live in Costa Rica. And now
he went run some surf school there.
Yeah, he runs a surf surf school called salt. Which means saw surf as life therapy. And that’s pretty much what we use surfing for. It’s like, our favorite thing to do. But also it’s like a good way for us to calm ourselves down and chill out. No drugs, no partying, no alcohol, just surfing.
Why do you keep saying no drugs every time? You like no drugs a lot? I feel like they do a lot of drugs.
Should I take all that back? We did.
But yeah, that’s what I’ve been up to. And I just realized when I was surfing out there, I realized, like I was, surfing means so much, so much to me that I would try to work. And I couldn’t even get like 30% of the stuff that I was doing when I was back home because I would just work. But when I would surf and do my stretches and do my meditation, I was like, wait a minute, there’s only this much time I have to do work. So
I think part of me because meditation is gotten so popular right now. I’m like this, just kind of like, Oh my gosh, I don’t want to hear anyone talking. Because everyone talks about meditation. But I mean, I do believe you need time alone with yourself, whatever that means. Whether it’s at the gym or reading a book, or reflecting on your thoughts, like whatever meditation is, but I feel like everyone’s like, well, what’s your meditation practice? Right? Yeah, are you I’m meditating 30 minutes and I’m releasing natural DMT into my brain. And you know, it’s all this kind of shit.
Did you go down and do that is good stuff I forget.
Oh, shit. Yeah, I did that. That was years ago.
That was and you like that?
I did. This is the first time I’m going to share this publicly again. Thanks for me on the spot. Tom. You don’t have you know, it’s cool. You just asked me if I did. I was going I said, Yeah. But I didn’t have back in I think 2016 or 2017 Oh, I remember that was in Peru. And I was in the Amazon for like, 1011 days. That guy’s actually sick. So I feel really bad. I was like, This white dude from Phoenix. And he lived in the Amazon for like 30 or 40 years or something. And recommended by I’m not going to call anyone out by a few people that I I look to as mentors and ended up being amazing. Like it’s not fun, in the sense where it’s like, Hey guys, you want to do some mushrooms or hang out in the forest? It’s nothing like that. It’s It’s intense work. It’s intense. Like if you if you treat it that way and I treat I’ve always thought of iwoca and all those plant medicines as inner work versus just going out to have fun. You know,
that’s how I’ve always kind of understood it and we’ve never done it like you’ve never done that either. Our mom you know that went and did it before I think anyone ever mentioned it to us in our lives. We’re going she’s she’s like
another person and I wasn’t gonna call it but she yeah well
she I think she late 60s at that point I feel like was 10 years ago she’s like I’m going to some Brazilian rain forest to meet a shaman and I’m going to do some plant medicine in the forest or a column for mother
yeah that Yeah, and that was a lot that was before we didn’t even I never even heard of it so I don’t even know but we know our mom for long enough that we know okay you do crazy shit and if you’re going to go Yeah,
so that hurt like what’s happening to him into the Amazon right now like actually really hurt mentally emotionally never even share that with anyone like I was like what the fuck are these guys doing? What do you mean all the fires that are going yeah, because they’re not they’re not natural fires no Brazilian presence a little nuts and he’s literally just creating these fires paying people to create these fires in short, like I’m obviously don’t fact check me and all these things but he’s like it needs some fact checking you know there’s there’s a lot of facts but there’s there’s a lot of factors even there’s really cool show called Patriot Act. Okay, and then with what’s his name? there? He’s part of The Daily Show. Hassan Minaj he’s not Trevor Noah comedian guy. Yeah, so he he had a whole bit about what the what the Brazilian President is doing right now that note it’s not getting any any light and lots of facts and
give me this summer he’s lighting on fire to get aid from around the world maybe no
so he before the fires even happened this was already happening on a smaller level in Brazil by the president he was basically he shut down certain segments of the government in order for to allow people to just go into the Amazon door with what they want. And and it’s it’s there were smaller scale fires that were traced back to the companies that he shut down or the entities that he shut down that would have stopped these things. And then each tree is something like ridiculous each tree has evaluated have been like $147,000 of income for Brazil. And that’s why the they can they literally chose places the land and Patriot Act breaks us down amazingly, in a funny way, but also a very serious way of like, Brazil’s messing up some shit right now.
We’re gonna plant some trees. I
mean, if you go to the street, and you go to the Amazon, it’s hard that Yeah, you can’t plant trees like the Amazon just so unique. Like it’s it’s crazy like Iquitos where I was in Peru is the largest city in the world that has no road access road or you can only not even water access. You can’t get there an airplane and like you can’t there’s no road access to get to that spot. It’s the largest city that has no no road access what’s really high or something? No, there’s just no roads. It’s in the middle of the Amazon. And like you literally get dropped off in an airplane and it says ghetto It looks like you’re in a major city but all the roads they are shipped through either airplanes or these massive shipping truck. What are they called ships containers. And when you see these in the Amazon, you’re like are in the ocean. It’s kind of like how people look at
sorry, Lake Ontario. Rewind for a second all these ships are flown in
this, you know, not the ships, the cars. Oh, I don’t actually know logistically how those ships get in there. But there, you know when you picture those giant shipping container ships crossing the ocean, those are all in Iquitos in the Amazon in the Amazon rainforest in the middle by Iquitos.
I feel like you just gave me seven days worth of research that I need on the Brazilian rain forest and no
but not the Peru so Peru has
the majority influence when you saw the ship No.
I was actually nervous and shit. I was like, What am I doing? What did I sign
up? However? Turn the mics down. I swear for this conversation. Turn the mic. Yeah. Are you stoned? Right?
You know, I wish that’s happening.
Okay, and just one last thing you know, it’s trendy right now to go to some things where you don’t even take iOS got to where it does I was gonna release the empty No. So what it right No,
no. So what I want to does is it induces GMT and then it shuts down me Oh, I believe which is the chemical it’s also naturally producing your body that stops DMT from reacting in your body. Okay, so DOT runs through so what’s the
trend with some of these events or conferences where you go to learn how to release the empty natural yourself?
Oh, there’s there’s a few things. There’s like breathing, which actually can like that’s been around for a long time hollow tropic breathing. I’ve been watching that for a while. Have you
found that? Like it’s getting trend that hold? Absolutely.
And that’s why I kept it a secret that I did. I watched it for a long time because everyone be like, yeah, you look like yeah, you know. So that’s why I just like Hey, guys, this is inner work for me. I’m not going to share it with everyone. But everyone kind of knows now
and then surfing again. What next week you said
yeah, I hope then I can get a flight either between Thursday to Monday. Nice,
man. I’m happy if I you do need to go surfing. I’m happy for you for real. Thanks, man. Yeah, it’s it’s important. And then Mike, what are you what’s going on with you? Because like you’re telling me a little bit you might say you can’t see Mike, if you’re listening to this, obviously.
Oh, yeah, we don’t
know video anymore. We’re gonna do video in the new office. We have too much going on. And we’re just not doing video temporarily.
And I dressed up to the last time I didn’t dress up.
Yeah, thank you. Yeah. Dressed up with your skull dress shirt.
You can’t see this, but you are wearing a dress shirt. But it does have skulls. But it does look nice. But Mike walks in here with bandages all over his body. So I don’t know what the heck is going on the US or
what to say Tom’s making fun of Carl.
Anyone? I’m just like, what the heck is going on? Because I know this PRP, I’m offended.
Yeah, shit. Literally over an hour ago. Yeah, I got my first PRP injection for the ACL that I tore. So
Mike’s basically, Kobe Bryant
so often walk through this when they extract blood from you. Yeah. So this is the surgeon that did the work on my knee. So he Yeah, he just basically lay down on the bed extract blood from you. He puts that through a centrifuge that pulls out this.
Are you lying there while he’s centered? Like you’re here? I heard the here blood spinning around. Yes.
Yeah. Well, here, you don’t necessarily hear the blood. You hear the machine going? Okay. Yeah. And then he comes back out. So in the syringe now is the second range from white to Simon color. And it’s these platelets that like it’s your own? It’s so it’s your own blood. And from there, these growth factors are extracted out,
they told you
a long way of saying you took steroids.
This is clearly experimental, it’s not covered, like you have to pay out of pocket. But in that case, years ago, hold on let him finish. Yeah, no, and that gets injected into the injury site. So it’s very common right now for people that have a shoulder issues,
tennis elbow, stem cells or anything like that. No, those different little concentration of your blood that has more plasma, what did you say
it their growth plate, platelet rich plasma, its growth factors for healing. So it’s your own blood. And so it’s just basically a higher concentration that they’re injecting directly into the injured site. So in my case, had surgery three months ago with the replacement ACL, this is to help with that healing. Because the knee especially it’s encapsulated, there’s not a lot of blood flow there. And that’s why there’s no repair on an ACL
I think Mike should fly to the states and go get some growth hormone injected I know
I told my I want to fly to Panama with them because almost us doctors are going to Panama because they’re losing their license for what they’re doing in the States. I want to go to Panama to those us doctors remember we heard about those guys that were injecting stem cells Mel Gibson
Yeah, that Justin’s dad
That’s right. That was another Joe Rogan podcast remote gives his dad was going down there Yeah, totally want to do that stuff. Yeah, so when you go I’ll just know Carlos. I want to go to surfing in Panama Absolutely. Check all the boxes Yes sir. burden ourselves good, but
that’s like 10 times the price of surfing of surf trip. Yeah. But that’s crazy. I didn’t know you can walk right out when you get PRP. I was literally an hour and a half ago. Wow.
Yeah, it just feels like a lot of pressure and then he right now but it’ll subside
So do they give you like
hopefully this I could rewind. So it feels like crap. Yeah, it doesn’t Olympic
okay, but apparently in two days it’s gonna start feeling better Yeah, yeah. Okay,
so they did they give you history behind it because the only thing I know about PRP is Kobe Bryant did it in the offseason. And he’d had to go to Germany because it wasn’t legal here in a state Yeah. He would go to Germany I didn’t realize you can just walk right out
here and so it’s just supposed to speed your healing correct. Yeah. Holy crap. Yeah. Wow. Okay, you guys are making I’m doing some stuff right now where I’m doing an eight hour eating window from like 12 to eight and just playing around with that and and my stuff seems so boring compared to what you’re talking about and what you’re I did talk to Dr. Cowan today about it though. And he thinks I’m on the verge of either making it through it and this is really working well for me or crashing really hard. So tomorrow I have to take the the cortisol test throughout the day you measure your cortisol levels and that little split test and again results back so do that tomorrow and see what happens with that. But and then Nick you don’t have any injuries. Are you taking any drugs or anything?
No, but it sounds like I’m missing I’m just looking
around like does this guy have any bandage?
I’m gonna fly to Costa Rica go surfing go to go to the Amazon to see my last stop just an old football or not a football game or local hospital on the way home? That’s my next week schedule. So if you’re looking for me that’s that’s where I’ll be. Did you throw some tequila into that?
Yeah, I’ll be drinking
tequila the whole time. We have to order this Don Julio 1942 kill tequila now by the case is what Mike was saying and Nick was saying because they don’t sell it by the bottle of the at the liquor store. Mike Of course always has a connection so Mike has a friend who owns a restaurant So through this guy we bought a case of this
you need a license to get it because I went to liquor store looking for the guys I have a case in the back of my great get it for me and he’s like no you need a license you need to like a reseller license to be able to get get it now did and you did it before before last Christmas. He didn’t change it around the new year.
I was gonna say I’ve definitely seen it before but
they just changed just LCP Oh that’s a challenge tells me oh man he
trying the best part of this is IK the cases right? He’s like, okay, send them the invoice over 1200 bucks. is like this is cheaper than that. The LCA
deal, man. It’s amazing. I thought it was 12 bucks.
Oh, that’s why that’s why I swear to God. 30 minutes later, not even I get a text from Nick. Hey, do you want to split this case? Sure. I’ll split
the case. I don’t even know how many bottles I’m splitting. I thought I was getting six bottles. I didn’t know the case was six bottles. three bottles and Nick was trying to dump them on his brother.
I went downstairs I found out I still have three bottles
perfect time for
you know I will save that kid will not we have to save the case will save a few balls for the new office once it’s falling apart.
Everybody come in with Uber so with the amount
of glass we have in that office is it cannot wow for
the amount of know them the amount of money that’s offices costing us we were joking. No one’s allowed to touch anything.
Plastic wrap everything like it.
Look at it the opposite you walk out
the gym when you go to the gym, you gotta wipe down your furniture YW equipment after you get off it. You gotta do.
We’re gonna have furniture, Wet Ones everywhere.
Actually, with the cost of the interior build out, there’s gonna we’re gonna start a new trend. There are no furniture, you just use the floor. Yeah, it’s a really it’s a really modern feel.
Nice last model. It’s
like It’s like yoga, right? Because then you sitting then you’re like one with the earth
and you take your shoes off everyone
whether they want it or not, because we’re not paying for chairs,
a standing desk, just hold their laptop in one hand and type with the other one. That’s great.
Listen, I have to share some news that happened in the financial markets today before we get on to this condo talk, because today, the Fed had to go in and throw $53 billion into the market. They haven’t done that in 10 years. And that’s big deal. 53 billion. Yeah, $53 billion. They haven’t done it in 10 years. They weren’t supposed to do it. This is an emergency thing. And in American American, so it’s real money. And the feds going to apparently so by the time anyone’s listening to this, they’ll have already made their decision but they meet tomorrow. I think they’re going to cut rates again. And I’ll just thinking what if they cut rates? So I think the fed fund rate I think it’s a 2% does anyone know? No, that’s too too geeky.
Just over I thought it was too recorder Okay, there’s something
very wrong if they do a quarter point cut once a quarter then for two years, it would take two years to go to get the the rate right down to zero, right? If they if it wasn’t an emergency, and they just did that, which means we could have two more years of a crazy stock market like there’s nothing crazy that hits the market and they just keep lowering the rates they would kind of juice the stock market I gotta figure so it could be two years like Trump might have because what wins his election next year? next fall so he might if they keep producing rates that’s why he’s on them he wants a nice
reelection Sure. So it is 2.25 that’s got dropped 2.25 in the summer.
Okay, so now if they drop it again or probably go to two so yeah, they got two years in a bit if they do a quarter point a quarter dropping it so this guy might get a raging economy for another couple years like this thing might have legs if you keep producing rates because they can do that for to liquidity thing. That’s freaky, because that’s what caused that freeze up and always right yeah, and avoid I think they stopped doing those things in oh nine but started in Norway. Yeah. And I know what I’ve seen the lack of liquidity, which was what caused the real problems with the barristers and stuff like that there were just that’s where Yeah, well all the articles are coming out today saying yeah, there’s a little bit lacking cash in the system because the feds been tightening up a little bit and but all the comments on the Wall Street Journal New York Times about today’s action are that there’s something else going on in the market that no one seems to exactly know and like that’s all that said.
So I remember when used to like buy a stock and like based on like the fundamentals of the business and you know like profit margin and customer base and stuff now you just buy a stock Can you just like I don’t know hopefully like something there’s no like crazy thing that happens and everything keeps going up.
Yeah And so here’s what I want to get your all your opinion on is that if the if the Fed cuts rates Bank of Canada is going to follow so the Bank of Canada is going to cut rates we still seem to have a lot of demand here actually. was a Carl or Mike Which one of you guys knows how much demand was on that condo that went out? Both of us Yeah, can you Yeah, what can you describe that situation where that condo wasn’t? How what was the action on it? So what yeah,
it’s kind of unofficial because we’re not supposed to for context Galleria Park. Yeah, go to park. Raise. One of the
biggest went from unofficial not supposed to just need me.
I think we can share it. Yeah.
I will. I will. Okay, Mike.
Mike’s gonna share cuz he’s
the high 200 available units. So yeah, to 89 to 90, something like that. There was over 2000
just under two that are right around 2000. Just
under 300 units to 90. Yeah. I just
wait. Sorry. Gotta recap this. So there’s just under 300 units. Yeah. And there was just about 2000 worksheets where people were putting offers on these things. Yes.
I don’t know. No comment. That’s the Yeah, okay. Okay. So there was a lot there’s a lot there was almost 10 times the amount
but in all fairness it was it was a unique it is a unique development while Yeah,
can you describe it?
Yep, different and DuPont phase one of eight buildings to go up. Part of the negotiations with the city’s was with the city was that an eight acre park had to be built Galleria mall was going to be completely revamped to be higher end boutique. And the Emerson Community Center was going to be rebuilt to be one of the second largest well to be the second largest community center in Toronto. So to have that, like, I was downtown, we have a friend a mutual friend that came down from California. Couple weeks ago, I went downtown with my wife. I grew up in Toronto. I now live in ofo. But going back downtown Toronto nowadays.
Yeah. Smell city.
Yeah, no, that was that. We definitely commented, Hey, no offense. Live in Toronto. But yeah, just
millions and millions of
people living in Toronto,
you guys all smell. But
yeah, there’s to have that in your in your backyard to have that park community center and boutique mall. Like there’s nothing like that in the city. And this is just outside of the core too. So you’re not in that house. The bar keeps growing? It does. Yeah.
Right. Just like how when my parents moved to Oakville, none of my friends would come to a half my friends live in Oakville. And it’s, you know, the core just
even Well, to me, I grew up on the east side of Mississauga, not even in the city. And, and Oprah was the edge of the earth. Yeah, like, I might go all the way up to Oh, it was like a real problem in my life to go back to the farm, you know,
and that’s the same way that I was, we were talking about in our presentation, gallery Park, if you don’t live in the city, you don’t realize that each block is a completely different neighborhood and calls for different type of profiling. So like, people from King West don’t really like to people from Queen West that people every everyone really there’s politics, like Absolutely. And then like, oh, where do you people automatically profile you when you tell them where you live? That’s why, you know, you guys are living ofo people profile you guys too. Right? And depending on what part of the neighborhood or what neighborhood in Toronto you live in, then you get profile, but different. And DuPont going back to the project, super unique, they’re going to revamp a whole block that, you know, eight, eight buildings like Mike was saying, eight acre park.
Okay, so walk is for people who have never bought condos before. Can you walk through it? Like how does that work? How does the whole launch work? How did these worksheets work? Can you just explain that a little bit as the paint that picture? Yeah,
first, it’s always different. And it’s changed. There’s no rules to this. It’s always changing. It’s always based on the market, just like you know, a little bit off topic, but not really just like any business, you have to move with the market. So I’ll backtrack all the way to the first condo project ever went to? It was either Marilyn Monroe, one of the first phases where you had to literally walk so
in Mississauga curvy building.
Yeah, yeah, exactly how everyone discovered that curvy building anyway. So yeah, you would be given what’s called the packages with the price list and layouts. And then we will get a certain amount of time to review it. And then go to your clients and say, Okay,
so the builder says, hey, you’re a real estate agent. Yeah, you can have these packages.
Yes. So even before that there was exclusive invites to for people who have sold in the past or can provide some sort of proof that we’re going to be able to sell. And the first one I went to, I got invited. I basically weaseled my way in. I wasn’t I was like, 19 years old, you hustled? Yeah, there was a guy, I don’t know, if he’s still in the game. I don’t want to put him on blast either. So let’s call him Jacob. So Jacob, the way I got into him was crazy story is he actually got a DUI. And he was like, the only way I’m going to end long story short, he was allowed to keep his license if he never drove. So that’s why he’s like, I have to move to Toronto. And then he started selling condos. And they just would walk or take taxis. And he was the first one that he was allowed to keep his
license if he never drove
Yeah, for X amount of time, like and he was like if you get caught driving your license be taken away. And so he’s the one who actually got me into the condo game. And he was like, hey, come, come with me. Give me a ride to Toronto. And, and then he showed me like, hey, like these projects, blah, blah. There’s one going to happen in Mississauga. And then he kind of got me into that stuff. So he
had an inside connection.
Yeah, based on all the stuff he was doing in Toronto, okay. And then he got me and so and then you get packages and worksheets, and you get to review it. And in this is the good old days were condos, 130,000 dollars. And then you have two weeks or a week to review like 10 days. And then you have the launch date, let’s usually like on a Saturday.
So you get the packages, you can share them with your clients or any condo buyers that you might know. Yeah, got it. Okay.
And it was internet wasn’t a an everyday communication type thing yet. And so I remember I would literally go to all the businesses and locally and be like, Hey, you guys want to invest in this condo, blah, blah. And let’s say we got it. What’s today, Tuesday. So let’s say it’s next Saturday, the event, we’d have to bring all of our clients to that event on Saturday and line up outside. So if I had 15 people, I would really bring them all and thinking about this and actually makes it the most fair, because you know that the builders in line, whoever shows up first you get first access based on the invite. So it’s really an exclusive group like 50 people. And then you literally let’s say you guys are my clients, you for whoever shows up first. And you get to choose first, you
know, there’s only three of us sitting No.
Sorry, who’s the first person
to say you can see that person sitting next to my shit?
Like, okay, go on. So you so you go with your people. Yeah. And then so doors open?
Yeah, you go or I guess. We go.
And then there’s a giant board. And it shows all the units. So then us for before, like us three, the 10 days before, we’re labeling which units we like. And then we walk up to the thing. The board like the Rockstar board their show all the units and let’s say next first and I’d be like, hey, Nick, your top choice. It’s got a red dot and it’s not available, your second choice. It’s available, you want it? And then we’ll be like, okay, we want this unit blah, blah, they put a red sticker on it, then you’d go Wait, and they drop your paperwork. And then Mike would be next to me like this is our your first choice. I really
do like that way. It didn’t mean that everyone had to go there. But I kind of do it
that way. It just meant we were at the sales office for like 14 hours.
Yeah, damn is the main folk. That’s the way they move with their paperwork. So
yeah, so definitely, while you really don’t know what you’re signing, but you feel pressured that you got to sign a deal. Because it’s like, a dp I know,
ya know. And then that transformed into the board to fax it in on a certain date and time, and then turned into emails.
Okay, and what it is now. So on this one that just went down that we were talking about, yeah, now it’s not go there at all. It’s if you have interest, you fill out a little worksheet with basically your name.
Still got to find the VIP broker to get you in.
Okay, so you need someone who has access? Yeah, you fill out a worksheet the basically what’s on the worksheet, it’s just your name, and like how much you’re willing to spend?
Yeah, not even that it’s a it’s, every worksheet will be a little bit different. But the basics are covered your information, and then your top five choices, as an example, top three to five choices of
condo units or floors, or units and floor units and floors. And then you just send those over to the builder.
Yeah, this project, okay, you send it over, they gave they gave us a specific portal to log in and submit our worksheets. And it was open for a certain day, like three days, I believe. And then yeah, and then going, I spoke with some of the the sales team at the sales center. And they did a full lottery, which was kind of cool, but kind of like, shit, that sucks. Because you know, which we try to push to get used to be
kind of suck because they can say they did a lottery but who’s really going to audit that and they So basically, they just gave him the right to pick who they want. They’ve condos to. Yeah, and it’s their project. So they control it. So good for them. Yeah, but on the
outside, so Yeah, I know. And then but I did speak to other people that I know that are big players and condos. Okay, so I’m gonna get units either. So
really, we’re definitely
not happy. But same time. It’s like, that’s why it’s so what I’ve been telling people. And Mike and I’ve been talking about it. And what we’ve been telling people is, it’s kind of like being in multiple offers. If you’re a multiple offers, just yet, you have a hard cap, you and just put your budget, just put what you can afford, and walk away and just see what happens. But the benefit between that and this is you this is not a firm deal. Like you still have 10 days from the day you sign. Got your offer.
Got it. And really if they select your name, it’s just a worksheet you haven’t actually signed any paperwork or exactly which is the risk I guess to the builder. Yeah, they don’t want to call people who are not real and all you know Yeah, thanks for I got selected but forget I don’t want the unit.
Well, what is it like 25% of people like and not even just from the worksheet to the document. So after people send the documents is sending like one quarter to one third of people to receive back Oh, yeah, but
yeah, so buyer’s remorse, the 10 day cooling off period, people are like, screw it.
Yeah. Because you don’t know your actual price until you show up and you sign your document. So like, even if
I know it was awesome right now,
just give us some money.
And this and again, this isn’t enough to anyone at this product or anything. But this was probably one of the most detailed priceless I’ve ever seen, because they knew the demand was so high. I think it was just a rush. They were trying to get it out. I don’t think it was like a ploy. It was more like okay, one bedroom start at this price. But there was like 17, one bedroom layouts, all different square foot to
premium per floor. So we didn’t know.
Yeah, we don’t know what the premium floor of a certain
height but we had no idea.
Yeah. Okay. And then Nick, is that similar to what you went through on that recent purchase? You did? Know You went?
You went to different I went What?
It was like a Saturday you had to go? It was like
you but I was just going to sign the papers. So I already knew that. I got it. So I submitted a worksheet. Okay, there was an allocation. You had it. So you were going in on that Saturday? Yeah, I was going and just signed the paperwork. Okay, when you saw us,
so when you got allocated unit? Did they tell you your price right away?
You know, it wouldn’t be good. If I remember that type of stuff. I know. I was gonna say, I’m pretty sure I maybe 15 years ago, I’m pretty sure I did. I think I didn’t know the price. Maybe maybe not the exact price. I feel like you knew the price. Doesn’t feel like I want to say yes, yeah, it’s
usually a range. So like, you won’t know, like, everyone can do their calculations. But anyway, that’s
Yeah, I’m pretty sure I knew the first I just didn’t know.
I think there was going to be like some additional Yeah, there was some additional costs and Development Charges and ended up being a little bit not even though there was something else. I mean, he was like parking or locker. That type of stuff. I didn’t know that. condo fees, you know, typical stuff. So I didn’t have I didn’t have all the details. Yeah, I think overall, I had the price of that. Oh, that’s what it was. It was an it was an end unit what the premium was for an end unit. That’s that’s what I didn’t know that type of stuff.
But that’s right. Because it was like a condo townhome that you were buying. Yeah, sorry. It wasn’t a condo.
So if you had to guess, how different was the price that when you actually sign from what if you even did the countdown
was pretty close. Okay, it was really, really close. But that was another project where they announced how many floors and then they GB I totally forgot. It’s funny. I was thinking about that when you were telling that story Carlo and I totally forget, but but I know like two weeks before closing they added multiple floors to the building based on the demand they had. So that’s what they did. And I forget the numbers, I’ll tell bunch of them. So but it wasn’t like the added one. They added you know, three, four or five, something like that. I want to say three or four. But
to layer on top of that. I told Tom before we started recording that a lot of people don’t know that. The Maryland road project absolute condos, was only supposed to be 150 story building. And it actually changed to 250 story building based on the VIP selling X amount of percentage.
Yeah, well, that’s what these guys I remember that. That wasn’t like the all the papers. That sales officer was crazy. It was nuts. It was nuts.
How many buildings went up on that corner for Oh, yeah, five. So there’s 330 storey buildings and 250 storey buildings there. Yeah, it was only supposed to be 436 storey buildings and 150 story building. It’s so crazy sometimes because you buy these like I was in one of the early phases before other buildings were built. And beautiful view here. Yeah, this is great. Then the other building goes up. You’re like, Oh, this is looking to their shade.
What’s happened so price per square foot. Because I know in Toronto, we’re just seeing crazy stuff. What’s the stuff that you saw an oak? Do you guys remember price per square foot in this Oakville, Michael?
This district? Yeah. 695 average? Wow.
Yeah. Why are you saying wow, I just, again, just
I don’t realize that the information that I know like so when I first started selling condos was about under $200 a square foot in Mississauga. And it was about 400 Square dollars a square foot in Toronto
and hear about that. What was
that one? Okay, so now In comparison, so 695 per square foot for this one. This is what Braunton done NASA. Further east. Yeah,
I think it’s near
Dundas and 695 per square foot. And you’re what were the Toronto ones that just had that we just talked about? No, they were nine.
Yeah. 965 Yeah,
that’s because I’m not down like in the downtown.
Yeah. Cuz in the downtown Corey be over. 1014 Yeah, so 965. And that’s why you guys liked it. Because at 965 you’re like, Hey, this is pretty good.
Yeah. Because eventually, if people that are paying 14 are like, Look, I’m not going to pay 14 to live here. I’d rather go pay 965 the commutes not really that bad. There’s transit. It’s not that far. I can save that much money and go there. It’s no different than what people move out to the suburbs, right, though, like so it’s the same type of principle. You’re seeing it all those areas no different than what people will leave Mississauga to move to St. Catherine’s or leave Markham to move to Whitby or whatever right. So
and then even from a marketing perspective, they there’s nothing better than for them to put a billboard up that gallery Oh, one sold out in one day.
Because that’s seven more buildings to go exactly. And
the hype is real man like that. When when people do that.
People go crazy. Like if you actually go to the sale center, your likelihood
Oh, yeah, people getting your Radha people just
lose your mind you’re not likely going to rescind when you actually go to the sales and you see the the chaos that people deal with on a daily basis. You’re not getting that’s why people want you
to go to the sales. So what are you seeing in Toronto right now? How many condo developments? Because they’re not all selling out like that? No. So like, is this very different that you’re seeing there? Sure, for sure. Describe what you’re seeing out there?
Well, one, there’s not a lot of masterplan communities anymore, which is
cool, Mike, that’s why you like this one so much.
Yeah, the big master plan community. And there’s a lot of stats that will share later with two or more, or two or less or four more projects and how they appreciate depreciation on them or is way different. Like how even in city place versus the whole all the condos in in that CC one or two district. There’s like a 40% increase in appreciation in projects that have four more buildings. So which doesn’t happen often. And then to backtrack to most projects are not selling out anymore. I don’t know it’s just too expensive.
So and those would be the individual condo
Yeah, it could be wrong. But again, these builders they don’t share a lot of information
everywhere costs and it’s getting passed down to the consumer. So yeah, you got guys like Brad lamb that’s building in Toronto now no longer building in Toronto is building out in Hamilton. Yes, you can pick up the lead for a lot less and still build a nice building.
But yeah, I haven’t seen a sold out built like billboard go up in front of a sales center in the same weekend that they released in a long time.
So what’s happening I
know that’s also not but not the same weekend they released like what he said, yeah, that type of stuffs not normal. No, like that’s not like that sign to me is something I want to stay away from that because it’s not a sign of a healthy market. Maybe I get it and maybe the market keeps going up. But I prefer I’m old school boring. Yeah, I prefer when the dynamics are good. Like, I know a guy that launched a project when he launched it I guess a few months ago now and they’re like 80% or 85% which is which is totally good. They’re getting financing they’re going to have now they get to increase their the rates of these last units and you know, but that’s kind of like a healthier. I don’t know, I saw you were gonna say what you’re seeing same day. Yeah, we had the same thing at como in stony creek that sold out the weekend.
Yeah. So it’s the lowest price
per square foot out there. Hi six hundreds but again,
600 stony waterfront, okay, location just off of land there.
It’s a great location, but it’s still like Rodrigue. Yeah, yep.
I surf right there by the water treatment. And
when you say Stoney Creek just surface Ontario by stone just so you’re not totally offense of offending anyone. You mean just distance from Toronto, not Stoney Creek. I know.
I love Stoney Creek out there. I know. I just
like you’re like oh my god.
I’m just kidding. I love the whole Golden Horseshoe. No, I’m just yeah, so thank you, Nick. But I just really mean Holy shit. Like that’s all from all the way from Toronto to Stoney Creek and that’s the price per square foot. So the old Phil one looks pretty attractive. And it looks pretty good. And compared to what you just
had some ones on the wall, you know, depending on location.
I’m just kind of born like, can the demand continue for this? And it looks like yeah, it can. Yeah, I don’t know the biggest threat. So the biggest threat stall like if I just think the biggest threats to the condo stuff. Its population growth and monetary policy. Because if you know there’s no access to credit, yeah, and real estate suffers. if interest rates go up, real estate suffers. And if the population slows down, the growth has been insane. If it slows down, it suffers and that’s why we watch all this stuff so closely. It’s why we’re also watching purpose built rentals because once
more purpose boat rentals are coming onto the market which there’s way more in the pipeline and there has been for the last like 30 years, which
is still a tiny amount
no no it’s it’s increasing. It’s still Yeah, relative to things but it’s much like it’s it’s an impactful amount because there’s actually some numbers beside it. Yeah, it’s not zero Yeah, yes. And it’s not like 3000 units it’s like 10s of thousands of years crossing 100 you know so like so as those come on the not hundred sorry 900 cells Tennessee but anyway so as those come on the market that will change things because the condos really become the apartment building. Yeah, like that. So it’s serving a dual purpose it’s serving as the condo building and the apartment is it become the apartment building or has it become the new starter home? Because I think there’s a little different I think it depends on city Yeah, I would say up until a few years ago maybe not the new starter home but as of a few years ago probably some overlap but that was saying it serves as a condo building and an apartment building so it’s a dual purpose when I say condo building I mean people are buying it for like their own you know their own residence. right but in the past you weren’t getting the condos as as much as like the percentage of condos being rented wasn’t as high right? That’s what’s changed that the demand so you can buy these things and rent them a lot. And to be honest to the percentage of people buying them as a starter home wasn’t as high either. So so so both things combined is just it’s caused demand increased way faster than they can keep up with supply.
Yeah, and there’s some big masterplan stuff coming up Nick we saw the whole the I don’t know the name of it, but you know, random for credit. How many freaking buildings they’re going to put up on all those
down? What was that the gas plant there? Was it like a coal coal plant? Yeah,
whatever there was some industrial there that they’re turning around.
She looks nice when we saw the we saw that. You know the park artistic renderings of it looks amazing. So I don’t know what people are
doing in the little creek. They build up to it looks beautiful stink. That place stinks.
not like not like terribly don’t hang out there but it actually physically stinks in the summertime.
Does it like the water? Sorry, go surfing their time.
I’m surf there too. It’s disguise everybody
at this point. Everybody.
This is something that also happens in Oakville
you can have ultra lights pretty serious tension the inside summer nights. Yeah,
that’s what I’m saying. Like by poor credit. It’s it’s the same. Yeah. And you’re paying millions of dollars to live right by there. So it’s tricky.
I just had Mike I never got a chance to ask you there. The price per square foot on the Brad lamp stuff, the TV city condos. That was a few years ago, they were sold now Do you remember price per square foot? So it was expensive back then it was 670 per square foot? Today standards that would be for right where those were,
where they are the amenities are they had a pool as well, too. So two towers, right downtown, all glass condos, like there’s nothing like that that exists even today. in
Hamilton don’t have any answers. He doesn’t exist because there’s still a building.
You eventually did redo that whole harbor front, you know what that whole big mastermind community, like I know, the big players behind it are raising funds gets released. So that’s gonna be big, I feel like that’s going to be a huge opportunity for a lot of investors.
So what happens to the steel, they all the steel plants or the steel plans, I just drive by them like we should
do another I installed an oracle database in the middle of one of those steel plants. And I had somebody they dropped in a new IBM server. And I was like, the guy who came from Oracle to like install the software on it. And they were playing solitaire on it like these, these steel worker dudes were playing solitaire on this beautiful IBM server that was like the size of half a car. And like, these guys are just messing around with the server crazy. But we have one of the guys that’s kind of working on the behind the scenes on that out at one of the events last year. Maybe that’s right, I forgot one of the one of the electric terms event, we should probably revisit that and probably insightful to see where it is now. Yeah, yeah. So I just wanted your take, do you guys think population continues? The biggest thing I can see trending right now is that after Canada arrested the Weiwei professional, I think she was a CFO of Huawei or something about a year ago. Apparently, Chinese tourism into Canada and immigration to Canada is somewhat down in the last 12 months. But I don’t have a data. That’s just what I’m starting to see in the media. So I’m really interested in our immigration data this year. Because if you listening to this, you should know that as of March 2018 19, this year, we released last year’s immigration data, and we had 425,000 immigrants on a target amount of 310,000. So we went over by 100,000. And that’s part of the reason the population growth in this country is just absolutely exploding.
See, I think even so you with what you’re saying about the the, you know, the Chinese kind of current political situation, if you even remove all or a large percentage of Chinese immigration, which I mean, it’s no secret, there’s a lot of lines that have been flown in from that is coming from China, right in different areas of Canada. So listen, that number goes back down to 300. That’s still a big number. And projections are that number is the the four hundreds even going to kind of grow in future years. But let’s say comes back down to 300. It’s still a very solid number. So it’s kind of you know, I think it I think it might continue unless there’s other global trade changes, because compared to other parts of the world, we’re still a wonderful place to live winter or not. And the but the only thing is, I just hope that regardless of you know who wins the election, they don’t mess around with the immigration policies too much like we have such a good immigration system. If they start just opening it why to like, hey, Why doesn’t anyone come to Canada? I personally don’t think you know, that’s the best way because we’ve we’ve we’ve appoints we selfishly had a pretty good, great immigration system. Why it’s worked well for Canada, like I mean, like, Look, man, like we’ve lost our parents and how many people? How many people from the States come to Toronto? I mean, I’ve had multiple American friends come strong. They’re like, man, like the multiculturalism in Toronto was nuts. And it’s not an it works out very well, compared to a lot of other areas. We recently had one American coming. We didn’t like the multi culture, we won’t say his name. But But yeah, genuinely, it’s awesome. So but but that’s what I mean. So like the current points based system is ism. I just hope that that stays in place. And it doesn’t shift into a little bit of a different, different way for kind of evaluating who gets into the country.
There’s also no real exodus of Canadians leaving the Golden Horseshoe like I don’t know really have anyone that has packed up somewhere else.
We’ve all Hey, out this way would be better.
Yeah, if you’re born here, it’s like most of the people I know if you’re born in Toronto, you now live in like, Mississauga, Oakfield Milton some wealth. Maybe you moved to London. And that was like, Whoa, you moved out to London. Yeah. Even though we’re seeing more and more of that show. You’re right. Everyone’s kind of still around the Golden Horseshoe somewhere.
If oil comes back there, you’ll see more jobs going because remember, when, when, in Alberta, when oil was big, there was more and more people going on to Alberta? Because there was money there. Yeah. Good money. So that that changes again, you’ll see more of that again. Yeah.
So they were leaving Ontario, but not fleeing the country. But as a local real estate investor, he sure that’s it just matters that even during that time, because Nick and I had some rent own stuff that was happening where people were, remember there’s one guy I think was an investor we were working with got a job in Fort McMurray just walked away from a rental because like, Hey, I’m just gonna crush it with my income out there. Forget it. And the investor was fine with it. But yeah, maybe we start seeing that kind of stuff again, who knows.
But even then, when, when the other parts of the country were doing that, like we still had a very healthy thing. We still had our rate my slow it was actually even better. It was a nice, solid steady was awesome. You know what I mean? Because those that breeds stability in the market when it’s like, what it’s like that it was, so it was nice. Now it’s a little bit kind of, I guess it came back, it kind of settled down. But remember in what was a 27? What was the crazy spring 20 1726 2017? You could buy something for a million in February and sell it for 1.5 in April.
Well, Mike, what percent was really going over on offers and not winning deals. I feel like you were only 30% over now.
Yeah. In some cases.
Yeah. 30% over and and losing out on deals. Yeah, that was great. The
million dollar average price in Toronto 30% overs a lot.
Yeah, these were investment property. So they were probably on properties that were like what, like 450? grand?
Yeah, they were so surprised. 100 grand.
Yeah, totally. Yeah. Yeah. But so its population. We don’t think there’s an imminent threat of population just collapsing in this area.
My perspective is a little bit different. You guys are good with that ends and stats and stuff. But just traveling so much. It’s kind of like what you’re talking about. People come to Toronto, and they have no idea that it’s like this, that it’s so cool that it’s diverse that we have every type of country in our city. We have it is cool. The restaurants. Yeah,
because of all the different cultures, all the different foods that I just had. My gosh, I saw. Yes. I’m starting to pick up on that. But somebody I was at a conference in San Diego. Nick, remember this might remember me to you were there and some guy stops me like Tom Tom remember me and I totally didn’t remember the guy was a guy from like Iowa. Okay, Iowa. Iowa. Iowa, Iowa. Hi, Iowa. I don’t know Idaho. Maybe that’s Stoney Creek, right? She’s, and he’s like, just think they’re too. Oh, man. He goes Tom, Tom. I remember I consulted with you guys for a couple days. He was like a CRM consultant that helped us out with some of our database stuff. Okay. And he’s like, you took me a place to eat. It was a food and it was called sure my my guy went back home. I told everybody about shawarma. He goes, we don’t have a single swarm a place in my name like city and I’m like, dude, you can’t get shawarma. I’m like, what’s a rock? That sucks. We have every week man
on every block.
If a week goes by, and I don’t have swarm, there’s a problem. But
I’m you don’t realize it until we hear it.
So sorry. Yeah, thanks back to your point. So you’re saying that Yeah, we have it going on here.
Yeah, my cousins. Were just here. Every time I like I had cousins here from Germany, Australia, and all these random places. And they’ll come in and be like, Whoa, I forgot. You can get everything. Like I can go into Kensington and get Jamaican food like authentic Jamaican food, and then Italian food or then tacos. We’re not even anywhere close to Mexico. We’re getting tacos. And Jim and Brian. I’ve taken them to my favorite burrito spots. And they’re like, dude, we lived in Southern California for 10 years. And this is better than any burrito we’ve had in California. The food scene in Toronto is happening, right? Yeah, for sure. There’s that factor that and then you have like the top five billboard artists are from Toronto. Like I have three of the top five.
Really? Who are so excited you Drake? I don’t know. You do. Justin Bieber.
Yeah. Drake and the weekend.
Okay. I was gonna say the weekend I am I saw a
top five. The weekend billboard selling like in terms of sales. Yeah. And so there’s that factor. And I’m sure you guys have certain experiences to when you go places and you’re like, Oh, I’m from Toronto, five, six years ago and be like,
Canada, Nick and I were on a cruise when we were kids. And the some guy some kids from Texas said, You’re we said we’re from Canada. Yeah. didn’t even know where Toronto was. Yeah, Canada, and they legitimately asked us if we lived in igloos. Yeah, they thought we lived in England. Yeah. And you’re right, though. And not only that, I just feel like this is Toronto’s moment to with the NBA with the Raptors winning. Yeah. Bianca winning the US Open. I keep telling my kids because like all this good news TFC one the I know no one falls into UFC except they won the MLS Cup. So I keep telling my kids, I’m like, this isn’t normal. You’re not supposed to have Canadians from Toronto winning stuff. or sports teams don’t get used to this. But they think it’s like, oh, yeah, Toronto’s awesome. We went all this kinds of stuff. And like, No, no, you have to suffer. You have to suffer like the rest of us, like me and your uncle.
And one thing that people loved that I was sharing when we’re doing that condo launch was I go to New York a lot like a lot of relatives there. And everyone outside of New York just thinks of New York as New York. But everyone in New York, you have just like Toronto has the Greater New York area. So if you’re from Queens, you’re from New York, if you’re from Brooklyn, you’re from New York. And if the same from Toronto, if you’re from Toronto, your your Toronto or Mississauga, your local, you still say I’m from Toronto. But New York is crazy. Where if you go to Queens, which is basically Toronto’s Mississauga, the biggest suburb, you don’t feel like you’re ever leaving the city and we’re starting to feel like that, where you go from Toronto Mississauga. There’s a big difference. If you grew up in Mississauga, and you’re like, whoa, this is Mississauga. But if you’re actually like new, you’re like, whoa, this is a live city. Like port credits. A cool thing now, celebration Square was, is packed all the time. And it reminds me of Queens and in New York.
Yeah, I think most people you’re right. I think because we live here and most investors who live here and invest here, you don’t realize what’s happening in Toronto. I was recently in Miami, and then just seeing the amount of development going on there compared to here. We have cranes everywhere. Yeah, and I know Miami’s kind of happening, but there’s like a relative, there’s nothing.
It’s just one scene. That’s it. Yeah, the only thing that, you know, in Toronto is like all these little micro cultures of every little thing What’s happening?
Yeah, I totally feel like this is our growth moment. And and and then when later on the monetary policy that the US has to continue to have with low interest rates, that just feeds the boom here. And there’s this one last thing. GDP growth, I think, is when you study in economics, it’s a it’s a, the the, the equation is labor times capital, and then they make some productivity. Here, we have all this labor here, because our population is growing. And we have all this capital, because hot money’s flying in from other countries, but also there’s cheap money because of monetary policy in this area. So I’m like, holy crap, are we in an environment where we have like this perfect mix of population and labor. And when you multiply all that, together, the economic growth in this area is just going to continue to be fire for a few years. And I don’t have the crystal ball. And it’s why we’re Nick, what’s why we’ve always been nervous on condo stuff, because some of the condos have not always cash flowed. Yeah, but we now have some investors who’ve made a killing in real estate, Mike, that have worked with you specifically, in the last 10 years were like, Hey, man, I have X number of dollars in equity, sometimes several million. And now my kids, I want them to have a condo in Toronto, so I don’t care if it doesn’t cash flow, I’m taking some equity out of some of my rental properties. And I’m going to buy two condos in Toronto. And that’s then also feeding the market. Right
for that last project that Carlo and I were involved with. We had renters while one specifically to put an offer on a condo, yeah, not for themselves to move into to rent out because they’ve been in the rental at young, unregulated for so long, that they’re paying way below market, that they see it as advantages they buy and then lease for market rent. That’s cool. I never thought about that.
That’s what they’re going to stay where they are because of rent control. So that makes sense. Yeah,
yeah, I have multiple friends like that, that will will own condos, and they will not give up their rental because it’s way cheaper. Like the same. We were talking about this. During the presentation, the average rent in August for one bedroom in downtown Toronto jumped up to 2450. And if you started renting five, six years ago, and trauma, you’re talking about 14 hundred bucks, probably for that unit.
Yeah. And just on that note, my mind was blown when Andrea and our team was sharing her numbers on the two books that she bought. And she rented out the top floor in hand. I think it was Hamilton. She bought this house for like 500 and change. she rented out the top floor for 2125 and I think she’s renting on the bottom for 1600 Yeah, so let’s look at this one prop we would have rented out that whole home about five years ago for 1750 1800 bucks. Now that one home is generating what’s 2125 3120 3625 yeah 36 or 3736 30 $700 whereas just a few years ago that one property for the investor would have generated like 17 1800 dollars in income Wow,
it’s almost double Yeah, it’s crazy. So anyway, just any other on the rate on the reeds? No, I’m thinking once a Fed announcement tomorrow Tomorrow Tomorrow, so I think they might cut I think Canada is going to hold off though I don’t think they’re gonna they’re just gonna play stubborn. Please hold off for the rest of the year.
Julio Just kidding.
No, I mean, you can’t make sense of the bankers which which will help
short term because
I don’t think they want $1 to this week. I think they want the dollar Yeah. And
now that there’s this oil problem with the Saudi bombing or whatever, all that was all about
I could be wrong, but we’ll see. That’s my that’s what my gut tells me but long term as the Fed Kant’s Canada can’t hold on for long they need a cheaper dollar. So if the US dollar cheapens the cash and we might get a stronger dollar. Yeah, I wonder how strong we might get a stronger dollar just with all this oil stuff going on? Could you it’s going to be short live. I don’t know.
Yeah, I don’t I have no clue either.
I lean on you guys for that information. I just wrote what does this mean? It means the world’s gonna melt. I text you soon. You
are apparently there’s Brazilian forest on fire.
The actual globe is gonna melt. I don’t care what the economy economies like
is what is Mike where you gonna see you looking at something where you
know, yeah, okay.
Cool. Thanks, guys. Appreciate the chat, Mike. Take care of all your bandages. Please. If you’re going to inject blood back into your body name. Tell us Nick. You need some damages can on
the airport right now. Find a beat you there, man.
Thanks, guys. Carlos. They do. We give you a hard time. I appreciate this man. No, bro.
Hey, everyone. So hopefully you enjoyed that chit chat. Definitely a bit of a casual episode. If you are looking for some real estate investing data, the best place to go to from us right now. It’s rock star inner circle calm. We have our books available for free downloads on there. We have reports available we have the class that we host in the office here available for you to register off that website as well as links to different videos that we put out. So we’re trying to put a bunch of Canadian specific real estate information all in one place. And that place is rock star inner circle.com. Thank you for everyone leaving us reviews on iTunes. We really appreciate it. If you haven’t had a chance to and you feel like we’ve earned it, please do. So. That’s it for now. Until next time, your life, your terms.