Jan. 28, 2022

Podcast Special Episode_ Profitable Investing in CRAZY Expensive Markets with Matthew Lee and Ming Lim

Matthew Lee is the founder and managing founder realtor at Volition Properties. He is a thought leader and advocate who are passionate about the transformative change that real estate investing offers when done correctly. Having learned hard lessons from...


Matthew Lee is the founder and managing founder realtor at Volition Properties. He is a thought leader and advocate who are passionate about the transformative change that real estate investing offers when done correctly. Having learned hard lessons from previously "chasing the shiny object" when investing in small towns, he has now created the Volition investing business model (an investment business model that actually works in the Toronto market) predicated on risk-mitigation, scalability, and resiliency, which he has taught to thousands of aspiring investors.

Ming Lim is the head of the construction broker at Volition Properties and a passionate educator. He brings 20 years of real estate investment experience in Toronto, the GTA, and Southwest Ontario to the Volition team. He loves nothing more than to teach, mentor, and advise. His background in Computer Science from the University of Waterloo and construction experience give him a unique analytical lens on investing and a practical approach to implementing investing strategies.

Are you interested in investing in the Greater Toronto Area?

Do you like investing in high-priced markets?

Join Matthew and Ming in this episode as they share with us the massive benefits of investing in high-cost markets. They talk about the different investment classes you can build your portfolio on and how to scale further to more sophisticated ones. They also include numbers and analysis of the different investment classes and how you earn more and lessen the time it takes to make profits.

And they are not at all theoretical, for what they present is all based on their experiences doing it themselves. Besides, they have more sustainable strategies, risk-mitigated, a better tenant profile, and cash-flowing properties approach.

Checkout: Raising Capital Without Rejection Full-Day Workshop (Online): https://investorattractionworkshop.com/

What you'll learn in just 17 minutes from today's episode: 

  • Find out what basic assets you can buy inexpensive markets that are considered a building block to creating your portfolio and scale higher to more sophisticated properties
  • Discover how you can employ this strategy when investing in crazy expensive markets to maximize your return and minimize the length of time to scale higher
  • Learn how you can do better even with limited cash flow in these expensive markets

Resources/Links: 

Topics Covered: 

  • 01:39 - What is Volition Properties and what do they do
  • 03:48 - The core of their business and the work that Volition Properties do and how they go about it
  • 05:54 - Why and how to invest in crazy expensive markets: the five key questions to ask when deciding to invest in Toronto
  • 09:43 - Taking a look at the home price index to determine where the major economic growth is happening
  • 13:18 - Understanding why there is continued in the Toronto market despite the pandemic
  • 14:48 - Who are they [Volition Properties] targeting: uncovering their tenant profile
  • 19:18 - How to bypass heavily tenant-favored law in Toronto
  • 21:29 - Who are the buyers and where are they buying in Toronto
  • 23:09 - Type of asset you want to buy especially if you're not a sophisticated investor
  • 24:19 - The single most desirable feature to determine where to buy
  • 25:57 - Best places to invest in Toronto
  • 27:30 - Looking at investing beyond the financials and the return: 4 types of risk with an acronym of TIME
  • 33:28 - The role of cash flow and when does it matter
  • 37:39 - Employing the power of the multiplier effect in Toronto properties
  • 42:48 - The bigger and better deals you can buy in Toronto that will have you cash flowing at the same time increase the value of property
  • 49:14 - Transit analysis on turnkey properties
  • 50:21 - More numbers and analysis on successful deals they have done in the past
  • 51:19 - Doing better with limited cash flow
  • 01:00:24 - People think they're investing, but they're actually gambling you

Key Takeaways:

"When you were seeing Toronto average prices, it was really a tale of two cities where you're seeing downtown continue to grow and expand in price, but uptown, not growing at nearly the same sort of rate. That's why it's really important not just to be an expert in whatever city you're investing in, but an expert within the neighborhoods within that city." - Ming Lim 

"A lot of times people are looking at the property, and then figuring out the tenant. And that's the wrong way to do it. As a business, you don't design the product and then figure out who you're going to sell it to. You're trying to figure out what your customer is? What do they need? And how can you fill that before you go and create a product and investing is no different." - Ming Lim 

"The idea here is, in a higher growth market, crazy expensive market, let's call it you have the opportunity to buy a property, at10% growth, you only need to wait about two and a half years before you've built enough equity in that property through appreciation and mortgage pay down to refinance, do an equity ticket and go buy another life property." - Ming Lim 

"How do you get those higher rents, and this is where you start hearing about things like renovictions, these big tenant advocacy groups start getting involved. We bypass all of that by just focusing on an inherently transient tenant profile right from the get-go." - Matthew Lee    "Transit is the single most desirable feature to help you determine where to buy." - Matthew Lee

"When you're thinking about where and what to buy, we need to start thinking about expanding our criteria and broadening our thinking a little bit in terms of what is it that our renters want." - Matthew Lee

 

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