Real Estate Investing Morning Show ( REI Investment in Canada )

Hosted by Wayne & Gabby Hillier | Canadian Real Estate Investing Coaches / Mentors

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Oct 2026

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"Real Estate Investing Morning Show" with Canadian investor power couple, Wayne and Gabby Hillier. We talk everything real estate. Joint Ventures, Landlording, Buying/Selling, Financing, Flipping, BRRRR, Multi-Family, Secondary Suites, Condominiums, Agreement For Sales, Rent to Own, Wholesaling. Not to mention, sharing routines and strategies that we've implemented into our lives that have helped us 10X our performance, our drive and our efficiency.

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November 6, 202654 min

Are You A Real Estate Investor? What Would You Choose?

This or That: Real Estate Investing Edition With Wayne and Gabby Hillier Cash flow or appreciation? One million-dollar property or five $200,000 properties? A tenant who always pays late or one who complains about everything? On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier switch things up with a fun and surprisingly educational round of This or That: Real Estate Edition. Gabby takes control of the show and challenges Wayne with 13 difficult real estate investing questions. The rules are simple. Wayne must choose one of two options, answer quickly, and isn't allowed to say "it depends." The live audience plays along, sharing their own answers and comparing them with Wayne's. But what starts as a lighthearted game turns into an interesting discussion about investing fundamentals, property management, risk, profitability, and why the best decision isn't always the most obvious one. 13 Difficult Real Estate Investing Questions Gabby challenges Wayne with a series of choices that force him to prioritize one investing outcome over another. Some seem straightforward. Others require balancing financial returns, operational challenges, and long-term investment risk. Here are the questions and Wayne's answers. 1. Cash flow or appreciation? Wayne chooses appreciation. It's a surprising answer considering how often he emphasizes the importance of purchasing cash-flowing properties. The distinction is that appreciation can be an important long-term profit centre, while cash flow provides the financial stability needed to hold an investment. 2. One $1 million property or five $200,000 properties? Wayne chooses one $1 million property. The game doesn't provide the additional information that would normally be needed to properly compare these investments. 3. Tenants with pets or tenants with kids? Wayne chooses tenants with pets. The choice is part of the rapid-fire game rather than a complete tenant selection recommendation. 4. A terrible house in a great neighbourhood or a great house in a terrible neighbourhood? Wayne chooses the terrible house in the great neighbourhood. His explanation is simple: he can improve the condition of a property, but he cannot change an entire neighbourhood. 5. A tenant who pays late every month or a tenant who complains about everything? Wayne chooses the tenant who consistently pays late. Both situations create additional work, but he considers predictable late payments easier to manage than constant, potentially costly complaints. 6. Free property for a year or free property management for life? Wayne chooses free property management for life. The potential long-term value of ongoing management services influences his decision. 7. Buy a property sight unseen or buy without an inspection? Wayne chooses buying sight unseen. He explains that purchasing remotely is something he already does, whereas obtaining appropriate property information and completing due diligence remain important. 8. A condo cash-flowing $500 per month or a detached house cash-flowing $200 per month? Wayne chooses the detached house. He acknowledges that both options have different risks and that cash flow alone is not enough to determine which is the better investment. 9. A tenant who never cleans or a tenant who never cuts the grass? Wayne chooses the tenant who never cuts the grass. 10. Never deal with another contractor or never deal with another tenant? Wayne chooses never dealing with another tenant again. 11. Own 100 rental properties with partners or 20 rental properties by yourself? Wayne chooses 100 properties with joint venture partners. He explains why sharing ownership in a larger portfolio may produce significantly greater financial benefits, particularly when the managing partner contributes expertise rather than acquisition capital. 12. A flooded basement or a broken furnace in January? Wayne chooses the broken furnace. After dealing with serious flooding problems, he considers a furnace failure the more manageable option, even during an Alberta winter. 13. A property that doubles in value but never cash flows, or a property that never appreciates but generates $1,000 per month? Wayne chooses the property generating $1,000 in monthly cash flow. This becomes one of the episode's most detailed discussions. Why a Bad House in a Good Neighbourhood Can Be Better One of Gabby's questions forces Wayne to choose between a terrible house in a great neighbourhood and a great house in a terrible neighbourhood. Wayne explains that neither option is automatically attractive. A poorly maintained house can require substantial repairs and renovations. However, those problems may be fixable. A bad neighbourhood is different. Even after investing money into the property, the surrounding location remains the same. That can influence rental demand, tenant appeal, resale potential, and the overall investment. Wayne emphasizes that he would still need to review the purchase price, renovation costs, rental income, and potential equity before making a real investment decision. The lesson is to consider which problems you can control and which ones you cannot. Why Wayne Would Rather Have a Tenant Who Pays Late Another surprising answer involves choosing between a tenant who consistently pays late and one who complains about everything. Wayne chooses the tenant who pays late. His reasoning is that the question specifies the tenant eventually pays. Late rent is frustrating, but it can be handled through an established management process. The landlord can communicate with the tenant, document the payment arrangement, and follow applicable procedures when necessary. A tenant who complains constantly may create more unpredictable demands. Some complaints may require additional repairs, correspondence, or expenses. Other situations may lead to dissatisfaction and eventual turnover. Wayne and Gabby explain that predictable problems are often easier to manage than unpredictable ones. They also emphasize the importance of developing clear property management systems rather than reacting differently to every issue. Why Wayne Would Choose 100 Properties With Partners Gabby asks whether Wayne would rather own 100 rental properties with joint venture partners or 20 properties entirely on his own. Wayne chooses 100 properties with partners. He explains that, under a typical 50/50 joint venture arrangement, the managing investor receives half the profits. If all properties were otherwise economically comparable, receiving half the profits from 100 properties would resemble receiving the full profits from 50 properties. Gabby adds another important consideration. In many joint venture arrangements, the money partner provides the down payment and financing while the managing partner contributes the deal, expertise, and management systems. That means the managing partner may receive a significant share of the profits without personally providing all the acquisition capital. Wayne acknowledges that managing 100 properties creates additional responsibilities. However, he believes the right systems, processes, and team can make a large portfolio manageable. Cash Flow vs Appreciation: The Big Debate The final question becomes the most important educational discussion of the episode. Would Wayne rather own a property that doubles in value but never generates cash flow, or one that never appreciates but produces $1,000 per month? He chooses cash flow. At first, this appears to contradict his earlier preference for appreciation. But Wayne explains why these are different questions. Real estate investing is about balancing profitability with financial risk. Appreciation can produce substantial wealth over time, but it is not available as cash until an investor sells or otherwise accesses the property's equity. Cash flow is different. Positive monthly cash flow can help pay for repairs, maintenance, vacancies, and other operating expenses. It gives investors the ability to continue holding a property when unexpected costs occur. Wayne argues that the ability to hold an investment long enough to benefit from appreciation is just as important as the potential appreciation itself. Comparing the Numbers Wayne works through an example involving a $500,000 property over 20 years. Option 1: The property doubles in value. If the property appreciates from $500,000 to $1 million, the gross appreciation is $500,000. However, the property produces no cash flow during the ownership period. Option 2: The property generates $1,000 per month without appreciating. At $1,000 per month, the property generates $12,000 annually. Over 20 years, that equals $240,000 in cumulative cash flow before considering changes in income, expenses, taxes, and other assumptions. Wayne acknowledges that the appreciation scenario appears more profitable based on those figures. But he argues that cash flow provides financial flexibility. An investor receiving rental profits may be better positioned to cover unexpected costs without continually contributing additional personal funds. An investor whose property does not cash flow may have to fund those costs from other income or savings. The risk is that the investor may eventually need to sell before realizing the anticipated appreciation. Don't Forget Mortgage Paydown Wayne also reminds listeners that real estate investing has another important profit centre. Mortgage principal repayment. As tenants pay rent and the landlord makes mortgage payments, part of those payments may reduce the outstanding loan balance. That increases the owner's equity. Both hypothetical properties could benefit from mortgage paydown, provided they are financed and the loans amortize as expected. Wayne explains why investors need to consider all the profit centres together rather than judging an investment based on a single number. The major considerations include cash flow, mortgage paydown, appreciation potential, operating costs, and financial risk. Why Cash Flow Helps Keep Investors in the Game The central lesson from the final discussion is that investors need to survive difficult periods to realize long-term returns. Real estate markets don't increase in value in a straight line. Property prices can stagnate or decline, rental demand can change, and major expenses can arise unexpectedly. An investor with sufficient cash flow and reserves may have more flexibility to navigate those challenges. Wayne references his 5% Rule Cash Flow Test and explains why he developed it as a framework for evaluating rental property sustainability. The objective is to find investments that generate enough cash flow to support themselves while still offering attractive long-term potential. Cash flow doesn't eliminate risk or guarantee success. It helps investors manage risk. Why Understanding the Reasoning Matters Although the episode begins as a rapid-fire game, Wayne emphasizes that a simple answer doesn't provide enough information to make real investment decisions. Every property is different. A condominium generating more cash flow may have different long-term risks from a detached house. A large joint venture portfolio may create more opportunity but also more responsibility. A property with strong appreciation potential may be attractive but difficult to hold without sufficient income. Wayne explains that the most valuable part of real estate education is understanding why a particular decision makes sense. Investors should learn the reasoning behind a strategy rather than simply copying someone else's answer. Thank You to the Morning Show Community Wayne and Gabby also thank their listeners for their patience during a challenging week. They explain that family responsibilities interrupted some of their normal broadcasts. Several listeners reached out to check on them. Wayne and Gabby express their appreciation for those messages and for the community that continues joining them every weekday morning. They also celebrate longtime listener Kirsten and reminisce about an early podcast milestone from 2019, when they reached 500 downloads. The episode is a reminder of how the Morning Show has developed into a supportive community of Canadian real estate investors. Key Takeaways Real estate investment decisions require balancing profit and risk. The best property isn't necessarily the one with the highest monthly cash flow. A property's neighbourhood can be more difficult to improve than the property itself. Predictable management problems are often easier to handle than unpredictable ones. Joint ventures can provide opportunities to build larger portfolios without personally funding every acquisition. Proper systems make managing larger rental portfolios more practical. Appreciation creates potential long-term wealth but does not automatically provide cash for operating expenses. Cash flow provides liquidity that can help investors manage unexpected costs. Mortgage paydown is another important source of equity growth. Investors need the financial ability to hold properties through difficult market conditions. Understanding the reasoning behind investment decisions is more important than memorizing simple answers. About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time. The Canadian Real Estate Investing Morning Show provides free education, real-world investing strategies, and practical answers to questions from Canadian real estate investors. Whether you're purchasing your first rental property, managing an existing portfolio, or exploring more advanced investment strategies, Wayne and Gabby share insights from their own experiences to help you make informed decisions. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program provides: Weekly live real estate investing coaching One-on-one investment strategy sessions Access to the Masters Vault educational library A private community of Canadian real estate investors Education covering BRRRR, Agreements for Sale, seller financing, joint ventures, financing, and property management Help with investment analysis, cash flow, and risk management Ongoing coaching, accountability, and support Learn more or book a discovery call: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch Wayne and Gabby live every weekday at 7:00 AM Mountain Time on YouTube. Bring your questions, share your experiences, and join the discussion with real estate investors across Canada. The hypothetical investments and calculations discussed in this episode are for educational purposes. Actual results depend on purchase prices, operating expenses, financing, market conditions, taxes, and individual circumstances.

November 4, 202655 min

Can AI Do Your Taxes? How Real Estate Investors Can Save Time and Money

Can AI Do Your Taxes? How Real Estate Investors Can Save Time and Money Artificial intelligence is changing the way Canadian real estate investors manage their businesses. But can AI actually do your taxes? And could it eventually replace your bookkeeper or accountant? On today's Canadian Real Estate Investing Morning Show, Wayne Hillier welcomes Steve Tsonev, managing partner at Finngo Bookkeeping & Tax, to discuss how artificial intelligence is transforming bookkeeping, accounting, and tax preparation. Steve explains that accounting firms have already been using automation and machine learning for many years. The biggest opportunity today isn't necessarily having AI prepare an entire tax return. It's using AI to solve one of the most frustrating problems accountants face: getting complete, accurate information from their clients. Wayne and Steve explore how investors can use connected email accounts, Google Drive, calendars, and other digital tools to locate missing receipts, organize records, and reduce the amount of time spent searching for financial documents. They also discuss privacy concerns, the limitations of AI, and why professional oversight remains essential. Why Your Accountant Is Still Waiting for Your Documents Wayne opens the discussion by explaining a problem he has noticed throughout his involvement with Finngo. Many investors assume that accounting firms spend most of their time processing financial transactions. But Steve explains that entering and categorizing transactions is often relatively straightforward. The bigger problem is obtaining all the supporting information required to complete a client's file. An accountant may identify several unexplained transactions, missing invoices, or expenses that require clarification. They send the client an email asking for the missing documents. Then they wait. Sometimes days turn into weeks or months. Meanwhile, the accounting team moves on to another client's work. When the missing information finally arrives, the original file needs to be reopened and reviewed. This creates unnecessary delays and makes the entire process less efficient. Accounting Firms Have Been Using AI for Years Steve explains that artificial intelligence isn't entirely new to the accounting industry. Before AI became a popular term, many of these tools were described as machine learning or automation. Accounting software such as QuickBooks Online has used connected bank feeds and automated transaction categorization for years. Instead of manually entering every transaction, accountants can import banking information and receive suggestions about how expenses should be categorized. These systems have continued improving. Modern accounting software can learn from historical transactions, identify recurring expenses, and suggest appropriate bookkeeping categories. But there is one important limitation. Software cannot always determine why a transaction occurred. For example, a bank statement might show a $50,000 withdrawal. Was that money used for a property down payment? Was it a repayment to a joint venture partner? Was it transferred between businesses? Without context or supporting documents, an accountant cannot reliably determine how to record the transaction. This is where newer AI capabilities may offer significant value. Using AI to Find Missing Receipts Wayne and Steve discuss a simple but powerful application of artificial intelligence. Imagine your accountant sends you a list of ten transactions that are missing receipts. Normally, you might need to search through multiple email accounts, download invoices, review Google Drive folders, and contact vendors. That process could take hours. With appropriately connected AI tools, investors may be able to search across several sources at once. For example, you could ask an AI assistant to look for an invoice from a particular contractor, an amount paid on a specific date, or documentation related to a particular rental property. The system may be able to identify relevant emails, attachments, calendar appointments, and stored documents. Instead of manually searching for every missing receipt, investors can use AI to help locate the information and then verify that it is correct. Steve explains that this could significantly reduce one of the biggest administrative obstacles in the tax preparation process. Understanding Transactions Across Multiple Businesses Another common problem occurs when investors move money between properties, bank accounts, or corporations. Wayne and Steve discuss how complicated this can become. A business owner might transfer money from one account into another, combine funds with another business, and then use that money to complete a real estate transaction. When the accountant reviews the bank statements, the transfers may not clearly indicate what happened. A connected AI assistant may help identify supporting evidence across emails, calendars, invoices, and transaction records. For example, it could find correspondence discussing an upcoming property purchase and connect that conversation to a bank draft issued around the same time. Steve explains that this contextual information can help accountants understand where the money went and how the transactions should be recorded. However, those connections still need to be verified rather than assumed to be correct. Wayne and Gabby's AI Bookkeeping System Wayne shares an example from his own real estate business. He and Gabby maintain a spreadsheet containing information about their investment properties, joint venture partners, and associated accounts. They have been developing workflows that help organize incoming documents according to the property they belong to. For example, when a contractor sends an invoice related to a particular rental property, their system can identify the property and save the invoice into the corresponding Google Drive folder. Previously, Gabby handled much of this process manually. She would spend hours reviewing emails, downloading invoices, renaming files, and organizing documents for bookkeeping. Now, some of that work can be automated. Wayne acknowledges that their system isn't perfect, but it has already reduced the amount of repetitive administrative work required. The goal is to have organized, property-specific records ready when their accountant needs them. Can AI Replace Your Bookkeeper? Wayne raises a question many business owners are beginning to ask. If AI can locate receipts, organize documents, and identify transactions, do we still need bookkeepers? Steve explains why he believes professional bookkeeping remains important. Modern accounting platforms already have reliable systems for maintaining financial ledgers, balancing transactions, and producing financial reports. Recreating those systems entirely through general-purpose AI may be unnecessarily complicated and inefficient. Instead, Steve sees the greatest opportunity in using AI alongside established accounting software. AI can help locate and organize information. Accounting software can maintain the books. Qualified professionals can review the results, identify inconsistencies, and ensure the records are accurate. The tools can work together rather than replacing one another. Why Human Oversight Still Matters Steve gives an example involving property insurance. Suppose AI automatically organizes all of an investor's documents. The accountant reviews the information and notices that a particular property's insurance expense is missing. Perhaps the insurance policy covers several properties. Or maybe the invoice was never received electronically. Even a sophisticated AI system may fail to identify that missing information. An experienced accountant can recognize that something doesn't make sense and ask the appropriate questions. Wayne emphasizes that investors should not assume an automated system is completely accurate simply because it appears to be working. Financial documents still need to be checked. The Privacy and Security Risks of AI One of the most important discussions involves connecting artificial intelligence to sensitive personal and business information. Wayne and Steve explain that AI tools may require access to email accounts, financial documents, and other private records to perform the tasks being discussed. That access introduces important privacy and security considerations. Steve explains that accounting firms have professional obligations to protect client information. Finngo maintains an internal AI policy and reviews it regularly as technology changes. He emphasizes that professional firms cannot simply connect confidential client information to any available AI platform without considering the consequences. Wayne agrees that investors need to research the tools they use and understand the permissions they are granting. Convenience is valuable, but it should not come at the expense of appropriate data protection. Why AI Bookkeeping Courses Can Become Outdated A listener asks whether Gabby could create a course teaching investors how to use AI for bookkeeping. Wayne explains why he is hesitant to offer that education as a complete system right now. AI technology is changing rapidly. A workflow that works today may be replaced by a more efficient method in just a few months. There is also the risk of teaching a process that accidentally overlooks important financial documents. Wayne and Steve agree that AI is valuable, but investors need to be prepared to monitor, test, and continually improve their workflows. For now, their focus is on helping people understand the opportunities while encouraging appropriate verification. Is AI Worth the Cost for a Small Investor? Near the end of the episode, Wayne asks Steve whether AI is practical for the average real estate investor. Steve believes it can be, but the cost needs to be considered. Someone who owns a single rental property may not receive enough value from an expensive AI subscription to justify the additional expense. For an investor managing several properties or operating multiple businesses, however, automating repetitive administrative tasks could provide meaningful savings. The value depends on how much time the investor spends gathering records, how complicated their business is, and how effectively they use the available tools. Why Getting Your Bookkeeping Done Early Matters Wayne and Steve also discuss the importance of providing financial documents to accountants on time. When a client supplies complete information regularly, the accounting firm can work more efficiently. When documents arrive months late, the firm must rearrange schedules and allocate additional time to catch up. Steve explains that Finngo recently had a client whose records were so well organized that the team was able to complete the work approximately a month early. The lesson is that better organization benefits both investors and their accountants. AI may help make that organization easier, but consistency and communication remain essential. AI and the Future of Accounting Wayne and Steve believe artificial intelligence will continue improving how businesses manage financial information. More advanced search tools, connected applications, and automation may make it easier to identify missing records and prepare accounting packages. Steve also discusses how tax authorities may use AI to analyze information and identify discrepancies. As technology improves, accurate recordkeeping and professional review may become even more important. The goal isn't to eliminate accountants. It's to give accountants better information so they can focus on accuracy, compliance, tax planning, and helping clients make informed decisions. Year-End Tax Planning With Finngo Steve shares that November and December are important months for business owners to review their financial circumstances. Finngo uses this period for compensation planning, including discussions about salary, dividends, and how business owners may want to structure their compensation. These conversations help prepare clients before year-end and allow the accounting team to plan ahead for the following tax season. Upcoming REI Masters Projects Wayne also provides updates about several upcoming initiatives. Agreement for Sale Course: REI Masters is preparing new education focused on seller financing and Agreements for Sale in Alberta. Edmonton Garden Suites: Wayne discusses the possibility of changes to Edmonton's infill regulations and encourages investors considering multi-unit garden suites to investigate current development opportunities. Future CRA Education: Wayne and Steve plan to discuss significant trust-related reporting changes in a future episode. Key Takeaways AI has been used in accounting software for years. One of the biggest accounting challenges is collecting missing information from clients. AI can help investors locate receipts across emails, calendars, and connected storage. Property-specific document organization can make bookkeeping easier. AI may help explain complicated transactions across multiple accounts. General-purpose AI should not automatically replace established bookkeeping systems. Qualified accountants remain important for verification, compliance, and tax planning. Connecting sensitive information to AI requires careful consideration of privacy and security. Automated workflows still need oversight and periodic review. Complete, timely records make accounting more efficient. The value of AI depends on the size and complexity of the investment business. About Steve Tsonev Steve Tsonev is managing partner at Finngo Bookkeeping & Tax, an accounting firm specializing in Canadian real estate investors and business owners. Steve works with investors to improve their bookkeeping, understand tax obligations, develop appropriate strategies, and maintain accurate financial records. Learn more or book a consultation: https://finngo.com/rei About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time. The Canadian Real Estate Investing Morning Show provides free investing education, practical strategies, and real-world experiences from Canadian investors. Wayne and Gabby share lessons from building and managing their rental property portfolio, along with insights from industry professionals and their investor community. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program provides: Weekly live real estate investing coaching One-on-one investment strategy sessions Access to the Masters Vault educational library A private community of Canadian real estate investors Training covering BRRRR, seller financing, Agreements for Sale, joint ventures, financing, and property management Help with rental property analysis, cash flow, and investment planning Ongoing mentorship, accountability, and support Learn more or book a discovery call: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch Wayne and Gabby live every weekday at 7:00 AM Mountain Time on YouTube. Submit your investing questions and join the discussion. This episode is for educational purposes. AI-generated accounting information should be reviewed for accuracy, and sensitive financial documents should be handled with appropriate privacy and security protections.

November 3, 20261 hr 3 min

How to Structure Joint Ventures for Maximum Cash Flow

How to Structure Joint Ventures for Maximum Cash Flow What happens when your joint venture partner wants monthly income now instead of building wealth over the next 20 years? Most real estate investors focus on long-term equity growth, mortgage paydown, and appreciation. But not every investor is at the same stage of life or has the same financial priorities. Someone approaching retirement may be more interested in generating immediate passive income than maximizing long-term returns. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier continue a listener discussion about structuring joint venture partnerships for cash flow optimization. The listener has traditionally focused on long-term portfolio growth but is now considering a partnership with an investor who wants cash flow to supplement retirement income. Should they lower the loan-to-value ratio by putting more money down? Should they invest in smaller markets offering potentially higher rental yields? Or is there another strategy that would better suit the partner's goals? Wayne and Gabby explain how they would approach the situation, including the importance of reserves, how much rental income should be retained for property expenses, and why investors should be extremely cautious when promising monthly distributions. Cash Flow Is Primarily About Protecting Your Investment Wayne begins by explaining why he and Gabby prioritize cash flow in their own rental portfolio. For them, cash flow isn't necessarily money to spend every month. It's a financial safety net. They prefer to retain rental profits in reserve accounts so that money is available when unexpected expenses arise. That could include a vacant property, major repairs, replacing a furnace, or higher mortgage payments. This approach helps protect the investment and reduces the likelihood of being forced to sell during difficult market conditions. Wayne explains that investors who distribute their cash flow instead of saving it may be reducing the financial protection available to the property. However, that doesn't mean distributing cash flow is always inappropriate. It means the investment needs to be structured differently. Understand What Your Joint Venture Partner Actually Wants One of the first questions Wayne and Gabby suggest asking is whether the investor needs the monthly cash flow to cover essential living expenses or simply wants additional discretionary income. Those are two very different situations. For someone who relies on rental distributions to cover groceries, utilities, housing expenses, or other necessities, an interruption in cash flow could create serious financial problems. For someone who already has sufficient retirement income and simply wants additional money each month, the consequences may be less significant. Gabby emphasizes the importance of understanding the investor's stage of life and financial priorities before recommending a strategy. The right joint venture structure should reflect both partners' goals, financial circumstances, and tolerance for risk. Why Choosing the Right Joint Venture Partner Matters Wayne explains that he generally prefers working with joint venture partners whose goals align with his own. His investment strategy focuses on building long-term wealth through rental properties. That means retaining cash flow, maintaining reserves, and allowing mortgage paydown and potential appreciation to build equity. Someone who needs immediate income may have different expectations. Wayne cautions that investors shouldn't simply choose partners based on how much money they have available. Instead, they should look for compatibility in investment timelines, risk tolerance, cash flow expectations, and long-term objectives. However, Gabby points out that investors with different goals can still develop successful partnerships when those differences are understood and the investment is structured appropriately. The Risk of Promising Monthly Cash Flow One of Wayne's biggest concerns is promising a joint venture partner a specific monthly payment that the rental property may not always generate. Imagine a property producing $1,000 in monthly cash flow. Everything looks excellent when the investment begins. But what happens if interest rates increase, rent decreases, or the property sits vacant? That $1,000 could become $500, $200, or even a negative amount. For Wayne and Gabby's investment portfolio, a temporary reduction in cash flow is something they plan for. But an investor who relies on that income for essential expenses may not be able to absorb the interruption. Wayne explains why partners need to understand that rental property cash flow is not guaranteed. The property must retain enough money to continue operating successfully even when circumstances change. How Much Rental Income Should Be Set Aside? Wayne and Gabby share a basic reserve allocation framework for investors considering monthly cash flow distributions. They identify two major expense categories that must be planned for. 1. Vacancy allowance: 8% of monthly rental income This allowance is intended to build a reserve approximately equivalent to one month's rent each year. The assumption is that a tenant could leave after a one-year lease and the property might experience a month of vacancy before the next tenant moves in. Ideally, tenants remain much longer. When that happens, the reserve continues accumulating for future vacancies. 2. Repairs and maintenance: 4% of monthly rental income This allowance helps prepare for repairs, maintenance, and eventual replacement of building components. Appliances, furnaces, hot water tanks, roofs, flooring, and other property components all require attention over time. The amount required will vary depending on the property's age and condition. Older properties with aging mechanical systems may require a larger allowance. Together, these two categories create a suggested minimum reserve contribution of 12% of rental income. Wayne emphasizes that this is a minimum starting point for the particular scenario being discussed, not his preferred approach for most investors. He generally recommends following the 5% Rule Cash Flow Test and retaining as much rental cash flow as possible. Example: A Rental Property Collecting $2,000 Per Month Wayne and Gabby walk through a simple example. Assume a rental property collects $2,000 per month and produces $500 in monthly cash flow after regular operating and financing expenses. The reserve contributions would be: Vacancy reserve: 8% of $2,000 = $160 per month Repairs and maintenance reserve: 4% of $2,000 = $80 per month Total reserve contribution: $240 per month That leaves $260 per month in potentially distributable cash flow. Under a traditional 50/50 joint venture structure, each partner could receive $130 per month. These amounts are illustrative. Whether the distribution is appropriate depends on the property's actual expenses, expected capital expenditures, existing reserves, the partnership agreement, and each investor's financial circumstances. Why More Money Down Can Increase Cash Flow The listener asks whether reducing the loan-to-value ratio would be a good strategy for a partner who prioritizes monthly cash flow. Wayne believes this can be a useful approach. Most investors try to put down the minimum amount required because using less capital can improve their percentage return on investment. But someone prioritizing immediate income may have different goals. By putting more money down, the investor reduces the amount being financed. A smaller mortgage generally means lower mortgage payments. And lower mortgage payments can create more monthly cash flow. Wayne suggests that a partner primarily focused on immediate income might consider a 30% or 40% down payment rather than the traditional 20%. The trade-off is that more capital becomes tied up in the property, potentially reducing the percentage return on the money invested and limiting how quickly the portfolio can grow. Long-Term Investing Can Create More Cash Flow Later Wayne also offers an alternative for investors who don't need immediate distributions. Instead of putting a larger down payment toward one property, an investor could focus on building a conventional rental portfolio and retaining its cash flow. Over time, mortgage principal may decline, rental income may increase, and the property may generate significantly more cash flow. Wayne discusses the possibility of waiting approximately 15 years before beginning to draw income from the portfolio. By that point, a property may have accumulated substantial reserves and greater cash flow, depending on market performance and operating conditions. This is the approach Wayne and Gabby prefer for their own long-term investment strategy. Should You Invest in Smaller Markets for Higher Yields? The listener also asks whether investing in smaller secondary markets might generate better cash flow. Gabby challenges the assumption that smaller markets automatically produce higher yields. A lower purchase price doesn't necessarily mean a better investment. Wayne explains that smaller communities may have more concentrated economies, fewer major employers, and smaller pools of prospective tenants. These characteristics can increase the impact of economic changes. A property might produce excellent cash flow today but become more difficult to operate if local employment declines or rental demand weakens. Wayne generally prefers larger, economically diversified markets that he believes are better positioned to withstand difficult periods. His recommendation is to look for strong cash flow in a sustainable market rather than accepting additional market risk simply to generate a higher advertised yield. Why Market Sustainability Matters Wayne and Gabby emphasize the importance of choosing markets that support long-term investment stability. They encourage investors to evaluate economic diversity, employment opportunities, population growth, rental demand, and the strength of the local housing market. Wayne mentions Edmonton, Saskatoon, Calgary, St. John's, Regina, and Red Deer as markets he believes investors should investigate. He also notes that smaller markets aren't guaranteed to fail. The concern is whether the potential return adequately compensates investors for the additional risks. Every market and property still requires individual research and financial analysis. Could Private Lending Be a Better Alternative? Near the end of the episode, Wayne introduces another possible option. Private lending. Rather than becoming an equity partner in a rental property, an investor could lend money under an agreed interest arrangement. For example, at a hypothetical annual interest rate of 12%, a $100,000 interest-only loan would generate $1,000 in monthly interest payments if the borrower remained current. Unlike a joint venture, the lender would generally not share in the equity growth of the property. However, Wayne and Gabby are extremely cautious about this approach. Private lending introduces significant risks, including borrower default and potential loss of principal. Wayne explains that borrowing expensive private money to purchase a conventional long-term rental property often doesn't make financial sense. The cost of servicing the debt may consume too much cash flow. He suggests that some experienced investors may use private financing for shorter-term strategies such as renovations, flips, or BRRRR projects, but those arrangements still require careful analysis. Gabby emphasizes that protecting the person lending the money is particularly important when they are depending on that income during retirement. Why Proper Education Matters Wayne closes the episode by emphasizing that having access to investment capital doesn't automatically make it appropriate to accept that money. Investors need to understand how they will use the funds, what returns the investment can realistically generate, and how the capital will be protected. He encourages investors to seek appropriate education and professional guidance before structuring joint ventures or private lending arrangements. The goal should always be to create a sustainable investment that serves the needs of everyone involved. Key Takeaways Different investors have different priorities depending on their financial circumstances and stage of life. Monthly rental cash flow should never be treated as guaranteed income. Partners need to understand whether distributions are essential or discretionary. Adequate reserves help protect the rental property business. Wayne and Gabby discuss allocating at least 8% of rental income for vacancy and 4% for repairs and maintenance. Larger down payments can improve monthly cash flow by reducing mortgage payments. Higher cash flow doesn't necessarily mean a higher percentage return on invested capital. Investors shouldn't assume smaller markets automatically offer better opportunities. Market sustainability matters just as much as rental yield. Private lending is a different investment structure with substantial risks. The right joint venture structure should align with both partners' financial goals and risk tolerance. About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time. Wayne and Gabby are full-time real estate investors, coaches, and founders of REI Masters. The Morning Show provides practical Canadian real estate investing education, answers to listener questions, and insights from their own experiences building and managing rental property portfolios. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program provides: Weekly live real estate investing coaching One-on-one investment strategy sessions Access to the Masters Vault educational library A private community of Canadian real estate investors Training on joint ventures, BRRRR, Agreements for Sale, seller financing, property management, and financing Help with investment analysis, cash flow, market selection, and risk management Ongoing coaching, accountability, and support Learn more or book a discovery call: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch Wayne and Gabby live every weekday morning at 7:00 AM Mountain Time on YouTube. Send your investing questions and join the discussion with investors from across Canada. This episode is for educational purposes. Joint ventures, property investments, and private lending involve financial and legal risks. Cash flow and investment returns are not guaranteed. Consult qualified legal, accounting, and financial professionals before entering an investment arrangement.

October 30, 202654 min

5 Things to Consider Before Investing Out of Province in Canada

Investing Out of Province in Canada: 5 Things You Need to Know Should you buy your first rental property in your hometown, or could investing in another province be a better decision? For many Canadians living in expensive housing markets, purchasing an investment property close to home is becoming increasingly difficult. High property prices, substantial down payment requirements, and limited rental cash flow can make it challenging to find properties that generate acceptable returns. But does buying a property thousands of kilometres away create even bigger risks? On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier answer an email from a 24-year-old aspiring investor living just north of Toronto. The listener wants to purchase his first rental property and has been researching opportunities outside Southern Ontario, particularly Edmonton, Alberta. He asks whether he should start with a property within driving distance, consider smaller Ontario markets like Windsor, Kingston, or Belleville, or take the leap and purchase an investment property in another province. Wayne and Gabby explain the most important considerations for investing out of province, including market selection, cash flow, landlord-tenant legislation, building a local team, and managing rental properties remotely. Why Your Local Market Isn't Always the Best Market Wayne begins with an important question. Why do you want to invest outside your province? Purchasing a rental property close to home certainly has advantages. You understand the area, you're familiar with local neighbourhoods, and you can visit your property when necessary. But convenience should not be the deciding factor when choosing where to invest. Wayne explains that a rental property should be evaluated as a business. If local property prices are too high relative to rental income, the investment may not generate sufficient cash flow to support itself. He uses the Toronto market as an example. A property costing $900,000 could require a $180,000 down payment at 20%. If the achievable rent cannot cover the mortgage, taxes, insurance, maintenance, and other expenses, the property may require ongoing financial support from the investor. Wayne argues that investors shouldn't force a property purchase simply because they want to invest in their own backyard. 1. Understand Your Reason for Investing Out of Province Before researching another city, investors need to understand exactly what they're hoping to accomplish. Are you looking for better cash flow? Higher long-term returns? More affordable purchase prices? A stronger rental market? More favourable landlord-tenant laws? Wayne explains that investing out of province introduces additional responsibilities, so there needs to be a compelling reason to do it. For his own portfolio, the objective is to achieve strong returns while minimizing financial risk. He emphasizes the difference between cash flow and return on investment. Cash flow helps protect the investment during difficult periods. Overall return on investment determines how effectively the invested capital is building wealth. Both matter, but they serve different purposes. 2. Follow the Five Fundamentals of Real Estate Investing Wayne shares the Five Fundamentals he teaches through the REI Masters Mentorship Program. These principles help investors evaluate whether a market and property align with a sustainable long-term investing strategy. Fundamental 1: Cash Flow From Day One A property should generate positive cash flow after accounting for its operating and financing expenses. Cash flow provides a financial buffer when unexpected problems arise. Fundamental 2: Profit Without Relying on Appreciation Wayne prefers investments that can generate acceptable returns even if property values don't increase. Investors should not rely exclusively on the hope of selling for a higher price. Fundamental 3: Strong Landlord-Tenant Legislation The legal environment matters. Investors need to understand their rights and obligations, including procedures involving unpaid rent, tenancy termination, dispute resolution, and eviction. Fundamental 4: A Great Tenant Profile Properties should attract the type of tenants an investor wants to rent to. Understanding the neighbourhood, local employment opportunities, rental demand, and suitable property types is essential. Fundamental 5: Long-Term Growth Potential Wayne also wants properties in markets with strong economic fundamentals and potential for future appreciation. The goal is to combine current profitability with sustainable long-term growth. The 5% Rule Cash Flow Test Wayne explains why the 5% Rule Cash Flow Test is one of his first considerations when evaluating an investment property. The framework compares annual cash flow against a benchmark investment amount based on a 20% down payment. Wayne's general benchmarks are: 5% to 6%: Sufficient cash flow 7% to 9%: Strong cash flow 10% or higher: Excellent cash flow The objective is to identify properties with enough cash flow to help withstand changes in operating costs, mortgage expenses, and rental income. The test is a screening tool, not a guarantee against investment losses. 3. Research the Entire Market, Not Just Property Prices Wayne explains that researching another province requires much more than finding affordable houses. Investors need to understand the city, its economy, individual neighbourhoods, and the types of rental properties that attract suitable tenants. An inexpensive property isn't necessarily a good investment. The neighbourhood may have weak rental demand or limited employment opportunities. A property may look affordable but require substantial repairs. Or the local rental market may not support the expected rental income. Wayne recommends researching: Local employment and major industries Economic stability and diversification Confirmed infrastructure and development projects Population growth and migration Rental supply and demand Market rents for specific property types Neighbourhood characteristics and rental demand Long-term housing demand Property values and potential for appreciation He also encourages investors to distinguish temporary economic activity from sustainable growth. For example, a major construction project may attract workers for several years. But what happens when that project is completed? Will those workers remain in the community, or will they leave when their employment ends? Wayne prefers markets with stable, diversified employment opportunities that can continue supporting population growth and housing demand. Why Wayne Prefers Larger Cities Wayne explains that he generally prefers investing in larger cities rather than smaller communities. Larger markets often have more diversified economies, broader employment opportunities, and deeper rental demand. Smaller markets may offer attractive prices or strong returns, but they can be more vulnerable to changes in a particular industry or employer. That doesn't mean smaller markets cannot produce successful investments. It means investors need to understand the additional risks and determine whether the potential returns justify them. 4. Understand Provincial Laws, Financing, and Taxes One of the biggest differences between investing locally and investing out of province is the legal and regulatory environment. Wayne discusses why landlord-tenant legislation is a major consideration in his investment strategy. Different provinces have different rules governing tenancy agreements, rent increases, evictions, and dispute resolution. Those differences can influence an investor's financial exposure and ability to resolve problems. Wayne encourages investors to research the applicable residential tenancy legislation rather than assuming the rules are the same across Canada. Investors should also examine financing options, closing costs, provincial taxes, and other expenses that may affect the investment. A property with an attractive purchase price may become less appealing after accounting for all ownership and operating costs. 5. Build a Reliable Local Real Estate Team The listener also asks how important it is to have a good local realtor and property manager when investing across the country. Wayne's answer is that having the right local team is essential. When you cannot easily visit a property yourself, you need reliable professionals who understand the local market and can respond when problems occur. Wayne recommends developing relationships with: An investor-focused local real estate agent A knowledgeable mortgage broker Reliable plumbers, electricians, and other contractors A trustworthy handyman Professional cleaning services A qualified property manager, if you choose not to self-manage These professionals can help investors evaluate opportunities, coordinate repairs, manage property maintenance, and deal with issues without travelling across the country. Gabby adds that online investor communities have made finding reliable local professionals easier than ever. The key is to obtain recommendations, verify credentials, and build relationships before they're urgently needed. Should You Hire a Property Manager or Self-Manage? Wayne and Gabby explain that they have managed their own rental property portfolio remotely for many years. Some of their properties are located hours away from where they live. Their approach relies on established systems, reliable local contractors, and clearly defined management processes. Wayne explains that professional property management can be an excellent option for investors who don't have the time or confidence to handle operations themselves. However, property management fees and additional charges need to be incorporated into the investment analysis. He also discusses Gabby's Remote Property Management course, which teaches investors how to build the systems needed to manage rental properties without personally attending every appointment, showing, or maintenance request. For beginners, Wayne suggests that hiring a capable property manager may be a sensible starting point while they develop their knowledge and experience. Why Cash Flow Protects Long-Term Investors Throughout the episode, Wayne emphasizes that his preferred investing strategy is built around long-term sustainability. He isn't interested in purchasing properties that require ongoing cash contributions while hoping for future appreciation. He wants investments that can support themselves financially. Positive cash flow helps investors navigate periods of higher interest rates, unexpected expenses, vacancies, and weaker rental conditions. Wayne explains that the objective is to avoid being forced to sell a property during an unfavourable market. He prefers properties that can be held for 10, 15, or 20 years while generating income, paying down mortgage principal, and potentially increasing in value. Don't Wait Years to Get Started One of the most memorable moments in the episode comes when Wayne responds to the listener's hope of purchasing his first rental property within the next couple of years. Wayne challenges that timeline. He believes many aspiring investors underestimate how much progress they could make if they committed to their education and started taking action immediately. Rather than spending years casually researching, he encourages the listener to begin comparing markets, running numbers, understanding financing, and building connections with experienced investors. Wayne explains that investors can learn independently through free resources, including the Morning Show, or seek more structured education and support through mentorship. The important thing is to make informed decisions and take meaningful steps toward their goals. REI Masters Costa Rica Retreat Update Wayne and Gabby also share an update following the Costa Rica Retreat information session held on October 29. The retreat is scheduled for January 16 to 20, 2027, at a private lodge near Playa Negra, Costa Rica. The event will combine real estate investing education, goal setting, personal development, and the opportunity to build a personalized investment roadmap. Several participants have already registered, and Wayne and Gabby are coordinating accommodation arrangements with attendees. Interested investors who missed the information session can contact REI Masters to inquire about remaining spaces or arrange a conversation with Gabby. Email: info@reimasters.ca Key Takeaways Investing close to home is convenient, but convenience doesn't guarantee a profitable investment. Investors should compare markets using cash flow, long-term returns, tenant demand, and legislation. A property should make financial sense without relying exclusively on appreciation. The Five Fundamentals provide a framework for evaluating investment opportunities. The 5% Rule helps assess whether a property offers an adequate cash flow cushion. Researching the local economy and individual neighbourhoods is essential. Employment stability and long-term population trends influence rental demand. Provincial landlord-tenant laws can significantly affect investment risk. A reliable local team is critical when investing out of province. Remote property management can be possible with the right systems and professionals. Investors should invest in education and take action rather than waiting indefinitely. About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier every weekday morning at 7:00 AM Mountain Time for free Canadian real estate investing education. Wayne and Gabby are full-time real estate investors, coaches, and founders of REI Masters. They share practical lessons from their own rental portfolio and help Canadian investors understand cash flow, financing, property management, creative strategies, and long-term investment planning. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program includes: Weekly live real estate investing coaching on Thursdays at 7:00 PM Mountain Time One-on-one investment strategy coaching Access to the Masters Vault educational library A private community of Canadian real estate investors Training covering market analysis, deal analysis, financing, joint ventures, Agreements for Sale, BRRRR, and property management Education on the Five Fundamentals and the 5% Rule Support with building a personalized real estate investing roadmap Ongoing coaching, accountability, and guidance Learn more or book a discovery call: https://www.reimasters.ca Remote Property Management Course Learn how Gabby manages rental properties remotely using established systems, contractors, and processes. The course is available through REI Masters. https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time. Bring your real estate investing questions and join the conversation with investors from across Canada. This episode discusses investing strategies for educational purposes. Property returns are not guaranteed, and legal, financial, and tax considerations vary by province and individual circumstances.

October 29, 202646 min

Secrets To Finding Great Tenants - Gabby Hillier

Secrets To Finding Great Tenants - Gabby Hillier Are you actually reading your prospective tenants' credit reports, or are you just checking their credit scores? For many landlords, tenant screening consists of reviewing an application, verifying income, checking references, and looking for a satisfactory credit score. But according to experienced landlord and property manager Gabby Hillier, there's much more valuable information hiding inside those credit reports. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier discuss some of the tenant screening strategies Gabby has developed over more than 15 years of managing rental properties. Following Gabby's appearance as a guest speaker at a FrontLobby tenant screening webinar, the conversation focuses specifically on how to interpret credit reports, assess an applicant's financial obligations, recognize recent borrowing activity, and look beyond the credit score when selecting tenants. If you own rental properties in Canada, this episode offers practical insight into how experienced landlords evaluate applications and manage tenant selection risks. Why Credit Scores Don't Tell the Whole Story Most landlords understand that reviewing a prospective tenant's credit history is an important part of the application process. But Wayne and Gabby explain that many investors don't fully understand what they're reviewing. They obtain the credit report, look at the credit score, and decide whether the applicant has passed or failed. Gabby believes this approach overlooks some of the most important information available. A credit score provides a general indication of creditworthiness, but it doesn't necessarily tell a landlord everything about the applicant's current financial situation. A person might have a strong credit score while carrying substantial debt. Another applicant may have a lower score because of past circumstances that are no longer affecting their finances. Gabby explains why landlords need to understand the information behind the number. Using Credit Reports to Verify an Application Before even examining an applicant's financial history, Gabby reviews the personal information contained in the credit report. She compares the applicant's legal name and address history with the information provided on the rental application. This helps identify inconsistencies that may need clarification. Gabby emphasizes that credit reports are only one component of the process. She also verifies identification and requests supporting documentation to confirm that the applicant's circumstances match what they've disclosed. The objective is to make an informed decision using multiple reliable sources of information rather than relying on a single report. Understanding Credit Utilization One of the most important sections Gabby reviews involves an applicant's credit accounts and outstanding balances. Credit utilization refers to how much available revolving credit an individual is currently using. For example, someone might have access to $20,000 in credit and carry a balance of $19,000. That tells a different story from someone who has the same credit limit but only owes $1,000. Gabby examines available credit, outstanding balances, and reported loan obligations to better understand the applicant's financial commitments. She also considers installment loans, including vehicle financing and other personal loans. The goal is to determine whether an applicant has sufficient financial flexibility to manage their rent alongside their existing obligations. A Real Tenant Application With Significant Debt Wayne and Gabby discuss a recent rental application that initially looked excellent. The applicant had strong income, good communication, and appeared to be a suitable match for the property. The rent was approximately $1,500 per month, and the applicant reportedly earned around $120,000 annually. Based on income alone, affordability appeared promising. However, the credit report revealed additional financial obligations. The applicant had a vehicle loan of approximately $70,000 and roughly $65,000 in additional credit accounts and loans, much of which was already utilized. Those obligations could translate into substantial monthly debt payments. Wayne explains why someone who earns $120,000 annually may still experience financial pressure if a significant portion of their income is committed to servicing existing debts. The lesson is that landlords should not evaluate affordability using income and rent alone. They should also consider the applicant's broader financial commitments. Available Credit vs Outstanding Debt Gabby makes another important distinction. Having access to a large amount of credit is not the same as actually owing that amount. For example, an applicant with $100,000 in unused available credit may have much more financial flexibility than someone who has borrowed nearly all of it. Gabby explains that she would not automatically reject an otherwise strong applicant simply because they have access to substantial credit. However, she considers whether the applicant's financial situation could change if that credit were heavily utilized. Tenant screening is about evaluating the overall picture rather than treating any single number as an automatic approval or rejection. One of Gabby's Favourite Sections: Credit Inquiries Gabby explains why one of her favourite sections of the credit report is the section showing recent credit inquiries. This information can reveal when an applicant has applied for certain credit products. The dates and types of inquiries can help landlords understand whether the individual has recently been seeking additional financing. Gabby particularly looks for clusters of recent inquiries involving high-interest lenders, payday loan providers, and other sources of short-term borrowing. These may warrant additional questions about the applicant's current financial situation. She also explains why context matters. Multiple inquiries related to shopping for a vehicle loan may have a reasonable explanation. An older period of financial difficulty may be less relevant if the applicant's recent payment history and finances demonstrate improvement. The goal is not to make assumptions about someone based on a single credit inquiry. It's to recognize patterns, investigate relevant concerns, and understand whether the applicant appears financially stable today. Hard Credit Checks vs Soft Credit Checks Wayne and Gabby also discuss the difference between hard and soft credit inquiries. Hard inquiries commonly occur when someone applies for certain forms of credit and may affect their credit score. Soft inquiries generally don't affect a person's credit score. This distinction is important because prospective tenants sometimes express concern that a landlord's credit check could lower their score. Landlords should understand the type of inquiry performed by their screening provider and explain it accurately to applicants. Looking at Someone's Financial History and Current Situation Throughout the conversation, Wayne and Gabby emphasize two important considerations. The first is an applicant's history. Have they generally met their financial obligations? Do their reported accounts show a consistent pattern of responsible payments? The second is their current circumstances. Are they carrying unusually high balances? Have they recently applied for multiple loans? Are there indications that their financial obligations may be difficult to manage? By considering both, landlords can develop a more complete picture of the applicant's finances. Why Past Financial Problems Don't Always Mean Future Problems Wayne and Gabby also explain that not every applicant with a difficult financial history should automatically be rejected. People go through challenging circumstances. Sometimes someone experiences financial difficulties because of a change in employment, an unexpected expense, or another life event. Gabby explains that she considers the context, how long ago the problem occurred, and what the applicant's financial situation looks like today. Wayne adds that they have occasionally accepted applicants while recognizing that certain aspects of their history presented additional risk. The key is making deliberate, informed decisions rather than ignoring concerns or assuming that past events will necessarily repeat. Why Good Systems Matter More Than Fancy Software Gabby reflects on being invited to speak at FrontLobby's tenant screening webinar despite not personally using the platform in her property management business. She explains that she and Wayne have established their own screening and management systems over the years. Wayne emphasizes that screening platforms and software can be useful, but their effectiveness depends on how people use them. A tool cannot replace judgment, proper verification, or a thorough understanding of tenant selection. The objective is to build an effective, consistent screening process using the tools and systems that make sense for your business. What Is FrontLobby? FrontLobby provides tenant screening, rent reporting, and debt recovery services for landlords. Gabby participated in a FrontLobby webinar about common tenant screening mistakes and shared her experience as a landlord. The discussion highlights why credit reports and screening tools can be useful resources, but landlords still need to know how to interpret the information they receive. The Goal of Tenant Screening Wayne closes the discussion by returning to the most important objective. Landlords want tenants who can afford the rent, communicate responsibly, and fulfill their obligations under the lease. No screening process can predict the future or eliminate every possible risk. However, reviewing financial information thoroughly, verifying documentation, and understanding an applicant's current circumstances can help landlords make better-informed decisions. The objective is not simply to find someone with a high credit score. It's to select a qualified tenant through a consistent, fair, and well-documented screening process. Also Discussed in This Episode Gabby's appearance at the FrontLobby tenant screening webinar Why landlords should look beyond a credit score Using credit reports to verify applicant information Understanding credit utilization and debt obligations How a high-income applicant can still face financial pressure Available credit compared with outstanding balances Reviewing recent credit inquiries Recognizing borrowing patterns that warrant further investigation Hard credit checks compared with soft inquiries How past financial difficulties can differ from current circumstances The importance of checking supporting documentation Why simple, established property management systems can work Balancing screening information with an applicant's overall circumstances The upcoming REI Masters Costa Rica Retreat About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time. Wayne and Gabby are full-time Canadian real estate investors, coaches, and founders of REI Masters. The Morning Show provides free real estate investing education, practical strategies, and insights from their experience purchasing and managing rental properties in Alberta. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program offers: Weekly live real estate investing coaching on Thursdays at 7:00 PM Mountain Time One-on-one investment strategy coaching Access to the Masters Vault educational library A private community of Canadian real estate investors Training covering BRRRR, Agreements for Sale, seller financing, joint ventures, rent to own, financing, property management, and tenant screening Help evaluating investment opportunities and understanding rental cash flow Ongoing coaching, accountability, and support Learn more or book a discovery call: https://www.reimasters.ca REI Masters Costa Rica Retreat Wayne and Gabby also discuss their upcoming Costa Rica Retreat, scheduled for January 16 to 20, 2027, near Playa Negra. The intimate retreat will combine real estate investing education, personal goal setting, investment planning, and opportunities to connect with like-minded investors. The retreat information session is scheduled for October 29 at 5:30 PM Mountain Time. Contact info@reimasters.ca for details. Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch Wayne and Gabby live every weekday morning at 7:00 AM Mountain Time on YouTube. Submit your real estate investing questions and join the discussion with Canadian investors from across the country. Tenant screening should follow applicable privacy, consumer reporting, and human rights laws. Credit information should be assessed fairly and consistently, with appropriate authorization and verification.

October 28, 202652 min

Should I Buy a Rental Property Right Now With This Crappy Rental Market?

Should I Buy a Rental Property Right Now With This Crappy Rental Market? Is now a bad time to buy a rental property in Edmonton? With rental vacancies becoming more challenging, additional rental supply entering the market, and winter approaching, many Canadian real estate investors are questioning whether they should continue purchasing properties or wait until conditions improve. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier answer an excellent listener question about buying a second investment property during a slower rental market. The listener already owns a suited property and is considering purchasing a townhouse but is concerned about finding tenants during the winter months. Should they buy now, potentially face a longer vacancy, or wait until spring? Wayne and Gabby explain why there are advantages and disadvantages to both approaches, how they manage seasonal vacancies in their own portfolio, and why waiting for the perfect time to buy could mean missing an excellent investment opportunity. The episode also covers condominium document reviews, utility billing strategies for suited properties, and an update on the REI Masters Costa Rica Retreat. Is It a Bad Time to Buy a Rental Property? The main question comes from a listener who has been following the Morning Show for almost a year. They currently own a property with a secondary suite and are considering adding a townhouse to their portfolio. Their biggest concern is timing. With fewer tenants looking for rental properties during the fall and winter, should they purchase a property in October or wait until December or January and arrange possession for April or May? Wayne and Gabby agree that the concern is legitimate. Rental activity is seasonal, and fewer people typically want to move during the coldest months of the year. However, they explain that the rental market is only one part of the equation. Investors also need to consider the conditions in the real estate sales market. Why Winter Can Be a Great Time to Buy Wayne explains that the same seasonal factors that make finding tenants more challenging can also create opportunities for property buyers. During the spring and summer, the real estate market often experiences stronger buyer demand. More buyers compete for available properties, which can make negotiations more difficult. During the colder months, fewer people are actively purchasing homes. Properties may sit on the market longer, sellers may become more motivated, and investors can sometimes negotiate more favourable terms. That can mean paying less for a property or avoiding multiple-offer situations. Wayne explains that a strong investment opportunity doesn't always appear when it's convenient. You need to be actively looking so that you're prepared to act when the right property becomes available. The Trade-Off Between Purchase Price and Vacancy Gabby acknowledges that purchasing a vacant rental property in December or January may create additional holding costs. It could take longer to find a suitable tenant. That means carrying the mortgage, condominium fees, utilities, insurance, and other expenses without rental income. However, investors should compare those potential costs against the savings they might achieve when purchasing the property. If an investor can negotiate a significantly better purchase price during the slower season, the long-term financial benefit may outweigh the temporary cost of vacancy. The important thing is to account for those potential costs before purchasing. A lower price is only valuable if the property still makes sense financially. Why You Should Always Be Looking for Deals Wayne emphasizes that investors shouldn't restrict their property searches to certain months of the year. A great investment opportunity may appear in October, January, May, or August. Waiting until spring doesn't guarantee that a suitable property will be available. It could also mean competing against more buyers. His recommendation is to analyze opportunities throughout the year and make decisions based on the quality of the investment rather than simply the season. Investors should have their financing, criteria, and analysis systems ready so they can act when a property meets their requirements. How to Avoid Winter Rental Vacancies One of the most practical lessons from today's episode concerns structuring lease terms. Wayne and Gabby explain that they prefer having their rental property leases expire during the spring and summer months. Those months typically offer a larger pool of prospective tenants and more favourable moving conditions. But what happens if you purchase a property in December and secure a tenant for January? A standard 12-month lease would expire the following January, potentially creating another vacancy during the slowest time of year. Gabby shares a strategy they use in their own rental portfolio. Instead of signing a standard 12-month lease, they may offer a longer initial term, such as 16, 17, or 18 months. This allows the lease to expire during a more favourable rental season. If the tenant renews, the landlord can then return to a standard 12-month lease cycle. It's a simple strategy that can improve the timing of future rental turnovers. Why Shorter Leases Aren't Always the Answer Some landlords consider signing six- or seven-month leases when filling winter vacancies. The idea is to bring the lease expiration date into the spring or summer. However, Wayne and Gabby generally prefer longer initial leases. A short lease can create another vacancy only a few months after the property was first rented. That may lead to additional advertising, cleaning, turnover expenses, and periods without rental income. Gabby also discusses Alberta's rent increase rules. Landlords cannot simply sign a six-month lease and automatically increase the rent when it expires. Applicable notice requirements, the length of time since the last increase, and the type of tenancy must all be considered. The takeaway is to understand the legal and financial consequences before choosing a lease term. Good Tenants Are Still Looking Despite discussing the challenges of the rental market, Wayne and Gabby share positive news from their own portfolio. They have filled several vacancies recently and received applications from strong prospective tenants. Their first garden suite tenant also moved in earlier than expected. This is particularly encouraging because they are operating during a slower seasonal rental period. Wayne explains that a smaller tenant pool doesn't mean there are no suitable tenants. People still relocate for employment, family circumstances, and other reasons throughout the year. The challenge is making sure your property stands out and your advertising reaches the right applicants. Why Rental Marketing and Tenant Selection Matter Wayne discusses the importance of marketing rental properties effectively, particularly when prospective tenants have many options. It's not enough to simply publish a listing and hope someone applies. Landlords need to understand what tenants are looking for and how to communicate the advantages of their properties. They also need effective systems for reviewing applications, communicating with prospective tenants, and completing leases. Wayne shares an example involving an applicant who was interested in a rental property but delayed signing the lease. Until the agreement is completed, there is still uncertainty. Landlords should maintain clear expectations and avoid assuming that verbal interest guarantees a completed tenancy. Should You Install Separate Utility Meters in a Suited Property? Another listener asks about installing individual utility meters in legally suited rental properties. Wayne and Gabby explain that they generally prefer charging tenants a flat monthly utility amount rather than installing separate meters. Under their system, the utility accounts remain in the landlord's name. They review historical consumption, calculate the average expenses, and establish a flat utility charge with a reasonable buffer. This can produce additional income when the amounts collected exceed actual utility costs. Installing separate meters may make billing more convenient, but the installation costs need to be considered. Wayne and Gabby explain that they use a similar approach in their multi-unit garden suite developments. The key is understanding the property's actual utility consumption and ensuring the billing arrangement complies with applicable rules and lease terms. Can You Review Condo Documents Before Making an Offer? The original listener also asks an important question about purchasing a condominium townhouse. Can you review the condominium corporation's documents before submitting an offer? Wayne explains that buyers can sometimes obtain existing documents from sellers, owners, or other residents before making an offer. However, those documents may not be current. He prefers submitting an offer that includes an appropriate condition allowing time for condominium document review. Once the offer is accepted, the buyer can obtain and review the necessary documents before deciding whether to remove the condition. Important documents include: Current condominium bylaws Financial statements Reserve fund information and studies Annual general meeting minutes Board meeting minutes Condominium fees and budgets Information about special assessments and outstanding issues Wayne emphasizes that buyers should complete proper due diligence rather than relying exclusively on older documents or informal conversations. A properly drafted conditional offer can allow investors to secure an opportunity while completing necessary investigations. The ability to terminate an agreement and recover a deposit depends on the contract's specific conditions and deadlines. Why Wayne Recommends Taking Action Throughout the episode, Wayne returns to a recurring lesson. Investors need to stop waiting for everything to be perfect. There will always be uncertainties surrounding interest rates, rental demand, property prices, and the economy. The objective is not to eliminate every possible problem. It's to understand the risks, maintain appropriate cash flow and reserves, and purchase properties that make sense under realistic conditions. A great investment opportunity should be evaluated on its own merits, regardless of the month in which it becomes available. Celebrate the Wins in Your Rental Portfolio Wayne and Gabby also discuss why real estate investors often overlook their successes. When everything works as expected, landlords tend to move on without thinking much about it. But when an appliance breaks or a tenant reports a problem, it can suddenly dominate the day. Gabby shares how they recently had to replace an unexpected washing machine at a newly purchased property. Although it was inconvenient, she recognizes it as a normal part of operating rental properties. She also shares their recent leasing successes and emphasizes why it's important to acknowledge positive results instead of focusing entirely on problems. REI Masters Costa Rica Retreat Update Wayne and Gabby also share additional details about the upcoming REI Masters Costa Rica Retreat. The retreat is scheduled for January 16 to 20, 2027, at a private resort near Playa Negra, Costa Rica. The experience will combine real estate investing education, personal development, goal setting, and opportunities to connect with like-minded investors. The resort has nine guest rooms, and some spaces have already been reserved. Participants will work on defining their ideal lifestyle and creating a real estate investing roadmap to support their personal goals. The retreat information session is scheduled for Thursday, October 29, at 5:30 PM Mountain Time. For details and registration information, contact: info@reimasters.ca Key Takeaways A softer rental market doesn't automatically mean it's a bad time to purchase investment properties. Winter can create opportunities to negotiate better prices and face less buyer competition. Investors should account for potentially longer vacancies and holding costs. Good opportunities can appear at any time of year. Longer initial lease terms can help move future turnovers into stronger rental seasons. Proper tenant marketing and screening matter even more in competitive rental markets. Flat-rate utilities may be an alternative to installing separate meters in suited properties. Condominium buyers should review current documents and conduct proper due diligence. Investors should recognize and celebrate the successes within their portfolios. About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time. Wayne and Gabby are full-time Canadian real estate investors, coaches, and founders of REI Masters. The Morning Show provides free education, investment strategies, and practical answers to questions from real estate investors across Canada. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program offers: Weekly live coaching every Thursday at 7:00 PM Mountain Time One-on-one investment strategy coaching Access to the Masters Vault educational library A private community of Canadian real estate investors Training covering BRRRR, Agreements for Sale, seller financing, rent to own, joint ventures, property management, and tenant selection Guidance on evaluating investment opportunities and understanding cash flow Ongoing coaching, accountability, and support Learn more: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch Wayne and Gabby live every weekday at 7:00 AM Mountain Time on YouTube. Submit your investing questions and join the discussion with Canadian investors from across the country.

October 27, 20261 hr 7 min

The Best Real Estate Investing Advice If You're Struggling

How to Overcome Your Fear of Real Estate Investing What's stopping you from buying your first rental property? For many aspiring real estate investors, it isn't necessarily money, financing, or finding the right opportunity. It's fear. Fear of making a mistake. Fear of losing money. Fear of bad tenants. Fear of buying the wrong property. And sometimes, simply the fear of not knowing what could go wrong. On today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier tackle one of the most common challenges facing new and experienced investors: overcoming the fears that prevent them from taking action. Drawing on more than 15 years of investing experience and countless coaching conversations, Wayne shares the concerns he hears most frequently and explains how education, careful planning, cash flow, and strong business systems can help investors manage those risks. Gabby also reflects on the fears she experienced when they began their own real estate investing journey and how knowledge and experience gradually changed her perspective. This episode isn't about pretending real estate investing is risk-free. It's about understanding what can go wrong, preparing for those situations, and developing the confidence to move forward. Why So Many Investors Never Buy Their First Property Wayne opens the episode by sharing a recent coaching conversation with an aspiring investor. The individual had spent considerable time learning about real estate investing, watching others purchase rental properties, and developing an understanding of the business. Yet despite feeling knowledgeable and prepared, he still couldn't bring himself to purchase his first investment property. Wayne explains that this is an incredibly common situation. Many aspiring investors spend years researching markets, analyzing opportunities, attending seminars, and learning strategies without ever taking meaningful action. Sometimes they know exactly what they're afraid of. Other times, they simply have an overwhelming feeling that something could go wrong. Wayne's approach is to identify those fears individually, determine whether the risks are realistic, and develop a plan for managing them. Gabby Shares Her Own Experience With Fear Gabby explains that she was extremely anxious when she and Wayne first started investing in real estate. While Wayne appeared confident about moving forward, she struggled with uncertainty about what they were getting into. There were so many unknowns. She didn't fully understand how everything worked or what would happen if something went wrong. Looking back, Gabby recognizes how much of that fear came from a lack of experience and information. Today, after years of managing rental properties, purchasing investments, and handling challenging situations, she approaches those same concerns very differently. Her experience reinforces an important point. Confidence often develops through education, preparation, and experience rather than appearing overnight. Confidence vs Ignorance Wayne makes an important distinction between confidence and recklessness. He explains that his confidence never came from believing he knew everything about real estate investing. Instead, he believed in his ability to find answers. When he encountered something unfamiliar, he would research it, ask questions, seek professional guidance, and develop a solution. That willingness to be resourceful allowed him to move forward without pretending that risks didn't exist. For aspiring investors, this means developing the ability to recognize what they don't know and finding reliable sources of information before making important decisions. What If I Buy the Wrong Property? One of the biggest fears among new investors is purchasing a property that turns out to be a poor investment. A listener shares concerns about eventually converting her current residence into a rental property. Wayne explains that a home purchased primarily as a personal residence may not necessarily perform well as an investment property. The financing, purchase price, amortization, operating expenses, and achievable market rent may not produce the cash flow needed to make it a strong rental. Rather than assuming the property will work, investors should run the numbers. Wayne discusses why understanding rental demand, cash flow, and the 5% Rule Cash Flow Test is essential before purchasing an investment property. He also emphasizes that making a less-than-ideal decision in the past doesn't mean someone cannot improve their investment strategy moving forward. What If My Tenant Doesn't Pay Rent? This is one of the most common concerns for prospective landlords. Wayne explains that no screening process can guarantee a tenant will always pay rent. Even an applicant with good credit, stable employment, strong references, and a history of making payments could eventually stop paying. The goal is not to eliminate every possible risk. It's to reduce the likelihood of problems and understand the appropriate response if they occur. That includes: Thorough tenant screening Verifying employment, income, and references Understanding applicable landlord-tenant legislation Maintaining accurate documentation Following proper procedures when rent is unpaid Having financial reserves available to cover temporary shortfalls Knowing how to respond can make unexpected situations far less intimidating. What If the Tenant Trashes My Property? Property damage is another concern that prevents some people from becoming landlords. Although the episode does not go into a detailed damage-recovery process, Wayne identifies this as one of the fears investors need to plan for. Proper screening, inspections, documentation, adequate insurance, and maintenance reserves are all important parts of protecting a rental property business. Landlords should also understand their legal rights and responsibilities before renting a property. What If Interest Rates Go Up? Wayne discusses why rental properties should be purchased with sufficient cash flow to withstand changing financing costs. For example, an investment property generating $500 per month in cash flow may have some room to absorb a $200 monthly increase in mortgage expenses. The remaining cash flow would be approximately $300 per month, assuming everything else stayed the same. This doesn't make rising interest rates harmless. It demonstrates why purchasing properties with a reasonable financial cushion can help protect investors from being forced to sell when financing costs increase. What If Rental Prices Go Down? Rental markets are constantly changing. New construction, increased supply, shifting demand, and broader economic conditions can all influence market rents. Wayne explains that investors should be prepared for rents to soften. If a property generates strong cash flow when purchased, the investor may have more flexibility to lower the rent when necessary. A property operating with little or no cash flow has much less room to absorb unexpected changes. This is one reason Wayne places so much importance on buying properties that pass his 5% Rule Cash Flow Test. What If the Roof Needs Replacing? Wayne gives a straightforward answer to this common fear. Eventually, it probably will. Roofs, furnaces, hot water tanks, appliances, and other property components have finite useful lives. Replacing them is a normal part of owning rental real estate. Rather than worrying about whether major repairs will eventually happen, landlords should prepare financially for them. Wayne recommends directing rental cash flow into reserve funds so money is available when significant repairs are necessary. He emphasizes that having sufficient reserves can make the difference between an inconvenience and a financial emergency. What If My Property Doesn't Appreciate? Another common concern is purchasing a property that doesn't increase in value. Wayne explains that one of his core investing fundamentals is to avoid relying on appreciation to make an investment successful. Instead, he prefers purchasing properties that generate cash flow from the beginning. Although property values can increase over time, appreciation is uncertain. By prioritizing cash flow, investors can build an investment strategy that isn't entirely dependent on selling a property for more than they paid. What If I Can't Find a Tenant? Vacancy is another important risk. Wayne explains that investors need to purchase properties people actually want to rent. That means choosing appropriate markets, neighbourhoods, property types, and tenant profiles. A low purchase price does not automatically make a property a good investment. The property also needs to attract suitable tenants at a rent that supports the investment's financial performance. Understanding rental demand before purchasing can reduce vacancy risk, although no property is guaranteed to remain occupied. The 5% Rule and Five Fundamentals Throughout the episode, Wayne repeatedly returns to the principles he teaches through REI Masters. His Five Fundamentals help investors evaluate cash flow, market quality, tenant demand, landlord-tenant legislation, and long-term growth potential. The 5% Rule Cash Flow Test helps investors assess whether a property provides an appropriate return relative to the capital invested. These frameworks are designed to help investors make more consistent decisions and manage risk. Wayne emphasizes that strong cash flow and adequate reserves provide investors with more options when unexpected situations occur. Stop Worrying About What You've Already Done Wayne also addresses investors who regret previous decisions. Some people purchase properties before fully understanding the numbers. Others follow advice that turns out to be unsuitable for their particular circumstances. Wayne encourages those investors to focus on what they can control today. They cannot change the original purchase. But they can evaluate the property, learn from their experiences, and explore ways to improve the investment or their overall portfolio. The message is to stop allowing past decisions to prevent better decisions in the future. How Artificial Intelligence Can Help Investors Learn Later in the episode, Wayne discusses how access to information has changed dramatically. He shares a conversation with his daughter about the importance of asking questions and finding answers instead of accepting that something is unknown. Wayne believes tools such as ChatGPT can make researching unfamiliar subjects, exploring business ideas, and learning new skills more accessible. He encourages listeners to become more resourceful and take advantage of the information available to them. At the same time, important real estate, legal, financial, and tax decisions still require verification and appropriate professional guidance. The underlying lesson is that investors should actively seek answers rather than allowing uncertainty to become a permanent obstacle. Why Education Alone Isn't Enough One of the episode's most important points is that knowledge and action are two different things. An investor can understand how to analyze properties, arrange financing, screen tenants, and manage a rental business. But they may still lack the confidence to purchase their first property. Wayne explains that this is where mentorship and accountability can become valuable. Sometimes people need someone experienced beside them when making an unfamiliar decision. Why Mentorship Helps Investors Take Action Wayne explains that the REI Masters Mentorship Program is about much more than teaching real estate investing strategies. The initial education provides members with the knowledge and fundamentals needed to evaluate opportunities. The longer-term value comes from applying that knowledge. Through individual coaching, strategic planning, and a supportive investor community, members can work through uncertainty and develop the confidence to make decisions. The objective isn't simply to know more about real estate investing. It's to actually build the portfolio and life they want. REI Masters Costa Rica Retreat Update Wayne and Gabby also share another update about their upcoming Costa Rica Retreat. The retreat is scheduled for January 16 to 20, 2027, at a private resort near Playa Negra, Costa Rica. The experience will combine real estate investing workshops, goal setting, personal development, investment planning, and opportunities to connect with other investors. The resort has nine guest rooms, and registration interest has been strong. Wayne and Gabby also discuss possible accommodations for attendees travelling with children, with arrangements being considered individually so the retreat sessions remain focused. An information session is scheduled for Thursday, October 29, at 5:30 PM Mountain Time. For registration details, contact: info@reimasters.ca Gabby's Tenant Screening Webinar Gabby also announces that she will be participating as a guest speaker in a FrontLobby tenant screening webinar. The webinar will focus on common tenant screening mistakes and what landlords can do differently. Date: Wednesday, October 28, 2026 Time: 5:00 PM Mountain Time Listeners interested in attending can contact Gabby for the registration information. Key Takeaways Fear of the unknown is one of the biggest obstacles for new investors Confidence comes from understanding risks and preparing for them Resourcefulness is more valuable than pretending to know everything Good cash flow helps investors withstand unexpected changes Financial reserves should be established before major repairs occur No tenant screening process can eliminate every risk Rental demand matters just as much as purchase price Property appreciation should not be the only source of expected profit Investors should learn from past decisions rather than remain stuck in regret Education and technology can help make information more accessible Mentorship, accountability, and community can help investors take action About the Canadian Real Estate Investing Morning Show Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time for free Canadian real estate investing education. Wayne and Gabby are full-time real estate investors, coaches, and the founders of REI Masters. They share practical strategies and experiences from their own rental property portfolio to help Canadian investors build wealth and financial independence. REI Masters Mentorship Program Want to work directly with Wayne and Gabby? The REI Masters Mentorship Program provides: Weekly live real estate investing coaching every Thursday at 7:00 PM Mountain Time Access to the Masters Vault, including courses and advanced workshops One-on-one investment strategy coaching Help with rental property analysis, financing, and investment planning Education covering BRRRR, joint ventures, Agreements for Sale, seller financing, rent to own, and property management Access to a supportive community of Canadian real estate investors Ongoing guidance, accountability, and support Learn more or book a discovery call: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadians. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch the Canadian Real Estate Investing Morning

October 26, 202649 min

How I'd Grow a Canadian Real Estate Portfolio With $0 in 2026

How I'd Grow a Canadian Real Estate Portfolio With $0 in 2026 How to Build a $1 Million Real Estate Portfolio Starting With $0 Can you really build a million-dollar real estate portfolio without using your own money? According to Wayne Hillier, absolutely. And he's spent more than 15 years proving that it's possible. On today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby break down how they would approach building a Canadian real estate portfolio from scratch in 2026 and 2027. Wayne shares two strategies he has personally used to acquire properties with little to none of his own money, explains why some popular investing strategies aren't realistic for beginners without capital, and identifies three Canadian markets he believes offer opportunities in the current economic environment. Plus, Wayne and Gabby officially announce their upcoming REI Masters Costa Rica Retreat. Can You Really Invest in Real Estate With $0? One of the biggest obstacles preventing Canadians from getting started in real estate investing is the belief that they need substantial savings. Between down payments, closing costs, financing requirements, and unexpected expenses, purchasing investment properties can feel out of reach. And even investors who have enough money to purchase their first rental often discover they don't have enough capital to purchase their second or third. Wayne explains that creative financing becomes increasingly important as investors try to scale. He shares that, throughout their investing journey, he and Gabby have used approximately $15,000 of their own money to build their multimillion-dollar real estate portfolio. The remainder of their acquisitions have been funded using strategies that involve partners and alternative financing arrangements. These strategies require education, experience, planning, and an understanding of their risks, but they can offer alternatives to funding every property purchase personally. Why the BRRRR Strategy Isn't the Best Starting Point With $0 The BRRRR strategy is one of the most widely discussed methods of building a real estate portfolio. It involves purchasing a property, renovating it, renting it, refinancing based on its new value, and potentially repeating the process. When executed successfully, investors may be able to recover some or all of their initial capital through refinancing. But Wayne highlights one major problem for someone starting with no money. You still need money to begin. The down payment, renovations, carrying costs, and other acquisition expenses must generally be funded before a refinance can occur. For that reason, Wayne doesn't consider BRRRR the ideal starting strategy for someone who genuinely has no capital. Instead, he focuses on two alternatives. Strategy #1: Joint Venture Partnerships The first strategy Wayne recommends learning is joint venture investing. A joint venture involves two or more people contributing different resources toward the purchase and operation of an investment property. In the structure Wayne describes, one partner provides the money and financing, while the other contributes the opportunity, real estate investing expertise, and ongoing management. The partners then share the profits according to their agreement. This can be an attractive arrangement because many Canadians are interested in investing in real estate but don't necessarily have the time, experience, or confidence to acquire and manage properties themselves. An educated investor can help bridge that gap. Wayne explains that a successful joint venture should create value for both partners. One person has capital but may lack the knowledge or time to invest directly. The other has the knowledge and ability to operate the investment but lacks the required capital. Together, they may be able to acquire a property that neither would have purchased independently. The key is building expertise, identifying strong opportunities, and structuring partnerships that are financially sustainable and mutually beneficial. Strategy #2: Agreements for Sale and Seller Financing Wayne's second strategy is one of his personal favourites. Agreements for Sale. He explains that this strategy played an enormous role in accelerating his real estate investing journey. At one point, Wayne was struggling to find new joint venture partners willing to finance additional acquisitions. Despite already owning several investment properties, potential partners wanted him to demonstrate more experience. Rather than waiting for someone else to fund his growth, Wayne learned how to acquire properties using Agreements for Sale. An Agreement for Sale is a seller financing arrangement in which the seller agrees to finance the purchase under negotiated contractual terms. Depending on the agreement, the buyer may acquire beneficial ownership and take responsibility for operating the property while the seller retains legal title until the agreed completion date. In certain circumstances, investors may be able to acquire properties with little or no money down. Wayne explains that sellers may consider these arrangements for a variety of reasons. Some homeowners are struggling with mortgage payments. Others are dealing with properties they no longer want to manage. Some need an alternative when a conventional sale is not meeting their needs. Seller financing can sometimes provide a solution. However, Wayne emphasizes that the objective is not to pressure sellers or take advantage of difficult circumstances. It's to identify situations where a properly structured agreement can benefit everyone involved. Why Seller Financing Could Become More Relevant Wayne believes changing market conditions are creating renewed opportunities for creative financing strategies. When housing markets become more competitive, properties take longer to sell, or homeowners experience financial difficulties, some sellers may become more open to alternative arrangements. Investors who understand seller financing may be better equipped to recognize those opportunities. Wayne explains that the most important skill is learning how to solve problems. By understanding Agreements for Sale, investors can determine whether the strategy provides an appropriate solution for a particular homeowner. Not every property or seller will be suitable. And investors need to understand the contractual, financing, legal, and operational risks involved before proceeding. Why Education and Integrity Matter Wayne also discusses the importance of learning Agreements for Sale properly. He credits Barry and Donna Maguire with teaching him the importance of structuring transactions that create positive outcomes for both buyers and sellers. Creative financing contracts can become complicated, particularly when there is an existing mortgage, the seller retains legal title, or the agreement includes future financing and exit obligations. Wayne encourages investors to take the time to understand how the contracts work and ensure the arrangement is appropriate for everyone. If a seller has a better alternative, investors should be willing to recommend it. Building a successful investing business requires trust, integrity, and strong relationships. Three Canadian Real Estate Markets Wayne Is Watching Wayne also shares three markets he believes investors should pay attention to in 2026 and 2027. 1. Edmonton, Alberta Edmonton remains Wayne's preferred real estate investing market. He believes the city continues to provide opportunities for investors who understand the rental market and can identify properties with strong long-term fundamentals. However, he cautions that markets operate in cycles. Edmonton will not necessarily remain the strongest opportunity forever. Investors need to understand changing rental conditions, supply, demand, property values, and cash flow before making decisions. 2. Red Deer, Alberta Red Deer is Wayne's second market to watch. Although he generally prefers larger markets, he believes Red Deer offers interesting opportunities. He highlights the city's growth, comparatively limited rental supply, and potential for continued rental demand. Wayne also discusses how development restrictions can sometimes produce unexpected effects on the existing rental market. He believes investors should research Red Deer as a potential alternative to larger Alberta cities. 3. Saskatoon, Saskatchewan Wayne's third market is Saskatoon. He identifies relative affordability, rental demand, economic activity, and its more measured construction environment as reasons the city deserves attention. He also discusses how investor interest can shift between cities as market cycles change. Just as some investment capital moved from Calgary toward Edmonton, Wayne believes Saskatoon could attract additional attention in future years. These are Wayne's market opinions, and individual property performance still depends on local conditions and deal analysis. The New Agreement for Sale Course Wayne and Gabby are preparing an Alberta-focused Agreement for Sale course through REI Masters. The course will cover how the strategy works, how to identify appropriate opportunities, how to approach sellers, how transactions can be structured, and how investors should plan their exits. The goal is to help investors understand how seller financing may allow them to acquire properties without relying entirely on their own savings or conventional mortgage financing. More information about the course will be announced soon. REI Masters Costa Rica Retreat Officially Announced Wayne and Gabby also announce that the REI Masters Costa Rica Retreat has been booked for January 16 to 20, 2027. The retreat will take place at a private lodge near Playa Negra in Costa Rica. The lodge has only nine guest rooms, creating an intimate, adults-only experience for participants. The schedule includes an arrival day on January 16, three retreat days from January 17 to 19, and departure on January 20. Activities will combine real estate investing education, goal setting, investment planning, personal development, relaxation, and time with like-minded entrepreneurs and investors. The retreat package is expected to include four nights of accommodations, meals prepared on-site, transportation from Liberia airport, workshops, beach activities, and a final evening barbecue with live entertainment. Flights and alcohol are not included. Wayne and Gabby announce an initial package price range of $2,175 to $2,450, depending on room arrangements, with a $500 refundable save-your-spot deposit under the conditions explained during the show. A detailed information session is scheduled for Thursday, October 29, 2026, at 5:30 PM Mountain Time. For registration information or questions, contact: info@reimasters.ca Also Discussed in This Episode Why investors often run out of capital after purchasing their first property Why BRRRR requires money before the refinance Using joint venture partners to finance acquisitions How to provide value as a managing partner Why Agreements for Sale accelerated Wayne's portfolio growth Identifying sellers who might benefit from creative financing Structuring ethical, mutually beneficial seller financing arrangements The importance of real estate education and proper contracts Opportunities in Edmonton, Red Deer, and Saskatoon Why market cycles influence where investors should buy The upcoming Agreement for Sale course Details of the January 2027 REI Masters Costa Rica Retreat About the Canadian Real Estate Investing Morning Show Join real estate investing coaches Wayne and Gabby Hillier live every weekday at 7:00 AM Mountain Time. The Canadian Real Estate Investing Morning Show provides free real estate investing education, practical strategies, and real-world insights to investors across Canada. Whether you're buying your first rental property, exploring creative financing, or trying to grow an existing portfolio, Wayne and Gabby share their experience to help you make better investment decisions. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program offers: Weekly live real estate investing coaching every Wednesday evening Access to the Masters Vault educational library A private community of Canadian real estate investors Education covering BRRRR, joint ventures, Agreements for Sale, seller financing, rent to own, financing, and property management Help analyzing rental properties and understanding cash flow Support with investment strategies, financing, and long-term planning Ongoing mentorship, community, and accountability Learn more or book a discovery call: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch Wayne and Gabby live every weekday morning at 7:00 AM Mountain Time. The strategies discussed are educational and involve risks, contractual obligations, and potentially securities regulations. Consult appropriately qualified professionals before entering a joint venture or seller financing transaction.

October 23, 202653 min

Real Estate Tax Talk w/ Steve Tsonev

Real Estate Tax Talk: What Canadian Investors Need to Know With Steve Tsonev Are you paying more tax than you need to on your rental properties? Many Canadian real estate investors spend years learning how to buy properties, negotiate deals, finance acquisitions, and generate cash flow. But understanding the tax implications of those investments is just as important. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier welcome Steve Tsonev, managing partner at Finngo Bookkeeping & Tax, for a conversation about Canadian real estate investing taxes. Steve has more than 14 years of experience in accounting and taxation and specializes in working with real estate investors and business owners. Together, they answer questions from listeners about converting principal residences into rental properties, seller financing, Agreements for Sale, beneficial ownership, trust reporting, family income splitting, travel expenses, and business deductions. They also discuss why working with professionals who understand real estate investing can make an enormous difference in your financial results. Why Real Estate Investors Need Specialized Accountants Wayne begins the episode by explaining why having the right professionals on your team is so important. Real estate investing involves tax situations that are often more complicated than those of a typical salaried employee. Investors may own multiple properties, work with joint venture partners, use creative financing arrangements, refinance investments, operate corporations, or change how properties are used. An accountant who regularly works with real estate investors is more likely to recognize these situations and identify issues before they become costly mistakes. Steve explains that part of his job is recognizing what clients don't know they need to ask. Sometimes the most valuable tax planning opportunities come from a detail that an investor mentions casually during a conversation. Turning Your Principal Residence Into a Rental Property One of the first major topics is what happens when someone moves out of their personal residence and converts it into a rental property. This is a common strategy for Canadians building rental portfolios. An investor might purchase their first home with a relatively small down payment, live in it for several years, and eventually move into another property while retaining the first as a rental. However, Steve explains that changing the property's use can trigger important tax consequences and reporting requirements. Under Canadian tax rules, converting a principal residence into an income-producing property can result in a deemed disposition, subject to applicable elections and exceptions. That means the Canada Revenue Agency may treat the change similarly to a sale for certain tax purposes, even though the property has not actually been sold. Steve explains why investors should speak with their accountant before making the change. Important considerations include: Establishing the property's fair market value when its use changes Understanding the principal residence exemption Reviewing the applicable CRA reporting requirements Determining whether any available tax elections may be appropriate Maintaining documentation for future capital gains calculations Planning for the eventual sale or refinancing of the property Wayne explains that many investors fail to recognize these requirements until years after converting their homes into rentals. Failing to plan appropriately can create complications and potentially increase taxes when the property is eventually sold. Steve's advice is simple: whenever the use of a property changes, speak with your accountant. Seller Financing and Agreements for Sale The next major discussion involves a listener question about seller financing. In an Agreement for Sale transaction, the seller may retain legal title while the buyer acquires beneficial ownership under the terms of the agreement. The seller might also have an existing mortgage that remains in their name. Wayne explains an important distinction. The buyer is not necessarily making payments directly on the seller's existing mortgage. Instead, the buyer makes the agreed seller financing payments, and the seller remains responsible for their underlying mortgage obligations. The listener asks whether the buyer can deduct interest associated with the financing. Steve explains that beneficial ownership is an important consideration in determining who reports the property's income and expenses. Where the buyer is the beneficial owner, the transaction can generally involve the buyer reporting rental income and claiming eligible property expenses, including qualifying financing costs. The exact tax treatment depends on the agreement, the use of borrowed funds, and the facts of the transaction. This leads to a much bigger topic. Beneficial Ownership and Trust Reporting Steve introduces an important tax reporting issue that Canadian real estate investors need to understand. When one person holds legal title to an asset while another person has beneficial ownership, the arrangement may create trust-related reporting considerations. These types of arrangements can appear in Agreements for Sale, bare trust structures, and other real estate ownership situations. Steve discusses the potential application of T3 trust reporting requirements. He explains that Canadian trust reporting rules have undergone changes and that investors need to determine whether their particular ownership arrangements create filing obligations. Not every arrangement is automatically reportable, and the rules and available exemptions must be reviewed. Wayne emphasizes that this topic is significant enough to deserve an entire future episode. He and Steve plan to return for a more detailed discussion about beneficial ownership, bare trusts, and the potential consequences for Canadian real estate investors. Can You Write Off a Real Estate Investing Retreat? Another listener asks whether family travel can be deducted as a business expense when some of the time is spent on financial education. Steve explains that ordinary personal vacation expenses do not become deductible simply because someone spends time learning about money. There must be a legitimate connection to earning business or property income. Potentially relevant activities could include attending a qualifying business conference, participating in investment-related education, or conducting legitimate business activities. Where a trip combines business and personal activities, expenses may need to be reasonably allocated based on their purpose and the applicable tax rules. Wayne and Gabby also ask how this might apply to their proposed REI Masters Costa Rica retreat. Steve explains that they would need to examine the educational program, trip structure, and specific expenses before determining what could qualify. There is no automatic deduction simply because a trip includes a retreat. This is an important consideration for investors attending conferences, educational events, and business-related travel. Can You Split Rental Income With Your Children? Another listener asks whether rental property income could be allocated to children who have little or no other taxable income. The idea is that children may have lower marginal tax rates, potentially reducing the family's overall tax burden. Steve explains that Canadian income attribution and ownership rules place significant restrictions on these types of arrangements. Parents generally cannot simply choose to report their rental income on their children's tax returns. The actual ownership, contributions, relationships, and applicable tax rules matter. Steve also discusses why filing a tax return for a young person who has started working can still be worthwhile even if they do not owe income tax. Potential benefits can include establishing a tax filing history and generating RRSP contribution room through eligible earned income. The discussion also introduces the possibility of a future episode about employing children in a family business and teaching them about income, taxes, savings, and financial responsibility. Home Office Deductions for Real Estate Investors A listener asks whether claiming business-use-of-home expenses is worth the administrative effort when only a small percentage of expenses qualify. Steve explains that the answer depends on the situation. For many business owners, calculating an eligible home office deduction can be relatively straightforward. Relevant expenses may include eligible portions of: Mortgage interest Utilities Property taxes Home insurance Other qualifying home operating expenses The appropriate calculation depends on the type of business, how the space is used, and the applicable rules. Steve explains that if the records are already available, the calculation may take relatively little time. Even a modest deduction can be worth claiming when it is legitimate and properly supported. Vehicle Expenses and Mileage Tracking Steve also discusses why real estate investors should consider tracking vehicle expenses and business-related mileage. For someone with only one rental property and very little business driving, the administrative effort may sometimes outweigh the benefit. However, investors who frequently travel for property-related activities may have larger eligible expenses. Steve shares his own example of reviewing missed mileage records. Although the potential tax benefit for a short period seemed relatively small, the annual total was more meaningful. This reinforces one of the biggest lessons from the episode. Small expenses can add up. And without good bookkeeping systems, investors may overlook deductions they are legally entitled to claim. Why Every Dollar Matters Wayne and Gabby emphasize the importance of understanding what you are entitled to deduct. Taxes are a necessary part of operating a business, but investors should not voluntarily pay more than required simply because they failed to track expenses. Wayne argues that investors should build systems that make tax compliance and documentation easy. Steve agrees that effective recordkeeping, consistent bookkeeping, and appropriate professional guidance can help investors avoid missed expenses and unnecessary problems. The goal is not to find loopholes or avoid legitimate tax obligations. It is to apply the tax rules correctly, maintain the necessary documentation, and structure your finances efficiently. Artificial Intelligence and the Future of Tax Preparation The conversation also touches on how artificial intelligence is changing accounting and tax compliance. Wayne and Steve discuss opportunities for technology to improve bookkeeping, expense tracking, and administrative systems. Steve also raises the importance of accurate reporting as tax authorities gain access to increasingly sophisticated tools for identifying irregularities. The takeaway is that investors should use technology to improve the quality of their recordkeeping while continuing to rely on qualified professionals for tax advice and compliance. New Alberta Agreement for Sale Course Wayne announces that REI Masters is developing a new Agreement for Sale course focused on Alberta real estate investors. With market conditions changing, Wayne believes opportunities for creative seller financing arrangements may be increasing. The course will teach investors how to understand the strategy, identify opportunities, structure transactions, work with sellers, manage the financing arrangement, and plan an appropriate exit. Wayne explains that Agreements for Sale played an important role in building his own portfolio. The course is being developed for investors who want to understand how to purchase properties with little to no money down when sellers are willing and able to provide financing. Additional details will be announced through REI Masters. REI Masters Costa Rica Retreat Wayne and Gabby also share exciting news about a possible REI Masters Costa Rica Retreat in January 2027. Following the success of their recent Edmonton retreat, they are exploring an intimate, multi-day experience combining real estate investing education, financial planning, goal setting, and community building. The proposed retreat would focus on helping participants clarify their goals, identify suitable investment strategies, and create a practical roadmap for taking action. The location, pricing, accommodations, and final schedule are still being developed. Interested investors are encouraged to express their interest in joining the waitlist. Also Discussed in This Episode Why investor-focused accountants can provide additional value Changing a principal residence into a rental property Deemed dispositions and the principal residence exemption Capital gains planning for rental properties Seller financing and Agreement for Sale taxation Beneficial ownership versus legal title Bare trust and T3 reporting considerations Tax treatment of business conferences and educational travel Rental income splitting with family members Filing income tax returns for children Employing children in a family business Business-use-of-home deductions Rental property vehicle expenses and mileage tracking Why every legitimate tax deduction matters Using technology to improve bookkeeping systems The upcoming Agreement for Sale course The proposed REI Masters Costa Rica Retreat About Steve Tsonev Steve Tsonev is a managing partner at Finngo Bookkeeping & Tax, an accounting firm specializing in services for real estate investors and business owners. With more than 14 years of experience in accounting and taxation, Steve works with investors to understand their financial situations, manage their bookkeeping, identify tax planning considerations, and maintain compliance with applicable requirements. Steve is also a real estate investor and understands the challenges involved in operating rental property portfolios. To learn more or book a free consultation: https://finngo.com/rei About the Canadian Real Estate Investing Morning Show Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time. With more than 1,300 episodes, the Canadian Real Estate Investing Morning Show provides free real estate investing education, practical strategies, and real-world lessons from experienced Canadian investors. Bring your questions and join the conversation live. REI Masters Mentorship Program Want to be personally coached by Wayne and Gabby? The REI Masters Mentorship Program provides ongoing coaching, education, community, and practical resources for Canadian real estate investors. Members receive: Weekly live coaching every Wednesday from 7:00 PM to 8:00 PM Mountain Time Access to the Masters Vault educational library A private investor community Education covering BRRRR, seller financing, Agreements for Sale, rent to own, fix and flips, joint ventures, and property management Help with property analysis, financing decisions, and investment strategies Ongoing support and accountability Learn more or book a discovery call: https://www.reimasters.ca Our Sponsors Calvin Realty Investor-focused real estate services for Canadian property investors. https://calvinrealty.ca Finngo Bookkeeping & Tax Specialized tax and bookkeeping services for Canadian real estate investors. https://finngo.com/rei Kirkwood & Brennan Mortgage Group Mortgage financing and portfolio planning for real estate investors. https://kbmortgages.ca keaton@kbmortgages.ca Join the Conversation Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube. This episode is intended for general educational purposes. Canadian tax treatment depends on individual circumstances and the legislation applicable to the relevant taxation year. Consult a qualified accountant or tax professional before implementing a tax strategy.

October 22, 202657 min

Real Estate Investing Wins, Garden Suite Success & Exciting New Opportunities

Real Estate Investing Wins, Garden Suite Success & Exciting New Opportunities After an incredibly challenging week, Wayne and Gabby Hillier are changing the conversation. Today's Canadian Real Estate Investing Morning Show is all about the good things happening in real estate investing, entrepreneurship, and life. While investors often spend most of their time dealing with problems, unexpected expenses, difficult tenants, and changing market conditions, it's easy to forget just how much is actually going right. In today's episode, Wayne and Gabby celebrate recent successes, share inspiring stories from the REI Masters community, discuss the early leasing success of their first completed fourplex garden suite, and explore the possibility of hosting an international real estate investing retreat in Costa Rica. They also talk about why experience makes entrepreneurs more resilient, how investors can identify opportunities in a changing real estate market, and why taking action is so important. Why We Need to Celebrate the Wins After discussing one of their most difficult business days in yesterday's episode, Wayne and Gabby explain why they wanted to shift their focus toward something more positive. Real estate investing comes with challenges. Sometimes things break. Sometimes plans change. Sometimes unexpected expenses or circumstances create additional work. But those problems don't necessarily mean the overall investment is unsuccessful. Wayne points out that investors often spend much more time thinking about the things that go wrong than celebrating everything that goes according to plan. When a tenant pays rent on time, a renovation finishes successfully, or an investment property performs as expected, investors often simply move on to the next task. But those are successes worth recognizing. Instead of waiting for something extraordinary to happen, Wayne encourages investors to appreciate when their planning, research, and hard work produce the results they intended. Gabby Reflects on How Much She's Grown Gabby shares a personal reflection about the difficult year they have experienced. She compares 2026 to 2022, a year she remembers as being particularly challenging and stressful. Despite facing more responsibilities and difficult circumstances today, Gabby feels that she is handling the pressure much better. That leads to an important conversation about personal growth. Wayne explains that the business has become larger and more complex over the last several years. With more properties, more businesses, and more responsibilities, there are naturally more opportunities for unexpected problems. But their ability to manage those challenges has improved dramatically. Experience has helped them develop better systems, stronger coping mechanisms, and greater confidence in their ability to solve problems. The lesson is that becoming more resilient doesn't necessarily mean life becomes easier. Sometimes it means you become better equipped to handle increasingly difficult situations. REI Masters Members Share Their Success Stories One of the highlights of today's episode is hearing about recent accomplishments from members of the REI Masters community. Wayne and Gabby invite listeners to share their wins, regardless of how big or small those accomplishments may seem. The responses include successful refinances, investment property acquisitions, new business ventures, completed real estate transactions, and personal growth. The conversation reinforces the importance of surrounding yourself with people who support your goals and celebrate your accomplishments. Kyla and Fabian's Recent Successes Kyla shares several exciting developments. She and Fabian were recognized by their fellow REI Masters members during the annual retreat for being action takers. Fabian also shared his personal story with the community, creating an important moment of connection. On the investing side, they are refinancing a property with the goal of recovering invested capital while retaining significant equity. They also successfully closed a wholesale transaction on October 15. Wayne and Gabby congratulate them on their progress and discuss why recognition from other investors who are actively pursuing their own goals can be particularly meaningful. Stephanie Takes a Chance on Entrepreneurship Stephanie shares that she made the decision to start a new side hustle this year. Rather than allowing fear to prevent her from taking action, she decided to move forward and try something new. Wayne and Gabby discuss why starting a business can be such a rewarding experience. Wayne explains that one of his favourite parts of entrepreneurship is the startup phase. He enjoys developing an idea, researching the opportunity, figuring out how the business will work, and creating the systems needed to bring it to life. They also discuss how artificial intelligence and modern technology have made researching and developing new business ideas more accessible than ever. Amanda Finds Two Excellent Edmonton Investment Opportunities Another major success story comes from REI Masters member Amanda Dick. After deciding to explore Edmonton as a potential real estate investing market, Amanda quickly identified two promising investment properties. During the previous evening's REI Masters coaching session, Wayne helped her analyze both opportunities. The properties offered different advantages. One was in better overall condition and required less work. The other needed some cosmetic improvements but had features that could make it more attractive to prospective tenants. One of the key differences was the number of bathrooms. One property had one bathroom, while the other had one and a half. Wayne explains why even a small difference in a property's layout can influence rental demand, especially when tenants have plenty of options. The discussion also highlights how investors can use market knowledge, rental demand, property condition, and cash flow analysis to compare opportunities. Amanda was considering making an offer, and Wayne encouraged her to explore whether both opportunities could fit into her investment strategy. Nori Discovers an Off-Market Investment Opportunity Wayne and Gabby also share another success story from their mentorship community. Nori, who had recently travelled to Edmonton for the REI Masters Retreat, was actively looking for investment opportunities through his wholesaling business. While the group was participating in their weekly coaching session, Nori was speaking directly with a property owner about a potential off-market transaction. He contacted Wayne to ask whether they could review the opportunity. After examining the information, they identified the potential to create additional value through relatively modest renovations. The property also appeared to have potential to generate cash flow. Nori was working toward negotiating terms that would make sense for both the buyer and seller. Wayne explains why identifying off-market opportunities and understanding the numbers before making an offer are valuable skills for real estate investors. Our First Fourplex Garden Suite Is Leasing! One of the biggest personal wins Wayne and Gabby share is the early success of their first completed fourplex garden suite in Edmonton. After spending considerable time designing, developing, and constructing the property, the units have finally entered the rental market. And the initial response has been extremely encouraging. Wayne and Gabby explain that every prospective tenant who had attended a viewing at the time of recording had submitted an application. The feedback has been overwhelmingly positive. Pros