My Background and how I got into Real Estate Investing

Vancouver, Canada: I studied Civil Engineering at UBC and also obtained a Masters degree in Engineering.  I specialized in construction and project management.   I only worked for 2 years as an engineer and do not have a P.Eng.  After working as an engineer, i take a pay cut to work in the family business (food production) and later start my own business (corrugated box manufacturing.. then later just box importing and distribution.)

I started investing in Real Estate 1997-1998.  I purchased my first home shortly after getting married.  It was a split level and we lived upstairs. I did not know it at the time, but it was a very good start.  At the time, I had to sell some stocks and pull out the maximum allowed from my RRSP and purchased a home at the upper limit of what was allowed under the "Fisrt Time Home Buyers Plan" The home was purchased at $270,000.  For the next 5 years I did not feel so great because the internet bubble was forming and I had sold $10,000 of internet stock to purchase my home.  

The home was 800sqf up and 750sqf down and had separate entrances.  This was absolutely key and the best time to get my wife to accept living with tenants.  Later on, I personally believe that mothers with young children become neurotic and really do not want to live next to other people.  

Please do not take neurotic as a negative thing.  I believe it is a natural thing for mothers of young children to become hyper sensitive and protective of their children who cannot protect themselves... so if they are not used to living with close neighbors, it is one more thing to overcome. 

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Jump ahead another 6 years and I purchase my second home.  I actually get a loan from my Father/Mother and move into a home across the street from them. Before we move, we have 2 young children and the baby is sleeping in the Kitchen. We are all living in the 800sqf so it is the right time to move.   All that savings early on, living below our means is a HUGE help.  We called it a mortgage helper then,  now you call it a house hack. 

We keep the first house and now have two tenants (up and down in our original home) 

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Skip ahead another 5 years and it is now 2009 and I purchase a 7200 sqf warehouse and office space in two Strata units.  I separate the 1200 feet of office space and rent it out.  I have to really stretch to make this purchase but I make a really good deal when buying the property.  I move my own business into the warehouse and the display room, a small 400 sqf area becomes my office.   I was previously renting warehouse space and bringing in containers of corrugated boxes from China.  The Canadian dollar at that time was close to par so it was easier to buy/import/stock/sell boxes that it was to buy corrugated sheets and manufacture boxes on my equipment.  The next year, I read in a RE report a listing of all commercial RE purchased in my area and my listing was purchased for the lowest $/PSF of all the listings. $97/psf compared to an average of about $$130-150/psf for all other sales/purchases.  The current rate is over $200/psf for warehouse space in that suburb of Vancouver.

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2010 the fallout from the great recession is still going on and over about 18 moths 2010-2011 I purchase 6 SFH in Detroit Michigan.  I am following the Detroit news every day and Detroit is near bankrupt and the Mayor is going to Jail for collecting in his Pay to play city.   The homes I buy are supposed to be turn key but they take a ton of work just to get to keep in working order and rented.   I deal with several evictions and learn about professional squatters and all sorts of things the normal investor would not ever have to deal with.   Things are sometimes so desperate, homes get broken into and the copper pipe and heating systems are cut out for resale.  Slowly over time we go from around 66% occupancy to a normal 90%.  These homes are purchased for cash for around $35-40k each and the Canadian dollar is close to par with the USD.

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Around 2014 the Canadian Dollar starts to drop enough so that It is not profitable to keep importing boxes.  I decide to sell the business /equipment/sales list to a competitor that I had been supplying boxes and doing subcontracted work for for many years.  I keep the warehouse and rent it out.  

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At this time I am 48, and I actually retire.  My plan is to purchase an empty lot and build my retirement home.    While looking at RE, I come across a perfect home that is in almost the exact layout that I have planned to build.   It is a brand new home so there is very little to do.  I actually take the next 3 years and do many things that I have never tried before.   I take yoga classes, ice skating classes, guitar lessons, do volunteer work; I am asked to become a council member of my church.  

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2015 I invest in my first syndication.   I am not in control of this property, but I will leave the details of that for another post.