Dear Valued Investment Partners:
Thanks for taking the time to visit our site. When making investments, your often investing in the people not necessarily the project. For that you need to understand and have faith in the people executing the plan before you'd invest, so I'd thought I'd share my story with my investor family of how I became a multi-millionaire from real estate investments.
To understand how I got where I am today it would probably be best to explain my work-life story. After Graduating in 2006 from the University of Toronto with Specialist Degree in Economics and Philosophy, I joined as an Summer Analyst for a top named commercial real estate firm, Westbridge Capital in Vancouver, B.C., Like any young grad I was sponge who learned a lot and absorbed a ton of information that is still the foundational basis of my knowledge for the commercial real estate market. Through my hard work and dedication to learning, I later impressed the management of the firm and was offered a full time Job and was later promoted to Associate director. In my role, I had the privilege and opportunity to work alongside some of the industries best and wore various operational hats as needed; serving as an asset manager, commercial financier and as an apprentice residential developer. During my time, I underwrote, created and presented finance packages to lenders for construction and income producing properties that ranged from a few million dollars to $80 MM dollars for lender syndicated high rises development projects. I also had the privilege to manage over 250,000 sq.ft of mixed used assets (industrial offices, artists studios, Multi-family, and a regional mall repositiong. As an asset manger, I built out annual operating budgets for each asset, negotiated commercial leases terms, dealt with tenant issues, reconciled monthly payments, refinanced assets and presented rezoning applications to City council to name a few things. It was a fantastic experience, and in addition I also got to work in real estate development as an apprentice. I attended on behalf of the developers (my boss and his partners) architectural meetings with all the consultants, underwrote and packaged the deal for lenders. It was fantastic experience and as a young lad, I didn't know how good of an experience it was until I left for what appeared to be greener pastures.
Later on, I was approached by Menlo Capital Group, a US Firm looking to to start development operations in Canada, with promises to be cut in on millions of dollars on back end fees, it was lucrative and compelling, so I made the bold choice to leave, but their expansion plans fizzed out post the economic collapse and so did the opportunity earn outsized compensation. There were limited job opportunities at this time, so I took advantage of the downturn and decided to travel to India (Delhi-Chandigarh-Mumbai-Goa-Pondicherry-Chennai), Istanbul, Turkey, London England then San Francisco and Los Angeles. I thought that perhaps I would make a home in Los Angeles, but I missed my family and friends in Toronto so I moved back.
I came back to Toronto with only a handful of connections in the commercial real estate world, so my job prospects were limited. When people I interviewed with saw my young face they didn't believe that I had the work experiences that I had. Thus, I decided to take fate into my own hands and became a real estate agent at ReMax Commercial, and then became a real estate broker. At this point in time, I decided to leverage the secrets of wealth accumulation that I had learned from my previous bosses and clients in Vancouver and buy commercial real estate.
I spent months analyzing investment opportunities on MLS. Then in 2011, I was checking MLS when I came across a 15-unit apartment building that has been just listed with an institutional seller listing at 7.25% cap rate. I crunched the numbers and my excel model spit over 14% return on equity "as is'! I had hit the jackpot, I did a quick google search about about the property, 1KM (walking distance to Queens) and over 100K+ population base with diversified economic base with a government offices and several university spin off businesses. Strong demand generators coupled by limited land supply ( Kingston is surrounded by water on two sides and 401 to the north) and I knew this would be great and safe long term investment! I never had been to Kingston, but not wanting to let this opportunity run away from me. I tabled my offer for slightly less than the ask, and after some back and forth negotiations with CEO of Starlight Investments, (formerly TransGlobe), a multi-billion dollar institutional investors, the deal was mine and 3 months later I was the proud owner of this 15 unit building that I still own today.
Over the years, I had renovated the property to dramatically increase the Net operating income to almost 2x and the multi-family market is trading at around 4% cap today (i.e. 4% cap = value of 25x times net operating income). This current dynamic provides a theoretical yield of over a 10x return on invested capital and a future opportunity to refinance and pull out equity for reinvestment and investment expansion. Kingston is expanding with lots of new condos and this property well located to be further improved to capture higher rents slightly below new construction, thus further adding value to the asset in the years to come.
I also co-founded Clifton Blake with KC when we were agents at ReMax Commercial. When we started, it was a start up and I was employee #1. I resigned later on and before any advisory board was formed and when the owner brought in others to the firm . Once he brought in the current partners, there was a power struggle for who would do what roles in the future. Instead of working in preference of asset management, I was pigeon holed into doing mortgage origination and was arbitrarily denied title or being put on their website until I generated X dollars in revenue. It was these games and unfair treatment that drew my IRE and frustration and led me to eventually leave the firm.
Of course, my story doesn't end with my Kingston property or Clifton Blake. Over the years I've renovated and increased the values of properties in the GTA and sold for a profit as a broker & investor. In addition, I even started my own mortgage brokerage firm, Red Fern Capital Group, thinking I would recruit more people and run a commercial mortgage brokerage, but my passion dwindled with the ultimate realization that despite my experience and knowledge of the Commercial real estate space, I didn't have the pedigree or optics of large firm that could attract financing opportunities for the business in a sustainable long term way.
I've had to re-evaluate, recalibrate, and focus my plan on my strengths as I have a young family with two boys (5 and 10 months) and I've needed to think hard and long about what I'm good at and passionate about and the reality boiled down to a few things. I'm great at investment analytics and operations, decent at marketing and have a passion for real estate development and value added ownership. I want to creating wealth for my family, myself and for my investors for decades to comes. I'll be 40 years old at the beginning of 2022 and looking forward to the next 25 years of my work life.
Since 2010, I've gone from a Net worth of $50,000 to over $3.9M. This isn't all real estate, but the majority of my wealth that has been created has come from this. I know $3.9M isn't a lot of money if you live in Toronto and there are so many people will lots more, but this is my unique story and hopefully my future journey with you (the investor) towards earning $20M in the next 10-15 years and I hope you can be a part of this exciting journey as a very much valued investor in the years to come. Also please note that I will always invest my own money into every deal that we do. Thanks for taking the time to learn about myself and history and I'm always available to chat with my investor family.
Partner | Founder