Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto).pdf

=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===

Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.

The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:

☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?

Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.

To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.

Erwin is “Making Real Estate Investing Great Again”!!

Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/

1. @volitionproperties
www.volitionprop.com
Investing In The US As A Canadian…
And How To Do It RIGHT!!
(feat. Erwin Szeto)
Apr 23, 2024

2. @volitionproperties
www.volitionprop.com
●Support local! Order food and drinks and PAY YOUR BILL!
●Washrooms: Same floor
●Cell phones:Put on silent mode and step out if you need to take a call
●Recordings:This presentation is being recorded and slides will be
available.
●Make sure you’re on our e-mail list to get the recording!
E-mail [email protected] use the QR code
Housekeeping Items

3. @volitionproperties
www.volitionprop.com
Legal Disclaimer
Volition Properties and its members, officers, directors, owners, employees, agents, representatives, suppliers and service providers, provides this presentation for informational purposes only.
This presentation and the information, materials, services, and other content available (“Content”) are subject to the followingterms and by participating today you agree to these terms.
● The Content is for informational purposes only, you should not construe any such information or other material as legal, tax,investment, financial, or other advice. Nothing contained
on within the presentation constitutes a solicitation, recommendation, endorsement, or offer by Volition Properties or any thirdparty service provider on a property, for investment
or otherwise.
● All Content is information of a general nature and does not address the circumstances of any particular individual or entity.Nothing within the presentation constitutes professional
and/or financial advice, nor does any information within the presentation constitute a comprehensive or complete statement ofthe matters discussed or the law relating thereto.
You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content before making any decisions based on such
information or other Content.
● In exchange for participation at this event, you agree not to hold Volition Properties, its affiliates or any third party service provider liable for any possible claim for damages arising
from any decision you make based on information or other Content made available to you.
● There are risks associated with investing in real estate involving risk of loss. Loss of principal is possible. Some high riskinvestments may use leverage, which will accentuate gains &
losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods.
● Past investment performance is not a guarantee or predictor of future investment performance.
OUR EXCLUSIVE REMEDY FOR DISSATISFACTION WITH THE CONTENT OF THE PRESENTATION IS TO STOP YOUR PARTICIPATION. VOLITION PROPERTIES AND ALL ASSOCIATED
MEMBERS ARE NOT LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, UNDER ANY THEORY OF LIABILITY, INCLUDING
WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, USE, DATA, OR LOSS OF OTHER INTANGIBLES. IN PARTICULAR, AND WITHOUT LIMITAT ION, VOLITION PROPERTIES
WILL NOT BE LIABLE FOR DAMAGES OF ANY KIND RESULTING FROM YOUR USE OF OR INABILITY TO USE THE CONTENT OF THIS PRESENTATION

4. @volitionproperties
www.volitionprop.com
Who is Volition? We’re Investor Realtors!
●Financial Modeling-Advanced proformas and modeling
●Financial Planning and Advisory-We help our clients use
real estate as an input towards a larger financial plan
●Construction and development-Zoning, laneway suites,
additional dwelling units, property setbacks, etc.
●Data based decision making-We root the values that
plug into our modeling in real data
●Community-Investors helping investors
●We Come From Experience -We’re all investors ourselves
and have sizeable portfolios across various types of real
estate investments. Learn from our successes and
mistakes!

5. @volitionproperties
www.volitionprop.com
How do you work with Volition?
Client
Guidance
Have a plan
Advisory
Realty InvestCommunity

6. @volitionproperties
www.volitionprop.com
The Volition Team
Toronto’s Leading Real Estate Investment Advisory & Realty Firm
Matthew Lee
Founder &
Managing Partner
Ming Lim
Head of Realty &
Managing Partner
Florence Lee
Senior Advisor and Realtor
Alykhan Jinnah
Realty & Leasing Services
Alcina Sung
Interior Design
Wilson Ching
Realty & Leasing Services
Sally Xu
Administrative Assistant
JC Robas
Transaction Coordinator

7. @volitionproperties
www.volitionprop.com
What are our results?
●Realtor Awards: Chairman Award, President Award, Top Producer Awards 2017, 2018,
2019, 2020, 2021, etc, etc.
●Industry and Media Accolades: Featured on HGTV, REIN, RISE, Property Profits Real
Estate Podcast, Michael Millenear Real Estate Investing Leadership Award nomination, etc,
etc.
●We Practice What We Preach: $32M+ personal holdings in Toronto Real Estate (55+ doors)

8. @volitionproperties
www.volitionprop.com
Exclusive Volition Inner Circle Whatsapp Group

9. @volitionproperties
www.volitionprop.com
Ming’s Market Minute

10. @volitionproperties
www.volitionprop.com
Sales Volume

11. @volitionproperties
www.volitionprop.com
Average Resale Home Price

12. @volitionproperties
www.volitionprop.com
New Listings

13. @volitionproperties
www.volitionprop.com
Sales to New Listings Ratio

14. @volitionproperties
www.volitionprop.com
Sales to New Listings Ratio vs Avg Home Price

15. @volitionproperties
www.volitionprop.com
Volition Market Data

16. @volitionproperties
www.volitionprop.com
Volition Metrics -Downtown municipalities

17. @volitionproperties
www.volitionprop.com
Volition Metrics -Downtown SF Detached

18. @volitionproperties
www.volitionprop.com
Volition Metrics -Condos

19. @volitionproperties
www.volitionprop.com
Volition Metrics -Toronto -Everywhere else

20. @volitionproperties
www.volitionprop.com
Volition Metrics -Uptown SF Detached

21. @volitionproperties
www.volitionprop.com
Inflation Update and Interest Rate
Forecast

22. @volitionproperties
www.volitionprop.com
Where is inflation?
●Inflation is down to 2.7%
●Excluding shelter costs it's now below 1%
What does this mean for interest rates?
●Consensus was 47% rate cut in June to 60% chance
Inflation is down

23. @volitionproperties
www.volitionprop.com
What does this mean for investors
●Market is currently at a lul
●Slow for SFH, extremely slow for condos
●Get in now before the rate cuts come through
●Get ahead of demand “waiting in the sidelines”
●Will the condo market turn around?
Inflation is down

24. @volitionproperties
www.volitionprop.com
New Buyers Programs

25. @volitionproperties
www.volitionprop.com
Two programs for new buyers
1.Personal Finance Roadmap for new buyers
2.Equity Share program for new buyers

26. @volitionproperties
www.volitionprop.com
Market Impact of Cap Gains
Changes

27. @volitionproperties
www.volitionprop.com
●Sales happening at lower prices ahead of cap gain changes
●Flippers
●Investors
We have THREE cash flowing turnkey properties
Market Impact of Cap Gains Changes

28. @volitionproperties
www.volitionprop.com
Investing In The US As A Canadian…
And How To Do It RIGHT!!
(feat. Erwin Szeto)

29. @volitionproperties
www.volitionprop.com
Please welcome: Erwin Szeto!
Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords
in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more
landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in
transacting over $440,000,000 in income properties. Faced with issues like affordability constraints,
tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in
the U.S. Here, there is a significant influx of investments leading to the creation of high-paying
manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where
landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop
U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership
experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin Szeto

30. How Do We Make
Real Estate Investing
Great Again?

31. Remember The Good Old Days
Hamilton 2011:
•Rent: $1,395 plus utilities
•Paid $233,900 in 2011
•Cash flow positive on a single-family house
•This House is now >$800,000

32. My Name is Erwin
►Husband and HYPER OVERPROTECTIVEFather of 2
►Fear Heights & Public Speaking
►President of the Hamilton Basket Brigade
►#81 Business Podcast in the World
►Future Six Figure USD Cash Flow Investor

33. How The
Journey Began
•Did What I thought was right. Graduated Business
School during 911 w/ $30K student debt.
•I wasn’t getting rich let alone saving money
•2005 Invested in real estate to get ahead in life.
•Became Investment Specialist Realtor in 2010
•Quit my job.
•I Started In This Business To Help the Everyday
Investor.

34. 350+ Mom and Pop
Investor Friends
Clients Transactions:
$450,000,000
45+ Self Made
Millionaire Clients
Key Achievements in Ontario

35. Why the Change Suddenly?

37. Then There’s
the New Federal
Budget:

38. It’s Hard for Local Landlords:
•Tenants have all the power in Ontario
•Tenant friendly, Landlord Tenant Board: 9-12
months for a hearing
•Too much effort, risk, capital required to invest
locally.
•Mortgage requirements increasingly restrictive
•Rent Control while housing inflation is rising
•“but my unit was built after 2018…”

40. Easy: New Construction House in Landlord Friendly USA?

41. I like the Location: Infill & Next to Walmart Supercenter

42. The Deal:
•San Antonio Tx
•2,500 sq ft
•Asking $515,000 + discounted
financing
•$206/square foot!!
•Duplex :DDD
•Est. Rent $1,700 x 2 = $3,400
•Gross Rent Yield: 7.9%

43. Where Can I Find This Kind of Deal in Canada?

44. I’ve Always Known Landlord
Friendly, USA Was Better
•Laws favour the landlord, mortgage
qualifying is 10X better, easier to scale
•No rent control, LTB or RTB (BC)
•US Economy is stronger
•Bad tenants evicted in 30-60 days
•No basements, no frozen pipes
•Warmer weather, more affordable
•I’ve finally cracked the code to invest
there. I’ve never been more exited about
real estate

45. “I’d buy up a couple
hundred thousand
single family homes if it
were practical to do so”
Warren Buffet
while on CNBC’s Squawk Box
Even Warren wants USA
Single Family Homes

47. Stocks vs. Real Estate:
C.A.G.R. S&P 500 10.5% > Real
Estate 5.5%
But LEVERAGE
~25% Investment (75%
Mortgage)
5.5% / 25% = 22% before
mortgage paydown and cash
flow

48. Mortgages In the USA
for Non-Residents
•USA Residential Income Property
Mortgages are Commercial Style: Debt
Service Ratio Coverage (DSCR)
•If rent covers: mortgage, taxes, insurance,
condo fees?
•You get a mortgage.
•10X easier to scale in the USA than
Canada.

49. BUT: D.I.Y.
Investing is
Risky and Time
Consuming

50. “Erwin, Have
You Met
Andrew!?”

52. My Requirements for Investment
•100% Equity, 100% Control (How my Clients and I made our millions)
•Substantial pool of large-scale property management with internal
staff and systems
•Economies of scale = better systems, lower costs
•I don’t want anyone to call me: no tenants, no toilets, no service calls
•Boring, low risk, high liquidity
•Cash Flow:
•neutral cash flow short term
•significant positive cash flow long-term
•I need to be happy: no stress, passive, above market returns ☺

53. How to decide where to invest?
The Drivers of Real Estate Prices
1.Economic Growth and Job Market Strength: Cities with strong, diverse economies and job growth tend to
attract more residents, which can drive demand for housing and increase rental yields.
2.Population Growth: Cities experiencing population growth often see increased demand for housing, which
can lead to higher property values and rents.
3.Affordability: Markets where real estate is still relatively affordable may offer higher growth potential as
buyers look for value outside of overheated markets.
4.Rental Market Strength: Cities with high rental demand, often indicated by low vacancy rates and high rent-
to-price ratios, can offer good opportunities for investors looking for income-generating properties.
5.Quality of Life and Amenities: Areas known for excellent quality of life, good schools, amenities, and
infrastructure can attract long-term residents and support steady property value growth.
6.Regulatory Environment:Favorable landlord-tenant laws and ease of doing business can make certain cities
more attractive to real estate investors.
7.Future Development and Infrastructure Projects: Cities investing in infrastructure, public services, and
community amenities can experience property value appreciation as these improvements attract more
residents and businesses.

54. Where is the Smart Money Investing?

55. Atlanta, GA Site Visit w SHARE
Investor Bros
Brent & Sam

56. My Friends At Greybrook Are Going to ATL Too

58. Hyundai/LG:
In Savannah,
Georgia
$7.6B Invest
8,500 Jobs

59. Just Returned From Savannah, GA

60. Checking Out Properties in Savannah

64. $65 Billion Total Investment
6,000 High Paying Jobs
I hear Phoenix is a nice place to visit

65. $61B of $210B US Semiconductor Projects are in Texas
~8,000 High Paying Jobs!! (More of my kind of tenants)

66. San Antonio &
Austin, Texas;
Columbus, OH

67. Ohio: Red Flag

68. Migration Towards Southern Hospitality
South

69. Opening 2024:
Samsung:
2,000
Microchip
Manufacturing
Jobs

71. What About Florida?
No Thank You Insurance/Climate Risk

72. Tracking New ManufacturingCanada
Stelantis $ 2,664,000,000 2,500
EV Battery
Manufacturing
Windsor, ON
Stellantis announced a $3.6 billion CAD investment to
enhance its Windsor and Brampton plants in Ontario,
Canada
Volkswagen $ 5,180,000,000 3,000
EV Battery
Manufacturing
St. Thomas, ON
Total $ 7,844,000,000 $ 5,500

73. Follow the Money:
Historic Levels of Investment

76. Company Investment (USD) Jobs Created Sector Location Notes
GM & LG (Ultium
Cells)
$ 2,600,000,000 1,700
EV Battery
manufacturing
Lansing,
Michigan
Groundbreaking in September 2022, Lansing is the third
battery cell manufacturing facility of the company. A total
investment amounting to $2.6 billion. The facility is
scheduled to begin production in Quarter 4 of 2024 and by
EOY 2025 will employ more than 1,700 people in new high-
tech jobs.
GM & Samsung $ 3,000,000,000 1,700
EV Battery
manufacturing
New Carlisle,
Indiana
The project is GM's fourth joint venture battery cell factory.
It has announced three others with South Korea's LG
Energy Solution. A 900-worker factory near Warren, Ohio,
is starting to build cells, while plants in Spring Hill,
Tennessee, and Lansing, Michigan, are in the works.
GM & LG (Ultium
Cells)
$ 2,300,000,000 1,700
EV Battery
manufacturing
Warren, OH
The first GM Ultium Cells plant to be built and go online,
the facility is responsible for mass producing battery cells
for GM’s electric vehicle lineup
Siemens $ 500,000,000 1,700 Various project
Dallas; Lexington,
NC; California
Opening its second U.S. EV charger plant, estimated to
create about 100 new jobs near Dallas. Total $500 million
investment in U.S. manufacturing aims to support high-
growth markets, including data centers, batteries,
semiconductors, EV charging, and rail transportation
Enel $ 1,000,000,000 1,500
Solar photovoltaic cells
and panels
Inola, OK
Planning to build a solar cell production facility in the
U.S., expected to create about 1,500 new jobs.

77. Company Investment (USD) Jobs Created Sector Location Notes
Novonix $ 1,000,000,000 1,000
Supplier to EV &
batteries
Chatanooga, TNIn talks. Nothing offical
Volkswagen $ 800,000,000 1,000 EV manufacturing Chatanooga, TN
Assembly of the all-electric ID.4 SUV up to 7,000 vehicles
per month by Q4 2022, with further increases planned for
2023. Over 1,000 new production team members will be
hired through 2022, contributing to high demand for both
the ID.4 and Atlas SUV family.
Intel $ 3,500,000,000 700
Semiconductor
manufacturing
Albuquerque, NM
The largest single investment by Intel in New Mexico since
its operations began there in 1980. 700 jobs being created
on top of existing 1,900 employees
Total 224,300,000,000 69,200
Boeing & Qatar
Airways
$ 20,000,000,000 35,000 Aircraft manufacturing
Everett,
Washington
Order is up to 50 777X freighters. Located near Seattle,
housings is not so affordable.

78. Investment & Job Creation:
USA vs. CanadaPopulationInvestment (USD)Jobs Created
USA 333,300,000 224,300,000,000$ 69,200
Canada 38,930,000 7,844,000,000$ 5,500
USA/Canada 8.6 28.6 12.6
For every Canadian job created, the Americans create 1.47 jobs
For every $1 invested in Canada, $3.34 is invested in the USA

80. New REPORT!

81. Sat AM, June 8th

82. @volitionproperties
www.volitionprop.com
Networking break!
See you in 15 mins!

83. @volitionproperties
www.volitionprop.com
Take MASSIVE Action…

84. @volitionproperties
www.volitionprop.com
How Volition Can Help As Advisors?
FREE30-min
Advisory session
with Matt or Ming
Come prepared with:
Capital available to invest
Mortgage qualification
Current real estate portfolio details
We will help you determine:
Where you are at
Where you want to go
Customized plan to get there

85. @volitionproperties
www.volitionprop.com
How Volition Can Help As “Regular” Agents?
●Financial Modeling-How much rent can I get for my basement suite?
●Financial Planning and Advisory-If I sell my condo, will there be enough to
retire?
●Construction and development-If I buy this property can I put a laneway
suite in the future?
●Data based decision making-Am I paying too much for this condo?
●Community-I’ve got racoons!

86. @volitionproperties
www.volitionprop.com
Next Mastermind Meetup:
Summer Social
Date: June/July, 6:00-9:00 pm
Location:Toronto
RSVP: www.meetup.com/Volition
LARGEST REAL ESTATE MEETUP IN TORONTO WITH OVER 4000+ MEMBERS!

87. @volitionproperties
www.volitionprop.com
Your Next Step… Take MASSIVE ACTION
SCAN TO BOOK A FREE 30 -MIN CONSULT WITH VOLITION!

88. @volitionproperties
www.volitionprop.com
End