00:01.63

wongga

Hello fellow investors. My name is Garrett Wong your host of the investing to win podcast today I have the pleasure of welcoming Daryl Colin Darrel how are you? Yeah no thank you for spending some time with me. Um.

00:04.86

Daryl

Okay. I Do it very well. My friend. Thank you for having me.

00:18.84

wongga

As the title of the podcast indicates I brought you on the podcast today to give your perspective as an actual real estate investor out of province that's choosing to invest into Manitoba. But before we go into that I always like to introduce my guests have them tell us a little about about their background. So what's your story and your background.

00:41.48

Daryl

I am originally from toronto mostly born and raised. Um I have been here. Yeah for all of my life. Um I went to. College for financial planning after having an interest in investing when I was fairly young I think I was about 15 or or 16 I had a part-time job working in a corrugation company making boxes in the summer in between. Um, high school before the september start I had been living at home in saving my money and had ah an interest in investing it somewhere and I went to my local bank. With an interest in investing in mutual funds gics I had a very little knowledge on how these products worked and wanted to speak to a financial advisor and was told that I was too young to be investing and I should just leave my money in. And actual savings account. Um I kind of scratched my head and look for a little bit more knowledge and what would be available for me to invest and I kind of felt I was kind of pushed to the side and left to figure things out for myself and ended up.

02:15.15

Daryl

After finishing high school enrolling in college and taking a financial planning program where I had studied for about 3 years and eventually transition out working in a major bank. As a financial advisor I had been there for about 7 years and my business had slowly morphed from investing into mortgage lending and it came to a point where. Very large portion of my portfolio ended up being mostly boring and mortgage clients and after realizing that I had been um, more or less. Um.

03:08.81

Daryl

Kind of stuck with offering just one product of Suite. Ah sorry more or less just offering only um, one service or product from a major lender and kind of shortchanging my clients by not being able to offer something from other lending institutions. I had slowly decided to leave and start a career in mortgage broker in early 11008 just as the. Subprime market crash was happening in the Us. Um I had been about 1 or 2 years in actual brokering and um.

04:03.89

Daryl

We had to. We had a um slowdown in the the the lending side of things where we had lenders that were starting to pull back on their lending parameters. Um. I had deals that were in process and instructed to be closed for mortgage refinances and the lenders were actually um, canceling guilt Lawyers had been instructed and I was told that. There wasn't any money on a warehouse line of credit to fund the deals and they were only funding new purchases and I had to explain to my clients that you know a very difficult explanation to my clients on how the lenner didn't have funds to close their deals and we had to reposition. Mortgages elsewhere. It was a really challenging time in the market at that time.

05:08.20

Daryl

Sorry my friend you want me to keep going.

05:11.91

wongga

No, no, no I I mean it's ah um, okay, we we can cut that part out So I'll just have my response here. Um.

05:13.34

Daryl

Ah, yeah.

05:20.81

Daryl

Yeah, or did you want me? Do you want me to continue more about my my story like I started this off from right from the start of my financial career. Um, yeah, sure.

05:31.40

wongga

That's absolutely fine like like I said um I mean if you want we can even redo the intro but I mean what you were saying is fine I would say that you're you're kind of pausing a little bit like you're I don't know whether you're reading your your you know like just kind of yeah but like.

05:37.91

Daryl

Yeah, right? Yeah I have some note I have some notes here.

05:48.39

wongga

You want it? organic you want to look at me because we're having a coffee conversation like we did at the daily grind there. Um, ah but no the story in the background is fine like I might even use it but we could just redo it just to have it flow a little bit better. But yeah, just just kind of I Love the story about being a teenager and nobody who listened to you and.

05:51.67

Daryl

Um, right.

05:58.72

Daryl

Yeah, okay.

06:05.28

Daryl

Right? Do want you want to continue with that make it more. Okay, we could do that I wasn't sure.

06:07.18

wongga

Going into college you know transition to mortgage brokering I think it's no, but then you you can basically ah sort of end off with you know and and what it looks like today is I've got a book of clients I work for you know whatever I'm affiliated with and and then I'll I'll counter with a question there.

06:23.59

Daryl

All right? Let's start it to go that to.

06:27.29

wongga

All right? So it's still rolling I just marked down the time tell the team to ah to stop there. Actually what they like me to do is I'm gonna clap 3 times and there will be a spike in the audio and then we'll start again all right.

06:38.73

Daryl

Sounds good.

06:47.52

wongga

Hello investors this is Garrett Wong your host of the investing to win podcast today I have the pleasure of welcoming special guest Daryl Colin Darrel how are you? Well thanks for coming on. Um, for those of you who don't know um I am um.

06:57.82

Daryl

I'm very well my friend thank you for having me.

07:05.17

wongga

Bring on an actual investor I had 1 on ah Matt lansborough a few weeks ago to give us a perspective on why somebody from out of province from the west in Dc would be investing in Manitoba and I brought Daryl on today to give his perspective because he's from Ontario. Um, but what I'd like to always start with is maybe darrell if you could introduce yourself to the audience and maybe give a little bit of background.

07:31.40

Daryl

Absolutely I am born and raised in Toronto Ontario I've been here for the majority of my life. Um, my path to where I am today started many many years ago I was about 15 or 16 um, still in high school and had a summer job working in a corregation company working for about two months out of the summer living at home I had accumulated um, you know.

08:04.98

Daryl

I guess what it would say would be my first big savings and checks and I didn't know where to invest this money. Um I knew that I wanted to put it somewhere. And this money just sat there in ah and a savings account for the majority of the summer and I had um, went to my local bank at the time and had a little bit of knowledge on mutual funds back then.

08:40.21

Daryl

Computers were the internet was just starting to to get active so I was going through prospectuses that I found at the local branch and I had made an appointment in wanting to invest. After having a discussion with one of the banking advisors there I was told that I was more or less too young to invest and I should just keep my money into a savings account and I kind of left the bank a little bit discouraged. Um you know here I am.

09:14.49

Daryl

With a summer of full-time earnings at a part-time job and all I wanted to do was invest my money and I was told to basically leave it in my bank account and I had left the bank kind of scratching my head. Um.

09:31.75

Daryl

What can I do with this money and why was I turned away and it was more or less at that moment that I had decided that I'm going to pay interest or I had ah an interest in investmenting in putting my money to work so to say well fast forward maybe about. Seven or eight years later I had enrolled in a financial planning program at 1 of the local community colleges and after finishing I ended up working at a major bank as a financial advisor ironically enough I ended up being. Financial adviser that had turned me away when I was 15 or 16 years old.

10:12.59

wongga

That's hilarious. Ah.

10:17.57

Daryl

Ah, anyhow, after about a 7 year role as a financial advisor I was dealing with about 600 households and we had a it. And investment requirements or a production requirement of 60% investments and about 40% in retail and and mortgage lending as our targets for the year and what had ended up happening was i. Slowly developed a larger percentage of my portfolio into mortgage spending there was more of the need for mortgage restructuring mortgage lending and my role ended up being more from a financial advisor to a mortgage specialist. And what ended up happening after that is we um I more or less came to an acknowledgement that there was some.

11:29.10

Daryl

I was stuck offering only 1 product that was available through 1 major lender and there were other options available to my clients that I was more or less living on the table for them after a long hard discussion with my manager. I had resigned in started a role as a mortgage agent in early 2007 early 2000 I wrote 11008 and I had left the bank and now working as a full-time mortgage agent for the last. 15 years so my career had been sparked by an interest in learning to invest money and what to do with it.

12:17.80

wongga

Wow, that's you know, hearing that in high school and you know I think young people don't get enough credit I was at ah I was actually in toronto a couple weeks ago for the multifamily investment conference and they made all of these 17 and 18 year olds stand up. And there was there was a handful and I'm just like you know these young young men and women like they are there to learn and I'm here 52 years old I wish I had started that young you know so good on you I just you know I think there's a lot of barriers to young people to to wanting to be equals and to be told just.

12:45.53

Daryl

Right.

12:54.59

wongga

Leave your money in and a savings account. That's ludicrous. Um, but yeah 15 years in mortgage landing. You must have seen just tons of cycles. Um, you will probably have to have you on another time to talk about that. But let's let's talk about your portfolio. Why don't you give us a summary of what it looks like.

12:55.91

Daryl

Right.

13:06.27

Daryl

Um, yeah.

13:13.88

wongga

You know how many units what provinces are you currently investing that type of thing.

13:19.33

Daryl

Yeah, so right now I have a portfolio we have roughly or I have roughly a boat um 5 properties duplex in Windsor Ontario which is Southwestern Ontario we have a townhouse in Welland Niagara region London ontario there is a condominium and I have 2 duplexes in Winnipeg all bought at different times First property was.

13:49.97

wongga

Okay.

13:55.95

Daryl

Ah, purchased in 2013 and we're all way up into 2023 right now.

14:01.43

wongga

So that's interesting because you say you you live in Toronto I know that you know when people talk about the gta and different areas around there but like Niagara is not gta. Um, so even back then like what made you.

14:16.31

Daryl

Um, no.

14:19.71

wongga

Actually I'll back up what made you choose to invest in real estate I mean you're obviously a mortgage financial planner. You went through lots and lots of rsp type training why real estate.

14:30.64

Daryl

I was looking for diversification. Um, you mentioned earlier working as a financial advisor most of my sites were on Investments Mutual Funds Equities stocks bonds In. I was looking for diversification I wasn't fully aware of the need at the time to fully diversify or to have a fully diversify portfolio hard assets such as real estate was something that I was missing in. Was a bit intimidated by the required work that I thought would be needed within real estate buying the property renovating the property if I'm looking to rent it out putting tenants within it all of that while trying to maintain a full time job and career. Seem like a very daughty task to me whereas investing in Mutual funds. Yeah I mean just investing in a mutual fund or with inequities was extremely passive. The management was already in place. Um, there was really nothing to do but sit and wait.

15:25.30

wongga

No go ahead. Sir.

15:41.69

Daryl

And in some cases pray.

15:45.22

wongga

Yeah, praying and investments don't doesn't work too. Well um, no, but I mean so is the duplex and windsor was that your first property. Okay, and how how far of a drive is windsor from I mean where you live in Toronto.

15:52.19

Daryl

Um, it was my first property that.

15:58.77

Daryl

Looking at about a 5 hour drive yeah

16:02.27

wongga

5 hour drive okay so try to get the audience into your head a little bit here because you know living in Winnipeg. We kind of just oh I'm thinking of investing. And to drive 15 minutes I think that's a good neighborhood. You kind of look around what made you choose your very first property 5 hours away

16:24.21

Daryl

In 2008 2009 we had a major disruption in the financial markets as you know in the us in the auto sector sector was greatly affected at that time Windsor Ontario

16:35.23

wongga

Um.

16:41.14

Daryl

Is primarily known for their automotive industry and they were hit really hard at that time property values have plummeted banks and lenders are actually pulling back on their availability of lending at that time. And I developed an interest in distress assets that had the possibility long term to maybe um, you know reestablish itself. So I Saw an opportunity to find property Very cheap.

17:18.20

Daryl

Could be rented at a fair price and I had a long-term view so I ended up spending some time in Windsor Ontario and as difficult as it might have seemed for a lot of people to see I saw all the infrastructure in place for viable businesses to continue running whether it would be within the automotive industry or something else windsor on Terry was very close to the border. I spent some time down there. We were the area and decided that this is where I'm going to purchase my first investment property.

17:56.73

wongga

Wow! So very methodical as most financial planners are you did your homework you went there? Um, so you okay, so walk me through it. You buy this property. What things did you learn about it like was it. Distress did you have to okay I'll edit that out. Okay, so walk me through your first rental property then here like was it distressed what what type of things did you learn from this duplex.

18:32.71

Daryl

Um, yeah I'd say after spending about a month um I would take the train down and I would spend 2 or three days learning the area working with a realtor. Um.

18:48.56

Daryl

Talking to neighbors sitting with locals eating restaurants doing as much research as possible to find out more or less what people were thinking how they were feeling what type of tenets would be in the areas I was looking. And I had been looking at a few duplexes and and and one had come up. Um, the price point was extremely cheap at the time we were looking at about 90000 there were 2 units in there. Both were rented at a fair price. And um I decided that the price point was favorable. A cash flow so in a worst case scenario. All I had to do was more or less get paid while I wait for the market to turn around.

19:47.13

Daryl

Do some possible renovations when there was a tenant turtle. Um, it was a little bit challenging to get mortgage financing at the time. The banks were very hesitant to want lend money.

20:04.68

Daryl

No one could really wonder why I wanted to invest in Windsor um, it was very difficult to get financing. We're looking back at 2013 unemployment rates were very high the autotomos the automotive sector cut a lot of jobs. Um. So it was definitely challenging your financing but I ended up finding a credit union that was comfortable to do so and I ended up purchasing the property I assumed the existing tenants it cash flowed right? from the beginning it was under market rent. But it was my first property so I didn't want to push it too much I wanted to acquire the asset. It worked cash flow and I was happy to let it run well, we've kind of waited to see it was going on in the market.

20:58.77

wongga

Okay, and like I know things have recovered although I don't know windsor at all what does Windsor look like today.

21:09.13

Daryl

There's been a tremendous recovery I'd say we were probably looking at 2013 an acquisition price was about $90000 I'd say we're probably looking at an praise value today of about 825000

21:24.81

wongga

Um, wow it's 10 years that's that's great yep

21:26.42

Daryl

So over for over time year period. We've had a very big uptick in immigration investment within Windsor I believe we are now I think we're close to finalizing I want to speak too soon but they have one of the if not the. Biggest um lithium or electric battery plant that is actually going into the city so much has changed for the better. Um, and banks are and lenders are a little bit more willing to lend in that area now. So to say.

22:02.30

wongga

So and what was you said Niagara and then London wasn't the Townhouse Niagara the second one that you you purchased so I mean my natural question I mean my goodness you're taking the train every weekend you're doing in-person research. Um.

22:07.78

Daryl

Yes, it was yes.

22:16.95

Daryl

Um, right.

22:19.71

wongga

The internet was a thing back then and that's what most people do they go to the internet and here's darrell taking a train every weekend and and talking to local shops like I love it. Um, so my natural question is your second property. Why not invest in Windsor again. Why would you go south.

22:34.40

Daryl

Yeah again I come from a financial planning background and I I just diversification I didn't want to put everything within one area I mean it worked well in hindsight I probably could have doubled up in Windsor and to. Maybe that's something very similar but why put all the eggs in one basket I'm already 5 hours away from one property I'm able to make it work I could be 3 hours or 2 hours closer in a invest in I wouldn't say a similar market but I had the same idea of of investing with. But the for the purchase. Um I wanted to find something that was undervalued a little bit distressed in a very good area close to transit stops and I wasn't shy at this point. To invest further out to where I'm living within toron well in Ontario which is in the niagara region is is not as far as as well. And um, so is very comfortable. Um, that was the the second purchase and um. That as well run smoothly and there has definitely been appreciation in the market since that original purchase as well.

24:01.70

wongga

Yeah, no doubt no doubt. Um, yeah I just I'm kind of astounded at the amount of research and when people say diversification. It's kind of like well I'll buy a 3 bedroom this time and I'll buy a 4 bedroom next time you literally went to a completely different market as a safeguard I mean.

24:16.47

Daryl

Um, yeah.

24:19.30

wongga

You know what foresight and obviously nobody has a crystal ball. But um, you know the appreciation in Windsor I would say at credit to you that you did your homework and you predicted well um, you know at what point did you start thinking about investing in other provinces.

24:37.30

Daryl

Um, I'd say we were in about 20017 um the brokerage firm that I work with my head broker had a relationship and was associated with.

24:55.79

Daryl

Ahead of ah a mick a mortgage investment corporation in Winnipeg Manitoba um again I was looking for diversification within my investments I wanted to stick within real estate and I was relatively new to mix at the time. It had invested money within the mick in over a 2 year period I was seeing returns coming back at Eight Nine nine and a half percent year over year which are fairly decent returns and it was consistent I became a little bit curious to. What types of property. This mick was invested in was introduced to the gentleman that actually is heading the mick and he started explaining the winnipeg market to me and the more he explained. The more interested I became and the more I looked into it the more I realized that this is the type of market that I would be very interested in it seemed I want to say this in ah in a good way, but it seemed very boring. There was no.

26:11.91

Daryl

No hydrationcing. No hydrations of price. There was no fluctuations. It was much different than Toronto and and the surrounding areas. It was just flat consistent growth year over year I knew what to expect after looking at the numbers I'm the type of person that just likes to almost set it and forget it and I was very comfortable because I had. Ah, very good understanding of what to expect from the market and in in woodpeg from what was being explained to me and what I had saw.

26:50.21

wongga

Yeah I always tell out of province investors when they call I mean because usually you know property managers are one of the first people to get the phone call when somebody's wanting to break into a market and I always say it's kind of the little engine that could it just keeps chugging along you. You're right? You don't have the spikes. But it's consistent flat but slightly increasing growth like year after year after year after year. Yeah, very consistent. Um, okay, so you're now interested in the Winnipeg market. Um. You taken the train here every weekend to do research what happened after that.

27:30.67

Daryl

Um, after doing my own research I ended up um I was introduced to a realtor and my primary focus at the time was looking at. Ah, long-term cash flowing investment property and after some research after some back and forth in conversation with the realtor I flew down to Winnipeg to go look at these properties. I'd say we probably had about 10 or 12 on the list that were of interest to me and after looking at a few of them. The retor is you know what? Why didn't you buy and renovate one. Um, you know we we kind of looked at some of the numbers and some of the properties that we were looking at. Um. They were a little bit dated. You know that's significant renovations mostly strategic but enough where it would require a renovation budget and started looking at the numbers and the returns and I'm like you know this looks like it. It could work like let's let's take a look at this and you know. I managed to dive into it further. Um, so we ended up purchasing the condo we were in the tuxedo court area within Winnipeg.

28:57.38

Daryl

And the realtor had introduced me to a contractor. We sat down and we had lunch. He explained what his history was keep in mind that this would be my first time in participating in a. Flipping strategy um I'm in a new province. This is my first project I've only met this reallator once was introduced to the contract in the same visit or sort of the contractor.

29:33.93

Daryl

Found a property of interest we penciled in the numbers and I was interested right away we ended up purchaing the property renovations were on route in I'd say the whole process we were looking at is about four and a half People five months from cerc to completion to a final sale and it was a it was a it was a successful outcome. Um, not only from a profit standpoint but from a learning standpoint as well.

30:12.73

wongga

Wow, you can see ah I'm I'm writing down tons of notes here. But again I am shaking my head a little bit I have to admit, um and I'm thinking you know most people research an area. They meet the Realtor. So um, who was on track following you there? um because you know your power team and and then you decide to flip a property from out of province with a contractor that you've only met once and it was successful. I mean my audience.

30:38.14

Daryl

Um, yes, yes, yes.

30:44.24

wongga

Ah, is probably shaking our collective heads and good on you because it could have easily gone sideways and you would have run away from anatoba with your tail between your legs. Um, that's great I wanted to ask because I think the path that you just said I mean a realtor.

30:52.77

Daryl

Yeah.

31:00.94

wongga

And then contractor I mean that's really how we daisy chain these things when you're trying to get into a new market. Um, how did you find the realtor was it an internet search or was it a warm referral.

31:09.14

Daryl

The realtor was referred to me from the the head of the the mick that I had been investing in so in my conversation with with him I was you know it sparked an interest in investing in real estate directly myself and.

31:14.85

wongga

Okay, okay.

31:27.96

Daryl

I said look like I'm I'm new like I don't know anyone. You're the only person I've spoken to I have not met anyone. Um, so it came with a bit of trust based on the relationship that um, you know this gentleman had with the broker that I work with in Toronto and he had set me up with a realtor. That he knew very well and after coming down to Winnipeg and spending some time with him I felt very comfortable with the whole process and everyone that I was introduced to it. It took a bit of trust of course you know I'm a flight away so it's not like if something's. Going wrong and unable to get there relatively quickly. It was a hands-on learning process that involved a lot of trust you know for someone is somewhat of a conservative investor. It might seem a little bit high risk. But um I was comfortable with the decision. And it was a thought out process I was part of the decisions all the way through extremely happy with the outcome. It was actually a good overall experience.

32:38.84

wongga

No, that's amazing. Um, and I know in the pre-show we discussed that you have a couple properties in Winnipeg now as buy and holds. Um, obviously you didn't you know, go out to a different province for diversification you you're continuing to grow your portfolio here. Um, why don't you tell the audience about that decision and um and what those those plans looked like at the time in your in your mindset.

33:05.87

Daryl

Yeah I was unsure if I wanted to continue in the um I guess sort of say flipping strategy the timing of you know the the 3 are what the 3 years that I had started investing within Winnipeg. Um I had long-term cash cash flow um requirements which was part of my business strategy and I wasn't 100 % sure that I was wanting to lean towards more more than one than the other. Um, but after looking at price points looking at you know the metrics in terms of cap rates in Winnipeg versus Toronto um, investing for long-term cash flow um became a primary focus for myself. We're looking at cap rates in Toronto and a condominium that are going to be anywhere from 2 to two and a half percent whereas a house is going to be you know 3 to three and a half percent it's very difficult to make or have the the numbers work for you. Whereas in Winnipeg we were looking at a little bit more of a favorable price point cap rates war five six percent in some cases a very stable market. Um, it was a little bit more predictable and the margin for error was a little bit more forgiving in.

34:36.64

Daryl

Winnipeg than it would be within Toronto or a higher priced area. Um, so I became somewhat committed to wanting to continue within Winnipeg it fits within my business model. It fits within my long term goals and um.

34:54.55

Daryl

I like the in a good way I like the predictability of of of Winnipeg. Yeah boring is good.

34:58.88

wongga

Of the boring market. Oh we we are experiencing thirty five degree heat right now that's probably 1 of the good things that you can say about the winnipix summers here.

35:09.51

Daryl

I have not had a chance to be there in the summer months which I'm a little bit ashamed of as I heard is very nice I've only been there in the winter months and it is definitely cold. Definitely cold.

35:23.20

wongga

Ah, it is it is um, let's talk about challenges. Obviously you've invested in Winnipeg now what challenges have you had um you know, looking for things I don't know financing like any. Insurance any any other challenges that you've you've had in this market versus your home province.

35:43.71

Daryl

Um, you know I think I would say it's a challenge but um, a primary focus is is making sure that you have a team in place assembling a team out of province. Especially for the first time. Um, it. It. It takes you know takes some patience and it takes some trust because you're not hands on you like I said you're you're nowhere near close to do a face-to-face meeting. Um some people if you don't even meet or I haven't met.

36:19.85

Daryl

And you know the biggest challenge is is just having the trust that people are doing what they've said they're going to do um and um, stay committed to the outcome.

36:37.20

Daryl

There was some challenges with interprovincial financing but as a mortgage agent I was able to partner myself with some agents within Manitoba that were able to help out that understood the market a little bit more um I kind of just dealt with that as a king. Wasn't um, anything you know, very overwhelming. It just took some patience to make sure that all the chips fill in the place so to say and we found ourselves across the finish line.

37:16.60

wongga

Yeah wow. Um I think it's incredibly important. You know I I have many guests on and and they just keep talking about those keywords trust relationships power team. Um, and yeah, you're you're following the same path like 1 trusted referral leads to another which leads to another obviously nothing's guaranteed. But yeah I find that that amazing. Um.

37:41.55

Daryl

Yeah.

37:43.60

wongga

So in terms of ah managing the portfolio here and you know obviously in Ontario are you managing everything yourself.

37:52.90

Daryl

No I don't manage any of my properties. Um, not one of them. It's um, you know I look at it all and it's just number one. We do have the distance issue.

37:53.51

wongga

Ok.

38:09.90

Daryl

So even if I was capable and wanting to manage one of my properties. It would be extremely challenging just due to the distance but I have professional managers on all of my properties. Um I did um.

38:20.57

wongga

And you decided that early on.

38:28.70

Daryl

You know it's rather embarrassing my father is an Electrician by trade very hands on whereas I am not I'm very challenged when it comes to you know I give you a little story. We. We my father. My father and I tried to Well we rewired my house and I decided that this would be a very good bonding moment and help him in the process and it didn't work out so well. My father saw me with a screwdriver in my hand and he just shook his head and more or less told me don't worry it skips a generation. Stick with the calculator and I'm not I'm not a hands-on person so fixing anything you know as these toilets no plumbing Just it's not my forte. Um.

39:08.59

wongga

Oh man.

39:25.26

Daryl

Running a full-time job in a business and trying to manage a property is it's next to impossible so I have professional managers in place that they deal with everything. Um I speak with the managers I know what my properties are doing I know what's happening I know the challenges that we have I know the positive things that are are moving. Along with the property I have ah a very good pulse at what's happening but all of my tenants could show up on my front door today and they would not know who I am and I would not know who they are um, it's been a very big part of my business strategy to have professional management in place.

40:04.60

Daryl

I've seen ever so quickly. How a property can deteriorate without the property management. The proper management of place.

40:12.35

wongga

Yeah I'm um I'm writing notes here because that's the exact same thing and strategy that my other guest uses I mean he was. He's self-managing certain ones but his success in so-called managing the managers I'm sure I'm sure you've heard that term.

40:22.34

Daryl

Okay.

40:28.27

Daryl

Yes.

40:29.95

wongga

Is communication and frequent check-ins and just knowing good and bad and just getting that cadence down and yeah I think I'm seeing a lot of parallels that are already coming out of these 2 episodes. So I think that's great. Um, so.

40:43.25

Daryl

Right? yes.

40:48.69

wongga

I Got the impression that you're doing this all on your own. But I'll ask Anyways, do you use Jv Partners and if so is that part of your strategy investments in other provinces or even in your home province.

41:01.41

Daryl

I have in the past on a few of my my projects but have elected to move away from that that business model. Um. At this point in my life in my career I am looking to reallocate Capital long-term I'm less interested in sharing so to say profits at this point. Um, it's I have utilizes private financing. In some cases where there's been. You know a temporary renovation requirement or something that was strategically done to the property to bring it up to its highest and best best use and refinance back at a a major bank or a lender. But um, the partners that have had so to say has been more Transactional. It's not necessarily a relationship I have used them for private financing or private funding. But it's it's nothing long term I'm looking to reposition long term and I'm looking to do most of what I'm doing at this point in my career. On my whole so to say.

42:12.40

wongga

And that's an interesting perspective because my last 2 guests actually were talking about the you know joint ventures agreements co-ownerships on larger apartment blocks and. You know my wife and I are struggling with this too because you know you can take on a joint venture on a smaller duplex or a house and there's safety in numbers. But then like you said now you're splitting up equity in a piece of the pie. So I think it's a very strategic decision to try to.

42:33.31

Daryl

Ah.

42:48.27

wongga

Grow faster. Um I know many investors who you know they've expanded to dozens if not hundreds of units using joint ventures. But yes, there's There's a complexity to that. There's complexity and exits. There's complexity and refinancing repositioning and then then all the different relationships you know.

43:04.79

Daryl

Um, is it.

43:07.68

wongga

Multiply that and at scale it's a lot a lot of things or choosing to be you know grow a little bit slower but then you know you've got full equity. So yeah I'm struggling with that one as well. So it's interesting that you're choosing to go that route.

43:18.28

Daryl

Yeah I mean I think Partners would make more sense on on larger projects. But for what I'm doing you know, kind of on the the lower tier end and duplexes and triplexes I'm I'm.

43:30.59

wongga

Um.

43:38.60

Daryl

Focusing on doing that myself. But I see how this would be more of an interest if you're looking to scale or I'm looking to which is actually of interest moving forward but larger projects that are going to. You know require a larger commitment of capital whether it be just for accusation or renovations. But for what I'm doing at this point it it makes more sense for me to if I have to in some cases stretch myself to try to make it work on my own. Um, but I do see the need. Absolutely for for larger projects where a partner would make would make sense and I wouldn't be hesitant to bring on a partner because I've slowly established a track record of my knowledge within the province of let itpe at this point. I'm going to have ah a better understanding won how things function versus someone that's never invested in the province. Um, and there are a lot of people right now that are looking to invest outside of Ontario for the very reasons that I'm looking to so I would bring a competitive advantage to someone that would be interested.

44:53.43

Daryl

I do have that track record so to say that shows you know like I have an idea of what's going on within Winnipeg into you know I have ah so some properties to show for it and.

45:11.90

Daryl

Bringing on an investor would be a little bit more easier for me because I'm I'm already planted here so to say within Winnipeg.

45:20.80

wongga

Well track record is everything um I know myself I being in the property-mansioned business for 25 years I have a lot of larger deals that cross my desk. And now that I'm choosing to go back into the investment now that the property management company is kind of running on its own with my ah management team. Yeah I mean putting together these bigger deals. You know I'll have a larger apartment block that crosses my desk and I can bring 3 or 4 want to say like-minded people because I think it's important you don't want somebody just with money you have to be able to work with everybody even if they're passive and then yeah, um, lyft renovate lift a distressed asset. You know we're very good as a management company getting things off rent control in Manitoba that can be a challenge.

45:57.89

Daryl

Um, right.

46:09.37

wongga

And then refying and everybody gets most of their money back and now you have a cash flowing asset. But I think that works really really well on larger assets I agree with you like the smaller ones. It's probably not necessary unless you're either trying to.

46:12.43

Daryl

Right.

46:19.73

Daryl

Um.

46:23.75

wongga

You know, get somebody introduced into the business for a larger purpose or things like that for sure.

46:26.46

Daryl

Um, right? Yeah, very much agree. Very much agree. Um.

46:31.88

wongga

So I was going to ask are you continuing to invest in Winnipeg and if so what's focusing your efforts these days.

46:41.31

Daryl

Yeah, funny enough I think I'm um, definitely continued to to look at opportunities I would like to eventually start getting into some of the smaller apartment blocks. Um.

46:56.69

Daryl

I still like what I see I still like the numbers I still like what's happening everything from investment within within Winnipeg immigration numbers. Um I I see a lot of need for um.

47:15.24

Daryl

The housing stock seems to be fairly old with you winnipeg I'll drive down a street and I'll see a lot of old time. Let's say warhouses then we'll see 2 or 3 brand new homes that have been built with them on that Street. So It looks like there is still a need for. Some improvement in in the housing stock which is of of interest to me. Um I will continue to look for opportunities. Um, but long term I would definitely like to get into some of the the larger units or the. The apartment block So to say I like the idea of having um more income spread across a larger number of units the economies of scale are much more favorable. Um it. Ah. Long term fits within my business model and retirement strategy so to say so I will I will definitely continue to to to look within what I think for for Opportunities. Absolutely.

48:22.67

wongga

Yeah, no, that's amazing. Your structured approach to investing right from when you were a teenager in high school very methodical I applaud you on that because I can tell you like I admit I don't have that kind of focus I'm kind of Adhd all over the place.

48:40.75

Daryl

Okay.

48:41.98

wongga

Um, and I can I can use a page from that book. So ah, so thank you for that? Um, and I'm looking at the clock here running on the podcast and I can't believe we've been here for almost 45 minutes so I think we'll wrap it up but I ask every guest. Same question because I love to hear this? Um, so I'm gonna you know hear what you have to say so this is the investing to win podcast. How do you define success and what does winning look like for you.

49:00.90

Daryl

Um, check.

49:07.95

Daryl

Um, does it.

49:13.70

Daryl

Ah, this great question. Ah freedom I think winning is being financially independent and having a healthy and enjoyable life with with family and friends. Um.

49:29.90

Daryl

Um, short term and long term. Um, you need to have both sides of the coin I don't think that. Um yeah, being financially independent I would say is. The biggest win So I'll just say it allows you to do more. It allows you to spend time with friends and family and concentrate on on other areas in your life as well.

50:01.65

wongga

Yeah, very well put I resonate with that very much as well. So great. Great! Great answer. Well darrell. Um I'd like to thank you for hanging out with me for the last hour. Um, and I wish you best of luck. No absolutely anytime we'll have to get you on to. Ah.

50:10.26

Daryl

Absolute pleasure.

50:17.29

wongga

Speak about more about mortgages. We'll put to your contact info in the show notes. So people can get in touch with you if they're interested and yeah, good luck in your journey and and keep doing what you're doing. You're an inspiration to our to our audience all right take care.

50:28.60

Daryl

Thank you My friend and thank you again for having me Okay, but way.