Table of Contents - 300 Doors in 3 Years with Dylan Suitor
Dave Debeau [00:00:08] Everyone, this Dave Debeau with another episode of the Property Profits for the State podcast, and today I'm very excited to be talking with a real estate entrepreneur, rock star Dylan Suitor. Dylan. How are you doing today? How's life treating you?
Dylan Suitor [00:00:24] Phenomenal, Dave, really appreciate you having me on and looking forward to busting in and hopefully sharing some insights and inspiring some flooding real estate on the ground.
Dave Debeau [00:00:32] Well, I tell you what, it's pretty inspirational what you've done in a very short period of time. So if you haven't listened to Dylan on any other podcast, if you're not familiar with him, this guy is is taken it by storm or just talk a little bit off camera here and say you're up to around three hundred doors right now in your portfolio and you've done this in about the last two, two and a half years. Is is that the time frame that we're looking at?
Dylan Suitor [00:00:59] You know, a little funny story is our first property was supposed to close October 3rd of twenty eighteen. It didn't, I should say our first partnership property got a couple before then. It didn't because the guy actually passed away. It's good to go through probate, but our first closing officially was October 10th of twenty eighteen and we're about three hundred dollars now in since then. And here we are in mid twenty twenty.
Dave Debeau [00:01:21] That's fantastic. So Dylan, you're not just a real estate entrepreneur, although that seems to be a big part of what you're doing. You're also a realtor as well. You've got your own team of real estate agents. So tell us a little bit about your background and your journey and how the hell did you get going so quickly and scaling up so fast with your real estate investments?
Dylan Suitor [00:01:46] There is me at 15, 20 minutes to burn through this, so I'll do a really high level overview and I'm happy to discuss that further with anyone who's interested. However, I come from a background of my mother and father split up at a young age. My mom was was very street smart, as we'll call it, and went down the mortgage broker path and had a lot of Scotiabank and the mortgage broker. And my dad is very smart, as you call it. So he was very good with studying and just never really applied it in the world. And so I had a bit of both. And I kind of say I took the best from both growing up and I learned more about private mortgages and blenders. And my mom ended up saying, I'm a mortgage broker because she couldn't stand me not going to school anymore. But when I knew my dreams and aspirations were to to grow a larger portfolio than Scotiabank would like. And I knew it wouldn't fit in that little box, that little bubble, I said, you know what, it's time to explore. So I went on my own and committed to education for about three years before I started really going big on real estate investing and learned a ton and connected with the right people. And here we are couple of years later and a few hundred years later.
Dave Debeau [00:02:46] So were you a realtor first or a real estate investor first way, or did they kind of come together at the same time?
Dylan Suitor [00:02:52] I stumbled upon being a real estate investor because buying more than one property, two or three of them and being a landlord sounded like a really cool idea when I was in my teens. So I stumbled across it initially. Spend a few years kind of learning from by mistake, doing trial by fire before I jumped into the education piece. And then once I did the education piece, I got my real estate license to represent myself and then found that I really had a passion for sharing that information with others and kind of helping them create their dreams and make their dreams a reality.
Dave Debeau [00:03:23] All right. So walk us through how the heck in such a short period of time, a couple of years, you started without very many properties and you built up a portfolio of around three hundred doors at this time. And one of the things that you've got daughters, you didn't use any of your own money and you've got no money, joint venture partner. So I'm I'm trying to get my brain around. What the hell that exactly means so much. Walk us through that.
Dylan Suitor [00:03:51] While I'm sure you've heard the analogy of the iceberg. And so the top of the iceberg we're talking about right now is that year and a half, that two years of the success piece of things like actually owning the properties, actually closing on the properties. There's a whole lot under that iceberg that I could go into for hours. But I would say the biggest piece is the the knowledge portion of things, you know, rain. They talk about time, money and knowledge. That knowledge piece is something that is very often forgotten about. And as I just mentioned, I spent three hours. I've been to a number of your courses. I've been interested in sports. I've been to a number of American courses, police, fire, all kinds of different things that I've that I've done to these courses to educate myself. And that's the below the water level. And so when you see that short period of time in that large scale, I just got tired of learning and said it's time to apply. And I thought I found the people I wanted to be in business with. And I got to attribute a lot of my success to one of my largest and my largest business partner, Robbie, and just really taking something that he had been developing for a few years prior and just blowing it up. And so when you ask about, you know, none of our own money partners and going into how we do it, well, I have one property that's a thirty two unit apartment building that we have a money partner on, and he has a third of the building. It's actually my cousin when it comes to the stuff that I have with Robbie, which is two hundred doors of what we have, it's him and I are fifty fifty partners on everything that we own and neither of us have put any of our own capital in. It's all private lenders. And so that was part of the education piece that I did of the under the iceberg, under the water piece where I was looking at it and I kept hearing about. Adventures and adventures, adventures, and I was like, there's got to be another way, like giving 50 percent of something to someone just for them to have money involved in it, not to be any like another mentor and a coach. Not no involvement in that that property. It just didn't seem like the only option. And so I said, well, what if I end up finding a way to pay more short term but have more long term or two? Like I said, a lot instead of one plus one equals two with one plus one equals 11. Like how to Robbie and I both have the same mindset and the same end goal. And we're committed to getting there no matter what it takes. And so that's the piece that has made us that allowed us to scale as quickly as making sure that instead of having a money partner, that maybe their goal is is 10 million in holdings or five million holdings or three properties, and then having to find more and more money partners go down the same learning and growth piece. I find one person that I get to grow with through the whole process, and that's really allowed us to continue to grow at such a large pace.
Dave Debeau [00:06:19] So, all right. So you're not using joint venture partners in the sense of the normal use of that term. You're using hard money lenders or private lenders, is that correct? Yes. So if you don't mind, Dylan, just to kind of, again, flesh this out a little bit. So let's say you're looking at a single family home. What's what's it in the markets that you're focusing on? What's the typical price point on the kind of properties you guys are buying?
Dylan Suitor [00:06:43] I just finished a call before we got on this call. And I'm not going to say the markets because we have enough of our own our own competition in there. But really what we look at is we have a specific price point in the market for our main market, which is Sync Alphans under three hundred thousand. We buy it. Three hundred thousand. We renovate for one hundred thousand five hundred thousand, really high level. So you look at that and say, OK, well, four hundred thousand five hundred thousand eighty percent loan to value. And if I'm going to go and buy for three and a thousand, I'm going to buy with a joint venture partner. That person is going to put all the capital in. What are they going to be lending mortgage and cover the cost or they're going to buy it in cash. They're going to put the three hundred thousand to buy it in. They're also going to put the hundred thousand renovated in. We're going to refinance the four thousand back and they're sitting on a property that they don't have to manage. Don't worry about all their capital back and they get that asset forever. What we said to do is instead of paying two or three or four percent through an island or even a lender, how can we get past the cap of five or seven or 10 or or I have to make a million dollars a year on paper to be able to get to continue to have them lend to me. Or one thing we're seeing now is you don't just need to have a bunch of income, you have to have life insurance and you have to have a stock portfolio because these banks want you to be diversified. And so it's sitting there going, well, what are we possibly going to hit when we get into the 50, the hundred the two hundred to five hundred million dollars in holdings? You can't just have one asset class if you're sticking to an individual bank. But what we're doing is now we pay private lenders instead of paying two, three or four percent, we'll pay seven, eight or nine percent. And then we're paying additional private lenders to lend us that hard money. And that's where it's even higher interest rate, whether it be second mortgage or be a promissory note. And then we we lever these things over what they would typically be worth. But with the idea of the fact that we're buying four, three, four, one hundred in and now it's worth five and the lender gets all their money back with interest. And then once they do, when I heard this when I first got into the education piece, once that lender gets their four hundred thousand dollars back with their interest, they tell you, I don't want it back and I'll find another property because you're my money machine right now. And when you stop buying borrowing from me, my money machine turns off. And so now we are the guys that are building that money machine. So instead of having a joint venture partner that puts their capital in and shares in the upside, but also the downside, if there's a market shift or anything like that, they get hit by the downside of the after of their value. Well, now we all they only get the upside of the guaranteed return. So there's a little more there's a different sense of security for that hard money lender. And knowing I'm going to get eight percent, I'm going to get 10 percent, whatever that may be. And if these guys end up collapsing or something happens, then I get the property right. And there's two different options that they have. But most of I'm going to get the money out of it, whereas these these other lenders that are joint venturing into traditional form of a money partner, if we refinance the property, we're planning on getting five hundred, we'll get four fifty. Then they don't get the four hundred right away. They have to wait longer for that money to come out.
Dave Debeau [00:09:35] All right, so you're using one lender for the purchase of the property, you're using a typically another lender for the renovation of the property. Sounds like you're kind of doing a burty. You're doing a burs, basically what you're doing. Right. So now the first lender, aren't they typically are you getting these properties significantly under market value or are they just basically loaning to you based on the after repair value?
Dylan Suitor [00:10:03] A combination of both. So it depends on I mean, we've we've treant and we most of our lending came from one individual, one individual broker. And since then, we've actually found a few others that love our model and see what we're doing. And instead of doing a first mortgage rate and then a prominent rate, we'll do a blended rate. So they'll actually say, you know what the house you're saying is worth five hundred thousand. It's only three hundred thousand. Now, I'll register the mortgage at five hundred thousand so you can't put someone in second position and that blocks that. And then you draws on completions or on renovation pieces or they'll give us one hundred and twenty percent loan to value. And if we need additional info back to them with other collateral or we'll go back to them. We've already registered. We get an appraisal and it says it's now worth three fifty and they're willing to lend a little bit more. So there's a couple of options on what that would look like. And I think that's the piece I'd like to be creative with, to say what is a win win for everyone? How are we going to get the property long term? How are we going to make money? We're going to get and how is that private lender also going to get the return to their ideally living off of and a lot of these private lenders at their retirement? I had money in my RRSP getting two or three or four percent, but I can self direct it and lend it to you and get eight or nine or 10 and I can retire three years.
Dave Debeau [00:11:11] Right. And how long are they typically what's what's your turnaround time on one of these kind of properties typically. And it sounds like you've been going but
Dylan Suitor [00:11:21] yeah I guess that's that's also part of the under the water piece that we had to learn while doing it trial by fire, because we started getting all these corporations, we started adding all these properties to corporations and our accountant would say, oh, well, you pick the amount of properties you want, but you need to have multiple corporations. And so we ended up going about 20 properties, 15 to 20 properties per quarter. Well, the problem would be that if we start filtering for weeks or six week cosmetic renovations of a duplex that's already duplex and only 30 permits on it for six weeks, just clean it up and then refinance it. But we combine that with a a full just adding a second story on doing underpinning repairing foundation work that's going to take three months for a minor variance to begin with, plus six months of completion. Well, now have a property that was six weeks to completion, probably with nine months to completion. So we've always done one year term and one year loans. But now since we've gone through it a couple of times, we're getting a lot smarter with placement of our corp of where it goes. So I spent a lot of my time on the back end now saying, OK, well, how long is this renovation or it's four to six weeks. Great. And it's going to be an ABC four. Well, this one requires permits. It's an X, Y, Z corp. And so we base the corporations on when the refinance is going to come through now. And so we're actually in the process of opening other 10 corporations to ensure that we only have properties that are like terms. So a property in one city gets a permit is all the same in one corporation.
Dave Debeau [00:12:38] Good problem to have all the other stuff you have to figure out as you go along. Very, very cool. And I appreciate you kind of painting the picture there. Yeah. Know, I'm understanding how you're able to scale up now. Do you guys have like you're at this point with the volume of properties you're talking about? Because it sounds like a huge chunk of your portfolio is single family homes. Correct. You've got some models as
Dylan Suitor [00:13:04] well, but a lot of what we buy in single family homes, but they don't usually end single family homes. And that's one I guess one disagreeing point my business partner and I may have is he's like, well, this is actually better for single family. I don't ever want to single family. So we buy some of them as single family. And if it's a permit process or a financial corp, if it's going to delay it three months and it's going to cost us eight properties waiting to refinance because it's not completed yet, then we will obviously leave them as a single family temporarily. But most of them are two, three and four units. And we have started buying more buildings recently. I mean, that's where a lot of the doors have come from. We don't have three hundred houses, so it's about one hundred properties total and about 330.
Dave Debeau [00:13:41] Cool. Very, very cool. So do you have your own construction and rental teams? Are you still kind of subcontracting that out because it sounds like you're at the stage now where you could pretty much be running your own construction firm as well?
Dylan Suitor [00:13:58] We are. So my real estate as an agent business has a number of investors that we work with, and I've always prioritized investors ahead of myself. So if I'm working with someone, they get first and if they end up letting it go in a conditional period, I'm probably going to buy it. But then that's where I have my own construction company of my own construction partner that does a lot of that, probably all of those projects. And then my business partner for the investments, he has a whole in-house staff. There's about 15 of them now that are all in-house with property management, site managers, architects, bookkeepers, like everyone is in-house. And he actually has an office in Burlington that they're housed out of a large office. They're looking to expand. And very shortly and we do have some in-house contractors that do some of our minor stuff, but when it comes to like a foundation specialist, we're we're playing with that. So as we continue to grow based on the amount of work we have, we're looking at even bringing in an in-house electrician or a plumber. And if we have enough work for those people, which we're getting very close to do anything, then, yes, everything's going to be in-house. And it's just one big machine that drives the whole thing.
Dave Debeau [00:15:00] And what if you don't mind sharing what your you and your partner's goals for the next? I don't know. What's the big picture where you guys, your rock and roll with this? Where where do you want to get it to?
Dylan Suitor [00:15:10] So I was always under the understanding that it was one hundred million and now I'm talking to them and it's now one hundred and fifty million on the air. Which would it be? I thought it was one hundred twenty five more houses and now it's one hundred fifty more houses. So we wants to buy and close one hundred fifty houses from now. So the end of July to the end to the end of twenty twenty and then next year will be two hundred and fifty million and a five year goal will be a billion. And so the goal is to have a billion dollars in real estate holdings. And what I'm really finding a passion in is buildings. I'm loving going to the larger multis right now and spending a ton of my time investing into knowledge and understanding on these multiples and a lot of connections because we're not going to the same model with buildings. But I think it is going to be a lot easier to get to a billion dollars in building, start buying five or 10 or 15 million buildings. And one of our mutual friend, Stefan, he actually challenged me this year to buy one hundred unit building. So that's my biggest goal this year, personally, is to buy one hundred one hundred unit building or bigger. And that means a lot to me right now.
Dave Debeau [00:16:04] That's awesome. That's awesome. Dylan, if people are wanting to find out more about you, what you're up to, perhaps get some help with with finding some properties because you're in your end of this head on and you're also a realtor and you help other investors find properties as well. What's the best way for people to connect with you?
Dylan Suitor [00:16:25] You can reach out through, obviously, my email address so you can reach out to info at Elevation Realty DOT. And I can share that with you. Want to share in the notes. You can reach out to us by phone at nine five five nine to five to zero, or you can reach out to my office at nine or five eight four four seven seven eight eight. And you can find me on social media, Instagram, Facebook. That will be scaling up as well. And I'd love to have a conversation on either wall with wholesale or having market opportunities or sellers looking to to clear out inventory, whether it be buildings or a bunch of properties that had that are underdeveloped or someone looking to to kind of break through to the next level of real estate investing and scale their portfolio, whether it be from three to five or five to fifty. So some
Dave Debeau [00:17:09] very good. Dylan, thank you very much. I appreciate you filling in all the blanks there for us. And congratulations on what you and your partner have accomplished and all the best. I look forward to seeing where this takes you over the next few years as exciting stuff.
Dylan Suitor [00:17:23] Thank you very much, Dave. Really appreciate it, man.
Dave Debeau [00:17:26] All right, everybody, take care and we'll talk to you on the next episode. Bye bye. Well, hey there. Thanks for tuning into the Property Profits podcast. If you like this episode, that's great. Please go ahead and subscribe on iTunes. Give us a good review. That'll be awesome. I appreciate that. And if you're looking to attract investors and raise capital for your deals, that may invite you to get a complimentary copy of my newest book. Right back there is the money partner formula. You got a PDF version at Investor Attraction book, dot com again, investor attraction book, dot com ticker.