Dave Debeau [00:00:09] Everyone, Dave Debeau with another episode of the Property Profits Real Estate podcast, they zooming in at the end of his day all the way from beautiful Hamilton, Ontario. They've got Adrian and also Adrian. How are you doing?
Adrian Pannozzo [00:00:23] I'm awesome. Dave, how are you?
Dave Debeau [00:00:24] I'm doing great. So I'm looking at your bio says retired police officer, doing all this cool stuff with real estate investing, focusing on br. Very, very good at doing joint ventures, but I'm looking at your face. You don't seem that old. David, did you did you take early retirement or are you one of those guys? Let's just start early young. What's going on? It's pissing me off to be perfect.
Adrian Pannozzo [00:00:49] Yeah. Dave, I'm forty six years old. I completed twenty one years of policing in Mississauga. I was with Peel Regional Police at the time, so I did do twenty one years. I started investing in real estate at the time at the age of thirty six. So I've been in the game with respect to real estate investing for ten years. I left policing in twenty seventeen. OK, all right. So you're going after twenty one years. So I've been, I've been retired for three years.
Dave Debeau [00:01:20] Nice. Nice, nice. Nice. So OK, so that brings up a really good, a really good topic. So you're working full time at your job. How did you how did you get into real estate investing? Why did you decide you wanted to do that? Because a lot of people think, you know what, cops have got to made because they weren't twenty one years them. They retired. They got a nice cushy pension. What do you need to be getting into real estate for? Right.
Adrian Pannozzo [00:01:45] So ten years ago, our mortgage was up for renewal on our primary residence. And the mortgage broker I was working with at the time basically said, you have all this equity in your home, what are you doing with it? And ten years ago, I didn't know what equity in the home really meant and so on and so forth. So anyways, long story short, fast forward, I'm not really doing much with this equity in my home. What can I do with it? Love. We thought of buying rental properties and investing in real estate and creating wealth, generational wealth, long term wealth and real estate. And I don't really know what that means, but again, I guess my tolerance and my risk level potentially is a little bit different than other people's being a police officer and whatnot. So I'm not sure that's. Let's chat about that a bit more. Long story short, that kind of led me to the wonderful city of Hamilton where I bought my first rental property, so to speak, in downtown Hamilton. And it was really why Hamilton, it was really just centered around the numbers, like the return on investment and cash flow in Hamilton superseded York region where I was living and so on, and obviously Toronto and other market centers. So I guess the cash flow in the outlying Hamilton brought me to that city at the time.
Dave Debeau [00:03:12] So it's quite a jump to go from zero real estate investing to to doing it. Did you get that the mortgage broker kind of hold you by the hand along the way or did you get some teaching or training or anything like that? What did you what did you do?
Adrian Pannozzo [00:03:26] We get in the market analysis on property that I'm not really 2.0 kind of skimming through stuff. And my mortgage broker at the time was also an investor. So he knew the numbers. We did a market analysis on the property as far as rents are quite low. And my was so this is really, really good. So I guess just my personality and I'm not the kind of guy to sit on that fence forever and dove into it, and at the time I didn't really know Hamilton. I really never knew I didn't know the city at all, north, south, east, west. But again, my personality, I was wanting to jump into it and believe in the system. I believe in the numbers and knock on wood. It all worked out. And the number, as you well know, in any investor, the numbers are the numbers and the numbers don't lie. And if you have a good analysis, which I did at the time, it kind of led me there. And I jumped in with both feet. And I'm super grateful that I made that decision obviously 10 years ago, because it really changed my life, essentially.
Dave Debeau [00:04:30] Yeah, for sure. So how many properties were you able to do on your own before you started working with Joint Venture Partners?
Adrian Pannozzo [00:04:37] Five.
Dave Debeau [00:04:38] Well, that's pretty good.
Adrian Pannozzo [00:04:40] Yeah, we we three
Dave Debeau [00:04:42] or four more than most people that do. Yeah.
Adrian Pannozzo [00:04:45] Typical A lender. So a lot of those original deals were with Scotiabank typical lender deals. We were at five myself and my wife at the time. Five properties. Oh.
Dave Debeau [00:04:57] And you focused primarily on on the BR strategy, is that correct? So you're taking a single family home and
Adrian Pannozzo [00:05:05] not at that time. At that time when we got into real estate investing, we were focusing because again, when you're starting out in a new city in a I guess in real estate investing 10 years ago, I didn't have obviously the power team that we have now, so to speak. It was just me and kind of learning as I went. And that was kind of, again, not scared to dove into it. I did it. So we were buying turnkey, we were buying turnkey throw for our tenants and obviously doing all the property management ourself. Single family homes, no duplexes, tried plexus fourplex is the first thing I bought was a try right downtown Hamilton. It was a contractor schlepp. He bought it. He rented it and flipped it. I bought it. And all I had to do was put my hand on Kajiji. But the tenants in their screen, my tenants and having the police background, I was pretty thorough on my background checks and whatnot.
Dave Debeau [00:06:03] Yeah. Got a little unfair advantage there.
Adrian Pannozzo [00:06:05] Probably a little bit for sure, putting good people in the homes and whatnot. So be a little intimidated.
Dave Debeau [00:06:10] Having a Scottsburg would be intimidated, having a coffee as their landlord.
Adrian Pannozzo [00:06:14] I'm sure it was a good screening like. Like first cut, first round draft cut was all of a sudden they're gung ho and then they find out you're a cop, it's like they disappear and then you
Dave Debeau [00:06:27] have this problem with your uniform on the
Adrian Pannozzo [00:06:29] that or that, too. Yeah. So, no, I've worked out we bought a turnkey fully rano triplex. Just had to put our our tents in there and we did that by buying turnkey our first floor and then the light bulb went off and we kind of stumbled on this Byran Al-Rifai. And here we are 10 years later with really, really cornerman down this this strategy and making it work and becoming very fruitful.
Dave Debeau [00:07:02] So how did you work with your your initial foray into working with joint venture partners? Because I know that's kind of the area that I work in with clients. And that's a big a big stumbling block for a lot of people is how do they start bringing other people's money? How did they bring joint venture partners on board? How do they you know, who do they talk to? How do they break the ice? How do they bring all this up? So how did were you nervous about that at the beginning? And how did you get started with Joint Venture?
Adrian Pannozzo [00:07:34] We started marketing ourselves, to be quite honest with you. My business partner, Sandy McKay, opens a podcast, real estate investing podcast, Sandakan. Rob, Rob, break, run the podcast. And I. I got into business with Sandy and he put me on the podcast a number of years ago now. And I guess just I don't know why, but it resonated with people, I guess my background and my story of a police officer, investor, retired police officer, a full time investor, and it resonated with people and they wanted to get into business together. So in twenty seventeen, when the market was on fire back then, things really took off with respect to joint venture partnering. And at the time, we probably had already gone into business with, I would say, at least 10 to 12 other joint ventures. So we started to get a bit of a reputation and a bit of a track record as far as what we did, my story, my background. And it attracted more so than novice investors as far as working with somebody that had that experience. And the rest is great.
Dave Debeau [00:08:49] What do you call a joint venture? What is a joint venture to you? How does it work in a nutshell?
Adrian Pannozzo [00:08:55] So joint venture and my translation would be I'm partnering our company myself is partnering with an investor who is looking to, I guess, leverage our expertize, our systems, our models, our experience, leverage that by bringing capital to the table. And partnering with our company, which, for lack of a better word, I would say now in the industry, we're considered experts within the BER strategy. Now that weighed into the strategy after several. Byron, Al-Rifai, so I would say partnering up with an expert that can teach you and coach you, but also be your business partner and buy properties together.
Dave Debeau [00:09:54] So are they. They're bringing the capital or they're bringing they they're bringing the money for the down payment and the Renaults or just using a couple of people per deal. How does that typically work?
Adrian Pannozzo [00:10:05] It really depends on the deal. But let's just say a typical triplex renovation versus strategy,
Dave Debeau [00:10:12] their dream of the home turning into three or taking three.
Adrian Pannozzo [00:10:15] And typically we're in a duplex turning into three. They're bringing the capital and they're leveraging, I guess, not only their time, their lack of experience and expertize and I guess the power team we have behind us to essentially deliver. I want to say upwards of 95 plus percent ROIC incorporating our strategy with the BR method.
Dave Debeau [00:10:43] OK, so they bring in they bring in the capital for the whole thing, down payment plus Reynolds. Correct. All right. And your partners on the deal. So is it usually like a 50 50 type deal or how do you react next?
Adrian Pannozzo [00:10:57] You're depending on the size of the deal. I mean, we've also gone into a 12 unit, a purpose built apartment buildings. So the splits on that deal could look a little bit differently than a typical triplex, for example. Right. But obviously, two different platforms, commercial as opposed to residential.
Dave Debeau [00:11:16] Yeah. So and not just the initial finding the property, renovating the property, but finding the property and the contract, getting the financing lined up with all the rentals. But then you guys also take care of all the management, I would imagine. So it's kind of a it's a pretty passive investment for your investors, correct?
Adrian Pannozzo [00:11:37] Hands free, hassle free, completely passive. And then again, like I tell most investors, a lot of them say, you know, but I'd like to learn along the way. I'd like to learn along the way, because potentially my second or my third investment, you know, maybe I want to do on my own. Absolutely. You can be a sponge and soak up as much information as you want. That's all our secrets are shared with you along the way for sure.
Dave Debeau [00:12:02] They can go put on a hard hat and hang around and watch. I don't really want to.
Adrian Pannozzo [00:12:06] Absolutely. And on the opposite spectrum, you know, we've partnered with with clients, you know, high profile lawyers, doctors, dentists who really are not interested or even not interested in some good properties. Just, you know what agent? You have the track record. Just bring us the results. I don't need to see the house. I don't need to see anything.
Dave Debeau [00:12:28] I just want to do the check showing up
Adrian Pannozzo [00:12:30] in my house, want to see the chart so we can take it from one extreme to the other. And we've worked with both those different types of clients, wasn't it?
Dave Debeau [00:12:39] And time flies when you're having fun and people want to find out more about you. What should they do?
Adrian Pannozzo [00:12:44] Yeah, so I could be reached by, you know, executive properties. And Rogers Dotcom showed me a quick email or on obviously all social media platforms, Instagram, Facebook, YouTube were very searchable.
Dave Debeau [00:13:00] Awesome. Very good. Thank you very much. And congratulations on a wonderful retirement.
Adrian Pannozzo [00:13:05] Awesome. Thank you so much.
Dave Debeau [00:13:07] All right. Take care. See you later, everybody, on the next episode here. 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 would 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. Or is the money partner formula. You get a PDF version at investor attraction book, dot com again, investor attraction book. Dot com ticker.