Civics Teacher Investing in Real Estate & Stock Options W/ David Rahilly

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Podcast Transcription

Erwin Szeto [00:00:07] Greetings, everyone. Welcome to another episode of The Truth About Real Estate Investing Show. My name is Erwin Szeto and a Trust. Everyone had a great weekend in the podcasting world. It’s not ideal to drop a new podcast episode on a holiday Monday like we did with our interview of original gangster O.G. crypto expert Dmitri Buterin last week. But the feedback has been great. Thank you for everyone who still managed to tune in on a holiday. One of you 17 listeners is actually in management at Google. They are really bright and I recall some feedback on Sun on Monday on holiday Monday and. Is. Overwhelmingly positive and kind. Words are always welcome as the world is getting back to normal. Terry The kids and I have been taking advantage. We all enjoy being active and learning new things, so we spent quite a bit of time skiing, ice skating, both indoors and out and in the pool of our local club. The pool especially awesome as the pool is inside a glass enclosure. It’s like a fancy greenhouse. The roof even retracts in the summer. It’s heated and when the sun is out, actually feels like summer inside the inside the pool enclosure. Yesterday was so hot, Trish had to leave. I guess she didn’t. She forgot. I suppose so. She had to actually leave the pool area. And there was no way I wasn’t doing the pool because I needed to cool off. I’m so grateful for these experiences that we can share with our kids and honestly, they’re only available because we’ve put in the work to achieve a certain level of comfort in life. But while the kids are young and living at home, we’ll be making the best of these winters. But one day I’ll you know; I want to start spending some time somewhere warmer in the winters like Costa Rica. During these winters, Air Florida’s great. But also I’ve heard some friends say that it’s still too cool and unpredictable in the winter in Florida, so going even further south may be advisable. Personally, I think we will rent. We’re not going to buy anything, especially with lending being so challenging and outside of Canada for teens. And we’ll work while on vacation. I enjoy working at least part time a couple times a week, even while on vacation. And we’ll continue to invest in real estate, where it’s easy for us with our rules are to be within one hour drive from home or my team has boots on the ground because we’re simple that way. And to be honest, it’s worked out very, very well from a market update perspective. I’ll start with a bit higher level like macro and then work down to a little bit more micro. It seems pretty much all but certain the Bank of Canada will raise interest rates point to 5% on March 2nd, even though we have a war having just begun in the Ukraine by Russia, which is incredibly sad. I’m a pacifist for anyone who knows me, and I believe in peace. So it’s really, really sad news. Hopefully things don’t escalate more beyond that, including further escalation of war with more countries. Hopefully, China doesn’t take this opportunity to invade Taiwan. Oil prices are currently up as typical during war and or times, I believe oil prices get over $100. Today is a record on the Friday of 24th oil prices that happens during war time. So inflation is a major story in the country. And. Will be even more so now with oil going up in like the supply chain issues with other stuff due to the war. Real estate prices are going up and they’ve gone up really fast in a short period of time. I can’t help but be reminded of 2017 when the fair housing plan came into effect, along with the double whammy of new mortgage stress tests from Mosby, US being the regulator of banks in Canada. So again, double whammy provincial legislation, Ontario from the winning government, and then a federal change to mortgage stress tests. Then the market dipped in the spring of 2017 and it took a year to rebound in Hamilton. Probably around 15 to 17%. Prices dipped. That was how far they fell. But in Hamilton, it quickly recovered again from top to recovery was about 12 months. In Hamilton more expensive markets, for example, detached homes in Toronto or Vancouver and surrounding areas, those surrounding areas, they dipped even more and they took longer to recover. Terry and I took the opportunity to actually buy two duplexes in late 2017 and we bought them for two $500,000 range. So I think you all know how the things are gone. So those properties are now working for a million. So we didn’t do too bad buying the dip. So I’m not too worried about dips. It’s just to me, it’s opportunity to increase you. Your. Portfolio holdings. We could be in for something similar this year, but no one knows for sure. Being part of a team of realtors like I am, we are keeping tabs on the number of offers on every property that we are. We are involved with either selling or offering on, and we will continue to in order to keep our fingers on the pulse of the market. We’re already seeing starting to see a steep fall in the number of offers on investment properties, what we consider offshore investment properties. Homebuyers are offering the same properties as well. Spain is not the best home investment properties, properties, starter homes. But last week was a shorter week with Family Day. So as focus, attention was elsewhere. But we will of course, keep tabs on the subject and we’ll go more in depth into our analysis as part of our lessons from the street at our next real estate meetup, which is March 26. If you’re looking to optimize your real estate investments like I do in my. He does. I can recommend that you join us. If you’re on my email list, you’re already invited. You already get the emails too to register. Saturday morning, March 26. If you’re not on our email lists, you can join the tens of thousands Canadians who are already receiving email applications when this podcast is available. When we have events. Simply go to WW DOT Truth About Real Estate Investing Dossier. On the right side, you’ll see where forms you can put in your name and email address if you’re interested in again optimizing your real estate, investing in the stock market, stocks are going down, presenting opportunities for those who value invest like Warren Buffett. Opinions on the stock market are interesting. Novices say that the market always crashes, yet all of us as car owners get excited when gasoline prices drop and we happily fill our gas tanks when they do. Warren Buffett and friends of mine with more experience like myself, like Lee Law, Derek Foster, they’re sitting heavily in cash as they’ve shared with us in our stock hacker community, and I’m always grateful to be following along in their journey. Whenever there’s tough times, it’s always good to know what the pros are doing and then hopefully follow along and save from losses and get in for when the opportunities are there. I’ve personally been sitting on a bunch of cash waiting for a good sized pullback to deploy capital. And as someone who enjoys making money and despises losing money, some of my biggest regrets as an investor, not just real estate, but invest other things as well. Obviously, I missed the opportunity to buy a bunch of dividend paying stocks post-financial crisis in 2008. Again, post pandemic crash of 2020. I did the same thing, didn’t end up buying and holding enough positions, especially for finer detail. I owned a lot of Bank of America, for example, and AMD, the American Processor Company, and I would have made a lot of money if I just held those things. Maybe this time I learned my lesson and I’ll stock up on winning companies, including those that pay dividends that I look. I’m looking to add to my Bitcoin positions because this looks to be a pretty decent one. Hopefully this is the next best opportunity since the pandemic crash of Spring 2020. Of course, none of us should be considered financial advice. Folks, I am not a financial advisor on this week’s show from audience requests. Once in a while I get one of that. Doesn’t one of the listeners, one of the 17 of saw I saw of you, I’ve had requests for guests who are beginners, who are earlier in their journey and also have had requests for folks who are later, who started later in life after May or later in life. They want to they want to hear stories of success from other people that are in the same age category as them, like, you know, can be like 50, 60, 70 years old. Today we have both and David Rahilly, who is close to retirement age, he’s been only real estate investing for a handful of years. And he recently learned how to stock trade options, how to trade stock options of holidays. David’s full time job is also that of a high school teacher in civics of all subjects, civics class teaches students how government works, how to be good citizen. They teach about the Charter of Rights and Freedoms, etc. stuff like that. Unfortunately, this episode was recorded four weeks ago and lately there’s been a lot of confusion over the freedom to protest and when a protest becomes an illegal occupation. But being this is a sensitive subject; I think we’ll just leave that as is as I believe too much is divided our investor community. And I’d like nothing more than to get back to normal and get back to that common ground that all of us have as investors, which is building wealth, using best practices in real estate stocks, private equities, whole life insurance, investments for comfortable retirement, and leaving a legacy for our children anyway. So David, being a high school teacher and I like my investor like us, I wanted to hear his perspective on investing and what’s being taught in school as I think we could. All we’d all like to know that the next generation generation’s being taught to invest, maybe get ahead in life. Hopefully, maybe not. Please enjoy the show. Hey, David. What’s keeping you busy these days?

David Rahilly [00:09:01] I was keeping busy. Busy staying at home, trying to learn more about my stock options, trading, trying to figure out what to do with the current market is really keep me busy and then eventually busy will start on Tuesday when I go back teaching in the classroom. I’ve been off for a half year at this point that I do every two years.

Erwin Szeto [00:09:26] Oh, can you explain the leave? I don’t think I’ve heard of this before, but you’re able to take such regular leave.

David Rahilly [00:09:33] Yeah. So the official name of it is called an employee funded leave, but the slang term is a four called four over five. So to put it in simplest terms, they take four years of your annual pay and they stretch it over five years.

Erwin Szeto [00:09:50] So you never get stopping. You still get a regular paycheck, then.

David Rahilly [00:09:53] You get paid the whole way through. So what happens is you work the first four years, take the fifth year off. What they do is they take you’re only getting paid for years. Your pay over those five years. How it works to choose which most people make sense is while you’re working those four years there with the employer is withholding 20% of your pay for the whole four years. And then that fifth year that you’re off you’re taking that money to withheld to pay.

Erwin Szeto [00:10:19] Attention, keep your taxes to then.

David Rahilly [00:10:21] Oh, that’s one reason I do it. I notice this the first time I did it because you’re getting paid 80% of your bill or tax bracket. So that works as well. You don’t notice it as much. And the way I look at it, if I can live off 80% of my pay and even have time for other ventures like real estate investing and stock options trading, well, that that makes it easier for me as well. I look at also lifespan. We never know how long we have because if I could live to 100, I could be run over by the next couple of years. Let’s be sure I can enjoy time off as often as I can.

Erwin Szeto [00:10:55] Get some summers off already.

David Rahilly [00:10:57] Yeah. Yeah, you do. You do it. I find that issues of that too I like I can’t complain but there’s a Yeah. You’re really doing a recovery during the summer but and the other thing too I find with the time off, which is really Christmas March break is summer which are unpaid officially is what they do. They give you a yearly salary, you spread it out. Let’s say travel becomes an issue with those time periods. That’s the highest price of travel going, yeah, it’s just March break in summer. So it’s not like I double.

Erwin Szeto [00:11:27] Almost like it’s like double the low price.

David Rahilly [00:11:30] Yes. And I know the bottle. The school system originally was because of the agrarian society. So the summers are awesome and you to go home and work the farm so they have your school as well. We’re no longer in an agrarian society. I don’t know if that’s truth or not but does sell reasonable to me. The travel business wants to keep it that way. I travel businesses does want year round school because march break Christmas and summers when they can charge the most because they know that’s when people are off. That’s when the students are off.

Erwin Szeto [00:12:05] When teachers like it spaced out back.

David Rahilly [00:12:08] But it’s been tried in Ontario. I don’t know what they were. They went with year round schooling and it was spaced out. So it would be like a month off in summer to two weeks, March, break and actually work, go to an extra week off. And from what I heard; I didn’t hear directly from people who are in that. I heard from friends that knew people and apparently they loved it because they didn’t have to. What like, say, summer can be a long way off for a lot. E not so much, but for like two months be too much at one or even for kids. Does it get. Grammy winner born. You got to entertain em. Then it was April. I don’t think the traveling it wasn’t like after you see the travel business in general likes to predictability.

Erwin Szeto [00:12:51] Oh it doesn’t like predictability.

David Rahilly [00:12:53] Everybody likes predictability.

Erwin Szeto [00:12:54] Yeah it’s part of human being. Human. Speaking of predictability, what catch into real estate usually do. Well, then you get a pension, right?

David Rahilly [00:13:03] Yeah. Your limited done well. All right. Yeah. Yes. You’re middle class still, right?

Erwin Szeto [00:13:10] That’s terrible.

David Rahilly [00:13:10] Yeah. Yes. I mean, I want to play, but yeah. Your cap rate pretty well and it takes a while to get there. You can make 100,000 a year. But then again, what do you get with that? Like you get you’re not gonna be world travel ever. And the pension is going to be 60% of your pay. So what do you really want? How can I had this up a little bit? Ah, back to your life, your terms. So I was looking for leave. It was 2015 the first time I looked into real estate investing. I’ve always looked, I’ve always been interested, but I had to have the confidence to get in.

Erwin Szeto [00:13:42] Today we can ask you how old you are, 2015, even just a bracket range in 1870.

David Rahilly [00:13:47] So there’s get I can give you a math questionnaire. That’s an easy way to count from nine or 1970.

Erwin Szeto [00:13:54] So 2015. Yeah. Why didn’t you have confidence?

David Rahilly [00:13:57] Why? Because you hear are two pitfalls. Say yes. We always worry about what’s going to go wrong. Yeah. You don’t even happy real estate to hear tenant horror stories. Yeah you know, nobody has everybody knows somebody that done this their lesson you hear horror stories that the rules are not in favor of the landlord. So that was and then it’s a big investment to how they get the funds to buy a second house. Usually you have to have a pretty big salary to even start are sort might be like so what I started with I found a Robert Kiyosaki course okay. Yeah. So I didn’t take that one. It was free for like an hour. And then I decide to take a two day course, which is a bit, I can say three or $400. But I did find I don’t know if you’ve heard this, but Robert Hockey, those little two, three sorry, three, $400 of course is a rate of over 5000 hour courses and that’s what I found. I got into it, so I got a lot out of it. But the thing is, I still wasn’t going. I said they said you had to pay 4 to $5000 course to get a mentor. Okay. So there’s no guarantee with that $5,000. So I wasn’t ready yet. And then in my mailbox it I have on these key mailbox that only I get this fire for rockstar real estate. I’ll read to you eventually. I said I’ll go check that out. And a party like twice. You got mentorship, but you didn’t pay out of pocket.

Erwin Szeto [00:15:26] That’s pretty good, isn’t it?

David Rahilly [00:15:27] Yeah. They made their money. I thought this makes sense to take a skin in the game. They want to make money. They got to help me like they get and funny enough to mentors will make more money off the because they have real estate license so I get help I get the mentorship don’t make more than that $5,000 off the percentage off to sell the house so this business was that.

Erwin Szeto [00:15:48] The nice business.

David Rahilly [00:15:49] Is I thought I thought I like that model so.

Erwin Szeto [00:15:52] Because most people are going to need to use a realtor anyways.

David Rahilly [00:15:54] That means that they have to help me in order for me to succeed. It’s not like you get the money upfront before I succeed because.

Erwin Szeto [00:16:01] Most people are going to use a realtor anyways. So you know, yeah, this is how we earn our commission is to help make you successful.

David Rahilly [00:16:08] Yeah. And I did get I did figure out an idea for a rockstar real estate mentor. They probably have to have somebody like me with two properties to really make start making money because they have to mentorship as well as being a real estate agent. Really? Yeah. Do buy one house. You would have been better off just to be a real estate agent. So that’s how that started. So and funny story this is I bought the first property is closing it I don’t mind say I don’t know I think you just say if it could be safe to say today my mentor. Yeah that’s right. Okay so Tunisia sandals. Okay so I was out working with her and funny enough, I was going to Ireland in October. This was my first time I had my boy funded leave. So we’re literally closing the sale of my first rental property in Peterborough and I was at the airport waiting to board by plane, go through customs and all that, were going back and forth. I had a cell phone and then we were in contact by WhatsApp when I was in Northern Ireland on my trip to arrange a house inspection.

Erwin Szeto [00:17:13] There’s never a perfect time for anyone who thinks there’s a perfect time period.

David Rahilly [00:17:16] You never know. It’ll work. And then I asked my teacher and she asked me What? But a home inspector said, I have a friend who’s a home inspector. I can’t give him the work. Yeah, he is good. I’ve used him before. I had a friend. Yeah, he used to be my way. Sexual. Boyfriend of all people makes him better. But we’re still both forever friends of mine. No worries. Boom. And then he gives. He gave me, like, $150 off mercury and the other one, 2 hours messaging him from an email from Northern Ireland. I said, so he sent me the invoice. He said, how much it so how you want me to get you the money like you want me? I don’t know. He just says, pay me when he come home. I trust you. So I didn’t pay him for the home inspection. Over a month after the fact I saw him. So let’s face our friends like that. That will give you a little discount and trust you like that. Add some humor to how everything worked over there.

Erwin Szeto [00:18:09] So what did you buy in Peterborough?

David Rahilly [00:18:10] Uh, I bought a for a level back split. Mm hmm. Right now, there’s a young couple in there that started out with one child and had a second child. Since I probably went through about 60 screenings before I finally got someone to move in. And it’s a rent to own arrangement. Oh, okay. Okay.

Erwin Szeto [00:18:31] What year is this?

David Rahilly [00:18:32] This is 2018. So the rent to own is up. This may, I believe, and a double check. And I’m going to start reminding the tenant that the time’s coming up. Maybe you should start looking into making your range. This little lawyer to close this deal and mortgage.

Erwin Szeto [00:18:50] Yeah.

David Rahilly [00:18:51] Yeah. Honestly, I’m hoping they can. Okay.

Erwin Szeto [00:18:55] Can we do some numbers? What did you buy it for?

David Rahilly [00:18:58] I 352 Oh my. I know. This is why I don’t want it to close because rent to own you set the price of it go going for the rate now goes for 23 if it closes and they know it’s worth more or not.

Erwin Szeto [00:19:15] Okay, so you buy from 350 to the option price for the tenant to buy it from you is for 23. What do you think it’s worth?

David Rahilly [00:19:23] It could be six to approximately 600.

Erwin Szeto [00:19:28] It’s worth.

David Rahilly [00:19:29] Less. Yeah. So that’s why I hope I’m kind of hoping they can’t pull off. No, I’m not. I’m not going to put them out or anything or be that type of person. I could be like, okay, well, I did get asked when I screening people, what happens if I can’t buy you out? Well, simple. If you’re a good tenant, why would you want to get ready? I’ll just add another year to the agreement. We are just the price to make. If you’re a lousy, if you owe me money, you better get it to me in a hurry. Otherwise you’re out. You lose your 10,000 deposit, but you’re a good tenant. Why would I not want to keep you? So I’ve got to hope they can’t buy me out. Add another year or two. That’s just the price they have.

Erwin Szeto [00:20:05] Like 175,000 built in equity. They just need to figure it out.

David Rahilly [00:20:09] Yeah, that’s what you’re telling me. Yep. That’s why I don’t. I don’t want to really advertise that, but I don’t. You’re going to be honest to tell if you’ll be up a lot of money more. I’m here by a price. Yeah, but I’m not. I’m still darn upset with this because the other day it doesn’t always work out that way anyways. Like I get a guaranteed my profit anyways and that’s the main thing. I can walk away at a profit. I’m happy and you’re retain maybe your rent to own range of money to protect me from other pitfalls because they had written $2,000 deposit.

Erwin Szeto [00:20:41] Oh thank you. Deposit. Nice.

David Rahilly [00:20:43] Yeah. 10,000 deposit. So they can know they have that they can lose. They have to pay the first $300 in repairs if they’re going to own it. Now odds of them looking after it are far better than if you’re not at all. So the reason I did to rent the home was to what are my odds that I’m going to protect myself, that the way that 1 to 2 is the what if I didn’t rent own and I had lousy tenants because it’s not there’s.

Erwin Szeto [00:21:08] Rent and they’ve been good tenants.

David Rahilly [00:21:10] They’ve been excellent and saved that someone paid me as much as four months in advance. Nice tenants.

Erwin Szeto [00:21:15] That doesn’t happen in the regular.

David Rahilly [00:21:17] Oh I was. Yeah, I can even tell you about that. A friend of mine’s in the Czech Republic right now. He’s retired but used to work with him and his wife became property manager for their house. And Wendy, I was a fourth property manager and me. I took it on just for a learning experience, a fair. Well, if you’re not mine, it can probably be tougher if you’re lucky to be bad guy because he could blame it on the landlords. And I figured if I learned that, that be if I have trouble my own tenants. I’ve got that experience. Why did I ever get baptism by fire? So we had tenants. Well, I didn’t have the tenants. My friends are retired teachers of the Czech Republic, didn’t screen them and it was so obvious it didn’t screen them and take me long. So a year before last, so August 20, 2020, the sheriff came over to give them the boot. Well, good job. And that was very cool. But it took it was a long process. I got refused entry once by email. I was called. He said, my son’s sick and quarantined for 14 days. You come and tell me I’ll call the police. So I called the guy in Czech Republic like myself on our Facebook. So we’re not in our business. Okay, well, I’ll do what I said. What are police really going to do? And I was like, Why should I show up in a. RB JJ 24 is one of the pleas to do really get a hand copy and take you away. Yeah, yeah. I got to say, you know, you can enter. That’s actually a back and forth back and forths away. And I even have to, even if I’m allowed it to happen. So I talked to my friend, called the Benzie police talk to Sarge, who said, yes, you have the right to go in there. But you got to mention the sun sick problem. So I talked to the sergeant was like, no, sorry, you can’t. I would keep sending my boys over. And then he said, But he can’t pull that again, so this gets better. So then I called, I put the 24 hours’ notice again a month later. So they’re not paying rent, directing things, probably growing stuff in there too. So I show up the door and next thing I see another truck. He’s got a buddy. That’s good. So I get back off six feet, you’re not coming in. And then a second older person comes out and they said same thing and I massive clubs they’re really that’s. So I ask you may I ask who you are. I don’t need to tell you who I am. Who are you? I said, I got a piece of paper saying I’m on the property manager. So the one tenant slept me call them dads and I figured it out. So I did some background checks on that guy, but I was squatting there too. Okay. So I thought I’d enforce the way in. And I work for now. You can’t, because then they look at me and just so the next time I put the 24 hour notice in there, I had a policeman going in the door. So that’s why it’s like you are okay if you’re a police, I’ll do you a better alcohol free resort to take tests. I had to have a police officer go to the door to get it and make you the sheriff gone. And this was going on. I guess they had it for like two years. And then eventually it probably cost about $30,000 in damages, unpaid rent. What they broke and stole, they stole the stole even. So. All right.

Erwin Szeto [00:24:16] We’re scaring people. David.

David Rahilly [00:24:18] Yeah.

Erwin Szeto [00:24:19] You see the value of having a coach or mentor?

David Rahilly [00:24:23] Yeah, yeah. That’s why you have a mentor. And what I am trying to get through this one do screen your tenants. You’re better off having an empty property and paying a mortgage out of pocket than having bad tenants in there, which I did with my own property. I thought I had it vacant for four months and just paid the mortgage because I’m still building equity doing that. So I wasn’t worried about that.

Erwin Szeto [00:24:47] And then how much was the rent on your Under Peterborough house.

David Rahilly [00:24:49] 2090, but then they get a $200 towards the back end of a price and on time.

Erwin Szeto [00:24:56] Got it that’s just summarize you bought for 352. Yeah they have the right to buy a four for 23. You know what rate. What price appreciation rate. You used to calculate the exit price.

David Rahilly [00:25:08] We did it three different years. So first year, six next year, 5.5 next year, five.

Erwin Szeto [00:25:13] Are you Santa Claus? Do you have any more houses to sell me?

David Rahilly [00:25:17] I don’t think they go for that much anymore. Yeah, well, that’s what depreciation is going out high at that point anyways. At that point in time it was a year later or would have been a lot more. Yeah, I think the gross appreciation happened after all this.

Erwin Szeto [00:25:32] Well, I’m pretty sure guaranteeing your way into heaven for being so kind.

David Rahilly [00:25:36] Yeah.

Erwin Szeto [00:25:40] Well, like you said, like, if are capped right in your job situation, like your cap, like you’re comfortable.

David Rahilly [00:25:46] Got all right but can we do better.

Erwin Szeto [00:25:50] And then have more property?

David Rahilly [00:25:52] I have one. It’s still not built. It’s. I bought into U.S. towers in Oshawa. Okay. 25 storey apartment. And I don’t know what I can do with that right now. I know. I’ve made money off that.

Erwin Szeto [00:26:05] No. So what’s going on?

David Rahilly [00:26:07] Well, I don’t know what it’s exactly worth because it hasn’t been built yet, so I’ll get the assignment. These sign it before it’s built. I want to get a feel for what it’s worth, because right now the building, you see two towers and a second building, but it’s VIP price. I want to wait to see what it goes for at that point. No, no, there’s right now I’m looking at two bedroom condo in Oshawa, a luxury condo. And I paid just over 400,000 for it. So there could be a couple of hundred sitting there.

Erwin Szeto [00:26:40] When you buy it.

David Rahilly [00:26:41] That would have been 20, 20, maybe so I suppose be finished. This may be 2090. I think it’s 20 1990. I’m just thinking, oh, it’s pandemic.

Erwin Szeto [00:26:51] You’re probably doing pretty well then.

David Rahilly [00:26:53] Yeah, I am tempted to get rid of it because I have a discussion with my mentor on this. Think you’re getting all these ideas? Okay, well, build it. And then if I need money because I look at it, this is money, it can help me out. The stock options trading as well, of course, don’t mar it. Of course, if you have that amount, why would you need the margin anyways between the two properties? That’s why I’m looking at it. Yes, there will be an assignment fee by like okay, but what can I gain if I wait? I’m not making money with it. I could get tenants, okay, but I could be and then take an equity loan. But my thing is, if it is, I’m still looking into this too, if I’m to assign it. Early pioneers, early assignment fee, which really 70 $500. But how much has gone up in value in not having had the headache of having a tenant? Yeah, why not? And what did it really have to do to make the appreciation? All right. Nothing that we do in this case is just let the darn thing have gone up an even 100,000, even closing costs to walk away. Half that. What did they really do?

Erwin Szeto [00:27:57] Did you say it’s a two bedroom?

David Rahilly [00:27:59] Yes, two bedroom. What you think it’s worth? I think it’d be sex easily. I drive by. When? When he first started selling. When I bought. There’s a sign outside the house that the house said that the. The office where they’re selling the condos. It said, you see towers for the low 200,000. That’s a little over 200,000 is if you buy no bedroom. Right. The Bachelor. That’s why it cost 400,000. Now, you drive by the same office, it says starting for the low 400,000. I’m like, wait a sec. It’s all the what the lowest priced condo has gone up that amount. What is mine gone up by?

Erwin Szeto [00:28:40] You nailed this one. You bought a pre-pandemic in your closing post-pandemic.

David Rahilly [00:28:44] Yes. I think they’re still tempted to call it the world Asia. Yes. Yeah. It’s an easy product that they get out and they always look at for maximum profit. I also get to look how much effort I have to put in the it. I invest the money, how you walk it. Never. I don’t have to deal with the tenants because you don’t know what you’re gonna get and then you got a hassle screening them and everything else.

Erwin Szeto [00:29:08] Because you kind of need a tenant just to avoid paying the HST.

David Rahilly [00:29:12] Yeah, I’m just thinking in what’s my time worth and everything and the hassle and all that. I said if it’s gone up that much in value and you have to do anything like take the money and run.

Erwin Szeto [00:29:20] Yeah. Unless you want long term. Hold it.

David Rahilly [00:29:22] Yeah. I even think the other option is out there too. There’s other areas in Ontario that haven’t gone up by the same way.

Erwin Szeto [00:29:30] Yeah, that’s why we’re in Bellville now.

David Rahilly [00:29:31] Right. Bellboy Yeah. Bellboys just second Bellville as well. Bellville North Bay. Yeah. Take away from there. Go by one of those places that could be even a retirement property as well, because they had to sell you that retiring. Well, full pension is six and a half years, so.

Erwin Szeto [00:29:45] My friend sorry will manage in Bellville. So I but that’s what makes me more feel more comfortable about it.

David Rahilly [00:29:51] Yeah. And Kingston is expanding to get here. Yeah. So it’s just things are looking up, but that’s great. Now, with the condo, I was thinking. Yeah. Just to sign it. Mm hmm. Now I won’t make as I don’t need to maximize profit, because the maximize means a lot more work. Just take the profit with less work. Mm hmm. I try with an accredited business. He’s got a Green Bay condo. Think he sees that logic, too? Yes, he bought it. He and his brother buy and all get tenants and all that. Because you see something like that said, yeah, it’s going to go up a value like that without even having to tell it. Mm hmm. Take the money and run is make it there.

Erwin Szeto [00:30:31] Unless you love it.

David Rahilly [00:30:32] Unless you love it. Yeah.

Erwin Szeto [00:30:34] Unless you plan on, like, moving into it later.

David Rahilly [00:30:36] Oh, no, no, no, no. No desire to live in a condo or have neighbors rate the other side of wall. So I like my property. Like right now my house, little Mimi is like at 200 feet by 55 feet in the backyard.

Erwin Szeto [00:30:49] This nice lot.

David Rahilly [00:30:50] Size. And I would never I’d never be able to afford to stay in the GTA. And I here’s I paid for it I paid 200,000.

Erwin Szeto [00:30:59] A year that.

David Rahilly [00:31:00] 2010.

Erwin Szeto [00:31:01] Oh that recently. Okay.

David Rahilly [00:31:03] Yeah. 2000 by 199 by and really it’s I all but 240 because I pulled money out to.

Erwin Szeto [00:31:10] Nice.

David Rahilly [00:31:11] And fast and to upgrade a couple things. But recently the house across the street from me went for 615.

Erwin Szeto [00:31:17] Right. Right. And I just want I just want to point that out to the listener. And what in your story is very common among our own clients is their they borrowed from their homes to buy investment property.

David Rahilly [00:31:28] And that’s why I did it. That’s what I got taught by the rockstar estate. They said you have to take equity out of your home. And then and the one thing you did know is when you do that, you’ve got enough that you can carry the mortgage to give you time to get a proper tenant in there. Do not be. I’m I have seen people do this with real estate outside of the people we know, they rely on the rent to pay the mortgage. They can’t carry it at all without a tenant. And then they get desperate. Don’t get panicky.

Erwin Szeto [00:31:56] Yeah, that’s what’s bad.

David Rahilly [00:31:58] That’s just bad. Yeah. Just. That’s why I looked at I said, so what do you take? I find when you take a home equity loan out of your resident’s property, that gives you enough money not only to put the down payment on, but if it flies, you try to get a tenant there if you have to do a lot of screening. Mm. And no big deal that pay a mortgage on an empty house because it does pay down, it doesn’t add to the equity anyway.

Erwin Szeto [00:32:21] And then do any more for investing properties.

David Rahilly [00:32:23] No. Just goes to I don’t know if I’ll continue or not. Is there more of it. More because of my age or because I am looking for retirement six to half year. Is that I much? Worker do I want? I don’t want to retire so I could work.

Erwin Szeto [00:32:34] Can I interest you in some boring stock option trading?

David Rahilly [00:32:38] Sorry, saga to dream. Although how to get that to be dark after trading is going to be safer than what that one will be. For once, that’s not a lot. I don’t. I guess it’s a lot of being stressful. I don’t find and want to know what you know, what you know. And it’s not a lot of work really.

Erwin Szeto [00:32:54] Yeah. I mean I mean I’m other the results be boring too.

David Rahilly [00:32:58] Yeah.

Erwin Szeto [00:33:00] So yeah. So you’ve venture down stock options as well.

David Rahilly [00:33:03] Yes.

Erwin Szeto [00:33:03] And how’s it going.

David Rahilly [00:33:07] Was going well, but I’m getting hammered like a lot of people are right now. And then the biggest thing right now is just patience and learn from what happened to me over margin rates at the end. Typical thing, you might just like being told by your parents not to do it, not do it why you do it anyways that you got to learn the hard way. Yeah. So maybe.

Erwin Szeto [00:33:27] Some for the listeners benefit using margin would but essentially be using leverage borrowing.

David Rahilly [00:33:33] Using leverage. So using larger overleveraged. And when you do it through the broker is not the same as doing it from a bank. Yeah. Yeah. You just can’t. Yeah. When we borrow from the broker and then you’re over leveraged biggest seller, your position at a loss you don’t have, you really don’t have enough time to put more money in to cover that because even to do a bank transfer, anything, they’ll tell you when you’re getting close. That’s it. But if you get a tank in the market, you get hit by margin area or overleveraging or sell your position. It it’s not like a bank where you miss a payment. They send you an order so that you can buy yourself and you can make up the payments later. You know, like, say if you missed a credit card payment because you’re having a rough month but they’re not selling stuff on you to pay it.

Erwin Szeto [00:34:15] They are charging you 20, 22, 27%.

David Rahilly [00:34:18] Yeah. Yes. Charge you a lot of interest, but you can buy yourself time. Yeah, we have a.

Erwin Szeto [00:34:23] Very extensive tax.

David Rahilly [00:34:24] Brokerage, so you know, you’ve got no time to get to that point. So that’s what I’m doing. I can repeat what everyone in the business repeats has been there, done that. Be careful with margin. Yeah. Like I say, don’t ever use it and I guess they’re never going to use it again. But I’m. I could do it the way I did.

Erwin Szeto [00:34:40] Yeah, it’s a double edged sword. Just like real estate. Yeah, it make the media soon enough. You know, there’s a there’s a couple of real estate companies that are going belly up. They owe their overleverage to promissory notes and like, mortgages. And I don’t know what I don’t know all the details, but the details will come out.

David Rahilly [00:34:56] Yeah library and look at it now is okay if I learn stuff from SMB prosper later that that it was worth it and I still call it nothing ever historically has gone down forever like that. I’m just assuming now how long has been going down like we’re looking to get we’re getting up to three months now straight down I may I see it looks like because I got margin call it was like two thirds my whole career fall so if I’ve been up before being up again and then right now I’m trying to shift around like, okay, I’m going to sell some things at a loss on my own terms, knowing what I’m going to replace it with at a lower cost. Because right now there’s value stocks. But I’m also I’m focusing on companies I believe in because they can.

Erwin Szeto [00:35:40] Share some of these household names.

David Rahilly [00:35:41] Believe in. Sure. Yeah. Ones I like not giving stock advice. That’s a common.

Erwin Szeto [00:35:46] Advice on this show.

David Rahilly [00:35:47] Folks. Secure stock advice of the ones I personally like a no longer is just too expensive right now and I had forces sell all of my customers 28 I would love to get into it because the base price for well Tesla’s a nice price for be a Tesla. Tesla is one of the more expensive stocks but there’s still close to $900 US a share and really and you and I both know really you have to have 100 shares to have more things you can do with it and cover calls.

Erwin Szeto [00:36:21] Don’t do those things and don’t have that kind of money.

David Rahilly [00:36:24] Yeah. So and I like because of who the CEO is, Apple’s a $3 trillion company.

Erwin Szeto [00:36:31] Hopefully it still is after the end of the day.

David Rahilly [00:36:33] Okay. Yeah, if I had to. What, Victor hit the list today. And I just one thing I did notice was looking through all the solid companies I had to least survive. Yeah. Now look at Apple. 3 trillion. That’s more the Canadian economy. Wow. That put that perspective. Yeah.

Erwin Szeto [00:36:50] I like that statistic that, like, AirPods is like bigger than like.

David Rahilly [00:36:53] Like Uber.

Erwin Szeto [00:36:56] Knows everyone is Uber. AirPods is bigger than Uber.

David Rahilly [00:37:00] Yes, Uber had a veggie cell. The better, even while this is all go. Yes. Yeah, I think I got margin call because I think it was okay but then is just how the length of the time of this drop, I think it’s been going on really from the second week of November on. It has been really very few days for air and I find even today for the next day wave to do and that’s all the way through November. So is there another lesson learned as just because they statistically or season. Season to season doesn’t mean it’s going to happen. Santa Claus is going to come to the moon. He’s got Rosie out there. The not Santa Claus rally means is typically around Christmastime or very close to Christmas time or slightly after there is a rally in the stock market. But I also know that to the last few years, Santa has pretty much not shown up.

Erwin Szeto [00:37:52] There was no Santa rally.

David Rahilly [00:37:54] There was last year, but it was a year before.

Erwin Szeto [00:37:56] The last year that was tied to the US election though. Yeah, it was more news driven I think than anything. And these days everything seems to be news driven. So it’s the seasonality is different. You know, it’s a different world with the pandemic. And you know, as you.

David Rahilly [00:38:10] Back to what’s consistent is still the margin is much also very little into it. And then you just weather the storm because you’re not taking real losses.

Erwin Szeto [00:38:18] Yeah, exactly.

David Rahilly [00:38:19] Because he can’t. And it is we can’t predict. We can play the odds and what’s going to happen, seasonality or all these other factors. But at any given time, you could take a hit. Something out of blue just changes, things that would end, things that unpredictable can happen. So if you’re a margin, that’s when you get hit. Because I was talking to work on the phone, you saying, oh, I’ve seen this about 50 times in his investing and you never know what you’re getting to learn from and that’s pretty much it.

Erwin Szeto [00:38:52] TV Doing spreadsheet doing naked puts.

David Rahilly [00:38:54] And doing naked parts. Okay. In the I’ve covered earlier; I haven’t tried to spread it. Oh, boy. And you go back and look at your course that I did a year back.

Erwin Szeto [00:39:05] Please take some time to before you go back to school, learn about spreads to find your loss and define how much capital you’ve put up for trade. Yeah. Yeah, it is. Yeah. The market’s been the growth market seems like it was from what I’m reading is just that seems a lot of people thought it was overpriced. Yeah. That’s why we’re seeing the decline in a lot of growth stocks. Even Tesla who killed their earnings today and still the stock is down.

David Rahilly [00:39:28] So and the Fed announcement yesterday was not a bad one. Not a bad one. No, no. They said, if I’m not mistaken, I heard you can do one. Thank you. Can really please say, okay, we’re not changing interest rates till March which for probably tell me well look at March and then I it was very vague when I heard the radio about the Fed, but it sound like it’s very similar. You’re not increasing the interest rates till March. Mm hmm. Which you think would calm this down? Yeah. No. And even with earnings I’m hearing, earnings are coming. Good earnings, bad news was supposed to be helpful and still no.

Erwin Szeto [00:40:07] Yeah, the earnings have been good. Microsoft’s earnings were good. Tesla’s earnings were record. Tesla’s down Musk Microsoft, I think even. And who else? Netflix. Oh, yeah, they have good earnings. The growth isn’t the same. So there’s growth smashed. Expectations are high.

David Rahilly [00:40:26] All right. Takeaway I’m going to be doing now is knowing the companies I’m going to invest in do any of these strategy. I first learned that people should know the names that the company is investing in because that means appropriate. So but do I actually use these things about these things? Those, for example, peloton. I get killed two ways. Not as bad as it could have been. I was going to say at $92 and it’s down 2095. Yeah, 25. I get a sign of 55 least it was at 92. I got to that. But one thing I look at Peloton too. I thought, I do have a personal training paperwork, but I don’t have a treadmill. I have a gym in my house. Very simple. I look at treadmill and this is me as a personal trainer. It works out. After doing well, I use that treadmill. Do I want to pay $50 a month for a subscription? And that’s me. As a personal trainer, I find it very limited what I can do just in the personal training side of it too. One problem I have with treadmills, this is a personal training tip for anybody out there. Treadmill. You’re only moving forward. You’re moving forward. I guess you could move back, but you can only go no one down until you get. You can’t do that. No, she can’t do downhill with a treadmill. So I take the five minute walk for my house because of two months’ worth of transcatheter others and they are still I can climb up and climb down with a weakness in weight. So I get that walking down a different pipe resistance. So that’d be a much better work than a treadmill and no $50 subscription. And that’s just me as a personal trainer. So he does work out. But think for how many people who don’t work at a regular basis. They get New Year’s resolution by a treadmill. And what eventually happens to it, it sits there, sits there, it sits there. And even when you’re if you do use alternate space, they take off. Mm hmm. Mm hmm. That’s where I’m thinking. Know my companies and do I use these companies so I can see that being a problem with Peloton people? And that’s just from my point of view. Someone else may have a different point of view.

Erwin Szeto [00:42:24] Mm hmm. So my friends are like one. My good friends, he. He’ll only invest in the company that makes money as an. They have a steady stream of profits. He’s not willing to get in. He doesn’t to care for the growth. He does want the risk either.

David Rahilly [00:42:37] Okay.

Erwin Szeto [00:42:38] So, for example, he was doing McDonald’s today. So I did McDonald’s today. Not doesn’t buy the food.

David Rahilly [00:42:45] No, I would I would I wouldn’t want.

Erwin Szeto [00:42:48] My personal trainer.

David Rahilly [00:42:49] I like it. I like it. I’m not condoning doing this, but I suspect I would have a beer for breakfast before I’d have McDonald’s, because at least I know what to be put into my body. And I bet it’s a lot healthier, too.

Erwin Szeto [00:43:03] Or a hanger here. So would you rather have beer for breakfast or own some shares of it also?

David Rahilly [00:43:10] I’d rather have the shares. I’d rather not eat and work out what I want to eat, what the shares are doing lately. But I do McDonald’s like to me, and I’m not investing McDonald’s book to me. What I see in McDonald’s is they do make money long term. And what I’ve always said to McDonald’s, I ask people, how many times you see a McDonald’s location go under? Yeah.

Erwin Szeto [00:43:33] Have you. And now that you mention it.

David Rahilly [00:43:35] Painter Even worldwide, how often you actually seeing models go under?

Erwin Szeto [00:43:39] Me When one tries to unionize, I don’t know.

David Rahilly [00:43:42] Like revisited unionizing. It probably would be just to send a message that because they’re losing money.

Erwin Szeto [00:43:49] And their prices keep going up and the lights are still there.

David Rahilly [00:43:53] Yeah. And one thing, you know, they have a good business model. They talk, they got one location at work. But, you know, see you go from one McDonalds the other, no matter where they are, the world is set up still the same. They don’t want to work together. Duplicated.

Erwin Szeto [00:44:07] Mm hmm. And they pay a 2.2% dividend.

David Rahilly [00:44:10] And then that’s the one way I’d look at. Yeah, baby, I don’t respect all because I don’t use the products, but yeah, as far as a business model goes, I. I don’t think they’re going bankrupt.

Erwin Szeto [00:44:21] Of not they don’t have washers.

David Rahilly [00:44:24] Yeah.

Erwin Szeto [00:44:24] Education folks nowadays. Yeah. They, they had earnings today and they and then the stock dipped a bit. So I’d like to I like to look at a chart like the I like the price compared to relative to its history. So that’s why I just grabbed a couple of shares.

David Rahilly [00:44:37] I think right now, too. Like, they’re doing a lot of margin call right now.

Erwin Szeto [00:44:41] Oh, yeah.

David Rahilly [00:44:42] Yeah. It’s taken them days to do it. So until they’re done that, I think we’re going to ride the wave. I guess I’m going to try to avoid more of them. So like I said, I’m still selling my own losses when I’m willing to lose not everything at once and I’m more or less focusing on them with the companies I don’t want to be invest anymore, take my loss and sell it. Put her position and a company I want to deal with.

Erwin Szeto [00:45:04] So, David, I want to have you on the show because you’re a teacher.

David Rahilly [00:45:07] Yes.

Erwin Szeto [00:45:08] And you’ve taught everything. Everything in all ages.

David Rahilly [00:45:13] Yes. So I’ll give you a bit of history of that. I do that every time we start. We’ll do this on Tuesday because I introduce myself to especially students haven’t seen me. So if I get great minds at school, I can say this is who I am, this work. Ask their body what schools they came from because they come from a grade seven or eight school somewhere or an elementary school somewhere. I said, okay, I’ve been teaching this long. I’ve taught every grade, many different sizes. So the first time I actually had my own class for the rest of the year was a place on Purple Field, which is north of Lindsey. By about 30 minutes northwest. This school has had 50 students in it before classrooms, and one class was just for going to kids for French and special ed. So I taught a4563456 split for a year. So I had all three grades. Wow. Yes, that was interesting. And then I also had 29 and I had what they call IEP individual education plans and sometimes specialties at 17 year olds. And it was a bit of a busy year. Same school I taught seven, eight, split that same school, believe it or not, folks out there, because this is going back to 1800s when you hear this, there was a class in that school that was KSK. One, two, three car. And I supply taught in that class year before. So what is the teacher? Does he get anything? No. But far as the whole class go, I start with four or five. Six with student teaching. That was a Niagara Falls off Niagara Falls and Agar Falls. I taught geography grade nine, grade 11 and OAC, which is the use to be called grade 13 when they had it. That was a geography world issues course. And then really from the Kirk Field days on, it was really a grade seven, lot of grade seven classes. Officially, I started qualified to teach grade seven all the way through grade 13. I believe I got my primary qualification. I could do j23. Visually, the 456 story was because I was a contract worker, not permanent. They couldn’t put me in place as long as I was willing. Enforce for severe. Early on your career and you don’t have your own classroom, you’re taking what you get. What I did was as a primary teacher from J. K to three, I never had my own classroom. Those grades, I went from class to class. I taught some called integrated literacy. They have an accounting board where you teach them oral language. So it’s kind of fun and it’s a lot of work prep wise for the younger grades. But when I went to class, class weren’t so much. I also taught music from J k to eight when all rotary, which is going from class to class. Now, this got dumped on me one year. I got told next year we needed to teach music for half of my profile. I said, That’s nice. I said, Well, I hadn’t taken musicians grade eight on a technicality to try to find a way around it. Guess what? My son was doing.

Erwin Szeto [00:48:15] It.

David Rahilly [00:48:16] Myself. Yeah, there are. There are some flaws in all kid in the word as it is, but it’s like, okay, there’s something wrong with that. I’m glad he did. I want to do guitars that album, like while I did enjoy it. And now, I mean, I’ve been in a high school for the last six years. That’s a Belleville that has about 1100 students in there, a little bit different, and Mercury had 50 students. So I typically teach any one day. So far I’ve taught grade nine because the civics course is that teaching about politics and how the government works and all that and history for grade ten so far. Now, what do we.

Erwin Szeto [00:48:56] See on the politics?

David Rahilly [00:48:57] Oh, yeah.

Erwin Szeto [00:48:58] What’s being taught?

David Rahilly [00:49:00] Oh, I have to play it by talking a lot about class just that way.

Erwin Szeto [00:49:04] Because the curriculum has to be taught the way that’s written.

David Rahilly [00:49:07] Yeah, well, the biggest thing is I got to. I can’t be teaching my bias.

Erwin Szeto [00:49:12] Mm hmm. Understandable. But what are they teaching, though?

David Rahilly [00:49:15] Actually, I have my views.

Erwin Szeto [00:49:16] What is supposed to be taught?

David Rahilly [00:49:17] Teach for the Charter and the Constitution. You teach about how government started power first past the post system. Okay. Teach you a little bit what the party stand for. Oh, okay. Yeah. And you try to stick to third party resource instead of what I think, because I know there are teachers out there that will violate these things. I even on my own, I think as a teacher is impartial as possible. Give them the information. They make your own minds up. That’s just asking for trouble.

Erwin Szeto [00:49:49] Everyone, we all suck.

David Rahilly [00:49:52] Yeah. I wish I could. Yeah.

Erwin Szeto [00:49:56] Wait, wait, wait. There’s no teaching around the efficiency of government or a light.

David Rahilly [00:50:01] Bulb or.

Erwin Szeto [00:50:02] Even just polling or how or how other they are.

David Rahilly [00:50:06] What you talk about, what you said, you said efficiency of government is not an oxymoron.

Erwin Szeto [00:50:11] It’s nothing like, oh, man, I don’t even know what to say. They’ve done something as well. You know, I believe in public education. I believe in health care. All right. I believe cares. You know, from an immigrant standpoint, there’s not many better places to come, but that’s one.

David Rahilly [00:50:29] Of the best places there. But I don’t I’m not one to rate the best. I do have issues with anyone if you don’t. And it’s one thing I do, like Justin Trudeau says, okay, yes, it is good, but we can always be better. And I do believe, of course, and that’s what any country and I also was saying from my competitor reservation, you’re always trying to change your training methods to improve on. Well, if you’re not getting better, you’re getting worse. Nothing stays the same. Right, right, right. Unfortunately, the politics in me and then I have a little fun with it too. Like we talk about laws and things and then they get into, I can’t recall juvenile delinquent laws, but the youth justice system. So the way I phrase it is, yeah, you know, the youth justice system be like, you know, when you have sticky things at the corner store after school and then you get caught and your parents for you, it looks to me like what I said. Yes, kids, I do know people I grew up with and their parents turned them in. They couldn’t believe that. Then you get an idea. Well, these kids, too.

Erwin Szeto [00:51:28] Can you comment on how kids have changed? Is.

David Rahilly [00:51:32] I think it’s a system. I find her a lot more coddled now. I believe there’s a pendulum, right? Probably you and I are growing up. You probably heard. We probably both heard. You said you should see how much we get in trouble, what would happen to us. And we’re probably thinking the same thing too to me on that one is I think I hear back in my parents day; I hear the Beatles. I never agree with that. And I’m one of those. Right. But nowadays it’s almost like there’s no consequence.

Erwin Szeto [00:52:02] So we’ve swung far.

David Rahilly [00:52:03] We haven’t we saw in the we started to wave far better, more of a happy medium for what I’m seeing. Right. I have to. I can get questioned for just talking to him the wrong way. Just the wrong tone. And meanwhile, lead times, there’s no consequences. They swear, you know, I can be. I have I’ve had the party question what you did to get them to swear. I’m like, Jesus, when I was in high school, that was set. You got five days off.

Erwin Szeto [00:52:33] I can’t recall ever hearing someone swear at a teacher in school.

David Rahilly [00:52:37] I remember three when I went to high school and two of them wound up being in prison later. That’s the type of look. If you wouldn’t even ask me, what do you dream about it? Imagine going home and explain that to my dad.

Erwin Szeto [00:52:49] Going to prison for a teacher.

David Rahilly [00:52:52] I know that your teacher, Huckabee suspended. I got caught with each and I would go over well, that’s a little bit different like yeah I find that and I won’t speak for my find more of it’s important to me parents be I don’t want to see parents shouldn’t be their friends but to bring the friend before the being a parent I find that’s going on and finding it’s not just the parent finding him. The system is very, very soft. I’ve been told in elementary school you’re not allowed to keep a kid in after school and elementary messing up parent permission.

Erwin Szeto [00:53:24] So no detention anymore.

David Rahilly [00:53:26] You keep it at recess as it was called it. They don’t care. They can’t do lies because that’s cruel unusual.

Erwin Szeto [00:53:34] Stuff they different world away cousin went for basic training because he’s part of the armed forces is going through to be even aviation technician so he’s not fighting right but I thought basic is basic meaning everyone does it and does the same thing from what his experience was. You don’t even have to finish your pushups when you’re punished.

David Rahilly [00:53:56] Oh, you don’t finish your pushups anymore.

Erwin Szeto [00:54:01] You’re a failure. You get your time. Yeah.

David Rahilly [00:54:04] That’s an issue I have to it’s listen to. It’s almost impossible for students to fail.

Erwin Szeto [00:54:10] Now that’s real world.

David Rahilly [00:54:12] Especially elementary biggest get bumped and I think the logic behind is they don’t catch up they get behind.

Erwin Szeto [00:54:19] And that’s supposed to catch up.

David Rahilly [00:54:21] Yeah. Oh on to me is I, I went to school, a lot of people were held back in elementary. They never got held back again. To me that tells me, well, that’s the level you’re at. Not everybody progresses the same way. Yeah, we’re not all wired equally.

Erwin Szeto [00:54:34] We don’t come back. They’re going to struggle the entire time.

David Rahilly [00:54:37] I’ll be a ball. This my experience from teaching grade 7 to 8, I literally have at times 3 to 5 different grade level sitting in that classroom because he got all the way through. And they don’t do.

Erwin Szeto [00:54:50] Any attention issues among kids that, you know, this.

David Rahilly [00:54:53] Attention issue is.

Erwin Szeto [00:54:55] Just because I see the I see how popular devices these days are, you know. Oh yes. That parents cell phones, you know.

David Rahilly [00:55:01] Yeah. To me, cell phones are a new addiction and I just kids getting I see with adults too like we just how many people just can’t put those things down.

Erwin Szeto [00:55:10] Now I’m dying to see what Tesla’s training for right now. I’m kidding.

David Rahilly [00:55:13] I’m scared to look, I guess. Hoping for tomorrow, because the end of the week. At the end of the week. Yeah. Yeah. But I.

Erwin Szeto [00:55:20] Think this is a lesson.

David Rahilly [00:55:21] For. Yes.

Erwin Szeto [00:55:22] There’s times I supposed to be getting in, not times.

David Rahilly [00:55:26] I do try to get teach them cell phone etiquette and school yet.

Erwin Szeto [00:55:32] There we way they’re allowed phones in school.

David Rahilly [00:55:35] Oh well this is the Doug Ford I’m not trying to be political here but I the policy it was a law that was already policy anyways it’s up to the teacher to set their own rules is it okay so there’s the problem is there’s no consistency with its the individual teacher I think it should be a either province wide hard fast rule consequence or school consequence. So we I do see some issues with different teachers, a different policy. So if you’re one of the hard core ones, you look like the bad guy or bad girl.

Erwin Szeto [00:56:09] Too funny because even in university, my year was when I went to business school. My year as a first year, we were all required to have laptops and have wireless. Now I have wireless cards as well. And I think two years after that they took away all the what everyone’s wireless access while in class so that that tells you the spouse the school’s decision right everyone tells you something about adults being the focus yet you’re saying that provincial government state putting it on the teachers responsibility whether or not the kids are responsible enough to have their phone with them.

David Rahilly [00:56:45] Yeah, and it’s a constant battle. So if you play, you play hard with them on the phones, you look like the bad. And there’s a constant battle. No, I did. I did the reverse because this this lower my stress a lot and I get some flak from colleagues. But this law, because big Democrat, I just say I don’t get I get tell you what, cell phones, you know, the rules, the parental rules. And it’s all up to me. I tell you what, if you don’t disrupt me while I’m teaching, I’m not going to say anything. So they said, legally, you’re supposed to have these things for educational purposes. So I said, if you’re not just because that’s the biggest one, the hardest thing to get a job is trying to do a lesson in your course of being disruptive and putting out fires. So I said, okay, if I’m teaching and you’re not disrupting it, I’m going to assume you’re taking notes with that cell phone. Oh, boy. I guess the rules are quite smoothed out.

Erwin Szeto [00:57:36] Oh, really? Okay. So I’m going to ask, how often is a ring? There’s a ring go off.

David Rahilly [00:57:40] Oh, no, it doesn’t. There are calls. You get texting and doing everything else on it.

Erwin Szeto [00:57:44] It’s like a for learning, though.

David Rahilly [00:57:46] I guess it’s more of its orb. I guess they let me have it control the classroom to give that sort of leeway. And I say, so that means we’re on our phones. You’re not busy. Okay. Don’t try to into action if you don’t distract me. I guess we we’re taking notes. Take that fight up. And I got it’s funny. Has come up with parents to parents like they do ask in the gym itself. So but they’re not learning if you have an opponent. I said, what just do? And I said, yes, I do. I agree. But they’re being disruptive because we’re in a phone battle. They’re not learning either. So what I tell them, I say, so we’ll just keep an eye on the mark, because the marks drop below a certain level. That’s a phone call I see below 60%, below 50% to fail. But I look it below 60. That’s at risk. That’s when I have to make a phone call. Okay. What do we need to change here? And that’s when a conversation might come up with an individual parent. Well, maybe they need to put forward. Mm hmm. And if the parent says that now you’re getting the phone, now I say, yep, the phone is being put away. I got parent’s blessing. I’ll get back up. So all of itself picking your battles.

Erwin Szeto [00:58:52] So, David, I don’t know if it’s available to you or you have a lot to teach kids about, you know, investing for the future.

David Rahilly [00:59:01] If I can weave it into a lesson with somebody that’s in the curriculum, I can. I get leeway. I don’t have to stick exact words to the curriculum as long as it’s readable. I do have leeway to go on a page as long as it relates to the topic. So this story get back to the example of history and we all know what happened. 1929. Folks.

Erwin Szeto [00:59:23] Explain what happened.

David Rahilly [00:59:24] And you don’t know the stock market crash in 1929. Anybody is watch any rubies with any sort of history in it. Even the Titanic had a great the end of the great the end and take one. The wealthy guys in the movie says he wound up committing suicide after 1929 because of the stock market crash. So then I get into it in the textbook, even mentions margin but doesn’t explain what margin is.

Erwin Szeto [00:59:49] So dramatic that.

David Rahilly [00:59:51] I don’t think you had much regulation back then that’s burned from that. Now they had margin, but there wasn’t a lot of regulation 28. There wasn’t a lot more in 1929. So what I explain with margin is and I compare it to like taking a loan for bank or on a credit card, interest rates are better. That’s great. Like interactive brokers, you’re less than 2%. That’s great. Problem is, if you don’t meet your margin requirements, they just go off and they can even at a loss. So that’s a problem there. So if something tanks in a hurry, which happened 1929, so I try to build on an example with numbers. I say you get $2,000 in the bank or you have $1,000 invested. You can borrow 3000 more now. Now, that’s pretty nice. I see you’re allowed. But the problem is if it drops 20%, so I say, okay, now we’re down to $800, it’s yours. You’re only allowed to borrow 2400. You owe that 600. Now that difference, I do show that I use an easy to use numbers number. 8000, 3000. It’s all zeros. I say you all that now. So with a credit card, even though it’s the higher interest rate, okay, you can miss a payment or two and make it up later if you’re having a tough month. But I am suggesting that. But that’s you don’t have that same luxury. If something tanks in the stock market, you’re over margin. I explained how what you put in goes down by that amount. You’re allowed to be margin on those. They are more and they want the difference. So I even go to the same example. Suppose they start off 1000 hours, borrow another 3000 off, its dropped 50%. Your contribution is 500. You’re allowed to buy 1500. They want that other 1500 different. Do I need it? You don’t have a lot of time to make that up. And especially if you don’t have it, they take it. And I said, here’s the thing, is how they take it. They sell your stocks. Guess what? Have the stock market price now worth a lot less? You just lost money. So that’s how I explain what part of what have 1929. But there were margin calls in 18.32 simple. So bringing a little math they’re not a math teach. But I did teach. I had to teach everything. And if you teach a great greedy eight, have your own class pretty much everything. So I have taught math, great math, and I do have first year university math for myself. I’m comfortable that so I can give examples like that. Yeah. If I could find in real life examples I can tie into differently. Absolutely. I will teach him.

Erwin Szeto [01:02:19] Q ten bitcoin.

David Rahilly [01:02:22] I wish I could, but if I’m going to tie something, I’m going to tie anything into a classroom. Must be something my temple teacher and I am knowledgeable about. If I made sure I made it this way, usually, if I’m sure, but not 100%, I’ll say the best of my understanding to cover myself. If we’re allowed, we’re allowed to say that. Example, we’re that excited because we’re trying to get indigenous curriculum into the regular curriculum and it’s a learning curve for everybody involved because you didn’t take that through school. So a lot of it comes up this, you know, as much you can. Then you say the best way, understanding school.

Erwin Szeto [01:02:58] I don’t want to learn about Bitcoin.

David Rahilly [01:03:01] You know, I learn about Bitcoin.

Erwin Szeto [01:03:05] I want to learn about the history of money. And then and then how do you protect yourself from the problems that you and I know are out there? And most of the listeners out there out there.

David Rahilly [01:03:14] Have told me about the fiat currency. Yeah, I have heard about that. That comes in a history too. But even the Grade ten course.

Erwin Szeto [01:03:22] So what do you tell the kids about fiat currency, please?

David Rahilly [01:03:25] Well, really, the more money you print, the less this really worth it. It buys less and less. That’s where inflation comes in. Now there’s a place for it. I think we have to have a balance to impose it. But you need a certain cycle, your money to keep the economy going. We just can’t keep printing money on something. That’s really when you print money, it’s on something that’s of low value on paper. It’s something we can produce forever and ever. So I said, the more you print, yeah, you get out of control printing your money, you get into control of inflation. And then it goes right back to pre-World War Two, Germany. There’s very pictures of people using wheelbarrows of money. He got out of control. But no, it wasn’t. It wasn’t anything tangible, like a Bitcoin event because bitcoin like solid material or gold or silver. The media is based. It’s printed on something that’s not worth a lot of value. So the more you print, the less it becomes less. The smart feature of the fiat currency.

Erwin Szeto [01:04:24] Did the kids ask how to hedge for currency then not run on a hedge for inflation? Sorry.

David Rahilly [01:04:29] No, we don’t have got that much in depth, but it might be something I look into down the road and make your own clear with a. Teaching it out like real estate. A solid thing. I don’t want to get into silver and gold, even though I know gold, more and more gold be mined with a limit.

Erwin Szeto [01:04:48] Make sure the price is flat last year with all the money printing going on.

David Rahilly [01:04:54] This is small. Then there’s Zimbabwe that has a $10 trillion note.

Erwin Szeto [01:05:01] They need to have a reverse split. Like the bleak theory zero is you need that much real estate in the bill you need versus like this reverse split it and.

David Rahilly [01:05:12] Yeah.

Erwin Szeto [01:05:13] Knock out six zeros off of it.

David Rahilly [01:05:17] I don’t know who who’s saying this I was on a I guess I think it was take one of O’Mara’s course of the weekend. He was someone saying he had he has one of Zimbabwe bills and he said he likes to keep it so makes him feel rich. Feels like a.

Erwin Szeto [01:05:32] Billionaire restaurant trying to use it.

David Rahilly [01:05:35] Truly. He has a $1 trillion note.

Erwin Szeto [01:05:38] And buying this restaurant here is.

David Rahilly [01:05:40] Just as cool as 12 zeros. Thanks. I do try to really just totally do with money too, because numbers come up in class a lot no matter what you teach. Numbers come up final. 10,000, 10,000, 100. Numbers million. I find one to get million billion euros. Don’t have a feel for the difference between the numbers like our deficit.

Erwin Szeto [01:06:02] Yeah.

David Rahilly [01:06:03] Because they almost look like. I feel like they treat a billion like it’s 2 million. It’s not what you said when I say a trillion cells in your body are when I talk about debt because that will come up with the for force. Yeah I thought I said this is where people is this where people get upset? They can’t leave any government at this point. Most people. Leave to pay your taxes for the go to good things. We don’t. Most people don’t mind that it’s one you’re paying taxes for and it gets wasted. Those amounts are. So what I say is, okay, so ask them. So how many cells in month? I ask them how many in these years? Well, a number of days. Like not exactly. How long do you think 1000000 seconds is? And let’s try to guess. They come. It’s 11 and a half days for 1000000 seconds. To give you an idea how big a billion is, it’s not. How long do you think 1000000000 seconds is? And they’ll come up with. Oh. Couple of months or so. And that’s what they come up with. I’ll tell. It’s both 31 and a half years, folks.

Erwin Szeto [01:07:11] Oh, boy.

David Rahilly [01:07:12] Yeah, that’s it. That’s why that’s the last thing I do. Just to get the idea between the difference a million and a billion is a year an idea. They are two very different numbers. And then with a I say roughly 31,000 years is 1000000000000 seconds.

Erwin Szeto [01:07:28] 5000 times.

David Rahilly [01:07:29] More. Yeah. Yeah. As we said, you have to. And then I do it with money, too. I say, Yeah, that’s where I can pick up to go. All governments just don’t matter. What, straight there. Yeah. Okay. If I had $1,000,000. I didn’t have any interest on it. I could spend $50 a day for 50 years for it to run out. That’s not a lot. Or maybe beyond the expenses. I guess it’s okay that I can have expenses. I said not a billion. I’d have to spend $50,000 a day for 50 years to run it. You give them a feel for how big that number is, as if you’d almost have to be creative to find ways to spend that.

Erwin Szeto [01:08:06] So, David, if a student asked you, how do I get ahead in life or how do I have an inflation? What would you tell them like this? Assume this is outside of class.

David Rahilly [01:08:15] Outside of class? Well, I shall have to be sure what you’re saying is like, I guess what I touched upon using easy answer, say get educated on it. They were educated. You are. Does it matter if it’s money or what it is? The more you know you have, no one can take away that knowledge. Mm hmm. More morally, a be careful where you get the education from.

Erwin Szeto [01:08:33] The silly say of ten grand saved up some magical way from grandfather. I don’t know. It doesn’t matter. What do you tell them to do? Yeah, I’ll ask the same question for 200,000.

David Rahilly [01:08:43] And then a million. Yeah. And I’d be like, I really probably the same answer we get. We. Somebody asked us to talk of rates. I speak to an advisor, find a professional, or learn or take courses in how to do that. Mm hmm.

Erwin Szeto [01:08:59] What would you do? What would you do if you just had ten grand show up?

David Rahilly [01:09:02] But I do.

Erwin Szeto [01:09:02] So you care about it, though? I don’t like it when it’s just gifted money. Like what the government did. Yeah, I don’t think that. I don’t trust what people would do with it. That they really think it through versus free money.

David Rahilly [01:09:12] Yeah.

Erwin Szeto [01:09:13] They saved you harder and saved up ten grand. What would you do with it?

David Rahilly [01:09:17] Yeah. What would I do? What would I do other or what do I would, you know, what do I do with it? I would probably give me a $30,000 more wiggle room. My interactive brokerage account right now would are to be using it, but at least be there to give me that little wiggle room to avoid to pull over till these margin calls for done.

Erwin Szeto [01:09:40] So much nicer if we were American and we got five times rather than three times.

David Rahilly [01:09:44] Yeah, that’s true.

Erwin Szeto [01:09:46] Yeah, it’d be a lot more.

David Rahilly [01:09:47] To believe, for it’s just four times again. I have to force another course they took. It was here so I can get I got a couple of good things our kids like you know I’m. Don’t be cheap. That’s one thing they harped on. Do you get what you pay for? Like finding an agent copy cheap with the percentage you pay your real estate agent because they said even get an example that said 5% pay him 7% gas. Guess where their focus is going to be on you? Not the 5% people, but they have an interest to get you a higher the best price possible. Yeah. So that’s one thing I took away from that. I also got to one where it’s kind of sad what happens in Ontario, offering tenants money to move out when they’re not paying their rent. Yeah, because it’s cheaper that way, but I don’t think we heard that one. If you get a bad tenant, it’s cheaper just to pay her $2,000 a year by the end of the week. And there’s no damage because it’s cheaper going through all the jumping through all the hoops to get a better. Mm hmm. But the sad reality of that is there’s something wrong with the system where you’re rewarding people. They’re not paying you. But that is one the strategies you learn from there. Sometimes I can’t say whether I got nothing of the course it did cause things that Robert Cusack talks but didn’t have enough to have the confidence to get into it.

Erwin Szeto [01:11:10] Mm hmm. You mentioned you’re six years from retirement. What’s your investment going to look like going on here on air.

David Rahilly [01:11:17] And hopefully a lot better in the next few months?

Erwin Szeto [01:11:19] But nobody like strategically. What do you do.

David Rahilly [01:11:22] Strategically is I have to wait see my one rental property in one rental property in Peterborough. Is that going to sell in Bay or not? Or I’m going to add another year or two to lease pending if we bought it on the rent.

Erwin Szeto [01:11:37] Assume it does.

David Rahilly [01:11:39] Yeah.

Erwin Szeto [01:11:39] I may be silly not to.

David Rahilly [01:11:42] They would be. I’d be happy to do it. And but I think McGarity property I think in both cases they’re going to close their properties take my take where and guess what I do in the stock options trading or whatever do in software that’s a that’s going to be something I do for life. Mm hmm. Mm hmm. That’s really not a lot of time of your day is half an hour of your day until we get nervous. Then we’ll do so. Or what? I do silly things and overleverage, but yeah, to not.

Erwin Szeto [01:12:08] Overleverage, I’d love to see you ratchet down the leverage.

David Rahilly [01:12:11] The leverage that you’re down. The leverage. And guess what? Your right to build is stress. Ratchet up to sleep. Yeah. And Rochedale the time you’re in there. So.

Erwin Szeto [01:12:22] Did you ever take Lee’s court version of the course? Did you ever take. These were just like Hacker Academy Legal?

David Rahilly [01:12:27] Yeah. No, I haven’t. Okay. Yeah. Sounds like a good idea, though. Yeah.

Erwin Szeto [01:12:33] I stay on afterwards. I’ll tell you about it. But I can share with you before. Like his is. His trades are extremely conservative. Yeah. I mean, you still manage the 15% return cash on cash last year.

David Rahilly [01:12:47] Okay, that’s. Yeah.

Erwin Szeto [01:12:49] Right. Yeah. I often compare I like to compare what we do. Like if the stock tracking was real estate, this would be private lending in terms of because? Because it’s just as an analogy. That’s how I would do that. But this how I just think of it in my head because it’s because we focus on cash flow. So like bar none, never, never doubted, in my opinion, that owning a piece of real estate in your own name or in a corporation you own is the best investment. You make the most money that way.

David Rahilly [01:13:14] Right.

Erwin Szeto [01:13:15] But no different than private lending. People are willing to give up upside for cash flow.

David Rahilly [01:13:22] Right.

Erwin Szeto [01:13:23] Right. So that’s why that’s why I think if stock act is meant for cash flow, generating cash flow.

David Rahilly [01:13:27] Yeah. Again, like.

Erwin Szeto [01:13:28] Me generally being extremely conservative last year, 15% cash on cash. Now, based on the trades that we gave to our beginners last year. So, so I predict the future and I this is advice but that’s you couldn’t get more boring than his than his stuff.

David Rahilly [01:13:43] Well, boring is works and good with it. Awesome. So just for the record for say, suppose I’m looking at an early retirement, it would not have been great for me to walk. It would have to be double what I’d make of it, because that gives me the cushion. That means that a bad year I still got my equity income and oh, and I would be doing a little differently because they do have that pension at the end of the road. And I’m probably just taking a leave of absence here and they’re paying into my pension. Didn’t want that guarantee. And then yeah.

Erwin Szeto [01:14:17] Yeah. Your lifestyle sounds pretty good. Six months off at a time now.

David Rahilly [01:14:21] Every two years. Yes. Yeah, 50, 50%. So quite the first five years. For some reason or.

Erwin Szeto [01:14:28] Not, it’s not the easiest job.

David Rahilly [01:14:30] Offer. Yeah. Yeah, no it’s, it’s very it takes on like I bought, I was ready to about 2050, I was looking to do career. I was like, that’s how I got my personal training paperwork. And then my situation at work changed. But I found two grades in particular very draining. I’ve been doing 14 years’ service grades, 77.

Erwin Szeto [01:14:51] His training, it’s.

David Rahilly [01:14:51] I find him the most draining. Oh, yes. I mean, for anybody. Maybe. Maybe that’s just for me. Right? You have to find what works for you. Or some people ask you how you want it. High school, which I don’t find in high school, I go for I’ve been there six years. I joined the gig. I do. I’ll give you two pages for me with high school. Seven eight. If I got a rough bunch, I only see him once a day, not all day. So you got little bit of respite there and it was great. Seven, eight. You got him all your BS we got you get one semester because there are strategies in place. Just like any job, your strategy is in place out of managers I do fine once just do is get used to your strategy you’re done so with only two once a day per semester you don’t get used to that. I find the strategies work long enough. Yeah, it can be. And we should never have to do this. But it does have. You have to say there’s a door to somebody. It’s a lot easier to do in high school than any younger. When we went to school to say we went from elementary high school to discipline, picked up a little bit because the bigger your old age, no better. I also like the high school because it’s all subjects are my areas of expertize instead of teaching everything. Yeah, but that’s not my. It’s not for everybody either. I better be some kindergarten teacher, not one step foot in my classroom.

Erwin Szeto [01:16:07] So hopefully they can.

David Rahilly [01:16:09] But I would never want to. I’m off. I teach kindergarten. I’ve done it. I love it when I go in there once, like once a day or three different kindergarten classes in a day because the kids thought it was funny, needs to sing and answer them and all that. They thought it was great. It’d be hugs at Christmas, but the amount of prep and planning work is unreal. You kiss your evenings and weekends goodbye for most of the year. It’s a lot of prep work.

Erwin Szeto [01:16:34] And a lot of the side that the general public doesn’t see.

David Rahilly [01:16:37] Right. Yeah, they know they don’t. That’s yeah, that’s what I heard. The gig is when you get the backlash and that’s the most they see what they want to see. That’s a lot of jobs. It’s a lot of jobs. You look rosy from the outside looking in. I would say that like I’ll give another example. I think this should take the police officers. Oh, it must be nice. Just drive around, drive around, go to Tim Hortons. And I look about because I looked at I’ve been interviewed for a police officer or two before as a teacher and I look back now, I was like, Think about the people you deal with when you do have to. Yeah, I don’t. Because it a reason you see them in the cruisers in a Tim Hortons because they protect you from what they really have to see is like it’s steady job or it’s the same pace from start to finish. This stuff happens stuff happens it yeah that’s a that’s another example of. They see the peer to benefits. We don’t see it goes with that or they don’t see minimum requirements. So things that yeah. And so I look at it and it always looks different.

Erwin Szeto [01:17:40] So they were running out of time but so much again for doing this. In other words, you want to share with the listener a wisdom any lessons you’d like them to know.

David Rahilly [01:17:50] The first one, I think we know where this was going to be because I guess I hit it because I didn’t listen unless it was a kid either. Be careful, bargain and old and I know there’s going to be listeners out there going to do it anyways as these are universal. I thought I figured it because I had it with a seasonality scare. Stan is coming. Guess what? All the rules change. That’s one thing. And finding out there in that market, no matter what the predictable rules are, probability, probability rules, there’s nothing guaranteed. And we all found that out since November. Yeah. Be careful. Just stay on the mark. Don’t maximize your margin. I wouldn’t even go half the margin yet because if you get a 50% drop, like what we’ve seen in the three months, you’re 50% margin, you’re now getting called. So and my example is I’m probably going to wind up being a safe, easy numbers to work with. If I got $100,000 to work with, I’m using a 120,000, not 300 or 4000. That’s so a very safe double. Or if I had $50,000 my own to play with, I’m maybe using 60,000 to be safe. Yeah, that’s perfect because it’s a big loss, I guess learned right now. And I still remember you were at the first date. Of course I remember you being there. I remember one guy came up; he wasn’t doing any training. Right. What do you say? What do you say? A business. Business is going to kick your ass. You. I don’t remember that guy. It’s been a while. You. He came up there. Yeah. He wasn’t even in Detroit. He just talked to business again. If you’re if you’re have, your visit is going to. He is going to beat you down, is going to kick your ass. You used those words. And guess what? That’s your that. Now what dealer just beat? No, that’s going to happen. Move on. Mm hmm.

Erwin Szeto [01:19:46] Learn from him. Move on.

David Rahilly [01:19:47] Absolutely. Definitely. If you’re going to do either real estate investing or trading, as I do research, get the tools first tools as and get proper teachings in it. I’m not giving advice for who to go to. I just give you my experience with research. The companies are the people that are delivering these things because they’re not all the same. As very easy to do right now. Like you, simple Google search. Put a Google search on a company. What’s your rating? Make sure is a lot of rating. So you see some of the 4.5 out of five rating. There’s only eight ratings. That’s not good enough. That’s not really. Yeah. Yeah. Get the ratings are hard and see what people are saying. What’s the consistency? That’s actually how I went with rock star Real Estate. Sign up now. Can you buy me till tomorrow? After me? Went home, did a Google search and at 4.82 five 400 ratings. Okay that’s tell them. So do that and do your back to your and don’t be pressured into buying today. If one of these people teaching our group’s teaching. If they can’t wait. Until give you time to look into them. Was that say about the product? But they’re confident in their product. And whether it’s Erwin, whether it’s rock star real estate, for example, Robert Kiyosaki. At their cost in their product, they will give you the time to go look into it because they’ll say, here’s a key thing, here’s a discount if you sign up now. Ask him by 24 hours. There’s no reason they can’t give you that to have that confidence in their company. And they’re that good. That baby, that voice I’ve taught my head from my experience.

Erwin Szeto [01:21:42] And David, I asked you this before we were recording the thoughts on Bitcoin.

David Rahilly [01:21:47] On the what Bitcoin? Bitcoin, I’m very new to it. And recently went to a seminar by Dan Foss who’s big on it. Greg. Greg was, it was up. Greg Foss Oh, great. Great story. So very it’s a little over the top is presentation that’s fine that people who have passion and you see my post I start anybody who see my poster stock advert out of Europe it is pretty cool already so that will tell you something there. But it is more of a passion and yeah but look at the what’s the meat potatoes is there actually information on there. And he swears by bitcoin when it was worth 60,000 DA he swore he swears up now and it’s going to hit 2,000,001 day and he brings up. Fiat currency. The fiat currency is inflation. You need something sort of tangible. There’s already two countries that are using Bitcoin as their official currency. That’s because they say your dollar bills had dropped. That’s what did we get into in the last three months. They have a drop. So that because bitcoin.

Erwin Szeto [01:23:01] Is similar has not like when it was a 60,000. Was it the summer or is it November?

David Rahilly [01:23:06] It was just before November was 60,000.

Erwin Szeto [01:23:10] Right. So then it’s halved since.

David Rahilly [01:23:12] Yeah. So then I went with. Yeah. The company I’m currently dealing with has a thicker name is Mara, which is short for marathon. And again, a bitcoin is another funny. Bitcoin is funny is which company is mining? This is the one to go. Mm hmm. Because it says new.

Erwin Szeto [01:23:31] Oh, yeah, that’s all.

David Rahilly [01:23:33] Yeah, that’s.

Erwin Szeto [01:23:34] See where this goes?

David Rahilly [01:23:36] See where this goes? Yeah, exactly. So I don’t have yeah, I’m still got a lot of learning to do.

Erwin Szeto [01:23:43] Yeah. Son, is everybody at the door?

David Rahilly [01:23:47] So it’s fun. Make sure you ask a very fast response on our Prime Minister.

Erwin Szeto [01:23:54] No, no, I didn’t know anything. David, thanks again for doing this.

David Rahilly [01:24:00] On any time. It was pleasure.

Erwin Szeto [01:24:03] Yeah. Pleasure. Hopefully stocks rally, but I’ve given up hoping on anything. I just play the hand I’m dealt.

David Rahilly [01:24:08] That’s all I’m doing right now. And what I’ll believe. What I see is very bad right now.

Erwin Szeto [01:24:13] And if we dip, you know, that’s the time to buy.

David Rahilly [01:24:16] Yeah, exactly.

Erwin Szeto [01:24:17] Cause I’m trying to scrape together some money to buy some more Bitcoin myself, so.

David Rahilly [01:24:21] Okay.

Erwin Szeto [01:24:22] All right. Thanks very much, David. Before you go, we really had time in the interview, but I wanted to ask David if he’d share some of the lessons during this most recent downturn and stocks in cryptocurrencies for brevity and reduced use of technical terms. I’ve had to paraphrase, but before I get into that. For context, David is a student of the beta version of Hacker Academy, which predates the current version that we deliver in partnership with bestselling author Lee Lau. Hence, David follows the trades of the gentleman who delivered the beta version versus me. My style is more to follow Lee. Hence our strategies will differ. So David’s lessons first be light on margin and using margins like borrowing to invest. As we all know, using leveraged funds is like a double edged sword. If the returns go up, it goes up higher. If you’re leveraged and when they go down, they go down faster because you’re leveraged. Second, don’t trust the big players out there who will move the market and look to prey on small retail investors like us. Sell it only on stock that you believe in at a price you want to own it, and if you can afford to own it. Third work slowly during volatile times in a falling market size, the risk of each trade based on the risk of the underlying stock. For example, the risk profile is not the same of the company Apple versus Elon Musk’s Tesla. You get paid more premium for more risk, but exposure to risk is much greater should the stock fall. And finally, not deploying all capital at once on a single stock. I hope that helps me. Before you go, if you’re interested in learning more about an alternative means of cash flowing like hundreds of other real estate investors have already and sign up for my newsletter and you’ll learn of the next free demonstration webinar I’ll be delivering on the subject of stock hacking. It’s a much improved demonstration over the one that I gave to my cousin Chubby at Thanksgiving dinner in 2019. He now averages 1% cash flow per week, and he’s a musician by trade. As a real estate investor myself. I got into real estate for the cash flow, but with the rising costs to operate a rental business, it’s just not the same as it was 5 to 10 years ago when I started. Never forget the cash flow reduces your risk. The more you have, the more lumps you can absorb. And if you have none or limited cash flow, you’re going to be paying out of your pocket like I did on a recent basement flood at my student rental in St Catherine’s, Ontario. If you’re interested in learning more, register for free for my newsletter at WDW dot Truth About Real Estate Investing Dossier Into your name. Email address on the right side will include in the newsletter when we announce our next Free Stock Hacker demonstration. Find out for yourself what so many real estate investors are doing to diversify and increase our cash flow. And if you can’t tell, I love teaching and sharing the stuff.

David Rahilly [01:27:13] Mm hmm.

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