Evictions, VTBs, Bed Bugs And More With Quentin D’souza

Evictions, VTBs, Bed Bugs And More With Quentin D’souza
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Table of Contents - Evictions, VTBs, Bed Bugs And More With Quentin D’souza

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George El Masri [00:00:00] Welcome and thanks for tuning in today, I interviewed my former coach, Quentin D'Souza. Quentin was a teacher at one point turned into an educator. He's the founder of Durham III. I've been a member for a long time. And on this episode, we touched on a lot of things that I think are really important at this time. We talked about what it's like to own multiple units right now with nonpaying tenants, with the eviction process. We talked about bedbugs. We talked about fire inspections, we talked about Vibs. We covered all sorts of stuff in this episode. And I truly think that for those of you that follow Quentin, he's always got something of value to provide to us. I'm always learning. I took a bunch of notes, too. So you are welcome to listen to the entire episode and share it with your friends and family. And always I always ask you to leave a review, if possible, because that's super helpful for us at the Well-off podcast team. So I encourage you to do that on the Apple podcast platform. And finally, if you're looking for some free reports on real estate investing, there is a roadmap to real estate investing, which you can download by going to Wallachia for its report. And there's a whole slew of other free freebies there. So make sure to check it out. And if you want to connect with me, my information is on the website. Too well-off dossie. Enjoy the episode and let me know what you think. Welcome to the podcast, where the goal is to motivate and inspire and share success principles, and for the second time, I have my former coach, Quentin D'Souza. Quentin is a multiple award winning real estate investor in the Durham region and a certified or sorry, he is an Ontario certified teacher and holds two university degrees, which includes a master's in education. If you haven't heard our first episode, I believe it was maybe the second or third episode that I ever recorded. So you guys can go back and check that out. He has a company called Apple Rich Holmes. He uses the Buy Fix Refinance strategy and owns our sorry, long term rental properties in Ontario. So, Quentin, as always, it's a pleasure to have you on the show. I look forward to our conversations and picking your brain again.

Quentin D'Souza [00:02:08] That's that's great, thanks for that introduction and and actually I've expanded so like I my big fix refinance strategy, I do not just on, like, smaller homes. I actually focus on apartment buildings, but use the same strategy. Right. And I actually have about 34 million in assets under management across southern Ontario and also in the US and Florida.

George El Masri [00:02:33] When did that happen, by the way? When did you start investing in Florida?

Quentin D'Souza [00:02:37] Probably about four years ago, three or four years ago. And I've been working on refinancing my portfolio. And I finally got approval like about two days ago. And the problem is I have to go to Buffalo in order to sign with the notary there and I can't go. So, you know, that just means I've got to figure out a more creative solution. So I'm working with I talked to a couple of buddies and you know, how they've been able to do it. So it's possible that I could do a posta Larry Notari, where you have to notary's one from each country and then I could sign perhaps with a lawyer here. So I'm working on it. I'm being creative. Right. I always think outside the box. So just trying to push push different things in different directions, right? Yeah.

George El Masri [00:03:28] And I don't know if this would be helpful to you, but I do know a lawyer here in Ontario that's actually also licensed for Illinois. So he he's got he might be able to help you out there.

Quentin D'Souza [00:03:40] Yeah, that would be awesome thing. Shooting my way after the podcast. That could work.

George El Masri [00:03:45] There you go. OK, perfect. So usually I start by asking you about your childhood, but because it's your second time around, you're probably going to repeat the same thing. So we'll just dove right into it. And I mean, I just wanted to ask you, I think that to start what are you seeing now? I know you own a lot of real estate. You have you manage a lot of units. What's your take on the market on the eviction ban on all of that stuff right now?

Quentin D'Souza [00:04:13] Yeah, so, I mean, the market is on fire. If you're not in a condo in downtown Toronto or downtown Vancouver, you're definitely the market's on fire. I think, you know, we have one hundred and thirty four units right now under management. And I have a team that does the management piece for me in the properties that aren't local to me are managed by a third party management company that we in turn manage. So we never really give up that that piece. The market, I would say, is, well, just everywhere outside of the core of the city has been extremely hot. You've seen populations move outwards at a growth rate that's, you know, quite extraordinary. You know, we've seen two percent population move out to the Durham region, for example, in the last year, which has been incredible for multiple offers. We've seen duplexes in Oshawa go for almost a million dollars, if you can believe it, like 975, 980. I just like the numbers are are crazy and they're coming from, you know, cash offers from people moving from Toronto. Right. And, you know, there I you know, they have funds that they've, you know, built up. And, you know, something like a purchase for million is nothing for the quality and the size of the property that they're getting in the Durham region. So we're seeing like 50 offers on like bungalows and things like that. Yeah, just craziness. Yeah.

George El Masri [00:05:50] So my wife, she's also a realtor and she was actually working with a couple that was looking to buy in Durham, and I think she did like fifteen offers for them because it was a bidding war for every single property they went to. And from the time they started to the time they bought a home, which was maybe a three or four month process, the same homes that they were looking at earlier on the same street had gone up like seventy thousand dollars. It was pretty insane. And just three months or so. And these are we're talking like five to six hundred thousand dollar homes. So it's a huge increase in just three months.

Quentin D'Souza [00:06:24] Yeah, I can see that for sure. And what's nice, too, is, though, that there's comparables that are coming up. So the appraisals are coming in pretty well. Like, that's that's been good on the appraisal side because that's always a challenge when it comes to to when you're purchasing a property like that. I think, like in the short term, we're definitely, you know, still in this market. And I think, you know, as long as we're still in, like the position that we're in with, we're working remotely and what's happening, I think we're going to see it even hotter if it's even possible. Spring market when it comes to housing in southern Ontario, outside of the core of of Toronto, like we're down. Definitely seeing that and there's just no product, right, there's just not medium term wise, I would I would caution people on the medium term because there's going to be a you know, once things turn around again, we're going to have office spaces that open up again in the core and you're going to have people that are going to be coming back into the city. So in the medium term, I would say watch out there probably is going to be some changes in less competition, you know, because people will be coming back and then but in the long term, I still am very bullish on the economy, the housing market. You know, people were like all crazy in 2017 when, you know, the government put all these, you know, taxes and stress tests and things like that. And, you know, and it caused it was a legislative change that caused the decrease in prices. Right. And I was thinking, wow, this is actually great because it's an opportunity. So I was you know, I kept buying continue to buy real estate and and now it's come back and it's come back with a vengeance. And it's, you know, the prices have come up. So, I mean, if you were somebody who was interested in purchasing property, as long as you have a longer term point of view, I suggest that you you know, you always buy in and hold right and buy and wait. Don't wait to buy. Yeah. I think that's a mistake that a lot of people make. I've been on, you know, Facebook groups and things like that with people who are waiting for the bubble bursts. Yeah, right. And they've been waiting for 20 years. It's like, is it time you had the time and it's like, but you're going to be waiting and like if you're still going to be waiting. So good luck with that.

George El Masri [00:09:07] Yeah, for sure. And so much of our economy here in Ontario is based on immigration. Obviously, covid has had an impact on those numbers. Do you have any stats with regards to the immigration numbers for 2020 and projections moving forward, maybe new projections with with all the things that have been going on?

Quentin D'Souza [00:09:25] Yeah, I mean, like 2020 has been a slow, like a slow immigration year. There's still been immigration, but it it's been a trickle compared to what it would have been without, you know, everything that's been happening with the pandemic. So, you know, that has actually been quite slow. The difference is that the product isn't there. Like, there's just not enough product. Right. And as we go out into the future, we know that the Liberal government has planned for additional immigration to be coming into the country in two thousand and twenty one twenty twenty two. And I believe that number is something around four hundred thousand, something like that. And a majority of those people are going to stay in the greater Toronto area and typically they're going to rent. So, I mean, I do see that a lot of those condo prices in downtown Toronto coming back, you know, price wise with with rents, I think it's going to take some time to get there. But we're going to have that demand and it's going to ripple out right. We're going to see rents continue to increase and house prices continue to increase. I think people tend to forget that house prices are also based on construction costs and construction costs have gone through the roof. That's true through the roof. I've had friends who, you know, had lumber packages that they've purchased for thirty thousand dollars. They were quoted for thirty thousand dollars for lumber on the project, came back to them because they couldn't hold on to the the the price of the quote. It's now forty five thousand dollars for the same. Yeah. Right. So if you're telling me that that and it's across the board, it's not just lumber, it's like kitchen Renaults, it's labor, it's everything. All of these prices have come up. So what do you think is going to happen to that? The house house prices right there? You know, the other thing, too, is sometimes people don't understand that the cost of building sometimes is less than the cost of what you're buying it for anyways. You know, if you're looking for a lot in in Whitby, for example, you know, you may just buy the land for five hundred thousand dollars, but you can't build like you and you go and you build a house. Let's say it's two thousand square feet and what are you building? You know, you probably end up it'll end up costing you one point one million. Well, the house down the street is still nine hundred and seventy five thousand nine hundred thousand or whatever it is, it's still a good deal, right? Yeah. Like, you know, it maybe doesn't. Have the you know, the depreciation in the time that's associated with it, but like to build that, that cost is going to be, you know, a lot higher than what it would be to to to buy it still. And I don't think people understand that clearly enough. Right. The you know, people don't separate the land cost from the building cost. And, you know, that's that's an important part of the calculation when you're thinking about it for sure.

George El Masri [00:12:34] Yeah. And I did have a couple of questions that I wanted to go over with you just because I'm curious to hear your perspective on this. So with eviction band right now. So right now we're at the end of January, there's still an eviction ban. What are you doing with your nonpaying tenants or the tenants that are causing problems? How are you addressing those issues?

Quentin D'Souza [00:12:56] Well, where we're first of all, we are trying to work out payment plans. So that is what we try to do. It is something that I think that everybody does, you know, as a housing provider. I mean, I provide good, clean, safe housing to people. You know, whether or not they take care of that is a different story. But, you know, my intention is to always do that. And what I find is that there ninety seven percent of tenants are great people. They do exactly what they say they're going they're doing. They're good people. There is a three percent of the population that, you know, is a pain. Right. And the ninety seven percent of the population is going to be some like people that we can work with who come up with payment plans, will figure out make it work. You know, it's OK. We can we can write that all out and we want to do that. But the three percent that are not are taking advantage of the situation to an extreme, actually. Yeah.

George El Masri [00:13:59] I'm going to share my perspective. You can tell me yours. I feel like. Well, for one, a lot of landlords are a little bit passive when it comes to this eviction ban and whatnot. We're all kind of just waiting to see what happens. But at the same time, I'm not really sure what we can do. What are your thoughts like? What I know we can call the employees and all that, but that people have done that and it doesn't seem to be too effective. I'm just curious to know what's your perspective? How do we create change here so that we no longer have to go through this? Because it is putting a lot of pressure on on small business owners or small landlords, I should say.

Quentin D'Souza [00:14:38] Well, I mean, there are a few groups that are out there that I think are good to kind of band together and help, you know, connect to landlords together. There's the small Ontario Landlords Association and there's Ontario Landlords Watch. And I think they're they both kind of approach it differently. But I think that they're they're good organizations, full of good people that I think are trying to make a difference. So I think joining those organizations are a good thing. I think definitely you need to call your MP and call the ombudsman of Ontario. Those are two two people that you can call to help to effect change. The more people that actually actually the thing is, is that people will complain, but they won't do anything. So unless you actually call and do those things, email, you know, get involved, talk to the media, then there won't be any change. So I think that that's part of the process, that if you really do feel that there is a problem, then you you should be out there talking to other people. The other thing is, is that, you know, this eviction band, that's fine. OK, I'm OK with, you know, during a lockdown and having an eviction ban. But there's absolutely no reason why we can't have video hearings continue in Ontario. There's no reason why it should take six to eight months to to have hearings in Ontario. There's no reason why once you apply for your you know, your L one or two that you can't get a hearing date. They haven't been giving hearing dates since before Christmas. You should at least have a hearing date from your it's kind of like somebody being in jail and not being, you know, told when you're going to be having a hearing. It's ridiculous. You know, I mean, I'm in poverty, jail because of some because of the government decides that they think with their infinite wisdom that they're, you know, that they're doing the right thing. I understand what the right thing is. I'm not a heartless person. You know, I work with all my tenants. But there are problem tenants that are doing problem things not just to, you know, like for me, they're also doing it to the other tenants in the same building. You know, I have I have a tenant that a cancer patient above and the tenant below is smoking in the unit. And I've given an end five. I can't do anything to influence them, to change it. And I can't even get a hearing from to to help the other tenant. Now they're doing other things, too, that are problematic, including nonpayment. But like that's an example of an issue that's happening with that particular situation that's, you know, tenant that's hurting and harming other tenants. And you can't, you know, like the media says, that there's emergency hearings and things like that. It doesn't happen in the last six months. Oh, look at how many actual emergency hearings have occurred. It's like one or two. Like, it's ridiculous the number compared to all the hearing that's out there. Right. Like, just ridiculous. Yeah. You know, the numbers don't make any sense. And, you know, they're harming this is this is like, you know, who is going to be affected the most by this? Honestly, I am I'm not going to be affected the most. The person who's going to be affected the most is the person has one unit or like, you know, or two properties, and they can not survive nonpayment for ten months or twelve months. Yeah, they are going to go under.

George El Masri [00:18:25] I just want to touch on something you mentioned, which was payment plans with your tenants. Can you just briefly walk us through what that process looks like for you? How do you approach that situation? How does it work and how do you make sure that you don't set a precedent for the new rent if you if you're reducing it or when?

Quentin D'Souza [00:18:43] I know. So a payment plan doesn't affect what the the the like established rent is. What you're doing is you're effectively working out a plan to get them caught up. And the way that that we work out a payment plan is there is a government issued form that you can actually get from the landlord tenant board site. That is the template for coming up with a payment plan. What we'll do is we'll look at what is owed and we'll work out a six month payment plan to get them caught up so that they get caught up to whatever the amount of of rent that is owed. That's what we're trying to do, especially if they're a good tenant that's working with us and they have no other issues. They're not causing problems with the other other tenants or harming other people or things like that. We want to work with them. So we'll use that form. We'll come up with a six month payment plan to get them caught up and. We'll ask them to follow through on the on the payment plan, we will not we will not stop the process of going through and for ones, that sort of thing, until they've actually caught up, because we want to ensure that we're following through the process. OK, the payment plan is not to be done just by itself. You need to follow through with the process because we have no idea when this government will actually get their act together and actually have people, you know, go through the system at a pace that actually is make sense for a first world country instead of more like a third world country. So I'm getting that again. Get another topic.

George El Masri [00:20:23] OK, but on that note, so what kind of on the note, but with your with your multiunit your your buildings, are you with regards to your inspections like fire inspections. Are you, how are you doing those are you visiting yourself. Do you have your team go over there. How do you ensure that they're there. All the smoke detectors are still working, all of that. What's your procedure?

Quentin D'Souza [00:20:50] Well, we can't do that during the lockdown. So that's not something that we'll do during the lockdown. And what we'll do is we'll we'll issue our our notice of, like notice of entry. And usually we'll just converse with the tenants first to see whether we can actually come up with the date in time. If not, we will. And this is over email. So we have a documented process. We also have a document that they have agreed to electronic communication. So it's already part of our lease process. And we will have, you know, issued a time to come out. We'll go and inspect the the property and get the make sure that the property is inspected and the fire alarms are working, that sort of thing. We have had situations where we have had tenants that have refused entry. We cannot test the fire alarms and we cannot inspect the unit. I'm OK with not inspecting the unit for now until a later date, but I'm not OK with not testing the fire alarms. That is really a huge safety issue. So what we've ended up doing in some situations is we've called the fire department and let them know that this is what's happening. Yeah, and in some cases, the fire department will call the tenant if we have the information and let them know that it needs to be inspected. Now, it always depends on the like. I can't say that that that that's you know, that's going to be the same everywhere. But I mean, I've found that the fire department have been very helpful. You know, people for the most part, like they've helped you go through the you know, and help you with that, because they understand that it's it's an issue not for the tenant themselves, but for the whole building. Yes. And that's that's really the the issue. It is, of course, know a risk to the tenant. But, you know, there are some situations where where that's that's occurred. And so that's how we still we still continue to do fire inspections and but not during the lockdown, during the the you know, that other time that we had during the pandemic. So, you know, because there are things that, you know, we just want to make sure that that that are safe. Right. And we have to ensure the safety of the other tenants in the in the building as well. We want to make sure that that's not compromised by one person who's, you know, for whatever reason, you know, problematic. And usually they're hiding something else. Yeah. It's never really just the fire alarm. It's usually they're hiding some other issues. So and that's that's my experience anyway. So.

George El Masri [00:23:44] OK, yeah. So just to recap what you're saying, basically, from my understanding during this lockdown, so again, we're at the end of January here, you're not permitted to enter somebody's unit to inspect smoke detectors and whatnot, but you may reach out if it's kind of like an emergency situation, reach out and give notice to the tenant. If they agree to it, then you should be OK. You're saying that you do

Quentin D'Souza [00:24:11] not during the lockdown, though?

George El Masri [00:24:13] Not during the lockdown. Yeah. And how how do you know that you're not supposed to do that during the lockdown? Because it is kind of like an emergency service in some ways.

Quentin D'Souza [00:24:23] I mean, it's only a 30 day window. So I mean, I think that, like, if I'm if it's February 9th, if we do it if we start doing the inspections on February 10th, then that would be OK. OK, you know, I'm. Just not doing it at this time, but it's not that I'm deferring it for like six months or so. Right, right. Right. And it's just that I'm deferring you're asking me at this time and I'm telling you, in a week from now or two weeks from now, after the you know, we've we've we have free movement, then I'll you know, we'll be able to to to go back to what we were doing there. Yes.

George El Masri [00:25:02] OK. And just to kind of clarify, do you have, like, your property management or do all that for you or are you doing it yourself?

Quentin D'Souza [00:25:10] No, I can't do that. I have my my team that works together to do those inspections and they are going in to do those. And that inspection, that's part of the the role in their position. Right. And, you know, for the most part, there's there's no issue. You know, everybody's taking proper precautions or wearing PPE. You know, we have on our buildings, we've got the notices posted about wearing proper protection. When you're going into the into the buildings, like we're doing what we're supposed to be doing as far as, you know, as best we can do, you know, cleaning the common areas like just, you know, doing what we're supposed to do. I just wish the government would do what they're supposed to do because they apparently have the great at making rules, but they can't seem to get their own act together. Yeah, but whatever.

George El Masri [00:26:06] OK, fair enough. So obviously you're still looking to buy at this time? I don't I don't think I've ever spoken to you where you said you're not buying the what are you doing during your purchases now to protect yourself from inheriting nonpaying tenants?

Quentin D'Souza [00:26:21] It's a risk that I always take. I can't I can't do that. It's just not possible. You know, I understand that that's going to be an issue every time with me that we buy a building. It's part of the process that I anticipate it's going to happen because I understand that the Ontario government can't get their act together and, you know, the landlord tenant board doesn't work. So I have to anticipate that as part of my my losses as a as a business owner. Right. I can't do anything differently unless unless some miracle of miracles happens and, you know, they suddenly get their act together, then, you know, but this has been a common problem for four years. It's not something that just happened during the pandemic. It's just gotten worse. It's but the problem has always been there. They have they have no clue how to run a hearing system for a first world country. I got to tell you, like go to Florida. And I do like, you know, it takes like less than 30 days to go through the process, you know, and, you know, the population is mostly Canadians anyway. So I I'm seeming to like going down there more. Yeah. So the landlord tenant board perspective anyways.

George El Masri [00:27:40] Yeah. So, Quinten, I'm just curious, have you ever thought about, like, when you're purchasing, let's say, a multi unit building or any building really for to ask the current owner to provide proof of payment of rent just like the banks do, you know, like maybe showing bank statements or if they have property management software that's tracking any prior authorized debit stuff like that, can you ask for that or you don't do that.

Quentin D'Souza [00:28:05] You can ask for whatever you want, but when you have fifty people putting offers in or twenty people putting these offers in, the person's going to look at your offer even if you you offering more and probably just cross it off because they don't they don't even want to bother with doing that. Sure. So you can put whatever you want or you know this as well as I do. You can put whatever you want in an agreement. Doesn't mean that the person's going to accept it. Sure. And, you know, to protect yourself, I would suggest having a good reserve fund, putting aside like ten thousand dollars per unit as a reserve fund just to have in case you run into situations like this, because if you don't, you're going to open yourself up to problems with, you know, not having enough funds and having to do a cash call. And nobody wants a cash call. That's so, you know, my my specialty is, you know, working and taking over buildings, repositioning them and refinancing them just like I did for smaller properties. It just takes me longer. But the value increase is higher. So that's why I focus on apartment buildings now more than single family homes. And also, like, you know, when I was doing those one to four unit properties and getting to highest and best use, like adding a secondary suite or adding like a third suite, you know, like the idea behind it is is sound. I think the. Problem right now is that there are so many people doing the same thing that it's hard to make the numbers work because the purchase price is going up so fast in all markets. So the way that I counter that is I've gone into bigger buildings where there are less people, but still multiple offers. So in the past, when I was buying buildings, I would have like myself and maybe one other person. Let's say it's a smaller building. Let's say it's like a two million dollar purchase. I would maybe have myself and one other person kind of competing. Now you have like 20 people competing, particularly if they put it on the MLS. Right. So my focus has always been off market. So I you know, I've got a 16 unit under contract right now, and I would be looking for partners on that. And that is a totally off market property, right? It's one hundred and fifty K a door. When I reposition the building, it's going to be worth probably about, you know, two hundred and twenty five a door. I would say just overall by increasing the rents and all the renovations and things that I need to do to the property, it'll take me three to five years. It's not the same as the single like, you know, the smaller units, those I could do like sometimes in months. Yeah, right. Whereas this is taking me years, but the upside is higher. Right. So instead of adding two hundred thousand dollars or three hundred thousand dollars in value, I'm adding one point five million dollars in value. So you know, the upside is, is different, but the process is the same. So there's there is that competition. And even in the bigger buildings, funny enough, like like even if you're looking at the, you know, the ten million dollars or 20 million dollar buildings. Right. You're still getting competition. But, you know, instead of having one offer that took a long time, you're getting five offers at the same time.

George El Masri [00:31:32] Yeah, I know. It's crazy. Mark Loffler, our our colleague, he works in my office. You obviously know him. I'm just explaining to the listeners he put up the building. I'm sure you saw in Hamilton. I forget if it was twenty seven units or something like that. But he was saying that they had almost 30 offers on on the building, which is insane. I had that that high of a price tag to think. I don't know if we've ever seen that before in our and our history and our Canadian real estate history.

Quentin D'Souza [00:32:01] Yeah. It's pretty insane. Yeah I know Lola's a good friend of mine and you know, and you've seen it everywhere and he knows I made an offer on the portfolio of properties. He knows as well as his partners know that it makes more sense to sell it on the MLS than to sell it to me, you know, and and that's the that's the way it is right now. Right. But the key is that I know Loffler and I know like a dozen other people like Loffler and, you know, my my network runs deep and wide. And that's how I continue to to be able to connect with people and find opportunities. Right. And, you know, it's it's all about reputation when it comes to finding off market deals and getting deals done. And I've always been a person to do what I say I'm going to do. And, you know, some people may or may not believe believe that they talk bad about you, me, you know. But the thing is that I've worked with people for a long enough time so that they know that I I've been doing what I say I do. And and that really is the key in this business. It's about relationships. Right. You know, when we work together, you know, your goal was to buy multiunit building. Did you buy a multiunit building?

George El Masri [00:33:22] I bought two.

Quentin D'Souza [00:33:24] There you go. So you do what you say. That's and that's you know, that's the thing with me, right? I'm I'm a person that the you know, my it's very important to me to to to have that honor. Right. To to be a man of my word. Right. And I want to pass that on to my my my boys too. I've got a thirteen and sixteen year old and you know, I want them to be the same. You know, you I will do like I will go to, you know, you know, cross mountains, go, you know, go across deserts to make sure that I follow what I said I was going to do. Right. Sure.

George El Masri [00:34:02] So yeah, you helped me. You honestly helped me get to the next level. And it would have taken me probably five to ten years maybe to do it on my own without without the help of a coach to to develop all the things. And it's so important to set the groundwork for for your future as a coach can help you do that, like incorporating the marketing strategy. There's all sorts of stuff that happened while we were working together, which really helped. Like I said, take me to the next level. So I appreciate that. I wanted to ask you about VTB. Have you had any success with those in the last few months? Obviously, these are a little bit more challenging when the supply is really low and it's a seller's market. They have a massive advantage. But what what is what's been your experience with VTP in the last couple of months?

Quentin D'Souza [00:34:55] I mean, I've done first mortgage TB's on a few buildings now, and the last one that I did was in March 2020, and that was the first mortgage, VTB. So, I mean, there are still VTB is available. It depends. It always depends on the person who's selling the building and what their goals are, because if their goal is to defer their capital gains over a number of years, the VTB plays an important role in their purchase or their sale process. Right. So they'll take the, you know, a big chunk of their money at the beginning and then they'll prepare for that. You know, that VTB over the next couple of years, maybe it's three years, maybe it's five years, because then when they get that final amount back, then they'll get taxed on that that amount. So our VTB is available. Yes, they are. It always depends on the person that you're dealing with and and how you negotiate. Right. You know, see how you can make it a Win-Win for for everybody. Like for you. Like having a VTB means not having to go through banks and lenders who, you know, literally like they are. They want to give you money. So the banks and CMHC and like other institutions, they they they need to give you money. That's what because interest rates are so low, they're out there wanting to do that. But the problem is, is that their criteria means that people have to bring a lot more to the table, you know, instead of getting like 80 percent loan to value or like on a building 75 percent or 70 percent loan to value, you may get sixty five percent loan to value a building or a house. That's a duplex. You may get a 70 percent loan to value versus an 80 percent loan to value. Right. So, like, there's there's challenges that that come to that in a VTB can help because then you could get an 80 percent loan to value with a strong, you know, person who is an owner who wants to defer taxes. So you you know, you just got to figure out what's going to make sense. Maybe it's a second, like a secondary VTB So you put, like, you know, first mortgage at sixty five percent and then you get a 10 percent or 15 percent VTB that comes from the like. There's lots of ways to do it. You have to think creatively. And that's something that I encourage people to do. And, you know, for anybody who wants to to, you know, just be creative of your approach to things. And I think you can come up with different solutions. You know, that's what you know, that's what I like doing. And by the way, I just want to let people know I'm not offering coaching anymore.

George El Masri [00:37:41] Oh, yeah, OK. Yeah, yeah. I thought I heard you say that at some point.

Quentin D'Souza [00:37:46] Yeah, I'm just nodded. I, you know, it takes up a lot of my time and I've really redoubled my efforts in providing like high quality content for my members and through our our our video learning platform, which is education area I and I've had members from across Canada. And what I ended up doing is that I've taken the like all those courses that I've had and I've slowly been moving them over into for all the members to access. Yeah. And I've added monthly Q&A calls for all members to so that I can help people in a more general sense. Yeah. As well as having some networking opportunities in there. And then I take in my like I have a quarterly plan in a weekly planner and I've put that all together in a book and I've made the book available to two people. So, you know, I've created the action takers, real estate investing planner, you know, I have in it I'm like the first half of the book is explaining how to use the second half of the book, which is goal setting and planning for real estate investors. So every quarter you're going to set your focuses that you're working on, results that you need and, you know, consistent growth in specific areas, finding properties, funding properties, financing properties, doing quarterly challenge, setting up systems and processes. It's all in the quarterly plan. And then in the weekly plan, you know, you're basically setting your week up on the Sunday night or Monday morning in order to ensure that you get your real estate goals focused on. This is specific. For real estate investors priorities for the week, delegating tasks, you know, finding funding, financing, delegating centers of influence, all of that in the weekly plans as well. And that's something that I had my coaching clients do as well as they, you know, complete the quarterly plan, complete a weekly plan, and let me know what you know, what they would do at the beginning of the week as an accountability piece for the the rest of the week when it came to, you know, focusing on their real estate goals. And and I've put that together in that book now and kind of made it available to everybody. So that's been that's been a fun process to to make that available. And I think books for me are an easy way to affect a lot of people by making it available. I've found that, you know, for me and this is just from my prior experience, giving things away for free for people. People don't appreciate it. I know it's it sounds counterintuitive, but you don't have the same effect on somebody who pays for something, takes the time, reads it, connects with it, and then, you know, implements it. Whereas I find that a lot of things that people don't pay for, they they'll download it, keep it, and they'll never even use it. And so that's something that I've learned over the years. And it's why I charge people a membership fee, because the other thing is, I'm not a realtor or mortgage broker. Like, I don't I don't drive any additional income from that. I don't even offer coaching. So if I don't offer any of those things, like the way for people to to give back is to become a member and then they get access to all the materials. And, you know, that way they you know, they've paid something for it. So they should take the time to be able to go in there and implement from it. Right. And that's what the Q&A calls and, you know, the monthly meetings do is to help people to do that.

George El Masri [00:41:50] Definitely. Yeah, I know it's been really helpful for me as well. I did, actually. I want to ask you, are you good for your time or do you have to go now?

Quentin D'Souza [00:41:59] No, I'm good. I'm OK. You let me know.

George El Masri [00:42:01] I just have a couple more questions for you. One was earlier you were touching on the vibes and how it allows the owner to defer their taxes or a portion of it. Just to clarify that, if we were to give an example of that, let's say it was one hundred thousand dollars property and they did a 20 percent VTB, does that mean because I'm also trying to really understand it so I can explain it better, but does that mean that they would basically pay a capital gain on the 80000 dollars that they are selling their portion of the asset and the 20000 20 percent VTB will be deferred to when the VTB expires? Is that correct?

Quentin D'Souza [00:42:40] That that's correct. But it's you have to do it within a set amount of time. So it's like I believe that it's like between three and five years. You should talk to an accountant just to confirm. I typically have been doing my VCDs all for three years and three years, gives me enough time to reposition the property in order to put financing on it. That so I'll give you an example with the property that we that we did in March. So I've got a first mortgage, VTB. It's an 11 unit. I think we bought for like one point two million, something like that. And we've got an eighty percent or seventy five percent VTB from the seller. OK, so the seller is going to be paying twenty five on the twenty five percent better their capital gains. OK. Yeah. Seventy five percent. That's in the background. They're not going to pay capital gains on now. They're going to get interest so they're going to be getting paid. I can't remember what it is like. Let's say it's like four percent interest on that, on that money. As long as I have the, you know, the mortgage going now in that same building, we've turned over three units and increase the rents of my projected will be. I've got one unit that I'm still turning over, should be about one thousand two hundred dollars per month. We've also been putting the the water utility in the tenants name. So you can imagine one thousand two hundred dollars a month, times twelve gives me fourteen thousand four hundred dollars. And we look at the cap rate of point like a four cap. That means that I've added three hundred and sixty thousand dollars in value to that building in less than a year. Yeah. OK, so. That means that I can go to a lender, I'll probably wait for two more units, that I can get the most amount of value out of the first refinance of the building, probably take me another year to do so. That one's going to take two years. I usually promise, like up to five years. Now, once we refinance that property, the lender, VTB lender is going to be paid out the additional 75 percent at that time. They are going to have to pay capital gains on that 75 percent.

George El Masri [00:45:06] Makes sense. OK, and one last thing I want to touch on, Quinten, I appreciate you sharing that in terms of bedbugs. If you I'm sure you've dealt with bedbugs in your unit. Yeah, bedbugs are resilient. They require preparation from the tenants in order to properly address them. Yeah, I don't believe that bedbugs are typically a one time treatment. They normally require multiple treatment, so. What's been your experience with permanently getting rid of bedbugs, do you have, like a company go there every two weeks or every month or whatever for the first, let's say, six months to a year to to make sure that they completely disappear? What does that procedure look like for you?

Quentin D'Souza [00:45:49] Well, you have to identify the source of where the bedbugs are coming from in order to identify how to get rid of the the problem. Right. Without identifying that it becomes hard. So the key is to figure out what usually it's one unit that's causing or it could be two units that are causing the issue in the whole building. And once you've identified that, you need to remove the you know, where the problem is coming from. So sometimes it's we've found recently in a building, it was a couch and bed frame. That was that was the mattress. That was the main issue in this building. And we were going it took us 10 months to evict this person. Once we were able to evict them, we were able to do a number of treatments. We actually did three treatments of the the the unit and the building in order to ensure that we didn't have the problem. And then we monitored it to see if there was a continued issue. Once we actually got rid of the main culprit, the main person, the issue has gone, disappeared, got dealt with. Right.

George El Masri [00:47:00] Did you do any treatment, by the way, or chemical treatment?

Quentin D'Souza [00:47:04] Multiple chemical treatments? I think we ended up doing five chemical treatments altogether.

George El Masri [00:47:10] Like, what do you mean all together, one after the other or just all in the same day?

Quentin D'Souza [00:47:15] No, no, like over a number of weeks, like over like two months. OK, two. And then we'll go back and we'll inspect to ensure that the issue is is has been dealt with permanently. But sure. You know, it really is dealing with the that issue with that particular tenant. And, you know, you know, we're talking about this before. But if you have a person that's uncooperative and, you know, the landlord tenant border's closed and not doing hearings and it takes 10 months to get a hearing in this, you know, supposedly first world country, you could you know, you could that issue just persists and persists and persists. Right. And it's affecting all the other people in that building. But, you know, really what needs to happen is and, you know, you need to be able to address the unit that's causing the issue and have them comply with the treatments. And if they're not willing to comply, then they need to be evicted. Sure. Right.

George El Masri [00:48:22] Yeah, of course. OK, perfect. I appreciate that. So just to recap, get find the source, identify if it's one person that's the problem, then address that issue. And from there you can get you should get multiple treatments, maybe work something out with the pest control company so that they revisit regularly for the first few months. And that should hopefully permanently fix the problem.

Quentin D'Souza [00:48:47] If it's a building, definitely. You need to have the program. There are a lot of pest control companies that will will be able to handle the the, you know, bedbugs. They have different treatments. I like the chemical treatments. Some people like heat treatment. I've dealt with bedbugs on a number of different occasions in different buildings. And, you know, I've done both the heat and the chemical treatment and both have been quite effective. Perfect. I just like the chemical treatment because I find it a little bit more efficient, that's all.

George El Masri [00:49:17] Yeah, OK, sounds good. OK then. So that's it then for this part. And I wanted to jump into the next section which is the random five.

Quentin D'Souza [00:49:26] Sure. All right. Don't forget about the code for the book. Yeah. So George is the code with an S at the end. Yes. And they get a ten dollar discount if they go to the euro class action taker, real estate planner dot com to get a copy of that book for the ten dollar discount.

George El Masri [00:49:46] There you go. And you can check the show notes if you want to see the website and the coupon code. So again, the code is George, my first name and my name does have an S at the end. And yes, it's silent. OK, so there we go. So the random five, if you were a dictator of a small island nation, what crazy dictator stuff would you do?

Quentin D'Souza [00:50:07] Crazy dictator stuff, hmm, what crazy dictator stuff would I do? Well, I would make sure that everybody has to read books, you know, they have to read books and they have to be nonfiction books that help to improve their lives. I think that they they they have to make sure to do something that makes them uncomfortable. Yeah. You know, in order to grow and change and they have to do personal development. Nice. That's cool. Yes, that's thing.

George El Masri [00:50:38] I think that'd be a nice island. Everybody would be educated and cooperative and it's

Quentin D'Souza [00:50:44] still growing and learning.

George El Masri [00:50:45] Yeah. There you go. Number two, what are you most likely to become famous for?

Quentin D'Souza [00:50:51] One of my most likely become famous for probably I would say on like on the wealth creation front, you know, helping other people to be able to, you know, it's nice to be able to affect the positive change of people's financial positions from where they started to where they are now. And I've you know, I often feel that that's going to be something that I like my impact that's left on the world, not only from my life, my family kind of side of things, but also many other people that I've interacted with before. I feel like, you know, that's something that that's how I'm going to help people, because I've always been good with numbers and money. It's been like it's my unique ability, I would say. And, you know, being able to help other people to do the same would be the, you know, something that I would be known for.

George El Masri [00:51:46] There you go. There you go. From a teacher to an educator, and you've done a great job. You've impacted a lot of people. Thank you. Number three, would you rather spend the day at an art history or science museum?

Quentin D'Souza [00:52:00] Who I would rather. Can I pick history and science? I think I would and I'd like to. I've been I've probably go to all three just because I would spend probably the morning I've been you know, I've been to the Dolly Museum in in Spain. And, you know, that was amazing in the Louver and that was amazing. And I've also been to like, you know, different science centers across Ontario and even in the US. And I love like looking at how how science works and how we can improve the lives of ourselves and other people and been inspired by that. And I think, like, you know, the only way to avoid repeating history is to understand history. So, you know, I have gone to different war museums and, you know, the different galleries and, you know, enjoyed looking at the historical context of how things happen. So I would say that I'm cheating and I'm going to say all three.

George El Masri [00:53:09] OK, now, there you go. That works. You can you can say anything you want in the random five. So number four, what do you tell most often?

Quentin D'Souza [00:53:20] What lie do I tell most often that I don't like sweet things?

George El Masri [00:53:26] You convince yourself or try.

Quentin D'Souza [00:53:28] I'm trying to. I stopped having, like, sugar in my coffee. I tried to avoid desserts and stuff like that. But, you know, honestly, I still like when my wife makes like these pies and cakes and cookies and stuff and I smell them. I convinced myself. And then my kids have them and I, you know. You know,

George El Masri [00:53:50] yeah. That would be kind of in the same boat. I know exactly what you're talking about. OK, number five, what success principle do you live by?

Quentin D'Souza [00:54:00] Never, ever, ever, ever give up, never, ever, ever, ever give up, I never give up. I'm never going to stop. If you're in my way, you're just going to be in my way and I'm going to go around you, knock you down, whatever it is I'm going to give up.

George El Masri [00:54:15] And that's that's really good when it comes to problem tenants or issues with your investments or whatever. It's a good attitude to have.

Quentin D'Souza [00:54:22] You will never outwork me. You never outworked me.

George El Masri [00:54:27] I'm sure you get challenged often. It doesn't happen.

Quentin D'Souza [00:54:31] Yeah. No, never going to outwork me. I you know, I will be persistent. I'll keep fighting and you know, you'll never be able to to stop me. You're never going to give up.

George El Masri [00:54:44] Yeah. And if you didn't have that attitude you probably wouldn't be successful as an investor.

Quentin D'Souza [00:54:49] Know there's so many challenges. It's sometimes it's like, you know, dealing with different situations. People, you know, government bureaucracy, you know, partners trying to get deals done, dealing with inspectors, building inspectors, fire inspectors. Like, you know, there's so many challenges all the time. But, you know, you just got to find, you know, who's going to be able to help you with that rather than how to to kind of get things done and have, you know, like a growth mindset that you're going to learn every day. I don't know everything. I've been investing since two thousand and four. I don't know everything. I'm still learning all the time. So I think you know that that's helpful, too, for sure.

George El Masri [00:55:35] Oh, definitely. So quick to to finish things off. How do people reach you and what services do you provide?

Quentin D'Souza [00:55:42] I mean, if you want to partner with me, then then I could provide that type of service. But I think for the most part, you know, if you are interested in learning about investing in real estate, I've got to like we have members from across Canada and you can go to Germany, dot com or education dot com to sign up. And our phone number is one eight seven seven three five eight three seven three four. Or you can email me at info at Durham RMI dot com. And that's those are different ways that you can touch base with me. And don't forget about the book Action Taker, real estate planner, dot com and George with an S code for ten dollars off the special book package.

George El Masri [00:56:35] They're awesome. Quinten, thank you so much for this. I appreciate it. And I wish you all the best.

Quentin D'Souza [00:56:42] Awesome. Thanks very much. I appreciate you taking the time with me.

George El Masri [00:56:45] All right. Have a great day, you two.

Quentin D'Souza [00:56:47] Take care. Bye bye.

George El Masri [00:56:49] Thanks once again for listening to another episode of the Well Off podcast, just want to remind you that if you do appreciate the content, all I ask is that you comment, maybe like it if you can, on the platform that you're listening to it on and finally share it with friends and family. I'd love to get the message out there and it would mean a lot if you can share it. And finally, I just wanted to offer you as a valued listener, a free copy to the roadmap to real estate investing, which is a document that I've put together which helps you identify what strategy would best suit your needs at this current time. You go over certain things that are included in this document step by step, and it'll hopefully provide you with some clarity. So have a look. You can go to w w w well off Dasia Forward slash guide. Download your free copy.

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