Table of Contents - MANAGING PROPERTIES AT A DISTANCE W/ AIRLINE PILOT PATRICK BURCHARTZ
Sandy MacKay [00:00:31] Breakthrough Real Estate Investing Podcast Episode Ninety-Two.
Rob Break [00:00:47] Now, hello and welcome to the Breakthrough Real Estate Investing podcast, we put this show together to inspire you and help you break through to the life that you want to live through the power of real estate investing. My name is Rob Break here with me, as always is, said McKay. Hey, how's it going?
Sandy MacKay [00:01:18] Awesome himself.
Rob Break [00:01:20] Oh, it's great. It's summertime here. I'm loving it. I got shorts and a T-shirt on unlike our guest.
Sandy MacKay [00:01:27] I know saying, here it was. It's really summer for once.
Rob Break [00:01:30] Awesome. Yeah, it's been a long time coming. I've been just sick of the weather here, and so now I'm pretty stopped. My, my, my happy. You know, my, my happy attitude is coming back. Yeah, perfect. It's been gone for a while. I've been walking around like Oscar the Grouch or something.
Sandy MacKay [00:01:55] Always, whether there's something in Canada, it's always the weather's fault.
Rob Break [00:01:58] Yeah, yeah, we make our own, I guess, but that's OK. So how are you?
Sandy MacKay [00:02:08] Fantastic. Fantastic. I think we always before we get to know, let's just remind our listeners to check out our website, break through our podcast dossier, go over and grab our free report there. And they can pick up by joining our email list the ultimate strategy for building wealth, the real estate. They'll get a copy of that, and they'll get on our newsletter. So, they see all the episodes as they come out. Look at all of the updates on your property tours, on our events and whatnot, and we'd love to see them come out. So, get on those lists so you don't miss out on any of that fun stuff. And hopefully we see some more people know that some of our live stuff.
Rob Break [00:02:43] That's Breakthrough Aria podcast dossier. And as well, please, everybody, everyone goes over to iTunes and leave us a rating and review the really, really helpful and we do appreciate everyone that's not going to dwell on it because you hear me say that over and over and over again every single time the beginning of the show here. But go on over to iTunes, please, and just leave us a review. Let's give in to our interview.
Sandy MacKay [00:03:07] Now playing delay? Absolutely. Let's do it. It's chilly out there. Terrorism in the heart of winter, I suppose it's not really. It doesn't look like winter there, but it's apparently winter 17 degrees. Well, I guess
Patrick Burchartz [00:03:19] it's cool here in Cape Town.
Rob Break [00:03:22] That's I'm sorry. No problem. Our guest, Patrick Burkhart, is here with us from live from Cape Town. Anyone watching the video see Table Mountain Time behind him there looks pretty awesome. But Patrick is a full-time pilot and an investor with an impressive portfolio, a mix of duplexes, student rentals, single family homes. And you know, thanks for coming on the show today.
Patrick Burchartz [00:03:47] Yeah, glad to be here. Thanks, guys. And yeah, this is Cape Town, the Table Mountain behind me and it is 17 degrees windy. Most people out on the street wear thick jackets. I have my jacket on as well just to stay cool or stay warm. And yeah, good. Good to be here.
Rob Break [00:04:11] It's a nice deal in behind.
Patrick Burchartz [00:04:13] Yeah, beautiful view. It's a lot of people take the cable car to the top or they walk to the top. That's quite a hike and beautiful views of the city. Quite iconic. And yeah, that's although, you know, six months from now, it's really hot and nice and sunny. But this is OK to be here to offer. It's a beautiful city.
Rob Break [00:04:37] Are you there for business or pleasure right now?
Patrick Burchartz [00:04:40] Well, you know it is business. I'm here on a layover. It's 48 hours, but you do have. We do have lots of time to do all sorts of things. So yesterday was exploring the city. We went up for dinner. We have a nice steak and it's all good. Some people, they rent a car and they drive up along the coast. You can call it surfing. Or some people even go diving into a shark tank and watch the sharks in the water. It's some crazy stuff. Yeah.
Rob Break [00:05:14] So we've never talked about this, but I don't know if you've kept track of it either. But as a pilot, how many? I don't want to say how many different. Let's talk about countries. Maybe how many different countries do you think you've been to?
Patrick Burchartz [00:05:25] Boy, I'd probably say, I'm going to say something like 30 different countries. Yeah. You know, oh, all flights, so we're flying to South America, Africa, Asia, Japan, it's and it's it varies. So, you know, one day I could be in Tokyo and the next in Buenos Aires, so we're all over the place. North America flies to Toronto. Sometimes it's good fun.
Rob Break [00:06:01] That's exciting. Yeah. Do you usually get some time to see the sights or are, like most telling you there for a few days? Wherever you're going?
Patrick Burchartz [00:06:11] Sure, sure. So, my last flight, I was on reserve and then I got called out for a seven-day Buenos Aires. So, I went down to Buenos Aires. We departed on a Sunday, arrived on a Monday, Tuesday and Wednesday. I was off. And so, we explored the city on Thursday. We did the shuttle. So, we receive the aircraft as it arrives from Amazon in Buenos Aires. And then we'll do a shuttle to Santiago and back to when the Zaharias that day. And then we're off again and then Friday night. We do our Friday afternoon. We departed back for Amsterdam, arriving mid-morning back in Amsterdam.
Rob Break [00:07:01] You know, it's all that was this. I believe it's almost fair to say that you basically are on permanent vacation with like, you know, a couple of hours of work time in between.
Patrick Burchartz [00:07:15] Yeah, there's a lot of there's a lot of free time and you know what? That's where real estate had has failed in that time, whether I'm at home. Because here's the other thing, too, is that when I come back from a flight like that seven-day Buenos Aires, I had seven days off. And you got my head when I yeah, when I when I leave the aircraft and I go home, it's not like I have to prepare for a presentation or worry about emails. You know, I have to be prepared for every flight. But we do that just before the flight and there are simulators, sessions that we do throughout the year. But beyond that, when I go home, I am totally focused on the family and whatever I want to do, because that's my time off. And then when I do fly to a destination, you know that that Tuesday and Wednesday I can go and see things in the city. But I also did some stuff for the real estate, you know, using Skype call calling up just like we're doing right now, its technology is a wonderful thing, and we can connect anywhere in the world.
Rob Break [00:08:26] And where is home? We never mentioned that.
Patrick Burchartz [00:08:29] Yeah. So, I live in downtown Toronto. And so, after my flight, then I catch a flight to Toronto, I get home and that's
Rob Break [00:08:39] OK, great. So, let's back it up and we'll start at the beginning. Tell us a little bit about how you got started in real estate investing.
Patrick Burchartz [00:08:48] So about 20 years ago, I bought a condo downtown waterfront. It was the first property I bought and. You know, enjoyed that, that location. And at the same time, I started reading books by Don Campbell and I remember Robert Allen no money down which. Which was an interesting read, I don't know if a lot of that stuff really applies to. And it was an American author, a book. But anyways, then we bought a house in the beaches and decided to keep the condo. The house and the beaches were an awe. We bought it with a side entrance with the idea that we were going to have a basement apartment. And that's what we did. And you know, it's funny if I reflect back and think of the things that I did then and what we do now. I mean, I, you know, you take you take action, and you do things. But you know, there were mistakes along the way. But in other things, we're just really lucky. Like I that condo, the initial contact we had. I remember Brant, it had a, but it was on the 23rd floor, had a beautiful view of Toronto Island. And you know, we would. We posted an ad and said on at this and this time people showed up. We accepted applications; we picked the best one. And that was that. I thought, oh, this is pretty easy. And meanwhile, that was I think that was pretty lucky. It's not always like that.
Rob Break [00:10:32] No, I was going to say I thought I thought that story was going to go something like, Yeah, we thought it was pretty easy. But then once we had the tenant in there, we realized that maybe it wasn't so easy.
Patrick Burchartz [00:10:44] Now, that tenant was like a mouse. Easy peasy. But that was so, you know, when you have something like that, you think, oh, this stuff is this really is the. Let's do some more of these. Anyways, we had the basement apartment and then then we ran into some things like the contractor that we had was lousy and it took almost three times as long to get it all up and running. But we got that done. You know, non-conforming there was no fire separation or anything like that. I, you know, if I what I know now and move on, but then it just, you know, we did what we did, and it worked out to that space back because we had our we had our son and we wanted the rest of the space. And then we sold, we sold that property, and we sold the condo to purchase our present home that it's now at Midtown Toronto. And then, you know, I still had that, that I still felt that real estate was a good thing. So, we bought a condo right at Yorkville. Held that for five years, and then we sold it based on advice from fellow friends and investors. And you know, that was also a learning experience where I really regret selling that property. It's, you know, it's done well over the years and that whole area. And it just it just showed me that sometimes when you take people's advice, you have to see who you're listening to and get advice from the right people as opposed to people that, you know, think they know what they're talking about. Really, they don't. Everybody's got an opinion. And so that was a learning experience for me. And so, then in about 2012, we decided to go full in with real estate because it's always been. It's always been the best investment for us. And since that time, we've acquired properties in Hamilton, Oshawa, Peterborough, and it's they've done quite well and very happy with that. And you know, if I compared to other investments like stocks and bonds and such, I just think that this was a better way to go.
Rob Break [00:13:31] So in 2012, you decided to jump right in, like you said. And since then, how many how many properties if you acquired?
Patrick Burchartz [00:13:43] So now we have 13 properties. It's about twenty-five doors, we use full property management. I need to do that because I never wanted Lisa to ever be involved with the management. I don't want her to answer phone calls and things like that. And I'm also sometimes inaccessible and on the other side of the world, so full property management and that's worked out really well.
Rob Break [00:14:12] And now I know because I know you. But the answer to this question is pretty interesting. How many of those 13 properties, how many joint ventures do you have?
Patrick Burchartz [00:14:24] Right now, it's only one joint venture. Yeah, and the rest are fully 400 percent owned through with my wife and me.
Rob Break [00:14:34] That's fantastic. And we're going to get into that a little bit later. I don't want to jump ahead too much, but that's I think that's pretty rare. You know, as far as people just starting out are more having to look towards joint ventures earlier than I think they used to, even five years ago.
Patrick Burchartz [00:14:56] But financing is a big thing. Saad that's what I'm running against. I can still get some financing. There's only there's one bank that's willing to finance me, but they treat the property as a commercial and commercial property. So, they look at the cash flow. And depending on the cash flow and the value of the home, they'll rent, they'll only lend me so much. So, it might only be 75 or 70 percent or sixty-five loan to value. Mm-Hmm. It's just like a cap rate.
Sandy MacKay [00:15:32] Because cut all those 13 properties are all residential financing correct, there's no commercial, no problems in them.
Patrick Burchartz [00:15:40] Correct. Yes. Yes. And I thought of going commercial, but I just I found that looking into it, Todd, akin to other commercial players and lenders, commercial lenders that they just said, there's so much. There's so much. Well, two years ago, at least, it was a lot of money sloshing around from a lot of people that didn't care about the cap rate. They just wanted to park their money. And if you're competing with those people, well, then they're happy to take it at a much higher price. And it's and then it is what it is. So, I'm happy with the residential properties for now, although I would gladly investigate again commercial side of things. But right now, this is working and it's something that I know and it's easy to do.
Rob Break [00:16:33] But let's talk about the types of properties you invest in then. So what? What kind of properties do you invested in and how do you find out what kind of things you look for?
Patrick Burchartz [00:16:44] So, you know, we're looking for. We're looking for a certain an area, certainly that will generate a certain amount of income or rental income. And so, when we first started out, we would go to Hamilton on the mountain and buy a single-family home and put a second Sweden. And with those two rents coming in, that would typically cover all the costs involved to operate that home being the mortgage, the property tax and the insurance and property management as well. So, and then when you're looking at those homes, they have to be a certain design or, you know, there has to be a side entrance. The ceiling has to be a certain height because you need to conform to the bylaws of the of the city because you want that certificate. And at least that's our property. So, want to have that certificate and to have it as a conforming property. And that's typically and then we would once we had everything in place, we'd refinance, get the money out again that we use to renovate and then move on to the next property.
Rob Break [00:18:08] So I think it's a more typical strategy now, but I'll just explain what you were saying. There is basically you're buying a single family home and then you would put a full basement apartment in and there's certain areas where you can do that and also where regulations make it so that it's an easy enough thing and makes financial sense to go ahead and spend that kind of money to own a kitchen and possibly on a bathroom and everything you need to have a separate basement apartment and then have it in a spot where the city will allow you to register it as a legal dwelling unit.
Patrick Burchartz [00:18:48] Correct? And sometimes you have to. So, the other thing what's important is that we're trying to do. We're trying to find a property so that we don't have any variance is so that we don't have to go to a committee of adjustment because if and certainly in Hamilton, for example, parking is always a real sticky, sticky point. And so, there are certain properties that will work with the bylaws that are required in other ones that then it's tricky and to go to committee of adjustment, then the whole neighborhood shows up and that's a hard sell. That's a hard sell. So, so that's what you're looking for.
Rob Break [00:19:31] OK, good. Good stuff. How many of those places they have? Where you've actually converted the like, put a basement apartment and where there wasn't one before,
Patrick Burchartz [00:19:44] so there were two properties where they were existing a duplex or a property with a second suite, so that was an easier property to acquire and to set up. But the other ones we have it is 10. Where? Eight, we had to convert. So, there were eight properties that we converted with a second suite to make it a duplex. Or a house with seconds? So, yeah, no, it's you know, it's it takes time, there's effort involved, but once it's set up, that's the beauty. Once you have once you've gone through that process, you know that home inside and out. And you know you you've got that end goal in mind of, you know, what finishes you need. You know what you need to do to get to get the right tenants and good tenants that'll pay that higher amount of rent to cover your costs. So, when you when you put it all together, you create this new property with two great units in it and that they that they pay all the costs and there's a little bit of cash flow at the end of the month. That's a great thing. That's a nice feeling. And then it just keeps going forward that way. It's a then it's an easy property to manage to.
Sandy MacKay [00:21:18] It is relatively easy because you do have some restrictions in time and everything, so that's smart, you set it up that way to make it somewhat simple. So, you have sounds like you did a little bit of learning before you got in really the real estate, but definitely over time, I've learned a lot more how much effort and time to be put into actually learning the stuff before you take action or do just jump in. And like you said, there was a bit of luck there, maybe in the beginning, but you took action. So how much? How much learning did you take on before jumping in?
Patrick Burchartz [00:21:51] You know, I read some of these books by Tom Campbell, and there were a few others, but I don't think I spent too much time with that. And we are just it was only because we moved that we decided, hey, you know what? Let's keep this condo. So, it was very it was about the easiest scenario to kind of get your feet a little bit wet and to go into real estate. But I'm a firm believer, as I would if someone was to ask me what you know we're thinking about, who would like to get into it. I would say do maybe two or three months of learning, pick a date and that's it. And right after that, take action and move forward because learning is by doing. And you know, you can you you'll always think you don't know enough, and you'll always want to read more books and more books. But it's just so true when you when you, you know, you dip your toes in the water and you move forward, you know, the learning curve is steep, but you're going to you're going to progress and you're going to learn that way better than just reading books.
Rob Break [00:23:02] You know, that's really good. Advice will come up. You're sure you've come up; you haven't had any problems.
Patrick Burchartz [00:23:09] Yeah, there's always problems, there's always issues.
Rob Break [00:23:13] We'll talk about those in a second. But what I was going to say is that I don't think we've heard that. That's not specifically that. That idea that you just said was, you know what, if you're going to if you're going to learn, set a date and then if you want to cram as much learning into that into that time that you've allowed yourself, do that. But you know, if you found that you can and then that time, then you can choose to read one book or you can read 14 books. But whatever it is after that date takes some action. I like that.
Patrick Burchartz [00:23:51] And the other thing I would add to that is tell everybody. Tell everybody to. So, you're accountable that you're stuck with that date, and you can't, you know, you can't change it. Because that was that faith. So, you know, that's you know, if you if you keep it to yourself, it's easy to say, well, I'm going to go another month. But if you tell your friends, your wife, everybody, you all, then you're stuck with that date, and it'll keep you honest.
Sandy MacKay [00:24:19] And they're also going to attracts answers to things that you might have questions that people are going to probably come to you with answers, right? Because you're putting it out there. It's like the people I've seen. A lot of people put their picture of them on a scale, maybe on Facebook or something, and they say, I'm committed to hitting this weight goal by this time. And all of a sudden, you're way more accountable or even put it out there in the world and the better chances getting reality, right?
Patrick Burchartz [00:24:44] Yeah. And the only thing I would add, though, with that is that make sure you tell the right people, tell fellow investors, tell people that understand, because if you're going to tell people that know nothing about real estate, they're going to go, You're crazy. Oh, it's all going to go to hell in a handbasket in the next month or two, and they're going to talk you out of it. So, you want to have those you want to tell Sandy and rob about your date, you know, and they'll keep you honest. They'll say, Yeah, yeah, let's go. Take action, let's go.
Rob Break [00:25:19] So, Patrick, how many more properties are you buying this year?
Patrick Burchartz [00:25:24] Yeah, that's a great question. I don't know. Let's look, you know, I go on holidays tomorrow and I will be traveling, but I will certainly be looking. And I am hoping that when I come back from the vacation that there might be a closing date. I see probably two, maybe three properties between now and the end of the year. That's that would that's probably a realistic goal. And yeah, so that's to answer your questions.
Rob Break [00:26:04] No, that's ambitious. I have to say I like it.
Sandy MacKay [00:26:08] So what do we get into some of these, these challenges that problems is going to be accountability on there now. So, get where it doesn't matter if your book is there is Bangkok. Whatever you're getting, they're going to be held to that. What are some of
Patrick Burchartz [00:26:23] these then or if. You know, I just wanted to step in there for a second with Rob's like, what sometimes we do too is that, you know, with me traveling and especially now, you know, I'm going to be on the other side of the world and this and that for vacation. But Rob can go to a property or anybody for that matter and videotape, and we can make a decision based on that videotape and a walk through. And you know, then I can have the contractor go through as well to get another opinion or the property manager to go through it. And then with that, it can make a decision, say, Yeah, you know what? This is a good property. Let's go ahead and get it under contract.
Rob Break [00:27:11] Yeah, and that's great and that works for you. And I think that that there's something to be said for that. But also at the same time, something like that could be a recipe for disaster. If you've got like a first time someone who doesn't know what they're looking for, let's say pair them with an agent who has no idea what they should be getting themselves into. And you know, that can go south pretty quickly. So, there are certain things to think about. If people are in the same situation as Patrick, maybe at the very end. Like, I don't know, there's a lot of stuff that you need to know, I guess, in order to do it that way.
Patrick Burchartz [00:27:47] So, you know, just absolutely, absolutely. No, that's true. That's absolutely true. I wouldn't do that. Certainly, starting out and you want to you want to go into the property and feel it and you're probably going to see many properties. Sometimes you'll go out and you'll look at the property for only two minutes because you realize, oh, there's no side entrance. They said there was, but there was it. Let's go, let's go to the next one. Mm-Hmm. I'm so sorry, Sandy. The problems. What was that? The problems I've encountered. Yeah, no.
Sandy MacKay [00:28:19] That was some great advice there. Yeah, I think everyone can do that in time, but you need to know you know your property type and all your numbers know everything really clearly and have everyone around him knowing it all clearly. Before you can take that leap and whether you're across the world or just, you know, a two-hour drive away, that can be really convenient. Yeah, why don't we get into some of the challenges that they face, whether relating to that or related to anything? Obviously, you know, you laughed a bit earlier when we talked to you about the very few challenges we had, but I'm sure there's some in there. Well, what have been some of the main ones over the years?
Patrick Burchartz [00:28:53] Well, you know, something that comes to mind right off the bat is that when you get into real estate, they will always be issues. There will always be problems, but they're always solvable. So, if you have that mindset already said, OK, I'm going to get a problem because whether it's whether it's the property, whether it's insurance, whether it's financing, there's always these hiccups. And, you know, to go for months and months on end with nothing like it. And you do a pretty good, I guess I guess the less properties you have, the less the odds are. Maybe that the numbers are lower, but you'll always there's always problems, but they're always solvable. So, I just want to I just I want to say that right off the bat, because I think I think some people there, they're involved with the real estate, but they get worn down by constant issues. And but, you know, if you can see through them and look at that end goal in mind, it's worth it. And but having said that, you know, you have the best intentions and sometimes it just doesn't work out, you know, with whether it is, you know, renovations. You can have a cost in mind and say, OK, you've talked to your contractor, and it is going to be X amount and it goes way over budget. And why did that happen? Well, sometimes we discover things along the way
Rob Break [00:30:34] or
Patrick Burchartz [00:30:36] you know that that contractor could be working on a second site already and the job is now starting to slow down and it's chewing up time and now you that delays getting tenants in there to help pay for the bill. So, I've had that in the past. You know, you get a phone call and there's a leaky roof or there's or what's nice is that the shower leaks, but it's going through the floor into the next unit. And so now there's leaking in the next unit. So, you have to go in there and repair managing to tenants that are, you know, annoyed. So those are some of the challenges that you can have. But you know, you got to you work through the. That's just I think if you if you feel if you if you anticipate it, it's not so bad. But, you know, Saturday or it could be a sunny afternoon and you're having dinner with the family and there goes the phone or there goes an email and it's like, Oh, the leaky toilet.
Rob Break [00:31:53] Oh, I think I've gotten calls on Christmas Day at least twice, at least twice on Christmas Day with, you know, probably I believe it was leaks. But you know what? You just you just actually sort of summed up perfectly what you know, like you were saying that if you talk to different people, you'll always run into those people. They go, oh my gosh, I wouldn't do that. Like, what are you thinking of getting into real estate this and that? They're probably going to bring up just about every one of those things that you said as a possible challenge. But those are those are things that, like you said, if you expected anticipated because it's inevitable, you'll find a way around it. I mean, if there is a leaky pipe it calls plumber, they come in, they fix it. That's how it goes. Yes. But that being said, let's just dig a little bit deeper into the challenges. There's got to be like, what? We want to hear that one thing, that one thing that you know, when you first heard it, it was disastrous and then you found a way around.
Patrick Burchartz [00:32:57] Oh. Well, there was recently with a student rental. The tenants were in the property. And it was reading week, so they were sure there were two students left for that weekend and they decided to go out that night. They had a big night. And they come back. Well, apparently, they had two friends that were with them earlier that evening. And the story was they forgot their bag. In the unit. Well, they came back, and they were they became quite aggressive, and they started, they tried to break into the into the up to the house and they broke the glass, they smashed the door in. They had the two students call the police and the two boys took off. But they found out who they were and then it was to solve that. The property manager contacted the parents. And we're in contact with the police and also could contact those two boys that damaged or young men the damage, the door and the window and whatnot. And so, in the end, we did get that money back, but we knew for the repairs, and they paid for everything. So, but initially when that happens, you're like, whoa, what is this? But that's, you know, that that that got solved and was repaired. Another story. There was a property that we acquired that had tenants in it already. And. You know, really, I find it better to acquire the property, especially and find your own tenants, because then you know what you're going to get when you get when you inherit tenants. You really don't know what you have. And so, they it was a couple that was in the upper unit, and they were always late with rent, and it was going on and on. And so, we ended up make a long story short, we ended up getting the mother-in-law to guarantee the rent. Then they separated, and it was just the husband. And at that point, we could have we had the opportunity to have him go and get new tenant, a new tenant. We decided not to because we had it guaranteed with the father. And sure enough, he paid first class rent. And that was that he never paid any rent after that. And so now you're not getting that rant, you've got these costs that if you paid and. We had to take him to the landlord tenant board, and we got we got he didn't show up, so they said, well, what do you want to do? And we said, well, we'd like to evict. And they came by, and they evicted him. Although two days he was allowed to go back and get his stuff, but he decided not to let us know, and he just broke into the home and started getting the things we had to call the police. You know, all this nonsense and in the end, he left all this stuff. So now we had to get garbage removal. Get there. All his stuff had to be removed. So, the costs are just building and building. We take them to small claims court. And we got a verdict, and we won. And the father was also in there, so the father in the end is paying back the cost of this lawsuit. So, you know, in the end, we're getting those funds back, but it was a big, you know, that's for I think for a lot of people, that's a scary proposition to have. And luckily, we can get we could get those funds back.
Rob Break [00:37:28] So most of your challenges seem to be with property management, then at least the big ones anyway. So, let's talk a little bit about property management at a distance. Then how do you find how do you find your you're able to manage all these places when you're so far away most time?
Patrick Burchartz [00:37:49] So I use full, full-service property management, and to be to be sure that those two scenarios, I thought they were well managed. Except for the idea that it was my decision to keep it was a calculated risk to keep that tenant. We thought it was going to work out well, it didn't. But we mitigated the risk by having the father cosigned on the lease. Mm-Hmm. Property management, I find just like any other as part of your team, you have to communicate with them. So, I'm in contact with property management. I have to keep an eye on them as well and just make sure that they're doing their job properly as well. So that's and calling him Skype and emailing from anywhere, and it works out well.
Rob Break [00:38:45] OK, that's good. So, have you found that you've needed to? Was it challenging to find the right property managers?
Patrick Burchartz [00:38:54] No. In the beginning, I was doing a lot of things with rain. I wasn't involved with rain, but I just ended up. My team was all connected with rain, so. And they had some and they suggested that as a property manager in Hamilton, so I'm still with them today. The only thing is what I do is I always at Christmas time, I send out a Christmas card to all the tenants. Saying high from the property owner, they get a little gift card as well. And I also let them know to say, look, you know? The property management is doing the best they can. But sometimes things fall through the cracks. And if they miss something. And if you need an answer, you can always send me an email just so we can solve the problem, for sure. I also say 99 percent of the issues that you have, you should be calling the property management. But if you feel that something is still not working, then let me know. And so, with that, it's what's nice with that is it's kept the property management honest because now I know what's happening. Mm-Hmm. You know, without that and I only know what the property management tells me because I'm not really in contact with the tenants in that regard. So that's worked out well for me, I think.
Rob Break [00:40:25] And they don't bother you, really.
Patrick Burchartz [00:40:28] Know what you do get, though, is that you will get an e-mail queue on an email and they're venting their issue. And so, I'll see that I don't really have to action it, but I can certainly sometimes I'll step in and say, oh, OK, you know, because they just want, they want to be heard. So, I'll say, hey, listen, that's a shame that that's happening. We're going to do our best to solve that. And then I'll say, hey, Steve, can you look into this and please contact so-and-so and let's get this fixed? So, I think they really like that, and they like the fact that people are listening and that's going to get solved, right?
Rob Break [00:41:10] Let's switch gears here. We talked a little bit about how many properties you have and the fact that really your most recent one was the only one that you've taken on in joint venture partner. So how did you manage to get financing for all these places?
Patrick Burchartz [00:41:25] You know, using a mortgage broker and a lot of times the, you know, some of the banks they can own, they'll only lend you so many mortgages. But up until now, it's, you know, it's it hasn't been too bad. The value of the home in Midtown Toronto has gone up, so I'll use some of that equity from that home to help with the assist with the purchases. And you know, it's now getting very tight as there's only so many banks will allow you to have more than 10 mortgages. And I'm obviously above that, so I do have a few options. There's also a credit union that I can use to get financing. But, you know, now I'm at that point where I'd like to that I am, and I like to. I prefer to use a joint venture relationship. And that's my goal is to where I will get that financing, but it's then a partnership with the joint venture partner and we'll split on the deal.
Rob Break [00:42:37] And the one thing I do know about you, though, is because I've been through a couple of different property purchases with you and following along where you just stay on the phone or you keep at it until you get the answer you want, right? They know what's going to tell you can't buy that property. You're going to find out how to do it.
Patrick Burchartz [00:43:03] Yeah, yeah. Now there's been, you know, it's funny because you know, you, you, you, you just start calling people and everybody, you know, everybody has a different story and maybe a different way of getting that financing. And it's funny there was one gentleman where he said, oh, I can get you financing through this one institution, and I knew the officially they were not to give me financing anymore because I had more than 10 mortgages. And he goes, no, I can get it through. And OK, let's see what happens. And then a week before closing. That same institution said, oh, wait a second here. Yeah, he's got he's got more than 10, but then they decide. But that's OK, we'll just let it go. And that was that. So, you know, they do have a little bit of leeway. And so, there's sometimes those kinds of funny scenarios that go through. And, you know, as long as you keep calling and asking, certainly the credit unions, that's something that I think a lot of people started to look into, especially with the recent stress tests increase in in in financing because the credit unions don't have to follow that. So, you get a better interest rate or at least the qualification is easier.
Sandy MacKay [00:44:33] So Patrick, who was someone that that you're looking for as a partner with, what kind of person is that? Is that a first timer looking to do the first deal? Is it someone what's that ideal partner to look like for you?
Patrick Burchartz [00:44:46] So what I'm looking for is someone that or maybe it's what I'm willing to offer is that I'm looking for a joint venture partner who will put up the down payment. They'll come up with the financing and funds for the renovation. And then I will say it's a 50 50 split and then I will go find the property, find a tenants renovated and get it all set up. And then it's running. What? I'd like to think that I'll have a property, that we acquire that property so that and I will my goal is to promise something, you know, at a conservative level and then overdeliver. That's one, too, I think, for some people. You know, there's lots of people that either, you know, they're not quite sure if they want to go into real estate or not. So, what I'm willing to do, too, is that I will show them we'll set up this deal and then then they can use that as an example. And so maybe if they want to purchase a second property, they can say, well, you know what, maybe you want to do this on your own. If you think you can do that, I can help you with that. And they go and do there they buy their second property on their own. So if there's people out there that are not quite sure, I'm happy to do the joint venture the first time and then show and then hopefully with what they've learned, because that's something I feel like, you know, I'd like to share what I know and I think that a lot of people could benefit from that. And then the last thing is, you know, once you have a joint venture partner, you have their attention. And certainly, when it's when it's working out, they're going to be excited. And they and they may even say, you know what, I'd like to do this again. But the other thing is, when you when you have this person, you know, maybe there's something else that you can solve for them, whether that's, you know, financing for their kid's education or, you know, all sorts of stuff. I'd like to think that I can help them in different areas. And if and if it's something that they haven't really discovered yet that I can help them with, I think that's really going to get them excited. And, you know, hopefully they might want to do another joint venture again.
Sandy MacKay [00:47:13] That's very cool and we know what your goals are. You're going to buy two or three properties this year, right? Are those going to be joint venture deals that the plan?
Patrick Burchartz [00:47:20] Yes. So, if it's what I'd like to do is have the property come to pipeline, the hardest thing really is to find the property. And if so, if I have the property, if I have someone that's willing to come in as a joint venture, then I'd like to then do that as a joint venture. If they if I don't have anybody, then I will just simply purchase the property myself and get it financed myself. So, I want to have that flexibility so that we can keep rolling with the next property in the next property.
Rob Break [00:47:55] Any other goals for 2019?
Patrick Burchartz [00:47:57] Other goals? Well, I just I, you know, I myself put that out there. I want to swim. I want to do another mini try and I need to swim 750 meters. I'm a lousy swimmer, so I'm going to the pool constantly. So that is a goal. And it's a little bit. The problem is I'm going to go on holidays, and I don't know where I'm going to go swimming. I just started CrossFit. Really excited about that. And, you know, going to torture myself with burpees every day. So, but I'm so doing a lot of things like that and educating myself. Another thing that I that I'd like to do, and I'll throw this out there now is that I'd like to join a mastermind. I think that would really benefit me. I'd like to think I could bring something to the table. And if there's anybody out there that thinks or knows of a mastermind that I might fit into, then let me know because it's something that I'd like to get into. But I haven't really found the right place or the right group. So, OK, there's just throwing that out there as well and, you know, goals and then and the nice thing too is it's, you know, we all see all this real estate thing is nice, but you know you, you also have to have your Y and the Y for real estate or my y is, you know, to share with the family. We are certainly I certainly now have a core holding. So, the future in terms of with the real estate holdings looks really good. But it's and so it allows me also to have time in the future for my wife and kids and help them get to their goals as well. So that's something that I always I always try to keep in mind when I'm doing this. I also want to keep them in mind and help them get to where they want to be.
Rob Break [00:50:14] That's fantastic. I think you've got a lot and you've shared a lot and you've got a lot to offer. I think anyone. So, if anyone doesn't know a mastermind group that you think that fit in to your, please give them a call and we're going to have all of your contact info in the show notes. So, you will be able to get in touch with you that way. But I guess last but not least, what are those things then that motivate you and give you the drive to help everyone, I guess, around you and your family? And want to want to be able to lift everybody up?
Patrick Burchartz [00:50:52] Oh, look, I guess for me, I like to create and real estate. I feel like I'm creating something I'm creating, you know, I have to find a property and create it into an entity that is self-sufficient, pays for itself. And it's an investment. And I mean, real estate is also about being is being contact with people and networking. And so, I love to be in contact with everybody. And I've learned I've gotten to know so many people over the years. And so, I really enjoy that. And it's, you know, I'd like to think that's something I can pass on to the kids. And so, I guess what motivates me, I'll usually have goals set for the year and trying to attain those goals that keeps me keeps me going. And. Yeah. You know, it's if I look back, that's something I sometimes do, too. I look at previous goals and I think to myself, hey, you know what? That worked out really well. And that's a good feeling. So, you know, when you have your goal, sometimes it's nice to revisit them and say, hey, you know, did that work out? Or, you know what? I set my goals high. I didn't quite make it, but I'm certainly on my way.
Rob Break [00:52:21] Love that. Yeah, I love that. Everyone should have. Everyone should be setting their goals, that's for sure.
Sandy MacKay [00:52:27] Patrick is a joint venture partner that partners with you. Do they get to get on these excursions or tours of the world and be a jet setter with you?
Patrick Burchartz [00:52:34] Or look, if they don't, if, yeah, that's something that we could, maybe that's not a problem. Yeah, yeah. I guess I could throw that out there as a teaser. I'm just thinking about when they get to choose where they want to go. You know, it's funny. I just reminded me of a funny story. So about four years ago, we were here in Cape Town on holidays, and there was a deal that was that was it was almost tied up. And I remember going to our favorite restaurant, the Butcher Shop, and we ordered our filet and a peanut Taisha. And the deal had been going back and forth a little bit the last couple of days. And I stole the Wi-Fi from the restaurant next door and the meal comes. I glance at the phone, and it said, Yeah, they accepted your offer. And then I ate with donkey sign. It said, Yeah, play. And that was done, and the meal was there, and the wine was there. And it was fantastic because like, this is a moment to celebrate. And there I am with my wife and kids, and it was magic. Yeah. So that was good. That was one of those moments that you have to, you know, when you got to celebrate your wins while that was right there.
Rob Break [00:53:59] That is awesome. I love that story.
Sandy MacKay [00:54:01] Yeah, yeah. Yeah, that's amazing. So, if somebody out there is looking to connect with you and learn more about how they can win in these states and Cape Town and drive real estate at the same time? Learn a little bit more about what that looks like. How can they get in touch with you? What's the best way?
Patrick Burchartz [00:54:19] The best way to get in touch with me is through my email. And that's Patti B.K. at gmail.com. Poppa, Alfa Tango, Bravo, Charlie Alfa at gmail.com.
Rob Break [00:54:31] Awesome, thanks. Thanks, Patrick. I love this interview; you shared a lot of stuff and I think that the people are going to have something to learn here.
Patrick Burchartz [00:54:40] Hey, look, it's been a lot of fun. That time went really fast, and I just wanted to say I wanted to thank you guys for having me on. Guys do a great show. I think you guys are spot on relevant Canadian real estate information and what you're not. You guys now have this huge library of episodes and there's all this knowledge that's there. And so, you know, if someone is looking for anything like property management or mortgage or mortgage brokers or whatnot that you just you just have to go back into the library and get that information, it's all there. Lots of interesting guests. I think you're I don't know for sure, but from what I hear said, you guys are one of the top rated, a real estate Canadian real estate podcasts in Canada, certainly for downloads.
Rob Break [00:55:36] Well, thank you, I appreciate that. Yeah, you might be right.
Sandy MacKay [00:55:41] Number one, I don't know, Larry, I think we're number one.
Rob Break [00:55:43] I'm going to go out on a limb and say, we are.
Patrick Burchartz [00:55:45] Yeah. There you go.
Rob Break [00:55:47] Come on. Come at us. Other podcasts? That's right. OK. No. Thank you, Patrick. It's been. It's been a pleasure. So, thank you very much for coming on, Sadie. How can people get in touch with you?
Sandy MacKay [00:56:01] Yeah, infodemic really is an outcome or two eight nine three eight nine six eight four six and you
Rob Break [00:56:08] rob that Mr. Breakthrough Dossier. OK, everybody has a great day.