Table of Contents - Quentin D’Souza : Starting with $5000 to Get An 8-Figure Real Estate Portfolio
Dave Debeau [00:00:08] Hey, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast today. It's my pleasure to be talking with a very, very experienced real estate entrepreneur and investor, Quentin D'Souza. And Quentin, where are you calling in from today?
Quentin D'Souza [00:00:24] I'm calling in from Whippy, which is just east of Toronto.
Dave Debeau [00:00:29] Fantastic. So if you don't know about Quentin, Quentin is a very, very sharp gentleman and probably one of the more educated real estate investors that I've interviewed. In fact, Quinn's got three degrees under his belt. He was involved in the education business for many, many years as a school teacher, got involved in real estate investing and retired or quit the teaching job at age 40. He's got a very significant portfolio. And you name it, he's pretty much done it when it comes to real estate investing. His main focus right now is what did you call it when you called by
Quentin D'Souza [00:01:07] Fix, Refinance and rent? BFX are some people call it other things, but that's boring.
Dave Debeau [00:01:17] Exactly. So, Quentin, welcome to the call. We're going to start the timer right now. And just to get an idea, let me know, how did you first get involved in real estate investing?
Quentin D'Souza [00:01:30] Well, I went down the path of experimenting with a lot of different things, stock market, looking at bonds, trying different avenues to make money, website stuff. And really, the real estate was something that I started to learn about. I joined a real estate club in actually they were based out of Calgary rain. And that was a great start. I learned a lot in my first year and a half with them, and then I just kept wanting to learn and do more things and started to buy properties three, four at a time, not at the same time, but over a year. Right. I did rent. Owens did some assignments within one year. I did like a dozen flips. You know, it's just a lot of learning and growing and keep building. The portfolio now have properties from single family homes up to a 12 unit building and just continuing to grow and learn and encourage people to do the same thing. I want people to to be able to take their money out of the stock market and actually instead of invest in, you know, just be able to create cash flow now and then they can do whatever they want. Right.
Dave Debeau [00:02:48] So amen. Brother, you're preaching to the choir here, that's for sure. That's what it's all about. Yeah. So when you mention it, we've started you've got a specific strategy that you focus on. You've done lots of different things. But can you walk us through your primary strategy and what you like best about it?
Quentin D'Souza [00:03:09] Sure, I guess the best part about it is that you're I don't know, there's a lot of really good things about it. If you do it really well, you get all or even more. You get paid to own a house continues to cash flow. You get the benefits of buying hold. So there's a lot of I mean, it's easier if I explain with the deal that I'm doing if I go for it. OK, so right now I've got a property that I'm working on in Bowmanville. So this east of Toronto again and bought the property for three eighty five, private sale, lots of work. The pool looks like a skate park. There's graffiti on the walls. I took out my team took out five bins of 40 yard bins of garbage out of the property. So they left the grand piano there, which was crazy. We're creating a legal duplex. So the bottom part is going to be a two bedroom. Upstairs is a four bedroom. OK, so we bought it for three. Eighty five. We're putting 60 into it. The house across the street, which is not a duplex sold for five twenty five. And so we should be able to get up to five seventy five to six hundred for that property. So our refinance will be higher than the amount of money that we put into it. So we should get paid a little bit after the full renovation and then continue to own the property and the rents are eighteen hundred for the upper unit plus utilities in the downstairs unit is fourteen hundred plus utilities. Yeah. So we'll end up with we'll still cash flow four hundred bucks after the reify. So it's hard not to like these and that's good. Don't get me wrong, that's a home run like you know that's not a single or a double, that's a home run and it doesn't happen all the time. But a single or a double with using this strategy, maybe you get less than like 10 percent of the the purchase price, which is still an awesome return. So you're really forced the value up of the product and you still continue to cash in on the property. So that's my.
Dave Debeau [00:05:19] Yeah, that's why that sounds like a fantastic deal. Now, when you've been doing how many years have you been investing for now at this point?
Quentin D'Souza [00:05:27] Fifteen years.
Dave Debeau [00:05:29] Fifteen years. All right. And you talked about you've done rent to owns, you've done flips, you've done all sorts of different things. So knowing what you know now. People are starting all over again, would you do anything different? What would you do differently, knowing what you know now?
Quentin D'Souza [00:05:43] Well, I probably would have held on to more of those slips that I did. You know what?
Dave Debeau [00:05:50] I hear you, man, because I've I didn't do flips in the traditional sense of the word, but get some creative deals, did quite a few rent to own deals. And that was always my pain. The whole thing is like, OK, you sell the property and now what? Now you got to go find another one to do it again. And you've just lost out on all the long term benefits of real estate.
Quentin D'Souza [00:06:10] Yeah, that's what I realized afterwards, is that flipping is really a job again. Right. And same with, like the rent to own stuff. It really becomes a job again, because now I'm going back and having to replace the asset, whereas what I found with the buy fixed refinance and rent is you're really forcing appreciation and then you continue to on the asset. It's like the long flip out like and I find that it works out well. There's added benefits to like. So if I wanted to the finished product I could joint venture. Right. So and then I get paid even more. So like let's say it's six hundred thousand. I joint venture to a partner who gets a once a turnkey duplex, still cash flows so does well puts in one hundred and twenty four and then I eat the, you know the legal costs or whatever. They're still getting a quick return and cash flow and long term appreciation. So now I'm making even more on that
Dave Debeau [00:07:10] because you maintain a 50 percent ownership in the property that in that case, right?
Quentin D'Souza [00:07:14] Yeah. So from a tax perspective, I'm selling 50 percent. So I still have to go through that rigmarole. But you get paid and get paid and then you continue to make parts.
Dave Debeau [00:07:26] All right. So this is kind of related, that last question. What? Because I know you train and coach people, you've got a very well established real estate investing club that you've been running for over ten years now. So what are some of the biggest mistakes you see other real estate investors making, especially new investors?
Quentin D'Souza [00:07:46] Yeah, you know, what I find happens is that we really real estate investors go through three distinct stages, right? The first stages like the building stage. Right. And then the second stage is the growth stage where you kind of see income and equity surpass what your required income is. Right. And then the third stage, I call it the defense stage. That's like, you know, as you get older, maybe you do VTE biz or you're you're trying to structure your portfolio to pass that along to your children or, you know, you're selling assets. Right. So most people what happens is they sell in the building stage and they never make it to the growth rate. It's like it's like a hockey stick. Right. So, you know, you have the base of the hockey stick. Then what ends up happening is people sell just as the hockey stick goes up right here. Right. That's what happens with, like rent owns to fold right here. But then you missed all that growth with the whole stick. That's the growth phase that you're missing. Right? So you want to be able to do that. And that's what happens a lot. Like I would say 90 percent or more of investors sell in that building phase, never make it to the growth phase and the growth phase where like the magic happens. Right. Like this is where you're getting compound growth, you're getting real wealth that hundreds of thousands of dollars at a time. Right. And if you scale that in let's say you do that with ten properties, it doesn't take long to gain millions. Right. So about
Dave Debeau [00:09:20] that Patience's. And, you know, and that's an awesome point that you brought up here. You're the first person I've talked to that's really brought that force. I really appreciate that. When it's we all tend to be so impatient and you see that, hey, if I sold I bought the property here and you calculate everything, I could make a quick fifty or seventy five grand. But instead, if you if you held on to it for another 10 years, you could be making three or four hundred grand on that property. That's what it's all about.
Quentin D'Souza [00:09:49] So, yeah, it's kind of funny. Like when when somebody in the club talks about a flip, it's kind of like, oh, everybody's so interested in it all. This is so sexy, you know, like, oh, man, tell me about TV. You tell me about it. Right. But the truth is, is that you're that person has a job. Yeah. That's all they do. They just have a job
Dave Debeau [00:10:12] and it's a risky one at that.
Quentin D'Souza [00:10:14] It is. It is. Yeah. So, you know, it's it's much better for me to get paid every month and have recurring income from that and just have management in place, have things running smoothly and then checking in on it like my little businesses are running on their own. Right.
Dave Debeau [00:10:32] So that's that's you know, you're creating the passive income that it's all about, so. You know, when you're working with people, let me ask this different. What do you think would be your unique advantage or your unfair advantages, Kiyosaki calls it, when it comes to real estate investing.
Quentin D'Souza [00:10:52] My unfair advantage is that I feel like I know a lot of people and I keep an open mind and I'm always learning right. I don't feel like I know everything. And if I like, for example, that grand piano they got left in my house, there was a guy from my high school who actually refurbishes pianos. So he with his his girlfriend, just two of them together, came and they moved the grand piano themselves. And like, I would never I looked at like, how am I going to get this out of there? Right. But they were able to do it and they actually folded the piano up on its side and were able to to get it out. I was blown away. Right. But, you know, like things like that, having other people that know what to do to be able to help you comes from keeping an open mind. You know, I have a really good reputation. Like people who know me know that I do what I say I'm going to do. Like people think that real estate business is a bricks and mortar business. It's not. It's relationship business. Right. And that's what one of my things is. I if you if you cross me off, you're in trouble like you're my friend. No problem. Like, this is definitely well together for years and years. Right.
Dave Debeau [00:12:10] So it makes sense. So when you're working with clients, when you're working with real estate investors, what are some of the biggest problems that you help them to solve?
Quentin D'Souza [00:12:22] Yeah, a lot of it comes from fear of the unknown. Right. And I get them uncomfortable and I get them doing things that they don't like to do right away. And there's a lot of reasons for that. So, like for my coaching program, I have a lot of online materials and online modules and things that they can go to to get the knowledge. But it's you know, there's content everywhere. What I do is I give them actions. We use a software program that gives that gives them the to do list. So I give them things that they need to do. And a lot of the things they have to check off doing are like going out and getting things done and then coming back and report it, because I find that what happens a lot is that they'll read it or they'll listen to it or they'll view it but won't do anything. So action is the key to succeeding in real estate. And I actually trademarked the term action taker because that's the name of my program, the action taker program. And that's what the key is, is that people go out and they take actions and they do. And I actually fire coaching clients. I don't need the money to do really well with what I do. I don't want to waste my time. So I've got, like, sorry, this isn't working. You're not doing like you're conditioned to work with me is like I'm going to give you tasks. You're going to do them. If you don't do them, we're going to part you know, that's it.
Dave Debeau [00:13:50] Now, that's the schoolteacher and you're coming out that you get an F..
Quentin D'Souza [00:13:55] Yeah, they get out of here. I don't give us you know, I kick you out of the program. I fire people. That's the way it goes.
Dave Debeau [00:14:03] So with that in mind, so fear kind of being the big thing, not taking action, procrastination, what would be like a an action that our listeners could take to help them overcome that fear? What would you suggest if somebody wants it, they recognize you say, you know what? Yeah, I mean, that batch, what would you suggest being a one action they could take to help overcome them?
Quentin D'Souza [00:14:23] Yeah. Hang out with people who are taking action. Right. You know, that's the easiest thing to do, find a group of people. There's a lot of like clubs and places online. Now you can go to meet up dotcom and find, you know, things that are going on in your area and just meet other people who are doing it by default. You're going to end up doing it right. Just because you keep hanging out and you keep hearing about these things going on and you'll get comfortable with it and you go out and start to do it by like I mean, I'm not that inexpensive, but like, you buy an investor lunch, right. Or take them out and see if they'll give you some time. You know, maybe they might and then get some insights that way and help but then go out and do something. The worst is people who are asking you all these questions and you give them the answer and then you follow up with them and they don't do anything. Yeah, right. Like, it's just it just
Dave Debeau [00:15:20] drives me nuts.
Quentin D'Souza [00:15:21] It drives me crazy.
Dave Debeau [00:15:23] All right. When we got a little bit less than two minutes here before our time's up. So if people are interested in finding out more about you, do you have any free resources you can offer folks that they so you can get a taste of Quenton D'Souza?
Quentin D'Souza [00:15:38] Yeah, there is renovation series that I put together and I interviewed basically different coaching students that I have and different Damaris members going through all types of renovations, mostly their duplex conversions. Sometimes they're vertical splits and that sort of thing. So you can. What was the URL? Oh, my gosh, I gave it to you. Anyways, I'm so bad with
Dave Debeau [00:16:04] the resources, but. Okay, so what's the best website for people to check you out on
Quentin D'Souza [00:16:10] the Durham area. Dot seei or dermody dot com. That's the easiest one. And I'm really eager to engage with real estate. Investors are actually going out and doing things. So I post articles on there and I have a scoring system that if you want to look at a property and you're buying it privately, which is what I do, like 70, 80 percent of the time, I have a scoring system that I used to be able to identify with the star system and all of that that's actually available on that website as well. So they can check that out for free to awesome.
Dave Debeau [00:16:48] Lots of great tools. Yeah, it's been a real pleasure, my friend. Thank you so much for your wisdom. And I look forward to keeping a better touch with you.
Quentin D'Souza [00:16:55] I look forward to keeping in touch with you, Dave. You know, you look a lot better in person, like you look like, oh, oh, oh.
Dave Debeau [00:17:03] All right, there you go. Good timing. All right. All right. Well, thanks very much for checking out the property profits podcast. And you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review. Very, very much appreciated. If you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.