Table of Contents - Replace Your Income with Tyler Soulliere’s BHIR Strategy with Tyler Soulliere
Dave Debeau [00:00:09] Hey, everybody, Dave Debeau here with another episode of the Property Profits Real Estate podcast today, zooming in. We're actually filming this on Canada Day. So happy Canada Day. Tyler Souillier is from Windsor, Ontario, an award winning real estate entrepreneur. So how are you doing today, Tyler?
Tyler Soulliere [00:00:27] Very good. Sun is shining out here in Windsor, Ontario, and can't complain. Right. It's nice to finally get some good sunshine because they are off, as I was saying earlier when we were talking before we began this podcast.
Dave Debeau [00:00:39] So you posted off your 11 month old baby to the in-laws. So you get a little bit of peace and quiet and probably have a nice big nap after this
Tyler Soulliere [00:00:50] nap or finally catching up on some running numbers, actually, as I was about to be late to this to this call.
Dave Debeau [00:00:57] All right. So speaking of running numbers, why don't you tell us what is your main focus when it comes to real estate investing these days?
Tyler Soulliere [00:01:04] Nowadays, it's all about buy and hold. But I mean, I can get into where I started back in 2013. It was like everyone else. I would jump on the bandwagon to make a quick buck while I was selling real estate. I figured that would be a good way to supplement my income as it was a nice, big payday. If I can flip a home and make 20, 30 grand right now. But as I kept flipping a couple of properties here and there, I started looking at the bigger picture rate. Why always depend on a big payday when I could just slowly get out of selling real estate to then have passive income from rental properties?
Dave Debeau [00:01:40] Yeah, right. Yeah, that's kind of the process a lot of people go through, isn't it.
Tyler Soulliere [00:01:44] So yeah. Yeah. Because they fix a flip is risky. Right. And it was kind of the first one of course the first one I did very good on back in 2013. Forty eight thousand dollar duplex that I think it is didn't it. And make 30. And I said well I didn't really have to do much. I had a good contractor, did all the work and and then that kind of just snowballed. But the next one didn't do as well. And then doing renovations, it's very hard to budget. Right. So you just the margins were getting slimmer and slimmer. So I think by the third one I was like, well, let's just instead of trying to sell these and make five, ten grand, I'll just I'll just hold them. Right. Let them go up in value. And that's kind of where I started just buying these properties and filling them and rent them out and slowly just build them up the equity. Or sometimes I would refinance them. So the B triple R method worked very well because the Balmaceda. Yeah, ok. Yeah. Winzer it was very hard with the recession back in 2008. So we had a lot of bank sales here, lots of properties that needed, you know, if you still buy on the cheap and that needed updating. Right. So that was kind of maybe a good time to really get in. Real estate deal for myself was there wasn't much competition. People are still very hesitant to pick these properties up. But, you know, I was a little more risk and I was only thirty years old. So I was kind of thinking I still was selling real estate. So that was a good income. But, you know, I was going I should start buying some more, holding on to these. And I had I could take a risk. Great. Because I did have other income in the back of
Dave Debeau [00:03:17] still a realtor. Are you focused full time on being a real estate investor? Entrepreneur? Do you do both? What are you doing these days?
Tyler Soulliere [00:03:26] So for six years I was doing both and about a year and a half I just kind of hung up the realtor license and now just kind of sitting enjoying just buying properties here and there, but only just a few in the last couple of years and just buy and hold multiple properties that I've just looked to just slowly just continue building up that passive income.
Dave Debeau [00:03:48] Very nice. So what is your portfolio look like now, if you don't mind sharing what?
Tyler Soulliere [00:03:54] Yeah, mainly just duplexes. Yeah, I've got about four or five duplexes. I always get the number. I've got a six unit out in the county here, Windsor that I own. I, I've got a mixed use residential five unit in Windsor. So I think my seven eight properties, maybe close to twenty doors I think right now cool.
Dave Debeau [00:04:14] In that area that's, that's creating the cash flow that you need to not have to punch a clock.
Tyler Soulliere [00:04:20] That's yes. Yes. It's, it's kind of been very nice just to kind of live off the cash flow. And I've been lucky enough to just this year sell off two big properties that I bought. As the tenants pay down the mortgage for me and the properties have gone up in value, I was able to get a little profit out of those. And then all these properties that I've held, I just refinanced all five of those properties myself. So being almost like a long term beachball, our method where I bought them in the past, over the years, and now with the equity I've built up over those years, I just pulled it out. And now I'm I think that exact you know, it's a long process. Right. So I've held those for six years and. Watching equity builds up, and it was it was nice to kind of have a nice big Christmas present, almost, you call it, right, where you're finally able to access some of that equity you've worked so hard to get. Right. The headaches over the years of dealing with tenants, dealing with vacancies, dealing with nonpaying tenants. Right. I mean, it's it's a tough process. And the goal is, you know, you don't want to put money into these properties. You want the tenants when you're holding properties for rentals to pay down that mortgage for. Right. And hopefully put a lid on your pocket. So, you know, on the big grand scheme of things, it's easy, but it's but it's not right.
Dave Debeau [00:05:44] So there you are. So you went from working as a realtor, then you started flipping houses. Then you realize it's not even though you got you did really, really well on your first one. You realize it's not always sunshine and rainbows like it looks like on the TV shows.
Tyler Soulliere [00:06:03] No, it's definitely not. And it's only I find in this market in Windsor and I hear from a lot of people, too. It's just it's very hard to make any sort of good profit like you used to because there's so many people that are looking out because of the properties. And I mean, there's always multiple offers on any property that needs work in this area. So I need to find a property you can fix and flip. It's harder these days, right? A lot harder. And I just Richard's right. So and I'm not a handy guy, so I've always been a guy to outsource a lot of this work. So coming into this, that was something that I can take advantage of my time renovating these properties. And, you know, I'm working. So it's I'd rather stay home and relax and then go to amount to property renovations. All right.
Dave Debeau [00:06:48] I agree with you 100 percent. Yeah, I did a similar process, but I wasn't doing flips per say. I was doing rent to own deals. OK, but I learned over time it's basically the same thing. It's a it's a slow motion flip without having to necessarily lift a hammer. I had the same challenge. Right. So you you do all this work, you get this deal up and going and sure. You make a a few bucks for the cash flow, you make a little cash at the end or whatever. Maybe if everything works out right. But you lose all of that benefit as soon as soon as you sell the sucker that you have to start all over again. Right. You've created another job for yourself. So.
Tyler Soulliere [00:07:26] Yeah, exactly. And that's that's very true. Ray, if you keep flipping properties, it's not really a passive income. Right? It's always after all, that's going to
Dave Debeau [00:07:35] be amazing at it and all the power to them. But for long term wealth generation to be able to do what you're doing right now, it ain't going to cut it.
Tyler Soulliere [00:07:43] So no, it's not. And I reached out to people and people that like to flip properties continuously. I mean, you're always doing the work to get that big paycheck. It's almost like which might not be all that big at the end of the. Exactly. Yeah. And I think the last one I flipped was two summers ago and I think I walked away with three in my pocket because the week before I was able to sell it, a pipe burst in the basement and had to be up the whole front yard and they went six grand. And it was like and that was myself doing a lot of the labor. So I think I made five bucks an hour like I was. I'm done flips no more. I'm not going to try to be aggressive. I went very aggressive on the resale price today and my purchase price then went aggressives because I was in a bidding war and I said, no, I'm just going to stick to these long term holds, buy them for potential value. I guess I would say that's kind of where I went for the last. The last probably about a six oh six here. It was more or less the rents weren't great, but I could see three to five years easily. I can increase those rents. And when you're looking at multiple properties, cap rates and the value of the properties, so I can increase the income, I can increase the value. And that's kind of my strategy. I actually called it the B higher mass of the Bible and improve the refinance method. And that's kind of what I've I coined the Love Me a year ago. It just kind of that was the where I went with my strategy because I found, you know, renovating any properties as a contractors, trade labor materials are all getting more costly. So I look for these kind of almost hidden gems that you would say that I don't need to do any work the return key when I buy them. But I know I can add some paint here over the years and then slowly hold on for a couple of years till I can tell all new tenants move in and I almost payslip for undervalued properties. Right. So that strategy is working good for me and it's a little longer process of flipping or beach or blurring. But I'm right now I'm like that size a lot bigger. I don't have to rush in and try to make money now. Right. So right
Dave Debeau [00:09:59] behind. So remind me about the what the letters stand
Tyler Soulliere [00:10:03] out a by a hold improve over the years and then refinance or sell. So I call it to be. I hold improve, increase rents. That's kind of what I now focus on. So this property I just bought, its tenants are still there even during the pandemic. They've all paid. So I'm not making a ton of cash flow, but mortgage is being paid down and eventually tenants will slowly Ramoray me up.
Dave Debeau [00:10:32] So, yeah, you're in a challenging market because, you know, Ontario's very, very tenant friendly. Yes, landlord friendly. So the amount you can increase your rent on existing tenants is miniscule. But once you get them out, once they leave, then the new person that comes in, you can put them in at market rent. Correct.
Tyler Soulliere [00:10:51] And I am buying these for less headaches. So I'm not looking to cash for keys. I've done that. I'm not illegally trying to kick them out by doing renovations. I mean, these are things you can do. These are things I've done in the past.
Dave Debeau [00:11:04] Not the illegal stuff.
Tyler Soulliere [00:11:06] No, not the legal stuff, but the cash for keys. Right. But it's like you said, it's very pro appropriate tenant here. So I don't want to mess around with, hey, we're going to do renovations in this unit and they legally have the right to come back. Right. So I don't want to do this rather than that. I'm just kind of slow and steady wins the race. And it's done that very well for me. Right.
Dave Debeau [00:11:26] So, yeah. So I hear you had a big honor a few years ago and you were named the Canadian Real Estate Wealth Magazine Investor of the Year. Tell us a little bit about that.
Tyler Soulliere [00:11:37] That was yes, that was really my first year in the business. But like I said, it snowballed when I bought my first duplex. I just went kind of gangbusters and started buying more and more properties. So the first flip, I ended up taking that profit and buying two more properties. And back then when I was beginning, it was like, how do I build up a portfolio big enough to get to where I can step away and have that passive income? So that's kind of where in the beginning I didn't have that buy and long term hold strategy. I do now. It was like most people when you get started, I got to make some money. So it was basically to buy triple our method. So that first year I think I bought 15 properties. And I think my wife said something came across or that, hey, you should you should apply for this a war. And I'm like, OK, I'll fill out the form. I filled the form. Then they nominated me and I went to the event in Toronto and I thought I was going to win the newcomer of the year. And I didn't win that. I was kind of bummed. There's no way I'm going to win the best of the year. And sure enough, my name gets called that nice. Just kind of like shocked because there's a lot of people that have been investing in real estate and you just kind of like, wow, humble, like, wow, there's so many good investors out there that have done so many things. And, you know, me being just starting really just learning the ropes as I win in a lot of mistakes. Oh, they deserve this award. Like, I, I don't feel like I, I made so many mistakes in my first year investing in real estate, just just kind of winging it.
Dave Debeau [00:13:07] So so to do 15 deals in a year, where did the capital come from for that. Were you working with investor partners, self financing, recycling your your money? How are how are your capitalizing these deals.
Tyler Soulliere [00:13:20] So I worked for five years just in eight to five, just kind of always saving money. And then when I became a realtor, I ended up buying a home and I put a lot down. And then someone taught me about home equity lines of credits. I had no idea what that was. So I went to the bank and I said, what do you what's your own words? I said, I don't know, three, 300 grand or so. OK, we can give you a whole lot for one hundred grand. I was like, OK, great. So I sat on that for like maybe six months before that. And I use that capital to buy my first property. Right. And that was just a cash property. I couldn't get financing on the forty eight hundred forty eight thousand dollar duplex. So that's kind of really what helped me. I had some savings set aside and I was able to pull equity out of my my personal residence that I was told not to do by almost everybody in my financial advisors. Don't use your new lot. You know what happens if you lose money and you can't pay back? Right. And I ran numbers, right. I learned from a mentor how to look and analyze properties. And I said, this isn't rocket science. It's literally here's what you buy for use. We put into it. Here's are you going to sell for when I was first looking at this, I could do this. So the numbers works. And that's kind of what helped me pull the trigger. I trust the numbers and that's really where I had my capital to, to basically start buying these properties. But as you said, as you're buying more and more properties, yeah, I needed to pull equity out because I wanted to start holding some rental. So that's where I started. Someone came to me say, I want your refinances. I don't even know what that was in the beginning either. What does that mean? Or refinance at a higher value. And then you kind of get pay off the existing mortgage when the difference is what you get back. And I was like, oh, OK, that's that's almost like flipping. So that's kind of I would kind of, like you said, basically recycle the funds that I had put on equity or sell properties. And at one point, you I had like five properties on the go, and I'm just like I said, when I won that award, I had so many mistakes. I was using credit cards to pay contractors. You know, I was just I was very leveraged. But that was very, very a stressful time that first year. So winning that award was really nice. Like, it was like, wow, all this hard work, you know, it was nice to be honored for it. Right. Because it was not easy for Tyler.
Dave Debeau [00:15:37] Time flies when you're having fun and people to know more about you and what you're up to. What should they do?
Tyler Soulliere [00:15:43] I mean, I had my website, Ibtissam investor dot com that, you know, it's just kind of a standard website. I've worked with partners in the past. That was one thing I did. I did take some partners on when I in that first year to buy two mixed use properties. Right. Because you need more capital for when you're buying more expensive property. So that was one way to leverage that. And I'm always looking for more partners as well to continue buying more properties. That's one good way to reach out to me. And I just like talking to real estate. So really, I still give people just give me a shout and I like to just, you know, help them get started at a guy called me last week. How do I how do I get started and, you know, just chat for half an hour and try the best I can to help other people get to where I am. Right. Because they see that and he's like, how do I get out of my my everyday job? How did you do it? So that's something I just like to really share with people. So that's one good way to reach out to be right there, a website and they can find out more and contact me.
Dave Debeau [00:16:37] Sounds like it sounds like you might have a book in there.
Tyler Soulliere [00:16:40] Possibly. Possibly. There is a draft book that I actually did start along a couple of years ago. I never finished it. It's just the draft.
Dave Debeau [00:16:47] Your maybe maybe it's time to dusted off some talent. Thank you very much.
Tyler Soulliere [00:16:51] Well, thanks. They appreciate it.
Dave Debeau [00:16:53] All right, everybody, take care. And we'll see you on the next episode of. Well, hey there. Thanks for tuning in to the Property Profits podcast. If you like this episode, that's great. Please go ahead and subscribe on iTunes. Give us a good review. That would be awesome. I appreciate that. And if you're looking to attract investors and raise capital for your deals, that may invite you to get a complimentary copy of my newest book. Right back there is the money partner formula. You got a PDF version at Investor Attraction book, dot com again, investor attraction book, dot com ticker.