How to Create Wealth Investing in Real Estate
149 Strathcona Ave N, Hamilton, Ontario — My First Investment Property
Since I was in my early 20s I have always been obsessed with how to create wealth investing in real estate. From humble beginnings with my first triplex in 2011 to the recent sale of the last property in my portfolio, my story highlights the importance of discipline, patience, and adaptability in navigating the real estate market. I want to share my personal journey, filled with ups and downs, as I successfully built a portfolio of investment properties in Canada and now in the Caribbean. This article is my story on how to create wealth investing in real estate.
International Village - Downtown Hamilton, Ontario, Canada
Laying the Foundation: Back in 2010, I was speaking with a client who told me they were renovating a castle in Hamilton, ON. At the time, Hamilton was basically a no-go zone for most people in the Toronto area and was always considered the armpit of Ontario. I never did end up touring this “castle,” but that conversation did motivate me to jump on Realtor.ca (MLS) and then eventually take the 40 min drive out to Hamilton. Immediately when I arrived in the downtown core of the city, I was blown away. It was a rough city, but it was filled with beautiful old buildings, 1970s office towers and historical monuments. But the area that really excited me was the North-End waterfront neighbourhood recently rebranded West Harbour.
Celebrating becoming a full-time investor — Partagas Series E, №2 in Barcelona, Spain
Taking the Plunge: A year earlier, I purchased my first home at 24 years old in Oakville, Ontario, and I was immediately hooked. The second I was able to refinance the home, I took the proceeds and acquired my first investment property in Hamilton, ON, which laid the foundation for what would become my portfolio. However, it wasn’t until 2014, after leaving my previous career, I dedicated myself to growing my real estate portfolio full-time. I started small, investing in homes and converting them into tri-plexes, but I gradually expanded into converting larger properties into multi-unit buildings. By 2017, I ventured into more diverse opportunities, including mixed-use and commercial properties.
433 King St E, Downtown Hamilton, Ontario
Focused Investment Strategy: A key aspect of my success was my laser-focused investment criteria and overall strategy. It was simple really — buy and renovate the property for less than it would cost to build a comparable new structure, and the land was free. I meticulously evaluated potential properties based on specific factors, such as location, pricing, discounts, and value-add opportunities. I honed in on a specific geography, focusing on properties within a 20-block radius of downtown Hamilton. This strategic location ensured a favourable investment environment. I targeted residential properties priced below $200 per square foot and mixed-use/commercial properties below $100 per square foot. I aimed to maximize the potential for adding value through renovations, change of use, and repositioning.
15–17 Duff St, Hamilton, Ontario
Disciplined Decision-Making: One of the most valuable lessons I learned throughout my journey was the importance of discipline in decision-making. I’m not sure where I learned this, but with the limited capital I had I knew I only needed 2–3 deals per year. This mindset taught me patience. Although tempting opportunities outside my investment criteria, I remained disciplined in my approach. It was this commitment to my investment criteria that allowed me not to get wrapped up in unprofitable projects and allowed me to keep the money flowing.
277 East Ave N, Hamilton, Ontario
Growth and Expansion: With five years of dedicated effort, my real estate portfolio grew from a single triplex to a $15M (CAD) portfolio comprising multi-family, mixed-use, and commercial assets. This growth (and eventually exit) proved my ability to identify lucrative opportunities, make sound asset management decisions, and capitalize on them. By 2018, my portfolio had become more hands-off, allowing me to take on consulting work, travel, and explore international investment opportunities outside of Canada.
Downtown Hamilton Skyline with Views of Lake Ontario
Selling my Portfolio: In 2020, after living abroad and travelling for three years, I faced a difficult yet pivotal decision. The real estate markets in Hamilton and Toronto had become increasingly speculative and no longer fit my investment strategy. Recognizing the changing landscape, I made the bold choice to cash out and aggressively prepare my portfolio to sell. Some of the properties that were not yet renovated but had already doubled and tripled in value (click here to learn more). It was hard to sell these unfinished buildings because it felt like leaving money on the table, but it turned out to be the right move. During 2021, and early 2022 I sold 90% of my portfolio.
They call him Steady Eddie. What a guy.
The Importance of Support: Throughout my journey, there were many difficult moments and dark times. I need two hands to count how many times I went all in. I couldn’t have done it without the support I received from close friends and advisors. There were many pivotal moments where this support was critical, including quitting my job in 2014, taking on private debt in 2016, and in early 2020, being convinced to deleverage, realize profits, and improve my cash position. All of this advice and perspective played a crucial role in my success and taught me how to create wealth investing in real estate.. Their guidance and counsel during critical moments were invaluable.
Enjoying the view in Bali, Indonesia — May 2020
In Conclusion: My personal journey as a real estate investor highlights the power of discipline, patience, and adaptability in building wealth through real estate. From acquiring my first property to developing a multimillion-dollar portfolio, my strategic approach and commitment to my investment criteria paved the way for success. But out of everything I learned along the way, the most important was leveraging a supportive network of friends and experts along the way. This was the key factor that contributed to my expertise and resilience. I really hope that other real estate investors can draw inspiration from my story and apply the valuable lessons I learned to their own real estate endeavours.
Nobu Barbuda, Barbuda, Antigua and Barbuda
In the next chapter of my investing career, I’m taking all of the lessons I learned in Hamilton on how to create wealth investing in real estate and applying them to building a real estate portfolio in the Caribbean. The opportunities in this region feel similar to the Hamilton market in 2011, offering exponential growth. With my proven investment strategies, laser-focused approach, and disciplined decision-making, I am confident and excited to bring others on this new adventure. The Caribbean is an untapped market with a wealth of opportunities. I know that by leveraging my experience and growing my network in the region, I am confident that I can replicate and surpass my past successes.
I invite any investors or real estate professionals looking to learn more about my vision and investment strategy in the Caribbean to reach out and set up a quick call. I’m easy to find.
Bio
International Real Estate Investor and Entrepreneur.
Founder @Offshore Freedom | Host of the @CaribbeanRealEstatePodcast
We help successful investors and entrepreneurs live and invest tax-free in the Caribbean and buy real estate internationally.
Schedule a consultation with Dan Merriam, and let him help you design the life of your dreams and achieve Offshore Freedom™. Ask questions and get answers about lifestyle design, tax planning, banking, international real estate, second residencies, or citizenship by investment.
Writer on Medium in Tax Reduction, International Tax Planning, Travel Hacking, Citizenship by Investment, Second Residence, Real Estate Investing, Real Estate Development, Asset Management, Lifestyle Planning, Company Formation, Offshore Banking, Asset Protection, Technology, Entrepreneurship
This article is for informational purposes only; it should not be considered financial, tax planning or legal advice. Consult a financial or investment professional before making any major financial decisions.
