Jan 09 2025 26 mins 1
In this episode of A Canadian Investing in the US, we discuss Brooke's transition from investing in Ontario to focusing on other regions and passive investing in the US.
Leaving Ontario for Other Markets
Brooke moved out of Ontario's real estate market due to challenges, including:
Landlord-Tenant Board (LTB): Ongoing disputes and difficulties with enforcement, even when rulings favored landlords.
Poor Cash Flow: High property values and refinancing often erased rental income.
Airbnb Regulations: Changes in short-term rental laws created additional hurdles.
Investing in Alberta and Beyond
Brooke turned to Alberta for better cash flow, though it has become more competitive.
She has also invested in Winnipeg, the US, and Asia:
In Asia, investments were accidental (family-owned properties turned into rentals).
US Passive Investing
Brooke has consistently focused on passive investing in the US, including:
Flips: Initially as an equity partner in Florida, Ohio, and Phoenix.
Private Lending: Provided second mortgages, earning returns of up to 18%.
Limited Partnerships: Transitioned to more secure structures for passive income.
Lessons Learned
Early deals were riskier but provided valuable experience.
Promissory notes: Brooke no longer recommends these due to lack of security and risks in volatile markets.
Preferred methods now involve secured lending (e.g., registered mortgages) to mitigate risks.
Partner experience and deal details are critical in evaluating investment opportunities.
Advice for Passive Investors
Understand the market, the operator, and the deal specifics.
Avoid blindly chasing high returns without assessing risks.
Secure investments (e.g., registered mortgages) provide greater protection.
Continuous learning and due diligence are essential to making better decisions over time.
Leaving Ontario for Other Markets
Brooke moved out of Ontario's real estate market due to challenges, including:
Landlord-Tenant Board (LTB): Ongoing disputes and difficulties with enforcement, even when rulings favored landlords.
Poor Cash Flow: High property values and refinancing often erased rental income.
Airbnb Regulations: Changes in short-term rental laws created additional hurdles.
Investing in Alberta and Beyond
Brooke turned to Alberta for better cash flow, though it has become more competitive.
She has also invested in Winnipeg, the US, and Asia:
In Asia, investments were accidental (family-owned properties turned into rentals).
US Passive Investing
Brooke has consistently focused on passive investing in the US, including:
Flips: Initially as an equity partner in Florida, Ohio, and Phoenix.
Private Lending: Provided second mortgages, earning returns of up to 18%.
Limited Partnerships: Transitioned to more secure structures for passive income.
Lessons Learned
Early deals were riskier but provided valuable experience.
Promissory notes: Brooke no longer recommends these due to lack of security and risks in volatile markets.
Preferred methods now involve secured lending (e.g., registered mortgages) to mitigate risks.
Partner experience and deal details are critical in evaluating investment opportunities.
Advice for Passive Investors
Understand the market, the operator, and the deal specifics.
Avoid blindly chasing high returns without assessing risks.
Secure investments (e.g., registered mortgages) provide greater protection.
Continuous learning and due diligence are essential to making better decisions over time.
