Patrick Francie
speaker
118 appearances
1 recordings
1 series
first heard May 2025
last heard May 2025
Patrick Francie’s voice in public audio — every appearance, attributed to the second.
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Appearances
put our capital to work, leverage our capital through that whatever mortgage program you might have, 20% down, 5% down, 25% down, whatever it is, and you're going to leverage that capital into the future and own that hard asset knowing that when you've got a strong economic fundamentals, and I'll give you some parameters for that, that we know real estate will generally appreciate in value.
So in a simple,
context of buy and hold you're going to buy that piece of property today in a city and you're going to go a minimum of five seven ten or even longer years into the future and get a return on that investment of capital and because it's leveraged you get a bigger gain now how do we look into the future what do we know drive real estate it's not rocket science but some people don't think about it population growth driven by gdp
because people move into areas where there are jobs. And when people move into an area generally, especially immigrants,
have to rent and they have to rent because they may not have a credit rating when they come into the country or into a state whatever it might be or they don't have a credit rating they don't necessarily know what their job is is it sustainable culturally they go well i don't even know where my people live like i want to so they rent for a couple of years so that drives rental demand up and we want to be the rental housing provider that
We operate as a business and people rent that property from us. We get cash flow, hopefully at least a little bit of cash flow. We get mortgage buy down and we get appreciation. That's in the most simple explanation.
Those are all strategies and tactics. So yes, we taught many different strategies, many different tactics. uh depending on what your goals were you know we also i'm part of an initiative called the self-funding house because our affordability particularly here in the country where we have an average house price of 780 000 across the country
the point of injury for you know that cohort of under 40 year olds is like we'll never own a home we'll never have that you know white picket fence in the backyard we can't afford it here in vancouver you know you're almost buying a teardown for 1.2 million so that's the challenges so we then said okay well there is a strategy most are familiar with it but they're uncomfortable with it so we educate people in what we call a self-funding house which is nothing more than
Buying a property with an ADU, an additional dwelling unit on it. And that could be a basement suite. It could be a laneway home as in a coach home. Something along that lines that really supports the home owner, the new buyer, being able to live in that house. offset their costs and be able to get financing because the bank looks at it.
And when they go to get that financing, they say, okay, well, you're making a hundred grand a year. Oh, you're a little bit short on that particular house. You know, your affordability, you can only afford, you'll only qualify for a $750,000 mortgage. But the next thing you know, if you can get an extra $2,000 a month in rent, they add that to your income. So they, it's called a rental offset.
And then all of a sudden you can afford an $850,000 house. And because you've got that rental offset and the bank looks at that as a positive. So it's a way to own that home, hang onto it for five, seven, 10 years, work your way through it. Then you might just say, okay, I'm done. I'm gonna keep that as a rental property, put it into my portfolio, hold it as an asset. Now I'm gonna go buy my home.
And that's how that is. And by the way, in Canada, Because that's your principal residence. If you were to sell it, you don't have a capital gain.
Similar, different programs.
Well, let me, I'll share this with you and then I'll ask you this question. So when I first got into business many years ago, 40 some years ago, I had my first business and it was doing relatively well. I was working hard and doing all the things that we do in business in a You know, I'd surrounded myself with some really great people. They were business owners and many of them very successful.
And my observation of those individuals was that regardless of how well their business did, they all owned real estate. And so I looked at that and one day I had a conversation with my friend and a friend of mine and he says, well, you know, he says, ultimately, what are you doing with the capital that you're making in your business? What are you doing with the profits?
How are you reinvesting in the business? Got it. You're paying yourself well, got it. But how are you preparing for the future? Because ultimately you don't have a retirement plan and you hope to one day probably exit your business and sell it. That may or may not work out. But on,
the other hand you know the way to safeguard that is to have other investments and real estate is the way to do that so for me i got into investing in real estate because of that kind of fundamental thought process so when you look at you yourself how much real estate do you own oh um let's see i've got two two small apartment 120 i got probably
I rest my case because it makes sense to do that, to park your capital. You know, there's a fundamental and you know this as well as anybody is, you know, we think that our capital property prices and our assets are increasing in value. I mean, arguably, it's really the devaluation of fiat currency. And I mean, that's not a new concept.
It's just really in our face the past several years that we realized that our dollars are being devalued. So whatever the reason that is, we can debate that all day and blame banks and central banks and politicians and do all the things that we want to do. But ultimately it's up to us to go, okay, this is the environment we're in.
These are the crap decisions that are being made that we don't have control over. So how do we play the game and win the game? And the way we do that is buying and owning stores of value, what we call assets and real estate happens to be one of those assets. You a fan of Michael Saylor? Oh, a huge fan of Michael Saylor. I've made a lot of money off of Michael Saylor, so that's just me.
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