Manage episode 339431893 series 2570043
Today's Guest: Evan Ungar & Jordan King:
Evan and Jordan are two millennials who have been investing in real estate for four years and have grown most of their portfolio within the last two years. They have grown to $15M in current holdings and have transacted over 65 units. Evan and Jordan love to teach people how they too can be real estate investors and get into the market. Their short-term goal is to have over $100M in holdings and build a network of investors that they can teach and help. They are partners at Tuk Capital, Tuk Developments, and Choice Renovations Canada and certified mortgage agents with multi-million-dollar holdings in the Greater Toledo area. Evan and Jordan are considered passionate entrepreneurs and business strategists.
Highlights From The Show:
We begin the episode with Evan and Jordan sharing their background stories and how they ended up in real estate. Evan shares that they have been working together in multiple businesses, but they have been in the estate business for four years now and aggressively pursuing it for the last two years. Evans was in athletics, and has always been in the gym, in the numbers game, and is very competitively driven. On the other hand, Jordan comes from an entertainment and sports background. He played sports, and was involved in music and production, large shows, and concerts, including trade shows. For Jordan, the excitement is still there, and he finds a lot of similarity in the thrill of chasing the deals, acquisition processes, turning over the properties, and organizing contracts. Their motivation keeps them moving and resilient and moving no matter what comes their way.
We then talk about what Evan and Jordan have been doing, where they are, and the real estate market in Canada. Evan shares that they have completed over 100 deals in multiple avenues, including fix and flips, buy and hold, and BRRRRs. According to Evan, they had some really good timing, and now they are back to an aggressive acquisition phase. He also shares that the market has been taking a turn, they have seen a massive decrease in pricing, and it’s becoming a buyers' market. From his perspective, you can’t time the market, but you can change your investment strategy as the market changes. Right now, Jordan and Evan are more focused on cash-flowing properties because of the uncertainty in the market pricing.
Next, we talk about the availability of capital over the next 24 to 36 months. According to Jordan, capital is getting tighter. Many lenders, especially private lenders, are tightening their grip on certain requirements compared to 6 to 8 months ago when everything was going up. They are more cautious but still doing the deals and putting money out there in the market. Overall, Jordan emphasizes that money will not come by as easily as it was a year ago. He also shares that the pinch in the market is also coming from people who are sitting on cash reserves and buying whatever makes sense to them. The overleveraging of deals is due to worry about where the market is going and what their investment and equity are going to be.
We then talk about Jordan and Evan's sweet spot right now and why. Evan shares that they have a couple of different models, and they use them depending on what fits what criteria. They love the multifamily space, something they got into more recently, and have found long-term value. According to him, it is easier to increase the value of multifamily based on how they are valued and calculated in the market. Evan also shares that they have seen a trajectory with single-family and small multifamily homes becoming valuable rental spaces. Considering that information about homeowners is hard to acquire in Canada, Jordan and Evan do it through in-person and branding techniques such as networking, building credibility in the market, advertising, and driving for dollars.
Next, we discuss what’s next for Jordan and Evan and where they want to be in the next five to ten years. Evan shares that they will be diversifying to the United States to invest in more geographical locations. According to Evan, the landlord-to-tenant laws in Canada are fully in favor of the tenants. The landlord has no control, and some tenants take advantage of the laws because they can’t be kicked out. This increases the risk of investing in rental properties for mom-and-pops and investors without multiple income streams. They want to diversify to areas where the landlord-to-tenant laws are favorable to help them provide top-notch places to live and be paid appropriately and on time.
Lastly, we talk about how Jordan and Evan help people raise capital in Canada. They have worked as brokers in multi-million-dollar deals where clients are looking for extensive capital. At the same time, they also help people get a $20,000 or $50,000 loan. So depending on what you want, they will guide you on what you should look for. Jordan explains that they don’t take on private loans because the fees are so expensive. Instead, they get the money from friends, family, and people looking to earn income on their money.
Make sure you don’t miss another amazing episode of the Just Start Real Estate Podcast with Evan Ungar and Jordan King and get valuable information on how to build a real estate empire through honesty and integrity!
“Your investment strategy changes as the market changes.”
- Evan Ungar
“Don’t stop investing when the market changes. Just be flexible with your investment strategy.”
- Evan Ungar
“Don’t get discouraged with the market; what goes up always comes down, and what comes down always goes up. Get as much knowledge as you can.“
- Jordan King
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