Epic Real Estate Investing - When Your Strategy Is Conservative But Your Profits Are Genius | Patrick Francey | 1341

Episode Date: September 4, 2024

In this riveting episode of the Epic Real Estate Investing Podcast, host Matt Theriault sits down with Patrick Francey, CEO of the Real Estate Investment Network (REIN) in Canada. Patrick, a seasoned expert, dives deep into the world of real estate investing, sharing his journey from business to becoming a key player in Canadian real estate. Discover the power of long-term buy-and-hold strategies as Patrick unpacks the economic drivers behind the Canadian real estate market, including GDP growth, job creation, and infrastructure development. He also sheds light on the unique differences between Canadian and U.S. markets and the influence of local politics on real estate dynamics. Plus, learn about cutting-edge investing techniques like agreements for sale that could transform your approach to real estate. Whether you're new to Canadian real estate or looking to refine your investment strategies, this episode is packed with insights you won’t want to miss. Tune in to unlock the secrets of successful real estate investing with one of the industry's leading experts! Learn more about your ad choices. Visit megaphone.fm/adchoices

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Let's go. All right, welcome to the Epic Real Estate Investing podcast. I got a special guest for you today. Mr. Patrick Francie. Patrick, welcome to the show. Thanks for having me. Glad that we made it and we're able to make this connection. And you're in Canada, right? I am in Canada. This is great. I could use this as a little bit of a self-serving interview. I have a few students from Canada. And they always asked me questions about Canada real estate. And I'm like, eh, I don't know. Never done it before. I can help you. Cool. Yeah. Please give me a little bit of background of how you got into.

to real estate, what you're doing just before that, and how it inspired you to get into real estate? My background is, you know, in business overall. So I've been in business 40 years. And while I started 40 years ago, we just celebrated our 40th anniversary, if you will. Having said that, I own a couple of different businesses. But I don't know, it was about 25 years ago, I guess that when I was having a conversation with some of the people that I know and some really successful entrepreneurs, what I started

to kind of realize is that regardless of how successful they were in the business, you know, their businesses and some of them actually generated many millions of dollars a year, they all ultimately held real estate. And through that conversation, I got to understand that in business, as much as we have exit strategies and we have, you know, what is it going to look like? We really don't know. And somebody pointed out to me, they said, you know, Patrick, at some point, whenever you decide to retire, quote unquote, or slow down or whatever that might be, exit your business, you know, you don't have a retirement fund or retirement plan. So one of the things that you might want to consider is investing in real estate.

So back in literally in 1999, I started looking into investing in real estate. I came across the real estate investment network. And a little bit of a cliche is that, you know, I like the business so much that I bought it in 2014. Along the way I built my real estate portfolio, I got very into the world of investing in real estate operationally and understanding. why I wanted to invest in real estate, you know, how did I manage risk? How did I, you know, use real estate to kind of achieve my end game? Now, I was never a full-time real estate investor. That was never my goal. Business was my goal. Real estate was just something that I did. So my strategies were always longer term. I didn't do really, I had a couple shorter term plays,

but mostly I was into long-term. So when I looked at buy and hold strategies, whether that be single or multifamily, light industrial, it was always a long-term. place. So that's kind of the cold notes of how I got into it. And then the education part of it was just because it's what I like to do. It's what I got good at. And so to this day, I own the Real Estate Investment Network, been around 30 plus years. Very good. What is the Real Estate Investing Network? And who is it for? Well, the Real Estate Investment Network has different parts of the journey, but ultimately it turned into the fundamental understanding that many people want to invest in real estate, but they don't know how, they don't know why.

You know, they've talked to their father-in-law or their neighbor or somebody they work with, and it's like, just buy real estate, it always goes up, you know, that kind of really high level. It's great advice, by the way. Great advice. And so what we really started to kind of sink our teeth into is, what is the system, what is the process for investing in real estate so that you could, in fact, mitigate risk. We're really clear on the how-toes. and then follow a proven system.

So as investors, we said, you know, ultimately we want to look at where real estate is going. We don't really care where it has been. I mean, it's kind of an interesting point to know. And we don't even really care where it is today. As much as we say, given where it is today, we want to know where it's going so that we can decide geographic regions that we want to invest in. We want to look and say, what is the strategy? I'm going to look at investing in.

And based on the real estate cycle. So we look at and what I've gotten, I have a team around and myself, spend a lot of time doing as the economic research, looking at what drives real estate. Now, within the economic fundamentals that drive real estate, you've got the long-term fundamentals, and then you've got influencers and two different things, but each has an impact on real estate.

So as an investor, and if I'm looking into the future of where is this investment going to go, I'm going to buy a multifamily or a light industrial or whatever I'm going to invest in in terms of real estate based on a strategy. Let's say it's a long-term buy and hold. What do I see the next 10 years looking like economically within that geographic region? So one of the foundations of all that, Matt, is that we often hear it. You hear it in the U.S. You hear it in Canada. Hear it every well.

The average price of a U.S. piece of real estate is X amount of dollars. And quite frankly, who gives a shit? You know, it's like the average temperature of the United States is X. Okay. What is it in California versus the other end, you know, in New York? Like, it's totally a different geographic location. And that's what real estate is about. So we don't care about averages.

We really look at specific geographic regions. At someone screaming at me, at least I imagine they were screaming at me in the comments saying that when I said real estate, the median price is up. He said, what do you mean? It's down 32% in my market. That just means it's up 32% somewhere else. That's how the median works. That's good.

Have you invested at all in the United States or are you just Canadian? You know, I haven't. And it's interesting that you bring that up because I've looked at it and I've just never been inspired to do it. Having said that, I've looked at a couple of different private reits and trust that I have, and I'm literally doing some diligence now on a couple of deals that are out there to go into the U.S. The system that we use, when I'm looking at research, the system in terms of of the economic fundamentals works in any first world country.

So certainly the U.S. falls under, if I'm doing my research on any given city and any given state, I'm still going to follow the same fundamental protocol, which is looking at those economic fundamentals that impact real estate. Yeah, from my Canadian students, they'll ask me questions. Like, can you do this? Can you do that? And I was like, the fundamental is the same.

It's people. They need shelter. They live in houses. And either you're going to be in a market that has more houses than people or more people than houses. And that kind of governs the whole thing. Am I accurate in saying that? Is that how it works in Canada?

Well, I think at a fundamental level, yeah. I mean, when we look at what we say, okay, here's what drives real estate ultimately. Okay, we look at the economic conditions of a region. So we look at GDP growth. I mean, that is kind of one place to hang your hat on and start to look at it. Now, GDP is always a lagging number and it adjusts and all the rest of it. But when you look at a positive GDP number and when we say what is gross domestic product, We look at it, every talks about it.

To keep it simple, it's really a snapshot of the economic health of a region, of a state, of a city, for example. So when we see positive economic growth, that means there's some productivity happening. And if there's productivity, it means their jobs. So when you have strong GDP growth, it means you have jobs, which means that you're going to have population growth, because people are moving to that region because they want to work. And in the scope of people that are either immigrating from another country or they're immigrating what we would call it interprovincial, but whatever interstate migration, so people coming from one state to another, they're moving there because there's work to do, it's affordability

perhaps, there's things to do. But ultimately they need jobs, and that's one of the reasons that they're going there. So when people move into a region, they're usually about an 18-month to two-year lag between renting and then ultimately buying. There's a couple of reasons for that. First and foremost, somebody moving in from another country, they don't have a credit rating, they may not have cash, they can't go to the bank and get a loan. They culturally don't know where they want to live because if they're coming in from another culture, they want to find their people. They want to speak your language, practice, whatever religious beliefs they have, eat their food, do their

thing, and it takes time for that to happen. You got to nail down and say, okay, I've got to establish your credit rate. So that usually takes about a year, two years. years, 18 months to two years. Now, having said that, anybody moving into that region, what are they going to do? They're going to rent. And so we as what we refer to, and I'm changing the term from landlords to being a rental housing provider, doesn't it sound much nicer than a landlord? Yeah, it's like going from homeless to the unhoused. I'm not a landlord. I'm a rental housing provider. I'm solving problems. And as a rental housing provider, I'm opening my doors to those individuals can't afford a home, don't have a credit rating to buy a home, are transitioning, need a place to live,

and I'm providing housing for those individuals. And so when you have that kind of fundamental foundational, then what happens is after about two years, so when you have people moving into a region, what happens? Vacancy rates drop. In other words, you know, you may have a 5% vacancy rate and it drops to, let's say, 2%. But when you see that vacancy rate go down, what ultimately happens, rents go up. And so when we're looking at investing in real estate, what do we want to do? We want to invest in a region where we see strong GDP job growth happening, where we see the demand for rental going because of those jobs. Because if people are working, they can afford to pay rent. Then after about two years, those people start to establish themselves, those renters,

and it's always a cycle, it's always a churn. And then that's why we see real estate prices start to go up because as people get established, they get a job, they go, okay, I'm tired of renting, I want to own my own backyard. So then ultimately the demand for buying real estate goes up, and that's the wave that ultimately that we're riding in a buy and hold scenario. So that's kind of the fundamentals of it. That's the long-term economic fundamentals. And then we look at one other aspect of that, which is the influencers. Now, influencers are shorter term. things like interest rates, politics. You know, municipal politics has a big impact on that,

something that might be happening, an event, you know, maybe somebody's hosting an Olympics or some other kind of big sporting event, for example, where they're building infrastructure. And then we also look at the municipal part of it as well, Matt, is that when we look at the economic development office of a city, how progressive is that mayor or how progressive is that council? Are they saying, no, we're committing to LRT systems.

We're committing to expanding highways. We're committed to building infrastructure. That represents jobs, by the way. But when we look at infrastructure being built out, we start to see, well, you build a highway? What does that do? It speeds things up because people don't measure distance so much anymore. It's time. It's not 25 miles.

It's 20 minutes. How long a drive is it? That's generally how things are. And then as you open up access, that's where you see the possibilities because people will move and go into those areas that didn't have access before. And that's also an exciting opportunity within the world of real estate. So it's about seeing the future. Where are things going?

And that's some of the basics of how we do that. Right. So really just follow the people. Follow the people. All the jobs, follow the people, right? Exactly. What's the Wayne Gretzky quote? Go where the fuck is going.

Yeah, go where the fuck is going. There you go. Go where the people are going. Very good. You're a hockey fan? One of the businesses I own is called Pro Skates. So it's a specialty shop. Caters to mid to high end hockey and figure skaters.

Got it. That's almost a requirement to get your citizenship there, I think, right? Exactly. My son took up hockey. We came to Vegas. We moved from Los Angeles to Vegas. We got the Golden Knights who were kind of a, when they first got here, from what I understand, They were kind of a team of misfits.

Like everybody, all the other teams contributed players to build this team here. They got all the way of the finals. And they've done some miraculous things. It's a big deal here in Vegas. It's like a hockey town. So my son took it up. And I was like, oh, gosh, now I got to, I know basketball, I know football, I know baseball. I didn't know anything about hockey.

So I had to learn a whole new sport. Actually, I had a couple stores in Colorado when the Avalanche first launched. And so we had stores in Colorado. So, yeah. I know what happens. Yeah. I mean, if you look at probably, I'd say 30% of the license plates here have something to do with the Golden Knights on the fire. The Knights are the Raiders.

The Raiders have come in and taken some of their thunder. But anyway, all right. So we were talking about hockey for the Grets Creek quote. So you said something here. And I'm trying to create some relatability here between Canada and the United States. I think there's some crossover in the relatability is one fundamental mat. And that is that when we look at real estate, we have to consider the reason we're investing in real estate. That doesn't change.

If you're in U.S. or Canada, what is the reason that you're investing in real estate? And if having now had a couple hundred thousand people go through our programs and the coaching that I've done one-on-one, one-on-one, one-on-many, you know, we used to do 50, sometimes even 60 events a year, the point is, is that the crossover doesn't change. We have to look and say, well, why do we want to invest in real estate? The mistake that often that people make is they buy into this thing, they're going, I'm going to buy a property, it's going to cash flow five or six hundred bucks a month or a thousand bucks a month, and I'm going to just pocket that money. You and I both know that that's a narrative that sounds good, but it rarely, if ever, applies, especially in the first five, six, seven years of owning a buy and hold property. So they go into it thinking, well, I'm going to generate income today when really the fundamental understanding, is that a buying-and-hold property is not about income today. It is about income in the future.

So the point of that is that it doesn't matter where you're investing in real estate, be clear on what it is that you want real estate to do for you. In other words, if you're looking for some kind of an income strategy, something that's going to supplement income today, then buy and hold, probably not the best strategy. You know, there's where you're going to look at rent-on. You're going to look at fix-to-flip. You're going to look at fix-and-flip.

You're going to look at wholesaling. You're going to look at bur. You're going to look at something that is shorter term as generating revenue. You're building equity. You're forcing equity into something that you're going to sell within a year or two, maybe three at the most, depending on whatever, what it is that the strategy you've got. So I think there's always a fundamental crossover there that we have to pay attention to. The economic fundamentals do not change.

You know, when you look at what drives real estate, whether it be in the U.S. or be in Canada, you have that. Now, some of the advantages in the U.S. are that your mortgages are different, your rates are different. We have five-year terms. That's kind of the max that we can do. Our amortization is 25 years, max. Sometimes they cheat a little bit around that. But they're far tighter in terms of their lending in Canada than they are in the U.S. And then ultimately, when you look at the point of entry, the point of entry in Canada, if you're into our major cities, not that we have a number of them, we've only got a few. ultimately the point of entry is really high relative to what goes on in the U.S. And we're seeing a flood of investors go into the U.S. for that very reason. It's a price point and it's affordability issue. You know, you'd said something, a couple of things that kind of support each other. You said, you're buying for income as a five to seven year play before you start really experiencing cash flow.

And then you shared the typical mortgage is a 25 year am, right? And that explains it right there because that's going to be a much higher payment. How does the purchase price and rent relationship go in Canada? Well, you've got to work hard to get cash flow in a buy and hold scenario. There's a couple of different rules that we use and rules of thumb. So in other words, we don't want to do analysis on every single property we look at. We'll be wasting our time. So how do you, what is the quick math?

So often we'll use what is referred to often as a 1% rule. And I'm sure that you have some version of that in the U.S. Whereas you look at 1% of the buying or the purchase price of that property. So that's what you need to generate in terms of rent. So you have to have some idea what your rents will be. We also use the 8% rule, which is the same thing. Same scenario, 8% of purchase price. That's got to be the annual rent.

And if you can't get that in annual rent, you may as well kick it to the curb. You know for sure it's not going to cash flow. All that kind of 8 to 10% to 7% to 10% rule is it's a rule. of thumb so that you're not looking at every deal as if it's a possible deal. And that 7 to 10% or the 1% rule just says, okay, this is worth another look given the quick math on it. But cash flow is tough. You're really hard pressed in Canada to find deals with cash flow depending on what province you're in. You get into Ontario, you know, you get into Toronto. When you're spending a million bucks, $1.2 million on a property, getting them to cash flow is not going to happen.

So that's, you have to get into a multifamily scenario in that regard. So what is the median price point of a property in Canada? Gosh, that's a, I want to say $6.80. $6.80? Okay. But having said that, let's give it some context. We've got two of the biggest cities, Toronto and Vancouver, represent. several million people and then Montreal on top of that. Now, Montreal is not as high priced, but those major cities, including Calgary and the other end of the country, those really bring

the averages up. You know, I can go into Edmonton and I can buy a $100,000 condo that doesn't suck. I would not buy a condo. That's not my investment strategy and I don't recommend it, but ultimately you can get into a duplex, for example, for 600,000 by 50 and it cash flows all day long. Now, those deals aren't just everywhere. You've got to find them. You've got to find a motivated vendor. You've got to do all the things that you have to do in terms of executing on that particular strategy. But it is very much doable. You have to stay away from the kind of core of a Toronto city, for example, or the GTA and or Vancouver, Vancouver property. Okay. So there are places where it could work. You mentioned fix and flip and wholesaling, rent to own. You can do all of that

in Canada. Yeah, we do it all the time. We do it all the time. We also do a strategy here called agreements for sale. I don't know if you're familiar. You've probably crossed paths or heard of Ron LeGrand. I've heard it. Ron LeGrand's been in the business. He's kind of a goat.

He may have even retired more recently, but he really developed a strategy called agreements for sale, which is, you know, some think is that, well, is that a, are you taking over somebody's existing mortgage? What is that? And, you know, in Australia, it's referred to as a rap. And that's really getting motivated vendors who are in trouble.

They're in too deep. They got no equity in there. their property, but there's some strong upside. And you actually do what we call an agreement for sale. It doesn't trigger the due on sale clause. And because it's just an agreement for sale and it's all legal. It's wrapped around the existing mortgage. You're not assuming a mortgage. That mortgage stays in that other person's name and you take full control of the property. And that net transaction, do you go on title? You don't go on title because the agreement for sale hasn't been executed. but the agreement for sale is as stands as a caveat on title.

Got it. So that agreement for sale, so it's a wrap, so I understand what that means. So you're wrapping this agreement for sale around a property that has a mortgage on it. Exactly. In that agreement for sale, it's going, would it work somewhat like an option, I guess? Yeah, it's somewhat as an option. It's kind of like an option to buy in the future, but you actually have already made that decision. You then are going to say, okay, well, we're going to hold this for five years.

So in other words, you're still on title. You as the owner. You are still in the bank size. The bank doesn't even know we've done this, by the way. But I'll take over control of the property. I'll be responsible for it. That's all, again, legally binding. It's all kind of decided.

You don't have to qualify for a mortgage. And when you're dealing with these scenarios, as a matter of fact, most often, you're not putting any money into the deal. And occasionally, the vendor is actually paying you to get from underneath it. And so underneath the deal. So those deals happen. They happen all the time. And those who are great at executing on an agreement for sale, finding those motivated

vendors, that's the key to it. And there's lots of motivated vendors for any given reason, any given day of the week, regardless of what's happening economically. Yep. And they just want to get from underneath the pressure. that they feel so you become a problem solver. Often in these scenarios, an agreement for sale scenario, Matt,

is you can actually have the owner rent that property back from you. So, you know, there's all sorts of way to structure that deal. If I've got control of that deal, I can turn it into a rent-to-own deal so that I say, okay, I'm going to rent-to-own this.

I'm going to put a tenant in there. They've got the option to buy. They've paid me for that option to be on that rent-to-own. in three years, they're going to take over the property. They're going to be in a position to get financing and away they go. So we turn that deal in three years or five years of you and rent. And I don't normally recommend that long, but it works. And in a three-year deal.

Now, the point of all of that is it gets you in, gets you out, you've got no money in. You're going to ride the upside of that particular property. You're buying it because you see an upside. And that upside can be because you're going to put some force the appreciation into it of some sort, whether it be an upgrade or whatever that might be. or you're actually getting somebody out of trouble that there is actually equity in the property. They're leaving money on the table just to get from underneath it. And that happens more than we can imagine.

Anybody who's not done these, go, why would anybody do that? There's all sorts of reasons. Oh, no, we know why. That's all we talk about here is how to find off-market deals by motivated. We call them motivated sellers. You call them Benner. Sure. Same thing.

Yeah. Same thing. Okay. I'm trying to think of Ron Lagrang, because I know his stuff pretty well. I learned a lot from him when I was younger. We have this thing called contract for deed, an agreement for deed. We have bond for deed. I wonder if that's the same.

I think that's the same scenario, Matt. And what happened was we had Ron, we brought Ron over a few times to speak on our stage within the real estate investment network. And the strategy was so popular in concept. And then what was happening was many of our community were trying to pull it off in Canada. Some managed to do it. But what we did was we took what Ron was teaching and we Canadianized it. And so a good friend of ours, a guy by the name of Barry McGuire, who's been a real estate lawyer literally for 47 years, has done thousands of real estate deals. He took it off and Canadianized the whole concept.

And we built a program called, it was a focus workshop, but it was ultimately around agreements for sale, rent to own, and doing those what we would call more sophisticated strategies. Got it. I'm going to have to look more deeply into this because we'll do the same thing, but we'll, we call it subject to. We'll go ahead and we'll end up on title, right? And we still have the risk of the do-on-sale cause, but there's a couple ways that you can deal with that. The thing about getting on title, right, and there's nothing you can do that. There's certain ways to do it. But the agreement for sale is literally a legally binding document. What you don't want to do is get the bank involved. Right. Because as soon as you get the bank involved, of course, sometimes I wonder if they can spell real estate. It gets complicated. They don't understand it. There's too much hair on the deal in their words. This can't work. And so when you really look at what an agreement for sale is, it's a deal between the seller and the buyer. They come to an agreement. The buyer has their lawyer. The seller has their lawyer. And collectively, they come to the agreement of what this is. I, for example, and by the way, It really works well for exiting properties where you may have a sophisticated investor who understands and wants to buy your real estate but can't qualify for mortgages anymore. So what you do is you do an agreement for sale.

They have the cash. They've got the down payment. It doesn't mean they'll qualify for a mortgage anymore, depending on how many doors they've got and what they've got going on financially. But they take over the responsibility for the property. They put cash on the table. It's a great way to exit. And if you're not attached to whether you've got an outstanding mortgage, then it works really, really well.

Got it. All right. I found a couple of things online. I'm going to check that out because I just have never thought of wrapping an agreement for sale or agreement for deed around a subject to, basically. Yeah, it's very effective. All right. I teach this stuff, Patrick, and I never heard of that. Listen, you know, we all, there's probably there's tons of stuff out there that I don't know.

And I tell you one thing is that what I've learned over the years, one of the foundations of rain and teaching our investors, and we don't sell real estate, by the way, we're strictly education and economic research. But ultimately, what I've learned is that when you get investors who treat it like a business, that's one of our foundation is treat your real estate investing like a business. Quit treating it like a hobby. Yeah, it's a side hustle. I don't care, but treat it like a business. And as we've learned over the years is that some individual, some people who really take this on, they're very, very astute. And they figure shit out. Like, they really get a handle on it. And the next thing you know, there's all sorts of creative stuff going on. And it

blows my mind of some of the deals I get done. No, I mean, we get pretty darn creative over here. And people ask me all the time, like, how did you learn all this stuff? Like, I didn't learn it all in one day, that's for sure. Each year you pick up an extra little nugget. I'm trying to just wonder what the advantage of here is of using wrapping an agreement for sale around a subject to, and I guess it's just another strategy so we don't alarm the banks, right? That's it. That's it. And like I say, if you do it right, you're getting in very light. You're getting in very light. Ultimately, in many scenarios where you're putting very little money into the game because you're not, number one, qualifying for a mortgage. Number two, you're buying it from at some point a distressed seller generally.

And you're getting in in a way that you're not having to put 20% down or 25% of those kinds of scenarios. I get all that. Yeah, I get that. Okay. Super. Awesome. You said politics, right, on how that impacts real estate. And we're in the middle of an election year over here.

And everyone's talking about how the two different sides, their plans are going to impact the real estate market. And then we're having a big giant thing with the interest rates on how that's going to impact the market. And capital gains. you're facing the same, you know, Harris is talking about shifting capital gains, which is the same headwinds we're facing in Canada. Yeah, that sounds ridiculous. I just released a 15-minute video on that very thing. It's a slippery slope subject.

Unrealized, what I heard her say, when I heard unrealized gains, I went, are you kidding me? How is that even? How can you even do that? Right. Makes no sense. And so I just want to know how they're going to treat unrealized losses. Yeah, wow. Right?

I doubt that there are a few of those I'd like to share. Yeah. And we could go on for that forever. But when you say if you're going into an area and the politics are progressive, that has a very specific meaning over here. And for a lot of people, it's not really a positive one. But then for a bunch of other people, it's super positive. So what does that actually mean progressive on your side of the border?

Again, when I come back to when you look at an economic development office that is looking at, are they progressive in terms of, are they open for business? Are they there to support small business, for example? And I say small business and I mean, you know, small, medium size. I'm not talking about large corporations. And the reason I say that is because if you're opening your doors to smaller medium business, you know, even beyond mom and pop shops, let's say it's 20 or 50 or 100 people that work there, it represents jobs. Are they building infrastructure? So in other words, you know, when we look at what happens with transit right now, and it has been for years, when you improve the transit system of any city, then it changes the game in terms of how you and where you invest in real estate. So when I'm talking about progressive, I'm meaning it from a perspective of are they business-centric?

Are they into building infrastructure that supports the expansion of that particular city? Because what ultimately what you want is you want growth. You want that city to say, okay, well, when we look into the future of where this city is going, our mayor, our council is driving growth. And that doesn't mean bike lanes. It literally is about productivity and increasing productivity, not bureaucracy. And so here in Canada, I've got very specific examples of where that took place and where it didn't take place. The difference between a mayor that came into a city and was progressive or was very business savvy.

versus somebody who was more socialist in their way of thinking and the costs and the cost of taxes and all the things that that impact. And so when I talk about influencers, politics in Canada is, you know, four-year terms and hopefully, you know, if they're doing a good job, they're in, and if they're not, they're out. And so, and that changes the feel for what's going on in the real estate world. Got it. So progressive on your side of the border actually is the literal meaning of the word. Yes. Because on our side, the progressive would be more in alignment with the socialist thing. Yeah. It's always a spin-out. You got to know the narrative, right? You got to know the language in terms of I use it still old school because I'm an OG, but at the end of the day, the point of it is is you

want economic development in a positive world that's driving productivity. Sure. They're open to how do we improve on the business environment of our city? How do we improve transportation? And how do we manage property taxes, for example? How do we manage costs so we're not having to pass them on to the end user, the homeowner? You talk about such irresponsible stuff. Just common sense, right? Well, yeah.

How influential or relevant or important is the U.S. economy, to Canada is when it comes to real estate? Well, I think when it comes to real estate specifically not so much, but when you look at the impact of the U.S. on Canada's economy, it's a big deal. So economically, as we change trade agreements or have whatever embargoes are on or whatever the story is, oh, lumber, okay, yeah, no, there's an extra 25%. You know, whatever the stories are. And they, politicians pissing in each other's corn flakes and then it affects everybody, right? Right. So the point is, is that, from a U.S. Canada, when we look at the business that we do or don't do, that impacts us.

You know, when we look at some of those things of costs associated, bringing stuff in from the U.S., when the Canadian dollar, like right now, I think we're a buck 71 or, yeah, 71 cents. Those can have an impact. They can slow things down at this end for sure. Got it. Well, it's been a pleasure. If someone wanted to get in touch with you, Patrick, what would be the best way for them to do that? Well, if they wanted to get in touch with me directly, which I'm happy to communicate with anybody,

they just need to email me at CEO at reinkandat.com. So that's CEO at R-E-I-N-Candidat.com. And if anybody wants to just follow along, P-Francy on Twitter and LinkedIn and Instagram, and RaneCandidat.com is, you know, I'm all kind of my podcast, the Everyday Millionaire, which you're going to be a guest on, is another place to find me. Very good. Yes. podcast, then the everyday millionaire. And there's another one out there by the same name, so I want to make sure they end up

at the right place. So it's the everyday millionaire. It's the everyday millionaire. It's the everyday millionaire. It's not that other old everyday. It was the one. It was every day. Very good, Patrick.

It's been a pleasure, buddy. We'll touch base soon. And thanks for being here. Thanks, man. You bet. Take care. And that wraps up the epic show. If you found this episode valuable,

Who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream.

Yeah, yeah, we got the cash flow. You didn't know, home world, we got the cash flow. This podcast is a part of the C-suite radio network. For more top business podcasts, visit C-Sweet Radio. com