Property, Profit, and Power Moves: Ryan Seeley Unpacks Real Estate Insights with James Fernandez on ‘Money Talks’.

Introduction to 'Money Talks with Ryan Seeley' on Rogers TV

Welcome to a new and exciting segment on our blog series that ties into the Rogers TV show, "Money Talks with Ryan Seeley." Premiering this spring, the show takes a deep dive into the realms of personal finance, business strategies, and entrepreneurship. At the helm is our very own Ryan Seeley, CEO of Premier Business Consulting and Fractional CFO guiding leading businesses in Ontario.

Why We're Spotlighting Local Business Gurus

But that's not all we're excited about. This blog series is all about shining a light on local businesses that are making waves. We're talking about the movers and shakers who have valuable tips and insights that could help your business get to the next level. It’s about connecting you with the stories behind the success and the practical advice you can apply.

From revolutionary real estate strategies to innovation in everyday business, these features are a goldmine of actionable knowledge. Whether you're a budding entrepreneur or a seasoned professional, there's something here for everyone.

So let's kick things off with one of our first guests, a real estate maverick who's turning heads across Ontario—James Fernandez.

James Fernandez

Interview Segment: James Fernandez in Conversation with Ryan Seeley

Diverse Investment Portfolio

Ryan: "James, your investment portfolio is impressively diverse. Can you share what guided your decisions towards these particular assets?"

James: "Absolutely, Ryan. I've invested in residential real estate—long-term and short-term rental units—because they tap into Ontario's high growth rate in real estate prices while providing essential housing in a tight market. To complement this income, I've ventured into laundromats and vending machines. They're not just side hustles; they're strategic assets that contribute to a steady cash flow.

I've also diversified into self-storage facilities, a commercial asset class that offers stability. These are particularly recession-resistant, which balances the portfolio against market fluctuations and economic downturns. So, it's about growth, stability, and meeting essential needs—all factors that drive my decision-making in investments."

Navigating Risks in Real Estate

Ryan: "Investing invariably comes with its share of risks. How do you manage the challenges specific to real estate?"

James: "Real estate investing, like any investment, involves several risks. The primary one is overcapitalizing—spending more on a property than it's worth. To avoid this, I approach each property strictly as an investment. This means making decisions without emotion. For example, I might choose laminate countertops over quartz or an acrylic tub surround instead of tile, ensuring the renovations are cost-effective yet appealing.

Another significant challenge is dealing with tenants who fail to pay rent or cause damage to the property. I mitigate this by conducting thorough screenings to verify that potential tenants can afford the rent and have a solid track record with previous landlords. Services like FrontLobby and OpenRoom are invaluable here.

Lastly, a major pitfall is underestimating the costs associated with necessary repairs due to insufficient inspections. To prevent this, I ensure each property undergoes a comprehensive inspection and I budget carefully for any required repairs. This careful planning and diligent management help navigate the risks and secure a more stable return on investment."

Deciding Whether to Buy or Rent

Ryan: "Many of our viewers are torn between buying and renting. What insights can you offer?"

James: "Deciding whether to buy or rent is a big question, especially considering the large upfront investment required for purchasing a home. To get down to specifics, there are online calculators that can help, but a few general rules of thumb can guide you. First, if the interest earned on your down payment equals or exceeds what you'd spend on rent, then renting might be the better choice. You avoid tying up your capital and just use the interest to cover rent.

In today's market, finding investments that provide enough return to cover living expenses just from interest is tough, so other factors must be considered. Another guideline is that if a year’s rent is less than 5% of the purchase price of a comparable home, then renting generally makes more financial sense than buying.

Also, think about your future plans. If you expect to move within a few years, the costs associated with buying and then selling a home could lead to a financial loss, making renting a smarter option. Weighing all these factors together will help you decide whether buying or renting is the best decision for your situation."

Investing in Real Estate Without Buying Property

Ryan: "What advice do you have for those interested in real estate investment but are hesitant to buy property outright?"

James: "Many individuals are keen to get involved in real estate but may not have the capital required for a down payment or to purchase property directly. For those looking for less direct involvement, REITs are a great option. These can be accessed through online stock brokerages and offer a way to invest in real estate without owning physical properties.

Another avenue is RRSP lending, where you can lend to developers or real estate investors.

This method provides income that is often tax-free, adding to its attractiveness. Additionally, investing through private loans or partnering with individuals on specific projects can also be fruitful.

However, it's important to note that each of these options comes with its own set of risks. Whether it’s understanding exactly what your money is being used for or being comfortable with the level of risk—which could include losing your entire investment—it’s crucial to do your due diligence and make informed decisions based on solid information."

Wrap-Up

Thank you for checking this interview with James Fernandez. Be sure not to miss his upcoming appearance on "Money Talks" airing this spring on Rogers Tv (date to be announced soon!)  for more insights and advice.

Interested in connecting with James or learning more about his investment strategies?

·  Connect With James Fernandez on LinkedIn

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Curious about the strategic edge a Fractional CFO can provide? Reach out to us, to explore how Ryan’s expertise can be the game-changer for your business's financial future.

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