Meet The Real Estate Investor With 102 Tenants

lots of you guys that's Graham here so as some of you may remember two years ago I flew all the way to London Ontario Canada to meet one of the most frugal and strategic real estate investors out there Matt McKeever he began his career doing the typical nine-to-five in accounting but soon after shifted his efforts towards real estate investing where he was able to take his modest nine-to-five salary and grow that into a gigantic portfolio of over 100 tenants paying him every single month this allowed him to quit his nine-to-five job and just invest in real estate full-time and despite owning over a dozen properties he still wears glasses that are broken on the side as you can see from here that is how you do frugality but given all of that was filmed almost two years ago I think it's about time that I go back and we get an update on the situation so we got to find out how many tenants does he have how many properties does he own how is he able to do all of this how haven't you already smash that like button if you haven't done that earlier and then most importantly does he still work glasses that are broken on the side so I'm literally about an hour away from leaving to go to the airport so we can fly all the way to London Ontario Canada just so we can find out firsthand and when we get there we're gonna see every single one of his properties and he's gonna tell us how he did it enjoy so we're on our way right now to meet up with Matt McKeever and this is what we're gonna be seeing today 16 buildings 58 total units 102 tenants and a gross monthly rental amount of over $60,000 a month so we'll get to see all of that as soon as you hit the like button as soon as you do it we're gonna okay thank you let's go and see Matt can't believe it's failing so I'm from LA like we don't get this weather this is nuts oh my god man good to see you so it's best we just drove around the block and this is the first one yes so this is the second property I ever purchased it's a student rental I actually think we got one of the guys working on right now okay ended up because it's moving moved out okay so we can check it out if we want yeah you know what let's go in and see it really quick okay let's do it this is the second property I ever purchased we bought back in 2010 for 250,000 and it's worth now probably about four and a quarter and so you can see we're renovating right now to the last group of students absolutely trashed it they trashed it every year in fact we actually we put this this is solid plywood just because every year they would punch this wall so because their student walls I never punched a wall in my life see all the drywall patches one year the kids literally punched a hole through this wall so you could see people on the toilet we put in solid core doors so that they wouldn't break them oh my this is disgusting man I can't tell this off your blood so what is this renting for you so 550 a bedroom we got six bedrooms so whatever that works out to 3300 that's a really good return so the next place then is right around the corner from that's right yeah so I kind of thought scales of efficiency it's actually the third property I ever bought so really stuck to the same neighborhood just tried to nail the basics in one market before moving on to another neighborhood okay okay so we're we're this is it yep we go on this one we can't no students are still living there so but as we can see they got tons of garbage out front we bought it for like 215 I think now it's worth probably four and a quarter and six bedrooms probably five five and a quarter the bedroom is what we're renting out for on average and what's with this spray paint on the stuff they're spray-paint and it's light son of them could we go and get that off it's not brick yeah no I know that's actually really those kids damn ahead so now the third place is also in the same yeah exact same subdivision just one Street over exact same design built just a couple years earlier and we bought this one in 2012 okay and does it also have spray paint on it I hope it doesn't but we're about to find out because we're coming up to it right now so the students are stealing this one as well but again very similar style and layout to the one we saw earlier again six bedrooms I think this one's 500 bedroom so you guys do the math I think that's three grand so before doing all of this that you were doing accounting right yeah so I studied accounting in the university that's actually where I read the book Rich Dad Poor Dad and that's what yeah that was the gateway drug that got me into the idea of real estate investing okay so while I was becoming an accountant I was focused on just saving as much money as possible living that frugal life and focused on trying to buy property number one so that I could have Shack save up more money to go by the student rentals which we just checked out you did all of this while you were still doing accounting yeah so I was doing accounting I started noticing the love our high net worth clients all of them seem to own real estate some of them made their money in real estate others made their money and other entrepreneurial businesses but then would pivot or transition into buying real estate as well so I figured they probably know something I don't so got into real estate started focusing on cash flowing rental properties so that I could supplement my day job because I knew that I didn't want to work for someone for the rest of my life and at the age of 31 the cash flow for my rental properties was enough that I could quit pull the trigger and quit the rat race so we're going to the fourth property right now it's right down the street what is this one number so this is a three bed one bath single-family house we were originally going to go see it but it's actually a unique strategy on this one we've converted it and we're purposely using it for Airbnb rentals now so it's furnished actually someone booked it last night so we can't get in there so but bought it for $75,000 we spent about 40 $45,000 a nose got reappraised for 175 just this year we should be hitting closer to 2,000 and eventually 2,500 a month once we get that five-star rating so the next one's actually just around the corner again I really like trying to buy the properties in the same neighborhood just cluster them scales and efficiency all right so we're pulling up to this one now give us some details on this so yeah so this is a triplex so we have a three bed one bath in the front a to bid one bath on the top and one bid one bath on the back of the property 1,300 for the main floor the back units like way under rented right now we inherited the tenant and I think he's only pain like $500 a month and the upper tenant is paying 1200 month I believe got it so I think that's three thousand for this building so we're on the way now to the sixth place and where is this one how far away is this it's about two hundred meters so just down the road and this one is a six Plex so it's three one bedrooms and three baths a units right now I think the total rents for the building are about forty-nine hundred a month and that's broken down the bachelors are kind of like in the seven to eight hundred dollar range and the one bedrooms are 100 or $200 more bedroom so now where's the next one it's just right down the street we're actually coming up to it right now this is like real life monopoly trying to collect a lot of green houses right now but soon we're going to upgrade to red it's this that and the one beside it we got 14 bachelor apartments and then behind us those two properties there are two triplexes and what I'm really excited about with this property there's huge developments going on the neighborhood's dramatically transitioning we just had announced there's like an 18-story building going up across the street already had developers called me about this parcel this corner so I think we just had painted we can walk through the hallway there there's a lot smokers I think everyone is a smoke everyone is okay do you have any issues with the neighborhood and the quality of tenant because I'm looking at some of this driving down the streets here I mean yeah so definitely the neighborhood is transitioning since I purchased it we've definitely been able to stabilize the building so we got rid of a lot of the bigger problems and issues but there's still some lingering problems so like anything it's a long-term play but it's gonna really pay off in the end so we are already at the next one and what is it what what is this so this one's a triplex it's still currently under renovations as you can see this property was the most infested with rats and mice I've ever came across so we ended up just having to completely gut it back to the studs we're redoing everything so all new plumbing all new HVAC all new floors all new drywall new ceilings it'll be a three or four bedroom on the south side and that'll have two bathrooms probably we should be able to get gross rents of close to $2,000 a month nice and then on the north side on the main floor we'll have a two bed two bath and again for rent we probably should be able to get about thirteen fourteen hundred on the upper will have a to bed one bath and sure people get Ransome at least twelve hundred okay so now we're on to number nine where is this one we're actually just going to turn here and it's right there so this is a four-plex the upper is a two-bed one-bath main floor to bed one bath basement one bed one bath and then there's a back addition that's for bed two bath and then we got the garage as well I guess on average we're getting about five thousand dollars a month between the two air B&B units then the main floor is $1,200 a month the basement currently is under renovations but once we're done it should be rented out four thousand dollars or more all right so now we're on our way to number 10 where is this one gonna be it's just like five blocks this way it'll take us like four minutes okay so out of a hundred and two tenets then in a month how many would not pay their rent on time so that's a good question I guess we'd probably average that maybe 10% so maybe ten tenants aren't paying right away and then within ten days there's maybe two or three stragglers still and we're maybe doing an eviction once every two to three months so this is the one where I first met Matt for the video two years ago this is it this is the one you're in can we see it so it's rented out and we actually have tenants in the process of moving out that's why we got some like moving boxes and a couch on the front porch but yeah so this is the one where grant helped us do the demo had the solids all out slow-mo the shaking all that good stuff so three units this one's got six tenants and we're renting it out for $3,000 all right so now we're on to number 11 and let me guess it's right down the street it's on the same street yeah this one's a triplex 610 it's 2,400 a month bought this one for 140 I think maybe 145 and it's worth 175 now in case you're curious the next one's just around the corner Corey well I was just about to ask so there you go I don't must be afraid that I'd be forgetting if someone paid their rent or not but I guess you have like a checklist yeah that's why I got Katy and Sharon so we just got here tell us a little bit about this one so yeah so this one's six units nine tenants and we're renting it out for 4,800 total a month this is very cool I've always really focused with real estate investing on getting cash flowing properties and so in my market in London Ontario the best cash flowing strategies are going to be Airbnb or student rentals it used to be soon rentals but now we're actually seeing more opportunity with Airbnb hence I'm transitioning a lot of my units over at Airbnb okay and you're not worried about the management or the time aspect because you hire all of that out there yeah so outsourcing it all and with Airbnb it's really important that you get amazing cleaner you'll find that like the cleaners what's going to make or break your business on Airbnb so make sure that they actually understand what Airbnb is about otherwise they end up spending way too much time cleaning or not enough and it's all about that five-star rating so my very first property was a student rental I bought and house Acton I don't think you ever actually made it out to it but essentially just have a bunch of roommates move in with me and lived for free alright so here we are we got another four units nine tenants and we're renting this out for 3950 actually we got two laneways here because it's a double lot and so this one is the one I was telling you that's got the shed that we're renting out separately and we're renting the shed out for actually believe it or not we're still negotiating but it's either gonna be 100 or 150 and they'll get access just to this Lane way for that Plus this Lane way they got a little bit of electricity think about storage you can park your car your work trailer here and that's at least that's got to be another hundred bucks a month you can sleep there that's another unit right there okay so for anyone watching this and who wants to start replicating what you're doing and get to this level what is your recommendation to them first of all if you're starting out you need to gain as much knowledge as possible Rich Dad Poor Dad was the book that kind of opened it up for me but as well I'd recommend you watch as many YouTube videos as possible listen great podcasts like the BiggerPockets podcast I think it's amazing especially if you go back to some of the older ones the older ones have a lot more a lot more guests that feel attainable right like they have smaller portfolios I think it's great resource and then once you've learned some real estate knowledge then figure out a way to live for free whether that's buying a house and living in it and house hacking or maybe you're going to rent hack and literally just rent out a property sublet some bedrooms and you get to live for free or maybe rent it out and then rewrite it on there being beat there's a lot of different investment strategies you can do in real estate even if you don't have a ton of capital as long as you're willing to put in the time and effort to learn and execute the other piece of advice I would give you is take action way too often I see people get caught up in the houses paralysis you know they become seminar junkies or their spreadsheet junkies where they run numbers every day but they never actually go and look at property or they never actually write an offer and like the biggest tip I can give you is you'll buy zero properties if you make zero offers and I think that's something some investors are aspiring investors I should say never really realize okay we're headed to the last property now it's a duplex three units right now for two thousand dollars a month and there's a garage at the back of it that I'm currently thinking about can you guess what I'm thinking you gonna rent it out I'm thinking about or anything it out so we just went and saw all the properties so this is what we have so far we got 16 buildings 58 total units 102 tenants for a total gross rent right now 60 $3,200 a month Matt how does that feel huh actually sounds crazy when you lay it out like that it doesn't necessarily feel that big but again it's just you buy a property at a time you keep building your portfolio you find a deal and execute on it it's just that consistency in their approach so you know learning the basics and then going now isn't actually taking action so I really do believe that anyone can do this it's taken me nine years to do it had I actually had resources like grams channel and bigger pockets and all that great stuff we talked about in this video I think I could have actually done it faster so I think anyone can do it as long as you're willing to learn put in the work and then actually take action and go out and do it that's awesome so you guys thank you so much for watching I really really appreciate it but before you click out of the video I just have to say a huge thank you we got Jeff why bow driving here he's been our show for the entire day I'll link to his channel down below in the description we also got Peter here the Hungarian experiment who did all the filming for us today so I will link both of their channels in the description if you wouldn't mind if you enjoy this video at least just go to their channels show them some amount of love they're not getting paid for this or anything like that I mean they're doing it another kindness of their hearts so if you guys appreciate it make sure to do that make sure to smash the like button subscribe check out Matt's channel in the description add me on Instagram I poster pretty much daily so if you guys want to be a part of it there feel free to add me there I have no idea how long this video is going to be so I try to end it here thank you again for watching and until next time thanks has

Channel: Graham Stephan

Views: 827,437

Rating: 4.8930349 out of 5

Keywords: real estate investing, real estate investing for beginners, real estate investing strategies, how to invest in real estate, how to invest in real estate with no money, real estate investing tips, real estate investing 101, how to make passive income, passive income strategies, passive income ideas, passive income real estate, real estate 101, real estate, how to buy a house, financial independence, retire early, matt mckeever, how to become a millionaire

Id: aYTqF756OYQ

Length: 16min 21sec (981 seconds)

Published: Wed May 08 2019

Reddit Comments

[u/YOUREABOT]

Where is the money source? That is what I really crave to know. Damn, that is so great fucking great. If he does this business alone by himself. that isawesomeamount of money.