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cover of episode E084 Unlocking Profits with Unique Deal Structuring

E084 Unlocking Profits with Unique Deal Structuring

2024/5/30
logo of podcast REI Hot Seat with Andrew Hines and The Investments Group

REI Hot Seat with Andrew Hines and The Investments Group

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In E084, I'm joined by Jacob Campagnaro and David Hulshof, and we're diving into the fascinating world of creative deal structures. We've previously covered various aspects of VTBs and similar strategies, but today's focus is on some unique and innovative approaches to structuring deals. Creative financing is what keeps this job exciting and allows us to turn challenging situations into opportunities.

For example, we discussed a property in downtown Toronto with ten units, some of which are vacant and ripe for conversion from large two-bedrooms to more marketable one-bedroom units. This kind of strategic conversion can significantly enhance property value and improve cash flow potential. Another aspect we explored is understanding a seller's goals and finding ways to meet them creatively, such as JV partnerships where one party provides capital for development in exchange for a share of the profits.

In one case, a Florida property owner who ran out of funds was severing lots but lacked the resources to pave the road. The solution? A JV where the investor funds the necessary work, creating a win-win scenario. This is what makes creative deal structuring so compelling – it's about finding mutually beneficial solutions that align with everyone's goals.

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E084 Unlocking Profits with Unique Deal Structuring 0:32 - Introduction to Creative Deal Structuring 1:29 - Importance of Understanding Seller Goals 1:55 - Florida Deal Structure Example 2:08 - Downtown Toronto Real Estate Challenges 2:35 - Converting Two-Bedroom Units to One-Bedroom Units 3:01 - Discussion on Market Data and Refinancing 5:49 - Creative Financing Options and JV Opportunities 8:44 - Excess Land and Future Development Potential 11:18 - Garden Suites: Challenges and Opportunities 16:04 - Legal and Zoning Issues in Real Estate 20:18 - Specialization in Real Estate Transactions 25:25 - Educational Value for Investors

Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.

Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.

His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.