Today we talk to someone who buys a duplex and some more single families until he realizes he needs to go bigger. He educates himself on multifamily real estate and goes all-in on it.
Key Points on Better Ways To Invest In Real Estate
- Before getting into real estate, Seth wanted to be a professional hockey referee in the NHL. He worked in 7 different hockey leagues full time.
- He got into the real estate business in his early 20s working as a real estate broker. Although he was making really good money, he realized he didn’t have many assets.
- To acquire assets, Seth started buying single-family homes and duplexes.
- His first deal was his partner’s property that they renovated, refinanced, and rented out.
- After refinancing the house again, he was able to buy another property. He kept buying real estate and refinancing them after a year.
- Seth got into single-family real estate full time and had big plans to build his portfolio. However, when his son was born he realized he needed to do more to provide a good future for him. Scaling in single-family investing was very difficult, so he chose multifamily instead.
- Seth lost his single-family portfolio soon after this due to his divorce. He had to start everything all over again.
- He read as many books as he could and paid for a mentor to learn everything about multifamily investing.
- According to him, multifamily is more scalable because it is valued on the income approach. This means that you have a lot more control over the value of your property based on the business practices you put into place. However, single-family is valued on the comparable approach, so you have no control over the valuation of your property.
- His first multifamily was a 278 unit in Orlando in October 2019.
- According to Seth, the best way to raise capital for his deals is through his real estate podcast and TV show.
- In the future, his main focus is to build his investor database.
- Who is your success role model? Michael Blank and Joe Fairless.
- What is your biggest success? Not getting dragged down when he lost everything.
- What does a typical day look like for you? He goes to the gym in the morning. On his podcasting days, he is batch recording 5 episodes a day and when he records his TV show, he is in the studio all day. His days are very versatile and flexible.
- What’s your favorite quote? “If you think working with a professional is too expensive just wait until you work with an amateur.”
- What are your hobbies? He plays hockey, fences, and likes to read history books.
- What is the best business book you’ve read? L. David Marquet – Turn the ship around!
- If there was one key piece of advice you could leave our listeners with about achieving success, what would it be? You can't be successful if you don't take any action. So stop thinking about it and just do it!
Abut our Guest, Seth Ferguson
Seth is recognized as a real estate industry leader. With 12 years of high-performance experience behind him, he has excelled in building businesses in several branches of real estate, namely real estate sales and real estate investing.
His current focus is the expansion of his residential real estate sales team based in Halton, Ontario and his real estate investment company. Seth currently holds his Broker licence, which he earned after only two years in the business.
Seth is a founding member of the Century 21 Future Leaders program, which advises Century 21’s executive branch and produces training and best practices material for Century 21 agents nation-wide. He has been a regular speaker at Century 21 Canada national events and has attended Century 21 Broker Council meetings.