- [Narrator] The King of High Ticket Sales.
World's Highest-Paid Consultant.
Media Celebrity.
Multi-Millionaire Entrepreneur.
Acclaimed TEDx Speaker.
International Best-Selling Author.
Dan Lok.
- So let me bring on another inner circle member.
Real estate investor, Patrick Leung.
Patrick owned his first property at 19 years old.
Patrick has grown a remarkable portfolio.
He is an active investor.
What kind of investor?
- [Audience] Active.
- Active investor.
Today he manages more than $20 million
in assets and collectively
manages close to 200 units in Canada.
So Patrick, a round of applause?
(audience applauds)
So I want to show you an active investors.
Have a seat. - Sure.
- And what do they do and how do they think?
Say hi first for me.
- Hi everybody. - Everybody say hi, Patrick.
- [Audience] Hi, Patrick.
- Okay, so Patrick, share with us
how did you into Real Estate Investing?
- I actually got into real estate investing by accident.
It was my mom, that she gave me a decision.
I could either buy a car or I could by a condo.
At that time,
I didn't know how powerful it was making
the correct decision.
I choose the condo because at the time, I didn't need
a car because I was at home playing video games all day
(Dan and audience laugh)
and if I need to go out, my friends would come
and they would drive me out, so I didn't need a car.
So okay, I'll get a condo.
And from them on, that condo helped multiply.
It was a condo at Joyce Station.
That condo helped multiply, allow me to get three houses
just from that one condo.
- And why did you like real estate so much?
Why not other type of investment?
- Yeah, I have actually dabbled
along Forex trading, I have traded stocks
for a firm before, they trading as well.
And I have also,
refinanced some money from the condo I still had
to purchase a business and I have lost money
on every single one of them because now that I found out
there's no real underlying asset or at least I myself
don't understand the underlying asset.
- Yeah.
And throughout the years,
I mean, I was talking about invest in what you understand,
right? - Yeah.
- And I know you've also had some ups and downs
in your business career.
What do you think is maybe one or two biggest
mistakes that you have made that you want people to avoid
when it comes to investing?
- Okay, the biggest mistake I have done
and it put me in depression for more than six months
was actually not knowing
the diligence and not doing the diligence.
When I acquired at age 23,
I took money out because I wanted to be entrepreneur.
I commit money out of the condo that got up in value
because they would give anybody money at that time.
It was like. - It was easy to find.
- It was ninja money at that time.
So I got money out.
I purchased a coffee shop not knowing how to do
due diligence and I was cheap.
I didn't know and I thought
I want to be the IT for business school.
I thought I knew everything and that was so bad.
I didn't hire any accountants, lawyers to do
the transaction.
I just gave the draft to the guy,
- Wow. - You know?
In exchange for keys.
(audience laughs)
And he say, he promised me that this business makes
1,000 bucks a day, but you just have to build it up.
And I was like, egotistic at that time, so.
- Much more humble now.
- Now afterwards,
I was punished.
I was depressed for six months,
it was very devastating. - Okay.
At the time, didn't do due diligence and you thought
you'd just trust the guy and just invest.
And any other mistake that you have made?
Or you feel like you did?
- Yeah.
That is the major mistake I got,
which is the lack of due diligence
and now knowing how to do due diligence.
Now coming forward,
I actually have a faulty mortgage broker.
You got the lawyers, accountants,
they all go for the deal so it's not only me
and also my group of investors.
- Please write this down.
Investing is a team sport.
Investing, a team sport.
And now, how did you go from the first condo
to now with portfolio, 200 units and still growing?
I just did a deal.
And how did you go from that to where you are today?
- Actually, it was a painful experience
after my loss of money.
I was depressed for six months
and I actually start investing myself
and read a lot of books.
- Self development and (mutters).
- Yeah, just exactly what you said.
- They had to screw on trade again, okay.
- And I have the option.
I lost $70,000.
I'm $70,000 extra in debt, but I still have the condo
I have.
I have two choices.
One is I go back to work a job for seven years,
save $10,000 a year and pay back that loan.
Another one is I leverage that condo, took more risk,
but then I'm betting on things that I know,
which is real estate.
- Key word.
He's spending on things that he
- Knows. - Knows.
- Yes, and then I bought two houses in (mumbles) China.
At that time, I could buy houses for 50 to 60,000.
That's why I bought two.
One for 50, one for 60
with only like 10% down.
I was ridiculous at that time.
(audience laughs)
I bought a house in Surrey as well and all from that
single first investment I got.
- The one and another one
and stacking it.
Now what do you say to people and I say sometimes
investors say, oh, Patrick, I don't have any
money to invest.
- Oh, I would say you just have to invest in yourself first.
- Get the high incomes, right?
- Yeah, you have to
because I just see way too many real estate investors
got themselves into troubles because they are not,
they don't have the discipline.
Their income are not stable,
there's also a lot of accountability when you take on
a lot of debts.
Right, there's a lot of people you have to be
accountable for.
- Speaking of investing principles or how, what kind
of deals you invest in, maybe share with us one or two
principles that you follow, that you just no way,
this is what I follow.
I'm not going to break this.
Is like a law for you.
- Right.
Well, that goes back.
I have to do my due diligence.
There's absolutely, I check out the numbers
and I verify because now it's easier when I buy
an apartment building, I already have one right beside,
right?
If I'm buying in that city, I have already accessing data
I could compare to.
So if someone claimed that their income is 20% above
my existing operation, then I have to,
I could then check my data and say hey,
that's not true.
And a lot of times,
when I notice in the investment world
and people selling to real estate, they tend to
exaggerate.
- No way, no way! - (laughs) yeah.
- I can't believe that. - Yeah, so.
(audience laughs)
Just to get their maximum (mumbles).
But so that's why
you really have to know what you're doing.
- Probably can see he knows real estate.
Shit, he knows real estate.
Like, he knows real estate.
Now if you talk about something else, maybe you say
a business or a coffee shop.
No, we don't want coffee shops.
- Oh, coffee shop, no.
(man laughs)
- You can buy a Starbucks but none after that.
- Yeah, that's it. - That's it.
- I would have done better off just buying shares
of Starbucks. - Yeah, yes.
Now for some people they might say you are,
but isn't it a lot of risk?
You took a lot of debt because of the leverage.
How do you minimize that, like something happens
or you can't get a tenant or cash flow issues?
How do you minimize he risk of taking so much debt?
- Well first, you really have to know your numbers.
You have to know what a cap rate is, you have to know
that surfacing process.
So once you know all those numbers, then you have
a goal to go for.
And also, you have to find the right managers.
I had the experience in the beginning
where I start investing in Ontario Windsor
or the places I invest quite often now
is I found
a pretty bad property management company.
So they go in, they lock in for one year contract
and they will say they will manage
all your things and they are actually good
at branding, but they're not actually good
at operating. - Managing the operation.
- Yeah, so.
And I was a small guy when I starting,
so that's a very,
your manager is where you get your money from.
- It goes back.
No such thing as dangerous investment.
It's dangerous investor, right?
- Yeah. - What's your goal now
at 20 million portfolio?
What's your goal in the next five years?
Where do you want to go?
- Well, my target is to bring it up
to 50 and above.
I am just going to continue adding units
to my portfolio. - Yes, yes.
- And real estate
tend to be a good investment because for me,
I know it used to be every five years
your property appreciate enough that there's enough
equity to double, right?
So you could always duplicate, so one become two,
two become four. - Re-finance, yeah.
- Yeah, and the game goes on, right?
So. - That's awesome.
With new investors,
actually share with them
about the wealth triangle
because you structured your real estate
when you first talk.
- Yeah. - And you first join
your circle, that I guess I thought you're just
the investment guy.
But when you talk and I said
oh, this is brilliant because you actually have
the high income skills and how you structure it.
I think it's pretty interesting.
It's one industry, but the way you structure
the business model actually gives you
a lot of stability, right?
- Yeah.
It's just from last year,
I look into okay, real estate actually.
- The wealth triangle™. - Good at actually
building your net worth. - Net worth, yeah.
- But then as I pick up
this real estate investment skill, it is a skill
so I could sell it.
So I did consulting and I finally lost
those patient investors that came over.
They don't speak a single word of English, but then
they actually need a lot of help building their portfolio
for the next generation, so.
- So they may not, they're not your investors,
but you're helping them with investments like consulting,
right? - Yes.
- And that's a six-figure income skill, obviously.
- Yes. - All right, so you help
to build the high income skill we well as you take on
investors and partner with them and you also
go into investments as well.
- Yes. - Or in some cases,
you do deals on your own.
- Yes. - A lot of times, right?
- Yeah. - Very good.
Well boss.
(audience applauds)
So if they have questions, stick around.
They can pick your brain a bit afterwards.
- Thank you. - Round of Applause
Very good.
Very good, very good.
(audience applauds)
Now you've been watching my videos for some time now,
but have you read my book F.U. Money?
If you have, good for you.
Comment below and share with me what you have learned.
If you haven't, what's the excuse?
This book currently sells on Amazon for 20 bucks.
Let me eliminate excuse for you.
I'm going to give it to you for free.
Go to the description link below.
Go to www.fumoney.com.
Fumoney.com.
I'm going to give you a copy for free and you can download
it immediately.
Read this book.
If you enjoy my videos, you'll love my book.
It's the most powerful book that I have written
on a topic of success, wealth, and financial independence.
You'll love it.