The seminar was
free, although the time conflicted with my regular real estate class (giving me
an acute case of mental anguish that the professor might notice that I was not
there sitting in the front row asking a million questions—the class would be …
eerily quiet without me). Anyway, what cinched
it for me (and I should have probably told you in the first place) is that the
real reason I was going to ditch my class to go to the real estate seminar was:
(photo removed due to excessive sweat on keyboard)
(photo removed due to excessive sweat on keyboard)
Yep. Scott McGillivray. You know him from HGTV’s show Income Property. Just the name of the show makes you think that he must
own lots of property and that he must somehow make an income from doing
this. Not sure how the details work,
that part is fuzzy. But I would get to
see Scott Live! And! In! Person! and possibly ask him a question or
three.
The people running
the seminar must’ve really wanted to make sure I attended, as indicated by
their two confirmation phone calls the day before plus a text advising me that
the venue had changed from Hotel XYZ to Hotel ABC, which was actually closer to
my house. Then the girl on the phone
hastily added that there was a chance (“A slim chance, I don’t want to alarm
you or anything”) that Scott would not be there live-and-in-person after all,
he might be there via Skype.
Skype? I was supposed to give up my entire morning,
drive 5 minutes away to a nice hotel with a free catered breakfast, and pay no
money for the wisp of a chance that the real Scott would be there but more
likely just a video version?! I was
supposed to miss my actual, true, state-certified class for this?
You
betcha.
I got there
early, because that is what we trained Virgos do. I asked the usher (who turned out later to be
one of the speakers) if I could sit in the front row, but due to the
overwhelming response and people who apparently cut in front of me in the
parking lot so they could run into the room ahead of me, I was
forced to sit way back in the second row.
I looked at
my watch: 8:35. At 9:06, some random guy (the usher, I
thought) took to the stage and started babbling on about real estate and about
Scott and if he was going to really be there or not.
Turns out,
he was. Next thing you know, Scott
himself entered the room in all his chiseled handsomeness and movie-star good-looks
splendor. He was wearing a navy linen
jacket even though it had snowed the night before, and his hair looked like
something out of a shampoo commercial. Expensive
shampoo. Then he took to the stage, and
after the type of applause normally reserved for kings and presidents, the audience
went silent. Scott began to talk in a
friendly way, as if he was your next-door neighbor and you just invited him
over for a beer.
He told the
story of how he got into real estate back when he was a broke, 21-year-old
college student. He (illegally) used his
student loan money as a down payment on a house that he and a bunch of
roommates were going to live in. He made
enough from the roommates to pay the mortgage, and his portion was free. He bought another house the next year, and
the following year, 10 more. He ended up
living in the basement of one of these multi-unit homes for 7 years so he could
make his dreams come true. In the
meantime, he kept pulling money out of houses and using it to buy the next
house and the next. He told us to always maintain positive cash flow, never buy anything where you do not make money from the first day. His investment
strategy, he told us, was to “Buy and hold.”
When his
speech was over, and he started to leave the giant auditorium, I bolted down
the back aisle, out the door, and back into the door where I had last seen
him. There he was, chatting with some
lady. I needed her to disappear so I
could ask him all my important questions.
Finally,
after what seemed like 20 minutes but was probably only one minute, she
left.
“Scott? Excuse me,” I whispered, “I have a quick
question for you.”
He had given
three pieces of crucial real estate advice during his speech. He had said to buy these types of
properties for the best long-term investment potential: *Student housing
*Multi-units
*Vacation or corporate rentals
So, my profound question was:
“Scott,
should I only invest locally? Or is it
okay to invest long-distance?”
I did not
have the heart to tell him in that exact specific moment that my personal
investment budget was approximately $100, and that was only after I got my tax
refund back. Or I might owe $100 in
taxes. I can’t quite remember what my accountant
said.
“MOV,” he
said, slyly looking at my nametag, “When I first started, say the first seven
or eight years, I just did local. Then I
branched out.”
I nodded
enthusiastically, making a mental note that in seven or eight years I might
even have $125 back from my tax refund to invest.
“Okay,
great,” I said. “How much should I put
down on these properties in the beginning?”
I was hoping
he would say “$100” or perhaps “$125,” but he surprised me by saying,
“Twenty
percent.”
Now, my math
is not that good, but I know that 20% of a half million dollar vacation home is
going to be slightly more than $100.
Bummer. But it was totally worth
it to have Scott standing that close to me.
I could smell his hair products.
He smiled at
me and, as if reading my mind, said, “PMI.”
At first, I
thought he was telling me the name of his hair styling products, but then I
realized he meant “Private Mortgage Insurance” or “Property Management
Investments” or something non-hair related.
“You don’t
want to hafta pay PMI,” he continued in that sexy Canadian accent, “so make
sure you always put 20% down.”
“Of course,”
I replied. In the next moment, a moment
that can only be described as “short-sighted” or perhaps “stupid,” it popped
into my head that Scott had zero idea of my zero bank balance. I was wearing a really nice silk blouse and
fake pearl earrings, so for all he knew, I might have 50 bazillion dollars in the
bank. Here was my chance to lie and
impress him: “My husband and I usually just pay cash for all our investments.”
“Oh … wow,”
he said, obviously impressed at my previous investing savvy and know-how. I did not need this silly seminar for
beginners. I could be teaching this seminar!
I didn’t
feel the need to clarify to Scott that our cash investments consisted entirely of
289 complete Lego sets built by two elementary-aged boys.
He shook my
hand and politely explained that he had to go now. I was not used to people leaving after I
approached them—remember, I used to be a flight attendant. If I would accost some poor unsuspecting celebrity
passenger after he used the lavatory so that I could get his autograph or ask
him about his next movie, he could not exactly jump out the door at a cruising altitude
of 35,000 feet.
“Thanks!” I
squeaked as Scott rushed past me.
Right then,
I got a text from my accountant: “You
owe taxes, plz write ck TODAY.”
I guess my
real estate investment career might have to wait another week to get started.
MOV
*Not the
exact name of the seminar, but I am too lazy right now or go find the flyer. Just go back and stare at the nice photo of
Scott and then you will forget all about not knowing the exact name.
Link to Scott's website: click HERE.
Link to Scott's website: click HERE.