HGTV’s Income Property host returns to give Guelph advice
On Sunday, May 1, Scott McGillivray, famously known as host of HGTV’s Income Property, made a stop on his “Wealth Tour” at the Delta Conference Centre in Guelph.
Now 38-years-old, he attended the University of Guelph and graduated in 2002 with an Honours Bachelor of Commerce degree in marketing management. McGillivray proudly acknowledged his Guelph roots and his time at the university as the foundation of what has become a path to a real estate empire: “This is where it all started.”
[pullquote align=”left” cite=”” link=”” color=”” class=”” size=””]“This is where it all started.”[/pullquote]Real estate prices in the ’90s and early 2000s were a lot lower than they are today and, at that time, the University of Guelph had a number of housing supply and demand issues. Basically, the university was letting in more and more students each year without fulfilling the demand of housing at the same time, both on and off campus.
With the right foresight and what began as a school project, McGillivray used his student loans and was able to purchase his first property at the age of 21. By the time he was 23, he owned five. He developed a system to leverage his assets through creative financing and from owning student rentals on Koch Drive, to currently owning a portfolio of over 100 properties. McGillivray’s growth has been exponential in such a short period of time and he shows no signs of slowing down. His hands are in all facets of the real estate industry: investment, development, education, reality TV, motivational coaching, and writing, to name a few.
He does it all with the help of his friend and business partner, Michael Sarracini, who is also a University of Guelph alumni. During their university careers, both McGillivray and Sarracini saw a need in the Guelph real estate market to provide accommodations to students looking for a place to live while they completed their education.
[pullquote align=”left” cite=”” link=”” color=”” class=”” size=””]Just remember: it takes money to make money.[/pullquote]In any business, you can get lucky sometimes and be in the right place at the right time. During the U.S. housing market crash, McGillivray and his team were able to capitalize on the weak dollar and foreclosures happening across the states and amass a portfolio very quickly. Where others saw a great opportunity, McGillivray was able to see his vision and make it happen, knowing the potential risks, as well as the huge returns.
On his Guelph tour stop, McGillivray urged everyone in the audience to buy income-producing real estate, even if it’s just making your basement into a legal accessory apartment or renting out a few empty rooms in your house. “It’s never too late,” said McGillivray.
Real estate, unlike many other investment vehicles, is firstly tangible, but it also makes you wealthy over a long period of time. My car is also tangible, as are my new pair of shoes, but they are more of a liability in most cases and constantly depreciating.
Look at real estate like a game of Monopoly: buy everything you can, build houses, and then sell those houses to buy hotels and apartments. Through monthly cash flow cycles, principle recapture, and active/passive appreciation, real estate investing is probably one of the best long-term financial decisions you can make.
Just remember: it takes money to make money.