Scott Dillingham: 00:21

Welcome to the Wisdom Lifestyle Money Show. I'm your host, Scott Dillingham. I have another guest with us today who goes by Scott as well. This is Scott Thompson. Welcome, Scott.

Scott Thompson: 00:29

Hey, guys. Thanks for having me, Scott.

Scott Dillingham: 00:30

Yeah. No problem. So Scott is a realtor with Team Gorham. And prior to that, I know you did some social work, and I I know that's had a big impact on helping you to be successful with what you're doing. And you're gonna share some of the cool things with us today.

Scott Dillingham: 00:45

But, let's start off with your childhood. Can you tell us about that?

Scott Thompson: 00:49

Yeah. Absolutely. So I was raised in Windsor, Ontario. K.

Scott Thompson: 00:53

I grew up on the east side, Roseville Gardens. I went to Saint Alexander School, and then I went to Saint Joseph's, the old Saint Joseph's on Empress. So I played a lot of soccer, played a lot of sports growing up. I've never really know what I wanted to do. I was always bouncing back.

Scott Thompson: 01:09

1 week, I wanna be an electrician. Next week, I wanna be something else, a pilot, whatever. So I was just kinda figuring my way through life there. When I turned 19, I moved in with my grandfather out in the south. So that was pretty cool because he was, like, my hero growing up.

Scott Dillingham: 01:25

That's awesome.

Scott Thompson: 01:26

Yeah. Yeah. You'd always be fixing something, and he would teach me how to, like, fix the lawnmower and ride the lawnmower and take me on different trips. So he was a pretty cool guy. And I looked just like him too.

Scott Dillingham: 01:39

That's awesome. That's funny. Yeah. Yes.

Scott Thompson: 01:42

Yeah. It was a great experience living with him. Eventually, he got sick. He started getting dementia. And, was just a big shock for me.

Scott Thompson: 01:52

Right? Because dementia, as many people know, really takes a toll on families. Right? But it was definitely an opportunity for me to get closer to him and, just I learned that, that caring approach. Now you really got to put their needs first and understand, what they're going through and definitely develop a lot of patience for me.

Scott Dillingham: 02:14

Yeah.

Scott Thompson: 02:15

And, like, my heart really started to go to other people with dementia, and I felt like we had a really good connection. And that thought led me into social work. That's awesome. How,

Scott Dillingham: 02:29

how life works and how one thing leads you into another.

Scott Thompson: 02:33

Absolutely. Right? They always say when you're not looking for it, you find it. And that's what happened with me at that moment in my life with social work. I went to school and I was I was taking the classes and kinda figure out, like, what I could be doing.

Scott Thompson: 02:49

And then I graduated and I started working at a rehab facility, actually.

Scott Dillingham: 02:54

Okay.

Scott Thompson: 02:54

So a bit of a difference from when I first started. But, yeah, I started working for a rehab facility, and it was basically helping men, with addictions to learn how to cope, you know, get through that battle. So that was a really cool experience.

Scott Dillingham: 03:09

That's awesome. So when you were there, without getting into too many details, but would you be able to elaborate on maybe someone's story or scenario that you helped them to get through?

Scott Thompson: 03:21

Sure. So I found I really connected with the younger guys there. Going through high school, like trying to fit in the peer pressure, going to parties and whatnot, living in with their mom and then, not seeing their dad all that much. I can relate to that. And then just I found that a lot of the younger guys had issues with trust.

Scott Thompson: 03:47

They couldn't trust role models. They couldn't trust me and me certain friends. And, like, in social work, any type of, helping setting trust is, like, the number one thing. And that's what I really wanted to establish is whatever you tell me stays with me. I'm I'm here to support you.

Scott Thompson: 04:06

I'm not here to put you down. And the biggest way I kinda do that is is understanding where people are at and meeting them. Mhmm. So, you know, if we're talking about certain subjects, you can see them in their face. I don't wanna talk about this.

Scott Thompson: 04:22

This makes me feel really uneasy. And maybe, yeah, it's a conversation that needs to come up somewhere down the line, but that's not where they're at. So if you can't help people recover in one day, it's a process.

Scott Dillingham: 04:35

It is. It takes time. Just like everything. Doesn't matter if someone's losing weight or they wanna climb the corporate ladder in their career. You have to take time, so that's cool.

Scott Dillingham: 04:46

I love that you, one of the things that you said there was trust. Like, you really work with them on trust, and I think that really goes hand in hand with being a realtor. I I totally think it does, which is awesome. Another thing that you told me which I thought was really cool is you help people with like, not letting their emotions take over their thinking process, right? So could we touch on that and maybe where you saw people let their emotions get the best of them through your schooling or practicing it at work?

Scott Dillingham: 05:21

And then we'll we'll tie in how that has helped you now as a realtor.

Scott Thompson: 05:25

Yeah. Absolutely. That's a good point. A lot of the guys when they were there in the rehab facility, they would be ambitious and maybe in the beginning that they're gonna make this change. But, you know, being there after some time, it's just I miss home, I miss my girlfriend, I miss my friends, whatever.

Scott Thompson: 05:42

And then they decide, I'm leaving. You know what I mean? I'm good now. I'm gonna go back home, and everything will be okay. And I really tried to help him.

Scott Thompson: 05:52

Hey. Let's just think about it. Let's maybe sleep on it tonight. See how you feel tomorrow. I know for myself, anytime I make an emotional decision, I usually regret it afterwards.

Scott Dillingham: 06:04

Yeah.

Scott Thompson: 06:05

Right? So we help them to do that. Sometimes you can get this, like, gut feeling, if you will, and you think, oh, this is the right thing for me to do. I gotta go home or my parents need me to be there, and that doesn't always play out well either. Another thing too, I would, I'd have them journal or write something, like, write how they're feeling because that really gets people on the moment.

Scott Thompson: 06:26

And sometimes it's hard for people to express how they're feeling, especially when they have all that anxiety in them.

Scott Dillingham: 06:33

Yeah.

Scott Thompson: 06:33

And so when they can actually write it down, it gets into more detail of how they're feeling. Not gonna say it worked every single time

Scott Dillingham: 06:41

Yeah.

Scott Thompson: 06:41

But it did work.

Scott Dillingham: 06:42

Yeah. No. It's cool. I like that you said that because even, like, with goals, right, you write down your goals, then you look back at them and maybe your ambitions or your motivation or your just goal in general change, and it's something different, but it's cool to be able to go back and reflect on it. And, no, I love that.

Scott Dillingham: 07:00

And I think it's a super valuable lesson for anybody, right, to not let your emotions get the best of you. Did you find that was obviously addiction was a major part of why they were there, but did you find that it had to do with emotions a lot of it, or was it just they're hanging around with the wrong crowd or what do you find the culprit?

Scott Thompson: 07:21

Let's say people, places, and things.

Scott Dillingham: 07:23

Okay.

Scott Thompson: 07:24

Yeah. People for sure, the people you hang out with, the places that you go, the things that you do, that's definitely a huge aspect of it. The other part is learning to handle emotions in a healthier way because maybe they grew up in an environment where their parents didn't handle things a certain way, and that's learned behavior. And once you develop at a young age, it's really hard to change.

Scott Dillingham: 07:47

Yep.

Scott Thompson: 07:48

Yeah. Definitely possible. It takes some work.

Scott Dillingham: 07:51

It does. For sure. No. I love that. So cool.

Scott Dillingham: 07:54

So, no, what I wanna do now is tie it into real estate. And then I do have a random question for you that's totally unrelated, but you said something about your childhood. Maybe I'll, you know what, let's start there. You mentioned when you grew up or you wanted to be a pilot and do it. Did you ever fly a plane?

Scott Dillingham: 08:08

Did you ever do that?

Scott Thompson: 08:10

No. I just watched top gun and it seemed pretty, pretty cool.

Scott Dillingham: 08:13

That fulfilled you.

Scott Thompson: 08:14

Yeah. Yeah. Seeing Top Top Gun, seeing Tom Cruise, it just seemed like a a fun thing to do.

Scott Dillingham: 08:20

Nice.

Scott Thompson: 08:20

Yeah. Yeah.

Scott Dillingham: 08:21

Cool. Cool. No. I was just curious if you ever got around to doing it. So you can do it.

Scott Dillingham: 08:26

Did you know, like, they have at the Windsor Airport I just did it last week, actually. You do an introduction course to see if you wanna get your pilot license, and they'll let you fly the plane. They have someone with you who guides you, but yeah.

Scott Thompson: 08:38

Oh, I didn't know that.

Scott Dillingham: 08:39

Super cool.

Scott Thompson: 08:40

I did know because I I took my girlfriends on a plane tour or a plane ride around Windsor Essex County, and it's crazy. Like, you can get to Leamington in, like, 15 minutes in a plane, if not 10.

Scott Dillingham: 08:51

Yeah.

Scott Thompson: 08:52

But, yeah, it was a pretty cool experience. So, yeah, maybe that's something I will do.

Scott Dillingham: 08:56

It's super cool. I don't know. I I'm doing it for fun. That's why I asked because it's something that I like. I'm doing it for fun.

Scott Dillingham: 09:02

I don't want a career out of it, but, it's just one of those things. Right? Me, like you, when I was little, I thought it'd be cool to fly a plane. Now I'm at the age where I'm like, I'm gonna just do it. It's what I wanna do, so here we are.

Scott Dillingham: 09:14

But, no. Cool. I know so that was random, but I was just curious.

Scott Thompson: 09:17

All good. You should put a Lens City flag at the back of the plane.

Scott Dillingham: 09:20

I'm going to. Yeah. Once once I have the license where I can fly myself, I'm gonna do that and my partners. Whoever I work with, I'm gonna have their banner flying behind too.

Scott Thompson: 09:31

All right. Throw mine up there too.

Scott Dillingham: 09:32

All right. We'll do it. So cool. So, no, I wanna tie this back into real estate. And for for those who are listening as well, Scott does a lot with investors.

Scott Dillingham: 09:41

So this is where this kind of all ties in, but people buying their houses or investment properties, it's one of the biggest purchases that they're gonna make, right, in their life. So let's touch on how you've used what you've learned, helping people in the past and how it helps you to become the best realtor for them now and for them to make their next investment or their home purchase an easier process?

Scott Thompson: 10:06

Yeah. For sure. So in in social work, they always talk about these transferable skills.

Scott Dillingham: 10:12

Okay.

Scott Thompson: 10:13

With one job to the next, all these skills overlay. But I didn't really think of it, you know, heading into real estate, like, how applicable social work could be. You know? But it's all about building relationships, building trust. You're working with people.

Scott Thompson: 10:27

You're helping them to achieve a goal. It's just in a different setting. Yep. And so the more I started meeting with people and showing around homes and taking them through the process, the more I felt like I I'm a social worker in a sec Mhmm. But I'm a real estate agent too.

Scott Thompson: 10:42

So one of the the first things I noticed is, again, people need to trust you. Right? One of the things that kinda held me back from real estate is I'm not this flashy, fast talking, maybe, guy that really sells something maybe the way that guy does on, what's that movie Leonardo DiCaprio?

Scott Dillingham: 11:04

Wolf of Wall Street. Yeah. Wolf of Wall Street. Yeah.

Scott Thompson: 11:07

Yeah. I'm like, I'm not that guy, so I couldn't be a real estate agent. But I said, let's, let's give it a shot. I like working with people. I love learning about houses, so let's give it a shot.

Scott Thompson: 11:18

And once I started sitting down with people, I'm talking to them, like, why do you wanna move? What are you looking for in a home? What's important to you? What's not important to you? So I got to know them.

Scott Thompson: 11:29

And then as we started walking through the home, one of the first things I would do is, like, look at their facial reaction. Look at their body language. Do they like this home? Do they not like the home? If they're giving me a vibe that, like, I hate this place, I'm not gonna sit here and say, look at this kitchen or look at this or look at that.

Scott Thompson: 11:46

Look how awesome this place is. Right?

Scott Dillingham: 11:48

Yep.

Scott Thompson: 11:48

Because they're just gonna think, this guy's just not getting it. I don't like this place. Leave me alone. Right? So that was really important.

Scott Thompson: 11:55

And then just being honest with people. A lot of flips nowadays, they just throw lipstick on it, man. They'll paint pot lights, kitchen countertops, some laminate flooring, and the place looks awesome. And, yes, that is what sells homes. You know, we had an experience last week where all that was done, but the foundation wasn't taken care of, right?

Scott Thompson: 12:19

So we actually seen some water seeping very minimally at the baseboards. And upon further review with an inspector, we found that there was water seeping in and there was mold around all the bottom. Right? So just being able to be transparent because if that person, like, they love the home, but if they bought it, it would have been a nightmare. So looking out for clients' best interests is definitely something that translate into real estate.

Scott Dillingham: 12:49

No. That's so cool. So let's talk about the emotional side of things. Right? So I know that was something that was really big with your social work.

Scott Dillingham: 12:57

How do you in the real estate market, how do you have people not use their emotions? Because I know a lot of times where there's bidding wars, it's emotional based a lot of time. So how do you help people with that with real estate?

Scott Thompson: 13:10

Yeah. It's a good question because it comes up quite a bit. I'll be with a client and we'll go and take a look at a few homes, and it could be, like, the first, maybe even the second time we meet. And they'll see something. They love it.

Scott Thompson: 13:22

And, like, they can picture themselves living there, and they're, like, okay. Let's write an offer. And I said, okay. Do you wanna check out some other homes first? I know with myself, like, I'm a human being too at the end of the day, and I can make emotional purchases.

Scott Thompson: 13:36

I'll go into a store and I'll fall in love with something, and I wanna drop money, and then I won't look at the other stores, the rest of them all. Right?

Scott Dillingham: 13:44

Yep.

Scott Thompson: 13:45

And then I'll get that buyer's remorse. And that's over a pair of shoes or a jacket. But we're talking about houses here. This is a huge lifelong investment. This decision will change your life.

Scott Thompson: 13:57

And so I try and tell people, like, you know what? This is a great home, but the likelihood of you finding another home that you love is very possible. We probably will find 1 next week or in a week after. You know what I mean? And I want you to make sure that you love the area, you love the home, you've looked at all of your options before making a decision like that.

Scott Thompson: 14:18

And, you know, sometimes, it's like, I don't know. Scott really this home. And I say, you know what? Just go home. Sleep on it.

Scott Thompson: 14:25

Let these emotions kinda unravel. Talk to your partner, talk to your family.

Scott Dillingham: 14:29

Yeah.

Scott Thompson: 14:29

And then if you wake up tomorrow and you feel the same way, then we can talk further. But I always tell people to take it easy. I had this guy call me the other day, and he said, Oh, I love this home. Can we write an offer? I'm like, Do you wanna see it?

Scott Thompson: 14:44

He's, I don't know. It seems fine to me. I'm like, let's just go check it out. We went and checked it out. I was like, man, I'm glad I didn't buy this house.

Scott Thompson: 14:52

Yeah. There's other options out there, and we gotta I I just wanna help people make informed decisions, and I wanna let them feel like they're a part of the process.

Scott Dillingham: 15:01

Yep. So it's funny because in the beginning, you said sleep on it. Right? That's what you would do with your social work. You'd tell them to sleep on it, not to trust their gut, which seems like the same thing, like the first instinct of your gut, wait on it.

Scott Dillingham: 15:15

Do you have them write things down on the property or no that they like or don't like?

Scott Thompson: 15:20

Sometimes. Yeah. We'll talk about some pros and cons. We'll, like, you know, just weigh everything out. And then sometimes people will see the price and it might be a bit out of their budget.

Scott Dillingham: 15:35

Yep.

Scott Thompson: 15:35

You're right. And they fall in love with it. It's just like, oh, I'll quit smoking or I'll sell my car or I'll do all these things so I can pay for the mortgage. But at the end of the day, it's like, are you really gonna do that? You know what I mean?

Scott Thompson: 15:47

Are you gonna be house rich and cash poor? Right? I don't want people to do that either. Meanwhile, there was another house that they may could have done the same thing to. Maybe they could have bought a $100 less and put in 20 grands, right, and made it their own.

Scott Thompson: 16:02

They would look just as good, but with their own finishes. So these other options are trying to help people walk through.

Scott Dillingham: 16:09

You know what I noticed about real estate? And every city is different, but with our market here, that even going one street over can have a drastic difference in house pricing, but you're still in the same area. So you can still get that area, but literally one street over and you can save tons of money, which is pretty cool.

Scott Thompson: 16:25

Absolutely.

Scott Dillingham: 16:26

Now another random question for you because I'm a random kind of guy. Alright. When you found your gym, did you look at multiple gyms or did you was it love at first sight?

Scott Thompson: 16:38

Oh, it's love at first sight, I think. Yeah. Yeah? Yeah.

Scott Dillingham: 16:40

You didn't sleep on it?

Scott Thompson: 16:41

I didn't sleep on it.

Scott Dillingham: 16:42

No. You do?

Scott Thompson: 16:44

Yeah. It was good life. It was flashy. They had all the best equipment. I didn't care about the price.

Scott Thompson: 16:51

Didn't care about the drive. And then I'm driving there all the time, and I'm driving past this nice gym that's a lot cheaper every day, and I'm wasting 20 minutes. And I'm just like, oh, man. I probably should go there. So I end up making a switch.

Scott Dillingham: 17:04

Nice. And the new gym's good? Yeah. It's good. That's awesome.

Scott Dillingham: 17:07

Yeah. Yeah. Perfect. I know it was random, but I'm just curious if you, if it was love at first sight there. So perfect.

Scott Dillingham: 17:15

So I know you have an example as well where an investor, a smart investor, he didn't use his emotions to make the purchase. He worked with you and your team to run the numbers, analyze the property, and they found one that really worked. Could you dive into some numbers and process that you guys went through to make sure this was a good good buy?

Scott Thompson: 17:36

Yeah. Absolutely. So I'll use a different example just to kinda set the story for this one. Okay. I had a client reach out to me and he said, I really like this home.

Scott Thompson: 17:48

I wanna buy at this price. Can you give me, like, my net proceeds, my cap rate on all this? I said, we need to find out what you're preapproved for first. We need to find out what your rate is. Because if I don't know your rate, they can't tell you much.

Scott Thompson: 18:01

Right? Yeah. Because if your rate's, you know, 3.4 variable and or it's 5.1 fixed, like, who knows what it's gonna be? Yeah. And that determines everything.

Scott Thompson: 18:12

So I got him to get preapproved with Lend City, actually, and we're kind of in the works. But with my client, I just helped buy last week, 1st time homebuyer. I love 1st time homebuyers. It's exciting, and you can really build that relation. You can build that trust.

Scott Thompson: 18:27

You can educate them so that they're making the right decision.

Scott Dillingham: 18:30

K.

Scott Thompson: 18:31

So this gentleman had the best idea that I recommend to anybody if you can. He bought a duplex.

Scott Dillingham: 18:37

Okay.

Scott Thompson: 18:38

His idea was I want to have a tenant to pay most of my mortgage or all of it, and I still have a nice place upstairs to kind of offset the costs. Right? And so we what we basically did is we looked at the unit below, and we figured, oh, okay. How much can we get for this place? What's the market rents?

Scott Thompson: 18:58

And then we looked at what he's preapproved at. What's his rate? And then we crunch all the number. We and it's more than just the mortgage rates. What's the taxes?

Scott Thompson: 19:07

What's the insurance? We gotta include some maintenance fees in there every month Because your foreigners might blow next month.

Scott Dillingham: 19:15

All the time. Yeah.

Scott Thompson: 19:16

Yeah. Happens all the time. You know, it's 4 grand right there.

Scott Dillingham: 19:18

Even little things like light switches. If the tenant breaks a light switch, even if it's an accident, it's something that you have to repair. It's you just never know.

Scott Thompson: 19:27

Yeah. Always gotta be ready.

Scott Dillingham: 19:29

Yeah. Love it.

Scott Thompson: 19:30

So, yeah, we calculated all those numbers, and I gave it to him. I said, hey. This is what you can expect to get in rent. This is gonna be your payments. Are you okay with that number?

Scott Thompson: 19:40

When we never like to fluff up numbers, like, if the market rent, I would say 18 to 22100 for this home, I'm giving them about 18. This is for sure what you could make up to this number, but let's just stick with the lowest number just so that your numbers are safe.

Scott Dillingham: 19:57

I like that.

Scott Thompson: 19:58

Yeah.

Scott Dillingham: 19:59

I actually like that. The lenders, just so you know, they'll they use the average. So in your scenario, they would've used 2,000 a month for the rents.

Scott Thompson: 20:07

This one was 18.

Scott Dillingham: 20:08

8 but it was 18 to 22, didn't

Scott Thompson: 20:10

18 to 22. Yeah.

Scott Dillingham: 20:12

So they would use 2,000 for the client's application. But if you're using 1800, you're building in that buffer for extra security. So I actually like that.

Scott Thompson: 20:22

Yeah. For sure. And the clients like it too. Right? It's like, okay.

Scott Thompson: 20:25

This guy is not trying to sell me on anything. He's being honest with me, and this is a very realistic number that I can get.

Scott Dillingham: 20:31

K.

Scott Thompson: 20:32

And so when I gave him all those numbers, we went through the house, we talked about the area, and we ended up getting the property at an amazing deal.

Scott Dillingham: 20:41

Nice. So

Scott Thompson: 20:42

A duplex 505,000 in a great neighborhood. So he has 78% of his mortgage being paid by this new tenant that he decides to bring in.

Scott Dillingham: 20:52

That's awesome. And then if he gets married, grows a family, whatever the case may be, he can move out and then rent out the other side, and then we'll have positive cash flow.

Scott Thompson: 21:00

100%. Yeah. 100%. Super cool. Yeah.

Scott Thompson: 21:03

So he's paying, you know, $500 a month plus utilities for a nice place to live. Like, where can you rent for that?

Scott Dillingham: 21:11

Yeah. I agree. That's what we did with our second house. So our first house was in Sarnia, single family house, and then we moved to Windsor. And we rented out the one in Sarnia, but the one in Windsor had to be a duplex.

Scott Dillingham: 21:24

We actually did the same thing, and it was amazing. Actually, my sister lived upstairs for a bit, and now she she works with me. So it's kinda funny, but yeah. So we that's what we did and it works amazing. So I applaud you and your client for going that way because it's so awesome knowing that you have somebody helping pay your mortgage.

Scott Dillingham: 21:43

So, and then from there, what is his goals? Does he have goals to buy more down the road or is this just to help with his payments?

Scott Thompson: 21:51

He wants to invest. He wants to build a portfolio and continue to do this because he's a young guy. He's my age, 35. You know, by the time he's 50, he plans on having several, and then he'll have residual income. So he'll be making 4 or $5 a month

Scott Dillingham: 22:08

Which is awesome. Yeah.

Scott Thompson: 22:09

For doing nothing.

Scott Dillingham: 22:10

K.

Scott Thompson: 22:11

Just because he decided to invest in real estate at an early age. And then when the mortgages are paid off, he'll be on a beach in, in the Bahamas just enjoying life.

Scott Dillingham: 22:21

That's it.

Scott Thompson: 22:22

Yeah. I love it.

Scott Dillingham: 22:23

Good for him.

Scott Thompson: 22:24

Yeah. And you could do it on a a humble income. Like, you don't need to be a millionaire. You don't need to make $100,000 a year to be making these transactions. You know what I mean?

Scott Dillingham: 22:34

I've seen a lot of buyers that will max out what they can buy on their primary residence, and then they've got no money left over for investing. And I think it's smarter to do what your client is doing, obviously because I've done it too, but, is to get something like that where maybe it's not perfect because you are renting out half, so you don't have that privacy of having your own place, but that's a stepping stone. And if he does a couple like that, then eventually he'll have so much income coming in like you just said, where then he can get that massive home that he wants, and then the tenants will pay for it. Not even him.

Scott Thompson: 23:11

Absolutely.

Scott Dillingham: 23:12

So it's so smart to do it that way versus getting your best home that you can afford and then going from there, do it in stages, and then you'll get there eventually. So

Scott Thompson: 23:22

Absolutely. I love it. In a couple years, when he has multiple properties and he's doing very well with it and making passive income, his friends are gonna look at him like, man, like, I wish I would have started when I was your age. I wish I would have listened to you because they might be looking. I'm like, oh, why are you doing that?

Scott Thompson: 23:37

You know what I mean? But it's gonna pay off in the long run.

Scott Dillingham: 23:41

And then they're gonna send them to you, hopefully. Right? Because they're gonna say, look. It was Scott who helped me get here.

Scott Thompson: 23:46

I would I don't see why not.

Scott Dillingham: 23:47

Yeah. That's it.

Scott Thompson: 23:48

I think he's just happy to be at his parents' house

Scott Dillingham: 23:50

for starters. I I would be too, especially if he's at 35. Yeah. Because he said he's your age. So yeah, I'd be happy to get on my parents' house at 30.

Scott Thompson: 23:59

Yeah. I think so. Yeah.

Scott Dillingham: 24:01

Cool. Cool. So do you have any other tips or things that you share often with investors or regular buyers just about mindset or or just anything in general about buying real estate?

Scott Thompson: 24:12

Yeah. There's a lot. I think the first thing that comes to mind is the state of the market right now. There's a lot of talk. The market's gonna crash.

Scott Thompson: 24:22

I'm just gonna wait. But a lot of that you hear from the media, and the media is always scaring people. They scared people with COVID. They they scared people with everything.

Scott Dillingham: 24:31

Yep.

Scott Thompson: 24:32

You look at the Detroit News, and if you're not around this area, you think I'm never going to Detroit because of what's going going on. But I go down there all the time. It's safe. I've never had any problems. Yeah.

Scott Thompson: 24:44

It's a great place to to hang out. And the real estate's the same way. Just rates have gone up a couple points over the last 6 months, but they're still historically low. People were just spoiled getting 1% 2% mortgages. It's not sustainable, right?

Scott Thompson: 25:00

So it was just a matter of time. And this has really happened 4 times in history where the interest rates have spiked up like this. And, usually, it's taken them 17 to 24 months for them to cool down and always go back to an all time low again. For the most part, they go down to a really low point. And right now, so what's happened is, like, anytime an interest rate goes low, the prices usually go high because people and you know this, but for the audience out there that doesn't know this is when you're getting preapproved at 1%, you can buy a lot more of a house.

Scott Thompson: 25:35

Some people are going nuts. So now that they've gone up, the prices since March have gone down about 20%.

Scott Dillingham: 25:42

Okay.

Scott Thompson: 25:43

So you're having a great deal right now. Yes, you're going to pay a bit more interest than, say, a couple of months ago, but it's still a good rate. And what happens when the rates go down now that you have a property that bought at a great price and you're going to have a great rate? So it's a really good opportunity right now to purchase. That's that's one good tip that I always give people.

Scott Thompson: 26:09

I do think the market will start to go up contrary to mass belief.

Scott Dillingham: 26:14

Yeah. I do too. It's a cycle. Yeah. It always goes up.

Scott Dillingham: 26:18

I think even if rates stayed exactly where they are for 10 years from now, let's just say, the house pricing is gonna went up and up. There's a lot of demand in our area and in Canada, so I I agree with you fully.

Scott Thompson: 26:31

Absolutely. Yeah. There's so many economic factors. Everyone's heard about the bridge and the hospital and

Scott Dillingham: 26:35

Yep.

Scott Thompson: 26:35

The battery plant, the $5,000,000,000 battery plant.

Scott Dillingham: 26:38

And that's not Tesla. Tesla, did you hear that they wanna have a battery plant in Canada too? I considering.

Scott Thompson: 26:44

They might as well.

Scott Dillingham: 26:44

It was just he they just talked about it like 2 days ago. And so in the back of my mind, I'm like, is that coming here because of all the other stuff that's coming here that's the same type of thing? Probably not. This is speculation, but potentially one is coming to Canada, which is cool.

Scott Thompson: 27:00

We are the motor city of, of Ontario or maybe Canada. So

Scott Dillingham: 27:03

So I'm thinking, like, we have a good chance, but even if that doesn't happen, there's still a lot of demand in market things that would allow to to grow. And even if we're not talking about Windsor and Essex County, right, and we're looking at real estate as a whole, it always goes up over time. So I agree.

Scott Thompson: 27:21

Yeah. And the other point too was, the province of Ontario released a stat last summer that southwestern Ontario would grow in population by 35% by the year 2035

Scott Dillingham: 27:33

Okay.

Scott Thompson: 27:34

Largely due to immigration. With our politics and the immigration laws. So many people are coming here. It's a safe place to live. There are jobs.

Scott Thompson: 27:44

There will be more jobs. So show me a city with a large population that doesn't have high house prices.

Scott Dillingham: 27:51

K.

Scott Thompson: 27:51

I don't really know any. So Windsor is just gonna continue to grow and grow. I always say that we're gonna be, like, a mini Hamilton.

Scott Dillingham: 27:58

K.

Scott Thompson: 27:59

So, yeah, I think it's definitely a good spot to invest. I love it here. I'm never moving. Another thing too, aside from buying right now with investors, I always like to tell them what are the big ticket items.

Scott Dillingham: 28:14

K.

Scott Thompson: 28:14

You know? So, yeah, you might get a home at a really good deal, but does it need need to be waterproofed? Oh, it's 15 to 30 grand. The roof, it could be 7 to 10. So the AC, the HVAC, the window, it's, like, 15 to 20 grand right there.

Scott Thompson: 28:32

So I'd like to walk people through and educate them. That way, when they're making a purchase, say, if you're doing a flip, it's okay. I'm gonna buy at this price. I have my closing costs. I have all my renovations.

Scott Thompson: 28:44

What's selling in that area that's completely redone? You know what I mean? So, like, you have to incorporate all these factors before making decision. Like, the worst thing that would happen is I tell my client, hey. This is a good deal.

Scott Thompson: 28:57

They spend the money on the renovations, and they sell at the same price or they just break even or make $5. You know what I mean? I don't want them to do that either because that's a lot of work. Right? It's a lot of risk.

Scott Thompson: 29:08

Everything is calculated, so it's all about numbers. It's all about research, providing people with the facts so they can make an informed decision.

Scott Dillingham: 29:16

I agree. And just to share on that, just to elaborate a little bit of a tip too, say you're somebody who is buying to invest or you're gonna flip or renovate a property heavily, a lot of times the appraisers or if you're selling it, the clients, right, if it's 3 months later, they're gonna be like how did the home go up so much in 3 months? And they question it. But I find in those properties and projects, if you can delay selling, maybe rent it for a year and then sell, then when you're asking a much higher sales price, people will look at it and be like, okay, they bought it a year ago, they did tons of stuff to it, We can support the value. There's this just mental trigger when you just add a little bit of time, then people think your property's worth a lot more.

Scott Dillingham: 30:01

Do do you know what I mean? Does that make sense to you?

Scott Thompson: 30:03

Yeah. Absolutely.

Scott Dillingham: 30:04

So for somebody flipping and investing, I think the long game is the best game to to make the most money personally.

Scott Thompson: 30:12

100%. 100%. People look at me sometimes on my clients that own these properties and they're just like, oh, I'm thinking of selling. I'm like, why don't you just hold on to it? And they're like, what?

Scott Thompson: 30:22

Why? Because it's real estate investing is it it really is a long game, and it should be for the most part.

Scott Dillingham: 30:28

Yep.

Scott Thompson: 30:29

You know, because I've met so many clients that said, oh, I bought this place 20 years ago. I sold it back about 5, 6 years ago. Yeah. I made some dollars, but if I would've held on to it, that property would be worth double what it is today. I hear it all the time.

Scott Thompson: 30:47

So if you can hold on to it, obviously, certain people are in different situations they need to sell.

Scott Dillingham: 30:53

For sure.

Scott Thompson: 30:54

But, yeah, hold on to those investments because, you're gonna thank yourself one day.

Scott Dillingham: 30:58

And I like that you said that too because you at the beginning of this, you talked about trust. Right? So you're telling people, well, your commission's online. Don't list right now. Hold on to the property.

Scott Dillingham: 31:10

Right? So it goes back to that trusting. I think even just that statement should help build a lot of trust and people listening to this about you. Like, it's a really cool thing that you would tell somebody that.

Scott Thompson: 31:22

Yeah. Yeah. I try and be transparent and real. And end of the day, it's like, I want people to treat me like that. Right?

Scott Thompson: 31:29

Whatever real estate I had before, and I would expect them to be honest and upfront with me too.

Scott Dillingham: 31:34

No. That's awesome. Cool. So let's say someone, they wanna invest in the area or maybe they're already here in the area with a realtor, but maybe they don't trust them. Maybe they're looking for someone different.

Scott Dillingham: 31:48

How would they get in touch with you?

Scott Thompson: 31:50

So they can reach out to me. My phone number is 226-773-3162. I am with Team Gore and REMAX. So I have an email. They could reach out to me scott.t@remaxcare.com.

Scott Thompson: 32:02

I have a website. Alright. So you can find all of that on Instagram, on Facebook, stop by our office.

Scott Dillingham: 32:10

Yeah. We'll put the links below too

Scott Thompson: 32:12

so people

Scott Dillingham: 32:12

people can see that. Perfect. So awesome. Thanks for coming on the show today. I'm so glad to have you.

Scott Thompson: 32:17

Thanks for having me, Scott.

Scott Dillingham: 32:19

No problem. Take care.

Scott Thompson: 32:20

Alright. Take care.