"Inspired to Invest" Podcast

Insider Tips To Crushing It In Real Estate Investing

• Serena Holmes • Episode 70

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Inside tips to crushing it in real estate investing!

Welcome back to "Inspired To Invest" ep70 with Giancarlo Carangelo. To watch rather than listen, click here

If you've ever wondered how you could transform customer service skills from the restaurants industry into a thriving real estate business, then this is an episode you can't miss. 

Join us as we sit down with Giancarlo Carangelo, a seasoned real estate professional from Montreal. With over a decade of experience, Giancarlo walks us through his journey from high school to becoming a successful broker and property manager. 

He shares the pivotal role that listening to clients and tailoring strategies to their needs played in his success. From navigating the shift from brokerage to property management to offering invaluable tips on tenant screening, Giancarlo’s story is a treasure trove of insights for anyone interested in real estate.

Scaling a real estate portfolio comes with its own set of challenges, and Giancarlo doesn’t shy away from discussing the financial hurdles he faced. Discover the strategy of leveraging other people's money (OPM) and the crucial importance of educating oneself in property management. 

One of the episode's highlights is a jaw-dropping account of a seemingly perfect tenant who was running an illegal pit bull breeding operation, drawing significant media attention. 

This episode is a must-listen for both novice and seasoned investors, packed with real-world experiences and practical advice that could save you from costly pitfalls.

Thank you to Giancarlo Carangelo from Proventure Real Estate Corp for supporting this month's episodes. To learn more about how to scale your real estate investment portfolio with their support and guidance, go to https://www.realproventure.com/ online, @real_proventure or @carangelorealestate on social.

Need support underwriting potential property investments? Check out PropertyCast.io - https://propertycast.io?via=serena

“Inspired to Invest” is proud to support the Beyond Success Program, a not-for-profit financial literacy program for students, launched by More To Give & MAK Investments. Find out more at @more2give.ca.

Join us again Oct. 30 to learn more about how to maximize the value of a property and your entire real estate portfolio!

Thanks again for tuning in & remember, "when you invest in yourself, the sky's the limit!"

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Serena Holmes:

Welcome to the Inspire to Invest podcast, where we're sharing stories from real estate investors and how investing has changed their lives. This episode of the Inspire to Invest podcast has been brought to you by ProVenture Real Estate Corp. Hey, everybody, welcome to Inspire to Invest. I've got Giancarlo Carangelo here with me and he's joining us from Montreal today. He is a seasoned real estate professional with more than a decade of experience in the industry. He's built a very successful management and investment business, starting locally in Montreal, but also expanding to the Dominican Republic that's just there in January, so you can talk about that. Giancarlo's expertise spans everything from property management and investment strategies to even international real estate markets. His commitment to growth and innovation has positioned him as a leading figure in real estate, specifically deding himself to the community, delivering exceptional value and big results for his clients. So thank you for taking time out of your busy day today. How are you?

Giancarlo Carangelo:

I'm good. I'm good. Thank you for having me. I'm excited to be here.

Serena Holmes:

Yeah, awesome. So obviously you've done a lot in maybe the last 10 ish years. Can you take us back a little bit more to what was what life looked like prior to real estate and how it came into the picture for you?

Giancarlo Carangelo:

Yeah, for sure. I'll take you as far back as my high school years, where I was trying to find my way and I wasn't really sure exactly what I wanted to do. But I knew I wanted to be somebody that could produce results and that could base his performance on customer satisfaction. And when I discovered real estate at a very young age, I right away knew that this was the path that I wanted to pursue, as I was always interested in properties and houses and I started off my career as a real estate broker. Coming from a restaurant background, I felt that real estate and restaurants were very similar because it was based on customer service and satisfaction. Ten years later, I went all in and there was no looking back.

Serena Holmes:

Awesome. I can understand that the hospitality industry is obviously well suited in either capacity. Are there any specific things that you think that you do differently when it does come to customer service and just making sure that you are providing that level of service to a client to reach their goals?

Giancarlo Carangelo:

Well, I like to say that what I like to do differently is really listen to my clients and identify their individual needs, Working with different people. Everybody has very specific needs when it comes to goals or projects, so really taking the time to listen to them and identifying those needs which could help me tailor the approach and the strategy that I would take when working with these clients.

Serena Holmes:

Yeah, no, that makes perfect sense. I actually have a mentor of mine that I did a lot of digital marketing training with. He wrote a book called Suggestology and the whole purpose is that you obviously learn more by listening, but you can also control the direction of the conversation and just to your point, like catering what they really need, because you're obviously responding to them based on all the things that they're asking or what they're saying that they want. Now, were you always an investor focused realtor, or did you start more on the residential side and then how did things kind of shift along the way?

Giancarlo Carangelo:

So I actually started my career as a real estate broker. This was my one foot in the door Before coming an investor. I took the time to learn the business from the sales perspective and then ultimately transitioned into a property management role where I started my own property management business. There was a big demand there with my clients because I worked specifically with first-time buyers and investors. So I was often getting a call on how do I find a quality tenant, how do I screen them? I saw the need for the property management business and once I accumulated a certain amount of experience between both brokerage and management, I said you know what, if I'm doing this for somebody else, I definitely could do this for myself.

Serena Holmes:

Yeah.

Giancarlo Carangelo:

And I feel that that was my unfair advantage. Whereas some people go straight into real estate investing and learn as they go, I had the opportunity to learn before becoming a real estate investor.

Serena Holmes:

Now, in terms of the market, I know that you've got stuff that's outside of your local area, but what are things like in terms of the landlord tenant laws in Quebec compared to like how strong they are here in Ontario?

Giancarlo Carangelo:

Well, I could tell you that they're similar in Quebec as they are in Ontario. For a landlord in Quebec it could be quite challenging if you don't have the right tenant. It could take up to a year to evict a tenant for nonpayments tenant. It could take up to a year to evict a tenant for non-payments and, as you know, with the Ontario board you make one mistake on the application. There's no mercy. We need to restart everything. So all that I find, can be avoided by doing the proper due diligence when the pre-screening process happens and the visiting process.

Serena Holmes:

Yeah, are there any kind of tips and tricks that you would pass along to someone that is going through that on their own?

Giancarlo Carangelo:

I would definitely say that, for myself, the pre-screening process starts from the moment we get a phone call inquiring about one of our rental properties.

Serena Holmes:

Yeah.

Giancarlo Carangelo:

We have a certain specific set of questions that we ask the potential candidate before we even determine if they're eligible for a visit or not. It's about maximizing our time, of course, and I'd rather show units to three qualified tenants as opposed to 10 people who might not be qualified.

Serena Holmes:

Yeah, is there anything that you ask for in addition to kind of the standard paperwork?

Giancarlo Carangelo:

Well, we like to look at the entire history of the tenant. So obviously they need to prove proof of employment and any type of you know, revenue or income. But we also look at the overall history. So the system that we use to screen our tenants could tell us if they've had any sort of legal judgments, bankruptcies, going back to 1985.

Serena Holmes:

Oh, wow.

Giancarlo Carangelo:

Yeah, so with that we generally get a good idea of the type of tenant, and then after it all depends on the person and how they are presenting themselves.

Serena Holmes:

Yeah, yeah, no, I think that that's smart, just to kind of make sure that your ducks are in a row before you even meet with them. Now, in terms of your actual portfolio, can you talk a little bit about what that looks like? I know in the bio we talked about spanning in international markets and I know that you have stuff in Ontario as well, so can you talk about what that looks like and what your sweet spot is in terms of you know what your preference is in terms of investments?

Giancarlo Carangelo:

So we I started in investing in revenue properties plexes, duplexes and triplexes here in Quebec. I started around 2019 investing in properties after I learned the business for about four or five years prior. We've purchased three multifamily properties in Quebec before deciding to expand outside of the province and ultimately outside of the country. Our sweet spot is definitely plexes between two and four units. I do have some condos in there as well, both in Montreal, and I've invested most recently in the Dominican Republic. So it's anything that we could offer quality products to people who are looking to live both long term and with the exception of our Dominican investments that are more of a short term rental.

Serena Holmes:

Yeah, where in Dominican is it located?

Giancarlo Carangelo:

Punta Cana.

Serena Holmes:

Yeah, yeah, figured probably, but I do know a lot more people that are starting to buy things in that area as well, so we can talk about that offline. When you look at kind of your trajectory over the last 10 years, what would you say is something that you're most proud of?

Giancarlo Carangelo:

Yeah, so over the last 10 years, since I started in my career, I would definitely say I'm most proud of the business that I've built for myself. I don't really have an extensive academic background, nor did I have the privilege of having someone in the business that I had a pre-existing relationship with to help really take my hand and guide me and guide me. So everything that I've learned today I've learned through blood, sweat, tears, sleepless nights and, as you know, the best educator is trial and error. So I've really had the privilege of trying the business out and making these mistakes and learning them, building my business from the ground up. For example, my management portfolio was at 125 doors, solely managed by me and a small team of three others that I built from the ground up. So that'd probably be my proudest achievement in business is really building the business from scratch, because, as some of us may know, it's quite difficult to build a business and challenging, especially in the first three years or so.

Serena Holmes:

Yeah, I mean, it most definitely can be, and I think, for anyone that has been in real estate in the last, you know, 12 to 18 months, like it's been exceptionally challenging for a number of different reasons. Which brings me to my next question is, just in terms of things like challenges and obstacles, what would you say is one of the biggest obstacles that you faced as you have started to grow your portfolio and then extend it kind of beyond your backyard?

Giancarlo Carangelo:

Scaling. Scaling has definitely been a challenge for two reasons, one of them being the financial aspect of it. Before I learned the concept of OPM other people's money and leveraging that strategy, scaling was definitely a challenge, and afterwards it became finding quality people. So, whether that looks like laborers, workers, painters, even, for example, leasing agents that lease my rental units, finding reliable people has been the second challenge, I would say.

Serena Holmes:

Yeah, I can understand that. I ran a staffing agency for 18 years. I know all about finding good people and and managing them when they're not. In terms of lessons and things like that, is there anything that you can speak to that knowing what you know, now you might have done differently. That was like a big lesson too, that knowing what you know now you might have done differently.

Giancarlo Carangelo:

That was like a big lesson that I would have done differently. That was a big lesson, I would say. It comes from the property management aspect of it. Before I got into property management, I thought that, because I know brokerage and I know sales, that managing properties is as easy as one, two, three. And then, when I ventured into the property management business, I quickly learned that there's a lot of complexities that need to be understood. For example, the tenant rental ward going back there, you know, really dotting your I's and crossing your T's and really, if I, one of the biggest challenge lessons that I've learned was to inform myself more before venturing out into the management world.

Serena Holmes:

Yeah, yeah. No that makes sense Now. On that note, we're just going to take a really brief break for our sponsors, which is ProVenture Real Estate Corp this month. So thank you for your support and we'll be right back.

Giancarlo Carangelo:

At ProVenture, we are committed to helping individuals achieve their real estate goals all across the country. Whether you're just starting or looking to expand your investment portfolio, our tried and proven methods are designed to help guide you every step of the way. With our expert support, navigating the complexities of the real estate market becomes an opportunity for growth and success. Let's turn your real estate ambitions into a reality.

Serena Holmes:

I value transparency, integrity and trust. If you choose to work with me, you can be assured that business will be conducted honestly and openly. Time is of the essence in this industry, so you can expect nothing short of quick, clear communication from me. I'll keep you informed every step of the way so you feel expect nothing short of quick, clear communication from me. I'll keep you informed every step of the way so you feel comfortable throughout this entire process. Our homes are where we eat, sleep, relax and play. My clients' best interests are at the heart of everything I do and, with this said, my service to you doesn't end when the transaction does. As your realtor, I'll not only help you buy and sell your property, I'll also educate and support you along the way. I want to help you fulfill your goal of homeownership and become your trusted real estate resource for life. I can't wait to share my passion for real estate with you. More importantly, find you the perfect house to turn into your home.

Serena Holmes:

Looking to buy, sell or invest in Durham region or Toronto? Let's chat. Is it real estate investment? You're considering a goldmine or a landmine?

Serena Holmes:

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Giancarlo Carangelo:

One of the craziest things. There's definitely a lot of crazy things that's happened, but I would say the one that stands out as of late would be in one of my rental units I had pre-screened a tenant who looked great on paper and she had dogs, and of course, here in Montreal it could be quite difficult to find an apartment with a dog. I myself am the owner of a pit bull, who is a gentle giant, so I know what it's like, so I always try to offer that to my, my tenants. Yeah, and I was presented with someone who had came with a clean application, you know, checked out. However, she had a pit bull where I said you know what, as a dog owner, I understand, so I'm willing to make the exception.

Serena Holmes:

Yeah.

Giancarlo Carangelo:

Fast forward. Maybe less than six months later, I started getting calls from the neighbors and the tenant in the same building saying there's plenty of animals downstairs. When we investigated um, it turns out that she was running an illegal pit bull breathing operation.

Serena Holmes:

Oh dear.

Giancarlo Carangelo:

And the SPCA, which is a local animal organization here in Montreal, got involved.

Serena Holmes:

Yeah.

Giancarlo Carangelo:

And there was an internal investigation and next thing, you know, every news channel in Montreal was calling me to get my story.

Serena Holmes:

Yeah.

Giancarlo Carangelo:

I was featured on CTV to talk about this illegal pit bull operation that I had in my apartment and that was definitely one of my craziest experiences as of late as a realist.

Serena Holmes:

Because she was doing something like that. Was there any kind of exception that you could kind of go to the landlord tenant board with just to get her out under those circumstances?

Giancarlo Carangelo:

that would be different from like the typical process unfortunately, when it comes to the landlord tenant board, they don't make any of these exceptions. When it is for animals, they're really specific on what they do make exceptions for, and it's usually non-payment of rent. So even if I would have taken it to the landlord tenant board, unfortunately whether she had one dog or three dogs or an illegal pit bull breathing operation, it wouldn't have done anything with a tenant board.

Serena Holmes:

Wow. So then how did you get her out? Like how long did that take? Like the full year kind of thing?

Giancarlo Carangelo:

Well, no, actually we put enough pressure on her that with the complaints, between an accumulation of the complaints between the neighbors, the management team, the tenants and the registered letters, she hit the high road. And you know it was an overnight move which was sort of a blessing in disguise, but she left behind a very, very specific mess for us to clean that costed thousands of dollars, I can imagine, and it wasn't pretty, but at least she was out.

Serena Holmes:

Yeah, yeah, well, at least she left. So I think that's the main thing. Now. You talked a lot about kind of self-educating and being self-made. Is there anyone that you've learned from over the last 10 years that you can kind of say is like gave you incredible pearls of wisdom or the best advice that really helped you along your path?

Giancarlo Carangelo:

I'd say over the last 10 years I've definitely looked at figures in the real estate world, so a lot of social media follow people that I follow, youtube and everything but I would say that my biggest, you know, influence came from one of my mentors who really taught me that real estate is a marathon and not a sprint and it's about taking careful, calculated risks and all about doing our due diligence before actually diving into a venture that could potentially cost us time, money and sleepless nights.

Serena Holmes:

Yeah, no, I think that that's really wise. Now, as you've been growing your portfolio, what would you say is next for you? Do you have a particular number of doors that you're aiming for? Amount of monthly revenue.

Giancarlo Carangelo:

So I'm saying now, in terms of scaling our portfolio up, we have had enough of our own backyard and we're looking to extend south of the border and across the country to it and understand that in my case, for example, if I could manage a property in my own backyard, then I could manage a property in Ontario, dominican Republic or the United States. It all comes down to again finding the right people. So we're looking to expand south of the border and hopefully we would like to accumulate another 50 doors in the next 12 months.

Serena Holmes:

Yeah, I do know a lot of other investors that are really passionate about the United States. Like even at the exchange, there's just so many things that are more favorable for businesses. You know, some of the price points are really ideal for cash loans like that. So I know you know a good handful of them that are even offloading properties here and they're just moving everything down south, so we can chat about that in a little bit more detail. Now, in terms of things like financial freedom, do you have a particular financial freedom number in mind, um, and have you reached it? Are you still working towards it?

Giancarlo Carangelo:

I'm gonna say I'm still working towards it for sure. Um, for me, I don't necessarily look at the monetary aspect of it, I look more so at the amount of doors. So I know that I myself, personally, would like to own 250 doors to allow me to have the financial freedom and the freedom of time essentially to do the things that I want with, you know, spend time with my family and traveling, and all while being able to operate my business virtually wherever I am.

Serena Holmes:

Yeah, yeah, I know that. That's, I think, the perfect dream for most people. How would you say real estate investing has changed your life up until this point? When it does come to things like time and opportunity.

Giancarlo Carangelo:

Well, it's definitely allowed me to get a taste of escaping the rat race. You know, I've been in this full time now since 2015. So I've never really had to clock in. I was fortunate enough not to have to clock in, clock out and, you know, have a really structured week am a creature of habit. Sometimes repetitive routine could be redundant. So being in the real estate world right now and an investor, you know it really allows me to go through every week not knowing what's going to come, and every week and every day is essentially just different, which keeps it fresh and enjoyable for me.

Serena Holmes:

Yeah, no, that makes sense. Now for anyone that is watching or listening. Is there anything you want to kind of instill in them when they're just studying? Started on their journey?

Giancarlo Carangelo:

Well, my famous line is learn before you earn, which is essentially what I did. You know, and I thought it worked out well for me because I know some people. For example, throughout my career I've ran into people whether it was at events, suppers or whatnot that said, yeah, I used to invest in real estate and I had a triplex, but then I realized managing tenants was not for me and it caused me a lot of headache and it really scarred them from the wonderful world of real estate. Learning before you earn can save you time, money, headaches, and I was able to determine from a certain point that if I could do this for my clients, I could definitely do this for myself.

Serena Holmes:

Now you've kind of created this new company called ProVenture Real Estate. Can you talk a little bit more about what that service can do for people that are starting out or want help scaling their portfolio?

Giancarlo Carangelo:

Yeah, so ProVenture is a project that we've launched. It's a new project that a partner of mine has launched as of late, and we are a full service real estate firm that offers bespoke service to our clients. Essentially, we like to help people achieve their real estate goals, so whether they're looking to go from zero to five doors or from five to 20, we could help them throughout the entire process. We have a fully tested system that we have done ourselves. So everything that we are talking and discussing with our clients and showing our clients is tried and proven strategies. Discussing with our clients and showing our clients is tried and proven strategies, and it's about helping individuals achieve their goals when it comes to real estate because, like myself, at one point in time I thought it would have been impossible.

Serena Holmes:

Yeah.

Giancarlo Carangelo:

There's this misconception that it's for the wealthy and it's for you. Know, you need money to make money. Well, I like to teach that and pass that on to people who have the same doubts and unanswered questions that I had at one point in time.

Serena Holmes:

Yeah, and that's the thing I think. Sometimes it can be isolating and overwhelming and there's just so much information out there. To distill it down and actually figure out what's relevant can be a challenge sometimes. So learning from someone that's been there and can, you know, hold your hand, at least to some extent, I think, will at least help you get started. For anyone that wants to get in touch with you to learn more about the opportunities that you have or to get this kind of support, what's the best way for them to reach you?

Giancarlo Carangelo:

The best way, I would say, is through my Instagram at Carangelo Real Estate. I receive all my messages and all my information is their phone number, email. So just by going to my Instagram you could get all the avenues to reach me through that one channel.

Serena Holmes:

Okay, perfect. So we'll include all those details and more in the show notes below, Of course. Thank you for taking time out of your day today and for supporting the show this month For anyone that's watching. If you have enjoyed this episode, please make sure that you like, comment and subscribe. You can also follow along on social at Inspired to Invest podcast. And remember, when you invest in yourself, the sky's the limit. Thanks again, Thank you to ProVenture Real Estate Corp for bringing you this episode of Inspired to Invest. The views represented on this podcast are for general information only and does not constitute investment or other professional advice or an offering of securities. The host and guests featured on Inspired to Invest make no representations as to the performance of. Thank you.