43. Jesse J. Fragale - Awesome Real Estate Market Insights

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Welcome back Entrepreneurs! Jesse J. Fragale is a tenant representation broker at Avison Young in the office space while focusing on the multifamily space as an investor. He brings great insights into personal growth, and investing and the Canadian real estate market. He has a great social media presence which got a great bump when he got asked to make content for Bigger Pockets to round out their roster with a commercial heavyweight!

Differences Between the US and Canadian Real Estate Markets

Jesse has a lot of great insights into how the Canadian market is different. He will tell you how lucky we are in the US of A to have access to 30 year mortgages and 1031 exchanges! Canada on the other hand has mortgage rates in the 2% range and offers some relatively stable returns. Jesse assures us that there are no major hurdles to Americans wishing to invest in Canada. Canadians can even “port” their mortgage to another piece of real estate within 90 days! He also describes how the CHMC (like FNMA and Freddie Mac in the US) has put an end to cashout mortgages with some exceptions.

Jesse details how rent control is distorting the market in Canada and how this is leading developers to build condos (where you can cashout) versus apartments, where the payoff may be further on down the line. Fully 93% of Toronto apartments were built before 1970! With the passage of rent control in Ontario in 1975, construction of new rental units was all but over. Listen to the entire episode to hear his insights into inflation!

Working Capital Podcast

Jesse started the “Working Capital” podcast just before the pandemic. He has reached 85 episodes (don’t forget to check out episode 81 with yours truly 😉).  He would like to see people move away from more speculative investments to cash flowing real estate! There were too many “cash flow” podcasts out there so he settled on “working capital” in the sense of getting your capital to work for you.

Best Advice

Ask for help if you want to experience personal growth!

Quote of the Day

“Real estate is a business where you can download inflation to the customer (tenant)”

Jesse’s Personal Journey as an Investor

Hear his journey from student housing and single family on to condos and multifamily!

Books that have Forged Jesse J. Fragale as an Entrepreneur and a Leader

The Most Important Thing by Howard marks

Mine!: How the Hidden Rules of Ownership Control Our Lives by Michael Heller and James Saltzman

Bonus: Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier by Edward Glaser

Connect With Jesse on the Web

Follow Jesse on LinkedIn: https://www.linkedin.com/in/jessefragale/?originalSubdomain=ca

Bigger Pockets: https://www.biggerpockets.com/blog/contributors/jessefragale

Working Capital Podcast: https://workingcapital.libsyn.com/