Sahil Jaggi is passionate about real estate and investing. His passion is reflected in his success at Re/Max Realtron, where he has received the company’s 2016 and 2015 Platinum Club awards.
A practical and precise thinker, Jaggi has built a career based on the economic theory he learned at Wilfrid Laurier University. Jaggi’s training in finance landed him a position at CIBC World Markets in Manhattan and then to a position in corporate sales at Nestlé Canada. In 2010, at age 24, he began investing in real estate in Toronto with $80,000. Over the past seven years he has built a personal portfolio of over $10 million.
“I made successful decisions, which helped me to build credibility as an investor. I (am) a consumer of my own product with proven benefits. This makes it easier for me to reach out to other investors and guide them professionally with real estate advice.”
Today, at 32, Jaggi is also the owner of Mink Homes, a real estate investment firm that focuses on investment properties as well as the construction of homes in Toronto and the GTA.
“Real estate is a tangible asset. Building houses and buying houses (provides me with) a huge sense of achievement. My niche is selling detached investment properties in Toronto. It’s important to specialize in one thing and become the master of it rather than a Jack of all trades.”
For professionals who are new to real estate and investing, Jaggi says paying a premium for better locations is worth the money. Being vigilant is also key. He advises looking “for the right property and striking when the opportunity arises.”
While passion for the business is important, Jaggi counsels to not become “emotionally attached to properties.” Professionalism and objectivity are important qualities to maintain. Have a “professional team,” Jaggi suggests, that includes real estate salespeople and lawyers whose expertise you can access to ensure your due diligence is done. “Know the challenges faced with financing and understand your financing,” he says. It is imperative, he stresses, “to have enough money in the bank account for three months of mortgage payments without rental income to (be ready) for unforeseen circumstances.”
He says, “Real estate has consistently outperformed the stock market.” He suggests that individuals who want a start in real estate and investing buy a detached home and rent out part of the home to cover their mortgage payments. He also suggests finding like-minded partners to help with the investment.
“Toronto is a high-tech hub – a second Silicon Valley,” Jaggi says. This, along with its manufacturing base, makes Toronto an attractive place for overseas investors. With Barrie, Hamilton, Whitby and Peterborough close by, all with homes ranging from $300,000 to $500,000, there are good investments available. He suggests starting out with two to three investments in local properties to “understand the business inside out.”
The Vancouver market, says Jaggi, is more “speculative.”
“Understanding clients’ expectations, their needs and their wants” is critical, he says.
The property case studies he prepares for clients are precise. “A case study is a detailed end-to-end process of covering each guided step for making an investment. It is not just about throwing listings at the investors, it’s literally about hand holding them so that they can be very clear about what to do and expect as an outcome.”
The studies inform clients in detail about the area and neighbourhood of the property, its position on the street and the direction the property faces. It includes information about its access to public transit, its distance to the core and its ease of connectivity. Jaggi also includes the purchase price, cash flows for renovation or renting, and a one- to three-year projection for revenue. “I also cover the common pitfalls they should look out for so that the investment doesn’t fail and what to expect.”
To attract clients, Jaggi offers these tips: “Learn all the basics of the trade. Then find your niche and build your personal brand.” The next step is to “reach out to your clients and position yourself as a specialist in your niche area.” This, Jaggi says, will allow new professionals to “leverage your niche skills” and build on your success stories.
“Always prepare for the worst and hope for the best,” Jaggi says, “Always understand the risks completely and ask how prepared you are.” Clients, he adds, must also understand the “downside” of a deal so that there are no negative surprises.
Staying informed about local, national and international influences on real estate and investing is vital for professionals.
“In 2018, I believe that housing sales will slow down due to stringent mortgage rules and high interest rates,” he says. “However, major metropolitan (centres) in Ontario and British Columbia will still be the strong places to invest as rental income will continue to rise. The outlook for 2018 is slower than usual but Canadian real estate fundamentally remains strong due to the continued interest from local/international investors, Canada’s political stability and a positive economic outlook.”
Jaggi was inspired by Malcolm Gladwell’s book Blink: The Power of Thinking Without Thinking. In deciding what makes a good investment, Jaggi follows a formula of homework + repetition + instinct. “Follow your instincts,” he says. “Once you do something with passion it becomes instinctive.”
J. Lynn Fraser is a contributing author for REM.
