Who is Shane Melanson?
I started like many Canadian real estate investors- looking for a way to replace my 6 figure income.
I moved to Calgary AB at 17 and got my BA in Economics. My first real estate investment was in 2004; a 1943 war-time house with no basement or central heat. I made many mistakes.
When I started my real estate career I was young, no family, so working long hours and weekends didn't bother me.
Eventually I built a small portfolio of single family properties and was flipping homes - I figured this was the way to invest in real estate. Buy undervalued residential houses, fix them up and either rent or sell them.
From 2004 to 2008, this strategy worked very well. In 2008, when the financial crisis hit, and my rental properties were making a few hundred a month in cash flow, all of a sudden, 1 vacancy whipped out my cash flow for the year. Then, rents started falling. I was being forced to sell properties. I recall having to rent out the house I lived in, and moved into a fixer upper I couldn't sell.
The little empire I'd built was crumbling. My foundation for investing was built on speculation and hope - not sound principles.
Sure, I was a millionaire on paper at 30, but I was miserable and working 2 full-time jobs- my day job as a commercial lender and nights and weekends flipping properties. Equity rich, cash poor.
When the market shifted in 2008, I was forced to sell many of my properties. It was my wake up call- investing solely for Market Appreciation was gambling.
I had bought into the typical real estate investing Dream: owning 10-17 Single Family Homes and one day I could retire...
Around this time I met my future father-in-law, a 40 year veteran developer and commercial real estate investor. He showed me how to raise money and invest in value add commercial properties.
He taught me a systematic way of finding the right properties. How to raise money from investors and assemble the right teams to execute our business plan.
Today, I am not retired (I still actively invest), because I love it. Each property I invest in has the potential to earn high 6 and generally 7-figures. I control my schedule and love what I do.
There is still work to get to my dream, which is to pass along a certain amount of cash flowing real estate to my 3 kids - and is what keeps me going.
In my experience, few real estate investors have stress-free financial independence.
Just because you have a portfolio of $20M or $50M in real estate holdings, it may not equate to having enough passive cash flow to stop working. The amount of cash generated from your assets- will determine how much passive income is left at the end of the month.
And this is why I share some of the lessons I've learned and continue to learn as a real estate investor. I'm on the journey, like you.
I have the unique benefit of accessing some of the top commercial real estate investors in Canada and the US. And, I want to share the lessons learned with you.
Because commercial real estate (CRE) is generally misunderstood by outsiders. It's common for new investors to be taken advantage of by insiders.
Not understanding the "Game of Commercial Real Estate" can be very expensive. I've seen investors lose as much as $6,000,000 on a single property.
The Game: is understanding the Players, Properties and the Money.
You can listen to the 164+ stories and interviews on my podcast, The Investing Advantage. I still get emails from investors in Canada and the US telling me how much they appreciate me sharing some behind the curtain insights. What it was really like to be a developer and CRE investor.
If you’d like to learn how to find these types of commercial properties and raise enough money to invest in larger real estate projects (like commercial deals- Retail properties, Multifamily or Industrial buildings) I encourage you to download a copy of my latest book - Club Syndication.