At age 23, when most people are just beginning to chart their own course in life, Adele Dig started her real estate investing journey that that would shape her future in profound ways. In this blog interview we sit down with Adele to learn more about her 30 years of real estate investing experience.
Starting Out with Grit and Determination
Q: Can you share how you first got started in real estate investing?
Adele: Absolutely. It all started back in 1991, which was the year my daughter was born. I was 23 years old and decided to purchase a triplex. Not only did the property get me into homeownership, but it also introduced me to a concept very similar to house hacking, long before the term ever became popular. As a young landlord, I faced my fair share of challenges, especially with gaining respect from tenants. But I was determined to learn the ropes, and back then, you really did learn by doing. With no internet, coaches, or mentors to guide me, I had to manage the difficulties of being a landlord on my own. From that first owner occupied rental, I quickly learned how a multifamily building made financial sense.
Scaling Up and Learning to Leverage
Q: What were the next steps in growing your real estate portfolio?
Adele: After getting my feet wet with the triplex, my next property was also a small multifamily. Initially, I was of the mindset that paying down the mortgage was the way to go – that’s how I was brought up. But it was my accountant who advised me to refinance my properties, and that piece of advice was a game-changer for me! It allowed me to rinse and repeat the process, effectively growing my portfolio with larger size buildings while keeping the smaller ones. I learned that mortgage debt is not a bad thing if leveraged properly.
The Benefits of Multifamily Investing
Q: Why do you prefer multifamily investments over single-family homes?
Adele: Multifamily properties have always been an attractive option for me because they offer an economy of scale. If a tenant moves out, you still have others contributing to the cash flow, so there’s that “built-in safety net”. With single-family homes with one unit, when a tenant leaves, that income is completely gone until another tenant comes in. Day to day repairs or visits from the property manager, they go to one location for 36 units instead of 12 different locations for triplexes (comparable 36 doors). Tenant replacement is much easier in an apartment building than it is in a single-family home. Appreciation of the building is in our control by improving net operating income, while single-family homes rely on comparables.
From Pharmaceuticals to Real Estate: A Career Transition
Q: Can you tell us about your transition from being a General Manager at a pharmaceutical company to working in real estate full time?
Adele: Sure. I needed more flexible time to be available for my aging parents, so I decided to become self-employed. A mentor suggested I become a mortgage agent because of my love for helping people and running numbers, coupled with my passion for multifamily properties. It was a great fit. I gave my employer six months’ notice, got licensed, and built my business from scratch, focusing on organic growth and through referrals. Starting a new career and small business involves endless hours, the workdays are long and pay is inconsistent which I found rough early on as I was used to the bi-weekly pay check. But I’m not one who was ever afraid of hard work, so I kept at it and found my footing.
My 30 years of experience as a multi-family investor certainly is a huge asset in my new career and helps me have conversations with my clients from a point of having been there myself, having lived the struggles and the successes, and I think they appreciate that.
Serving the Community One Mortgage at a Time
Q: And what does your role as an investor-focused mortgage agent entail?
Adele: Our main objective as mortgage agents is always to get the best mortgage for the client. And that’s not just interest rates, it’s also in the conditions of the mortgage, not all mortgages are equal and it’s important for the client to know that. Although my specialty is in the multifamily space, I still offer services for single-family home mortgages as well. I’m able to help clients in all provinces, including Quebec. No matter the size of the building, it’s important the client understands the impact of their acquisition.
On the commercial residential side, when I validate the numbers that the clients provide, I put together a proforma for lenders, the deal needs to make sense for any lender to be interested. There are certain criteria that must be met, not all lenders are the same, and knowing which lender is the right fit for each deal and client and location is of the utmost importance in our role. It’s gratifying to guide people through the process – like a young couple with a new baby who wanted to start investing. They did not have any experience with this. They considered a triplex in a C area, based on their borrower profile, I advised them to aim higher for better cash flow and consider a better location. Eventually, they found a fourplex in a great location with the help of a competent realtor I secured a strong interest rate through an A lender, and they began their own successful real estate investment journey.
It’s important to me that the clients start their journey on the right foot, it can make all the difference if they continue this journey by having a good experience or abandon it because of a bad one. I always consider the people behind the transaction, what they want and need and I ask, will this transaction add stress to their lives, or will it make their life and future better? This client was so happy and grateful to have a positive cash-flowing asset to help his family, I will never forget them. Of course different clients have different levels of experience, not everyone needs the same guidance.
Reflections and Advice to Younger Self
Q: Looking back, what would you tell your younger self?
Adele: If we’re referring to the investing world, I would advise my younger self to refinance sooner. Initially, I waited ten years before refinancing. If I’d done it at five years,I could’ve capitalized on the properties’ income potential much earlier.
Current Focus and Future Outlook
Q: What are you currently doing as an investor? Adele: Right now, I’m reassessing my portfolio, determining whether I should sell some assets or repurpose them. We are at a stage in our lives, my husband and I, where we’re not in acquisition mode, I’m not saying that if some amazing deal lands on my desk that I won’t go for it, but it’s not the priority. The priority has shifted to enjoying what has been built until now, simplifying our life, having conversations with the adult children – are they interesting in this as a side gig, do we want to pass the baton to them, many questions right now and we’re working on the answers. In the end, there was no point in all this hard work over three decades if we’re not going to take the time to enjoy it.
Adele Dig
Mortgage Agent Level 1 #M22003559
Referral Mortgages FSRA #13316
