Seasoned real estate investor Brock Frost bought his first property in 2011 at the age of 30. Using a line of credit as a down payment, he purchased a beat-up, semi-detached home in Cornwall, Ontario for a whopping price tag of $138,000.
Instantly, he was hooked.
Over the next 3 years, he did whatever he could to acquire as many properties as possible and at the age of 33, he had amassed a portfolio of 20 homes valued in the millions of dollars. Doing what he needed to do, Frost borrowed from private lenders, renovated properties and refinanced them, used vendor-take-back mortgages, joint venture partners and everything in between. Today, he owns more than 150 units with an approximate market value of $50,000,000. At the age of 41, Frost has become a multimillionaire many times over due to the success of his real estate investments.
“I am just getting started,” stated Frost. “I still have the same hustle that I started with 11 years ago, now just with a lot more experience, knowledge, credibility and of course, cash, behind me.”
Frost is currently focused on large scale projects which he personally manages on behalf of himself and his private equity partners. Most of his projects are purchased under corporations in which individual investors own a piece of the pie based on their individual capital contribution. Unlike many investors out there, Frost believes in investing his own capital into each one of his projects.
“If I believe a project is good for my investor’s money, I better be prepared to put my own money into the game too.” Frost believes that by investing his own funds into each project, it creates credibility and a sense of security for his equity partners. “If they win, I win; and if they lose, I lose. My money is just as important as theirs.”
Similar to his private mortgage company, Capitis, Frost has yet to lose on any single real estate project over his 11 year career. He has a disciplined approach to investing which he as fine-tuned over his career as follows:
- Live Debt Free – Frost personally lives debt free, outside of his countless mortgages. He has no credit card debt, no vehicle loans, no lines of credit, no tax arrears, nothing. “When you live debt free, not only do you save money in wasted interest, but you have absolute control over your finances as you don’t owe anything to anyone. Furthermore, it makes any loan or mortgage application that much stronger.
- Record Keeping – Frost tracks every single cent that enters and leaves each one of his bank accounts like clockwork. He believes in being extremely organized with all aspects of budgeting and that proper record keeping not only keeps yourself accountable but also allows you to properly plan for the future. “Proper books can do volumes in terms of which areas of your investment career need adjustments, which are performing well and help create strategies for future deals. I have never met anyone who is financially free yet at the same time unorganized with their record keeping. The two simply cannot exist together.”
- Cash Reserves – Although he firmly believes in the power of leverage, Frost also believes you should keep a specific amount of cash (based on your overall portfolio) in order to protect yourself from market corrections, unexpected costs, potential litigation, tax reassessments or any personal or family emergency in general.
- Transparency – When investing with other people’s money, Frost believes it is imperative that his investors have access to all information at all times. “Being transparent with the project, in general, puts everyone at ease and allows for better group collaboration in the event major decisions need to be made. It also creates a sense of community and aids in fostering a smoother operation overall.”
- Profitable for Everyone – Frost has had tremendous success raising capital from investors for his real estate projects and private lending company, primarily due to the fact that his investors earn good returns on their capital. “I protect my investor’s money at all costs,” said Frost. “This is a reputation-based business and if you lose someone’s money, you will be out of work in no time.” His investors typically invest in multiple projects too, once they feel comfortable with the project structure and Frost’s ability to manage.
For more information on investing in one of Brock Frost’s real estate projects, contact him directly through his website www.brockfrost.com.
