Hello Real Estate Investors in Hamilton Ontario!!
In case you missed it and I know many of you have because you look surprised when I bring it up…. up to 1,900 jobs on the way to Hamilton in the north end. Click here for the article and here is my summary and analysis:
- 1.5 billion dollars in contracts have landed in Hamilton for wind energy
- Majority of 1,900 jobs will be in Hamilton to fabricate the steel, build the towers, and deliver the finished product to the Kingston area
- Some good news for the steel industry but this is no accident, given Hamilton’s history in manufacturing steel and being home to the largest port on the great lakes it only makes sense
- this project will create highly skilled jobs (ideal tenants!) and create opportunity at McMaster Innovation Park and CANMET
But enough about boring jobs that you’d only care about if you were investing in Hamilton real estate… Anyways, nothing makes me happier in my work than working with wonderful people like one of my youngest clients Evelyn. Evelyn is a Rock Star of an investor. She is highly educated, full of energy and she takes action at the young age of 26 (Quick sidenote: you don’t know how many investors I’ve met who have read every book, attended every course, joined REIN for 20 months and still have yet to purchase their first investment property. All because they lack action). Here is Evelyn’s story of her rise to Rock Stardem in her own words.
A friend once told me this and I thought it was kind of ridiculous. I mean, we’re supposed to work hard, right!? But then I thought he might be on to something here and agreed that my money should, in fact, work hard for me. I decided that the best way to leverage my time, skills and money was in real estate.
But first I needed to make some money so that I could put it to work. So when I finished grad school two years ago I diligently saved my money with the goal of purchasing my first investment property.
During the spring of this year a friend suggested that I attend a real estate investors network meeting. The meeting was of course for investors, so when I sat down at the table I felt compelled to disclose, “I am an impostor.” I smiled. “But I would like to be an investor.” I was welcomed with much encouragement and helpful advice. That evening I met Erwin who was supporting my hometown, wearing his silly Hamilton Tiger-Cat’s jersey. I knew that I wanted him on my team to help me purchase my first property.
We looked at several places on the Hamilton mountain as my goal was to do a rent-to-own (RTO). We put in an offer on a house that I really liked, but it was rejected. And I went from feeling high to feeling dejected. But my investing plan was soon to be perfected… Two days later Erwin suggested that I abandon my RTO plan and consider a buy-and-hold rental in the transitional West Harbour area of Hamilton. That afternoon we viewed a stunning fully renovated 2 storey 3-bedroom brick house in this area.
It was in a good location and would attract good tenants – I knew that I wanted to own it! It was for sale by owner and the young man appeared motivated to sell his newly renovated vacant house. I was with my boyfriend at the time and the seller thought we were just a cute couple buying our first home. I didn’t have the heart to tell him that I was an investor. Instead, I used my fierce face-to-face negotiation skills with a light dusting of charm and wit. I offered a 15 day close and we went back and forth until he reluctantly agreed to $13 000 less than asking, “Alright. I really like you and I want you to have this house.” He extended his hand for an old fashioned handshake; I reciprocated.
My initial excitement soon faded and I felt incredibly overwhelmed, scared and anxious as the reality of such a big investment for such a little girl settled in. Support from Erwin and his lovely assistant Maria were invaluable as they were there every step of the way. I got everything in place including the home inspection, mortgage, everything with the lawyer, insurance, utilities transferred, advertising and showing the property, screening tenants and finally selecting excellent tenants – all in 15 days while I continued to work full time!
Erwin suggested I ask for $1300/month plus utilities. I thought my little home would rent for maybe $1150 – but Erwin was absolutely right! [Erwin here, I’m a bit of a perfectionist when it comes to my craft and a critical part of my work is knowing market rents. With the network of Realtors I work with, my clients who own property in Hamilton, the property managers I speak to almost weekly… I do this everyday. I know my rents :)] My tenants (with long-standing jobs and no kids and no pets!) were more than happy to pay premium rent for a premium property – and wanted to move in right on my closing date! We met at the restaurant where my tenant works to sign the lease and we had dinner before her shift. They insisted on paying for my meal and beer and gave me $2600 in cold hard cash for first and last – before I even owned the house! They can both walk to work from the house and they told me they are the happiest people in the world that I selected them to be my tenants. My single family home cash flows at $500/month [Evelyn manages the property herself but subtract about $200 for maintenance and vacancy allowance], so I’m the happiest person in the world – but I didn’t tell them that. I will let them think that I’m doing them a favour by renting my lovely house to them.
It’s been 7 months now, and I am still a satisfied investor and my tenants told me that I am an excellent landlord. Have there been surprises, challenges and plumbing issues? Of course. But I prefer to call them “learning opportunities” – and they will make me a better investor in the future. As I continue to surround myself with successful investors and build my team, I know I will be able to handle all the challenges that lie ahead.
Earlier this year I was just a regular 26 year-old working hard for her money – and now with my first investment property, my money is working hard for ME!
Post Script: Evelyn has done very well, so well that I estimate they she could sell her property for over $15,000 more than she paid for it in today’s market but good luck prying this property from this young lady! Maria and I are so very proud of her.
So, can the rest of you Hamilton investors out there take action like a 26 year old girl? I know you can 🙂 but if you can’t, I know of other Realtors in Hamilton I can refer you too 😉
Hope that helps! Till next blog post – happy Hamilton investing everyone!!
Erwin | MrHamilton.ca
PS: If you would to work with Mr. Hamilton (he is only accepting a small number of new clients) please email Maria and she’ll set it up: Maria (at) MrHamilton.ca
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