Hello Everyone Investing in Hamilton Real Estate!!
For anyone investing in and around downtown, news that a brand new 55,000 square foot grocery store (something the downtown has been lacking) is coming to Jackson Square. Link to article. Now our current and future downtown tenants will be able to walk to buy groceries. This is more great news for the already gentrifying downtown area which continues to attract young adult tenants who love the affordable and walkable neighbourhoods such as West Harbour and Corktown.
If you haven’t been downtown for a while, you need to check it out. Just north of downtown on Park St N, is where we set some record high rents on single bedroom apartments. Funny enough I predicted the rent correctly, the PM didn’t think the neighbourhood could support the rent. In the end, our client is ecstatic I was right.
7 key questions for your new Realtor
Here’s a great article written by a successful Realtor and RE Investor titled 7 Key questions for your new Realtor . We have about three investors per week reach out to us looking for help investing in Hamilton so I figured why not get these questions out of the way and answer them out in the public 🙂
1. How do you determine if a property is a good investment?
Short question with many answers but lets try… over 90% of what we do is investment property. We buy what/where tenants/owners want to live, near major infrastructure improvements or employment growth or area of renewal, Mohawk College or McMaster University. We calculate cashflow after mortgage, taxes, insurance, (utilities if included), vacancy, repairs and maintenance, and property management. We know what each property type should yield in cash, potential for appreciation, and what the market is willing to pay for such an investment.
2. Are you an investor yourself?
Erwin – yes, been investing close to six years and I’ve owned singles, doubles, a triplex, student rental, and executive rentals.
Maria – yes, several student rentals and rent to owns.
Tim – yes, several rent-to-owns and an apartment building
3. How much of your business is based on working with real estate investors?
Over 90%. Once in a while, we’ll help existing clients or their referrals with their personal homes. We do such great work on the investment side, why wouldn’t you want someone who works this hard with a strong understanding of marketing on your team for your own home?
4. What kind of real estate investment do you specialize in?
Small multis, student rentals, rent-to-own, suiting basements, renovate and hold, single family. We work hard and we’re on the ground everyday. Any type of residential investing that makes sense we can pretty much cover.
5. How well do you know my market?
If by “my market” you mean Hamilton and you’ve been following this blog for more than a few months then I think you know the answer. Because we’re the local experts, we receive questions from real estate magazines, CMHC, several RE investing networks, other Realtors in the market on rents, what and where to invest in Hamilton.
6. Are you familiar with strategies such as seller financing or LTO?
What are those? Just kidding. Yes, we successfully negotiated a seller take back mortgage on a five plex with terms better than any lender would have given earlier this year. Seller financing is uncommon as most sellers want their investment back.
LTO, I prefer rent to own (RTO) as the response from tenant-buyers is greater in Hamilton using RTO. Yes I do. We’ve done several this year very successfully and we’ve been trained by the masters of RTO, Tom and Nick Karadza of Rock Star Real Estate.
7. Do you have a power team of professionals that you can refer to me?
Have you not seen my million dollar rolodex? Often the feedback we receive from our clients is how easy this experience has been. It’s only easy when you have the best of the best on your team.
The article has seven questions but I’ll add a few more that will save you from making the mistakes I’ve seen investors make working with other Realtors.
8. What kind of post sale support do you offer?
Most Realtors will disappear or won’t take/return your calls. We do things differently. Our job is done when you tenant your property. We won’t do the work for you but we will absolutely coach you through the process, even kick your ass (figuratively) and help manage the manager. We want you to be successful as nothing makes us happier when you are happy.
9. May I have your references?
Absolutely, approach me at the next REIN meeting and I’ll point you to the nearest client of mine and they can tell you what it’s like to work with us. Or read our testimonials here all of which were unsolicited.
10. Would you buy this property?
We ask ourselves the same question every deal and if we think the property is worthy of an offer, then answer is always yes.
Hope that helps! Till next blog post – happy Hamilton investing everyone!!
Erwin | MrHamilton.ca
PS: If you are just starting out investing, start by investing in yourself by getting training. Click here for FREE Training.
PPS: If you want to hear from me more often, like or follow me on FB or Twitter respectively by clicking on the below.