Hello Everyone Investing in Hamilton Real Estate!!
Are you a sophisticated investor? What does that mean to you and why is it important to be one?
I’ll give you one little hint, sophisticated investors do deals and unless you do deals, you’re sitting on the sidelines.
Sitting on the sidelines is something I have a vast amount of experience in. Back when I was in my early 20’s (I know I still look it as I was reminded when carded at the casino last month…) I analysed the stuffing out of every property that looked interesting on MLS. Duplexes, triplexes, what if interest rates doubled, what if it sat vacant for six months, what if… what if… what if… hours and hours on staring at my sophisticated spreadsheets, more hours and hours of wasting our broker’s time looking at property without ever pulling the trigger. In hindsights, we wasted a lot of time and worse did not capitalize on many fantastic deals on multis in great neighbourhoods in west Hamilton. Oh well, no use in regretting the past, take responsibility to learn and not make the same mistakes in the future.
Fast forward to the morning April 18th, 2012. Home inspection day for my JV’s student rental. I’m fashionably late so as to stay out of inspector Joe’s hair so he can do his job. When I show up and ask how is it? Joe tells me the basement is catastrophic. Don’t sound so sophisticated do I??! Where the sophisticated investor in me did rear itself was on my way to the home inspection, I noted a for sale lawn sign, snapped a picture with my camera phone and called to make an appointment to see the house after the inspection.
After viewing the home, meeting the owner, learning how the foundation was repaired last summer, seeing the kitchen and living room, I got that feeling in my gut I was buying the property. After checking the rest of the house, counting the 4 bedrooms, 2 full bathrooms, planning for two more bedrooms, negotiating a price and close date, I left and returned back with an offer in two hours. Funny enough, I wanted the house so bad, I failed to look at the basement bathroom until the home inspection 🙂
What’s my point? Other than don’t get so excited you forget to look at the bathroom but rather are you prepared to write an offer today? If an opportunity presented itself, could you buy it within two hours? Do you know your systems, know the neighbourhood, know your tenant profile, know your team, know your numbers, know what an opportunity looks like? Or do you need to go home, call everyone you know and ask their opinion, spend five hours staring at a spreadsheet? Not me (anymore). I made one phone call to my JV, told her we’re writing on offer on this property and we take possession mid June. Funny enough, my JV still has not seen the property.
So are you a sophisticated investor? Can you write an offer before a real sophisticated investor does to avoid competition? If no, that’s ok, everyone has to start somewhere, most likely you lack the team or experience or both. Make the effort today to align yourself with people who have what you want. Get mentor, get boots on the ground and look at lots of property or do what many of my clients are doing, work with a Realtor who knows exactly what to be buying.
Hope that helps! Till next blog post – happy Hamilton investing everyone!!
Erwin |Â MrHamilton.ca
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