Hello Hamilton Real Estate Investors!!
For this coming summer, I am strongly considering ditching the eye glasses and undergoing a laser eye correction surgery. As a precaution, my father insists I first consult with an Opthamalogist as to whether I would be a suitable candidate for the procedure. So I did make the drive all the way to Scarborough to see the eye professional and I feel good about it. Investing half a day to see a third party eye professional is a worthy investment for my eye health. How does this apply to buying houses?
At the last REIN ACRE event, REIN’s Chairman and Chief Legal Counsel, David Franklin was giving us REIN members a tips on the process of buying property. The Realtor (like me) is key in that they bring him the deal, the Realtor advises on the financials AND as a second set of eyes he’ll contact his property manager to verify estimate rents, tenant profile, etc… However for our processes at the Mr. Hamilton team, we take it a step further: we invite a property manager or contractor to meet with our client at the property, during the home inspection, while the sale is still conditional.
This strategy is beneficial in several ways:
- The PM or contractor can provide you quote for any renovations required to make the property maximum rent ready.
- You will need such a quote to accompany your mortgage application should you choose to include the cost of renovation into a purchase plus improvements program
- You complete an extra step of due diligence as the PM is your second set of eyes to provide feedback on the neighbourhood, property, tenant profile and rent estimates.
- The contractor/PM communicates directly with the home inspector on whatever issues they find. No need to play broken telephone plus PM’s generally understand construction better than us investors.
I’m bascially doing the same by seeing the eye doctor before I go under the laser because my eyes are extremely valuable to me. Houses are valuable too so taking this extra step should make sense to all you sophisticated investors.
Till next time – Happy Hamilton Investing Everyone!
Erwin | MrHamilton.ca
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