Hello Hamilton Real Estate Investors,
Today’s post is inspired by my clients Diane (REIN member) and Tania who recently purchased a Mr Hamilton’s Best Buy, signed a tenant, collected first & last month’s rent one week before closing at rent of 9% (annual, plus utilities) of purchase price and the tenants moved in 11 days after closing. Um, yes please may I have another?
What a job well done! Want to know what they did so well to make them Rock Star Investors? They acted as sophisticated investors. Here are some highlights:
- Great Marketing – the subject line on the online classified ads were attention grabbing: “FREE Cup of Tim’s Coffee Every Day for a Month!!” as the property was located across the street from a Tim Horton’s. Do you think the phone rang? You read the results, think that was worth a $50 gift certificate?
- Jamming as many tenant leads into the property at once – not only is this a great time saver but it creates competition as there are many tenants to one quality property. Diane and Tania only showed the property only three times in two weeks.
- “Home Staging” – well not quite… the renter showings occurred before closing so the vendor’s furniture was all there so tenants could easily visualize where their furniture would go. Make sure to use the right clause in your offers!
- Creative financing – Diane and Tania knew going in the property would require some renovations (knob & tube, galvanized steel plumbing) but they wanted to preserve as much capital as possible. So they arranged for private financing to purchase the property, pay for the renovations and now they will pursue a traditional mortgage where they will be able to extract some equity. Plus they got the seller to pay for the closing costs :O
- Building a team of professionals – Diane and Tania have aligned themselves with excellent professionals. From Diane: “I must admit, we are feeling more and more like Rock Stars and it really helps when you have a good team! We
have a great Realtor and we are working on the rest of our team!!!
Thanks Erwin and I will keep in touch regarding our next property purchase!!”
Well done ladies!!
So when you see Diane and Tania at a future REIN meeting or Hamilton investor meeting, please do congratulate them both for taking action and taking steps towards living their lives on their terms.
Till next time – Your Life, Your Terms
Real Estate Investment Adviser
p: 416-848-6293 x 211
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