The number one question I get asked hands down is, “I’m looking for a deal, do you have one or know about one?”
EVERYONE is looking for that! The funny thing is that there are deals out there BUT they definitely do not look like what most investors have in their heads.
Here are the “DEALS” people are usually searching for:
- The “Good luck” Deal – Low cost, high rent, no work to be done, sit pretty and collect the $$$.
- The “Maybe/Kind of” Deal – Low cost, mid rent or vacant, needs some work but maybe they can flip it for more in a few years without adding anything of value.
- The “Renovate and cash in” Deal – Low cost, horrible condition, vacant, needs lots of renovations, hoping for much higher rent. Flip it in a few years and maybe recoup investment and make a profit. **this is still possible but lots of risk and money spent.
I’m not saying that the above “deals” are bad, sometimes people get lucky. But when you invest your hard earned money, you cannot depend on luck. Strategy and understanding the market in specific neighbourhoods is more important.
I have helped my clients buy and sell multiplexes for years and they are an amazing investment! However I have a lot of other clients who feel like that is their only option to invest and feel priced out of the market. They could not be more wrong!
While so many investors are looking at multiplexes and new construction for where to put their investment dollars, sometimes old and small is a great way to go as well.
We have the fortune of living in an incredible city filled with opportunity for everyone. There are so many smaller apartments that are under $300,000 that, if maintained well, would be a great way to start accumulating properties and creating a substantial portfolio. Do they all look shiny and new? No, they don’t. Do they have character and easy/affordable improvements that can be done? YES, they do! And guess what? Depending on the neighbourhood and when you add those improvements the rent can increase quite a bit and because your monthly mortgage payment low to begin with, you have the ability to make a tidy profit every month.
You do not need to be a millionaire to invest in real estate. Some of the top real estate investors in the world started with small properties and then slowly continued to accumulate more and more properties over time.
One thing I always want my clients, friends and family to know is that you CAN do anything you set your mind to! Do not be limited by what everyone else is doing. Do what you can do NOW! Opportunities are there for those who seek them out.
If you have questions, I’m a phone call away.
Danny Kohli
RE/MAX HALL OF FAME
CHAIRMAN’S CLUB
514 907-9477
