First off – I’m thrilled at the response from a lot of you. There are so many of you that have reached out to me (keep it coming, I’m here to help!) and asked questions. Clearly you want to build your wealth for your future and for your kids (just like us). So, I’ll keep writing and giving you the goods so you at least have the knowledge to know this exists!
Alright – last time I talked about our very strict criteria of what we were looking for. If we couldn’t find that, we weren’t interested. That was key to recognizing an opportunity. If we had left it as “any property in 416/905 that was under $1,000,000” – that would have been impossible to make a decision on. Because saying yes to any place meant that I was saying no to countless other options. The typical “paralysis by analysis” conundrum. We weren’t going to go down that route.
That's a big tree. Right next to the house. No problem - just need to factor in to the decision!
We visited a bunch of houses. We even tried offers on 5 or 6. We were always true to our spreadsheet and our math. If it didn’t make sense on paper as an investment – we weren’t interested. No emotions were tied to this at all. We weren’t caught up in bidding wars. We had prices that worked in our spreadsheets and ones that didn’t. Simple!
Then came this house by Corso Italia (St Clair West). It was a semi-detached, 3 unit house. It had tenants in 2 of the 3 units. I had a really hard time getting an appointment to see the house. Tenants weren’t the best of the best, let’s leave it at that. On top of not living to standards that are acceptable, they also wouldn’t agree to show the house. I knew this wasn’t a problem that was unique to us – I’m sure others were also not able to get in.
That made this an opportunity. If the seller can’t get potential buyers into the house to look at it, my competition was weak. And with so few appointments made, it probably made the seller a bit nervous and put the seller in a position where he had to take any offer, otherwise it may not sell.
It took a while for me to get into the house. When I saw it, let’s just say I wasn’t too impressed with what it “was” but I did feel amazing about what it “could be”. That was enough for us. I didn’t even get a chance to see the basement unit, I had already decided that the basement was a write-off and that I would start from scratch down there anyways.
The house was listed at a number the seller felt was fair. We didn’t necessarily agree (and I’m a realtor – actually, an amazing one – so I know values), but we liked the house enough to consider submitting something that made sense for us. I submitted an offer at about 85% of list price (IN TORONTO!) and one of my conditions was that all the tenants would leave before I took over. It totally got rejected. 🙂
The other agent and I got along great. He said they would sell for 99% of list price and that the tenants would remain. I thanked him for his time, wished him the best, and we parted ways.
A month later – after they dropped the price $30,000 – I called them up again and said, “Hey, remember me?”
I said we were still interested – but at the same terms I presented before.
30 minutes later – I got a call back — “Donny, put it back on paper, I’ll have the offer accepted if you can close next month – WITH vacant possession.”
Next –> preparing for closing and renovations!