Had to break it to my lovely wife that, yes, while we're planning a HUGE renovation for our new family home - we also just took on another mammoth project. It didn't go as bad as I thought it might.

Phew.

I'm a big fan of using OPM (other people's money) when buying places. Makes total sense to me. This project wasn't an exception to that. We definitely wanted to use OPM. We did face a bit of difficulty getting the financing we wanted from the lender we wanted. BUT -> where there's a will there's a way. We had the will, we found the way.

We borrowed money against our own homes via the Home Equity Line of Credits we all have on our valuable homes :)

Problem solved.

We nearly didn't close on the purchase. One of the partners (ahem, Sevan) forgot about the meeting with our lawyer to close on the purchase. So our lawyer had to have a "special" meeting for him. Haha. All good though.

One important part of this I wanted to bring up, was that we decided to create a holding company (a corporation) to own the property. It sets up an agreement for our partnership and creates another entity from which we can better use to manage the triplex financially, and for tax reasons.

While this is all happening - I called up Rob from Prolific Work. He basically did all of our first triplex for us and lives right by this new place. Seemed like another perfect fit. The verdict? He's totally on board. We established a budget, and off we went!

Next blog entry: RENOVATION with photos!!!

So, I'm out shopping with a client - looking for an investment property. Those that know me know that I specialize (and adore) working with multi-unit residential rental homes like duplexes and triplexes. I honestly feel it's the best type of investment out there. My financial planner hates me, I'm sure (Hey Adam!) - but I can't think of any better way of using money to make money.

Anyhow, I won't go too long on that part of it, that's another conversation. I've documented that before and I'm actually working on documenting it again for all to see. So, ya, that.

Alright, so I'm out with my amazing client Mary and out we are looking at a few triplexes. We came across one - a really, REALLY ugly one. Once again -> I think it's perfect. She has the vision as well and sees the potential to turn this thing around and make it a cash-flow cow. So we leave, we talk about the house on the way back home, and call it a night so that Mary can think about it.

In the end - it's the right project for her, just the wrong timing, so, regrettably, she has to pass. That's ok. It has to make sense.

I couldn't get it out of my mind though. I firmly believe this has the potential to be an absolute steal of a deal. For a variety of reasons, this place is priced low and there's every reason to believe that I could negotiate the sh!t out of this place. I personally just bought a home that my wife and I are renovating and moving into, so my capital is committed already. My mind instantly goes out to "Who is in a position to take this on, who's wealth can I build right now?"

I took that mentality and looked at my investor list - made a few calls. I was really proud to see that a bunch of people were able and willing to take this on! But like all things in life, the first one to show up usually wins. In this case, my pal Sevan (and his wife Aslin) stepped up immediately and recognized the opportunity.

We went right to bat for this one.. and nailed it. The place was listed at $719,000, had previously sold for $715,000 - though that buyer absolutely fell off the face of Earth and didn't show up. We bought it for $685,000.

While figuring things out financially and what this means for his family, Sevan really felt better splitting the winnings on this one and bringing in partners. This is where Ryan (and his wife Josie) and I come in. Sevan asked us if we'd consider joining him on this for 1/3 ownership each. Ryan was all in. I had to figure out a few things (including telling my wife how I could do this again to us) - but I was in. I'd figure out my side. I told them I was all in as well.

... and so it begins

renovations are next!

TriplexTwo - Post 2 - The closing

TriplexTwo - Post 1 - Got the itch