It's amazing what we get into as housing providers. Here's a look at the inside of a newly renovated unit months after a tenant move in. While this unit obviously went off the rails, the importance of tenant profile and proper screening can not be overstated.
Don't let FOMO in real estate lead to costly mistakes. With the spring market around the corner and possible rate cuts on the horizon, it is easy to speculate that prices may jump over the next 12 months. This may cause you to want to jump into a property that you don't fully understand, or that doesn't quite fit your criteria. DON'T do it!
I've been seeing an "opportunity" make the rounds on social media regarding an off market property in an area that I am intimately familiar with. In fact, I own property 3 doors down. This flip deal was introduced to me by a wholesaler that I know. Intrigued, I dived a bit deeper. After doing some basic due diligence, I determined that the renovation costs would be too high to safely have a profit margin on this particular property. Since the owner wouldn't budge on price, I let it go.
Two days later, the opportunity came through my inbox again from another wholesaler, this time with a $15k increase in purchase price, a renovation budget cut in half and a "profit margin" attached that didn't include holding costs, closing costs or Realtor fees.
And then 3 days later, another wholesaler had it listed for an additional $5k.
This story just goes to show that doing some basic due diligence is super important. Especially if you are unfamiliar with the area, the strategy or the market you are looking at. There will always be people that are looking for a quick profit and that are trying to sell FOMO to make it happen. Focus on your fundamentals and invest wisely.
Have questions about your portfolio or want an outside opinion? Reply to this email and I will schedule a free half hour call with you to go over your situation! Talking to the right people can really save you money. I really believe that this is the time to expand your network and learn from those around you. I'll be in touch!
I'd love to hear your thoughts on this! Have a great week while working past those obstacles on your climb to success. Let's Grow Together!
-Jonathan Beam
Real Estate Investor and Entrepreneur
Jonathan Beam is a real estate investor in the Niagara region who is passionate about helping you achieve financial freedom through real estate. He works with new and experienced investors to formulate a plan that fits your specific situation and provides market guidance and consultation on the best places and strategies to pursue within the Niagara Region. Book a free, half hour no obligation consultation to see how he can help you to achieve your goals. His travels are available at www.realestateandrepeat.com
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