I get calls every day asking me to learn a little more about Home Buyers YEG & how we work as a company? Our slogan ‘We Buy Houses YEG’ doesn’t provide much of an explanation but this blog post will!
At HomeBuyersYEG we Renovate houses, Re-develop the property or Hold homes as cash flowing investment properties.
It’s that easy! HomeBuyersYEG searches for mutually beneficial deals in Edmonton where a real estate seller would benefit from a quick worry free sale & we can benefit from adding value to the homes current condition.
Our services are definitely not for everyone but we strive to find the perfect fit & when we do, the seller walks away with what they wanted out of the house & we’re able to get our hands dirty on another project!
Is my house right for this sort of a sale?
HomeBuyersYEG could be the perfect solution for getting rid of your home in many instances. Are you:
Unmotivated to fix up your home before putting it on the market?
Worried about keeping your house neat for never ending ‘walk throughs’?
Is there not enough equity in your home to interest realtors?
Worried your home’s structural conditions would stop future buyers from getting a mortgage on the place?
HomeBuyersYEG works for many different situations & if you’re not happy with our price at least you gave it a shot! Next time you’re thinking of selling call 780-306-1661 & find out what we’d be willing to pay on the spot! Or contact us online!
Real Estate investing can make you hate or love owning property and much of that outcome can be entirely decided by luck. Luck is definitely a factor in Real Estate (like many business ventures) but luck only lasts for so long.. Here’s a few tips I’ve learned from some of the true Edmonton Pro’s who make money over & over on every deal the pursue.
When I first began investing in Real Estate I was convinced the only thing worse than a bad Real Estate deal was letting your capital rot in a bank account or low risk mutual fund. After some time spent working with a few guys who are truly the best in the business, here in Edmonton, I learned there’s always a better deal.
The key is to find the right balance between a ‘rare’ deal and a ‘unnatural’ deal a rare deal happens every day in Edmonton, someone will find a piece of property for 10-$30,000 under the current market price, which is to be expected with real estate as the market is not entirely efficient. An unnatural deal is the type of deal you hear about from a friend of a friend – someone who found a giant lot in Westmount with an old lady who wouldn’t let him pay more even though he insisted (a true story I actually heard once). Unfortunately, waiting for this deal is like trying to win the lotto and the man power to finally find this perfect lot often goes unrewarded. What I’ve learned – be patient but not hopeful and put the time and energy you would waste on countless walk through’s and negotiations towards making that one ‘rare’ deal into a really fantastic flip or cash flowing asset!
#2 It’s Okay To Spend Money on a House Before You Buy It
If you find a really great opportunity but the house is a little rough around the edges, do not skip the 300-1,000 dollars it takes to get the place fully inspected. The main reason is to prepare yourself for what is to come. It may be hard to spend that sort of money up upfront before the house is yours but knowing what’s behind those basement walls or lurking in your sellers attic is definitely worth it.
An example how this could work towards your benefit: I recently purchased a home in Elmwood, it had been on the market for 106 days (usually this is a bad sign) – I spent about $600 on inspections before buying to find #1 the seemingly poorly build upgrades were to code #2 the electrical & plumbing where fine #3 the house was in good shape structurally. After 106 days on market the sellers were pretty much convinced the house was worth land value. I got the house for 285K & the initial listing price was 370K! That’s not too bad!
So, in the future: Don’t fall into the trap of expecting too much from a real estate deal and Don’t get careless about ensuring the asset you’re about to buy is truly as good as you think it is!
Renovations can by fun but the costs add up fast! How can you add value through your renovations and not waste time and money on useless reno’s?
#1 Fix What Your Property Inspection Suggested
Did you have a property inspection when you bought your house? If you bought a house older than 30 years odds are you did! My biggest suggestion would be to go back and find that report then follow many of the small renovations they suggest. In order to do this properly I would hire a handyman, as it will cost you more time than it’s worth to do it on your own, as this task includes a lot of researching technical terms! When should you do this? Preferably before you get renters, many of these suggestions are minor liabilities & odds are, if you’re renting your place, the next buyer will be holding it as a rental property as well. So protect yourself now and create a really good first impression on future buyers when they get your property inspected!
#2 Decide Why You’re Renovating Before You Decide What To Renovate!
Would your kitchen look great with a new back splash? Are the light fixtures no longer in fashion? Those are two really great investments for a home! But are they right for you? Are you planning on holding your home as a rental for the next 5 years? If so, maybe your renters would rather have new locks on their bedroom doors, or maybe even a furnace cleaning! I’ve walked through many houses where I see owners who have gotten a little too excited and renovated before they began renting. The key is to make your house nice enough to get and maintain renters but save all aesthetic improvements for AFTER your renters are moved out and you’re hoping for a quick sale!
#3 Quotes & Questions
Get several quotes from many different professionals before you choose to do any work on your house, and more than just that, ask these 2 main questions:
What would be your price to do this if I paid for the material and you worked hourly?
Ask this question to get a better idea of exactly what people are pricing their personal time at.
How many other jobs are you currently doing? And what is the normal scope of your jobs?
Many times people will take on more work than they can handle. This is a natural aspect of the trades, nobody knows what tomorrow will bring so don’t turn down present opportunities! This can cause a lot of trouble, you need to find someone with less commitments, the more attention they have on your project the better service and quality of work you will get. The second part of this question ‘normal scope’ is because you want the right person for the job. If you’re trying to get a boutique fence for your front yard & you’ve hired a landscaping company that normally builds fences for neighborhoods lining the Henday, you’re paying the same amount for a fence builder who may not understand the intricacies of a small aesthetic fence and will also be much less focused on your project compared to their other projects. I cannot stress these two questions enough, this will save you both time and money!
If you’re anything like me, the price you’re paying for your new house seems like a blessing one day & an absolute rip off the next. I think this is a fairly natural aspect of being human yet it’s also completely insane. This post will explain a few things you can do to help rest easy at night after going unconditional!
ABC – Always Be COMPARING
MLS is an amazing tool, what’s even better than it’s ability to make real estate shopping quick & simple, is it’s database of comparable sales. Do not just let your realtor tell you if the house is a good price based off comparables, ask for the comparables yourself! Then, ask for the neighborhood sales overall; then, ask for the neighborhood sales over the last 10 years. Once you have this data it’s time to seriously review it. From this you should be able to see the neighborhood specific rate of appreciation, as well as any anomalies in the sales data, such as a short term bump in average selling prices (this would be a sign of gentrification).
Know The Neighborhood
Okay, congratulations! You know everything about every house that has sold in the neighborhood in the last 10 years! But do you know anything about the neighborhoods future? What’s the crime rate? Has it been increasing or decreasing? Is there public transit coming through? What are the chances the road your house is on becomes more or less busy? These are all questions for your realtor & push him to back his answers with facts! You’re paying him around $10,000 do not be afraid to utilize him or her to their fullest!
Patience is Key
Realtors are great for a lot of really positive things, but they’re also good at creating a sense of urgency which may not properly reflect your own situation as a buyer. Understanding the real estate market takes time & if you’re going to get a good deal you may have to shop around for a while. The longer you look for a home the more likely #1 your initial offers will get reconsidered by once complacent – now nervous – sellers. #2 The longer you have time for the perfect house to come on the market. Don’t let yourself settle until you’ve really given it a good run, I would suggest 5 months in the winter & 3 months in the summer! Warning: Just because you should take your time it does not mean you shouldn’t have all your bank, insurance & law information prepared & waiting for when you do find that perfect house. Many times it’s the buyer prepared to go unconditional immediately who gets the best deal!
So basically, to find the best house you need research & patience! Sounds pretty easy until you actually have to apply it!
Please check out my business: www.homebuyersyeg.com
This morning I walked through a house with a few investors who focus primarily on ‘Fix n Flip’ investments. The house was priced seemingly low, but the property had some serious maintenance requirements. The saving grace of this deal was the homes design as it was a 4-level split with a door connecting from the garage to the 2 bottom levels while the main & upper floors could use the main entrance.
If you think of it from a creative perspective, this 2,400 SF (total) house was actually 2 homes in one!
The homes layout allowed the original owners to walk away with 288,000 for their dilapidated property while the renovators were happy to sink the extra 20-40 grand it would take to repair the deferred maintenance on this home, as they new they could still make money! Below I’ve listed important aspects of your homes layout that would make your house perfect for a cheap basement suite reno!
2 Entrances: Does your home have a back door? or even better a door directly into the basement? A personal entrance is the first step to a quality basement suite. Even if you have a mud room with 2 entrances, 1 leading down stairs & 1 leading to your main house, that area can be blocked off with a door & used only by the renters.
2 Furnaces: For your basement to legally qualify as a suite you need to have a secondary furnace (one heating upstairs the other heating the basement). This is an expensive renovation and it can cost anywhere from 10 – 15 thousand dollars. If you are unwilling to pay this expense you can always risk a illegal basement suite, or not create a full kitchen in the basement but rather kitchenettes for the tenants. By having kitchenettes the renters are actually not defined as living in a basement ‘suite’ but as roommates.
Windows: Each sleeping space needs to have at least one window in it to fit with government safety regulations. On top of that, Alberta has decided that the area of basement suite windows needs to be greater than 3.57 feet.
Plumbing: Do you have capped plumbing in your basement? This is important as plumbing is fairly cheap unless ground needs to be broken to install extra plumbing attachments. A way to cheaply install new plumbing if you’re creating a new bathroom is to do the plumbing above the concrete level then build a wooden box above it, creating a small step before the bathroom begins.
Odds your house is perfectly fitted for a basement suite are low; although in my experience, if even a few of these needed improvements are in place you’re in a good position! My last word of advice is to understand your rights and your tenants rights. If you’re living in the house while maintaining the tenants the Alberta Tenancy Act does not apply to you, but if you do not reside in the house, I suggest reading the Act to better understand the type of relationship you must maintain with your tenants.
This Blog was created for the purpose of showing Edmontonian’s the financial benefits their Real Estate has to offer with the hope of inspiring a small % of readers to to one day use Real Estate as an investment vehicle.
The main reason I hope to encourage people to use Real Estate as an investment is because of the entrepreneurial aspect involved in the business. Have you ever tried to learn about investing in the stock market? There are hundreds of ‘tips’ or mind numbing formula’s yet the average return rate from professionals, who have given their lives to learning the ins and outs of investing, is just 10%. What does that leave the rest of us with? Our 6% return mutual funds? I would rather pass: yet that’s what is so great about Real Estate.
Real Estate allows you to gain high returns on your investment because you’re allowed to use other peoples money to work for you, much like a financial investor is using your money to work for him, you’re now using the banks money to work for you! But there will be many blog posts to come about the financials of Real Estate investment; the second and best part about Real Estate is that what you learn about the business has a direct affect on your returns. Every hour you put into learning about what makes a good or bad Real Estate investment has a direct effect on the investment decision you make, and unlike financial investing the systematic risk of your investment is substantially reduced.
I am eager to teach you not just about your homes value, but also about the value your idle cash could have in the real estate market!