My third week was definitely the most busiest of them all.
I searched on MLS.ca every day, got some viewing, made some offers, some got accepted and making endless phone calls.
It doesn’t come easy.
to read my previous week
Relationship with realtors and endless phone calls.
I started my week by searching for homes that I’d be interested in seeing for flips.
MLS.ca website, is an amazing tool to start with. Anyone is able to see properties listed by any realtor in any area.
I’ve browsed through hundred of properties.
I made a few good finds. I started my endless phone calls with one realtor at a time, starting with one that is selling a properties from my picks. I had organized viewing appointments with them in that area.
My picks were always a list of 3 to 4 houses in the same area, to make my trip out of town worth my wild.
My niche area is quit large. I split my niche in 3 parts, South, central and North. This way it is less travelling per realtor.
Although some realtors don’t mind driving a full hours just to show me a house or two, after a while they may not want to anymore knowing that I may not even make an offer on some of these visits.
Some realtors don’t even want to show me any viewings cause my niche is too large.
Others realtors I liked. I’m even gonna say loved.
Even if I haven’t done the exercise yet, I know that finding properties with realtors is not the best way to get the really good deals. That part will come in the following weeks.
Viewings, the good, the bad, and the ugly.
Every buyers wants the good. The turn in key, the one ready to move in without any repairs or renos. Honestly there is nothing to do with those, cause it’s already done.
Most buyers do not want to waste extra time and money on renovation before moving in a home new to them.
A few hand full will take the bad and the ugly. The ones needing repairs and renovations in order to make it livable and pretty again. Those are the ones easiest to negotiate, flip and make profit.
With a back ground as a Structural Engineer for 10 years, basements and crawlspaces is pretty much the first thing I wanna see in any property.
I’ve seen basement that had foundation wall bulking inwards and leaking concrete walls. Main floor joists and beams you can push a pencil through without effort.
I immediately walk away form them.
These issues can still be repaired. An offer can be made, so low that they buyer often doesn’t even look at the conditions.
There’s also roof issues and leakage in walls creating molded walls, leaky windows.
These issues can be repaired, and with proper negotiation, the sellers price can be lowered enough that there can still be good profit depending on the property.
Offers and Negotiation
Making my first offer was actually kind of scary.
Did I do my numbers right? Will I blow the deal of because my initial price is too low? What if i go too high and can’t make profit at the end? Did I miss something when walking through the house?
There was actually a counter offer on my first offer, but I pulled back cause I chickened out.
My confident grew with every offer afterwards.
The following offer cancelled themselves out somehow.
One seller pulled their property off the market after my offer.
Another one had other offers after me. As per my coach’s advise, I was not going to be involved in a bidding war.
As the week went by, my viewing pick got better, the houses were better After Reno Value, and negotiations also got better.
So much so, that my last two offers got accepted.
Now I’m stuck with two signed deals.
I’m not worried, since I add conditions in my offers that allows me to step back for a deal at anytime. With this, I feel more and more confident in my offers and negotiation.
Completing the tri-force
I concentrated so much on searching and finding deals, I know have the issue of getting the rest of my business in order.
My business has been incorporated for over a month with my lawyer.
I still need an accounting a bookkeeper, investors and of course open a business account to allow money to be transferred to.
My endless phone calls continues.
At this point of writing this blog, I don’t know the difference between an accounting and a bookkeeper.
On my first call of seeking an accounting, I introduced myself, explained my situation, the type of company I have and honestly told him I’m a new company without experience regarding accounting or bookkeeping.
The accounting obviously knew what my deal was, and offered a 1hours session showing me how to manage my paper work and make he’s job easier for me.
I accepted the session without hesitation.
To start my following week, I still need an imported piece of the triangle, investors.
Hence the continuous endless phone calls.