London Ontario’s Real Estate Market Growth & Why

   There is a huge demand for secondary markets like London and this is where the commercial and industrial investors are going as per this latest financial report.

   With that and there being a shortage of decent rental properties, we are seeing rental rates increasing and income property prices increasing as well.

   Getting a cap rate of over 6% is a challenge for residential investors, however, the long term investor’s confidence level is quite high and with the average Canadian’s debt load at its peak, the demand for rental units, be they multi-family, townhouses or apartment condos and single family homes is very strong.

   We can toss and turn all night long about interest rates until the cows come home, I know from experience that smart investors buy value first and then allow the economy to catch up, even if it takes a year or two.

   I, being an advocate of positive cash flow from day 1, the last paragraph was difficult for me to write!

   One thing I have learned over the years is to dress to fit the change in climate, Mother Nature can be finicky and act without any warning, so can the economy, the bureaucrats and the rent review board!

   Winter is coming, London is expanding, interest rates are low and the door is open for those seeking good financial opportunities in real estate.

  Quite a few times, people looking for income properties in London Ontario miss the boat because by the time they have confirmed all the facts, or,  ‘run their numbers’ (usually erroneously), or, gathered solid information, the opportunity is gone because of other buyers or the property has been sold!

   I see this daily, the fence sitters, the ‘time is not right’ folks or in 75% of the cases, their analysis of the property and income is faulty, that their illusion or perception of cash flow, appreciation and risk tolerance is inconsistemt with what wise investors do!

  The average real estate professional relies on what he or she  hears & perceives, a great real estate professional assimilates all the available facts, sifts out the chaff, and makes the go/no go decision on his/her ability to adhere to what I call the brutal truth.

   Great investors never buy because of what the market is doing, they don’t care. It can be up, it can be down, they understand cash flow, they look at the big picture and they think long term.They buy on expectation and sell on results! Period.

   As J.P. Getty said “Investors bank on climate, while speculators bet on the weather.” In other words, the real estate market works more like a barometer than a thermometer.

   Getting good and accurate information and then being able to act decisively on that information is what really separates the wannabees and the wealthy.

Your boat will never come in if it never goes out.

Ty Lacroix Broker of Record & Owner

 Not All Realtors Are The Same, This Is What We Do When We Work With An Investor Client

• First Time Client Meeting: We understand that each & every client has different needs, goals and financial and risk tolerance. We spend an immense amount of time discussing, understanding and designing a systematic approach to match or even surpass your criteria. It can be an apartment condo or townhouse to rent, to multifamily to small commercial properties.
   
• The Process: We then prepare a list of properties that will match your criteria and goals. We perform our due diligence on each property, verifying expenses, leases, licencing, permits, zoning, public transportation, schools, area rents, vacancies and perform our 44 point check list to ensure we are thorough. If we have a successful acceptance of your purchase agreement, (which has conditions and wording to protect you) we work closely with your lawyer to ensure he/she has all the information required to ensure the closing takes place. We even perform a final walkthrough before closing to ensure that what you purchased is in the same shape or better than when you decided on the property and that all chattels are included and  in good working condition.
   
• Leases and Screening Tenants:  If you wish us to be involved in attracting tenants, doing credit checks and verifying employment and references and preparing a lease, we are very good at that. If, however, you wish to do your own tenant attraction, screening and leasing, that is fine with us, we do tenant leases only as an add on to our services. We are not Property Managers.
   
• Optimizing Cash Flow & Capital Improvements: We will prepare a spread sheet outlining what you can do to maximize your investment and cash flow in the years going forward.
   
• Selling: 99% of our clients are of the buy and hold mentality but weekly we are contacted by other owners asking us to sell their investment property or properties. Our selling process is even more meticulous than our buying process, the reason being, having all documentation and pro formas in place, we eliminate 90% plus of the stress in the closing period, proving that our properties sell for more and in less time!

When we work together, you’ll receive the following services that no other Realtor in the country provides, which includes:

• Access to my monthly wealth-building newsletter where I share different real estate investment strategies you can use to increase your income and build wealth.

• My special 6 part quality tenant training, I call it “The 80/20 System for Hassle-Free Management”, where you’ll learn how to screen tenants for your rental properties.

• Our 5 Point PropertySearch where we’ll help you identify undervalued properties.

• For properties that match your criteria, we will walk through them together and analyze the condition and profit potential.

• We will help you with legal contracts and amendments and we will negotiate your purchase for the lowest price and best terms.

• We will manage the closing process with all involved parties (lenders, home inspectors and appraisers)

• We will help you advertise, market, show and screen prospective tenants for your property.

• We will help you create an auction like environment for your rental properties whereby, prospective tenants will compete for your property.

• We will teach you How to Show & Prepare Your Property to Prospective Tenants

   P.S. You can set this entire plan up inside a special RSP account using your existing retirement savings to buy  rental income properties for cash. The monthly rental income will actually go directly into your special RSP providing the funds for your monthly fund investment.

   P.P.S. Investing is not risk-free. You can lose money depending on your skills as an investor. Your risk of loss is reduced dramatically because you’ll be buying a property that you can always resell.  You could over pay for a property by not using a skilled Realtor, you could choose bad tenants by not using a skilled Realtor and not adhering to the steps a skilled Realtor will lay out for you.

  P.P.P.S. Yes, I hear this all the time, what about a new roof, or new windows, appliances etc. So what? Your tenant is paying down your mortgage every month.

 Search income properties for sale in London Ontario .

                                           Flipping Houses or Renting Houses?

  Everything you read or see on those reality shows is about buying properties to fix up and resell.   Very seldom do you hear about buying a property and holding it as a long-term rental property.

 When mulling over these two options it really boils down to this:

 Do you want to be a fixer upper and every day you are doing, doing, or would you prefer to eventually sit back and receive income for the rest of your life?

  A fixer upper fixes up a place and if all goes well, makes a profit. Once the transaction is complete and they have collected a cheque at the closing, they are done and go back and repeat the same thing over again, or, try to. . There is no additional income or profit available. In order to make any more money, you have got to and fix up another place.

 Work & take a risk… get a cheque. Work & take a risk… get a cheque. Work & take a risk… get a cheque.

  No work… no cheque

  Flipping houses is a job and you don’t get paid unless you work.

 Even worse, the profit on a flip is fixed based upon the final sale price of the home. No matter what you do, you won’t be able to make any additional profit on the deal. Sadly, this profit can disappear very quickly if you encounter unforeseen problems in your renovation.

 Who really wants another job?

 The investor who focuses on investing for the long-term in rental properties enjoys annual income for life. They work to buy a property and get it rented to a quality tenant and then they sit back and collect rent cheques each month. This is the same as a writer who works to write a book and then sits back and collects royalties from their book sales or a song writer or movie actress, do it once and keep getting paid!

 Work & take a risk… get a cheque once. Work once & take a risk… keep getting cheques!  

 When the writer wants more cheques, he or she simply writes another book. They work again for a few months and then start collecting two cheques each month going forward. These cheques tend to compound on top of each other. The reason why is because every time they work they get paid multiple times from their effort. They’re still getting paid from their first book as they write and complete their second book.

 Even better, the profit on a long-term rental is unlimited as you collect more and more income with each passing year. One rental home that pays you $5,000 a year can ultimately generate $100,000 of income in 20 years, $200,000 of income in 40 years.  And here is the best part; your tenants are paying down your mortgage!

  You can even leave your rental property to your children and they’ll collect cheques each month throughout their lives.

  You can’t compound home flips because you’re not still getting paid from your first flip when you’re working on your second flip.

  This means investors who flip homes really aren’t investors. Instead they become employees and have to continue working to get paid.

  Flipping is a j-o-b and your boss will want you to work evenings and weekends for months!

Note: I didn’t write the above and I can’t remember who did but I have been letting my clients know about this for years and those who apply this long term strategy are doing extremely well!