INVESTING
Once you have put your plan in place and you know the direction you want to take it is time to start actively pursuing opportunities . As a buyer , this is still a buyers ’ market so don ’ t be afraid to push hard on deal terms . Always start with low ball offers . The expression “ you make money when you buy ” all comes down to what price you get the property for . I was at a Halloween party this week and was talking to a real estate agent who was horrified to hear that I start my offers at 30 % below asking price . She told me she would be too embarrassed to present offers that low and that confirmed that she was not the right agent for me . In my mind , the seller can only say no or counter my offer with one that is typically still below asking price .
This market also presents opportunities to be creative with your offer . Given that the market is only slowly starting an upward swing , and interest rates may drop again in the next few months , ask for a delayed transfer date .
I would ask for six to nine months to close on a rental property so that you get the benefit of any further rate cuts and get the benefit of the property possibly being worth more than you paid for it in a rising market . If you don ’ t have enough equity to close on the property , ask for a vendor take back mortgage so that seller helps you finance the deal . There is a small window currently to push sellers very hard on deal terms , but that window will close once the expansion or boom phase of the cycle kicks in .
For more ideas and strategies , I have used for the past 25 years to tie up bargain properties and get the financing in place . Happy investing !
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40 REI MAGAZINE NOVEMBER 2024