Challenge! Let's Close 2 Real Estate Deals by January 31st 2015 from Scratch
Since getting married back on September 29 2012 I haven't really done much with real estate investing. But since another business I was involved in shut down this past July I've been itching to get back in the saddle, so to speak. Luckily for me I have a wife who's very supportive and interested in learning more about real estate investment as well, unfortunately for her, her husband has been taking his sweet time to get around to it LOL :)
So I've decided it's time to light a fire and what better way than a good old fashioned challenge! I'd like to invite anyone reading this to join me. You don't have to do the same type of deals I'll be going for, and you don't need to use the same rules if you don't want to, but I hope this will inspire you to try something new for yourself, especially if you're new to real estate investing and haven't got your first deal yet.
My Challenge Rules
1. Both deals must be completed (purchased and rented/wrapped/flipped) by January 31st 2015.
2. Deal #1 must be completed without using any contacts or resources acquired before today (November 8, 2014).
3. Deal #1 must be acquired through free marketing methods.
4. Deal #2 can be acquired through free marketing or marketing paid for with the profit from deal #1.
Target Market
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| Map of my target market |
I'll be focusing my efforts in the Kitchener-Waterloo, Cambridge, Guelph metropolitan area of Southern Ontario Canada.
Located approximately 1 hour West-Southwest of Toronto. This area houses a population of over 600,000, hosts 3 major universities, is headquarters for several insurance companies, and countless high-tech and manufacturing businesses. All in all a bustling area with a diverse and healthy economy.
The real estate market is likewise healthy and currently enjoying a strong up trend in prices. Thankfully the market is not facing the same frothy exuberance that is surely sending Toronto toward another correction.
Although I'm not centrally located on the map above this area represents a maximum of about a 30-40 minute drive for me.
Target Property
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| Typical 3 bedroom home in my target area |
I'm primarily interested in purchasing nice 3 and 4 bedroom freehold homes, although I will consider 2 bedroom homes as well as condominiums if the numbers make sense. My maximum purchase price (this may be slightly flexible) will be $500,000. The average price for all residential units is $340,000 as of September 2014 and rose by more than 7% over last year.
Sellers
I'll be directing my marketing toward private owners such as For Sale by Owners, accidental landlords, and expired MLS listings. I will be offering them fast and easy debt relief by taking over their payments now with the intention of closing the transaction for the mortgage balance at the time of renewal.
Buyers
Likewise I will be renting or reselling (on a wrap) to private buyers who can't currently qualify for a loan.
I hope that's enough details for now about the "what" and the "who". I'll get into more of the "how" in a future post.