Updated over 4 years ago on . Most recent reply
Canada Cottage Country
Investment Info:
Other buy & hold investment.
Purchase price: $220,000
Cash invested: $20,000
Beautiful cottage bought at 220k and double the value in 2 years.
What made you interested in investing in this type of deal?
Off grid, waterfront property, national park opened close to it.
How did you find this deal and how did you negotiate it?
On MLS, negotiated at 95% of listed price. And found out that there was an extra 1.5 acres on the deal after we signed at closings :-)
How did you finance this deal?
Financed & purchased with 20% down.
How did you add value to the deal?
at closing i valued the property with comps, at 250k-275k. But quickly, with the extra 1.5 acres. Gained 100k + and with the market rising all over for waterfront property. I can sell this today at 450-500k just for the cottage and 150k for the lot.
What was the outcome?
My family can enjoy the cottage lake life while the equity is growing in our purchase.
Lessons learned? Challenges?
Leason i learned, i was gonna skip this deal to 10k. Cause me and the sellers were at 10k difference in the purchase price point. So i came very close to refuse this deal on 10k difference. Sometime, negotiations doesn't go our way, but we always have to look at the exit strategy, to see the big picture.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes with an other realtor.
