All Forum Posts by: Aditya Soma

@Gary McGowan @Roy N.

Even though Ontario is a POS province (the ambiguity amuses me), I think that POS houses (again) are in fact a great opportunity. The key, however, is to interrupt the power of sale by working with the failed owner.

Power of sale can be interrupted at any time up until the buyer's conditions are fully waived. So by working with a failed owner you can possibly scoop up the house with great terms. 

I believe that the sooner you can get to the owner the better. That means BEFORE the house is even listed. Even better if you can get to them before they are even moved out, of course. With that said, there is a LONG time between those two events. You just need to find a vacant house with a little paper sign in the window that says "These premises secured by <insert remote monitoring company>" and find the owners.

If it goes to sale, then the owners are not only on the hook for the remainder of the mortgage, but also for the commission, the lawyer fees paid by the bank to take their home from them, and administrative fees and penalties from the bank. That is where your margin lies.

However, @Aditya Soma you will not find these houses in any published list. They are not available at request from the bank. You need to either need to catch them with a dragnet marketing campaig  or to see the vacant house with the sign.

Good luck!

Hi @Aditya Soma,

there is no straight answer here.. but few things to consider before making an offer..

1. Market- are you in a seller market? meaning more buyers and bidding wars for every property.

2. Type of seller- REO, HUD,Owner, probate etc.. this is a vital information!!

3. Condition of the property- does it needs work, is it in good condition, little work etc..

4. Days on the market- is it a new listing, old listing, back on the market..?

5. Area- subdivision and schools- is it in a desirable area? white collar, blue collar, war zone?

6. House type- Single family house - Condo, Town house..?

7.(little secret) Real Estate Listing agent- top producer agent, big office, new agent? this can help you determined the motivation level of the agent to negotiate the price for you with the seller.

when you have this information you will have the power to make a smart offer.

it might look like a lot of things to consider right now, but after you start making deals, this will be a second nature to you.

also keep in mind when making an offer always ask for inspection period. you can always re negotiate the price after you have the inspection report in hand and use this information again like a smart investor :)

information is power!!

happy investing and good luck making offers!!

Hi Aditya,

There are several things to consider when investing in older properties (including duplexes), which are knob and tube wiring, and galvanized plumbing (especially in the Windsor area). If you have lights that hang from the walls (not ceilings) and baseboard located plugs, it may (no guarantee) be an indicator that there is knob and tube. Looking in the basement as well is usually a good tell tale sign (older panels and wiring exposed between the floor joists.

Other things to consider with older properties (and newer ones alike) are: roof, windows, and hardware (furnace). The age of bathrooms and kitchens are also a consideration. One of the nice things about older Windsor properties is that the majority of them have nice hardwood floors that can be redone. You won't find those classic hardwood floors in newer duplexes. However, a downside is that a lot of these Windsor properties have block foundation, which some (very few and property dependent) have bowed inwards creating foundation problems if the water management of the building is not correctly drained away.

Take a look at the following City of Windsor website to get a feel for the history of the property you are considering purchasing: https://apps.citywindsor.ca/eservices/PropertyQuer...

I might have missed a few things, but in general, wiring, plumbing, roof, windows, and hardware (furnace/boiler, etc.) you need to look at. You will know right away when looking at the kitchens or bathrooms. 

For your first investment, it depends on your risk tolerance and down payment, but I would house hack a fourplex. There appears to be a decent one listed at 683 Gladstone listed at $239K. Live in the smallest unit and manage the remaining 3. You will learn a ton doing it this way and the incremental cost from a duplex to fourplex isn't that much; however the risk diversification is (3 units rented compared to 1 rented). Ideally buy a building that doesn't have any major repairs on your first one (potentially only a roof), but no wiring, plumbing, etc. unless you can leverage family members/close friends for these services. Maybe a kitchen or bathroom you can do, but at the end of the day it is up to you.

Feel free to shoot me a PM if you have any questions.

Happy investing!

Taylor