month 7 - due diligence consideration
TRANSCRIPT
Surrey Real Estate Investment Club
Welcome!
“ There are two types of mistake: mistakes of ambition
and mistakes of sloth. The first is the result of a decision
to do something. It is made with incomplete information,
as it’s impossible to have all the facts beforehand. This
is to be encouraged. Fortune favours the bold!"
~Tim Ferris, The 4-Hour Workweek
Monthly Topics
1. Strategy & Getting Started
2. The RE Cycle and Selecting An
Investment Area
3. Property Selection and Cashflow
4. Funding Your Deal / Joint Ventures
5. Property Management / Multi-Family
6. Improving Cashflow with Rent to Own
7. Making an Offer & Due Diligence
8. Working With Tenants
Review of Last Meeting
• What is Rent to Own / Lease Option
• How to structure a deal
• Advantages and Problems
• Potential returns
www.AspireRealEstate.ca/blog
Tonight’s Agenda
• Offers to Purchase
• Property Inspections
• Final Pre-Purchase Considerations
• Vancouver Investor Forum
The Legal Stuff…
The information contained herein (the “Information”) is intended for general informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either Aspire Holdings or any of its affiliates.
Views expressed in this presentation are based on research materials available from sources that Aspire Holdings (d.b.a. “Aspire Real Estate”) considers reliable but neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information.
All real estate opportunities come with varying degrees of risk and past performance is not an indicator or guarantee of future results. Prices can go up or down and current performance may be lower or higher than any performance data quoted for comparisons.
Looks Like a Good Deal?
At what price?With what expenses?At what rent?After what repairs?On what terms?
…make an offer…
Looks Like a Good Deal?
The Offer is a legally binding contract, so consult with your Realtor and maybe lawyer before submission
Always make it subject to at least one condition
Terms and Conditions
• Financing• Inspections• Assignment• Lawyer approval• Rental approval• Insurance• Strata documents, PDS• Tenancy contracts / viewings• Fixtures and chattels
Negotiating the Purchase
This is not a war to be won but a problem to be solved!
It’s not always about price
Property Inspections
• Be present and ask questions• Don’t worry that every small problem
is identified!• Objective:
• Identify items you weren’t expecting• Identify minor flaws that can be
used in the negotiation• Not everything will be found
Selecting a Property Inspector
• Ask for recommendations – other investors, Realtors, friends, family
• What associations do they belong to?
• Ensure they are available• What will they inspect?• How do they report? Sample available?• Can you be present?• Will they upsell repair services?
Final ConsiderationsYou have an accepted offer…now what?
• Secure financing – may need an appraisal?
• Consult with your lawyer
• Confirm insurance costs
• Collect docs – rental contracts, utility bills, strata, taxes
• Review your pro forma for mistakes
• Does this purchase move you closer to your goals?
• Do you know your exit strategy?
• Do you know your true closing costs?
Final ConsiderationsWhen subjects are removed:
• Start advertising!
• Talk to your property manager
When you have the keys:
• Complete a thorough post-purchase walk-through
Now fill your property with great tenants!
2013 Vancouver Investor Forum
October 5th/6th - Vancouver Convention Centre
Regular Price: $198
Our price: $135 - 32% discount!!
Plus….
For every 5 members: Free 6-month subscription
For 30 members: 10 Free Passes!!http://www.vancouver.theinvestorforum.ca/summit-details/pricing-book-now
2013 Vancouver Investor Forum
Plus…
We have been been invited to run “The Great
Debate” session on behalf of SREIC
members…
Vancouver Investor Forum Agenda
http://vancouver.theinvestorforum.ca/
http://www.meetup.com/SurreyREIC/
2013 Vancouver Investor Forum
1. General questions/concerns you have on investing in RE
2. Keeping it Local or Follow the Rainbow ?
In this session we will debate whether to invest locally or find
that perfect deal outside your comfort zone. Completing a
deal in your own back yard has many bonuses including
knowing your market, managing the property & reduced
tenant challenges. But, is it always the best option? With the
U.S. rebounding & Kevin O’Leary naming Calgary as the
sweet spot. Our panelists help you weigh up your options.
SREIC Future Plans
Education - More in-depth on topics
Presenters - More outside speakers
- What topics do you want?
Professionals - Talk about your business in
return for a door prize!
Deal Review - Perhaps earn a finder’s fee!
Location - ??
Next Meeting: Working with Tenants
Feedback, Prizes and Action plan!
Questions or comments? Please let us know!
Next meeting: ??
Summary: www.AspireRealEstate.ca/blog/
• Find a new person in the group and tell them what you are going to do in the next month to achieve your goal
• Sign-up for the Investor Forum by August 16th to be entered in the draw! “IFSREIC”