Many of us have seen television shows on HGTV detailing slick property-flipping operations. These so-called savvy investors make enviable profits in what appears to be very little amounts of time. From a practical perspective, these shows endorse operational models that are not easy to replicate. The result is more a product of shrewd editing then an honest account of what a solid real estate investment looks like.
At Benjamins Realty Inc. our preferred approach is to buy and hold investments for the long term. Let tenants and a strong local economy build equity. Like the shows on HGTV though, this of course is easier said then done. Instead, we’ve highlighted one of our favourite deals in 2014 as an example. It involved a derelict building, a newly married couple, and a solid team approach.
Adrian Bult is a longtime client with Benjamins Realty. He saw the advantages of a Real Estate portfolio from a young age. We we’re so pleased last fall when Adrian introduced us to his newly wed wife Kirstin, together they had decided it was time to expand their real estate portfolio. Adrian and Kirstin were looking for a property with multi-residence zoning (or potential for such) and a property that was in distress but had value locked up in the location. The real key to these types of investments is approaching sites with a visionary attitude. This involves looking at what can be a derelict property but forecasting the potential. It’s not always easy to see through leaking roofs and broken windows, so how do you build that vision? The answer lies in collaboration. Create a team of professionals that bring each piece of the puzzle together until the picture becomes clear.
When 73 Wood St. came on the market, we knew it could be a great fit and we had to see it that day. The best investments often sell within 1-3 days of listing. It was critical that Adrian and Kirstin were set up on a Realtor search- this notified them immediately when a new property became available that fit their criteria. This is how Adrian and Kirstin, the Benjamins Realty Team and James Palmerton from JP Quality Care Constructions found themselves on site the day 73 Wood St. listed. Despite a roof that was caved in and missing stairs to the upper floor, we all agreed the property had massive potential and collectively began laying out a vision for the site. Later that evening we drafted an offer at the office. Despite there being competing interest, Adrian and Kirstin secured the property with an aggressive but shrewd offer and the professional negotiation of Benjamins Realty.
Fast forward to today, the Bult’s were able to finance repairs right into their mortgage (financing consultants are a very important part of an investors team). They now have a property that appraises well above the cost of repairs and purchase price. Even better, they own a purpose built, duplex investment property which will cash flow yearly dividends for as long as they manage and maintain the property. We couldn’t be more pleased to see the success of our clients. At Benjamins Realty we like nothing better then to be a part of an investor’s visionary team. We specialize in sourcing these types of investments. We can also help you put together your own team of contractors and consultants. Real Estate deals can move very quickly, being informed and trusting in the team you’ve built gives an investor confidence to pull the trigger and begin building for the future. Do you ever dream of building a real estate portfolio? Talk to us today, we’ll begin building the vision for tomorrow.