Waiting for the “Ultimate Deal”

Successful real estate investing is about acquiring a portfolio of properties that have long-term upside potential and can generate a reasonable carrying income. It is not about finding an incredible, once-in-a-lifetime deal resulting in instant profits. There are far too many people looking for the Holy Grail and information is so widely available these days.

Frankly, when I was a realtor, the last person I would call (and certainly not the only person I would call) would be a ‘client’ who had been kicking tires for years and expecting the impossible. Instead, I would call my good clients who would act, act reasonably, and act quickly. The “Ultimate Deal” client will still be “crunching numbers” and dreaming up ridiculous conditions long after the property is sold.

Believing you have found the “Ultimate Deal”

Oddly enough, there’s usually a reason why a property is priced cheaply. Whether it’s the condition or the location or some other factor, as the saying goes, “if it sounds too good to be true….”

Renovations to a decrepit house can easily suck up any price savings (as well as enormous amounts of your time and energy), and a condo with a bad view will always have a bad view.

Over-negotiating

I don’t know how often I have seen vendors or purchasers blow a transaction by signing back a good offer for a few extra pennies or a pair of used drapes or three days difference in closing. Savvy investors know when to take their chips and get up from the table.

Learn four more investment mistakes in Harry’s blog next Monday.

Harry Stinson was one of the first Toronto developers to recognize the potential for urban condominiums, to develop residential lofts, and to convert old office and warehouse buildings into residential spaces. His current project is the Stinson School Lofts, an 1894 heritage building in Hamilton, Ont., that he is converting into stylish and affordable lofts.