The deal that kept growing......

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Nov 11, 2012
71
71
18
42
Melfort, Sask
#1
It has taken alot of digging, alot of ups and downs, but one of my latest opportunities is like a Madroshka doll- you dig a little deeper and keep getting more. Let's explain....

In 2010, a developer came into my City and put in 10 modular homes. Of those, 7 were sold. The remaining 3 were listed for sale but never moved. and the years went by......
By 2016, they were still sitting. What had gone wrong? Essentially, there was a dispute between the developer and the City. The City would not issue occupancy permits as the infrastructure 'apparently' was done wrong. To me, this was opportunity.
This spring, I did an agreement for sale for all 3 homes (Thanks to learning from Barry McGuire), and they are all being moved to another municipality. I had to figure out who the owner was and make a deal. The owner was more interested in removing a problem and creating a win for the party interested in solving a problem. HE called it 'a reward.'
I will end up creating $40,000 per home once I place a mortage in the new town. Not bad so far, but don't forget to look behind the curtain, or in this case down the street....
Down the street was a mobile home from 1980 that was renovated with a good roof and new windows. I had to inquire about that.... I ended up paying the back taxes and picking up the home as well, for next to nothing. That home will follow the other 3 to the same town.
Could this get better? In discussing his Picasso collection with the 'successful' owner of the homes, I started learning his story. I found out he had more property. I took possession of an acreage as well... for back taxes. The acreage (14.53 acres) has a 26 x 36 bungalow, a double garage, and a mobile home on it. I got the house approved to move to the same town as the other four. The mobile home isn't in good repair but the deal is exceptional....
As I went a layer deeper and walked around the acreage, I discovered a tandem axle construction trailer, and 2-2008 camper trailers. Ok, its not a boat like Jared Hope, but 2 campers are not so bad.
The original deal, where I have an agreement for sale with NO MONEY IN, has landed me 5 homes to move, and a mobile home. The rents once these assets are set up will be $4,300/ mo. Created equity will be over $200k.... I won't have any money in, and I will have excellent cash flow. To top it off, I set up a Joint venture and truly won't have ever had any money in.
The icing on the cake will be selling the acreage. ....
And as I said, don't forget to peel back another layer and look further behind the curtain. The municipality has a municipal incentive, and I will get $25,000 back for doing these homes. All the sweeter. And if I want 54 undeveloped lots, I can get them as well....
What the other 6000 people in my town saw as an eyesore with 4 empty homes, I saw as my golden hen. She just keeps laying eggs. :) What's your story?
 

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Nov 11, 2012
71
71
18
42
Melfort, Sask
#6
The golden hen laid another egg today. I sold the acreage I talked about. I love when the wins keep appearing.
Six weeks ago, I went to the town of Nipawin to find a lot for the 'free' house on the acreage. As it turns out, I discovered a private lot for sale. I took the advice of waiting for the vendor to tell me a price. He said $6000. Sold. It is a large pie shaped lot which will look awesome when my house is placed. After the municipal incentive, I will have paid net $1000 for a lot for my 'free' house.
but that's NOT the win....
As I looked a layer deeper, on the drive I happened to notice a couple pieces of paper taped to front door of a 1970's bungalow. Those papers were labeled Veranova property management. Experience told me that they deal with foreclosures. Ten days ago, I took possession of the bungalow. It went in to a JV where my partner paid cash. When we had it appraised we will have basically nothing in. Another solid win. Boom!
Can it get any better? I found 2 other private homes for sale with signs, as well as 2 more private lots. These I will take action on in the dead of winter..... If you keep following the story, I think I am just getting started.
 

jay1214u

New Forum Member
Registered
Jul 16, 2015
15
3
3
54
#10
@Tina
I would still appreciate if there was a discussion for "failures" or lessons learned along with the success stories.

Thanks
Jay
 

Marnie

Frequent Forum Member
Staff member
REIN Member
Oct 6, 2016
361
119
43
46
#11
Jay, you could also start your own post in the Public Discussion section possibly sharing one of yours lessons learned and inviting other forum members to share theirs.

For more "real-life" stories, challenges faced and strategies for success I would also highly recommend The Everyday Millionaire Podcast. I have found nuggets of wisdom and inspiration in every episode, and Patrick's guests share lessons learned, real challenges, adversity and how they have and are still are working on overcoming them to be the successful entrepreneurs they are.
 
Likes: Tina Myrvang

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Nov 11, 2012
71
71
18
42
Melfort, Sask
#12
As I mentioned before, I am just getting started in the Town of Nipawin, SK. In finding lots to place all the homes I had sourced in Nipawin, I became connected with a realtor. The realtor knows that I take action and solve problems......
As such, I took her phone call and ended up closing another house in Nipawin for $15,000 in an unlisted deal. Yes, it needs lots of work, but it can be made into a solid 2 bed bungalow. The better part of this is it is on a 95' lot, of which I can separate into 2 lots, and place another house on the second lot. Once this home is placed, I will get back $5000 as a development incentive from the town. Boom!
 
Likes: bb2

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Nov 11, 2012
71
71
18
42
Melfort, Sask
#13
And as the story continues, the 'rental gem' of Nipawin became listed in early November. I was first to review the deal, and I immediately got it under contract. The gem is an 18 Unit apartment building from about 1984. It has 17- 2 bed units, and 1- 1 bed in excellent condition with excellent management. Some tenants have been there 20 years. I knew that this would be a fantastic addition to my portfolio, and as such closed the deal and took possession in early December. If not for the help of Rein members, I wouldn't have been able to close it but the power of the network came through. It took 17 years of residential investing to get my 18 unit, but as I found out, perseverance and resilience paid off.
The best part of this deal is that the rents are largely under market. By applying strategies taught by Pierre Paul Turgeon, there is massive upside in the evaluation once when rents are at market and the building is reappraised. Surrounding myself with great mentors and educators is once again helping the goose lay more golden eggs. I am not sure where this story will end, but it is one great roller coaster ride.
 

Abdul12604

New Forum Member
REIN Member
Oct 6, 2017
8
2
3
#14
Hi Trevis ,

Good Morning

Nice to hear your story.

This is Abdul from Regina and We met in Edmonton Acre in Oct,2017 . Perhaps we sat together on the same table in the Edmonton Acre Event .

I would like to connect with you so can I have your number (or) call me on 3065013731 .

Happy Holidays and Merry Christmas

Regards
Abdul
 

Novice

New Forum Member
REIN Member
Feb 2, 2017
18
5
3
40
#16
It has taken alot of digging, alot of ups and downs, but one of my latest opportunities is like a Madroshka doll- you dig a little deeper and keep getting more. Let's explain....

In 2010, a developer came into my City and put in 10 modular homes. Of those, 7 were sold. The remaining 3 were listed for sale but never moved. and the years went by......
By 2016, they were still sitting. What had gone wrong? Essentially, there was a dispute between the developer and the City. The City would not issue occupancy permits as the infrastructure 'apparently' was done wrong. To me, this was opportunity.
This spring, I did an agreement for sale for all 3 homes (Thanks to learning from Barry McGuire), and they are all being moved to another municipality. I had to figure out who the owner was and make a deal. The owner was more interested in removing a problem and creating a win for the party interested in solving a problem. HE called it 'a reward.'
I will end up creating $40,000 per home once I place a mortage in the new town. Not bad so far, but don't forget to look behind the curtain, or in this case down the street....
Down the street was a mobile home from 1980 that was renovated with a good roof and new windows. I had to inquire about that.... I ended up paying the back taxes and picking up the home as well, for next to nothing. That home will follow the other 3 to the same town.
Could this get better? In discussing his Picasso collection with the 'successful' owner of the homes, I started learning his story. I found out he had more property. I took possession of an acreage as well... for back taxes. The acreage (14.53 acres) has a 26 x 36 bungalow, a double garage, and a mobile home on it. I got the house approved to move to the same town as the other four. The mobile home isn't in good repair but the deal is exceptional....
As I went a layer deeper and walked around the acreage, I discovered a tandem axle construction trailer, and 2-2008 camper trailers. Ok, its not a boat like Jared Hope, but 2 campers are not so bad.
The original deal, where I have an agreement for sale with NO MONEY IN, has landed me 5 homes to move, and a mobile home. The rents once these assets are set up will be $4,300/ mo. Created equity will be over $200k.... I won't have any money in, and I will have excellent cash flow. To top it off, I set up a Joint venture and truly won't have ever had any money in.
The icing on the cake will be selling the acreage. ....
And as I said, don't forget to peel back another layer and look further behind the curtain. The municipality has a municipal incentive, and I will get $25,000 back for doing these homes. All the sweeter. And if I want 54 undeveloped lots, I can get them as well....
What the other 6000 people in my town saw as an eyesore with 4 empty homes, I saw as my golden hen. She just keeps laying eggs. :) What's your story?
Holly.. Impressive, very much so!


Sent from my LG-H831 using myREINspace mobile app
 

lendmorefinancial

New Forum Member
Registered
Aug 1, 2018
17
3
3
25
Toronto
lendmorefinancial.com
#17
It has taken alot of digging, alot of ups and downs, but one of my latest opportunities is like a Madroshka doll- you dig a little deeper and keep getting more. Let's explain....

In 2010, a developer came into my City and put in 10 modular homes. Of those, 7 were sold. The remaining 3 were listed for sale but never moved. and the years went by......
By 2016, they were still sitting. What had gone wrong? Essentially, there was a dispute between the developer and the City. The City would not issue occupancy permits as the infrastructure 'apparently' was done wrong. To me, this was opportunity.
This spring, I did an agreement for sale for all 3 homes (Thanks to learning from Barry McGuire), and they are all being moved to another municipality. I had to figure out who the owner was and make a deal. The owner was more interested in removing a problem and creating a win for the party interested in solving a problem. HE called it 'a reward.'
I will end up creating $40,000 per home once I place a mortage in the new town. Not bad so far, but don't forget to look behind the curtain, or in this case down the street....
Down the street was a mobile home from 1980 that was renovated with a good roof and new windows. I had to inquire about that.... I ended up paying the back taxes and picking up the home as well, for next to nothing. That home will follow the other 3 to the same town.
Could this get better? In discussing his Picasso collection with the 'successful' owner of the homes, I started learning his story. I found out he had more property. I took possession of an acreage as well... for back taxes. The acreage (14.53 acres) has a 26 x 36 bungalow, a double garage, and a mobile home on it. I got the house approved to move to the same town as the other four. The mobile home isn't in good repair but the deal is exceptional....
As I went a layer deeper and walked around the acreage, I discovered a tandem axle construction trailer, and 2-2008 camper trailers. Ok, its not a boat like Jared Hope, but 2 campers are not so bad.
The original deal, where I have an agreement for sale with NO MONEY IN, has landed me 5 homes to move, and a mobile home. The rents once these assets are set up will be $4,300/ mo. Created equity will be over $200k.... I won't have any money in, and I will have excellent cash flow. To top it off, I set up a Joint venture and truly won't have ever had any money in.
The icing on the cake will be selling the acreage. ....
And as I said, don't forget to peel back another layer and look further behind the curtain. The municipality has a municipal incentive, and I will get $25,000 back for doing these homes. All the sweeter. And if I want 54 undeveloped lots, I can get them as well....
What the other 6000 people in my town saw as an eyesore with 4 empty homes, I saw as my golden hen. She just keeps laying eggs. :) What's your story?

Hey,
You did great job inspiration for everyone...keep it up best of luck