- Joined
- Oct 1, 2007
- Messages
- 348
I am posting this story because Brett Turner asked me if I would.However, I am posting this story with one caveat: It is NOT intended to "gloat" or "brag", it is intended to MOTIVATE and EMPOWER others to take ACTION!Now I have got that out of the way...Just prior to the Edmonton real estate market EXPLODING, I was approached by another investor with an opportunity to purchase a number of condominiums in a multi-unit building that was to be constructed. As a result of a "bulk" purchase, we were provided with the opportunity to obtain an attractive "pre-construction" price discount! The discount amounted to approximately $10k a door. I liked the idea of taking advantage of the "Pre-Construction" pricing for a number of reasons;1. The building was located on a MAJOR transportation change that had NOT yet come into effect!
2. The short and long term economic fundamentals were extremely favorable!
3. We would stand to benefit from equity appreciation during the time it took to construct this building!
It gets even BETTER! We were able to negotiate a VERY small (initial) down payment. If my memory serves me correctly, we ONLY had to contribute approximately $2,000 (per door) in CASH! That was $20k (my share).
For anyone that knows me, I do NOT like the idea of giving up BIG chunks of CASH, and if I put ANYTHING down at all, it is typically "OPM" (other people`s money), and NOT my own!
WHY? Because that`s the ONLY way I like to Buy Houses!
So everything was good!
LOW down payment and GREAT terms! So all I had to do was sit back and WAIT!
Unfortunately, but FORTUNATELY for me, the project was delayed by well over a year! This was due to initial delays in the approval of the building permit, and a severe lack of construction trades.
Was I ok with this…ABSOLUTELY!
WHY? Because the Edmonton real estate market was just starting to EXPLODE!
Was I LUCKY or was I SMART? There is an old saying that goes...You create your OWN luck!
Tony`s TIP: If you haven`t already done so, read the book written by Bo Peabody titled "Lucky or Smart?" I had the good fortune of meeting Bo a number of years ago, and his story is truly inspiring!
As a result, the properties gained in value substantially over the time they were being built. The day we were supposed to close they were worth at least $1.3 Million dollars more than what we had them under contract for.
To cut a slightly longer story even shorter, I agreed to let my partner buy me out for $520,000 in CASH! That`s right, I did say $520,000 in CASH!
Did EVERYBODY Win? ABSOLUTELY! I made a cool $500k in profit, and I left something on the table for my partner in the process!
Oh I forgot to mention one small problem, I owed CRA $100k in tax! Not a bad problem to have!
Was this a good return on my $20k investment? I will let you be the judge of that one!
I hope that my story will inspire you to...take ACTION!
2. The short and long term economic fundamentals were extremely favorable!
3. We would stand to benefit from equity appreciation during the time it took to construct this building!
It gets even BETTER! We were able to negotiate a VERY small (initial) down payment. If my memory serves me correctly, we ONLY had to contribute approximately $2,000 (per door) in CASH! That was $20k (my share).
For anyone that knows me, I do NOT like the idea of giving up BIG chunks of CASH, and if I put ANYTHING down at all, it is typically "OPM" (other people`s money), and NOT my own!
WHY? Because that`s the ONLY way I like to Buy Houses!
So everything was good!
LOW down payment and GREAT terms! So all I had to do was sit back and WAIT!
Unfortunately, but FORTUNATELY for me, the project was delayed by well over a year! This was due to initial delays in the approval of the building permit, and a severe lack of construction trades.
Was I ok with this…ABSOLUTELY!
WHY? Because the Edmonton real estate market was just starting to EXPLODE!
Was I LUCKY or was I SMART? There is an old saying that goes...You create your OWN luck!
Tony`s TIP: If you haven`t already done so, read the book written by Bo Peabody titled "Lucky or Smart?" I had the good fortune of meeting Bo a number of years ago, and his story is truly inspiring!
As a result, the properties gained in value substantially over the time they were being built. The day we were supposed to close they were worth at least $1.3 Million dollars more than what we had them under contract for.
To cut a slightly longer story even shorter, I agreed to let my partner buy me out for $520,000 in CASH! That`s right, I did say $520,000 in CASH!
Did EVERYBODY Win? ABSOLUTELY! I made a cool $500k in profit, and I left something on the table for my partner in the process!
Oh I forgot to mention one small problem, I owed CRA $100k in tax! Not a bad problem to have!
Was this a good return on my $20k investment? I will let you be the judge of that one!
I hope that my story will inspire you to...take ACTION!
