hey guys in today's video i think you guys are going to enjoy it especially if you're a
buyer that is looking to pick something up in today's market and if you anybody who's been
active in today's market you know from 2020 end of 2020 right now to 2000 the beginning of 2021
it's been absolutely out of control we've seen prices increase in some areas from 20
25 even 30 percent uh we've been struggling for a lot of our clients to find them lots to be
able to do builds uh there's been absolutely no inventory and everybody's holding offers
so how is it in today's market we're able to secure properties for our clients that's still
favorable pricing and actually do it with more confidence than we would have when the
prices were 20 percent less and in this video you're going to see exactly how we did that
welcome back to the frittata group i'm reuben furtado and today we're going to
be meeting with a client who purchased the property unseen in oakville by the
bronte marina and we did that because he wasn't available to come out to the house right away
so i quickly went out to the house the first day it got listed facetimed them from the house
and i was really excited about it and we're going to show you why because we're going to meet him
at the property and we're going to talk about the concept of what we're looking at what we're going
to be doing with this home the type of house we're going to be building but we're also going to share
with you how we secure that property right because in a market like today we would be
competing against multiple offers well we didn't have to do that in this situation but on the way
there we do a quick pit stop because i wanted to take you on another lot that we just purchased
and it was a lot that was holding offers but we put a bully offer in and we were able to secure
that property however here's the interesting part the clients who just bought that lot right now in
february on that same street back in november of last year they had an opportunity to buy
a house that was and you're going to see that house because you can see it here on the clips
this tiny little bungalow was one house in from a busy street so you get a lot of noise pollution
but it was still a really good location because you were within walking distance to the downtown
oakville and this house here's the interesting thing it was listed at just under a million 999
000 they were holding offers and based on what the sales were we felt that what we were comfortable
with was a million 50 because remember the market hadn't blown up yet and my clients they were
willing to go the million fifty uh unfortunately the sellers wanted no less than a million eighty
so we didn't get it the sellers then go list at a million again they relist it and they end
up selling it a million ninety so we missed that opportunity and we were okay because we were only
prepared to pay a million fifty but here's what happens that was in november no inventory after
that point we're waiting waiting for something to come out now something comes out in february and
prices have now gone from that million 100 to 1.3 million two hundred thousand dollars more
and my clients were struggling to basically you know adjust to that because they literally just
missed out on an opportunity for two hundred thousand dollars less on the same street
and this is what i shared with him that made him feel a bit more comfortable with this purchase
it was this we are in a better situation buying the lot today at 1.3 million
then we would have been buying that other lot at the 1 million 80. why because it sounds like
i'm it's a sales pitch but it's not when the lot sold at 1 million 80 there was no sale supporting
a turnkey custom luxury home in that area that would have been more than 2.5 or 2.6 million
but today in today's market the finished product we just saw one right around the corner that sold
at three million seventy five thousand that's almost four hundred thousand dollars more as
a finished house so today once we bought this as an investment once we build on it yes we're
paying two hundred thousand dollars more on the land but on the resale value of the house
when it's finished in his bills four hundred thousand more and there's more activity on
those sales which there wasn't before so there's more confidence now and then the other thing is
the interest rates are lower so all in all when people are looking at it they're always looking
at the negative and i think you need to look at both sides but that was why we passed by and
you're going to see the images of both properties that we were looking at the one that we missed
and the one that we picked up so one last thing before we go meet up with the client
on that one property that we did secure they were holding offers and within a couple of days
of it being listed we were able to avoid that multiple offer situation we put together a very
decent bully offer that was not over market value based on what everything else was selling for
but it was something that had terms and we use certain clauses that are very favorable to the
sellers but that worked for our buyers and that helped us build a relationship and have them
look at our offer and consider it to where we got to a price point that was agreeable to both
my buyer as well as the seller and avoiding a lot of competition and inflating the prices
even more okay i'm just around the corner i'll be there in like less than one minute uh they they
are there they know that we're gonna be coming through so they're okay with it like i own this
remember the clients never seen the property this is the first time they're physically at
this home the nice thing too is we did not have an appointment to go through the house
i ended up calling the listing agents just letting him know i was going to do a drive by
he called the seller the seller happened to be outside super nice gentlemen and led
us to go through the house and one of the reasons why we like this property is that
it actually had it was in really good condition it was a bit dated but in very good condition
and uh the it had a second suite on the second floor so for rentability you could have been
renting the upstairs and renting as a as an in-law suite and then renting the main floor
and that's a really nice thing to have because if at the end of the day we were to change
our strategy and not build right away we can still generate some pretty good income
rather than a lot of these other properties that are tear downs that are really not rentable
now a lot of people avoid a corner lot so one of the things i wanted to do in getting the client
out was not just showing him what he bought but showing him the potential it had so just down
the street we then go for a walk just a little bit further and then here's the irony i actually lived
on this street i lived on the house that was just next to one that was built on the corner
and that's where i kind of had the vision of what we were going to do here to some degree but really
just take it to the next level so then we did went for a drive in another area where we're looking at
some other houses that i've all i've always been a fan of now they were on some bigger lots they
weren't like a 75 by 150 lot but here is a really good example of what we were looking at doing
which was going to be the garage was going to be off the the shorter part of the lot on the
60 foot side and then on the longer side would be the entrance and then on that side entrance on the
corner side of the house is where we're gonna make it look really grand right give it a real
strong presence and then that way we still have a really large backyard but the backyard's not
not near the street side it's tucked more into the corner backing on to the other house just behind
it even though we had a clear vision of what we were going to design and build and the layout
that was not justification to actually buy this property nor should it be instead what we want is
understand what the risk is associated and what the opportunity is with this particular project
and one thing we knew for a fact was that earlier just weeks earlier on a busier street a property
sold for over 1.3 million and it was a smaller lot so we knew that this house being a bigger lot
a bigger house that and that the fact that we could rent it if we decided not to build something
was a far better opportunity on its own but more importantly is what would a finished
house based on this concept that we had what would that be worth in that
area well houses in that area already support supported a sales price of over 3.3 million
so we are very confident that if we were to build the right house with the right quality
and the right sales strategy that we should be getting very close to 3 million at least no less
than that so that's what gave the the buyer confidence and enough confidence to move forward
and then the other thing too though keep in mind this house got listed i think it was thursday
one of the things that we did is avoid it from even get being able to hit the market on the
saturday and sunday so we actually tied up and got this deal done literally on friday night and
i thought that was really important to make this all happen for this particular client but there
are going to be some folks that are like hey that makes sense for oakville and i just want to put
some context around it it doesn't matter whether it's oakville uh or whatever area it is the
principles are going to be exactly the same but if there's one other bonus tip that i can give you
is that in a market where people are now just wanting to jump in because they see
prices escalating and they're buying anything that they can get at a deal be very cautious
because a deal today will be very similar to the first property that i told you about where those
people bought in 2017 and they paid 1 million 150 and 3 years later they only sold it for 190
and lost money is because all they were doing was basically out of fear they bought something
where what we're buying is not out of fear it's at a strategy you want to buy something that it's
not a deal it's going to be a home and any market that is going to be something that is desirable
and easily marketable and that you're going to make some money so until next time guys take care