Archives for 2021

Timing and Motivation Client Immutable laws

Today I had what I would expect is a common challenge most business owners in real estate fact often, that challenge was the matter of timing. We have all heard the phrase “timing is everything” and I would agree that timing is the most important business force surmounting any other.

The client that I had a booked meeting with, albeit several days ago by the team – which in today’s faced paced real estate market might as well have been a lifetime ago …. had already bought a house. Now, this could result in frustration, anger, resentment, or many other colorful emotions and expletive language to go along with it! (the mental battle was touch and go for a few minutes there)

A better tactic is to ask yourself “self…what am I meant to LEARN from this experience?” Which was what I did to analyze the chain of events that lead to the outcome I didn’t want because if you constantly focus on what you don’t want you tend to get more of that.

Looking back through the booking process, sending the calendar invite (not accepted but that’s common), sending the zoom invite, text message the invite to be sure they got it, then as is my custom – the phone call 15-30 minutes beforehand to confirm they have it all and will by by the computer and not driving or walking the dog so I can garner their full attention to the meeting. I did not see many improvements that could be made in the system, other than calling the day before on a holiday weekend to ensure the meeting time still works.

Then I thought a bit harder, and I was reminded of the fundamental truths of sales: it could have just been the timing or motivation of the prospect. In this case the motivation was there clearly – just not the timing of our sales presentation. That is something that no salesperson or staff member can change. If someone does not have the problem your product solves or they have said problem and are unmotivated to solve it, you could have the cure for cancer and they will not pay attention let alone pay for that product or service!

Whether your business is in real estate investing, rocket ship repair, forestry, or IT timing and motivation is something you need to explore/ nail down/work within or you will have a real task on your hands wasting cycles attempting to convert those who are not in the end of the buying journey.

Thinking of investing in real estate in Calgary or other markets in Canada? Contact our team to book a discovery call to find out how building wealth for 3 generations could be easier than you think.

To your success,

Tim Reid

-Respect The Hustle

Calgary Real Estate Market Heating up?

The Calgary Real Estate market for buyers, sellers, investors is certainly a strange place over the last couple months. Everyone thought that after all the deferrals were done there would be a flood of foreclosures. Are they still waiting in the wings? Could be, but the low inventory situation that we find Calgary in right now has created an atypical surge in sales.

Low interest rates and much higher than average savings in Canadian bank accounts due to pandemic lock downs have allowed many families to inadvertently save up a down payment! Now, not all sectors of real estate in Calgary are moving fast:

  1. Luxury homes are slow moving over 1.5M in most areas of Calgary – some areas of aspen have seen motivated sellers drop prices 100’s of thousands of dollars to get the homes sold
  2. Condo market for apartment style homes in the inner city has been a slow mover, with inventory here being far higher than demand.
  3. Older un-renovated homes under 1000sft which are normally sold to developers are slow to move because spec-home developers are being very cautious on their purchase prices for lots.

Single family and semi-detached homes are moving quick, also demand for half-duplexes with no condo fees has skyrocketed due in part for the buyer now seeing the possibility of adding a basement suite for having that extra revenue. I had a younger client recently tell me that that type of property would be great for his first home so that he could rent out the 2 suites when he decides to upgrade – what a smart young man! I wish I was thinking in those terms when I was younger, things would be very different now if that were the case.

We are seeing CS properties before I can get clients in to view them, properties going 50K over list price, and even private deals which we specialize in normally not having as much competition…we got outbid by a neighbor for a private seller of a lot I was working on selling to a builder contact of ours! Ouch – losing out on a private deal in a great location is not normal operating mechanics for Calgary real estate.

The stats won’t support this opinion, but I am seeing a balanced market at the moment in Calgary and if we don’t see a volume of inventory hit the market by spring when it gets warm and everyone wants to move….then we could have a seller’s market on our hands.

What do you do in a sellers market VS a buyers market? Good question – contact us and we are thrilled to help advise/answer questions on what could be the best strategy for your goals.

To your success,

Tim Reid

-Respect the hustle

Top 3 Reasons to flip a house in Calgary

WOW 2021 is off to a roaring start with investor inquiries! We have a list of over 12 buyers most of them cash buyers in the Calgary Market looking for houses to buy, fix and sell. Flipping houses is not generally the go-to strategy for investors in a buyers market – everyone can flip a house when you have prices going in the up trend which is certainly not the case in Calgary.

There are pockets of the city that are just flying off the shelf that need work, how I feel there are a few reasons for this: first being the low interest rates and people that just want a larger place than a rental and they can now get into home ownership due to the lower interest rates.

Secondly, I think there are a lot of investors that are looking for deals due to the economic downturn in Alberta that has gripped the larger centers for a number of years now. Lastly, investors are looking to diversify out of an over heated stock market (and some have made a killing here in 2020 but savvy investors know what goes up must come down).

The top 3 reasons to invest in a flip project in Calgary right now are:

  1. Low interest rates – helps the buyers buy as well as the investors, also you can pull equity out of existing properties at a low cost of borrowing in this lending environment which increases your margins.
  2. Deferred maintenance properties will have a hard time getting a good price on the current market, we are advising all of our listing owners to do basic repairs/updates to get a quick sale for more money – however not all owners have the budget for that work these days and will be forced to sell for less.
  3. Buyer pool has been expanded by the lowered rate of the stress test, and work from home shifts have caused many buyers to want to have a proper space for the home office, and have a larger space for their family in general than a rental closer to the core due to remote work options.

There are many analysts that predict that over 30% of workers will remain working from home after the pandemic is over, now I know the co-working space owners will not want to hear/believe that but I would tend to agree with them. Also, live work animations to properties will be a large value add for properties to create real differentiated value.

Contact us for a discovery call to learn more about animation options for animation to property to drastically increase its value as a rental/owner user buyers alike.

To your success,

Tim Reid

#respectthehustle

Who Controls YOUR Business?

When we start a business in real estate, or any business – we start off with a plan (well generally!) which is more like a theory and go run out into the marketplace with that plan. After getting customer feedback we adjust that plan and keep going back to the customers getting more feedback called the “feedback loop” very aptly named by Eric Ries in his book the lean startup which is a must read for any business owner real estate or otherwise IMHO.

After using some industry best practices and armed with our customer feedback we settle upon some of the holy-grail elements in business called SYSTEMS (not always, but more on that in a future post!) which are what actually create freedom in business – sometimes we think that getting into business for ourselves in the first place is what creates freedom….wow is that ever wrong! I think that any veteran entrepreneur in real estate can attest to the fact that the business unto itself dos NOT create freedom, actually quite the opposite some days/weeks/months.

While the systems in the real estate business are being built/re-built and learned that takes up a massive amount of time, energy, and cash because a lot of that process (without expert guidance/coaching) is trial and error. That’s ok because that is the part of the trill of creating your own thing, testing and measuring to figure out how to create a better mouse-trap for yourself and your customers.

We have all heard the draconian phrase that “the customer is always right” correct? Well, in my past corporate world we often said in our meetings that in fact (well in operations anyway maybe not sales) the customer is often WRONG and they pay us to tell them that in a tactful way!!

This may be an avant-garde opinion, but before you start throwing stones I suggest to you that you consider the following question: Why does the customer come ask you for help? The most basic answer is that they have a problem that needs solving and the solution is your product or service correct?

Now, if we can agree the above is true – then would your systems not be the glue that hold your company together? Do you not wish to serve your customers all to the same level or better as consistently as possible? Well, if that is the case then your systems, methods, order of steps you take and the reasons why you take them is your special sauce that gives the customer what they want correct?

There will be customers that want to control the process or feel that they might know better than you (the expert that can solve their problem)….does that make any sense? That would be equivalent to asking the butcher to come into your kitchen and tell you how to fix a leaking tap! So when the customer asks you to change your proven, tried, tested, and approved systems that get results – respectfully tell them NO. Now, I am not suggesting that you be harsh or to not be accommodating to customers needs – I am suggesting that you can’t help everyone and not everyone is your ideal client.

When you consider the 80/20 rule that 20 % of your customers make up 80% of your revenue, and the rest cost a lot in cycles/money that focusing on the more delightful and profitable group just simply makes good sense for your bottom line and your sanity. Keep control of the wheel on your business, you wouldn’t let your passenger steer the car going 140K down the highway…I suggest you don’t let the customer steer your processes you know how to get the results they need.

To your success,

Tim Reid

#respectthehustle

New Year New Deals in Calgary

Happy new year’s everyone! (yes I am aware that it’s Jan 18th already!) There is so much activity in Calgary Real estate right now, despite what you may hear in the news overall the market is VERY active right now. I got outbid on a foreclosure for on of my realtor clients by over 30K!

There are segments of the market that are having a rough time for sure, higher priced homes have taken a hit – 1.5M+ buyers are well aware that it is a sellers market, and when those owners need to sell….well they NEED to sell due to financial changes in their world and they need to slow the burn so their mortgage doesn’t eat up all their savings

I mentioned “one of my clients” – that is because we now offer Realtor services through real estate professionals inc. I am the “investor first realtor” because I was an investor for over a decade before I started the realtor gig, as an addition to our other services. This allows me to have both conversations with private sellers because frankly, a lot of clients just need to sell and not get creative and do an investor style deal such as agreement for sale. (we also just won #1 last month in our brokerage!)

I get asked all the time how the market is doing, well based on demand and the amount of inquiries we are getting from investors/sellers/buyers fueled by the low rates and buyers market – I tell them that the market is very busy overall. Now, condos sales and investors looking for condo investments has certainly shifted, AirBNB was a hot topic in 2019/early 2020 now that demand has greatly reduced (not gone) and inventory is high so sales will be lower but everything sells for market value…what someone is willing to pay for it.

Those who are new to the game of flipping houses would do well to stick to ARV up to 525K that way you will get a quick sale and not have all your profit eaten up by holding costs. Those with more experience and can keep the time/budget for construction under control, then there are a few projects here and there that could be taken on up to he 700-800K ARV range – now the higher the price for the home the pickier the end user who is going to live there so keep that in mind for your flip project and budget accordingly.

The question we hear is should I invest in real estate in Calgary? Well that depends on your goals, certain things work here in this part of the market cycle. When you are getting used to the game of real estate, it’s best to do it in your back yard – if your looking to expand there are better markets for certain strategies contact us for a discovery call if you are looking to branch out of Calgary real estate into other centers.

To your success,

Tim Reid

#respectthehustle