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In 1993 I found myself out of work with an investment property that was breaking even. I was living on a boat down in Port Credit Marina. The bubble burst and like thousands of others I lost tens of thousands of dollars. What did I learn that is actually relevant and useful today and for you?
Well the biggest thing in relation to real estate is that all appreciation is speculative. I had a conversation that turned into an argument with a fellow investor from Alberta. He was trying to convince me that Alberta's economic fundamentals pointed to a boom that will not stop and that cash flow is irrelevant because the property will appreciate so fast. Now from the data he presented, it looked tempting. And yes I am believer in economic fundamentals, but I learned my lesson. All apperception is speculative. My point simply is this....do not invest in a investment property that does not cash flow (breakeven is ok as long as all diligence has been accounted for) when appreciation is the only thing making you money.
MANA REAL ESTATE GROUP
Your Full Service Real Estate Team for the Barrie, Orillia, Midland-Penetang, Collingwood, Innisfil, Wasaga Beach, Alliston, Owen Sound, Parry Sound, Muskoka, Gravenhurst, Bracebridge, Honey Harbour, and Parry Sound areas
http://www.manainvestments.com/
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Just listed 88b Bernick in Barrie Ontario.
A fantastic 4 bedroom, semi-detach bungalow that is walking distance to RVH and Georgian College in Barrie Ontario. Wood floors on main level, updated and reno'd kitchen, finished basement with second kitchen; great for student apartment. Separate laundry facilities as well as a fenced in backyard with small storage shed. Walk to corner of Grove and Duckworth Tim Hortons!!
Listed at only $239,000.
For more info go to: http://www.homesbytheowner.ca
Plus we have many more homes to view in the Midland, Orillia, Muskoka, Collingwood areas
Homes by The Owner
Your For Sale by Owner Team in
Georgian Bay, Simcoe County, Midland Penetang,
Orillia, Muskoka County, Grey Bruce and Parry Sound Real Estate districts
http://www.manainvestments.com/
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After my first purchase of the semi-detach I then thought I would expand my empire (ha!) and invest with my first partner, Gary Does in a huge old 8 bedroom mansion near weston road and 401. It required massive work ( re dug basement floor, lathe and plaster replacement, plumbing, knob and tube etc...by by money....).
We had fun though and talk about learning the hard way!. We were paying 12.5% interest!!!! And we thought we had a deal!. Wow what a lesson. After about 8 months all hell broke loose and yes the bubble came crashing down. I sold my interest back to Gary ( as I got laid off from my job) losing about 40k in the process and moved onto my sailboat ( yes its still my dream). I managed to hang onto the semi detach in Richmond Hill and kept renting it out. I certainly was beginning to learn the ropes of property management by having many professional tenants move in as i knew nothing of tenant laws and rights and just assumed everyone was telling me the truth.
After getting laid off I actually applied to get my real estate license. I completed pahse one, but moved onto as i started another business ( a whole blog unto itself!) I did though constantly look for deals in real estate. Eventhough I was not trained in what to look for, I still envisioned that real estate was in my future.
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Why after 20 years doing everything BUT real state sales, have I decided to get into fsbo or for sale by owner? Good question. In many ways this is what this blog is about. Its about the evolution of real estate. Its about the changing market. Its about the growth of my business. Its about shaking things up...especially in the Georgian Bay, Orillia, Midland and Muskoka areas. In a nut shell professional real estate people need to be exactly that...professionals, versed in ALL aspects of real estate. And i am sorry to say that the 80/20 rule does not apply here. Its more like 97/3. Which means that only 3% of real estate experts are truly that...experts. the other 97 are wanna-bees.
So I ask again why for sale by owner? Its simple really. The fsbo market is growing at 80 to 100% a year. The mls maybe 10. ( depending on the market you look at). It will only be the next best thing when real estate agents decide to embrace for sale by owners and work WITH THEM ( the vendors) to truly help sell there home. FSBO's are here to stay and they will become part of the MLS landscape in 5 years. Get used to it.
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The hope when we send our children to school is that along with academic knowledge they will pick up some vital lessons to prepare them for adult life. The lessons learned this past week by the students of St. Catherine of Siena School in Barrie could be that political correctness supersedes expression of community or team passion and pride and that you can justify any action, how ever far reaching, so long as you attempt to affiliate peoples worst fears with it, (just ask George W. Bush about that)
Thirteen year old Adam Zussino who showed up for class last week with his hair dyed blue as his expression of support for his Barrie Colts PeeWee A Hockey team in their playoff efforts learned quickly that attempting to stand apart from the masses, regardless of how noble your intentions, is often a road paved with resistance from those who are unable to understand or appreciate your enthusiasm.
A 13 year old boy joining a gang and turning to a life of crime as a result of dying his hair blue for his local hockey team seems like a very big stretch of logic, but that was exactly the fear association that justified the orders to him by his school not to return until his hair look like the rest of the students once again. I am reminded of a quote by Nietzsche: "And those who were seen dancing were thought to be insane by those who could not hear the music".
Ironically, once the warmer weather returns, support will likely be granted by many of our schools to hold fund raisers in which swarms of students take over busy intersections to promote student car washes. I have more concern for those unsupervised students being hit by cars than of Adam Zussino leaving school and quitting organized hockey to join with the homeys in the hood.
The school board and this principal have yet to retract their position, however, given the media attention on TV, by Don Cherry and in many Ontario news papers, the lesson they may demonstrate to our impressionable students in the coming week might be; it is ok to reverse your position on something if you think there is even a slight chance to save face with the people of your community.
See stories in Toronto Sun >>Don Cherry's reaction Saturday's story
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