London Ontario

#THECLOSERSDAILY : EPISODE 201: MASSIVE MORTGAGE RULE CHANGE

So some massive changes coming in the mortgage industry, and Ottowa dropped a bombshell today, and that was that people that are putting 20% down on a house are going to have to qualify at a higher rate than they did previously. What does that mean for you guys, the consumer? It means the same house you qualify for today, as of January, you're going to have to earn 20% more income to qualify for that same house. You know, if you've been watching our series, we've been predicting that mortgage rates are going to continue to climb, they're now saying they are going to be up to about the 5% range if things go the way that they're going, but this is the biggest change we've seen in the mortgage industry in a number of years, and kinda scary. I know some of the banks are concerned that this is going to push consumers to go to tertiary or secondary lenders, and unsecure lenders which, who knows what that's going to do? And, they also don't know how it's going affect credit unions, who are governed provincially, versus federally. It is massive news, if you have any questions, give us a show, we'll hook you up with a mortgage person that can definitely guide you, and we'll keep an eye on this story for you guys.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 190: GIMME ALL YOUR MONEY

Let's cover another riveting topic in real estate. This one has to do with deposits on a contract. How does it work? Usually works one or two ways, you can either submit a deposit when you actually submit the offer, or you can have it upon acceptance. So if they accept your offer, what is that look like? Well, in a standard contract it has to be given to the selling brokerage within 24 hours of acceptance of the offer. If you're late on that they can actually try and squeak out of the deal. I've heard in Toronto when they hear another buyer is lined up they often try to do that, doesn't necessarily happen as much in our market, but it's something to be aware of. Now, once The brokerage receives that deposit, they've got five business days to get it into their trust account. A trust account is where the deposit is held while the buyers are fulfilling conditions so that it is protected. Typically they're non interest-bearing. Deposits work in a lot of different ways. You can put some stipulations in the schedule "A" of your contract. If you have any specific questions, hit us up in the DMs. Thank you for watching, we love you guys.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 189: REFERRAL DANGER

So, word of caution for people looking for real estate agents, be very wary of referrals. You gotta be aware, kind of behind the curtain in real estate how referrals actually work. So what will happen is an agent will call an agent in another market and say, "Hey, I got a client for you", get a percentage referral fee from that agent, I've seen as low as 15, I've seen as high as 35, if not a little bit more in some cases. But what's really important is who are they calling? Are they just calling a random broker and saying "Hey, I got a referral, I want 35%, "give it to whoever you want."? Or is it somebody that they actually know and they vetted and they know what type of business they run, are they a top producer, do they know what they're dealing with? If you're looking for investment properties, and that agent gets a call, sometimes people will just fake and say, "Yep, I do investment properties, "I totally specialized in that." and then they might be learning on the fly at your expense. Just make sure you know who you're dealing with, make sure you know how they got vetted. Like Hamilton, for example, Mike Kettle, I've known the guy for three, four years, I know exactly how his business runs, and I know he would be treating my clients like family. So you just gotta be aware of the situations that you're getting yourself into.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 188: OFF MARKET DEAL

Tonight we've got everybody's favorite thing in Real Estate, and that's an off-market property. We always promise that we're gonna give you guys off-market deals, aside from just the insights that we do on the daily episodes. So 1621 Mardell, off market, exclusive listing. It's not going on MLS. It's gonna be priced at $289,000. Cash flow is just over about $1,000 a month, it has just over a six cap as well. If you're curious about that, let us know. We'll send you a link, or check out the link below and sign up and we'll blast it out to our private network tomorrow. Again, it is exclusively listed. Agents know what that means out there. So if you're curious, or you have buyers, feel free to give me a shout and I'll give you the lowdown on the property. Student rental near Fanshawe Area, and it will fly off the shelves. It'll sell before it even goes on MLS.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 187: BE AFRAID

So, surprise, surprise, it's just after 10 o'clock, we actually almost forgot The Closers Daily. We actually spent the entire evening with a national group of investors that we represent, talking both of London markets and major changes happening. I actually got some insights into Kitchener, Cambridge, Waterloo, we work with some great people across the country, so, always good to hear from them. The one thing that we wanted to mention in this episode is when it comes to investment properties in London, Ontario be very, very careful what you're buying right now. There's a lot of misrepresented stuff out there that's being advertised as legal or licensed, it may actually be licensed but there's some serious licensing changes that have come into effect in London and essentially, they're going to be inspecting every single licensed unit. Previously, it was a self- certification checklist that was done by the property owners, so uncle Jimmy might have thought his property was legal, but there may be some serious issues with making that a legal property. Also, some parking restriction things you need to be aware of. There's really the fire code, there's the building code, there's the rental licensing, really honestly just work with somebody who knows what they're doing, and make sure you know what you're getting yourself into.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 186: KEEPING UP WITH THE JONESES

Keeping up with the Joneses is something that happens a lot in Real Estate. You set your goals for the year: let's say 50 transactions, and all of a sudden, you hear about somebody that did 100 or 150, 200, and you think "I'm not good enough". Happens in social media too. You have 100 followers, or you're getting 10 likes a photo, and then somebody's getting a thousand. Then you get a thousand, then you want five, then you want 10. To be honest with you, I think you shouldn't pay attention to these things. Turn off your notifications, just focus on putting out good content, make sure you're building your business the right way, for the long term. Make sure you're giving valuable service to your clients, and in the long run, you'll win. It's good to be aware of the competition and everything else that's out there, but focus on yourself because every minute you spend focusing on your competition is time you could've spent on your own business. Same goes for social media. If you're looking to growth hack and build inorganic followers, its gonna hurt you in the long run. And your posts are gonna get exposed due to audience that could care less about you. If you build an organic audience, you're better to have 150 people than a thousand who actually care about what you

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 185: ARE YOU SCARED

Okay, so, full disclosure, we feel so blessed that we work with some of the most amazing people, a large part of our business has come to us by way of referral, friends, family. The long-term relationships that we've held over the years we never really pushed them, but we happen to get a lot of calls from that sphere, and because we're so close with these people, a lot of times they feel bad asking us a thousand questions per transaction. It's a pretty frequent conversation, we tell them don't worry about it, it's our job we love doing it. If we didn't, we would just do something else. And to be honest with you, when you're doing a real estate transaction, a lot of times you're only doing two or three, maybe four, in your lifetime. If you're in investments it might be a little bit different, but there's no stupid questions. It's a huge transaction, you should be able to ask as many questions as you possibly can. If your real estate agent doesn't know the answer, they should be honest with you and they should go and find the answer. Should always have that open door policy with them, there will be boundaries of time and everything else, but transparency and having a strong relationship will net you a better end result at the end of your

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 181: MARKET CRASH

So let's talk about something that's counterintuitive while you enjoy the beautiful sunset behind me and that's how do market shifts and interest rate increases affect the investment market and is it good or is it bad for investors? Well, it depends on who you are say you take a large swap of investment properties let's talk like 250 to 400,000 dollar range you'll find it's very competitive in that marketplace for people that can afford that product. When interest rates go up a lot of those people get pushed out of the marketplace, so it's actually good for some investors. You'll find cap rate compressions or what stuff's selling for will be stifled down a little bit it's not as competitive so it's actually good a lot of people will wait for the market to dip to actually pull the trigger, so you'll find in really really bullish or strong markets people will sell their assets at top dollar, bank that money so when the markets dip and crash they pick up product at a lower price in a less competitive market, so the markets are always good depending on who you are and what you are trying to accomplish. As we always say make sure you have a plan and don't react emotionally to the marketplace, be that other guy

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 180: OPEN FOR BUSINESS

So the third takeaway from the Commercial Emerge Conference last week on what we can do now that there's so much interest in London to kind of throw jet fuel on that fire and get even more businesses to relocate is make sure that the planning and the consultation process gives those people the impression that London is open for business. Now this was an outside person who said that the perception of London is when they come to the city and they're looking at sites and maybe going through their pre-consultation process that it seems like a very lengthy and cumbersome process. City Hall and the Planning Division are located in two separate buildings and they said this threw them off a little bit where otherwise when they went to different cities, they almost felt like the red carpet was getting rolled out and the city was really willing to work with them. Now we know from the planning and the consultation processes we've been a part of and the contacts we work with, London can actually be great to work with at times. I know I was talking to Adam Carapella as well at the conference and he said you know he didn't really think that that was true. I think because we know the inner workings of the system, might be a little bit easier for us locally but maybe we need to work on sending that message out to the public.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”
 

#THECLOSERSDAILY : EPISODE 179: A NEW HOPE

So the first major takeaway from the Commercially Merged Conference yesterday on how London can succeed provincially, nationally, and globally as a competitive marketplace would be that we need to band together. You know, in London, it seems from the outside, anyways, and definitely from the inside a little bit, that we operate as islands individually, right? Whether it be development, whether it be the real estate industry, the tech sector. You know, some outside people were pointing out yesterday that we can look at Kitchener or Waterloo, that have these massive incubators that are combined of companies that operate in the same industry and maybe compete with each other, but they have a good time helping other people succeed. If you have that abundance mindset, it can change your entire community. One of the positive things of the conference yesterday, and don't listen to the London Free Press, listen to this, was those people that were competitive against each other, were bantering back and forth like and having and honest, open, frank discussion about what needs to be done to clear the Laneway in London. I think there is hope, not like the negative news sometimes makes you perceive.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 177 PT2: MORE LOWBALLS

So after yesterday's episode, turns out low-ball offers are a pretty hot topic. We got some DMs asking us to continue that series and discuss presenting the actual offers. Yesterday we covered how different markets and different personality types make a difference when dealing with low-ball offers, but how do you actually present the offers so you don't get shut down right out of the gate? Well one of the tactics that you can use is actually prefacing the offer presentation with a phone call to the agent. Having a good relationship with the agent would be a great place to start, but knowing the back story of who the seller is, framing the offer in the correct light, could make all the difference in them dealing with your offer or you even getting a sign back. Second thing you can do is spend some time writing a really, really well put together e-mail dictating how you came to that value and why they shouldn't shut down the offer right off the hop. If you give them a little bit of ammunition, the listing agent might be in a better position to get you that counter, or even get the deal done for you.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 176 PART 2: LOWBALLS

So how does a low ball offer sound to you? Most people don't like it, buyers tend to like it because they want to get a better price on a property and some sellers shot down. How do you handle low ball offers and writing them or dealing with them from the listing sides of things? Well, again, it's a case by case basis, right when people ask you an opened ended question like this a lot of it has to do with the minutia. What market are you dealing with? Are low balls a frequent thing their marketplace? We see marketplaces where 100,000 dollars under asking price isn't unexpected, and other marketplaces where five or ten under asking price will get you a hardy shot down or no response at all. You know, a lot of times when we're talking and we establish a price or a strategy with them, we're telling them expect two or three counters and any negotiation and base your first offer off that if you've got the ammunition to support it, so don't try and end the conversation before its even started but make sure you are dealing with somebody who understands the minutia and how to go about getting the best price for that property

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 176: I WILL REMEMBER YOU

So we got a question from one of our favorite audience members and the question was The L Star jurisdiction is switching MLS platforms. They're moving from DMS to Matrix. Is that going to affect the searches, 'cause there is a note that the searches are gonna be ending as of September 30th. And yes, it will affect the searches, actually, so if you're not migrating your searches on the back end as a real estate agent, then the searches are just going to be cut off. If you actively have a portal or a search set up through a real estate agent, and it disappears, contact them, have them reset it on the new system. Matrix seems like it is gonna have some new features, and mainly what I think is going to affect buyers is the sharing of information amongst boards. So typically when you list a property now, if I only list it on the L Starboard and say not on the Woodstock board or the Huron Board, sharing information across platforms is very difficult. I think the new system's gonna make it a little bit easier. Time will tell. I know, right now, we're migrating I think 800 searches over to the new system for our firm, so all the information is not out here yet, but we'll know as of October. So if you have any

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 175: LAST SATURDAY

So we got a super exciting announcement for you guys. This is the last Saturday that you're gonna see The Closers Daily. So we're gonna be switching up the programming because we're gonna be taking this game to the next level in terms of giving you guys value and content. So we've invested in some stuff on the back end that we're really excited about. It's going to be starting next Saturday so keep your eyes tuned to the channel for that. We'll make an announcement, let you know where the long form content is gonna be. But The Closers Daily is gonna be Monday to Fridays. So keep the questions coming in. We're gonna keep pumping up the content daily. We promise we'll do our best to answer all your questions in due time. We do keep a running list. So if we don't get to you right away, it is coming. We appreciate all of the good feedback we've gotten on it. We appreciate your attention. We really really really want to expose as much as we can about our industry. Try to get some transparency where people think that there might not be some. And always look to provide value. So if you have questions email us info@theclosers.ca. Hit us up in the DMS. Like, follow, share. We just appreciate all of you guys and thank you so much.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 174: YOU'RE HIRED

Its members, and it was you know if you're unhappy with the sales process with your agent is it a good idea to switch agents throughout the sales process and is that going to hurt your sale? Well, that's a pretty loaded question. I mean, if you break down different price points of properties there is a different expectation in terms of average days on market so you need to know are you priced properly, is the condition of your property good, and how's it being marketed? If you answer all three of these questions and they are not being satisfied, you need to do what's best for you, but I will through a caveat in there. Say you're dealing with a two million or three million dollar property that the average days on market is a year or longer sometimes it just takes a lot longer to find that right buyer and you can actually really hurt yourself by switching agents through the process. It shows a lack of confidence in either the agent or the pricing of the property and can create more problems than it can solve. So pretty loaded question. If you have any specific questions, email us info@theclosers.ca. Have a great weekend. We love you guys. Take care.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 173: YOU OVERPAID AND UNDERSOLD

So it's late at night, you're sitting in bed, you just sold your house and you start thinking, did I sell my property for enough money? Could I have gotten more? Or you're a buyer, and you're thinking I just firmed up on that deal, could I have gotten it for a better price? Or did I buy something that nobody else wanted? What you're experiencing is called buyers or sellers remorse. Totally normal emotions to have. Comes up in almost any real estate transaction in our industry. What I can say about it is, you gotta gotta go back to the advice, we always talk about and that's not getting emotional about the transaction. Make a plan from the outside. If you're selling, make sure you have an understanding of what your net proceeds are gonna be of that sale. Kinda what the low medium and high confidence limit is in your market, and anything above that high point is gonna be gravy on top, but at least you understand your product and you're not second guessing yourself. And if you're a buyer, same thing. Build your portfolio or what you're looking to require from the outset, stick to that plan. And don't get caught chasing deals. I've seen people lose deals, 'cause they're trying to chase an off market squeeze an extra couple grand out of it.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 172: SHOPPING SPREE

So the next time you need to go and buy something why don't you pause for a second, and decide to shop local instead of just going to a big box store. Was actually reading an article in London inc magazine about a new Instagram account that was started in London called shopldnont. And you know it was really interesting to see how that they queued up the account to be the radio dj of local businesses. What do I mean by that? I mean the quote from it was Rodney Lever said, "What they wanna do is they wanna curate the best music or businesses out there, and repost or support them and fan the flames of their success by being that voice for them." It's interesting to see a local business owner jumping into a community, but it actually builds the communities when you have people involved that are supporting those businesses rather than running to the big box stores. You look at places like OEV, you go to cities like Bayfield, I mean we cover Lake Erie to Lake Huron. And I've seen communities in Saint Thomas, London, and those areas that have all seen massive growth because of the local community. So shop local and support the people that are doing good in your community and creating.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

#THECLOSERSDAILY : EPISODE 171: BUILDING A MYSTERY

So, we got a question from one of our audience members and it was, "How long does it take to build a business in real estate?" Pretty loaded question, I could probably talk about it for an hour or so but I'll give you the short answer. When we got into the business, we were told five years, that's your typical cycle of when you're gonna be closing your initial properties, to having those people sell and resell, typically a three to five year cycle, over and over to build a self-sustaining business. Now, you gotta keep in mind that market fluctuations have a big impact on this. If I come in hot out of the gates, do 50 deals my first year and I'm just closing everything left, right, and center, irregardless of my experience, maybe some of those deals are going to come around to bite me in the butt within the first couple years and I might crash and burn out of the business. Vice versa is true, if I enter during a tougher time in the marketplace, but I really take my time, I do what's right for the client every time, even if it takes me longer to build that foundation, a lot of times you'll end up with a stronger business. So, there's a lot of things that go into that question, maybe we'll cover it in some future episodes. Hope you guys are enjoying the series, we appreciate your attention.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”

CLOSING TIME 11: DOWNTOWN LONDON ONTARIO, GRAND BEND AND BEYOND

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#THECLOSERSDAILY: EPISODE 170: FutureAMA

Function obsolescence is a word that's used to describe something that's outlived its usefulness. Commonly actually, it's used in Real Estate to explain when properties have not been upgraded year on year and ended up leading to a much older effective age of the property, and a lower appraisal value, because a lot of the items are going to have to be upgraded over time. The reason I'm bringing it up in today's episode is we always tell people to plan for functional obsolescence. Let's use Commercial Real Estate for an example. So say you're doing a new build or there's a large component of your commercial investment that needs to be upgraded. Sometimes, just doing the bare minimum isn't enough. You need to plan for what that property's use is going to be in the next 10-15, to 20 years. If you thing from a Commercial Real Estate standpoint, you gotta think electrical systems are gonna change, tenant needs are gonna change so always look to the future. Don't always just do the bare minimum.

Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”