Real estate has its ups and downs, and Wayne Weum, an Edmonton-based investor, is currently experiencing the low points. But that won’t stop him from managing his portfolio and even picking up some diamonds in the rough.
“In this economy, you have to be active and attentive in your business,” Weum writes in his market plan brief, which he shared with Canadian Real Estate Wealth. “First and foremost, whatever you have in your existing portfolio must be meticulously maintained and offered to the rental market as something that stands out.”
These are some tips Weum offers to other investors who may be in a similar situation.
“We’ve spent most of the summer so far making the little fixes that have been put off becausee they weren’t a priority. Now things like painted trim, new doorknobs, plumbing upgrades, and brand new appliances are what we are on top of,” Weum writes. “Going forward, we are confident that the market will come around and the demand for housing will consequently increase.”
Choose your next investments wisely
“Find a neighborhood that offers real estate deals that will be profitable and provide positive cashflow even in the slower economic times. This is exactly why I like townhouses so much,” Weum writes. “The tenants are typically small families who work close by in retail and service industries. The love being part of a community and having close access to family entertainment and community services.”
He provides a snapshot of an area in Sherwood Park he plans on targeting to hopefully find some deals this year.
Find motivated sellers
“We pay particular attention to the expired listings, as this is where we may find an opportunity,” Weum writes. “The comparables in the area were selling for close to their list price, so it may be possible that the unsold units were mismarked or inappropriately priced.”
Weum offers a step-by-step plan to help you win some deals. Find those on the next page.
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A leading investor shares his tips to on how to excel in a struggling real estate market.