There are many strategies that can be used to make money in real estate, some days it seems like there are more than you can count if you have an eye for creativity when looking at a deal. In the Calgary area with everyone panicking about the oil prices and fearing that the Alberta economy is going to crash – changes the landscape for some exit strategies but not all. One of the strategies that I like the most is renovations which works in any market: up, down, declining, rising, sideways you name it – if your plan is to buy/fix/sell then you can do that in any market conditions because you are adding value through repairs/updates. Of course, this only works if you due your due diligence properly and know your numbers to a T while keeping your costs under control. With all the panic in Calgary there could be some more motivated sellers on the market in the coming months which would open up the door to things like lease options being a bit more feasible than they have been with prices soaring and competing offers being the norm over the last 12 months. There is always a strategy that will work well in your local market but depending on the fundamentals in that area some may be better than others. For example I would say that buy and hold in the residential space (non commercial/multi tenant) would be a poor bang for your buck in Calgary right now due to the price surge we have seen and low inventory, Edmonton or some of the US markets would get you a lot more properties for your dollars. I also think that Edmonton will be a strong lease option market now and in the future, I know of a few investors that execute on that strategy alone to run their whole real estate business. Wholesaling of deals will work in any market to be sure, but the types of GOOD deals that you will be able to find will depend on the same fundamentals such as job growth, new transit expansions, factories being built or large government projects in areas such as Ontario/Quebec. What is your favorite strategy? Please feel free to contact our team and let us know what your challenges are in your niche in real estate today – we are here to help!
Tim