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Business Motivation Real Estate

“Team Team Team , Even single person is a team“

Now a day’s everywhere, all across GTA Real Estate, you will see everyone is promoting as a team. It seems like there is a storm of teams rushing from everywhere to prove its worth. I personally feel that competition is always good but sometime people just start following a trend without understanding their own skill set and capabilities. I fully respect those who have zeal to grow and have capabilities to prove themselves. I also understand and believe that real success is making others successful. But without understanding my own skill set and capabilities, if I will try to do something which others are doing, will definitely be a blunder not only for myself but for my profession as well. Unknowingly I will create a mess for myself and others.

I will share an interesting story with you which recently happened to me when I was talking to one of a productive Realtor in Alberta about our franchise system. He bombarded me with his questions and most interesting question was, Why should I take Save Max franchise where as I am working with a brand which has more than 100 thousand Realtors network. I was very impressed with his question and answered him with an question. I asked him, after working more than a decade with some brand, how confidently you can send one of your clients to your counterpart in Toronto, who is working under the same brand.

I am sure you can very well guess his answer and he said, he can’t. The simple reason behind that is there is no one who is inspiring and cultivating a team culture there. They are being grown in an internal competition culture and there is no team structure in place which can become a guideline for them to do business together as a team. Just look around in your brokerage and see how confidently you can share one of your client’s information with someone else who is working in same office. How sure you are that you will get the right solution to any of your problem from your senior colleagues. I am sure you will have the answer, and if you don’t have, then I dare you to try as an experiment and you will have the answer soon.

Now comes the biggest question what makes an effective team and how team can help you to be successful in your life as a professional. Just because I have done good business doesn’t qualify me to become a good leader to lead the team. But for sure that is one of the important criteria, as I personally believe that if you are successful yourself, then it’s easier to help others to be successful. But it’s not necessary that a good salesperson can be a good manager too and vice versa. I always say, team is what a team leader is. The most important characteristic of a team is the spirit among team members and it’s very hard to find or I would say, it takes a lot of hell to gather such people who have that spirit. Majority I have seen that even team leader doesn’t show that spirit, then how can he/she inculcate the same in team members.

Then comes the vision of the leader to grow other team members. Would you like to choose a leader who himself is a follower and doing the activities just by following others. There is a lack of originality of ideas and initiatives. Having a leader who himself is a follower makes you the part of a group not a team.

Before you decide to become part of any team , look at the track record and see how many team members have grown to the next level under the table leadership of team leader or if the team is there for name sake without any team spirit .

I come across a little funny situation when I see people promoting team with their spouse and the real fact is spouse is not even an active Realtor. Then what’s the fun of promoting a team and it’s just for the name sake or satisfying personal desire to make ourselves happy that we have a so called team.

I am sure many people will have different opinion than me which I fully respect and understand. The only objective of this article is to share my viewpoint . I am not trying to prove that I am the best team leader out there , I believe that I am a student and learning everyday from my team members . I try to share what I learn to contribute positively to my profession .

If you care you will share .

Categories
Business Motivation Real Estate

“Success Criteria for Realtor®: My viewpoint”

I come across Realtor® everyday as it’s my profession and I have made it my passion for simple reason ,I feel i can do this best . I am trying to make myself better every single day and keep working on myself to strive for the best out of me. When I come across any Realtor during the interview or general interaction, without asking a straight question I try to identify their criteria of success for themselves. Sometimes I ask them why you wanted to Jon Real Estate. Sometime I ask what you want to become. And sometime what’s your ultimate goal? Majority I realized people measure their success with money, someone will say I want to make this much and that much .In my opinion there is nothing wrong in it and I understand that measuring success is monetary terms is a good criteria but to make that as top priority is my challenge. In my humble opinion the success in Real Estate should be measured on three criteria.

1. Personal Growth

2. Professional Growth

3. Financial Growth

Let’s have a brief discussion about all 3.

1. Personal Growth:

I always keep that as a top priority that if my profession or my work is giving me an opportunity to become a better person every single day and I am growing on this opportunity by every single day. Real Estate gives us that liberty to help our clients to fulfill their dreams of living in the house of their choice within their affordable range. It makes me the happiest person when I see someone living in their house especially first time home buyers. My profession gives me the liberty of time and money and it’s my choice how I utilize it and I have personally chosen to enjoy it to make other successful. I ensure to help as many people as I can, as it gives me internal happiness and make me more contented person. I always try to evaluate my success with my better being between yesterday and today. I also get a liberty to spend good amount of time by reading books as I have liberty of time in my profession.

2. Professional Growth:

My second criterion of success is evaluating myself on my professional excellence. Am I becoming a better professional in my field and contributing something to my profession to make it better for others. Is there anything new which I am learning each day and make sure to share the same with others. If you don’t get professional satisfaction, you will never ever achieve excellence in your field. I personally feel that this part someone can understand only if they make enough money to fulfill their basic needs with some exceptions which are always there in life. Many times you might have heard people saying make your passion your profession and you will be successful. I always say, Do what you are best to do and it will become your passion. Once you reach at that level, no one can stop you from touching the par excellence. Be a better person, be a better professional.

3. Financial Growth:

Now let’s talk about the criteria which is the top priority of majority in any profession but in my humble opinion this should not even be a criteria. As I strongly feel it’s a byproduct of your success. Only you strive for success and achieve it , money is supposed to be there. The challenge comes when we try to focus on by product and loose our focus on the core objective. Off course I am not neglecting the importance of money as it has a lot of power and can help you to achieve our goals in a much faster and shorter span of time. I understand that it’s a good criteria to measure your success quantitatively and can be easily tracked on day to day basis but making it a top priority will take you away from extreme success.

Now this is my opinion and my thought process. I would like to understand yours. Don’t hesitate to comment with your top priority which might help to learn something better or change my perspective of thinking.

If you care you will share.

Categories
Motivation Real Estate

*** Transformation from a Realtor® to an Entrepreneur ***

Today’s life has really become artificial or I will say, fiction dominates more than a reality. In today’s world we admire more reel heroes than real life heroes. We admire more fictitious characters than people with character. But real is always real and original has its own charm.

Today I will share a true story of a hero in our Real Estate industry who is a real life hero. A true example of talent who spend more than a decade in industry but performed average as he was lacking the right platform and then his story of success in a short span of time , once he got the right platform . Our hero of this true story had some good talent and he was doing well in his career but the best was yet to come.

He knew he was doing well professionally but still felt there was something missing, there are chances of exploring his potential in a bigger and better way. He tried to figure out himself, looked for guidance and took advice from his so called mentors but nothing changed. It took him almost a decade and one fine day he dared to explore the opportunities. He was associated with so called a top brand of the industry but always performed little above average. It took him time to realize that he is either stagnate or going down in his career graph. He looked at his more than a decade career and couldn’t see himself an inch above than what he was 10 years before when he started his career. Sometime it happens in life that you hit the right place at right time. The same happened with hero of our story who was craving to do something different but was not able to do so. He was exploring himself and looking for a sharp knife which can help to sharpen his career and take him to the next level. On the other side, there was a platform which has its own unique characteristics and was creating success. That platform has its own criteria and always believed in hiring only brand new Realtors. When hero of our story was looking to explore, simultaneously they were also changing their thinking and was trying to explore the experienced talent from the industry keeping in view the fast growth.

As I said, sometimes you hit the right place at right time, our hero reached there to explore his potential. And that’s it, talent has reached at right platform and then rest is the history. He realized that this platform is the right place to explore his potential and the platform also felt that our hero is best suitable candidate to explore their new thought process of joining hands with experienced talent of the industry. Our hero , who was sometime performing average , sometime above average and was acting like a Realtor® for more than a decade started getting the feel soon that he has reached at the right place at right time . Off course there were initial hiccups of collaborations but both were willing to work out together and have positive mindset , both were adjusting themselves to help each other to work towards a vision and soon it became a deadly combination. Initial days our hero was also skeptical and platform was also adopting a careful approach as it was an experiment but finally it worked really well for both.

Once they overcome the initial collaboration challenges then started another success story of the industry. Our hero who was always revolving between 20-25 transactions a year and was just working like a Realtor® for more than a decade, he was transformed first into a successful Realtor® and crossed 500,000 GCI in a short span of little over 1 year, simultaneously he was learning the art of leading the team under direct supervision of his mentor who was working tirelessly to ensure to explore the real talent of our hero. Soon our hero, who just got the missing piece of his puzzle of success, also worked hard to ensure his genuine contribution towards the success of his career and growth of the platform. The story which started with an experiment from both sides transformed into a team leader who will manage more than 100 million annual sales volumes and will successfully lead a team of 10 more professionals like him to shape their career to next level. He is targeting to become an entrepreneur with next 12 months and will own a partnership in the brand in a short span to little over 2 years of this tenure with this unique platform.

I am sure you all can very well guess which platform I am talking about but let me introduce you to hero of our story who is none other than Naveen Chatrath .

I would like to congratulate Naveen for his real success and am sure he will be a proud partner of our brand in a short span of time. His story is an inspiration for many others who are craving to be successful but lack right platform. What do you think our hero had the same talent earlier, he was working hard as well but it is so important for any talent to perform to have the right platform and work with some vision under an active mentor and then you will realize your real potential? A diamond is just a piece of coal until it reaches to right jeweller who cleans its dirt and give the right cut to get the real diamond .

One thing which we have to learn from this story is that you have to get out and seek guidance to explore the right platform for your talent otherwise you will keep wasting your valuable time as hero of our story did for almost a decade . I can only advise you , you are the one who has to take an action as it’s your life and your career .

If you see yourself and feel that story of our hero Naveen Chatrath is like yours, then it’s easy for you to make a choice. May be your are the next hero of my story.

***Want to become a Realtor®, Join any Brokerage

Want to become an Entrepreneur JOIN SAVE MAX ***

Categories
Business Motivation Real Estate

“How to find Trustworthy people”

What is the biggest challenge of life? People always say that you need food, clothing & shelter to survive but I think there is a fourth aspect as well that you need good and trust worthy people in your surroundings to survive. The biggest challenge comes how to identify that trust worthy people. We are born with some inbuilt qualities and then we have been trained unconsciously to distrust people.

Try to remember when you were kid what your parents told you. You had strict instructions not to talk to strangers and don’t take anything from an unknown person to eat and the same things we conveyed to our kids. This is calling it as an unconscious message which we are passing to our generations not to trust on people. Why we do so, why we take away the opportunity from a kid to interact with others.

The simple reason is we are afraid that they might get a bad person who can harm them. But don’t you think, out of thousand, there might be one bad person and we are taking away the opportunity from a kid to interact with other 999 good people. We have to change our way of training, rather than telling him not to interact with everyone, we should teach him how to identify a bad one which is more meaningful. We are wired to start our relationship with distrust and believe that it takes time to build the trust. That’s not right; we should start our relationship with full trust and let other person prove he that he is not trust worthy.

I have made some simple rules to live my life and identify people.

1. I start my dealing with anyone with 100% trust and give them a chance to prove that they are not trustworthy by their actions. By doing this you will always find trust worthy people to start with and will keep deleting those who are not worth

2. If someone is not good with parents and don’t respect them, don’t trust on that person. Simple rule if he/she couldn’t be his own parents, he won’t be yours

3. If someone is not good with his/her brothers and sisters, better not to trust on him/her.

4. Anyone who had old friends, you can trust him.

5. Always watch someone’s action not the words. If the word doesn’t match with actions, better be careful.

If someone doesn’t respect his parents and siblings, just think how that person can be good and trust worthy as he couldn’t respect those who brought him into this world. A good person is known by his old friends. It is not like they never had fights, arguments and problems with friends and family, it means that they have lives together even after those problems and challenges which shows general understanding of life and respecting opinion of others. That person has an ability to live with imperfect people as there is no one perfect in this world.

Life is simple and easy if you have good people in your surroundings. Let’s start our relationships with trust and let other persons prove their trustworthiness.

If you care you will share

Categories
Business Motivation Real Estate

“I don’t do business with my friends & Family”

How many of us think this way that it’s not a good idea to do business with family and friends. I am sure majority of us think that way or practice this principal in our day to day life. Everyone have their own reason , some will say that we don’t want to ruin relation, some give the logic of not disclosing the personal information and some do so just because they don’t trust their friends and family members.

I am sure few of us will change their opinion after reading this article. I will share my personal experience of my life and proudly say that I happily and successfully dealt in my business with friends and family members. The simple reason for that was the person I dealt in my life became my friends and family after dealing. I always made sure to do business with them as I am doing that business for me and when you think that way, you never do wrong as per your best understanding. If you ever deal with your friends please ensure to deal them in a professional way and they will always be happy to do business with you.

Please ensure to give them assurance that their personal information will be well protected and you will always find a good client and business from their end. It’s always good to have clear terms and conditions rather than keeping the things in limbo or keeping the gray area in between. Friends and family are always easy to deal with if you ensure to deal it properly and make sure you do your best in terms of services and price. You have to be more careful and double professional when it comes to dealing in your own circle.

Especially in our field most of the time Realtors® are part timers and their own circle avoids them as they are not confident about their dealing and experience in the industry. Majority of the relationship gets ruined in lack of clarity and communication.

I am sure this will help you to understand this dynamics better and will help you to grow your business.

If you care you will share.

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Business Motivation Real Estate

***Have you reached your top Potential? Can’t grow more! ***

I am not sure if you ever get a chance to review yourself and look back to determine if you have reached at the top of your potential. We are so busy in what we are doing that we forget to take time out to determine our real potential either it’s personally, professionally or spiritually. I will give you a simple way to evaluate yourself. Take 15 min and start evaluating yourself on these 3 parameters in last 10 years, if you are not almost double or more than that, then you have not utilized your potential to full and there is lot more room to grow.

There is always a way to stretch yourself to the next level but we always undermine our potential and don’t utilize our full energy to take us to next level. The most important question comes, what stops you to reach at your top potential and the simple answer is our own mindset. Somehow we are wired to live in our comfort zone and our mind keeps pushing us to stay there. We are always afraid of taking any new initiative and challenge. You might have seen yourself and many people in your surroundings doing the same stuff from last 20 years. Just imagine if you keep doing the same thing, you will keep getting the same result.

People never explore themselves and don’t like those mentors or leaders who would like to experiment. This happens more in well educated people as they think they know everything and doesn’t need to improve. We have become slave of our mind and circumstances, we always measure success with money not with learning new things. We live in a society where fear is losing is predominant on the joy of doing something new.

It happens to me as well but I will always fight with myself to have dominancy on my fearful thoughts. I would Love to be ignorant of risk of losing and keep experimenting new things as it helps me to explore my potential and reach at new heights every time . I want to ensure I grow personally, professionally and spiritually. There are simple ways of doing it, experiment new things and evaluate the results, Read good books and feel contented , meet new people and let them speak to learn from their experience, go to new places and feel the cosmic energy in that place and align your potential with it .

There is a famous saying that standing water always stink so please ensure to keep growing and keep doing new things. Life is not about how much money you collect; life is about how many moments you collect. Get out of the fear of failure, have an attitude of gratitude, live in present, forget past and don’t worry about the future. Never think that you have reached on your top potential as there is always someone bigger and better than you who should be your aim to become.

I am sure this article will help many to think, take out your fear and will give you another reason to explore your potential. Don’t forget to say thanks to someone, even if it’s me, if you get motivated for a new challenge of your life. As this thank will help you to learn attitude of gratitude. Before I teach you I would like to convey my thanks to those who help me to grow.

If you care you will share.

Categories
Real Estate

“From Part time to Full Time Realtor®“

I think this topic is Real life situation of 90% of the Real Estate industry. There are thousands of Realtors® who joined this profession with a dream in their eyes to become successful. They had to start their career as part timer and doing a side job to run their day to day family affairs. I can understand how hard it is in this country to meet daily needs like mortgage /rent, car expenses, insurance, groceries, kid’s expenses and so on. It becomes more challenging when someone is the alone bread earner of the family. It becomes so hard to make a decision to join full time as it takes some time to settle down and start business in Real Estate.

The first thing which we think in our mind, once I will have some business, I will join full time. Let me make 50-60 K first and then I will leave my job. We tell ourselves, let me good some business and I will come full time. Our business reply us, you come full time and I will be there as well. In the same struggle, we join as part timer and the best beauty is, many brokerages encourage you to join part time. Did you ever think why? That is their business model. They just want to hire no’s as it makes money for them. They are not concerned about your career , they are just worried about having no’s so that either they can charge you $100-$200 fees or can increase their valuation to sell with no of agents to some other big companies which you might know there are many examples like that.

If you are joining the profession and your brokerage didn’t encourage you to join full time, you better think twice.

While reading this article, you will easily correlate yourself with what I have mentioned. Are you the one who is still struggling to make up a decision to upgrade yourself from a part timer to full timer? Just imagine when you joined , didn’t you think you will come full time in 3-6 months or may be 1 year. But what happened, you are still a part timer after 2-3 or even more years. Did you ever realize the basic reason for that? You might be blaming yourself for the situation but that’s not the real truth, the fact is there was no one to guide you, to push you and to coach you about your successful transition from part time to full time.

I personally have mentored 100s of agents who came to me and wanted to start their career as part timer. After meeting with them, majority joined as full timer and rest were full time within 3 months and all of them are very successful in their career today. I feel proud when I look back at the time when they came to me to join the profession; their aspiration was just to replace their existing income of 50-60 K but all of them making 6 fig net income and few of them even touching 7 figures successfully. Not only that they have build a system for them which is helping them to get passive income which will keep working for them for their whole life. That’s what I think is the real success.

We have a well proven formula for a successful transition from part time to full time career in Real Estate and I am happily willing to share the same with any of the Realtor® in the industry. Please send me a personal message and it will be my pleasure to help you. I promise if you religiously follow my advice, you will be one of the most successful Realtor® in the industry. We guarantee success 100% (except for negative people).

Categories
Real Estate

^^^ Type of Realtors® ^^^

In last few months, we have started expanding our business operations to other part of the country as well and I got to chance to meet many more Realtors® from various back grounds. Very interestingly I have observed that there is various classes of Realtors® and Realtors® in one particular type have same kind of thinking and working pattern all across the country. Based on my experience, I have identified few types which I would like to share.

1.    **Realtors® without License **

This is the most interesting class as these are the people who just bought 1-2 houses for themselves as a buyer and visited few open houses. They start feeling they know a lot about Real Estate. Though they don’t have license and experience but their Real Estate advice is always free flowing to their friends and family members.

2.    **Realtors® for their own Transactions**

25% of the people got their license after they bought or sold their houses and were really worried about the commission they paid to Realtor®. They wanted to save that commission next time so got their license. Next transaction they saved 5000 commission but spend 10,000 to get the license and to maintain it. Above all they screwed up their own deal because of the lack of knowledge. They never thought what if the business or job they are doing and their clients might have thought the same thing, in that case they wouldn’t even be able to buy any house in lack of any income to them. Don’t try to do others job, do yours and do it best.

3.    **Secret Agents **

This is a very interesting class who took their license quietly. They were even worried in exam and kept parting before and after exam that no known person should meet them there. If someone known met them, first they were trying to hide their face and by chance if they met the person they start giving excuse. These people are perfect material for FBI as many times even their family members don’t know if they license. Forget about neighbors’ and colleagues.

4.    **Realtors® want to make quick money **

Many of us joined the profession as we were impressed (sometimes jealous) of the flashy life of our Realtor® Friends or family members and decided to take license without even understanding our own traits. These types of Realtors® get frustrated fast as they want to make quick money without learning the business. Majority get out of the business in first 6 months and few who do some Deals and get some success, get out of the business after 2-3 years as they never learned business but always focused on making quick bucks.

5.    **Part time Realtors® **

These are a very interesting class and exist in majority. These are the people who are not satisfied with what they are doing. Though they claim that they are happy with their existing profession but if they are then why they need some other profession. They are confused personalities and unfortunately will not excel in both the fields. I have seen many of them are talented and have good material for Real Estate but their problem is they are not confident about themselves though they feel they are. Secondly they have a logical problem of running their families day to day expenses but this can be easily solved with a little planning.

6.    **Realtors® by chance **

This is an another interesting class who took the license as a back up and joined Real Estate as they had nothing else to do . Sometimes they get lucky and get success and sometimes they are really a good Real Estate material and become good Realtors®. They learn the business and make a successful career for them.

7.    **Full time Realtors® who left their jobs to become Realtor®**

I personally love these daring guys and always admire their decision making capabilities. They either have trusted themselves or have trusted on their mentor to make them successful. Their success rate is really high as they have no other option than to succeed. We should really respect and support those who adopted this as a profession to feed their family.

8.    **Entrepreneurs **

This is the most valuable and interesting category. They all have joined Save Max and are doing excellence in their career. There are still few who are outside still in other categories but eventually they will come under the same umbrella.

Please see in which category you fall. I am sure I have covered all but if I missed any don’t hesitate to add.

Categories
Real Estate

“100% of 0 rather than 50% of 200 K”​

This is very common mistake which Realtors® make on daily basis. Sometimes we fail to understand a basic calculation. Sorry I shouldn’t say fail to understand, I would rather say, we don’t even do that calculations. It could be just a matter of ignorance of facts.

Let’s have some eye opener today and ask a question to yourself. If given an option, would you choose 100% of 50,000 or 50% of 200,000? I think it’s very complicated to understand and I made you confused. You might be thinking why I said it’s very complicated to understand where as it’s a very simple calculations.

The simple reason that why this simple calculation is complicated because in this calculation our human nature comes in between. As it’s a common thought process that we are not much concerned about what we are making, our more concern is what others are taking. And this too we do without understanding the complexity of business.

Last time I wrote an article about the myth for 50/50 split and I clearly mentioned it’s not a split, it’s rather an expense sharing model.

Now let me throw a challenge for those Realtors® who are in business for almost 5 years or more. Please pick up your last 5 years income and do some simple calculations. Count all your expense which you have incurred to generate and complete that business. Please count advertisement , staging , sign boards , flyers , lock boxes , cash back , office split , office expense, manpower of your family , printing , stationary and so on . You will find you were left with almost 40% of what you have earned in total, 60% is your expenses. On top you have to make investment from your pocket for many things like staging, Sign Boards, ad and so on. Just imagine that someone has taken those troubles from you and have established an economy of scale model by negotiating the best deals based on volume and passing those benefits to you by bringing your cost down by another 10% and also taking the risk of spending money on his own. Isn’t it justifiable to have a 50/50 Expense sharing model. I can understand that there might be some exception of those people who are really not doing anything in terms of the ad or other expense. But did you ever realize that how much money you are losing by not earning up to your full potential in absence of proper mentorship.

I have come across hundreds of Realtors® who are successful but just working like Realtors® from last 5 to 10 years. They are making good money but did you ever think what will happen when you are not there. Their business is totally dependent upon their presence. If they are out, their business is zero. The agony of situation is they have no proper guidance to build a system in their so called big name brokerage. If their big name brokerages build a system for them, their own business model will fail. As their model is to hire more and more people, take out monthly fees, keep them under the false influence of their brand name which merely gets them any business.

It’s time to give a wake-up call and make some calculations. Stop seeing what gross you are making, calculate your expense and see what you are getting. But more important than that also see what is the future scope of building your system which should work for you in your absence. Just do a small

Experiment and leave your business for 1 month and see how much you can earn without your presence, you will realize what I am talking.

Friends, I have been in business for little more than a decade and understood the real challenges of the industry. I overcome those challenges for my people and build systems for them which keep working day and night without too much involvement. We have created success for many and our business model Fits all, either it’s a new Realtor® or someone who wants to build his team. Also for those who has high aspirations to become entrepreneurs and also for those who just want to incorporate for tax savings.

Think twice, if you have been in a system more than 5 years and don’t see any future growth, give it a thought and it might change your life.

Want to become a Realtor®, JOIN ANY BROKERAGE

Want to become an entrepreneur, JOIN SAVE MAX

Would Love to have other Realtor® friends comments on it ……

Categories
Real Estate

Pre-Construction vs Resale “What’s the best Investment”

One of the biggest dilemmas in today’s Real Estate market is whether I should buy a pre-construction or a Resale? This question is more relevant to investors rather than end-users. As of end-users, it’s a very clear and defined requirement but when you are an investor than the flexibility is more as the decision is based on the return on investment not based on the personal requirements of the property.

There is a famous saying “One shoe doesn’t fit all “, the same way it works in the Real Estate. It all depends upon the individual as every person has a different situation and his way of functioning is different. Pre-construction or Resale for an investor is a big debatable topic and both have its pros and cons. We need to do a deep dive into investor’s portfolio, his appetite of risk, availability of funds, retaining power, and long term & short term goal of investments.

As per the latest reports, Toronto’s new condos market soared at a rate of 33% and the resale housing market all across GTA has gone up by 15.4% as far as sales are concerned. At this point, there are limited options for the buyers or investors as the inventory levels are really low which is keeping the pace of the market in an upward direction.

Now let’s take our attention to the real topic, Pre-construction vs. Resale. Based on my experience of selling thousands of pre-construction and resale homes and condos, I will share my advice with you. If you feel more inclined towards pre-construction then buying a high rise or condos is a good idea but you have to be a little thoughtful about the location and market dynamics in the area in which you are buying. When it comes to resale, it’s always a good option to buy a small house for an investment purpose. Both Resale and Pre-construction has its pros and cons.

RESALE

Advantages:

1. you immediately get the possession within a few weeks.

2. You can start making rental income immediately.

3. You can physically see the house.

4. You are not worried about the cancellation of the project as you get your ownership faster

5. It’s easy to resell as there are not many restrictions.

6. You can always get a double dwelling unit in resale for extra rental income.

7. You can get the refinance after some time and can utilize the money for further investment

Disadvantages:

1. Your mortgage payments start immediately after the closing

2. You have to take the trouble to manage tenant

3. House might need some repair and maintenance

4. All the down payment goes almost one time

5. No leverage of time and money.

PRE CONSTRUCTION

Advantages:

1. Leverage of time and money.

2. The down payment goes in parts.

3. No mortgage required immediately.

4. Opportunity to sell on assignment.

5. You get possession after a few years and by the time your property is appreciating.

6. No hassles of tenants until possession of the property.

7. No maintenance required until possession and least maintenance after possession as it’s new.

Disadvantages

1. You are buying the property on papers only.

2. Fear of cancellation of the project as it’s a long gap between purchase and closing.

3. The mortgage rate might change by the time when you get possession.

4. No rental income until possession.

5. over the competition at the time of possession as many units come together in the market.

6. Many things depend on the builder in purchase so you have less control over the situation.

7. Market conditions might change.

8. Permit and other regulatory requirements for the builder.

I can very well understand that it’s not an easy decision even for a seasoned investor to identify the right investment among so many available, that’s why I strongly recommend taking expert advice on the matter. Either it’s pre-construction or resale, it’s a very big decision and you want to make sure to do it right.

In case you are looking for a no-obligation one-hour session about How to build your Real Estate portfolio, please contact Save Max and we will steer you in the right direction towards achieving your goal of Real Estate investments.

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