The Revival – January 2021 – Randall Reashore

Greetings Friends,

I just wanted to start 2021’s first Revival off with a quick personal note and let you know how grateful I am to know you.

I know 2020 was a challenging year for me and it has been a challenging year for so many. If you’re experiencing any challenges and need someone to talk to, I want you to know that I’m always just a phone call away.

My team and I are on the hunt for those in need this year as we love to give back. So, if you or anybody you know is in need, can you promise me that you’ll give me a call or text?

Beyond that, I want to wish you and your families a safe and happy 2021.

Congratulations to our buyer client on the above Peterborough purchase! They are moving quickly to build their rental property portfolio by closing on this cash-cow at the end of the month. Way to go for taking massive action!

Below I’ll outline the signals my clients and I are using to start 2021 strong and to hit the ground running this year…

So, on to the Meat of the Matter: Our monthly highlights of the market and random opinions!

Real Estate Market Insights:

TRREB STATS: In TO, we are not only seeing an incredible 11.2% increase in avg. sale price (YoY), but it is made even more impressive due to the fact that there were so many more listings this December than the same time last year (7,180 vs. 4,364) and houses are selling faster too! It’s wild to see, and not what the media would suggest, but not surprising when looking from the macro-perspective below.
We are in an incredibly low interest rate environment, which will extend a buyer’s budget and allow sellers to receive top dollar for their homes. Here is a market update by our partners at Streetwise Mortgages..
PKAR have just released their stats for December (Nearly 25% growth in avg. sale price in the last year!) The avg. price ($575,130) is still very accessible to many buyers The Peterborough market has a much lower purchase price than TO, has a strong need for more rental units and continues to grow. Congrats to all of our partners who are holding properties with us in this region: Good for you on taking action!
For my investor clients: Award winning investor, Quentin D’Souza has released a new book; The Action Taker’s Real Estate Investing Planner. It is a 2-in-1 learning resource and workbook to help you set/track your real estate goals. This is an invaluable resource for anyone looking to get organised and grow your real estate business.

“When people are free to do as they please, they usually imitate each other.”

― Eric Hoffer

Random Opinions:

One of our Peterborough joint venture projects just passed the 1 year anniversary mark on Dec 19, 2020. Earlier in the year we completed a $30K renovation to get this property nicely updated for our soon-to-be tenants.

Just before that anniversary milestone, we completed a refinance with our lender. Our new appraised value allowed us to remove all but $7,000 of our original downpayment and renovation capital.

This near perfect B.R.R.R.R still cashflows approx. $500/mnth, and we have our money ready for use in our newest duplex project, which we purchased last week!

This is why, we feel the BEST investment you can make is in strategic rental properties. Not only can you complete refinances like I noted above and redeploy your capital quickly (increasing your returns dramatically), but:

When purchased properly, they cashflow; cover their costs and pay you cash each month! Each one adds a stream of income for you when work is slow, you retire or your business is forced closed by the authorities.
The mortgages are being reduced by way of regular monthly payments and proper management. In this low interest rate environment, more of each payment goes towards the principal too.
For in demand markets with strong demographic fundamentals, like much of Southern Ontario, (or during massive QE) you may even get blessed with fantastic appreciation too.

If you would like to learn more about this strategy or to get in on our next deal, reach out ASAP.

Speaking of learning, for my agent friends out there (or anyone interested) in building wealth, stay on the look out for an upcoming initiative that I am part of with Keller Williams Neighbourhood Realty. As the Chair of the brokerage’s Growth Committee, we’ve set our goal to help average people add an extra stream of income in 2021.