what is up you guys Matt McKeever here
with Damon again we're in Winnipeg and
we're gonna be checking out another flip
he's done on another it looks like
single-family home single-family home
there all right let's check it out so
this is another place another
single-family home this neighborhood is
called
East Fort Garry the one we were in
earlier was Weston so East Fort Garry
this is a really nice zone it's one of
the nicer zones as far as things moving
that kind of thing everything sells
pretty quick in the song so a very
desirable spot to be you know if you're
looking to pick up a place like this or
even if you're gonna rent it so super
good zone nothing super fancy in here
this is another this one's a 2-bedroom
1-bath it's fairly small it's only about
750 square feet but the location is
really really nice so we decided to do a
little bit of work in here this is kind
of just like the entrance room but we
still threw down some laminate in here
and cleaned it up so it does look pretty
nice as soon as you do walk into the
place
we did have some staging and stuff so
this place is sold now so it's gonna be
gone here and within the next week or so
I think the possession for that is on
April 2nd so it'll be gone pretty soon
we did just have all the staging in here
we just removed in the last two days but
so we'll post up some pictures of what
it looked like with all the staging so
it looked really really nice with that
their properties yeah so we do staged
them all other than my very first
property is my first deal I didn't stage
but since then I've always staged I
highly recommended if you are flipping
houses if you are doing this kind of
thing definitely worth of a little bit
of money to stage it up cells a little
bit faster the pictures on the listings
look much nicer that kind of thing
yeah so we picked this place up we we
actually bought this one off the
wholesaler so we picked it up for a
hundred and thirty-five thousand paid
about five grand for the fee so about
140 put about forty into it and we were
hoping to get to fifty but at the end of
the day we were looking to get about 239
so a little bit lower than what we were
hoping for but the market is a little
bit soft so it's gone now although 239
were still making some money 239 is it
just yeah so there was a few things one
of them in in my opinion one of the
reasons we didn't quite get the the
price point that we were after was the
the curb appeal is not the best so the
color choice on the front of the house I
think we could have swatched us walked
over the color maybe something a little
bit darker make it a little bit maybe
pop a little bit more from the street so
that was one of the main things there
was also one issue kind of outside there
was a little bit of bulging somewhere
it's not anything structural at all but
for the buyers that have a lot of
options sometimes that might something
like that made Tudor them if there is
quite if I'm not quite sure about sort
of what it is so it's really not a huge
issue but I think that played another
factor so it's at around on the market
for a little while took a few months for
us to get rid of this thing so I think
those were the two main factors the
other thing in the basement we didn't do
we decided not to finish the basement
the closest comparables in this area the
basements weren't completely finished so
we did the vapor barrier some new
insulation but it's really not a
finished space down there so if we would
have spent another 10k down there we
probably would have got that the
remainder of the 10k that we wanted the
250 so a few things there but I'm still
I'm still fairly happy with the 239
price point that we're getting but if I
could do it again I would have spent a
little bit more time paid a bit more
attention to the curb appeal and then it
might have been worth throwing another 5
or 10 grand down on the basement to
raise it up just that a little bit to
get the 250 point there and so was this
for plan essentially
in place or did you change so we changed
it so we actually this used to be a
bathroom where the kitchen is here now
so there was a wall here so we smashed
out the wall
we took the kitchen the kitchen used to
be back there so we moved the kitchen to
the front of the house just to make it a
little bit nicer the layout when you
walk in you can see the kitchen and a
living room made that kind of open
layout so we got rid of the wall moved
the bathroom back there and that was the
main thing the main thing that we
changed was we didn't rearrange the
layout a little bit there yeah yeah it's
pretty nice and I did this property with
a joint venture partner so he was the
one that was doing more of the
renovations he did a lot more planning I
actually we purchased this property when
I was still in Vancouver right before I
moved out here so when I purchased this
property it was sight unseen for me my
joint venture partner he was the one
that found the deal he'd been in here
he'd screened that he was one that did
all the due diligence and you know he
was looking to raise the capital so he
called me said he found a really nice
deal in a really nice area so I actually
didn't even use my own capital I raised
the capital from somebody else that a
really low rate so it kind of broke her
the deal you know raised the money we
did a bit of a profit split with that
investor and you know I still made it
quite a bit of money from it and I
didn't really have to do any of the
renovation so it was kind of a nice way
to do it once you do learn how to raise
capital you know you can do some pretty
cool things afterwards so do you mind
sharing with the audience maybe just
your experience or any tips when dealing
with the wholesaler yeah so me
personally I really enjoy working with
wholesalers I bought two properties now
my last not the last one so two out of
my last three I bought from wholesalers
and it's just really nice you just want
to make sure that they're maybe familiar
with the area
maybe they have you still want to do
your own due diligence I find a lot of
the wholesalers they don't really know
like the renovation numbers are kind of
a little out of whack sometimes so it's
good to really check their numbers but
one of my favorite things to do is to
buy off wholesalers because they do a
lot of the work you know they're running
around they find the deal they packaged
it up nice for you and then by the time
you get it as long as the numbers make
since you can just pay them a bit of a
fee there and take the deal from them so
I really enjoy it if you're willing to
please share but if not maybe just high
level explain for people when you hang
up a joint venture and how people decide
on the split on this one or how do you
connect splits on other joint ventures
you do yeah so I do a few different
things now so I'm doing RRSP mortgages
using people's RRSPs registering those
as mortgages on properties and those I
really like because it's it's fairly
cheap money to use you can pay them nice
returns you know much more than they're
getting from their current RSP but
you're not really breaking the bank
yourself so you're not overpaying for
the capital which I really enjoy I've
done the preferred returns when I just
pay them a certain fixed rate as a
preferred return annually I've also done
and I'm still doing profit splitting
different scenarios for profit splitting
I've done 50/50 s I've done me 60 then
40 I've done a few different things that
way so it's a little more expensive when
you are doing the profit splitting but
it's nice because you can see you're
sort of overpaying the investors that
makes them want to keep reinvesting
especially when you're just starting out
it's it never hurts to overpay a little
bit for the capital create those
relationships and then they come back
and they invest with you over and over
again so that's something that I really
do enjoy the way that we structured this
one as we just I raised the capital very
cheap it was about 7% preferred return
annually and then I lent it in on this
deal did a 50/50 split on this deal so I
still made a decent amount of money at
the end of the day and that's sort of
how I structured this one here so I sort
of brokered the deal I wasn't really the
money partner I wasn't really the
working partner but my joint venture
partner he's the one that did the flip
per se dealt with the contractors he did
a lot of the design choices I played a
some part of it but he did the majority
of the stuff with that so any tips for
people that are maybe thinking about
trying to get joint venture partner to
invest in a property they never see
before so how do you get like how big
your joint venture partner get you
comfortable with the idea right I was
leak never seen so one of the things
that made me comfortable is I knew my
joint venture partner fairly well I knew
that like I know a lot of the people in
his network I knew where he got the deal
from and they're all people that I
already have a fairly trusting
relationship with so that made it made
it a little more comfortable for me to
be able to do that sight unseen
I still checked all the numbers myself
as well I ran my own comps I did all
these things I checked up the rental
budget so I still did my own due
diligence but knowing who I was
partnering with knowing the wholesaler
that we got the deal from and like his
organization just that alone made me
feel fairly comfortable doing it without
seeing the house and then after I did my
own numbers there was a little wiggle
room there we budgeted for it just in
case we have to discount the property
for whatever reason we factored some of
that stuff into the budget so overall
after I took a look at it I was pretty
confident to pick this property up
without ever seeing it because my
partner did see it so yeah so if you
don't mind maybe just talk us through
more some tips or tricks on how to sell
your property or marketing materials or
having find the right realtor definitely
well there's a lot of different kinds of
realtor's out there there's some that
are really good with listing like the
retail realtor's are good at getting it
sold there's all the realtor's that are
really good at like if you're looking to
buy distressed assets or like really
cheap properties that can grind out and
do like lowball offers there's all these
types all these various types of
realtor's so when I'm gonna list a
property what I like to do is I like to
make sure that they're very familiar
with listing they have lots of listings
on going on currently they're really
good at marketing like I usually want to
see a marketing strategy from them of
what do they plan to do over and above
just putting the property onto the MLS
to make me feel confident they're gonna
be able to find a buyer some of them
will just put it on MLS they maybe do
like one open house and that's about it
so I want to make sure they're doing
multiple open houses you know like one
every weekend for the first at least a
few first few weekends I want them to be
doing their own marketing some social
media marketing and I want to see a plan
in place before I sign the listing
agreement with them to make sure that
they have something in mind for that and
make it sort of convince me
they're the the person that should be
listing it I like it when they do some
decent marketing materials that kind of
thing so they have you know thinks that
give to people that are very high
quality nice maybe type some type of
Flyers that kind of thing but the main
things is multiple open houses and do
some of their own private marketing
that's usually what I look for when I'm
gonna pick a listing agent Oh nice
little kitchen in here my joint venture
partners name's Ian Strucker he did a
really good job at picking all the stuff
there like the layout and everything he
did a really good job just in general
with this property so you know you know
props to him he's a he's a powerhouse
he's doing lots of really great things
right now as well mr. Ian Strucker so
very happy with how that all turned out
this is the bathroom that was moved here
it was where the kitchen was I think I
mentioned before so nice job you know
this is just a it is a starter home here
to bed one bath so it's the the material
that he picked was perfect for what
we're trying to do with the property
here a little bit of spa a little bit
more space back here we did have it
staged as like sort of a little office
area back here just to use a lot utilize
some of the open space so we did have a
desk here a few other things and some
other pictures and that kind of thing
hanging so the hookups were the
washer/dryer back here but essentially
this is the old kitchen was yeah the old
kitchen originally was back here towards
the back of the house so it was kind of
a funny layout it was fairly simple to
move all that stuff around but now it
looks much nicer the layouts away nicer
now so and then just behind you here
Matt we have the secondary bedroom I'm
kind of just into here so not the not
the biggest rooms in this place but
again this place is only about 700 725
square feet I think it is here so you
know you can't really expect a whole lot
when you're buying something that size
but for this area this is a perfect
little starter home for a couple maybe a
couple with one one child maybe or even
just a couple with no kids even this
with
perfect for that super good location
nice size for like an office room back
here or a bedroom and depending on what
they do with it but yeah just overall
it's a really nice starter home here in
East Fort Garry so it was fairly banged
up down here we didn't do a whole lot
there was quite a lot of space you can
sort of see now if we would have spent a
little bit of money developing this area
a little more we probably would have got
the 254 but it would have cost us that
same ten or twelve grand to do that so
you know maybe it would have been worth
it maybe not so much just the new
insulation vapor barrier down here we
used to refer or guess we still do refer
to this property as the sewage house we
have to bust up a bunch of the cement
down here because one of the sewage
lines underneath was all broken up and
burst apart so we had sewage leaking up
so what was quite the mess but that was
something that we knew about before we
died didn't really know the extent of
what we have to do for the work but we
did know there was issues down here and
we were gonna have to do some work down
here luckily it didn't cost too much
more than we were anticipating but we
definitely had to burst bust some of the
stuff up down here find that line and
patch that one line we brought
contractors through you know we had
pretty pretty nice quotes we had
multiple contractors come through we had
multiple quotes so we had a pretty good
idea of what this place was gonna cost
to fix before we got into the project
but at the end of the day same with this
one we had a pretty big slush fund
because there was a few variables that
we weren't quite sure about one of them
being the stuff that we have to do down
here for the sewage line so we did I
believe we use all of our contingency
fund so again very very important always
have a contingency fund we had a little
bit more than 10% on this one and we did
go over by over 10 percent of our what
we initially thought so you know we were
safe we had the contingency fund in
place but definitely always have one if
you are doing any flipping because there
is things that can come out of the
woodwork you know maybe up the bust up a
floor maybe you'll open up a wall and
it's all kind of messed up in there so
definitely put some money aside for a
slush for that that was awesome thank
you so much Damon Woodward for
showing us around Winnipeg letting us
check out another one of your active
projects really appreciated in fact we
really appreciate all of the Winnipeg
crew that lets us check out Winnipeg and
showed us their projects if you guys
haven't seen the other videos we have a
ton of videos from different Winnipeg
real estate investors and we check out
all sorts of projects so we check out
some vine holds a lot of flips and they
kind of break down for us just their
different strategies tactics all that
great stuff about what they're doing and
Winnipeg Manitoba and when it pictures
one of the cities we want to head up I'd
love to hit up every single city in
North America eventually why not the
world so leave a comment on this video
let us know what market you're in what
you're up to and maybe we can find it
time to come out and visit you until
next time remember making mine is a team
sport there's more than that money in
this world for us to all make it but if
you're not saving it I mean like what's
the point thanks guys
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