RE/Max

Transcription

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2 JAMES KNULL

3 PART 1: Understanding Suited Houses PART 2: Cornerstones Grant Update PART 3: Buying Unsuited Houses to Renovate PART 4: Landlording Suited Houses for Success.

4 Illegal = Non-Conforming = No Permits

5 Proper Zoning Conforms to Fire Safety code Conforms to Building Safety code

6 Zoning Requirements

7 Zoning Requirements

8 Window dimensions ½ Inch drywall throughout suite Smoke detectors Basement ceiling height 77 inches

9 Electrical inspection Hand rails Stair risers Separate egress

10 Sufficient parking spots Minimum lot size Mold/Foundation issues Number of furnaces

11 Approximately 15,000 illegal suites in Edmonton No penalty for not volunteering to permit

12 You volunteer / apply for permits Complaint by neighbor Complaint by tenant

13 Step 1 - Development Permit Step 2 - Property Evaluation Step 3 - Evaluation Letter

14 Step 4 - Building Permit Cornerstones : Apply at this point Step 4a: Complete the work Step 5 - Safety Re inspection

15 Step 6 - Compliance Letter Cornerstones Money Issued

16 Timeline: Spring Available grants for pre-existing/year

17 CHANGES from Cornerstones 1 Flat rate per repair item City to cover only 50% of renovation cost instead of 75% Maximum grant funding of $20,000 per until down from $24,000 Unit tied into affordable housing requirements for 10 years, up from 5 Only 2 grants per applicant per year changed from unlimited.

18 Goal: pay the same price for house + renovations as you would pay for finished suited house Bonus: Add extra value to the property and realize some sweat equity

19 Crunching the Numbers Item Cost House Purchase $330,000 Basement Renovation $60,000 Total Cost $390,000 Final Value $420,000 Equity Gain $30,000

20 Strategy 1: Improvements Plus Mortgage Strategy 2: Line of Credit then Refinance Final value $420,000 80% LTV = $85,000 equity in property Able to pull 80% of 30K out, $24,000

21 Checklist for Target house Double Garage 1100sf+ Unfinished basement Newer windows, furnace, shingles Separate entrance Well located furnace room

22 Checklist for Renovation Legal suite 2 furnaces 3BR Basement Suite Quality finishing Lots of light Separate laundry Sound insulation

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24 Old Method: Utilities Agreement Utilities un upper name Upper collects from lower

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26 Flat Fee included in Lease 3BR Upper: BR Upper: BR Lower: BR Lower:

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28 Old Method: 1 time Pet Fee or Pet Deposit No pets allowed!

29 Flat fee per month for pets $50 per pet first pet $30 for each additional pet

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37 Work Schedule Kids / Bedtime Typical Weekend Yard Usage Parking Needs Lifestyle Ask Extra Questions When Screening!

38 Rental History Work History Facebook Credit Check Gut Feel

39 Ask questions before you book showings What would your references say? Why are you moving? How do you plan to pay the rent? How long were you at your last place? Tell me your story

40 Tenant Dominate Buying Motives 1: Curb Appeal 2: Secure Feel 3: First impression walking door

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46 Fun headlines Unique incentives Sell benefits Open house showings

47 Start selling over the phone Sell yourself as a landlord Have them come ready to make a decision

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49 Have them sign non-refundable Give them a receipt Inform them Via they re approved

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