PACK SOME PATIENCE FOR YOUR NEXT ADVENTURE
Hawaii, the grocery store and your next real estate purchase – what do they all have in common?
If you live in Alberta in December 2021, you WILL need some patience for all three of these “adventures.” Travel delays and conundrums are the norm during the holiday season. Throw in the wild card of Omicron, with a dash of lingering Delta, and the journey has the potential for above average challenges! Grocery store “trips” are a real thing these days: from the parking lot, to empty shelves, to frazzled shoppers and staff. It’s a little bit like many of us forgot how to behave in public!
But why would you want to pack patience into a real estate investors suitcase? Aren’t we all about efficiencies and overcoming obstacles? Well, yes and no. When it matters enough, we’ll always find a way to get a deal or a project done. But there are real challenges — and this is supposed to be the slow season for property purchases!
Many places across the country have a low supply of homes, apartments and even industrial space available to purchase. You might have all your “ducks in a row,” but it may still take time to find the right deal for you. Then when you find the ONE, the real line ups begin. The good realtors will always make time to serve their clients. Some lawyers are facing staffing challenges: the skilled conveyancers and assistants that they need are not easy to find. If you pass that gateway, many banks are still facing lengthy delays for approving and financing mortgages. There are a limited number of underwriters, who must approve every single deal; think of them as the border guards or airport security. Why haven’t the banks hired and/or trained more people in this role—that’s a bit beyond my pay grade! Once those hurdles have been passed, the lawyer will register you as the new owner. However, Alberta land titles is also still very backed up; as of today, they are registering documents received on September 27, 2021! (Title registration delays may or may not affect your purchase, depending on your strategy.)
Your investor suitcase is full of tools, and sometimes they are being used to literally renovate a property. Just in case you haven’t heard: supplies and labour are in high demand. For example, our plumbing supply store won’t be getting more cast iron pipe until June, maybe September – Yes, 2022! Luckily we work on residential projects, but some of the bigger players will be facing a big challenge. We’re being very careful to source items that are in stock and/or produced here in Alberta (like kitchen cabinets). And when we order something, we try to pick it up right away, so a “helpful” salesperson doesn’t give it to someone else.
To the best of my knowledge, none of us caused Covid. And I understand we’re all tired of the chaos. We believe most tradespeople are working hard these days, and most suppliers are trying to figure out a way to bring in the materials we all need. But to be clear, the delays we’re seeing on projects are “unprecendented.” Even a simple breakdown of a piece of machinery can cause an unexpected and lengthy delay trying to find and receive the replacement part. As investors, it’s of utmost importance to plan extra TIME into any purchase and/or renovation/build project.
Our motto for 2021 has been ‘keeping positive and keeping it real.’ Today is heavily weighted towards real. But just like a trip to Hawaii, if the destination is worth it, then it’s go time! Is your WHY big enough to brave the challenges of 2021-22? Investors with patience and perseverance are winning the game. Come join us on a journey to Financial Freedom.
