David and David on Real Estate

Body:

- With the market continuing to shift, we are seeing buyers change their mind when submitting firm offers.

- What does signing under seal mean? Where did signing under seal originate?

- Would the signature mean something different if it wasn’t signed under seal?

- If a buyer signs under seal, can the offer be revoked before the irrevocability time/date? what if the offer is conditional?

- When I first got my real estate licence, 14 years ago, I had the privilege of being mentored by a 2nd generation, and uber successful broker/owner in a small brokerage firm in Toronto

- I was his personal driver for the first 8 months

- 8 months gave me a 10 year head start in my real estate career

- business and sales are a century old profession, and its always easier to learn from other successful professionals as opposed to reinventing the wheel

- when the opportunity presented itself to own Sutton Summit realty, I was eager to jump onboard and give back, what was once given to me by my mentor

- mentorship creates a culture within the organization that is very powerful

- Mentors will come and go from your life, and you should recognize where their strengths and weaknesses lie

- I have 3 mentors in my life:

Matthew Stock

Raymond Reichert

Shawn Sheikh

- being a mentor to someone in your life is equally important.

- I often caution agents, that having someone at the management level that can be a mentor to them will most likely be a key differentiating factor in their career

Body:

- Quick stories: buyer walking away from firm offer, conclusion, our agent resold the property for 20k more to a different buyer

- Consistency in training brings big results - talk about table tennis

- you see Professional tennis players practice before a match

- you see Professional NBA players mimic a free-throw before taking the actual shot

- Atomic Habits - small consistent changes over time add up to big results

- My boxing coach, Dewith Fraser, was telling me that he gets calls about people who have never boxed in their life wanting to go to the Olympics. Do these people not realize the LIFE sacrifice that boxers make, train, eat sleep and breathe sport for decades before they are invited to the Olympics

- Anyone good at their craft makes it look easy, but it looks easy because of the blood, sweat and tears that the professional put in, all we see is the tip of the iceberg

- Hiring tip: hire people that was been practicing competitive sports, these are great team players, with great work ethic, and know how to handle pressure environments

- build culture

- Culture is the biggest contributing factor when it comes to Summit’s competitive advantage

- Building a very open and transparent team - employees & agents

- abundant vs scarcity mentality

- Our mentorship program teaches agents to learn from each other and give back

- creates a unified environment that encourage collaboration instead of combative competitive environment most commission sales people are used to

- results are amazing. Team vs. 1. Our whole office works as a team, agents collaborate and help each other every step of the way.

Next week we will talk about Mentors. How powerful having a mentor is! and how mentors have shaped our current environment.

Market Update  (May 2021) 

Body:

- Quick stories: bad faith / good faith $100,000 deposit and buyer not being able to close on time

- Quick stories: buyer walking away from firm offer, offers on another property. Our agent cannot induce buyer to break contract

- Sales / promotion is the #1 job of any business owner or entrepreneur

- Part of being the best version of yourself is to invest into yourself spiritually, and physically

- to maintain good health, high energy, and stay fit

- From an early age, sports have always given me the discipline and focus to excel

- Talk about our respective sports history

- No I in team

- We are seeing how important team work is in the NBA. New York has 2 superstars, Irving and Durant and they are loosing regularly because of the weakness of the team

- Consistency in training brings big results - talk about table tennis

- you see Professional tennis players practice before a match

- you see Professional NBA players mimic a free-throw before taking the actual shot

- Atomic Habits - small consistent changes over time add up to big results

- My boxing coach, Dewith Fraser, was telling me that he gets calls about people who have never boxed in their life wanting to go to the Olympics. Do these people not realize the LIFE sacrifice that boxers make, train, eat sleep and breathe sport for decades before they are invited to the Olympics

- Anyone good at their craft makes it look easy, but it looks easy because of the blood, sweat and tears that the professional put in, all we see is the tip of the iceberg

- Hiring tip: hire people that was been practicing competitive sports, these are great team players, with great work ethic, and know how to handle pressure environments

Market Update (May 2021) 

Body:

- If you are an end user, you have to focus on the fundamentals: Location, location, location

- as long as you buy well, and you see yourself in the house over the long term, you will do well

- certain pockets / neighbourhoods are always in demand no matter what

- more upscale neighbourhood, less motivation / necessity to fire sale if market shifts

- Low interest rates enable buyers to achieve their house goals in a more aggressive timeframe

- construction cost / land costs constantly increasing

- As an INVESTOR cashflow is king, important for house to carry over time

- use leverage to your advantage & have tenants pay off the mortgage

- multiple profit centres of real estate investing

- cashflow

- appreciation

- leverage

- mortgage pay down

- tax incentives

- In a typical investment property, assuming a 4% appreciation per year, and positive cashflow, you typically get 100% return on your investment in 4 years (return on your cash investment)

- Even if the market were to correct by 50% from the purchase price, as long as the property has a positive cashflow, over 25 years, you still get 400% return on your initial cash investment

- best time to buy real estate is YESTERDAY

Business motivation:

- As a business owner, I never want to spend my business income on lifestyle

- I always aim to re-invest in real estate, and live of passive income

- Passive income is income that I didn’t have to earn, and I feel better about spending it as opposed to business income, which is income that I had to work hard for

Body:

- If deposit is not dropped off is the deal automatically dead?

- Meaning of “time is of the essence”

- If an offer is signed on Saturday at 2pm, when does the deposit need to be dropped off?

- what happens if the deposit is received late?

- meaning of void and voidable

- does the deposit need to be certified / bank draft or can it be regular cheque

- If firm offer is accepted is buyer compelled to close? what happens is buyer changed their mind? what damages is the seller owed?

- if firm offer is accepted is seller compelled to close? what happens if seller changes their mind? what damages is the buyer owed?

- How secure is the brokerage’s trust account?

- What happens to trust funds if there is a dispute?

- What amount of deposit should a buyer be prepared to give?

- Does the size of deposit matter?

- How have courts ruled when market softened in 2017 and buyers breached their contracts?

- what can buyer expect from our court system for breaches during covid?

Market Update  (April 2021) 

Body:

- If deposit is not dropped off is the deal automatically dead?

- Meaning of “time is of the essence”

- If an offer is signed on Saturday at 2pm, when does the deposit need to be dropped off?

- what happens if the deposit is received late?

- meaning of void and voidable

- does the deposit need to be certified / bank draft or can it be regular cheque

- If firm offer is accepted is buyer compelled to close? what happens is buyer changed their mind? what damages is the seller owed?

- if firm offer is accepted is seller compelled to close? what happens if seller changes their mind? what damages is the buyer owed?

- How secure is the brokerage’s trust account?

- What happens to trust funds if there is a dispute?

- What amount of deposit should a buyer be prepared to give?

- Does the size of deposit matter?

- How have courts ruled when market softened in 2017 and buyers breached their contracts?

- what can buyer expect from our court system for breaches during covid?

Market Update   (April 2021) 

Body:

- what are buyers experiencing in the market

- timing is everything in real estate

- Home inspections

- Buyer acting in bad faith - provide recent example

- Seller options / withholding the deposit

- Different language to write home inspection conditions

- What if the house does not appraise

- Is buyer compelled to close

- what options do both parties have?

- what happens to the deposit

- is the listing brokerage compelled to do anything

- how long can the listing brokerage hold the deposit

- is the deposit held insured ? by whom? for how much?

Business development

- navigating through covid

- pivoting and adapting

- business development through covid

- trends in the marketplace

Market Update:

- Analysis of the current real estate market (David Gorski) Month over month analysis, avg. price, avg. days on the market, absorption rates (April 2021)

Body: Buyers & Multiple Offers

- What buyers are experiencing

- 5 tips that buyers can do to prepare before starting their house hunt

- 3 reasons why we are seeing multiple offers:

        - Low interest rates

        - Lack of inventory (historically always wrong time to sell, covid 19, tough to buy)

        - High demand (Canada has been rated as a top destination to live in the world, stable economy, immigration policy)

- Legal pitfalls of not including home inspection conditions

- Legal pitfalls of not including financing conditions

- What happens when there is a firm offer and the house does not appraise before closing

- Highest offer doesn’t always win …….  (stories from our perspective)