Omenica is a beautiful looking property. New siding. New roof. New hardwood flooring throughout. Heated bathroom tile. Walk-in shower with 9 spray heads and a rain shower head. Free-standing clawfoot soaker tub. New carpet in the bedrooms. New drop-ceiling with mouldings throughout all main living areas (including the attic hatch). Newer windows. New kitchen cabinets, countertops, floors and backsplash. New doors. On top of the cosmetics, the numbers looked great both from a cashflow perspective as well as from a future-value perspective.
We've been investing into Real-Estate for well over a decade and in that time, have navigated our way through the acquisition and resale of dozens of properties, worked with management companies across the country, self-managed properties, hired and managed countless maintenance crews, navigated our way through legal and bylaw compliance issues and worked with dozens of law firms and most importantly, we've "run the numbers"on hundreds upon hundreds of properties. We've seen the right way to manage a Real-Estate portfolio, and we've seen the many mistakes that are often made. We employ our best-practices every single day to avoid what—to us—are obvious mistakes. Here is an example of that paying off:
One of the final pieces with any property acquisition of ours is a quality home inspection—not to be mixed up with any home inspection. A home inspection may seem obvious to most however the reality is, most spare the expense or rely on unqualified inspectors such as their Realtor and even if they do hire one, most assume they're all the same—we know better. As part of our process, we seek referrals, meet with, and analyze every option before we make a decision. We chose to expand our Inspection search outside of Kitimat and Terrace as we weren't happy with the options that were available within a 40-minute drive of the property. In the end, we decided to bring an inspector in from 4-hours away (on our dime) to ensure a quality report.
Our due diligence process is what separates us from the rest. Omenica seemed like a great property and 9 out of 10 of our systems said it was a great fit for an investment. Due to our detailed approach in our Property Evaluation step, we were able to detect hidden long-term issues that would have undoubtably affected both the operation of the property in the short-term and the resale-ability of the property in the long-term.
While in Kitimat back in December, we met with key political figures including the Mayor of Kitimat, the Economic Development team as well as the District Manager. This was all after doing extensive market research, market comparisons, and closely following both general and investment news feeds. A final component to our Market Evaluation phase is to determine if long-term growth potential is strong enough in addition to cashflow calculations to determine the feasibility of carrying the investment over the short-term.
Today there are roughly 80 properties on the market in Kitimat. This includes commercial in addition to land. We visited over 20 of these while on the ground and have evaluated over 35 in total. Of these properties, we have entertained or made offers on over 20 and have folded on a handful due to various reasons. Our property evaluation process involves our review from a financial, cosmetic, rental market, and structural perspective but also involves feedback from our team on the ground which includes a Realtor, Home Inspector, Appraiser, Insurers, as well as the Management and Maintenance team.
One of the most important components to any investment is the people that run it for you. This is why we're here, and this is why we put extensive time and resources into evaluating multiple Management companies, Realtors, Insurers, Home Inspectors, and many more. In the short time we've been pursuing Kitimat, we have spent well over 100 hours evaluating and interviewing the options in addition to investing our resources into having some of the properties we have folded on, evaluated by these teams.
The End Result.
Our pursuit of the right market, the right properties, and the right people is what we believe is the key to success. If you'd like to get involved today, just reply to this message and we'll be in touch with you to discuss what opportunities we currently have that would be a good fit for your investment goals.