Professional Toronto Real Estate Investors use this one single method to decide which condos they should invest in, and more importantly, which not to buy!
#1 Secret of Professional Real Estate Investors
After nearly two decades of investing myself, and working with hundreds of investors, it is now clear to me that there is one, most important factor, that determines the success of any Toronto Real Estate investment.
This factor cannot be measured using analytics. It cannot be charted. It cannot be calculated by an algorithm. To get this factor, you need:
- Human Intelligence
- Understanding of the Current Market
- Understanding of the Social Environment
- Understanding Locations and how Cities are Growing
- Comparing of past, current and present investments
So what is this one most important factor?
It is…: VALUE.
What is Value?
Value is a non-defined and measurable factor. Value does not have exact system to be tracked, but it can be used. What do I mean?
When facts and human intelligence meet, we get understanding of value. It can be presented in many ways, but it is not immediately visible.
How to think about values?
- The lowest price is not always the best – but an be
- The highest floor and best views may not always give best value – but could
- A certain location can be fantastic – but sometimes not
- A certain size or unit design may be “the best” – yet provide little value
How and Where to Find Value?
Value is the culmination of various aspects – that combine to a point of which professional investors can say: “yes, that’s the one!”.
Although each investors may be looking for a different Toronto condo to invest in, they all seek these common elements:
- Low barrier to entry (low deposit, easy acquisition)
- Low risk (high assurity of success)
- High Return
- Stable investment, no surprises
- Positive cashflow
- Stability & Longevity
In essence, pro investors look for those Real Estate investmetns that are safe, easy and profitable. They need not be the *most* profitable or the *best*… they simply need put the investor at ease, to the point that value pops out of the picture, and as clear as sunny day’s sky.
In this video below, Yossi further explains how to find value when investing:
The Three L’s of Investing
Value can be found in many ways. Value may be subjective, yet, we, professional investors, seem to have an understanding of “what is good value”. We may not be investing in the same projects or even unit types, but once value is uncovered, it pops out, you can clearly see it.