Happy Good Friday Everyone! We have some very exciting news today. Read on for details!
Have you ever heard someone say “you make your money when you buy, not when you sell”? In real estate, we see examples of this all the time and when it comes to bulk deals, we couldn’t agree more. Like anyone, we’re lovers of a good deal. Afterall, our love for a good deal is in many ways how we got started at Condo Culture. For those of you who may not know, one of the early turning points of our company was when our two founders, Jeff & Scott, approached a developer in early 2010 and negotiated a deal to buy two pre-construction condo units in a new local high-rise condo. Pre-construction condo investing locally was in its infancy at the time but the guys loved the building, were passionate about the potential of the area and felt units in the building represented a fantastic deal. Before they knew it, they each had a couple friends and family members that were interested in buying too. Two units became four and four became six. When it was all said and done they and a group of 10+ others who all wanted to buy and they quickly realized that the more buyers they had in the group, the better the deal they could negotiate for everyone.
Since then, our group of investors has grown, our team has grown, and our bulk deals have grown signifiantly too which has given us the ability to negotiate even deeper discounts on behalf of clients in our investment group. We’re also always looking for new investors with a passion for condo investing to join our group and participate in these bulk purchase opportunities to help make the group and the opportunities even stronger. So for those of you who have purchased with us through one of our bulk deals in the past, are looking at buying your first investment property or who have just recently discovered us and haven’t joined us yet in a bulk deal, we have something very exciting for you and you’re about to hear it here first!
Next Wednesday, our team is launching a new bulk purchase opportunity that is exclusive to Condo Culture investors, could be one of our best yet and we want you to join us in satisfying our mutual love for a good deal. Yep, we’re buying in this one too. You didn’t actually think we’d pass up a good deal did you? :)
To protect the opportunity and ensure we can continue to deliver great bulk deal opportunities like this one, the location and details of the bulk deal will remain confidential to only those of you who have expressed interest in participating.
You can express your interest by simply replying to this email with your first name, last name and phone number and we’ll reach back out with further details and next steps.
For those of you new to bulk deals or unfamiliar with how they work, here’s a quick Bulk Deal 101 and a few tips:
What is a bulk deal?
Generally, a bulk deal is an organized purchase of a large number of properties within a short period of time with the goal of leveraging a high volume of sales to negotiate a discount off the purchase price. In our experience, discounts are significant and often extend into the tens of thousands of dollars. Bulk deals may also include further incentives such as preferred deposit structures or other inducements not typically available on the open market but the basis of these types of deals are typically focused on direct and sizable reductions in purchase price. Most of our bulk deals have been focused on new condominiums in the pre-construction market.
How is it possible?
Developers carry risk and face significant costs in developing a new condominium project. For many, time is money and generally the longer it takes to sell, the more it costs and the higher the risk. By significantly reducing the amount of time it would take to sell the same number of units, developers are able to reduce things like carrying costs, interest costs, and thousands of dollars in marketing expenses that they would otherwise incur. We leverage these savings and the momentum gained in a project through the faster sale of units to negotiate deep discounts and incentives for our investors.
What’s the catch?
In a good bulk deal, there is no “catch”. However, given that part of the value to the developer is they are able to sell a number of units quickly, it is sometimes necessary for bulk deal buyers to be able to act within a shorter time-frame than may be the case for properties in the regular market.
What should I look out for?
Not all bulk deals are created equal. Regardless of how the opportunity is advertised or presented, it’s important to not just focus on the discount offered but also the net purchase price, where the market is headed and how comparable units in market stack up. Purchasing a real estate investment is exciting and it can be even more so when you feel like you’ve found a great opportunity so always remember to keep true to your goals, get an expert on your side, and base your decision on reliable market data and intel to ensure you’re making an investment based on solid fundamentals.
Interested in participating in our next bulk deal and saving thousands off your next condo investment? Reply to this week’s email with your first name, last name and phone number and we’ll ensure you’re in the loop and have everything you need to make an informed decision. Enjoy the long weekend! -CC
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