An Inside Look at a Deal I just Closed Today

When reading this newsletter, I think it’s essential for you to get an inside look at what we are doing when it comes to investing. I’m not suggesting you do what we do; I think it’s helpful education to see what is going on.

My apologies for the late release of this newsletter and podcast. I wanted to be sure the deal had closed before I released them. IT HAS CLOSED!

So, I get excited when doing deals. Here are the steps I took, with the detailed explanations at the podcast just dropped.

1. I’m always hunting for investments. I found this one after looking at the land surrounding Cape Breton University for about 3 years before I found this one.

2. It’s 10 acres of land, mostly forest, in a residential area about three football fields from Cape Breton University.

3. The university has a student population of 7,000 students, 77% of whom are international.

4. There is no purpose-built off-campus student housing.

5. Some students live in Halifax and are bussed in for classes. This trip takes about 3.5 hours each way. There is no student housing period to meet the demand.

6. The property was first listed for $99,999; we purchased it for $77,018. This included all fees and the conservative-communist 5% transfer tax because we are considered “outsiders”. Because our principal residence is in Ontario, we are considered foreign buyers in Nova Scotia.

7. It had been on the market for just 40 days at the current price of $79,000, but in 2010, it was on the market for some 2 years at $99,999 with no buyers. The owner lived in France and did not appear to have much interest in the property.

8. In reviewing the land's topography, it was some 49 meters above sea level.

9. I started at $55,000 and did a firm and final at $70,000, which they accepted.

10. I could waive the condition that I had it inspected and that it was favourable to me; otherwise, I could walk within 30 days.

11. I consulted with my expert in zoning and development, who provided the steps needed to turn it into many building lots. Sewer lines ran by the property but not water lines. It's not the best, but it's better than needing septic’s.

12. I consulted with my attorney, who indicated no issues.

13. I listened to my gut, which told me this was a fantastic deal. I waived the conditions and closed today.

14. I have contacted survey firms to quote me on the cost of splitting the property into two five-acre lots. One lot would be sold ($99,999), and the other would be held for a long time.

15. But then the Government announced on Friday that Universities in Nova Scotia would need to provide at least 15% housing to students, or they would lose funding. Cape Breton is one of the worst at just 5% student housing. They will lose 2 million dollars annually if they don’t hit that 15% by October 2025. Perhaps this is another opportunity?

16. I will also investigate hipcamp.com to provide one RV parking spot on the remaining 5-acre parcel.

To learn more about this or other topics, subscribe to my podcast on iTunes or wherever you get yours.

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