In this episode, Quentin talks with Aaron Moore, a multi award winning real estate investor who is best known for having one of the most established house-buying companies in Canada. Aaron takes us through what makes his real estate business successful.
Aaron Moore runs a company that is best known for house buying and wholesaling since 2008. He has flipped a lot of houses himself and built up a portfolio of rental properties over the year. Quentin adds that in the real estate space, people come and go all the time, there are people that they go to a workshop or the go to weekend boot camp, they come back they post signs, and then they disappear. Talking about what contributed to his longevity in the business, Aaron says that it boils down to work ethic and daily habits. He is a good longevity person, and when he makes goals, he sticks to them and achieves them.
On the subject of finding off market properties, Aaron says that he started offline, but since then, their methods have evolved. Being long term in this business, they've built a web presence, and now, online dominates their marketing. He adds that it acts like a credibility piece as well, and helps people find reviews from past sellers. There is always a trust component, as 95% of people are going to sell with a realtor or MLS. As a house buyer, people are going to be a little more skeptical, and we want to overcome that skepticism.
He adds that a unique thing for their company is that they have a strong seller focus, and they take care of their sellers, and treat them well. This sets you apart from everybody else. That is why they offer the biggest deposits and have the shortest conditions, because they are seller focused. Talking about the properties that they usually buy, he says that 80% of them are fixer uppers, with occasional beautiful houses. As investors, they can add value in different venues to the fixer uppers with their skills and renovations.
As for how to have a property assigned to you, Aaron says that you got to have that funding in place, and be confident like you got to put down a big deposit. He adds that when they buy, they put down a significant deposit. So, when they sell or wholesale a property, they are looking for a significant deposit that shows buyer’s seriousness and that they're not going to back out, and don't want to be closing late, as that can be a big deal. Talking about their ‘leads versus offers versus actual purchase’ statistics, Aaron shares that it's somewhere between 10 to 15, with slight ups and downs in numbers during different quarters.
Quentin adds that sometimes, just because you have a deal under contract doesn't mean that you're going to close on the deal. Aaron says that the reason behind this can be a case of buyer's remorse, where they change their mind offer signing the contract. Sometimes, there are also some deposit issues. They have made changes to their paperwork about deposits to deal with such issues. He says that you want to make sure everyone's happy. You don't want to be buying from someone who just does not want to sell to you and wants to make it difficult.
On the subject of the marketing costs, Quentin adds that new people to the space often mistake the amount of advertising and the amount of money that goes into this, because they only see the fee. They don't realize that the amount of other work that gets them to the point to have this opportunity. Aaron shares that advertising plays a crucial role in this business, and they have dedicated team for this job, with a six-figure budget to run the marketing campaigns.