AOF Real Estate Team Guide: Steps to Acquisition for New Construction Rentals in Edmonton

Investing in new construction rental properties in Edmonton can be an incredibly rewarding venture, but it requires careful planning and execution. At AOF Real Estate Team, we specialize in guiding real estate investors through this process, ensuring they make informed decisions that align with their financial goals. Here’s a step-by-step breakdown of the acquisition process for purchasing new construction rentals in Edmonton.

1. Discovery Call: Understanding Your Needs

The first step in any real estate investment journey is a discovery call. During this initial conversation, we get to know your investment goals, budget, and expectations. Whether you’re a first-time investor or an experienced buyer, this call helps us tailor our offerings to meet your specific needs. We discuss factors like desired return on investment (ROI), property type, location preferences, and any special considerations, such as timelines or financing needs.

2. Formulating Opportunities

After the discovery call, our team gets to work. We explore various projects that match your criteria, leveraging our extensive network of relationships with builders and developers. Our approach is not just about finding any property but identifying the one that best fits your goals. We take into consideration market feedback, floor plan efficiency, and long-term tenant satisfaction to ensure that the property offers sustainable value.

3. Presenting the Offering

Once we have identified potential projects, we present them to you. These offerings are carefully crafted, considering factors like market conditions, potential appreciation, and rental income. Our goal is to present opportunities that are not only profitable but also align with your investment strategy. We ensure that all aspects of the property, from floor plans to construction specifications, are designed to maximize tenant satisfaction and minimize maintenance issues.

4. Due Diligence and Verbal Commitment

After reviewing the offerings, you may choose to proceed with one of the options. At this stage, you’ll make a verbal commitment, typically secured by a $1,000 per title deposit, which gives you 30 days to conduct due diligence. During this period, you’ll review client relationship documents, financial projections, and work closely with your mortgage advisor to ensure everything is in order.

5. Unconditional Commitment

If the due diligence process goes smoothly and you’re satisfied with the property, the next step is to remove conditions and provide a 10% deposit of the purchase price. This marks your unconditional commitment to the project, allowing the builder to move forward with construction.

6. Pre-Construction and Construction Phases

Once your commitment is secured, the project enters the pre-construction phase. Depending on the project’s stage, there may be a gap before construction begins. Our team remains in constant communication with the builder, conducting monthly pulse checks to ensure that everything stays on track. We also assist in assembling your “boots on the ground” team, including legal representation, property management, and other necessary services.

7. Possession and Closing

As the construction nears completion, you’ll receive a possession letter, signaling the builder’s readiness to hand over the property. This is a crucial time to finalize all legal, financing, and property management arrangements. Our team assists in coordinating these final steps to ensure a smooth transition. If you’re an out-of-province investor, we help you arrange for a property manager to oversee the final walkthroughs and manage the property post-closing.

8. Ongoing Management and Warranty

Post-possession, it’s essential to manage the property efficiently to maximize your ROI. We recommend having a property manager with experience in new construction to handle any issues that arise during the first year, including warranty claims. Our team supports you in setting up these processes to ensure long-term success.

9. Exit Strategy

When the time comes to sell, whether it’s five, ten, or even twenty years down the line, we’re here to help. Depending on market conditions and your specific situation, we can explore various selling options, including private sales or listing on the MLS. We leverage our deep knowledge of the project and market to ensure you get the best possible outcome.

Conclusion

Investing in new construction rental properties in Edmonton with AOF Real Estate Team means having a dedicated partner by your side from start to finish. We bring a wealth of experience, strong builder relationships, and a comprehensive approach to ensure your investment journey is successful and rewarding. Whether you’re looking to build your portfolio or make your first real estate purchase, our team is here to guide you every step of the way.

Ready to get started? Connect with us today!

https://www.aofteam.com/contact