Growing up, my mom always told me to buy a house rather than rent. She told me that renting was a waste of money. I have to admit that I don't usually take my mother's advice, but for some reason I listened to this one.
When I was 22 years old I decided I was ready to move out and buy a house. I took full advantage of the fact that my parents were paying for my University education so I worked while attending school and saved all of my earnings. By 22 years of age I had graduated and had never seen the inside of a pub, bar or University party night. People would call and ask if I was interested in going out but the answer was always the same: "No, I have to work". I waitressed at night and taught fitness classes in between my university classes during the day. It became a given that I would run into class at the last minute, all sweaty and usually end up falling asleep at some point. I still aced my classes and completed my degree on time.
One day I told Moses, an elderly realtor who worked out at one of the gyms I taught at, that I wanted to buy a house. He asked me a few questions, most of which I didn't understand, and I began searching the MLS in my spare time. Each week I would prepare a list of houses that I wanted to go see and he would chauffeur me around to the different places. He asked me how much of a down payment I had and I asked him "how much do I need?" That line is a clear indication of my personality. It's not what I have, it's what I need. I will always find a way to get what I need. Most people reduce their spending if they notice they are short on money. I am the opposite. I find more money so that I can maintain my current standard of life. There isn't much I can't do, given the chance.
Anyway, I found the perfect little townhouse for myself in the west end of the city. I made an offer and we went back and forth until it was accepted. I then asked Moses how much money I needed and he said $24,000. I said I had better get to work. I think I had somewhere around $12,000-$15,000 saved already. I had 60 days til closing to come up with the money. I picked up more fitness classes and extra waitressing shifts and on the day of closing I had $24,000 in my bank account!
Now, I also needed to get a mortgage for the remaining balance. I went to my regular bank and they wouldn't even look at me. I was a waitress (mostly cash income) and I was a self-employed fitness instructor picking up contract work all over the city. I tried another bank and they too pretty much laughed in my face. I can't remember now how I ended up at Mabel's desk at CIBC on Bank St. but I did. I sat with her in my sweaty gym clothes and gave her all the info to type into her trusty computer. When she was finished asking me questions about income, employment, etc. she asked if she could have my mom's name and phone number. My heart sank. Here we go again, I thought. She needs my mom to co-sign my mortgage and take care of me. I can do it myself, I thought. She immediately picked up the phone and called my mother right there while I sat in front of her. When my mom answered the conversation went something like this:
Mabel: "Is your daughter Natalie Rivier?"
My mom: "yes" (she was probably thinking, uh oh, is she in trouble...after all, I did have her car stolen once in a parking lot when I left it running on a 40 below winter night...)
Mabel: "My name is Mabel and I am a mortgage specialist at CIBC. I have your daughter here in front of me and I just wanted to tell you how wonderful she is and how proud of her you should be"
My mom: "Well thank you, I am very proud of her"
Mabel: "I am not sure if this approval will go through or not but I would personally co-sign for her if it doesn't because any young girl who has managed to save up $24,000 is a safe bet in my books!"
I felt like I was on top of the world! I kicked ass! I was going to buy my house. The approval did go through and I moved in on May 31, 1999. At that time, I had no idea what kind of gold mine I was sitting on. I just knew that I had a cute little house that was all mine (and part CIBC's I guess). Over the next 5 years I changed the hardware on my kitchen cupboards and painted them. I finished the basement, I painted, I changed all of the flooring to hardwood and I replaced the interior doors and trim. I must mention that I come from a home renovations family and that my boyfriend of the time, uncle and brother did most of the work for free. I only paid for supplies. On July 21, 2004 I decided that the market was probably at its peak for townhouses so I listed my place for sale. It sold in 1 day for $180,000 and I had bought it for $94,000!!! After the mortgage was paid off I walked out of my lawyer's office with a cheque for $102,000. I was rich!
I took that money and of course, squandered some it....but not much. I used a chunk of it to buy myself a business that has proven to be the best job I have ever had and has become a constantly growing and successful enterprise providing me and my family with a pretty handsome salary and a ton of freedom that has allowed me to raise my children and explore other ventures at the same time.
My side ventures are what have led me here.
I have had 2 dreams for as long as I can remember. One is to be famous and the other is to flip houses for a living. I am about to have both my dreams come true. I have my first house to flip and I will become a famous house flipper and some television network will pick me up and follow me around :)
Follow me on my journey.....I can guarantee you will learn something from me....or at the very least you will have a good laugh with me.
Renos start next week. I need to go load my iPod up with house flipping tunes because I have a big job ahead!
So...which house are you starting with??
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