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Canadian Matchmakers Come To The Valley
by Mike Sunnucks
Phoenix Business Journal
The influx of Canadians real estate investors into the Valley has created a cottage industry of matchmakers looking to connect potential buyers with bargain priced or distressed vacation, retirement and investment properties. Vancouver, BC based Ownermatch International has set up U.S headquarters in Scottsdale for its dual-ownership real estate business, which targets $1 million plus mansions and second homes.
Ownermatch has arranged 100 residential real estate partnerships in Western Canada since 2004, with deals usually involving two owners splitting the purchase price and time spent at the property 50-50. Ownermatch President Dudly Merkel said the service caters to wealthy, usually cash buyers who want a second or third home, but won’t spend much time there. “That’s our niche,” Merkel said.
Rich vacation-home buyers often don’t spend more than five or six weeks a year in those homes, he said. That leaves and expensive investment empty most of the year, which can result in higher insurance rates.
Merkel said the Scottsdale office will employ a handful of people and serve as the launchpad for U.S. expansion. He said Ownermatch Southwwest LLC will launch its business model this summer in San Diego and Orange County, California, Las Vegas; and Colorado ski resort areas including Vail and Telluride. He said other markets, such as Utah and Florida will follow.
Ownermatch gets a 1 percent fee from the sellers, plus additional referral fees in some transactions. Merkel said the partnership contract includes sunset and “out” clauses for buyers in case arrangements go south or hit speed bumps.
“It’s kind of like a prenup,” said Merkel, who acknowledged some buyers are reluctant to enter housing transactions with others.
Another firm – Jowen Investments & Consulting Ltd. – conducts tours of Phoenix and Las Vegas for prospective Canadian buyers. Jowen owner Jon Murray said Canadian housing ourists are looking at properties ranging from $80,000 to $240,000, with some planning to rent them out and others trying to flip them for a profit.
Murray said the tours usually last two days: The first features talks by real estate agents, title companies, attorneys and other service providers; and the second is spent looking at listings.
Murray used to charge $2500 for the tours but he now offers them free to clients who are looking to partner with him on investment properties. Those looking to buy a home on their own now can hire Jowen for a fee ranging from $2,900 to $15,000, depending on purchase prices and the number of properties acquired.
Murray said he partners 50-50 with some tour participants on home purchases in the Phoenix and Las Vegas areas that can be flipped for a total profit of about $20,000. He said Canadians buyers usually have cash or equity, but need some guidance when it comes to investing in the U.S. market.
Diane Brennan, a real estate agent with Keller Williams Integrity First Realty who specializes in sales to Canadian buyers said local agents already provide those services to buyers. “As a Realtor, we do that – match up properties for investors. I do that all the time,” Brennan said.
She said investment buyers don’t always have to come to a market to tour homes, and it’s more important that the numbers work. Brennan said she’s seeing some proxy buyers. “One person will come down and buy for 10 people”, she said.
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