5 Things No One Told Me When Getting Started In Real Estate
Posted date : May 15, 2014In BLOGComments Off on 5 Things No One Told Me When Getting Started In Real Estate
When I first got introduced into Real Estate, I went in with unrealistic expectations. I thought I was going to be retired in the next couple of years and was going to quit my fulltime job in no time.
The good news is… I was able to quit my full-time but…. it wasn’t a walk in the park and most of the time wealth is built slowly and Real Estate is no exception. If you are thinking about getting into Real Estate Investing, here are some things you need to know.
Real Estate Is Harder Than You Think
Here’s the bottom line… Real Estate Investing takes work. The infomercials late at night promise a life of riches, fame and glory with no money down and no work. To reap the rewards you have to be willing to put the work in. Now… it doesn’t have to be in the form of swinging a hammer, but there is lots of time and energy that goes into putting deals together. Work hard now so that you can reap the rewards later.
Every Single Market Is Different
Before jumping into a certain area to invest, understand the market. Buying a townhouse in Barrie is different from a townhouse in Whitby. When I’m selecting my target, I’m looking for 3 key factors.
Vacancy Rates – You don’t want to be the investor that has that property that can’t get filled. Going to stats Canada is a great resource for this type of information.
Infrastructure – Pay attention to things that are being done in the community. Will it attract new families to the area? Are they expanding or extending the Highways? Are they improving public transportation to make it more convenient.
Household Income – Understand the household income in a community is important. If you are buying a higher end starter home you need to know if you can rent it out at the higher end of the scale, will there be a demand for it? Again, stats Canada is a great place to find this information. Real Estate is truly a local game.
Find a Mentor or Real Estate Club in Your Local Area
The best thing to do when you start out in this industry is to find a mentor or a real estate investing club, such as Smart Home Choice. Why make the costly mistakes in the beginning when you can learn from others mistakes? There are lots around the GTA and surrounding area and many of them will be Free or charge monthly membership fees from $20 to as high as $200 a month. I get it… I didn’t want to pay these fees in the beginning either but once I did, it’s the best thing I ever did. The education and the networking I continue to get from these clubs are priceless.
Don’t Quit Your Fulltime Job too Quickly
This is probably this biggest mistake I see many people make in the beginning. Getting so excited that they quit their full-time jobs too quickly. Trust me, once you leave your job it’s not easy to get qualified for mortgages. In many cases its can be next to impossible unless you hand over your first born. Map out the next few years, determine how many homes or joint venture partnership you need before making the move.
Treat This Like a Business NOT a Hobby
When you get your first investment property treat it like a business. Act as if you had a boss watching your every move. You can reap some HUGE rewards from Real Estate investing -so be organized. The tax man wants his share of the pie too, so make sure you file, and get yourself a good team of accountants, lawyers, real estate agents, mortgage agent… etc. Treat your business with respect and it will treat you back even better.
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