Investing in Real Estate….yes I will say it yet again…it is the greatest investment you will ever make. Now that everyone has beaten that over your head many times, let’s see where you can start the process.
1) What kind of investing do you feel like doing? I can help you decide…If you are looking for no work, no risk and little return then stop reading and dive into RRSP’s. If your looking for little work, a little risk and good return then a residential property is for you. Newer, close to things tenants like. Looking for a lot of work, a lot of risk and really great return then flipping is your thing. There are also commercial deals, like land and office buildings but that is usually too expensive and complex for most new investors.
2) You need money? Let’s look at places where you can get money to invest. Look close then spiral farther from you. So first is a LOC. Line of Credit. This can be taken from your home if you have the equity. Maybe savings? Now let us spiral out. Family and friends. See if you want to buy a home with friends or family. Don’t let people tell you, NEVER to do business with family and friends. They are a great resource and it can be a win-win situation. Next would be investors. Find others that are looking to invest. Now be real careful. There are a lot of companies that say they will take 10,000 from you and invest it. That is NOT what I mean. Find a few people with cash that want to buy property like you. Keep the money close and the home in all your names. Be careful of scams.
How much do you need? In Calgary, Alberta and the rest of Canada you need 20{7871f4c91f79cbddef59511eb5b9899c6f1d497baab0afdeab5a98ee6e504626} on an investment property. But if you do not mind moving you can do a primary upgrade. You can only do this once. But you can keep your home and move into something more expensive at 5{7871f4c91f79cbddef59511eb5b9899c6f1d497baab0afdeab5a98ee6e504626} down! So you can have a revenue property for cheap.
3) Build your team. Get a mortgage broker. They will get you the loan you need. Tell them you would like to build a relationship with the lender. This is key for later transactions. Now you NEED a Realtor®. Even before I was a Realtor® I knew the importance of one. Keep in mind I do not mean ANY Realtor®. I mean a experienced, revenue property Realtor®. One that knows the numbers, tenants, landlords, homes, stats and the ins and outs of property investing. The Realtor® will save you time, money and make the process easier then you think. A real estate lawyer, real estate accountant and home inspector should round out the team.
4) Now find the home…..read my next article on what you should be looking for.
