Real estate investing can be done in any part of the world. The world population is growing and expanding on a continuous basis. This means that now, more than ever, there are people buying land and property. Land prices continue to rise in Canada, and that means that real estate will continue to be one of the best investment opportunities in the country.
With leverage, you can actually make a huge return in your expense. This is because you’ve gotten less capital tied up while in the earliest destination. In the event you get an asset for only 20 %25 down, you can individual and regulate huge amount of appeal.
One investor I read about in the past stated that he got his real estate power team by running an ad in a local newspaper advertising a property for sale. As he received telephone calls, he told the callers that the house advertised was sold. Then he asked each of them if they were home investors.
A number of years ago I decided to begin investing in commercial real estate. While I had experience in buying and selling single-family investment properties I had no experience in multi-family property investing. A new acquaintance of mine, Mike, owned an apartment building. I knew Mike would be a great mentor for investing in a new asset class of real estate.
Provide a washer and dryer – People hate going to the laundry mat. It costs money, it takes time, and they’re often dirty and populated with less-than-attractive people. Buy a washer and dryer for the property, and by spending a few hundred dollars, the landlord can raise the rent by .00 a month and have the washer and dryer paid for within a year or two, plus they have gained a huge advantage over the competition.
Know your long term goals before investing. This is not a get rich quick method of asset appreciation. Most liens will only come due once a year. So if you are looking for short term make money fast action this is probably not it. But to compensate for the time factor involved, you’ll be blessed to gain 16%25 and more on your investment capital.
The reality is challenging situations do happen. Your tenant moves out, the hot water system needs replacing, one of your properties won’t sell and/or interest rates go up. Do you have ready access to cash to help you through difficult times?
What if you can’t sell one of your properties, and you are left servicing the loan? Do you have access to cash to keep servicing the loan until you sell the property? Do you feel comfortable selling the property at a loss? How long would it take you to make the decision to sell at a loss? What impact will holding the property have on your cash-flow?