I want to invest in real estate, where to start?

Investing in Real Estate… yes, I’ll say it one more time… it’s the greatest investment you’ll ever make. Now that everyone has been through it many times over, let’s see where the process can begin.

1) What type of investment do you want to make? I can help you decide… If you’re not looking for a job, no risk, and little return, stop reading and dive into RRSPs. If you are looking for little work, a little risk and a good return, then residential property is for you. Newer, close to things like. If you’re looking for a lot of work, a lot of risk, and a really good return, flipping is your thing. There are also commercial deals, such as land and office buildings, but those are often too expensive and complex for most new investors.

2) Do you need money? Let’s see places where you can get money to invest. Look closely, and then turn further away from you. So first it’s a LOC. Credit line. This can be taken from your home if you have equity. maybe savings? Now let’s spiral out. Family and friends. See if you want to buy a house with friends or family. Don’t let people tell you, NEVER do business with family and friends. They are a great resource and it can be a win-win situation. The following would be the investors. Find others who are looking to invest. Now be very careful. There are many companies that say they will take 10,000 from you and invest it. That’s not what I mean. Find some people with cash who want to buy property just like you. Keep the money close and the house in your name. Beware of scams.

How much do you need? In Calgary, Alberta, and the rest of Canada, you need 20% in an investment property. But if you don’t mind moving, you can do a major upgrade. You can only do this once. But you can keep your home and move up to something more expensive with a 5% down payment! So you can have an income property for little money.

3) Build your team. Get a mortgage broker. They will get him the loan he needs. Tell them that you would like to develop a relationship with the lender. This is key for subsequent transactions. Now you NEED a Realtor®. Even before being a Realtor® I knew the importance of one. Please note that I am not referring to ANY Realtor®. I mean an experienced Income Property Realtor®. One who knows the numbers, the tenants, the landlords, the houses, the statistics and the ins and outs of real estate investing. The Realtor® will save you time, money and make the process easier than you think. A real estate attorney, real estate accountant, and home inspector should complete the team.

4) Now find home… read my next article on what you should be looking for.