Getting access to the right Canadian real estate investing information is key, especially when there are TONS of so called experts out there trying to tell you the easiest ways to get rich quick!
I know firsthand that starting to invest in Real Estate can be overwhelming and I know it feels like A LOT of work — because it is. But, when you take time to understand individual elements and strategies, one at a time, it does get easier!
I remember when I first started out, with little guidance and slews of real estate investing information all over the web! I was overwhelmed and didn’t know which strategy was best for me, how to take the first step or where to go for guidance and help.
What You SHOULD Do When Starting Your Canadian Real Estate Investing Journey
First, you need to make sure you understand your purpose, what is your big ‘why’? What is driving you to invest in real estate? This is a very important piece of information that you must discover!
Second, once you know your big ‘why’, this will help you decide the types of strategies that are ideal for you.
You need to really delve deep and think about your risk tolerance, how much time and energy you can dedicate to your real estate investing goals and what about real estate really sparks your interest.
Remember that real estate investing is NOT a passive investment, and one that requires a keen understanding of economic fundamentals and a solid team of experts. Infact, I tell potential real estate investors to look at it as a business.
Third, surround yourself with a team of experts, as mentioned above. I find the biggest mistake people make is trying to do it all on their own. When you are a jack of all trades, you are a master of none! I suggest having the following people as part of your team:
Mortgage broker: a vital conversation to have upfront since real estate investing involves leverage (aka getting a mortgage). I like to work with a broker who knows my long term plans and goals and who can advise me on the best route to follow when working with lenders.
Lawyer: a good lawyer, specializing in real estate is key! From structuring a corporation (which I suggest if you are going to grow your portfolio) to closing your deals, this individual will definitely come in handy.
Realtor: I know there are tons of real estate agents out there – but ask yourself, can my realtor give me information about Canadian real estate investing? If the answer is no: find yourself a new realtor. The person you work with MUST be an investor themselves and will be required to guide you in your buying decisions.
Property manager: What kind of property management you need depends on how much of an active investor you want to be. But unless you live in close proximity to your properties and have time to pay close attention to the daily ins and outs, I suggest you look into finding one of these!
What You SHOULD NOT Do When Starting your Canadian Real Estate Investing Journey:
I think the biggest thing that holds people back is FEAR. Do not let fear cripple you or hold you back from taking ACTION!
Now that we have talked about what you should do, here are some things you should avoid:
Don’t over educate yourself.
Now don’t get me wrong, I have spent thousands of dollars on Canadian real estate investing information; from books, to seminars to monthly membership subscriptions. But – I plunged into the game very quickly and purchased my first property. The best way to learn is by doing!
Don’t expect instant riches.
Remember that real estate is a slow and steady vehicle to build wealth and create financial freedom. However, the key to growth is time.
Don’t listen to everything you hear in the media.
I’m sure you watch the news, listen to the radio or read the newspaper. There is constant buzz about the markets, and the next big downturn. What you need to know is that you are investing for the long haul, and yes, the market will have ups and downs. Don’t let it scare you away!
Don’t let small setbacks scare you away.
Ask any veteran real estate investor, and he will tell you his horror stories of bad tenants and shady contractors. Ask him he if regrets investing in real estate and I guarantee the answer will be no! There will be ups and downs, but ride them out and know that you will come out on top in the long haul!
Don’t listen to the know it all’s.
When I first started investing, I had tons of people trying to tell me what to do. Why don’t you invest here, or why don’t you do this or that. When I asked them about their experiences, guess what, many of them had NONE.
The most they could tell you was that their brother, or friend, or coworker had properties and this is the strategy they employed! Listen to someone who has been there, done that!
What about you?
I’d love to know what you think! Did you learn something new? Do you have another tip to add? Please share your feedback in the comments below.