Tag: investing

Real Estate Investment

Buying Your First Investment Property

YES, it is true, Real Estate investing produces more millionaires than any other industry. But that doesn’t mean it’s dummy proof.

And YES, it is true, it’s hard to lose when it comes to Real Estate investing over the long term. But that doesn’t mean you CAN’T lose, or at least that some strategies are better than others.

So where do you start?

Well – here are some questions you need to consider.

How much money do you have?

How risky do you want to be?

Are you more interested in short term CASH or long term equity?

Do you want something turn key, or something that needs work?

How handy are you?

How much time do you have to put into this?

How big of a project are you comfortable taking on?

When you take the time to answer those questions you can really start to determine what works best for you.

For example. Lots of money, time and skills, willing to take on risk and looking for short term cash? Maybe we buy a house on a main street on a big lot where prices aren’t yet too crazy but rents are still high – and we build a wicked multi unit, rent it out, and flip it as a cash cow.

Little money, time and skills? Want as little risk as possible and ok with long term equity? Let’s buy a brand new apartment in the most steady location we can find and rent it out for 10 years.

Both could be your first investment – and one is SUPER ambitious and the other is pretty tame. Both are good.

Rather than list all the options, just answer all those questions and feel free to send me the answers for recommendations on investments that match your answers.

What’s the most popular 1st time investment in my experience you ask?

I’d say a purpose build duplex that could use some lipstick and that would fetch some great rents. That’s a pretty decent first step that gives you some low(ish) risk that will probably get you a little positive cash flow but will absolutely get you some nice equity over the long term.

The MOST IMPORTANT part to Real Estate Investing? START.

Honestly, that’s it. Even slightly sub par investment will pay off big time if you hold it long enough, but what’s undeniable is that when you own Real Estate you have more options. If you have a property that builds some decent equity, once that mortgage is due you can refinance it and pull out some money to invest in more Real Estate – and it snowballs from there.

If you want to have a talk about how to get in the game, send me a message and I’ll be happy to talk 🙂

Real Estate Sales, Suburb Series

What Makes a Good Location?

For our Suburban Buyers, finding a good location can often be tricky. It isn’t enough to be in a ‘good’ suburb – you ideally want to be in the most favourable part of it. So what exactly makes one part of a suburb more favourable than others? Here I’ll give you a few great examples to look out for.

First of all, we need to acknowledge that a suburban buyer often has a family that needs and values certain things. Safety being the most important, then proximity to recreation being second, and finally proximity to amenities and transportation being third. Let’s go through those one by one.

First – Safety. One aspect that makes a good, SAFE location for a Suburban Buyer is one that has little to no traffic so that their kids can play or even wander in the street without panic. Every parent wants their kids to be able to play street hockey, ride their bikes, or throw a ball in the street and feel safe doing so. The peace of mind that a location like a base of a crescent provides makes a very particular lot even more desirable. Suburban Buyers would also like to be on a street or block where the other homes are at least as nice and as big as theirs. When neighbouring homes are of a poorer quality (build, look or upkeep) there are generally poorer standards in the area – which can make them feel unsafe.

Second – Proximity to Recreation. Being right next to a park or a sports field gives Suburban Buyers a place to get some space and exercise, and to feel safe with their kids while they do the same. As long as these places are well kept and attract other similar people – this is a massive bonus that makes a home worth even more.

Finally – Proximity to Amenities and Transportation. The trick here is to think of these like your in-laws. You want them close – just not next door. Around the block, a few streets away is perfect lol. Suburban Buyers want the convenience of being able to run out and get some food or whatnot, and don’t want to have to be stuck in traffic for 15 minutes just to go 1 mile down the road doing it. Many suburbs get so developed that getting to the highways or rapid transit stops are easily 25-30 minutes on average. God forbid someone has to take a bus or two just to get OUT of the suburb – time adds up quick.

So if you are a Suburban Buyer thinking of WHERE you want to be in your preferred suburb, I would strongly consider these three items I’ve mentioned above, or at least be very clear about what it is you are looking for.

Too often I’ve seen buyers more focused on a few thousand dollars as their main driver when it comes to finding a home, and I would hate for you to be lured into thinking that would be the most important thing in the home where you’ll be spending the next chapter of your life.

Real Estate Sales

How to Prepare Your Home For Sale

Likely the largest hurdle for our Sellers – HOW to get the home ‘show ready’. Seems like a daunting task for sure, however there are a few good rules of thumb to follow to get you going in the right direction.

For starters – good home maintenance is a must. We want Buyers to come in to your home and feel like the home has been cared for. After all, pride of ownership says a lot about BOTH the sellers and the home. Seasonal maintenance, regular maintenance on appliances and utilities, as well as maintenance on any property damage are all a must. Our most successful sellers are on top of ALL the required maintenance of their homes and keep detailed logs so they can show prospective Buyers.

Second- declutter and clean. We’ve all heard this before, however there is more to this than you might thing. Regarding cleaning – give your home a DEEP clean right before you list. That means dust all those hard to reach places, clean the stove and fridge, and wipe the baseboards. When it comes to decluttering, what you want to do is ideally have a large number of the EXACT same type of cardboard boxes or plastic bins, get some labels, and sort out a proper, clean and well lit place to place all your storage. Why go through all this trouble? Because EVERY house will have 1 or 2 rooms with storage, but most will look like … well… a garbage dump. I’ve seen garages packed the ceiling with what seems like a variety of items just thrown right as far and as high as they’ll go. YOUR storage on the other hand will reflect well on you. It will be clean, organized, and neat. This is an excellent opportunity to stand out from the competition and to give the next Buyers the impression that when THEY move in, they’ll be organized too!

Third – paint your home. Consult with a stager to see what the latest and greatest colours and matches for your specific property, and if you can’t paint like a pro – hire one. This is one of the best ways to freshen up your home, give it a ‘new home smell’, and is also an excellent return on investment. Paint is a few hundred dollars in the cans, but 10-15K worth of value on the walls (if done right).

These are just the basics, and there are many more strategies to get into if the resources exist. Depending on the levels of time, money and energy available, preparing a property can go from the simple rules of thumb above, to a complete transformation.

Any questions? Ask 🙂