Investing in Real Estate can be a “school of hard knocks” if you don’t know what you are doing. Here is what I have learn and I hope you can employ these key ideas before you invest.
9. Be aware of tax laws as they do tend to change and evolve (or make sure you have a good accountant that can do this for you).
8. Specialize in something you know and an area you are familiar with (you own neighbourhood or city is not a bad place to start).
7. Know your numbers for the deal such as expenses, taxes, utilities, rents, vacancy rates, and financial statements inside out.
6. Have a strong team: Realtor, Mortgage Broker, Accountant, Property Manager, Contractor, Mentor and Property Inspector are all key people.
5. Always check references for tenants and people you work with and/or hire.
4. Always inspect (properties and/or people). Know what you are getting into and who you are working with.
3. Create a plan. Put it in writing so you can have others review it and help keep you accountable to it. Then write a plan B. Things don’t always go according to plan and it helps to have the back up ready to go.
2. Focus on the deal, not on the market. (A good buyers market may not feel like a good market… Think contrarian.) You never hear someone say “I bought in such a good market.” They say, “I got the deal of a life time!”
1. You make your profit when you buy real estate, not when you sell it. (In other words, money is made with the value of a good purchase – don’t over pay – buy smart. If you need help on buying smart, I can help.)
Wishing you a profitable real estate portfolio,