Different types of real estate investments

Being a full time investor is a dream of many people that we know. Reading financial report, looking at different investment opportinities, managing your portfolio, evaluating companies and managing large amounts of capitol seems like a dream come true to many people. Imagine the time flexibility, the financial security and the opportunity to do what you always wanted all in one place. Sounds pretty good doesn’t it?

Most people believe that to become an investor, especially a full time investor you will need a lot of money. It is true to a certain extant. However there are ways to becoming an investor and eventually a full time investor with a little capitol start. That way is investing in real estate. Buying houses, condos, multifamily dwellings, land, commercial properties etc is a great way to make money. In fact there are a lot of self made millionaires who started out investing into real estate.

In this post we will talk about different ways of investing and profiting from the residential real estate. Residential real estate includes houses and condos (apartments).

There are quite a few different strategies of investing money into the residential real estate. First of all how do you find real estate to invest in? You can start by looking on cragislist.org, typing into google a website for local real estate for example – houses for sale in Vancouver, joining an investment club (to find an investment club around you go to meetup website and type in “real estate investment club”) to get the process started. We would also suggest talking to some past investors or real estate agents in your area.

So what are some of the different investment strategies in the residential real estate?

You can buy a rental property. Basically buying a property for a sole purpose of having it rented out to a tenant on a lease. Make sure the your property is cash-flow positive. Meaning the rent you charge your tenant covers your mortgage payments (if you have mortgage on the property). Also make sure to check how much are the property taxes, and maintance fees (if it’s a strata property). You should also think about becoming a landlord. Are you willing to manage the property by yourself of would you hire a property management company to help you? If so your should take into account the property management company’s fee.

If you are choosing the rental route, there are two ways of going about it. Number one: you could do long term rentals (6 months +). Most long term rentals require tenants to sign a lease for at least a year.

Another way your could go about renting out your house or a condo is doing short term or excutive rentals. This rentals are only a couple of days or weeks long. This strategy might not work well in smaller cities where there isn’t much demand for the short term rentals. With short term rentals your condo or a house needs to be furnished, cleaned and should have some dishes for the people to cook and eat food. With the popularity increase the of the websites like AirBnB it is a lot easier to rent out your condo or a house on a short term basis.

The downside of short term rentals is the fact that you will have to clean the unit after each “tenant” which could get a little tiring. Just plan for that in advance and you will be fine.

Another way to invest into real estate is to flip properties. This strategy works better with house however there is a lot of opportunities flipping strata properties or condos. So what is flipping a property? Basically, you buy a property in a need of a renovation. Renovate the property and sell it for a higher amount. Now, flipping properties is not as simple and easy as it used to be. The buyers are much more educated now.

Finding the right property to invest in is the key. Avoid multiple offers, as these are usually the situations in which most people overpay.

Another way to invest in real estate is to build houses. You can find empty lots in desirable areas of your city. Lots with old tear-down houses would work too. Invest some money into getting appropriate permits to build a new home and get to work. This usually requires some technical knowledge. Building houses is also a little risky especially if you’re just starting out.

If you have done a few flips or invested in a couple of rental properties you might consider buying into a multifamily development or an apartment building. Having one building could provide you with a great revenue. Plus in a few year you could re-finance your real estate investment and invest the money into even more real estate. We will write more on that subject later.

We hope you find these real estate investment strategies helpful and you can apply them to your own life. Best of luck with your investments. Please, share this article on social media if you found it interesting. Leave a comment below of your favorite real estate investing strategy.

 

Ignore the real estate news

We hear it all the time. “The real estate market is going to crash!” “There is a real estate bubble.” “People will loose all of their money” “The 2008 real estate and housing crash is going to come back”.

Although many skeptics make some valid points. The real estate “bubble” is not about to burst. Because, in out opinion there is no real estate bubble. It’s a simple supply and demand chain.

Back in 2008 in United States and all around the world we have felt a huge burst of a real estate bubble. That’s because banks were loaning money to anyone who was old enough to get a credit card and had a half decent job. The banks would also loan out waaaaayyy too much money. If you needed $250,000 for a house. The would loan you $280,000. This way as a new home owner you could also afford to do some little reno projects and buy some new furniture.

What happened if in 3-5 years when it came time to re-mortgage the property but it didn’t go up in value? Well now you have a $280,000 mortgage on a property that’s worth $250,000. And you have been paying the damn thing off for years.

Now imagine even worse case scenario. The home actually went down in value. Or even worse the owners lost their jobs. Now that sounds like a nightmare.

We are not even going to talk about the fact that many investment funds and insurance companies on the Wall Street have bet against the housing market and expected it to fail.

In present day there is no bubble. We have learned from our previous mistakes. We are much smarter now. First of all the Wall Street is much more regulated. But secondly and more importantly there are much much tighter regulations on the mortgage activity and taking out housing loans. It isn’t easy at all to qualify for a loan. You are now asked for a sizable downpayment.

We know many first time home buyers who would disagree that it’s a good thing but it is. People have to truly be able to make their mortgage payments and be financially secure to obtain any kind of housing financing. And in our book that’s a good thing. Yay us! We have finally learned something from our previous mistakes.

10 Reasons why dogs are awesome

3 out of 4 of us have dogs (the forth one is also getting a dog). We decided that it’s only right if we write our first blog post about how awesome our furry friends are. If you already have a dog, you know how amazing they are. This is more for people who are thinking about rescuing a dog.  So here are 10 reasons why dogs are awesome:

  1. Dogs are super intelligent. Some dogs can learn up to 250 words and gestures. Basically like a 2 year old child. Some street dogs in Russia even learned how to use the subway system. They also listen to the voice over and know different station. Pretty smart. Some of my friends can’t do that lol
  2. Dog’s have amazing flexibility when running, because their shoulder blades are not attached to their skeleton.
  3. 3 dogs survived when the Titanic sunk. Take that Jack!
  4. Single dog and her puppies can produce close to 67,000 offsprings in 6 years. That is if they are not fixed of course.
  5. The Basenji breed of dogs are the only breed that doesn’t bark.
  6. Don’t give grapes or raisins to your dog. Their digestion system is not designed for it. They could die.
  7. Max is the most popular US dog owners name. And Bella is the most popular US dog owner name for women.
  8. 300 rescue dogs were helping during the 9/11 attacks.
  9. Dogs sweat through their paws.
  10. Dogs nose print is similar to our finger print. The nose print can be used to identify the dogs.

I hope you enjoyed our 10 awesome facts about K-9s. Now, go to the shelter and a rescue a dog.