In the last blog post, we introduced the types of thoughts, behaviours and lifestyles that aren’t right for a real estate investor. If you’re curious to know if you fit those criteria, check out the post.
With the first post and this one, my intent is to give you a primer and get you thinking about real estate investing, I am also hosting a webinar on August 1, 2013. Click here for more information. Real estate investing is a massive topic and I couldn’t possibly cover it all in just two blog posts!
Those who are ready to invest now may still have some doubts about making the leap. Many things come to mind with a commitment as large as this.
Q. If buying investment properties is such a good idea, why isn’t everyone doing it?
A. Some people may be in the right place mentally and financially but they may still lack knowledge and information. This often generates a fear of moving ahead with an opportunity. To overcome this fear and gain the confidence needed, build yourself a real estate Power Team. This would consist of a realtor, mortgage broker, lawyer, home inspector and other experts necessary to work through a real estate investment. They will become your “go to” people any time you are considering buying or selling.
Q. It feels like too much hassle and work.
A. This is definitely where having a Power Team takes care of your concerns. By having the right people on your side, they take care of the majority of the work and ensure the little things are dealt with.
Q. You feel your lack of cash or liquid assets makes real estate investing a bad idea even though you know you can afford it.
A. This is a common position for those who have a high-value home, a lot of non-cash investments or retirement savings. There are options here to find sources of funding. You can look at Self-Directed RRSPs, second mortgages, lines of credit and other possibilities. We can talk about options to find the money you need from funds you already have.
Q. I don’t want to be a landlord. What kinds of investments are there for me?
Real estate investing isn’t just about being a landlord – although that is often how it works. If you’d prefer not to be in a landlord position, consider joining an investment trust or being a silent partner in a joint venture.
I have a comprehensive questionnaire for prospective investors. It looks at your current situation, financings options, goals, needs and requirements. Ultimately, it puts your head in the right place to decide whether to proceed with investing in real estate now or not.
If you do decide to proceed, you must develop a real estate plan.
There is so much more to real estate investing than this. To continue introductory learning, I welcome you to attend the webinar on August 1, 2013 where we can dive in deeper and get to the heart of your questions.
Written by Marci Deane, www.askmarci.ca