Many new real estate investors get confused on what type of property they should buy. When I first started as a real estate investor, it took me one full year to determine what type of property I was going to buy.
When I look back, I see that as wasted time. If I was able to buy my first rental property faster, I would have made more cash flow and benefited from more LONG term appreciation.
If you are a new real estate investor and you are struggling with what property type you should buy, you need to listen to my new PODCAST.
In my PODCAST I talk about what the different property types are and which property type is the best one for the new real estate investor.
Listen by clicking the link below:
ps: Please share this post with any family, friends or co-workers who you think will benefit from this information.
pps: If you are serious about buying your first rental property, read the most popular article on this blog called, How To Buy Your First Rental Property
January 24, 2015 No Comments
I recently recorded another PODCAST on Property Management. I will admit, this new PODCAST is better than my previous one.
My previous PODCAST on Property Management can be listened to here:
My “NEW” and “BETTER” PODCAST on property management can be listened to here:
In the PODCAST, I address the question:
Is Property Management Necessary
If you are new to real estate investing and you are looking to buy your first rental property, I highly recommend that you listen to this PODCAST.
ps: please share this post with any friends, co-workers, or family that you think would benefit from this information!
January 23, 2015 No Comments
I recently wrote an article on the pros and cons of property management.
The article was called:
New real estate investors always struggle with whether they should hire a property manager or self manage their first rental property.
You can now listen to this entire article in a PODCAST.
To listen to the PODCAST, click on the link below:
If you are new to real estate investing, I highly recommend that you listen to the PODCAST.
January 21, 2015 No Comments
A long time ago, I wrote an article series called:
It quickly became the most popular article series on my blog.
The entire article series is now available in a PODCAST.
By clicking the link below, you can listen to Part 2 of the podcast called:
If you are new to real estate investing and are interested in buying a rental property, I highly recommend that you listen to the PODCAST.
January 21, 2015 No Comments
One of the most popular posts on First Rental Property was a post in which I outlined step by step How To Buy Your First Rental Property.
This post was called:
Now, this entire post can be heard in a PODCAST.
The name of this PODCAST is:
If you are new to real estate investing, I highly recommend that you listen to this PODCAST.
January 15, 2015 No Comments
A lot of people want to make BIG money from investing in real estate.
I recently received a question from a young, aspiring real estate investor. In his email, the young man asked me for advice on how to get started as a new real estate investor.
I am going to share the email that he sent me along with my response to his email. The answer that I provide to his email will be very helpful to those of you who are interested in buying your first rental property.
Here is the email that he sent me:
- Start small first
- Don’t take on more than you can handle
- Learn to become a good landlord first
January 10, 2015 No Comments
I hope you are doing well.
One of the big questions new real estate investors always ask me is this:
“Should I manage my rental property myself or should I hire a property manager?”
My answer to this question used to always be…
“You should manage the property yourself”
After 10 years of buying rental properties, my answer to this question has changed, my answer is now…
“You should do both”
This is what I mean by, “You should do both”.
As a real estate investor, you are a landlord. As such, you need to learn how to be a good landlord. The only way you can effectively learn how to do something properly (in my opinion), is by doing it yourself.
I speak to many new real estate investors who want to buy a rental property and then outsource the management to a property manager without first managing the property themselves. I used to think this was a terrible idea. Now I don’t think this is that bad of an idea. Here is why:
A lot of people SUCK as landlords.
To be a landlord you have to wear many hats.
You have to be a:
- Relationship Manager
- Collections Specialist
- Book Keeper
- Business minded individual
- An extremely tactful person
…just to name a few.
Not everybody is good at everything. If you naturally do not have the proper skill set of being a good landlord, you should not be one.
If you are a bad landlord, you rental property will suffer. It may suffer in the following ways:
- You are not good at building relationships with your tenants
- You are not effectively collecting the rent that it owed to you, and the tenant is falling behind in payments more and more…
- You do not keep track of your expenses properly and you do not keep track of the partial payments of rent that your tenants are paying you, as they are behind and are trying to get paid back up
- You don’t have the vision of knowing what improvements to make to your property in order to attract a better tenant profile
- You are moderately offensive and rub your tenants the wrong way, which reduces the amount of respect your tenants have for you and in turn reduces the amount of respect that they have for your rental property.
If you know that you will not be a good landlord, don’t become one. Hire a professional property manager who is an expert in dealing with all facets of property management.
If you are a new real estate investor and you are choosing to not manage your rental property because you are lazy or you are too afraid of doing it yourself, that is not the right decision. If you have the skill set, and if you live close enough to your property to manage it, at the beginning, you should manage it.
You should manage it so that you learn the ins and outs of management. One day if you become too tired of managing your properties or if your skill set changes and you become deficient in some areas, you should hire a professional property manager.
Investing in real estate is not easy. It is a long term game that you have to stick with. If you would like to receive tips from experienced real estate investors for free, sign up for the First Rental Property Newsletter.
January 9, 2015 3 Comments
I hope you are doing well.
Recently I have been contacted by several people wanting to know how they can get started investing in real estate. I have found that there are a lot of common traits between people who are interested in becoming real estate investors.
One of the defining traits is that these people have a ‘dream’.
They have a dream to one day own real estate as an investment.
I find that I continue to give the same information to these individuals who contact me, wanting to know how to get started.
As such, I am going to provide 3 valuable tips to the aspiring real estate investor. If you find that you are in the same boat as the people I just described, you will find value in this article.
Here are the tips in no particular order…
1) Associate Yourself with Experienced Real Estate Investors
I cannot stress this point enough. If you are someone that wants to buy your first rental property, you have to associate yourself with experienced real estate investors.
There is no amount of reading on the internet that you can do that will replace the advice from an experienced investor.
Many times I get contacted by people who want to begin investing, yet who have never spoken to an actual real estate investor in person before.
You need to seek out these people in person and learn from them.
Ask them questions, and inquire with them how they have found their real estate investing career to be thus far.
You cannot expect to go very far as a real estate investor if you don’t seek the advice of existing investors.
2) Get Your Financial House In Order FIRST…
People contact me all the time who have no job, bad credit and no money…yet they want to buy a rental property.
This always confuses me as I find it difficult to understand sometimes why people want to buy a rental property, yet do not want to take care of their own situation first.
If you have bad credit, fix it by making your payments on time.
If you don’t have a job, please get one.
If you don’t have any money, start saving, or find a joint venture partner who will provide the money for the downpayment.
Get your financial house in order and fix yourself before you go and try to buy a rental property. It’s common sense, is it not?
3) Just Do It…
Once you have a strong network of real estate investors around you, you are on the right track.
If you have a job, good credit and money saved for a down payment, good for you.
Now it is time to pull the trigger and buy your first rental property.
Far too often I hear from people who talk about buying a rental property yet never do it.
Without officially keeping track of the numbers, sometimes I feel that it is 1 out of 100 people who actually do it. (buy a rental property)
It is often sad to see how so few people do it, yet they talk about it all the time.
So there you have it. These are 3 quick tips for the wannabe real estate investor.
Remember to always:
1) Associate yourself with experienced real estate investors
2) Get your Financial House in order first, and
3) Just do it! Buy that first rental property…
September 16, 2014 No Comments
I hope you are doing well.
If you are a new or aspiring real estate investor, this blog post is a must read for you….
Starting out in the real estate investment business is not easy. Many experience investors will tell you this.
To succeed, you often have to have a lot of things go ‘right’ for you.
One of the most important things that you can do to ensure that you actually become a real estate investor is to surround yourself by like-minded people.
In particular, you need to surround yourself by like-minded real estate investors.
I got a call the other day from a blog reader. He had many questions about real estate investing and he did not know where to begin.
He started off the conversation by telling me how much he knew about real estate investing (implying that he knew a lot).
As our conversation progressed, it was not hard at all for me to determine that he did not have much knowledge at all regarding real estate investing.
If you do not know much about it, that is okay. Don’t pretend that you do!
If you don’t know anything about investing, that is fine. What is not fine is choosing NOT to do anything!
If you are serious about learning about real estate investing and actually becoming an investor then you need to:
1) attend real estate events
2) join real estate investment clubs.
It so happens that a friend of mine is running an event this February 20th 2014 from 6pm to 10pm in Toronto. This event will of course be for the readers who are located in or near the City of Toronto.
The event is taking place at:
333 King St. W
There will be real estate investors in attendance which will allow you a chance to network, mingle and discuss the topic of real estate investing with various like minded people.
If you are stuck and you don’t know where to start, or if you are already investing and want to meet other investors, this is the place to be on February 20th.
For more information, you can email or call the event organizers at INFO@ROIREALTY.CA or 905.990.8800 or 905.580.9645.
ps: If you are trying to buy your first rental property and need some help, sign up for The First Rental Property Newsletter. In the newsletter you will receive tips and tricks from experienced real estate investors on how to buy rental property.
February 13, 2014 2 Comments
I hope you are doing well.
If you are looking to buy your first rental property, you will benefit by reading this post.
Many experienced real estate investors will tell you that you need to manage your rental property like a “business”.
This is great advice because owning and managing one or more rental properties is indeed a business.
According to Wikipedia, a business is:
“…an organization involved in the trade of goods, services, or both to consumers. Business plan and Business model determine the outcome of an active business operation. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to provide service to its customers.”
As per the definition above, ‘providing services’ to customers is what businesses do.
Many businesses have ‘service agreements’ that they abide by when dealing with their customers.
As an example, let’s look at the service agreements that some major banks have with their customers.
Personal and Commercial Account Managers are often mandated to respond to their customers within 2 hours of being contacted. This is a service model that some banks have adopted because ‘customer service’ is very important to these organizations. These banks understand that by responding to their customers in a timely manner, they are providing them with great customer service.
As a real estate investor and landlord, you need to adopt a model similar to the bank’s ’service agreements’.
You may chose not to share your service agreement with your tenant, however, the service agreement is something that you need to understand fully and be committed to.
Here is an example…
A tenant calls you on a Friday morning in the middle of the Summer. They leave you a voicemail message letting you know that the Air Conditioner unit in their house has stopped working, and they have asked that you give them a call back when you can.
It is my firm belief that as a proactive real estate investor and landlord, you should be responding to your tenant the same day in which they have contacted you, no matter what the matter is.
As such in this example above, you should be getting back to them on Friday as well.
The important thing to note is that you may not have any answer for them nor a solution for their problem when you call them back. That does not matter. What does matter is that you are calling them back promptly.
In the example above, you may have no contacts for repair men that you could call to fix or replace the air conditioner. That is okay. As long as you communicate with your tenant and let them know that you are looking after their concern, that is what matters.
Naturally when new landlords do not know how to fix something, or when they don’t know who they can call to come and fix something, they delay responding to their tenant. This should never be done…
So in summary, when your tenant calls you any issue at all, you need to respond to them in a timely manner.
Having a ‘service agreement‘ and responding to your tenant the same day is my advice to you.
If you stay committed to doing this, you will differentiate yourself in your tenant’s mind from all of their past, sub-par landlords.
ps: If you are looking to buy your first rental property, sign up for the First Rental Property Newsletter by entering your email address and name into the top right hand corner of the blog. If you do this, you will receive tips and tricks from experienced real estate investors on how to buy your first rental property!
June 10, 2013 2 Comments