First Rental Property

Hi Friend,

I hope you are doing well.

If you are interested in buying your first rental property, and have not done so already, you will benefit by reading this post.

There may be many factors that are holding you back from buying your first rental property.

When I first started out as a real estate investor, it took me about one year of doing research and asking questions before I took the leap and bought my first rental property in Oakville, Ontario, Canada.

I have since gone to purchase Oakville real estate, Hamilton real estate and Toronto real estate.

In an effort to help shed some light on why you have not bought your first rental property yet, here are 5 reasons that are holding you back:

1) A Lack of Education

You may know a little about real estate investing, however you don’t know enough.  You read some blogs here and there, but that is where your education ends.  For most new real estate investors this is not enough.  You need to start to talk to people who own rental properties and learn about their experiences.  This action will push you over the edge, so that you feel comfortable enough to buy your first rental property.

2) You Are Not A Member Of Real Estate Investment Groups

Real Estate Investment Groups are the perfect place to meet people who own rental properties.  At these groups, you will find experienced real estate investors as well as real estate investors who have *just* purchased their first rental property.  It has been my observation that real estate investors attend these groups for support.  If you are to become a real estate investor, having support is essential.  You need to have people that you can go to, to ask advice on real estate matters.

If you are not a member of a real estate group, you need to join one.  If you live in the Greater Toronto Area, consider attending my monthly Real Estate Workshop called, Landlord Bootcamp For Beginners.

 3) You Do Not Know A Good Mortgage Broker or Mortgage Specialist

Financing is one of the most important topics that you need to understand when you are buying a rental property.  Everyone’s personal financial situations is different.  Depending on your situation, you may need to consult either a Mortgage Broker or a Mortgage Specialist. If you are in the Greater Toronto Area, the mortgage broker you should contact is Kevin Boughen and the Mortgage Specialist you should contact is Chester Yu.

 4) You Are Not Associating Yourself With the Right People

People are either positive or negative.  Which are you?  This is an important question to ask.  An equally important question to ask is, what about the people that you hang around with the most?  Are they positive or negative?  So, so, so many times I remember hearing advice from people who did NOT own any rental properties.  They would be giving me unsolicited advice on whether or not I should be buying a rental property.  Since you are a new real estate investor, it is important for you to associate yourself with positive people who have experience owning rental property.  Never take advice from someone who has NOT accomplished something that you are trying to achieve.

 5) You Are Not Working With An Investment Focussed Real Estate Agent

A very common questions that new real estate investors ask is, “How do I find a rental property?”  The best answer for this is, “Work with someone who knows where to find rental properties”.  Lots of new real estate investors struggle at the beginning trying to find properties that they think would be a ‘good rental property’.  The truth is that, most new real estate investors have no idea where to begin their search for rental properties.  It is always best to work with a real estate agent that understand rental properties, as well as the market that you are looking to purchase a property in.  Working with someone like this will help you in the long run as it will make the process less frustrating.  The process will be less frustrating because real estate agents with knowledge of rental properties know which types of properties are suitable investments.  Most importantly, they will know where EXACTLY you will be able to find these properties in your market that you have chosen to invest in.

In Summary

If you are a new real estate investor and you have not purchased your first rental property, these 5 factors may be holding you back.  If you put in some effort and work towards overcoming these factors, you will be able to buy your first rental property.

Stay focused and committed!  You can do it!

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember, I am an experienced real estate investor and Licensed Realtor. I help new real estate investors like yourself purchase your first rental property.  If you are interested in buying Oakville real estate, Hamilton real estate, or Toronto real estate, send me an email at, NEIL@FIRSTRENTALPROPERTY.COM, and I will help you get stated!

Hi Friend,

I hope that you are doing well.

One question that I often get asked by motivated, new real estate investors is:

“How do I analyze an investment property.”

When I was first starting out as a real estate ‘investor’, I did not know anything about how to analyze an investment property.  Things worked out for me as I ended up buying my first rental property in Oakville.  I went on to buy Oakville real estate, Toronto real estate and Hamilton real estate.

Analyzing a rental property can be as simple as you want to make it, or as complicated as you want to make it.

How To Make Things Complicated

Generally speaking, new real estate investors make, analyzing a rental property very complicated when they are not truly ready to take action.  There are always many, many reason as to why you should not take action and not buy a rental property.  After all, what happens if:

• You can’t find good tenants?
• The tenants don’t pay rent?
• The furnace breaks down?
• The air conditioner breaks down?
• The hot water tank breaks down?
• The property requires regular repairs and maintenance?

There will always be many reasons as to why you should NOT buy a rental property.

If you are not educated enough on the process of buying rental property, chances are that you will not take action.

Therefore, the analysis of a rental property becomes a mute point, because no matter what the numbers tell you, you will never feel comfortable enough to move forward and make the purchase of the rental property if you are not educated on the process.

How To Make Things Simple

Things become very easy for you as a new real estate investor when you:

• Educate yourself, and
• Simply look at the numbers

Educating Yourself

It is easy for new real estate investors like yourself to take action once you have educated yourself on the process of real estate investing.  The more educated you are, the better.  The less education you have obtained, the more difficult of  a time you will have with moving forward and making the purchase of a rental property.

Simply Look At The Numbers

Analyzing a rental property is very easy.  I will say again, analyzing a rental property is very easy.  People make the task of analyzing a rental property more  complicated than it actually is.  It is not complicated at all.

What you have to do is take a look at what the revenue and expenses.

You need to examine these figures on a month basis.

For example, if the total revenue (rent) for a rental property is $1,500/month, and the total expenses are $1,100/month, this means that the rental property has a positive cash flow of $400/month.

You get the ‘cash flow’ number by subtracting the revenue $1,500 from the expenses $1,100.  ($1,500 – $1,100 = $400)

There are always other factors to consider when purchasing a rental property.  For example, the location of the rental property is a big factor.  You can refer to these blog posts for further information on, how to pick the right location:

How To Buy A Rental Property In A Great Location

How To Buy A Rental Property In The Perfect Location

How To Buy A Rental Property In The Right Location

 In Summary

At the end of the day, analyzing a rental property is not complicated.  You need to simply take a look at the revenue and expenses of a given rental property.   You also need to remember to not over complicate things because analyzing a rental property is easy to do.  Make sure that you educate yourself regarding real estate investing, so that you are ready to take action when the right property comes along.

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember, I am an experienced real estate investor and Licensed Realtor.  I help new real estate investors like yourself purchase their first rental property!  If you are interested in purchasing Oakville real estate, Hamilton real estate or Toronto real estate, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started!

Hi Friend,

I hope that you are doing well.

I get asked a lot of questions from new real estate investors who are looking to purchase their first rental property.

A question that I get asked on occasion is:

“How do I buy a rental property?”

When I was first starting out as a real estate investor over 7 years ago, I had a limited understanding of how to finance my first rental property.

With the knowledge that I have gained since then, I have gone on to purchase Oakville real estate, Hamilton real estate and Toronto real estate.  Most importantly, I have been able to successfully finance all of these purchases.

There are different methods in which you can finance a rental property.  However, the most important method in my opinion is the method in which you leverage your principal residence.

How to Leverage Your Principal Residence

Mortgage and financing rules are different depending upon which country you live in.  In Canada, you were once able to leverage your principal residence to 80% of the Loan To Value (LTV).

Let’s look at an example to help illustrate this point:

Example

You own a home and the value of that home is $500,000.

You have an existing first mortgage on the home in the amount of $100,000

If you take 80% of the value of your home, you get a figure of $400,000 ($500,000 * 80%)

This means that if you get your bank or lender to place a ‘secure line of credit’ on your home, you used to be able to get 80% of the LTV.

Meaning that the maximum ‘loan’ that your bank/lender would be willing to place on your home would be $400,000.

So now, if you place a secure line of credit on your home, the maximum amount here would be $400,000.

However, you must also remember that there is a $100,000 first mortgage on the property as well.

All this means is that you subtract $400,000 by $100,000, which equals $300,000.

$300,000 is the amount of a secure line of credit that you would be able to get.

*Note:  80% LTV used to be the guideline in Canada.  There have been recent mortgage rule changes implemented by the Federal Government which have changed this value*

What Does This Mean?

The bottom line as to what this means is that you now have $300,000 to invest in real estate.  This $300,000 can be used as a down payment towards your first, second or third rental property.

Once you have figured out where your down payment will be coming from (you just have), you then have to obtain a 1st mortgage for your rental property.

All things being equal, mortgage brokers in Canada are able to grant multiple mortgages to an individual.  The Big Five Banks in Canada, are limited as the the number of mortgages that they can issue to an individual.  Therefore, the mortgage broker industry often services real estate investors who are purchasing multiple properties.

In Summary

Lots of new real estate investors stress out as to where to find the money to buy a rental property.  For many of them that own a principal residence, chances are is that your potential down payment was sitting there all along.  You just need to know how to uncover it, by properly leveraging your principal residence.

Happy Investing!

Neil Uttamsingh

ps: Remember!  I am an experienced real estate investor and Licensed Realtor.  I help new real estate investors like you purchase your first rental property.  If you are looking to purchase Oakville real estate, Hamilton real estate or Toronto real estate, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started!

Hi Friend,

I hope you are doing well.

I am constantly asked by new real estate investors to:

“keep them in mind”

If I come across any…

“good deals”

Well this is one of those times.

For those of you that have asked me to “keep you in mind”, I am returning the favour.

Below are some details in regards to an investment opportunity in Toronto.  If you live in Toronto, or live in other parts of the world and are looking to invest in Toronto real estate, consider this opportunity.

If you are looking to buy your first rental property, and have the funds to invests, this option might be right for you.

As an experienced real estate investors and  Licensed Realtor, (with connections I might add), I have access to pre-construction condo units that are selling below market value.  Key word here is… below market value.

If any of the details below interest you, send me a message at NEIL@FIRSTRENTALPROPERTY.COM for further details.

Here are the details below:

A One Night Only VIP Condo Event you will not want to miss!
Live Mortgage Free for a Year*

INVESTORS
EARN 16.6% RETURN PER YEAR*

One Night Only This Thursday November 29^th at 7pm

The Royal Suites of King West Village

VIP Prices from $241,900

Own or Invest with Positive Cash Flow from Day One!

It’s Downtown’s Hottest and most Desirable area. King West Village is filled with critically acclaimed restaurants, spectacular night life and the TTC out your door step. Located between Bathurst and Spadina, King West Village runs to the North and South sides of King St. It’s where the action never stops!

7PM Sharp

Thursday November 29^th, 2012

One Day Only

Priority Registration

111 Bathurst Street, Toronto M5V 2R1

(corner of Bathurst and Adelaide)

To Register reply to: NEIL@FIRSTRENTALPROPERTY.COM

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember!  I am an experienced real estate investor and Licensed Realtor.  If you are looking to buy your first rental property and would like to buy Oakville real estate, Hamilton real estate or Toronto real estate, send me an email at NEIL@FIRSTRENTALPROPERTY.COM, and I will get you started in the right direction…

Hi Friend,

I hope you are doing well.  As a new real estate investor, I know that you have many questions as to how to get started with investing in real estate.

One question that you may have on your mind is, ‘Where is the best place to buy a rental property?’

If you have that question on your mind, you are not alone.  In my experience, that is one of the most common questions asked by new real estate  investors.

When I first started as a real estate investor, I did not know where exactly I should be purchasing my first rental property.  I ended up purchasing Oakville real estate, and have since gone on to add to my portfolio by owning Hamilton real estate and Toronto real estate.

Another very important questions that is asked by new real estate investors is:

Is The Cheapest Property Always The Best Deal?

My answer to this questions is:

It depends…

It depends on a couple of important variables, and these variables are…

1) The tenant profile 

and

2) The condition of the property

The Tenant Profile

Some new real estate investors are attracted to buying the ‘cheapest’ property in a given city of town because they have a limited down payment.  More often than not, when you are started out as a real estate investors, you do not have lots of money to put down towards a down payment.  Some people begin to think that in order to ‘get into the game’, they have to buy the ‘cheapest’ property because they are limited by how much money they have to put down.

This is the wrong mode of thinking. Just because a property is ‘less expensive’ than others, does not make it the best option for you to purchase.  In many real estate markets, the ‘cheapest’ properties have the most challenging tenants.  Cheap properties bring with them cheap rents.  When you have ‘cheap’ rents, you can very possibly have high maintenance, and difficult tenants to deal with.

If you are limited by how much money you have as  a down payment, never make the error in purchasing a ‘cheap’ property simply because that is your only ‘option’.

The condition of the property

All things being equal, cheap properties are cheap for a reason.  The fact that they are less expensive can stem from the fact that they are in poor condition.   You should avoid buying  a rental property, and especially your first rental property if it requires massive repairs and maintenance.  Cheap properties require work to be done to them.  Unless you have lots of experience with repairs and maintenance on properties, avoid buying one that is in poor condition.

In summary

The lesson to learn here is as follows:

If you are a new real estate investor and you have a limited down payment for the purchase of your first rental property, don’t rush the process.

Do not feel that ‘in order to get into the game’ you have to purchase the cheapest rental property out there, because that is all you can afford.

Take special note that with ‘cheaper’ properties you purchase, other issues arise.

Cheapest is not always the best.

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember, I am an experienced real estate investor and Licensed Realtor.  I help new real estate investors like you purchase their first rental property.  If you would like to buy Hamilton real estate, Oakville real estate or Toronto real estate, send me a message at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started.

Hi Friend,

I hope you are doing well.  One of the most common questions I get asked by new real estate investors is,

‘Where should I buy a rental property?’

When I was first starting out as a real estate investor, all I knew was that I wanted to buy Oakville real estate, and that was about it.  I did not know any other details other than that.  Since then, I have expanded my real estate portfolio and I own Hamilton real estate and Toronto real estate as well.

If you are a new real estate investor and are wondering where YOU should buy your first rental property, you need to read this blog post.

The simple answer to this question is:

“It depends”

In my mind, it depends on 2 major factors…

These factors are:

1) Where you live 

and

2) How much capital you have to invest

Where you live

My answer to all new real estate investors is the same.  My answer is, “Buy a rental property close enough to where you live so that you can self manage the property’.  This does not mean that you have to buy your first rental property in the same city or town you live in.  The property you purchase can be in a neighbouring city or town.  The most important thing to consider here is that the property needs to be close to you so that you can manage it YOURSELF.

How much capital you have to invest

This is a tricky point because a lot of new real estate investors don’t understand this concept right off the bat.  Depending upon how much capital you have to invest will definitely influence where specifically you invest.  Here is a clear example to help illustrate this point:

CASE STUDY

You have $100,000 to invest in a rental property and are trying to determine between 2 towns, which is the better town to invest in.  The towns are, Town A and Town B.

Town A

Town A has rental properties that cost on average $500,000.  The appreciation of properties in Town A year over year have averaged 7%. The tenant profile in Town A is low maintenance and the type of tenants that rent are professionals earning above average incomes.

Town B

Town B has rental properties that cost on average $150,000.  The appreciation of properties in Town B year over year have averaged 3%.  The tenant profile in Town B is high maintenance.  The type of tenants that rent are individuals with sub par credit history.

If you are a new real estate investor, take note.  You invest your money in Town A.

You invest your money in Town A because…

• You will have ‘easier’ tenants to manage, and,
• You will experience greater property appreciation.

Hi Friend,

I hope you are doing well.

I have had the privilege of speaking to and helping many real estate investors from all over the world.

Most people who are looking to buy their first rental property take their time to accumulate as much information as they possibly can.  This is a smart approach as owning a rental property is a big responsibility.

There is a lot to consider when you are buying a rental property.  You definitely want to take your time so that you do not make any errors along the way.

I have also met a handful of people that want to rush into buying rental properties.  I once came across one fellow who purchased a large amount of properties in a very short period of time.  Later to realize that owning rental properties was not something that he liked, nor wanted to do.

My advice to you today is simple.

My advice is…

When buying a rental property, you must remember to take your time and make the right decisions for yourself. 

Owning a rental property can be a great investment.  It can be a great way to increase wealth or it can be a great way to generate some extra cash flow.

Although the benefits of owning income real estate are great, rushing the process and buying a rental property fast, could result in you:

• Buying a property that doesn’t cash flow
• Buying a property in the wrong area
• Buying a property with the wrong tenant profile
• Losing Money
• Wanting to sell the property after a short period of time
• Becoming discouraged
• Going to court with your tenant due to mismanagement of the property

Be wise. Take your time, and don’t rush the process.

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: If you need help buying your first rental property, email me at neil@firstrentalproperty.com.  I will answer any questions you have.

pps: Also remember that First Rental Property is a Realtor.  We are representing buyers and sellers worldwide with the purchase and sale of real estate.

[youtube]http://www.youtube.com/watch?v=IXBBTEOwdcQ&list=UUAQKmDw-TSCMWJrDF-pRs3g&index=1&feature=plcp[/youtube]

Hi Friend,

I hope you are doing well.

The biggest thing that new real estate investors need when they are first starting out is help.

Buying a rental property can be a daunting task.  You need to be able to ask questions and find the right answers to your questions.

Since the majority of the general population does not own a rental property, that means that there are select locations in which you can obtain the answers to your questions.

Some aspiring real estate investors want to take action and buy a rental property fast.  If you are someone that fits this profile, good for you!

A recent realization I have made is that new real estate investors can speed up their decision making process with regards to purchasing a rental property by attending real estate workshops.

How will Real Estate Worshops Help You?

It is very possible that if you attend real estate workshops, there will be people in attendance that have experience with real estate investing.

The people with the experience will sometimes be the organizers of the workshop, or sometimes the participants in the workshop will have experience with real estate investing.

A real estate workshop is a very good place to learn information in a small and comfortable setting.

If the organizers of the workshop have a lot of knowledge with regards to real estate investing, you will be able to learn a lot by attending.

I have seen from my own personal experience that when new real estate investors are able to ask questions in a face to face session, they are able to speed up the process and buy a rental property faster.

This is of course, given that they are able to get all of their questions answered!

So, where do you go from here?

So if you are a new real estate investor wanting to buy your first rental property, this is what you need to do…

• You need to jump start things, and start attending real estate workshops.
• By doing this, you will be able to get the answers to some of your questions.
• If you attend enough workshops, hopefully you will be able to get all of the questions answered in a face to face setting, by people with lots of experience with real estate investing.

What First Rental Property Is Up To…

First Rental Property has started to run workshops in the Toronto area for new real estate investors.  If you are in the area and are interested in coming to an upcoming workshop, send me a note at neil@firstrentalproperty.com

For all of my readers all over the world, especially in the US, if you need any help in buying your first rental property, send me a note at neil@firstrentalproperty.com and we will get you started in the right direction.

Happy Investing!

-Neil Uttamsingh

ps: First Rental Property is now a Realtor and is helping people worldwide with the purchase and sale of real estate.  If you have any questions, or need help getting started, email me today at neil@firstrentalproperty.com

pps: here is a short video of a Real Estate Workshop that First Rental Property ran this week…

[youtube]http://www.youtube.com/watch?v=9eRGfL__GNA&list=UUAQKmDw-TSCMWJrDF-pRs3g&index=1&feature=plcp[/youtube]

Hello Friend,

I hope you are doing well.

I often speak to new real estate investors who are trying to figure out how to buy their first rental property.

There are many factors that sometimes stall  new real estate investor from taking action.

One of the biggest factors that stalls new real estate investors is deciding on WHERE to buy their first rental property.

New investors often experience information overload, because there are so many options as to where you should buy your first rental property.

Unfortunately I see it far too often.  People can’t make up their mind and spend so much time debating which area they should by their property in.

My Advice to you…

If you are a new real estate investor and you are looking to purchase your first rental property, my advice to you is to buy a rental property in a proven area.

What this means is that you need to buy a rental property in an area that has experienced good appreciation, has a good tenant profile and is in an area in which there is potentially good cash flow.

The biggest problem that new real estate investors face…

The biggest problem that new real estate investors face is that they don’t listen to the advice of experienced real estate investors.  This is not meant to be harsh critisism, but unfortunately its reality.

I know this because I have given lots of advice to new real estate investors over the years.  Some new investors get caught up on which area to purchase in, and they debate this topic back and forth for weeks, months, or even maybe years.

They never end up taking action, and time passes them by.

The Answer is Simple

The answer is simple.  As a new real estate investor you need to buy a rental property in an area that other real estate investors have bought in.

The key factor is that the real estate investors that have purchased before you, have to have been successful purchasing properties in this given area.

If the real estate investors have been successful, this means that they have bought properties that have experienced appreciation, have a good tenant profile and have potentially good cash flow.

If you are a new real estate investor…

If you are a new real estate investor don’t complicate matters.  Buy a rental property in a proven area.  An area in which other real estate investors have been successful purchasing in.

Happy Investing!

-Neil Uttamsingh

ps: If you looking to buy your first rental property, let us help you with the process.  First Rental Property is now a Realtor and can help you with any real estate transaction.  If you are thinking of buying, send me a message at NEIL@FIRSTRENTALPROPERTY.COM, and let us guide you through the process.  Become an action taker and buy your first rental property today!  Contact me at NEIL@FIRSTRENTALPROPERTY.COM

Hello Friend,

I have some exciting news for you.

Effective immediately, First Rental Property will now be representing people worldwide with the purchase and sale of real estate.

I, Neil Uttamsingh, the Creator of First Rental Property am now a Realtor and will personally be helping people buy their first rental property worldwide.

I will be looking after the purchase and sale of real estate for First Rental Property in Ontario, Canada.

For all of my readers all over the world, I have a team of Realtors with investment knowledge who will be able to work directly with you and help you buy your first rental property.

If you are a reader from Alberta, New York, Texas, West Virginia, New Jersey, England, Australia, or South Africa, or anywhere else in the world, First Rental Property will represent you with the purchase and sale of real estate, and most importantly, with the purchase and or sale of your first rental property.

Since it’s inception in 2009, First Rental Property has evolved from an educational blog to an entity that will now represent people world wide with the purchase and sale of real estate.

I encourage you to continue to send your questions in to me, and I will continue to answer them.

If you are looking to buy your first rental property, send me a message at neil@firstrentalproperty.com,  Tell me where you are located and when you are looking to buy your first rental property.  I will get you in touch with an expert Realtor with real estate investing knowledge.  This person will be able to guide you step by step with the purchase of your first rental property!

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Don’t forget to email me at neil@firstrentalproperty.com if you are looking to buy your first rental property.  Tell me where you are located and I will get you in touch with a hand selected Realtor who will be able to help you buy your first rental property!!!

[youtube]http://www.youtube.com/watch?v=NZrgzpmUvAo&feature=channel&list=UL[/youtube]