Hi all, in this capsule, I asked my friend and client Geoffrey who is not his first investment, to give us his 5 tips for successful real estate investments.
Geoffrey bought his first triplex about 2 years ago. He made his first “flip” operation, which allowed him to make a profit of $ 100,000 and thus reduce its financial impact on his property.
Thanks to this operation, Geoffrey was able to invest in a 4plex, with which they made the rent only the first times. Currently, it transforms this 4plex into two townhouses to allow it to regenerate liquidity, this time in order to build a rental fleet.
All these operations in just 24 months. Here are his 5 tips to get started and succeed in real estate.
TIP # 1
Wonder why one wants to invest in real estate. What is the motivation behind all this? Do we want to live in it? Are we looking for an additional income? Is it for his own retirement? We want to leave to his children? It’s fundamental according to Geoffrey to know why; we want to invest in real estate. In other words, identify his motivation.
TIP # 2
Know your investment potential, that is, before you start, get pre-approved to know how much you can invest. Is the job stable and will we keep it, etc.? It’s important to know your true investor potential, so when it comes time to shop around, we already know which investments to turn to. Determine your target in relation to your means.
TIP # 3
Build a strong team, that is to say surround yourself with professionals, and because you can not know everything, manage everything and even less know everything. His website as an example of collaboration: Have a tax contact. To know a good entrepreneur, to have in his team a real estate broker is according to him capital.
He does not recommend embarking on the adventure of solo real estate investing. Also have a good mortgage broker, to shop for the best rates. Finally, also have in his team, or his contacts a building inspector.
In short, know professionals for each trade. According to our interlocutor, it is important to surround yourself to make the right investment. In the end, the investor is a bit like a “generalist”, who surrounds himself with specialists.
TIP # 4
To train you a little, as mentioned earlier, you can not know everything, know everything. According to Geoffrey, it is important to master the basics, one must be able to understand certain situations such as the installation of a French drain, or understand what it is, when his broker tells us about MRB, which is precisely an essential value in the rental investment.
You need to be able to quickly understand some key indicators, so you always at least understand the situation and what the property is worth. Geoffrey, who has had excellent training in France and had the opportunity to work with French investors, says that there are some excellent books and very good resources here in Montreal for this real estate investment.
Finally, he recommends networking in environments like the event where we are, organized by the Real Estate Enthusiasts. See below for interesting links.
TIP # 5
Take the plunge. According to Geoffrey, many people are ready, many have the potential to become very good real estate investors, but few people dare to venture. Many people find many excuses like saying that this is never the right time, according to Geoffrey; it’s always a good time to invest in real estate. Just take the time to find the right investment. We must stop to find excuses and jump into the water and work hard to make a successful investment.
Recommended Website: Bismarck ND Real Estate