Inspired by the Breakthrough real estate investing podcast hosted by Rob Break and Sandy Mackay
Welcome back to our series on getting started as real estate investors. As a new investor, there are a number of things you can do to avoid losing money. Weíve found some of the best tips and tricks for new investors:
Tips for real estate investors partnerships
- Most large projects are financed and developed as a result of real estate joint ventures. When joining a venture partnership, bring someone on who has the skills or resources that you donít have. A real estate joint venture (JV) is a deal between multiple real estate investors to work together and combine resources to develop a real estate project.
- Do not bring on partners when flipping a home, until you understand the business model
Tips for Financing Your Project
- Remember that tIme is money when you are flipping a property
- Know your profit margins.†
- When investing, If you donít lose any of your initial investment, consider it a win, everything is educational and you will learn a lot by doing†
- If you decide to flip a house with someone, do not do all the work yourself because you will tire yourself out. Budget for the right contractors.†
- Take the plunge, donít get scared away from making your first investment†
- If you donít buy at the right cost in Hamilton, then youíll have to hold your property until the market appreciates and can give you a healthy return on your investment
- Ask yourself this, is it your intention to flip the property right away or are in a position to keep the property over time? Carrying a property is often the better option.
- Avoid getting emotional about a property. Some investors love the idea of a certain property for one reason or another, then become emotionally invested, realize their numbers are too tight and try to budget their way to success. Cutting costs on your renovation is not the best way to go, itís often better to make money by purchasing low rather than trying to save money during the renovation phase†
- Create systems that are duplicatable, so each property is easier and easier to manage
- Run your numbers cautiously, especially if you are using private money
- Have a contingency plan, do not rely on Plan A.
- If you are buying a property, get it under contract first, insert have a due diligence clause and bring a contractor through who is going to do the work, so you have a more realistic understanding of your costs
- Always be conservative in your estimates
- Donít forget that every property presents a different challenge†
Challenges are bound to arise when you start investing for the first time, but try not to get discouraged by the process. There are large financial rewards for those who are willing to invest for the long haul.
Are you ready to become a real estate investor? We would love to read your thoughts in the comments below.
Look out for more of our blogs about investing in Hamilton real estate.
At the Mackay Realty Network, we specialize in building generational wealth and would be happy to help you take the next step. Meet our founders: