The first step to getting started in real estate investing is finding out if you have what it takes – personally and financially – to own and maintain more than one home or property. You can learn more about this by reading my previous post here.
Obtaining your first income property doesn’t require that you have huge sums of money available upfront. You don’t need to be a business major or a contractor either (although that certainly doesn’t hurt). What you do need to do is to educate yourself and learn the strategies that make income property investments work best for YOU.
Once you’ve decided you’re ready to invest in rental properties, you need to connect with a realtor who knows the local rental/investment property real estate market. A Realtor® such as Michael Dominguez, who owns multiple investment properties in Durham Region and has helped countless other people get into investment property ownership successfully for many years.
Your next key partner is an accountant. Again, preferably one who is a real estate investor themselves or highly knowledgeable in Canadian property tax law who can help you minimize any tax implications from owning properties in addition to your principal residence. Ask people who already own investment properties for recommendations and referrals as to who they use.
Start Organized and Stay Organized
Keep detailed and copious notes and keep all of your paperwork together. All of your expenditures need to be tracked and easily accessible. If you can’t commit to doing that yourself diligently, hire a bookkeeper. It’s an expense that’s well worth it and that you’ll thank yourself for in the long run.
Keep separate bank accounts solely for your real estate “business”. Have deposits, rent checks and expenses flow through that specific account. The greatest benefit to being organized financially is you’ll be able to see at a glance anytime just how great your investments are doing!
If you’re not quite ready to become a full-on landlord quite yet, alternatively, you could consider investing in an REIT (Real Estate Investment Trust). this allows a more arms-length approach to real estate investing.
REITs typically encompass properties such as shopping malls, office buildings and apartment complexes, which are packaged into portfolios and professionally managed (for a fee, of course). Shares in REITs are traded on the stock market and allow casual investors to get into real estate investing. Many REITs have proven to be solid investments with substantial returns year after year.
The Bottom Line
Weather new investors choose to purchase an income property or acquire shares in REITs, having real estate in your investment portfolio can help you build your passive income cash flow.
Talk to a professional who has experience with real estate investment like Michael Dominguez, or contact him to sign up for one of his upcoming Durham Home Investment Properties Tours at 905-728-1600 today. Like The Michael Dominguez Team on Facebook for more investor tips and property listings. Visit www.durhamhome.ca for available properties in Durham Region and surrounding areas.
Michael Dominguez is a full-time, professional Realtor® with RE/Max Jazz Inc., Brokerage and a member in good standing of the Durham Region Association of Realtors® (DRAR), the Toronto Real Estate Board (TREB), the Ontario Real Estate Association (OREA) and the Canadian Real Estate Association (CREA). Michael is an active investor in real estate and owns cash flow generating properties in Durham Region (Oshawa, Whitby) and in Northumberland (Cobourg). Winner of the Canadian Real Estate Wealth Magazine Realtor of the Year & Real Estate Investment Network (REIN) Realtor of the Year. Author of articles in CREW Magazine. Expert speaker for various investment clubs. Hosts cashflow investment tours. Investment coach of how to find and purchase cash flow properties.