Lawyer, author and speaker to the Real Estate industry, Mark Weisleder, recently wrote a great article on investing in real estate. Investing in real estate has the potential to be very lucrative and financially rewarding; however, if not done properly, it can lead to a financial disaster.
Mark notes 7 tips to successfully invest in real estate:
- Research: Take time looking into the area you are considering buying in. Look for signs of growth, such as big box stores moving in and chain restaurants being added to the area. You can also look at vacancy rates at settlement.org.
- Use a REALTOR® that also is an area investor. See if they can show you their properties and inform you of the rents they receive etc. Also, find out if there are other investors you can speak to. Research the key players you will need to use if you decide to invest (i.e., property managers, insurance advisors, mortgage brokers, lawyers etc…)
- If you own more than four rental units, find a reliable property manager.
- With regards to tenants, be sure to do your homework. Take the time to qualify each potential tenant and check all references.
- Be aware of basement apartments rented to students, as you must ensure that they are legal and comply with fire codes etc…
- Focus on the long term; buy and hold your property so that you can have an income and slowly start to pay down the mortgage.
- If you are investing with others, be sure to have a partnership agreement. If anything happens to the relationship, a partnership agreement will keep you both protected.
SOURCE: Mark Weisleder, http://www.markweisleder.com/11torontostararticle1104.pdf
For any real estate assistance in the Oakville, Burlington, Milton area contact Mary at firstname.lastname@example.org