I want to start… but how?

Question

As someone who has just turned to 19, I have always wondered how people get rich out of properties. At first, I decided to become a doctor just because of the incentive of wealth and got accepted from many prestigious universities of Canada for Biological Chemistry.

However, I knew myself very well that I never would allow myself to work under someone else; therefore, I decided to create both my own financial stability and independence by focusing on something more real and catchy for me. I believe in myself and I know that I am going to succeed in the long-term, because of this, please do not try to fade my motivation by your ideas regardless of your expertise in this field.

What I do want to learn is the best way to start to this long journey. I mean… what type of property should I choose as my first house (please consider the fact that I am in Canada)? How can I calculate the cash-flow and obtain a high one without the process of BRRRR? Can I agree with an agent to take care of the building (taxes, repairs, etc.) while still obtaining a good amount of cash-flow on the other hand? Should I go for an under 500k house to avoid high down-payment for my first building? How should I analyze a house (in a good condition) that costs 999k dollar in Toronto? Or should I invest in another province?

I am obsolutely sorry for these disturbing questions, but it would really help me if you may help me with these issues. I am looking forward to hear from you.

Best Regards,

Halid

I am obsolutely sorry for these disturbing questions, but it would really help me if you may help me with these issues. I am looking forward to hear from you.

Best Regards,

Halid

Dan Sheeks · Answer

Hey @Halid Parladi!

Congrats on your ambition!

Bigger Pockets recently published a book that's perfect for you! It's called First to a Million. You should check it out! If you have questions about the book, let me know. I am the author. :-) Also, check out this forum post.

In addition, DM me if you are interested in an online community of young, like-minded individuals.

Best of luck to you!

James Wise · Answer

House hack dude. You're gonna need to pay a mortgage on the roof over your head. May as well make that mortgage your own as opposed to your landlord's.

Hadi Hussaen · Answer

@Halid Parladi, fellow Torontonian here.

^ Absolutely agree with previous comments - these days, knowledge is all available for free and it's up to you to find the right resources that resonate with you to take action.  Bigger Pockets books, podcasts and youtube channel altogether is a godsend.

Toronto has an extremely high barrier to entry for new buyers - I don't recommend you start there, especially in the down market right now. Before deciding what you can buy, I highly recommend figuring out what you can afford, by speaking with a mortgage broker.  Once you determine your purchase price/goals, you can then determine what markets are available to you.

You're 19 (amazing), be patient and learn as much as possible because the right 1st purchase can launch you forward in your career - but the wrong 1st purchase can deter you away.

I'm happy to chat anytime to help you determine your options in Toronto or Ontario !

Cheers, Hadi

416-875-0735

Jason Yong · Answer

Appreciate the recommendation for Canadians! So this book from 2009 still has useful info?

Zorya Belanger · Answer

I agree with the other replies, as far as reading books. For Canadians, I recommend Real Estate Investing in Canada by Don Campbell.

Yes, there are ways to invest without doing brrrr. That’s just one strategy. Do not buy a million dollar house as your first rental property. You may have to invest out of province for numbers to work. Also, it’s a mindset that it will be a looong journey. There are people who have built massive portfolios in under 10 years. That’s not a long time.

Abner Sanchez · Answer

Whats up man. I'm in the exact same position as you. I first advise you to submerge yourself with the real estate and finance world. LEARN LEARN and LEARN. It's important for people our age to read up on books, listen to podcast or even talk to experienced Investors to learn about real estate and all that is has to offer. Because believe me, there ARE SO MANY DIFFERENT WAYS you can invest in. Find the one that is PERFECT and only perfect for you. For me, my very first investment Property will try to be a Triplex (or a quad if i'm lucky) that I will be house hacking and managing myself. It's important to learn the ropes and what comes with investing in such a big asset so you don't get overwhelmed when problems come your way. But again, I live in one of the best markets in the U.S.A (CLEVELAND) so it is up to you what step you take.

Alex Evans · Answer

Hey @Halid Parladi

Welcome to Bigger Pockets.

With you just starting out I would point you towards all of the resources that Bigger Pockets has to offer.

There are a number of books to read, calculators, and the forums provide a great deal of information for someone who is just starting out.

Your motivation is great and it will take you places in this industry only some people can imagine!

I would be more than happy to help answer any questions feel free to reach out!

Jason Maguire · Answer

Hi Halid,

As a beginner, i'd recommend taking a dive into some of the books that Bigger Pockets has to offer. No one above can really answer those questions besides yourself.

The BP community has multiple books on beginner rental investing, BRRRR, Flips, Wholesaling & more. Take time to read these, understand how these strategies work, which ones you like best & then decide what "journey" is best for you. There's also many free articles/ blogs/ YouTube videos on how to properly analyze properties.

Coming into a forum & asking other people what to invest in is never a good idea. Do your due diligence as your still young & have plenty of time to figure things out. Good things take time!

Best of luck to you.

I want to start… but how?

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