Hey everyone, I am 25 and totally new to real estate investing. I am looking to purchase my first property in Ontario to set me on the right track moving forward in real estate. I have been doing a lot of reading, research, listening to podcasts and YouTube to gather as much as I can to ensure I know what I am doing before getting my feet wet.
I feel like I have an idea of what I need to do, which is:
1. Speak to the Bank and find out how much I can get pre-approved for
2. Speak with a real estate agent in the are I am looking to purchase in. (Which is Windsor primarily or Sudbury as a second location)
3. Establish some team, of a real estate agent, a contractor, a lawyer, a accountant, property manager (or Company).
4. Then finalize the deal and proceed to doing a renovation if needed, then finding someone to rent it and setting up a lease with them.
I believe these are the steps I should be following in that order more or less.
Any feedback to would be truly appreciated acknowledging I am on the right path or anything that I missed and would help me moving forward.
Hey Shayne, I'll tell you what I would have done differently when I started. I would put only 5% down to keep as much money liquid as you can. Make sure you real estate agent has experience and knowledge with real estate investing and the market. House hack your first property. Look for potential in properties ie. larger lot size, can you force appreciation, location, property sqft, does it have a shed/garage etc. (not sure the rules in Windsor but some places you can turn it into a backyard suit) Finding good contractor is the hardest part I don't have much tips there. But when your renting make sure to do your due diligence and do a through screening, I got caught up in wanting to rent mine right away and didn't do a proper screening and it was the wrong move in the long run. There are leasing agents who can do that for you to save you the headache but I recommend doing it and managing it on your own first for experience. know your lease inside out and add a schedule A with all your rules and expectations that the lease does not cover. I've learned a lot and still have lots to learn. Its not as easy as it looks but definitely worth it if you have the passion for it! Best of luck!
I can help!
Be extremely cautious. Landlords in Ontario are getting absolutely demolished right now. Check out the Facebook group Ontario landlords for details.
I’d start by reading Don Campbell. Kost of his stuff.
Thank you all for the exceptional advice, I truly appreciate it as it has helped me get a bit more of a clear path of the direction I would like to go in on this journey that is just beginning for me.
@Shayne Hylton the first step (which you may have done but did not share) is to identify your goals and your 'why'. Why are you investing in real estate and what goals do you have? "Set me on the right track..." is not a strategy. Start with your end goal in mind and be very clear on how your first purchase contributes to this goal.
You have the steps covered. Now just go do that and you will learn a lot along the way.
If you want a referral to a good Windsor Agent - just let me know. Good Luck