Updated: Jul 21
Everybody has a different opinion on what makes a good real estate investment. We all have different goals and aspirations, different skill sets, risk tolerances, and situations. But the one thing we have in common is the fact that we are seeking freedom through real estate. Investors want their real estate portfolios to provide them with the freedom and security to live the life that they want and to provide security for their futures. With that in mind, let’s build out a list of some of the important things to consider from a personal standpoint before jumping into the first deal that you come across.
Set your goals. What are you trying to accomplish with real estate investment? I want to have freedom to travel. I want to spend time with my family and watch my kids grow up. I want to build a future for them, and I want to provide value to the marketplace by building high quality, safe rental units. These goals point me to a specific type of investment that works for me. I want my real estate to fund my life, not the other way around. For me, I’m looking for opportunities to create units that will provide monthly cash flow to fund my goals in life. Again, this may not work for everyone. If you’re planning for retirement and want to have an asset that provides value 20 years down the line or if you are a more hands off or risk adverse investor, maybe a nice pre-construction condo or town-home fits your bill, rather than a flip project or renovation deal. At the end of the day, the principal is this: You want your properties to fit your personality and your goals. Otherwise, you won’t last long as an investor and you’ll grow to hate your portfolio.
How well do you know the area that you are investing in? Do you have a team on the ground to help you through the hard times? There will always be issues that arise at inopportune times. You want to have reliable people that you can trust to help you out of a jam. Remember, if you are afraid to go on vacation for fear of something going wrong at one of your properties, you need to re-evaluate your plan and put steps in place to create freedom.
This seems obvious, but it pays to buy properties that your ideal tenant will live in. If you want high-quality, working-class tenants, don’t buy bachelor apartments in the worst area in town. Identify who you want to rent to, and then buy them a house.
Outsource or systematize everything you don’t want to deal with. Automatic bill payments and 3rd party property management will take a lot of stress off your shoulders and will free up a ton of your time.
Put time into personal development. Read books and develop new skills. Grow your abilities as a leader and as a coordinator. People follow confidence and knowledge. Tenants and contractors will respond better to you if you are reliable and responsive to their needs and pay your bills on time.
Have fun! Investing in real estate is a journey. There really is no finish line, it’s about who you become in the process, the skills you develop, the lives you change and the freedom you can create for yourself and your family in the process.
Jonathan Beam is a real estate investor in the Niagara region who is passionate about helping you achieve financial freedom through real estate. He works with new and experienced investors to formulate a plan that fits your specific situation and provides market guidance and consultation on the best places and strategies to pursue within the Niagara Region. Book a free, half hour no obligation consultation to see how he can help you to achieve your goals. His travels are available at www.realestateandrepeat.com
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