Real estate investing isn't easy. Anyone who has owned property, dealt with tenants and renovations, or renewed a mortgage over the last few years knows this. Over the last few months, amid historically high interest rates and costs, I had almost a 30% vacancy rate as a bunch of people decided to move out all in the same month across multiple properties. This left me scrambling to fill vacancies and potentially thousands of dollars out of pocket in missed rents, painting, and repairs.
One tenant even stole a built-in over-the-range microwave, as well as doing several thousand dollars in damage to the apartment!
I'm mentioning all this because when the going gets tough, it helps to remember the reasons why we got into real estate investing in the first place and the importance of having an emergency fund for unexpected expenses. Whatever challenges you happen to be going through, you aren't alone!
That is why we take a long-term view on the investments that we make. Looking at long-term trends, the migration of people, and the economic fundamentals are all key to a successful investment. No one wants another full-time job though. This is why having people on your power team is super important to deal with these issues when they arise. Over the long term, the returns you can get from real estate, divided by the hours you put in, will be more than you can make anywhere else. While financial success is, of course, important, one of the main satisfactions I get out of owning real estate is the people. Creating great quality units for tenants and adding much-needed living space for the people who need it is super important to me.
The very first triplex I rented out, I met a young family that had just arrived in Canada from Central America. Over a period of a few years, I watched their family grow, get settled in a new country, and develop a thriving roofing, siding, and renovation business that I still use on some projects to this day. This wasn't charity work. Real estate is a business, first and foremost. But developing a good working relationship with these tenants, providing them a safe and reliable unit to call home, and using their services on my projects helped give them the start they needed to develop a community away from home.
That's why when I hear our prime minister say, "Homes are for Canadians to live in, not for investors to build financial portfolios with", right after proclaiming that "housing isn't a federal responsibility" with no sense of irony about the effect of his own policies, I get a little upset. Without investors, there wouldn't be rental housing at all for the people who are helping to grow this country.
Have questions about your portfolio or want an outside opinion? Please select the button provided below, and I will schedule a free half-hour call with you to go over your situation! Talking to the right people can really save you money. I really believe that this is the time to expand your network and learn from those around you. I'll be in touch!
I'd love to hear your thoughts on this! Have a great week while working past those obstacles on your climb to success. Let's Grow Together!
Real Estate Investor and Entrepreneur
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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