I present you with information that I believe is relevant to know when you want to start investing in real estate; whether it is in a flip, an apartment building or a project where you are an investor or partner!
- Don’t listen to all the headlines
The first thing to keep in mind is that real estate investment is a local sport. So don’t get caught up in the emotions of the headlines predicting a disaster anywhere in Quebec or Canada. For example, they announce that bank repossessions have increased by 100% when in reality it has gone from 0.2% to 0.4%, which is not much considering the number of houses in Quebec. You must ignore the news headlines and do your homework.
- Study the region of your real estate investment.
You must obtain the data from the region yourself or seek the assistance of people who can help you in this area. Some regions are experiencing significant job losses and population decline, while other regions are experiencing an economic boom with a shortage of housing and thus full potential for real estate investment. This is indeed the case in Sept-Îles and Val-d’Or. Use the local real estate boards, CMHC, Centris or any other institution that can provide you with this information directly on the Internet. You can also use Canadian census data for population trends by the community.
- Match your investment to demand
Housing is a necessity; everyone needs a home to live in. Concentrate your investment in the type of building most in-demand in the area where you want to invest. This will greatly reduce your risk, even in stormy weather when the economy is not so good. Several millionaires have accumulated fortunes thanks to such recessions, think of Rockefeller or Carnegie.
- Surround yourself with good people
Stop listening to your family, brother-in-law, and friends! Listen only to those who have been successful in real estate investment and who have exactly what you want. Surround yourself with a good team of specialists who will be able to advise you and who have the skills to talk about it. Let those who have negative comments talk among themselves; they are often people who know nothing about anything and who would never dare to follow in your footsteps, so paralyzed by fear.
- Take action!
To be successful, you have to take action. If you’re waiting to get the perfect revenue property, with no repairs to do, at a great price posted on the MLS network, you’ll probably be waiting a long time. You have to make offers and stop analyzing. Real estate is a numbers game. If you analyze 100 buildings, you will write 10 offers to see 5 that will be accepted, and finally, only one will be concluded. So… take action!