Whether you've been investing in real estate for years or you're just getting started, you probably have some questions about the process. Here are some of the questions we are commonly asked by new or potential investors:
How do I prepare to become a real estate investor?
The best preparation for real estate investing is education. The good news is that there are numerous free resources you can consume to learn everything you want to know about the housing market. This includes our blog (of course!), eBooks, audiobooks, YouTube videos, podcasts, and social media. You could also consider joining groups like the Canadian Real Estate Investors Association.
What is the best investment strategy?
There are numerous real estate investment strategies to choose from. This includes buy-and-hold, fix-and-flip, real estate wholesaling, real estate investment trusts (REITs), traditional rentals, Airbnb rentals, BRRR investing and real estate investment groups (REIGs). So, which is the best strategy? It all depends on your goals and budget and your current life situation. Many investment companies don't provide plans based on each individual, but it's vital to consider everything in your life in our humble opinion. At Regalway, we work with first-time investors to set them up with a personalized investment plan. After all, empty-nesters should not be investing the same way as a newlywed
Where can I get financing for a real estate purchase?
Buying your first home and building a portfolio requires a lot of money. Sources of financing commonly used by investors include conventional mortgages, FHA mortgages, home equity loans, hard money loans, private money loans, partnerships, real estate crowdfunding and seller financing. The best option for you will depend on your investment strategy, the amount of cash needed, your experience and your creditworthiness, among other factors. If you are interested in partnering with other investors, get in touch. We can set up partnerships for all levels of investors.
The ‘right’ time to buy or sell real estate is determined by factors such as:
Housing market conditions: Is it a seller’s or a buyer’s market?
Time of the year: Traditionally, spring and summer are the best times of the year to sell or buy a house
Economic conditions: If an area has a strong economy, more jobs will be created thus resulting in high demand for rentals
Diversifying your real estate portfolio abroad could create a vacation home for your family, generate income in another currency, protect your earnings from inflation and allow you to enjoy the benefits of a tax haven. However, foreign investment also exposes you to risks like government corruption, economic vulnerabilities, or unfavorable laws relating to foreign investments.
The Regalway Homes blog is one of the most authoritative sources of information on the Canadian housing market. Every week, we publish informative blog posts on a wide range of topics. Follow us to learn more.