At Regalway, we help Canadian property investors at all stages of their investing careers. Recently, we’ve been helping some clients move from investing as a side project to becoming full-time property investors. Here’s how we help people to understand whether they are ready for that commitment.
Obviously, you need to know if you can afford to invest in more properties while also making enough profit to live comfortably.
There are various options for financing a second home or an investment property, but purchasing a third property for the sole purpose of investment is a different situation. It’s unlikely that a bank will approve a third mortgage, and it’s probably not in your best interest to go that route. Even if you apply for a home equity line of credit (HELOC), you will find it challenging to secure financing if you already have two properties with some kind of financing.
There are always ways to get around the rules and secure a loan, but it’s not advisable. At Regalway, we help you to build a secure real estate portfolio that doesn’t stretch you too thin or make it so that a dip in the real estate market gets you into insurmountable debt. Based on your finances and goals, we can create a strategy for you to become a full-time investor through partnerships or as an independent.
As a passive investor (i.e., someone that is working a full-time job and investing on the side without committing much time), you might be surprised at how much time you’ll need to commit to full-time investing.
Full-time investing is a juggling game. You will need to ensure your current properties are well kept and also rented while keeping one eye open for opportunities to sell or buy a property.
You can hire a property manager to keep the properties you have, but that will eat into your profits significantly. Weighing the cost of the property manager’s time into your strategy is something we can help you with. There is a fair amount of customer service involved in property management, so if that’s not a strength of yours, a property manager is a worthwhile investment.
How Much Do You Know About Real Estate?
At Regalway, we’ve been in the real estate investment industry for many years, through amazing highs in the market and devastating lows. There are lessons you can learn from reading the news, watching the markets, and understanding the predictions. But nothing will match the lessons you learn through experience. Making it through a recession, analyzing your mistakes, and knowing what to do when you realize you’ve made a bad investment brings you the know-how to ensure a long and prosperous career in real estate investing.
If you don’t have these experiences under your belt yet, lean on a team that does! At Regalway Homes, we have the expertise you need to help guide you through the process and make the leap from a passive investor to full-time without compromising your finances, your goals, or your happiness. Use the free consultation offer below to reach out to us!