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First purchase going through, and on to the next.

CadenLehman

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Registered
Joined
Apr 23, 2014
Messages
1
Helo, I am 20 years old, and very keen on getting into investing in real estate.

I've just recently been approved for a mortgage on a dual rental in Fort Saskatchewan, Alberta. Ive run into an issue with the last portion of the down payment. Thats not a worry tho, I have a trade, Pipefitting, so i can acquire the last bit through a few paychecks.



My main concern is how i am going be able to purchase my next piece of real estate. The large sum required as a down payment is making me nervous. Im confident it'll get easier in time, and as i acquire more property. But for now, the second one is still concerning me.

Does anyone have any suggestions for me on this? Im open to anything. Id just like to be aware of the options i have. Weather it's a joint venture, or a private lender. Im just looking for some advice. Maybe even a contact if possible. I know its difficult when you're only starting out. But from what i have read so far, i know their are people out their that are willing to assist a young investor. And being my age, i have nothing but time on my side. Im confident i can find an advisor, or even a partner.
 

Sherilynn

Real Estate Maven
REIN Member
Joined
Oct 22, 2007
Messages
2,803
Congratulations! Sounds like you are well on your way.



Consider joining REIN. Joint ventures are a great way to leverage your growing expertise and use other people's money to make $$$ for both yourself and your partner. And at REIN you can learn everything you need to know.



Regardless of whether you join REIN, consider attending the May 10th all-day workshop covering JV's, Lease options, and Seller-financed deals (a fantastic way to invest in real estate with little to no money).



I know that I will be there. :)
 
R

RussellWestcott

Guest
Guest
I'm with Sherrilyn on this one



Many REIN members have build very healthy real estate portfolios, using Joint Ventures and Creative Real Estate strategies.



Sounds like the event upcoming in Edmonton will be what you are looking for... and right in your backyard.



Some details here



If you would like more information you can always call the REIN office and talk to Dominique 1-888-824-7346
 

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
[quote user=CadenLehman]

Does anyone have any suggestions for me on this? ..

Build a modest track record with your own cash. Then do JVs with folks you know, then with folks your JV partners know. REIN teaches you all that. Then, when you are wealthy, invite us for drinks on your new yacht or beach front condo in Hawaii !



[quote user=CadenLehman] Helo, ... Ive .. tho, i .. Im.. Im Id .. Weather .. Im ..


Work on your spelling, grammar, speaking and presentation skills as JV partners want polished well written error-free material !
 
R

rob ohs

Guest
Guest
Great and nice to hear that.You are doing well.Keep going:)
 

Matt Crowley

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REIN Member
Joined
Dec 14, 2013
Messages
980
Im open to anything. Id just like to be aware of the options i have..

That is outstanding Caden, well done.

JV's is one way to grow your portfolio, but it comes with disadvantages too. Notably, managing expectations with folks who have never been "locked-in" with an investment before.

Businesses need cash to grow. You will not make much (if any) money off of monthly "cash flow". One furnace replacement or shingles will wipe out the entire bank fund. That's just the way it goes. So you need to look to other ways to get cash out to fund further investment and business growth:

1. Reinvestment / refinancing: increase the financing on well managed and maintained properties. After a few years of management, you will have a strong understanding of the monthly revenue, tenant profile, and upcoming expenditures. With this confidence comes the ability to make a responsible decision on whether to refinance that property to fund further purchases. This avoids liquidation costs like Realtor fees and legals fes.

2. Sell: this is problematic as if you are selling, it is likely the market is at a high spot which means that you will need to buy at a high spot to keep your money invested. There are other possible strategic advantages to selling however: funding development, moving to an area with different opportunities, or concentrating in advantageous markets.

3. Develop: this is my #1 absolute favorite. This is really my bread and butter. You buy a house that is solid but not beautiful. You put in a legal suite that is inviting and going to attract the best tenants in the neighborhood. Through efficient design and execution, the market value after development is greater than the cost to purchase the home plus all improvements. This creates a margin. From this margin, you can remove the cash required to develop the property and use it again to continue further development. This requires some sophistication using different financing methods, but ultimately comes down to market knowledge. I don't sell my properties so I am totally end-user focused. I build to keep and manage. The better the product, the better your customers, and the less time you spend property managing.

4. Patience: your attitude and approach to investing is just awesome. Yes, it is just a patience game. Right now, my legal suites have a yield of 6%. (NOI/property value). In 5 years that will be 9%, in 10 years it will be 15%. You see where this is going? The longer you hold the better the picture becomes.​
 

Cory Sperle

0
REIN Member
Joined
Sep 1, 2010
Messages
826
I would agree with Thomas and build a track record first. There is no rush especially for someone your age! Find a good mortgage broker and agent that have experience in this area, and save for your next downpayment.
 
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