Getting Started

[AlexS]

Hello everyone!



My name is Alex and i'm a 19 year old second year university student, looking to some day take all the funds from my dull TFSA account, and place it into a hopefully successful property. I've read many books on business and real estate which thanks to Don eventually brought me here. And so far, I feel I have a good understanding of some of the ways in which I can grab that satisfying 10%+ cash flow. My concern however (and the main reason for this post) is that the more I read the posts on this website the more I understand how much more there is for me to learn.



With that said, my question is, how do I begin? How do I learn? Should I begin heavy into real estate, or research stocks some more and compare the two? Do I learn through practice, or save myself the time by using the guidance of others? Should I focus on urban or rural? Is a 6 or 7% cap rate in a city like toronto better than a 10% cap rate in a town north of it?



There are so many questions to ask and it's quite a nightmare to tackle it all. I was hoping someone out there could lead me in the right direction with their experience.



Thanks,

Alex Schiavone

 

[Thomas Beyer]

Read my blog entry from October 2009 on "5 ways to make money" and "how to get started" .. the rest time permitting.

Work on your education and career FIRST. Add real estate part-time, cash permitting. A great way is to buy a house with your parents or grannie's money, in your own name, in a location with upside, and sublet 2-4 rooms at $500/month. You will learn a lot about people, about property management, about cash-flow (or the lack thereof frequently) about mortgages, about real estate values, about principal pay down, about banks, ... Plus any gain will be tax free on eventual sale.

Enjoy the journey !

 

[housingrental]

Hi Alex

You should keep your money in cash.

If you feel the need to do something more with it consider donating to charity.

 

[MooseHead]

Hi Alex,



I can feel for what your going through as I was there only a couple years ago myself. I would say your best bet is to first finish your schooling. If you're looking for experience while in school, perhaps try finding a job with a property management company during the summer or part time. Your going to want to know as much as you can about PM, especially being in Ontario.



I started by reading up on everything real estate I could get my hands on. I've now owned my duplex for over 3 months and have learned a lot and much of it cannot be learned from a book. However, I was also able to apply a lot of what I've learned from all of the books which was a big help.



Don't overwhelm yourself worrying about learning everything there is to know.. because you'll never get there! Take it one step at a time and celebrate success (even the small stuff) and learn from your mistakes.



I remember wanting to drop out of college because all I wanted to do was invest in real estate. Luckily, I finished my schooling and landed a great job which has allowed me to begin investing.



Cheers,



MH

 

[JoeRagona]

All great posts and advice Alex.



There is nothing comparable to real world experience - and many people fall short because they never 'step into' their wants...you are already ahead of them in your mindset and eagerness to learn.



That said, you have a bit of time to take in and absorb the mass amount of information out there. Your questions can only be answered by you. REIN is a fantastic resource of information and if you can afford it, maybe look at becoming a mail-only member ($100/m) which will give you all the access to the members only area PLUS all the material from the events and audio cds of the presentations etc.



As you begin to listen and take in all the information, you will begin to define what it is you REALLY want Real Estate to do for you, then, your 'what's and hows' will become clearer.



I know it's a vague answer, but believe me, the more you study and filter out all the crap that's out there, latch on to people you like and trust and eventually want to model, things will become easier.



If you need some other help, let me know - it's always great to see people like yourself stepping up to take control of their lives.



Check out my blog at www.engagedinvestor.ca and read up on where I came from and how I switched to Real Estate.

 

[AlexS]

Thank you everyone for all the responses. I've been reading through your blogs and also many more of the posts in this forum and I believe it was a very good idea to join the community here. School and work are very important to me, but my thoughts have been that the earlier I begin investing, the better the long term results will become. I understand that real estate is not a get rich quick process, and I admire that because it requires dedication. Dedication and a frame of mind that I believe I have and can sustain.

 

[DenisEncontre]

[quote user=AlexS]Thank you everyone for all the responses. I've been reading through your blogs and also many more of the posts in this forum and I believe it was a very good idea to join the community here. School and work are very important to me, but my thoughts have been that the earlier I begin investing, the better the long term results will become. I understand that real estate is not a get rich quick process, and I admire that because it requires dedication. Dedication and a frame of mind that I believe I have and can sustain.





I started in RE by going 1/2 with my parents on a home and renting out rooms to cover the mortgage and bills. After a few years I was able to buy my parents out. A few years later I purchased my first duplex and a few years after that another and another. You are absolutely right, Real Estate is not a get rich quick process but with patience and perseverance you will achieve your financial goals. Lag is alive and well in everything we do. You cannot expect to sow a crop today and then harvest a day later. You must wait for the crop to grow until you can reap the rewards.

 

[Nir]

[quote user=AlexS] Is a 6 or 7% cap rate in a city like toronto better than a 10% cap rate in a town north of it?


Hi there, first of all congrats. you may have already made millions just by starting young

Average CAP increases by around 1% for each additional 1 hour drive north of Toronto up to around 5 hours. so if Tor is 5.5%, Barrie is 6.5%, Orillia 7% and Sudbury 9% - hope I'm not driving too fast

Few exceptions on the map and all are guestimates.. obviously



Buying higher CAP usually means more work and achieving your financial goals sooner



Regards, Nir