Looking for some advice - first timer

[Ramda]

Good afternoon, I am here looking for some advice for a first time investor. I've never owned a property before for any purpose. I've been reading about house rehad, flipping, renting, lease to own, etc.



I do not have any capital and that was what led me to this website.



Where would I begin here to get the knowledge and advice to start a real estate career. I work full time, but I really am building zero wealth. I'd like to begin to get involved so that over the years I have something to show for my efforts.



Does anyone have any advice of where I would start? I have good credit but no equity.



thanks for any tips or advice



Mark

 

[2ndstory]

Welcome here! The first step is to educate yourself by doing some reading. Real Estate Investing for Canadians for Dummies was the first book I picked up and it was a great intro. After that, there are a number of other good books including ones by Don Campbell and the Peter Kinch book on building a real estate portfolio. Just make sure the books you read are Canadian content.



After that, I would suggest you visit a bank or mortgage broker and see what you could qualify for based on your credit and income. Hopefully you have some cash or access to cash that you could use for a down payment. Then find a good real estate agent, preferably one who has some experience with investors, and then go shopping for a place to live. If you can afford it, one idea is buy a duplex and rent the other side out to someone. If you are handy, purchase something that needs some work, mostly cosmetic, renovate it and then refinance to provide capital for another purchase. If you have no equity, I wouldn't start flipping houses right away.



Hope that helps!



Nik

 

[REINteam]

Hi Mark,



Welcome to the site first off! As far as real estate education goes this site alone provides huge value to all levels of investors, so take some time and do some initial research on here with regards to what other investors are actually doing and what works for them. You mention rehab, flipping, rent to own, etc - all possible options, but you'll want a solid foundation before jumping into such strategies...no matter how easy they sound.



Second, depending on where you're located I would seriously think about attending the next ACRE` program (Authentic Canadian Real Estate) ACRE` Link Here - this is our primary real estate course, free for members, but available to anyone interested in learning the true in's and out's of investing (a very solid foundation for investing). The majority of folks on this site have taken the course and many members attend each and every year to get a refresher, keep up to date and to do some high impact networking. Our next event is in Calgary March 19th & 20th then on to Toronto April 16th & 17th.



REIN` Membership is also an option, but with your current situation I would probably look at attending ACRE` first.



Books are also an option, but for me it is easier to learn hands on and surrounded by others who are actually doing exactly what I want to achieve...hence networking.



If you have any questions or want to chat about options feel free to give me a call directly: 1-888-824-7346.

 

[bizaro86]

You mention "no capital." Personally, I would start by making a lifestyle adjustment so that you are able to save money every month. Focus on paying off any high interest consumer debt that may be holding you back. Don't take out any new consumer debt. Read real estate investing in Canada, and figure out what type of property would work for you as a rental. Take 5% or 10% of that value as a target, and save that much money. (This step will take some time)



Then I'd buy a property that would work as a rental, but as your personal residence. Live in it for a few years (saving more money) and get the mortgage paid down a bit. Then buy a new personal residence, and keep the old place as your first rental property.



Regards,



Michael

 

[MrHamilton]

Mark, you've been given some excellent advice.



Just to add to what has been mentioned, I recommend first reading Robert Kiyosaki's class "Rich Dad, Poor Dad" then Don R Campbell's "Real Estate Investing In Canada"



All ambitious people who read "Rich Dad, Poor Dad" will become motivated to start their own business (investing in real estate IS a business).



Consider purchasing a duplex or a property suited for a secondary suite. Live in 1/2 of the property and rent out the other 1/2.



My two cents..



Hope that helps!!

Erwin

 

[RobMacdonald]

There are many creative ways to buy real estate. Having good credit and verifiable income is a good start. Building up equity is possible in many different ways. Depending on your current financial situation you may want to look at a couple of programs available through CMHC and Genworth. It is possible to purchase a primary residence with either little or no money down. You can start saving to accumulate the downpayment, but by the time you do that, you may find either prices or interest rates have gone to high to make it viable.



A word of caution.... it needs to make sense with your overall plans. You may pay a little more on the mortgage for the above options, but if you have ways to increase the equity or supplement the monthly cost then it may make sense in the long run.

 

[kfort]

Having read each Don Campbell book, Peter Kinch's book, and a half dozen Robert Kiyosaki / Rich Dad books I would recommend reading them in this order:



Rich Dad Poor Dad

Real Estate Investing in Canada 2.0

97 tips for Canadian Real Estate Investors

Canadian Real Estate Action Plan

81 Tax Tips for Canadians

51 Success Stories



I personally haven't found all Robert Kiyosaki's books to be helpful but Rich Dad was, as well as Cash Flow Quadrants.



Each of these is an easy read and the best part is that even after reading the 2.0 book and 97 tips about 7 or 8 times each I still pick up something each time I read them. On my last purchase I often skimmed back through parts while proceeding. Being a newbie myself I appreciate an easy informative read.



Frequent this forum and do just what you are doing, ask questions. People here are very willing to help, I've asked some pretty "rookie" type Q's and never received any flack for it.



Check out the "must read" thread (do a search) and stop by a local used book store. For sure you will find some of them there. Rich Dad is in every used book store I have ever been to. I've never seen Don's books used anywhere. That says something too.

 

[Thomas Beyer]

[quote user=Ramda]I do not have any capital and that was what led me to this website.



... I have good credit but no equity.
Educate yourself (join REIN, read 10+ books on real estate, listen to 5+ CDs on subject, talk to / listen to other experts, walking the streets with ears and eyes wide open, ..)



MAKE SOME MORE MONEY FIRST !!!!!!! i.e. save more .. or have a better paying job .. or 2 !



Buy a principle residence in a market with upside. You need only 5% down. Use it while it is available. It may change in the future. Go to Grannie or dad or mom or uncle to get the 5% down !!!



Consider subletting a suite or a whole floor !



Get pre-approved for a mortgage, assuming you have some cash.



Work on your personal skills: education, self improvement courses, books, speaking skills, vocabulary, grammar, accent, ..



Join a group like REIN to surround yourself with like minded people that pull you along !



Shed nay sayers !



Be realistic !



Be positive !



Have more faith / positive life outlook !

 

[ronaldk]

Before Reading Don C's Books or Robert K's book, which deals mostly with investing in Real Estates, I personally think start with Think And Grow Rich by Napoleon Hill.


Get Advice from REIN Members and an experienced Investor who can share some ideas.

Educate yourself , surround yourself with like mined people .Attend seminars that are hosted by Don C's Group and Build your networth/network.You wouldn't even have time to think about the question you asked anymore if you just start doing as what is mentioned above.



Scarifice your time towards learning and results will come.Nature the tree, the fruits will drop.

And if you take care of your pennies , the dollars will take care of themselves.

Good Luck.See you at the Top.



RK.

 

[ShannonMurree]

Great advice so far. Well, you've come to the right spot so that's a good first step.

Welcome!

 

[RussellWestcott]

Mark you have come to the right place.



You sound very much like I was when I first wanted to start to invest in Real Estate (I wish there was a place like myREINspace.com, when I first got interested in Real Estate). You have come to the right place, you will find a community here willing to support and offer you guidance.



I was in the same boat as you, reading everything, and still not owning anything. On top of this I had no investment capital, but I did have a passion and a confidence to make this work.



Actions for you (what worked for me)

• Surround yourself with people who are doing Real Estate not reading about it
• Get out to an ACRE` live program >> details here
• Set measurable action steps from the system you have learned
  Find someone to hold you accountable for what you say are going to do
  Follow a proven system that works in your region

The time has come to implement what you know, not to read more.



Good luck, I look forward to seeing you at an upcoming event

 

[IsmInvestor12]

Hi All,



I am new to this site and considering joining the REIN in the near future.



I have to admit , with so much honesty in all the members postings , there is so much of positive energy in this forum !!



Subbu Iyer

 

[HayesHomes]

Excellent references have been shared here, Ramda.



I've read most of Robert Kiyosaki's books which are exceptional for helping you raise your financial IQ and Napoleon Hill's Think and Get Rich is an excellent starting point for increasing self-awareness and incorporating personal growth into the journey, which ultimately, is the foundation for success in anything.



All the best to you as you begin the adventure.

 

[CamMcCarroll]

Spend time with individuals or groups who are doing what you want to do - find yourself in groups where you are out of your comfort zone - this can challenge you to grow and develop - Good on you for reaching out and good luck!

 

[housingrental]

Make your first property purchase your own - once you know you can stay put for awhile...