Newbie seeking advice!

[JCRE]

Hi Everyone,My name is Joel. I read Rich Dad Poor Dad and Real Estate Investing In Canada over a year ago and since then I`ve known that I want to make Real Estate the foundation for my wealth generation.

About Me
I currently live in Toronto (maybe moving to Ottawa in the fall). I`m 29 and work as a Financial Advisor for one of the banks. I`ve never owned my own property and while I would like to buy something I can live in as well as rent out, family circumstances don`t allow that at this point. That hasn`t diminished my desire to purchase an investment only property which earns me positive cashflow.

I have a rapidly growing knowledge of banking and finance and would consider myself very knowledgeable about the Ontario market having lived here all my life. I`ve been luck enough to have lived in Toronto, Hamilton, Guelph, London, Timmins, Sudbury, and Oshawa.

While I`ve gained a great deal of knowledge, I`m always ready to learn more!

Help Required
The advice I require is how to get started? I`m continuing to grow my savings but don`t have enough to make a 10% downpayment on a property in the GTA and my preference is to stay somewhat local. I would say money is my biggest obstacle.

Which direction should someone is my position pursue?:

a. keep savings and do it on my own
b. JV
c. borrow money from parents (I know this carries some potential problems)

All advice and experience is greatly appreciated!

Enthusiatically,
Joel

 

[heliman2]

QUOTE (JCRE @ Jan 27 2008, 10:17 AM) Hi Everyone,My name is Joel. I read Rich Dad Poor Dad and Real Estate Investing In Canada over a year ago and since then I`ve known that I want to make Real Estate the foundation for my wealth generation.

About Me
I currently live in Toronto (maybe moving to Ottawa in the fall). I`m 29 and work as a Financial Advisor for one of the banks. I`ve never owned my own property and while I would like to buy something I can live in as well as rent out, family circumstances don`t allow that at this point. That hasn`t diminished my desire to purchase an investment only property which earns me positive cashflow.

I have a rapidly growing knowledge of banking and finance and would consider myself very knowledgeable about the Ontario market having lived here all my life. I`ve been luck enough to have lived in Toronto, Hamilton, Guelph, London, Timmins, Sudbury, and Oshawa.

While I`ve gained a great deal of knowledge, I`m always ready to learn more!

Help Required
The advice I require is how to get started? I`m continuing to grow my savings but don`t have enough to make a 10% downpayment on a property in the GTA and my preference is to stay somewhat local. I would say money is my biggest obstacle.

Which direction should someone is my position pursue?:

a. keep savings and do it on my own
b. JV
c. borrow money from parents (I know this carries some potential problems)

All advice and experience is greatly appreciated!

Enthusiatically,
Joel

A.) Unless you can save more then the home inflation rate then saving money for the down payment is not really efficeint.
B.) JV partners are a great way to build your real estate portfolio, I would highly recomend joining REIN to further educate yourself on this matter.
C.) If your parents have money to loan you maybe they would be interested in doing a JV with you.

Cheers
Colin
Harveys Homes
Oshawa, ON.

 

[markl]

Joel,

As probably stated on this board many times and will be stated many time in the future. These questions you ask are multi level and we wouldn`t be doing you any favours answering them without knowing all of the specifics. If you want to chat about what can be done send me an email and we can arrange a time. [email protected]

Regards,

 

[Thomas Beyer]

buy the biggest asset you can afford to carry monthly .. as you pay no taxes on your own residence when selling, as opposed to an investment property !

This would be a very smart investment for your parents !

Why not buy a up/down house in decent area, and rent out the downstairs or some rooms ! cash-flow and tax free equity upside !!

Don`t get stuck in the "ready, set, set, set .." mentality !

ACTION is required .. after some appropriate (but not too long) time of thinking and education by reading and joining REIN for example !





...


GO follows set !!!

 

[JCRE]

Thanks for the advice!

Looks like the next step is to line-up some a JV partner.

 

[KeenanTameling]

Joel,

Being in the bank you should truly talk to your manager about options for you. Banks have excellent products/services for their own employees. Advantaged interest rates and terms. I don`t know your particular circumstances but if you are a valued employee I am sure they will work with you and it is a resource close to you that should not be over looked.

Keenan

 

[RebeccaBryan]

Joel,

I agree with Thomas, don`t get in the "Ready , set, set set............ " mentality.

Joining REIN will help you get to the "GO". REIN will give you knowledge, so you can take action without FEAR.

Remember this saying? "Procrastination is the theif of time".

Good Luck

 

[kboughen]

Joel,

I agree with Keenan above and if your manager can`t/won`t help you, find a good Mortgage Broker as not having 10% down is no reason to wait. There are plenty of good zero down options out there.

 

[JCRE]

QUOTE (kboughen @ Feb 1 2008, 11:27 AM) Joel,

I agree with Keenan above and if your manager can`t/won`t help you, find a good Mortgage Broker as not having 10% down is no reason to wait. There are plenty of good zero down options out there.


Great points. I work with mortgages directly everyday so I`m lucky enough to know all the options and discounts that are available through the bank, but I would still be interested in speaking with a mortgage broker, just to find out the differences if any.

In people`s experience are mortgage brokers often able to offer cheaper and more flexible options than that bank? It seems as though a lot of investors choose brokers instead of banks!

Thanks
Joel

 

[RobMacdonald]

Hi Joel,

My background was similar to yours, I worked my way up through a major bank. I thought the bank had all the options that the client could possibly need, but soon discovered there are a world of options out there.

I would recommend buying a property that your could live in as well. With is being your principal residence, the premium is fairly reasonable. Choose a property that has 2 suites, and you should really consider living in the basement. That way, you will get a bigger price for renting the top floor and potentially the garage, thereby subsidizing the mortgage.

Joining REIN would be a wise idea. You`ll get a quick lesson on being a landlord and learning the tips and tricks to turn a home into a cash producing investment. Finding the right renters will be a key to your success.