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this is a rein account of 2 sisters who want to invest in real estate =)

laconicemi

0
Registered
Joined
Oct 2, 2014
Messages
2
Hello everyone,



My name is Emelyn, my sister and I wants to invest in real estate. We searched online and bought Don Campbell's book "Real Estate Investing in Canada". We would like to create passive income from real estate. We are full of excitement as we are looking at all the possible opportunities. We live in New Liskeard, Ontario. We are in our 30's. We have read a few pages of Don's book already. Today, we found a listing in Royale Lepage of a property that is listed at 299,999.99. It is a house in a farm. The farmland is classified as '"development". We are interested in purchasing a land and planning to either lease it to a solar company who rent lands where they can set up their solar panels or lease it to individuals looking for land to farm (ie Rentthisland.com). By leasing it to the solar panel company, their rent will pay for the mortgage of the farmland and the extra money will be our passive income.



We went to a realtor this morning at Royale Lepage and she said she will do some research on the property to check if it is listed at a reasonable price. She also gave us a contact number of a mortgage broker who can tell us if we will qualify for a loan.



We would really appreciate your thoughts/advise for us starters. Thank you !! =)
 

Matt Crowley

0
REIN Member
Joined
Dec 14, 2013
Messages
980
Invest for cash flow.



Do you have experience in land leases? I work in land development and it's a very, very different game than the rental property strategy discussed in Don Campbell's book.



The further out of town you are the more you will be affected by the little local economy. How solid is that solar company market? Are you going to drive the price down by just offering to lease the land? How is the income going to react in a downturn?



Getting your Realtor to do some market comparable research is necessary, but don't be lazy. Research the heck out of the rural area. Your making an advanced play here, don't underestimate the research you will need to do to understand that investment class, especially if you don't have much experience in it.
 

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
Get far more knowledge first. Join REIN for a year. Educate yourself first before you buy anything as it is a major commitment and one serious mistake can cost you 10's or even 100,000 $s.



Solar leases in Ontario are scams as the government has no money and solar generates too low a yield.



Commercial leases are risky but profitable if done right.



Like juggling, playing the piano or flying an airplane, real estate is easy, once you have mastered it which takes years of practice starting with small steps.
 

trevismcconaghy

Trevis McConaghy, REIA
REIN Member
Joined
Nov 11, 2012
Messages
71
Thomas, I love your advice to the post and I strongly concur. My advice is to get familiar with REIN and surround yourself with great people. Attend ACRE, and conferences such as Investors Forum put on by CREW. Knowledge is power, and things generally get easier with experience.

I am young at 38 and my family helped me buy my first farmland at 14. That gives me 24 years of investing experience. I still feel like I am just an amateur after being involved in tons of properties.

My small bit of advice on the farmland- you are not a developer so don't touch it with a ten foot pole. I have done 5 subdivisions (very nominal) and hired big gas and power lines to be trenched in. It is exremely costly. I did the utilities for a large industrial project, and the surveying was for subdividing farms or city lots. Talk to a developer or survey company before ever considering such an idea.

Farmland values have increased rapidly in recent years (you can see this in REINs magazine) so make sure you can get a reasonable return if you are buying it. I know farmland very well in northeast Saskatchewan having farmed for over 20 years, and the price has literally skyrocketed. Assiniboia Capital Corp, a large land holding company, was aquired earlier this year by CPP indicating strong interest in farmland. Land values have moved so much that the rent you can get now barely would justify the price. Rents or crop share deals can be very cyclical too based on grain prices.

My thought is to start with a basic home bought using REIN systems. If you are happy with the process, then repeat.

Happy investing, and happier learning!
 
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