Getting Started

[nickek]

Took me forever to piece my thoughts together
My name is Nick; I live in Calgary and I am very new to investing. I`ve decided to check out this site because it was emphasized a few times in Real Estate Investing in Canada, which I am almost finished reading. Great read, I owe a lot of thanks to the man who introduced me to the name `Don Campbell` earlier this year. I already have a few locations I want to check out as soon as possible.

Although the book covered a lot, there were a few things that I`m hoping someone could clarify for me:

Reading through a number of investment sources one of the key things that was emphasized was to Diversify. So, hypothetically, if someone had $200K in cash, would it be a wise choice to put it all in one property (or more if we are not talking about Calgary), or would it be a better choice to put as little as possible in several?

My other issue is that I am currently job hunting for a source of income, as I have been doing for the past few months, but in my mind I want to move forward without all this dependency. Would it be wise or even possible to still move forward with RE and at the same time focus on obtaining employment, or should I put this on hold while on the hunt?

Any help would be cool, thanks.

 

[invst4profit]

Getting started and being successful investing in real estate, unless you are rich, requires a steady income to support your investment initially. It may take 5 -10 years of hard work to see any substantial returns and the financial road will be bumpy at times.

In my opinion you should definitely get your career on path first. Take the time to learn every thing you can about this business.

 

[markbrad]

Where do you live now? Are you renting? If so, perhaps you could buy your own place with a suite in it and supplement your mortgage. Or a 4 bdrm house. In some instances you could basically live for free (3 roomates that pay $500 each) I think by diversifying, you need time as well. I say this because we all start with limited capital, and have to chose one thing to start with. I started with my own RRSP and mutual funds, then I bought a property, renovated and sold, then another, then my own, then a rental, then another rental, some stocks, another rental, a business etc. This all takes lots of time, but I have also diversified some.

Starting with say $200K, I would say you are better taking portions of it for downpayments, and getting mortgages to leverage. If you put 200K into one property, you are limited to the amount of cashflow that place will make, and the appreciation it makes. Let`s use $100/month cash flow, and 10% appreciation over 5 yrs for ease of use. That is $6000 in cash flow and $20,000 in equity increase. So you made $26000, or 13% on your money or 2.6% simple interest/year. Now let`s say you bought 5 properties, 20% downpayment, for $200,000 each. That is $40,000 down/property. Mortgage payment is $885 on $160,000, 25yr ammortization at 4.5%. Let`s say you cash flow $100/month/property for five years. That`s $30,000 in cash flow, and 10% appreciation over 5 yrs, is $100,000 on 5 properties, for a total of $130,000!! Then, get this... I never factored in a mortgage paydown for those 5 years. That would be about $19,500. So let`s say $150,000!! Is that 75% on your money? Or 15%/yr? Sounds pretty good to me.

I know there are some of you math types out there that are going to correct my figuring, but I think I get the point across. And feel free to correct it, just show me how to so I can learn something as well!

Mark

 

[Thomas Beyer]

Have a look at these posts on how to get started making money (in real estate)





5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html



How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html

 

[nickek]

I appreciate the quick replies

Mark, currently I`m living with my family but I plan on moving on very soon. I liked your idea about renting out a house to live in for free. Thanks for the input about diversifying, it cleared a lot for me.

Thomas those were insightful links, I agree with your points

What`s this Quickstart program, and how is it different from a REIN membership?

 

[nickek]

Here`s a picture of my Belize: http://i592.photobucket.com/albums/tt6/fil...SONALBELIZE.jpg

 

[Thomas Beyer]

QUOTE (nickek @ Mar 31 2009, 11:30 PM) ..

What`s this Quickstart program, and how is it different from a REIN membership?
Quickstart is a 2 1/2 day weekend event to "jump start" you .. i.e. both a membership drive and an education event put on by REIN 2-3 times a year in BC, AB or ON. Membership allows to to attend all these events for free and all monthly events plus website access to reports, forms plus networking plus ideas to turn inaction into action ... highly recommended if you want to take ACTION (i.e. buy s.th.) .. if all you want is some cheap education or entertainment .. don`t join (yet) .. wait until you have the time, money and willingness to ACT !

 

[nickek]

Cheap Entertainment? Probably

But I`d like some quality education
I`ve got the money saved up, should I take a look at the ACRE system seminar too?

 

[Thomas Beyer]

QUOTE (nickek @ Apr 1 2009, 02:47 PM) Cheap Entertainment? Probably

But I`d like some quality education
I`ve got the money saved up, should I take a look at the ACRE system seminar too?
ACRE = REIN .. same thing ..

 

[NorthernAlex]

QUOTE (nickek @ Apr 1 2009, 01:35 AM) Here`s a picture of my Belize: http://i592.photobucket.com/albums/tt6/fil...SONALBELIZE.jpg

Two camels? You are very modest!

 

[navaz]

Take a good look at the quickstart program- take a look at 4-plexes in Calgary- think hard but move forward!

 

[nickek]

QUOTE (thomasbeyer2000 @ Apr 1 2009, 05:44 PM) ACRE = REIN .. same thing ..

Thomas, the whole four-letter acronym thing is too much for me; at least now I am certain there`s no difference.

QUOTE (NorthernAlex @ Apr 1 2009, 06:35 PM) Two camels? You are very modest!

C`mon, you can`t be part of the cool people group without camels. Actually, it was not the camels that got me; it`s there to remind me that there are warmer places than Calgary.

Navaz you are absolutely right. I can think all I want, but the only thing that will make a difference is action. Don`t try, don`t think, just do.

 

[alexh]

QUOTE (thomasbeyer2000 @ Apr 1 2009, 09:52 AM) Quickstart is a 2 1/2 day weekend event to "jump start" you .. i.e. both a membership drive and an education event put on by REIN 2-3 times a year in BC, AB or ON. Membership allows to to attend all these events for free and all monthly events plus website access to reports, forms plus networking plus ideas to turn inaction into action ... highly recommended if you want to take ACTION (i.e. buy s.th.) .. if all you want is some cheap education or entertainment .. don`t join (yet) .. wait until you have the time, money and willingness to ACT !


Hello Thomas,

Is there a live Quickstart event, or is this just a home study program.
I have the home study program, but i would definitely like to cover this material live if thats a possible.

 

[Thomas Beyer]

QUOTE (alexh @ Apr 2 2009, 01:54 AM) Hello Thomas,

Is there a live Quickstart event, or is this just a home study program.
I have the home study program, but i would definitely like to cover this material live if thats a possible.
yes .. there was one in BC a few weeks ago .. check the calendar online ..

QUOTE (nickek @ Apr 1 2009, 11:30 PM) ...

I can think all I want, but the only thing that will make a difference is action. Don`t try, don`t think, just do.
by all means: think .. but at some point well researched ACTION has to follow for any venture to start / succeed ..

so: ready, set, set, set, set ....... set some more ... ... GO !!