Tips from amateurs and veterans

[LukasWywrot]

Ok here is my situation:
I recently graduated from university and have minimal debt from school. I currently have a job with average pay in my field but I am not satisfied with the job and the direction it leads.
For someone who desperately wants to start out in real estate what would you guys say that it is absolutely necessary to get started.
I have read Don Campbell`s book on real estate and have learned alot about the subject there. I saw that there is going to be a quickstart seminar in april, is that something I should consider going to considering the high cost of the seminar??
Should I gain experience with small properties first??
Should I incorporate a busniess first, and of what kind??

I have previous construction experience, and would not mind investing in a fixer-upper but where is a good area to start with, north york and ajax looks good but still have to look at all the facts.

 

[RedlineBrett]

Hi there great to hear you are contemplating a career in real estate... I liked your post because it's the exact same thing that happened to me - got out into the world and didn't like the looks of a career in the field I'd chosen. (I graduated as a mining engineer from Queen's nearly four years ago).



Getting right to it here is my advice.



1. Join REIN. I spent lots of money and wasted lots of time learning from other courses and trying to figure it all out myself. The REIN guys have it locked and will be invaluable to you since you will have 100s of questions. Also, go out and get Don's book '51 success stories from Canadian Real Estate Investors" You will learn a lot from this book and it will help you see where you want to take your business as everyone visualizes success differently.



2. Keep your job right now. You will need it to help get you qualified for mortgages in the early going and also pay for the small mistakes you will inevitably make. Plan to have it for at least three to five years! Move around a bit if you like but you will need employment of some sort to get off the ground. Difference for you is you get to look in the mirror and know you are planning your way out of working for the man while many others are not!



3. Avoid 'analysis paralysis'. My business suffocated in its infancy because I had to have every answer to everything before taking action. This was a result of being in a planning environnment at work and because engineers simply can't screw up with certain things. In the last year I have taken a 'when in doubt ACT' approach and I've done a lot better. This may or may not work for you but it did for me.



4. Yes, start small at first. Work with your friends and family to get a couple properties under your belt so you go through the growing pains on your time and dime. After you've been through the process a few times you will be much more successful in pitching people for money and no small part of that will be because you will be a lot more confident with everything in your life.



5. Realize that it's a marathon not a sprint! While you are no doubt rammy to get your business going it will take you some time to gain experience and implement sound business systems. Don't feel bad if you don't have 100 properties this time next year... just make sure you are always moving forward.



Good luck!




QUOTE (wywrot @ Mar 7 2008, 02:06 PM)
Ok here is my situation:

I recently graduated from university and have minimal debt from school. I currently have a job with average pay in my field but I am not satisfied with the job and the direction it leads.

For someone who desperately wants to start out in real estate what would you guys say that it is absolutely necessary to get started.

I have read Don Campbell's book on real estate and have learned alot about the subject there. I saw that there is going to be a quickstart seminar in april, is that something I should consider going to considering the high cost of the seminar??

Should I gain experience with small properties first??

Should I incorporate a busniess first, and of what kind??



I have previous construction experience, and would not mind investing in a fixer-upper but where is a good area to start with, north york and ajax looks good but still have to look at all the facts.

 

[CarlaJohnson]

Go to Quickstart! It is worth every penny. You will be exhausted from the information, yet sleepless with inspiration. The information will be very valuable helping you decide where to begin investing in real estate. We go to the Toronto Quickstart every year. We plan our spring around it.

Cheers!

 

[LukasWywrot]

Thanks alot guys. I really appreciate the advice guys and gals. I am amazed that so many people on this board are so willing to help others get started. I will check my budget and see if it allows $600 to go towards the quickstart conference.

Where is the best place to be looking for property ? MLS ??

My first deal I would love to buy a fixer upper near work and live in it for 6 months, fix it up and sell it but is that too speculative??

When I buy property should I buy it under an LLC or is it better to but it under my name??

I guess I should start looking for an accountant, real estate agent and mortgage broker.

 

[Thomas Beyer]

some thoughts:

high cost of seminar ? $2000/year is CHEAP !

get your own house/condo/TH first .. and yes, if you`re handy, buy UGLY in a decent location and fix it up .. then sub-let some rooms for add`l income ..

buy the cheapest house in a nice neighborhood .. and bring to average / slightly above average !

main benefit: when you sell there are NO TAXES payable on your own residence ! do this about 1x/year for 3 years and you will have some nice equity in 3 years !

no need to incorporate unless you are quite large ..

buy the BIGGEST home/TH/condo you can afford ..

get pre-approved for a mortgage so you know what you can buy !

get some $s from parents (and ask them to take it off your inheritance) .. so you have some seed capital !

get a job you like !

If your job is satisfying .. life is a JOY !!

Real estate is a "job" too .. as it takes time to look for deals, look for money, apply for a mortgage, find tenants, do accounting, ...

yes, join REIN ASAP !

 

[tamrahunt]

Go to quickstart! The enthusiasm is infectious. You will meet many people who are doing it instead of talking about it. I went last year and am involved in my third JV deal with a builder in Fort McMurray. I was surprised to see the variety of people at Quickstart who are making their Belize a reality.

Don Campbell is always talking about surrounding yourself with like-minded people. They provide resources, experience and the courage to get started. Quickstart is a conference room full of those people.