BECOMING A SUCCESS IN REAL ESTATE PARTs three and four

PART ONE OF A SIXTEEN PART SERIES AND THE INVESTMENT STRATEGIES TO MAKE IT HAPPEN

Welcome to Parts Three and Four of our SIXTEEN part series, "Becoming a Success in Real Estate". We are sharing the SIXTEEN proven strategies that you can use to build your business and become a real estate success.

In the last part of this series we discussed Wholesaling Real Estate. If you missed it, or any other part of the series, click here to catch up: https://gocanadianmortgage.com/blog/

In parts three and four of our sixteen part series, Becoming a Success in Real Estate; we will have a look at Short & Long Term Buys.

A short-term buy-hold strategy involves buying a property (ideally low-priced) and holding it in your possession for 2 to 5 years. In this period, you can do repairs or upgrades to push up its value, rent out all or a portion of the property and invest the income somewhere else.

Although not typical, the average Canadian home rose in value by more than 15% in the past 12 months with some areas seeing more than a 25% increase in value.

Like all investments, timing is everything and nobody has a crystal ball. Understanding the market and taking your time to find the right property at the right time is essential.

But, that's not all…

Since the goal is to make the most of your investment in the short run, you can do anything permitted by the law to milk as much cash as possible from your investment. This could include renting office space or leasing portions of your land. Eventually, selling your property for a sizeable profit would be your ultimate target with this strategy.

PLUS: You can secure good profits with smart, cosmetic renovations.

MINUS: High dependency on the market appreciation

A long-term buy-hold strategy is just the longer version of the previous strategy you saw - short-term buy hold!

So, what happens in this one is that once you buy and hold a residential place for more than five years (long term), many doors to income-generating opportunities open up for you.

For example, with this strategy in the short term, you can pull off a decent income from the rentals. However, in the long run there are tax benefits, value appreciation, loan amortization, refinancing and much more for taking. So, it's a slow and steady approach but definitely rewarding.

PLUS: Constant rental cash flows for many years and potential for much greater appreciation.

MINUS: If the market slumps in the long term, you are stuck.

Deciding weather or not to buy or invest for a short or long term is a decision that needs to be made by each individual. Having said that, the track records on both of these methods of real estate investing are solid.

Millionaires have been made and many were able to fund their start with NONE of their own money! Want to find out how?

If you have any questions or would like to schedule a phone call, you can schedule one directly here: https://gocanadianmortgage.com/book-now/   

Find the rest of this 16 part series and our blogs here; https://gocanadianmortgage.com/blog/

Plus...

Don't forget to keep on eye out for our next post, the fifth and sixth parts of our series; Becoming A Success in Real Estate - House Hacking & Living in the Rent

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