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General Types of Investors

1. FLIPSThere are a large number of investors wanting to flip homes or sell the property in 6 months for a higher price and profit. Most in this category usually end up with less profit than anticipated and put in more personal hours than expected. Although there is a large amount of these investors, only the extremely organized ones will succeed in the long term.

2. SHORT TERMAs the Real Estate prices go up and down while continually on an upward swing over many years, investor will often try ride the wave on an area of substantial growth (Buy Low, Sell High). Anywhere from 1-5 years, depending on many factors of both the market place and personal situations.

3. LONG TERM HOLDSThis is the most successful group because it is almost fool proof. The plan is simple as long as you are in for the long term (5-25 years you will ride inflation.) Although there are ups and downs along the way, equity and appreciation will continue to widen. It is a fact that over 95% of all millionaires have made their money this way.

4. RECREATIONAL AND/OR RETIREMENTThey planned well and want to spend their money. It’s called lifestyle.1

Know Your Stuff

1. RENTSWhether its daily, monthly or yearly, rents are constantly changing, especially in a constantly changing market. The way that renters find properties has drastically changed in the last few years. Renters are now going online to rental websites on top of scanning the local papers.

2. NEIGHBORHOODLocation, Location, Location! The biggest contributor to RENT! Other indicators include parking (garage, parking pad) and size (square foot, age of property.) When looking for a rental property, you may have a simple formula and preferred areas of choice.

3. HOW TO STAY KNOWLEDGEABLEScanning the local newspapers and websites, communicating with realtors, being invested yourself and being informed on the stats published monthly by municipalities or CMHC you will be informed.

4. LAND LORDINGIf you have chosen to be a landlord it is imperative to know all the rules and regulations.

Why People Are Investing in Real Estate Like Never Before

1.    Proven Concept - Just Compare.

2.    Real Estate is an asset, meaning it can be seen. It is real, not just “paper”. (I.e. stocks and bonds)

3.    Real Estate offers great flexibility. You can sell it to cash out your profit, rent for cash flow, or renovate and re-mortgage for leverage.

4.    The banks are putting up the majority of the money with no stake in the appreciation.

That is about as intriguing as it gets when it comes to investing. Especially when you add in joint ventures which means you can do it without any personal money invested.