Tag Archives: real estate investor

How to Find a Great Realtor as a Real Estate Investor

by Dave Peniuk

Not all realtors are created equally. In fact, most realtors just aren’t that good when it comes to working with real estate investors. As real estate investors we need a realtor who will:

  • Take the time to understand our parameters and WHY we have those parameters. Just because a property has a basement suite doesn’t make it an investment property.
  • Respond quickly – when we’re working on a deal we are usually moving quickly and when we need information or want to see a place we would like a call back/email returned within 24 hours. And in most cases I would prefer a realtor respond within a few hours.
  • Be willing to try different things when it comes to making offers. We rarely make a standard offer. We almost always ask for special terms like vendor financing and we ALWAYS ask for the ability to access the property several times before closing to show to tenants.
  • Be comfortable with the foreclosure process, making aggressive offers and sniffing out the real story behind the sale of a property.

So – how do you know what to look for in a good realtor and where can you find one that will work well with a real estate investor?? I created a couple of short videos as part of our 31 Real Estate Investing Video Tips. You can check those videos out right here:

And I’d love to hear from you … what makes a good realtor for you? Do you have an awesome realtor? How did you find him or her??

And if you want more awesome videos like this be sure to sign up for our Real Estate Investing Video Series. Julie and I created 31 short videos full of tips to help you be a more successful real estate investor. The videos are all 3 minutes or less and they are free!! It’s our gift to you!!! 🙂 Enjoy!!

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If You’re a Real Estate Investor You’re In Marketing

I emphasized this point when I told you the Top 3 Real Estate Investing Books every new investor should read, and I’ve definitely talked about this before:

If you are a real estate investor – you must understand marketing!

In fact, the better you get at marketing, the easier it will get to make money with less effort as a real estate investor.

So… what are some of the fundamental marketing principles you need to understand? Well, that is what I cover in my latest article that you’ll find in the November 2009 Edition of Healthy Wealthy N Wise!

Health Wealthy n Wise Nov 2009

Check out my article called: Why You Must Master Direct Marketing for Real Estate Investing Success

AND – Today is a day of celebration for me!! It’s my one year “freedom” anniversary! This time last year I left my job to pursue our online business and our real estate investing adventures full time. In many ways it really feels like I just left my job … and I will be honest in saying that I haven’t replaced the cushy salary that I was making … yet! But I have not had a single moment where I regret the decision and I owe that to the fabulous readers of Rev N You and my fabulous support team of friends and family (especially Dave!).

We have so much to celebrate at Rev N You this week, so we’re going to do a couple of extra special things for our readers in the next 10 days. If you’re not already a Rev N You with real estate newsletter subscriber you might want to sign up now so you don’t miss a thing!! It’s free … 🙂

Plus – we have 5 copies of the Private Money Blueprint to give away from our Battle of the REI Blogs 2009 victory so watch for the winners here!

Sign Up for Rev N You's Free Real Estate Investing Newsletter

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Real Estate Investing Lessons from Mountain Biking

If you’ve been reading Rev N You for awhile you probably know that we started adventure racing last year. In order to do that I had to learn how to hammer up and down the mountains on a mountain bike. I’ve had some pretty ugly spills and I’ve definitely had days where I think about quitting … but I also have days where I feel incredible pride and triumph after I complete a hard technical ride successfully.

Because I am a new mountain bike rider I find many areas where the lessons I am learning as a new mountain bike rider are ones that also apply to a new real estate investor.

This week, while riding alone on Salt Spring Island, I thought about two more lessons that every real estate investor (and new mountain bike rider) should know.

Free real estate investing newsletter

Free real estate investing newsletter

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Rent vs. Buy as a New Real Estate Investor

Rent Vs Buy

We received a handful of emails over the holidays from our Rev N You with Real Estate Newsletter readers asking about
renting vs. owning. Here’s one of the emails and what I had to say:

Hello Julie and Dave,

I’m looking forward to your newsletters and appreciate the welcome
email.  This is the style of investing I hope to be doing in a
couple of years.  I do have an initial question though: buy or rent?

Allow me to elaborate.  I will be graduating with a software
engineering degree in April and will start work <company removed
for his privacy> in July.  I don’t want to throw money away on
renting, but will have next to nothing as a down payment initially.
I will be living with my long-term girlfriend who will be bringing
in some additional income as well.

What I am having a hard time deciding is when is the right point to
stop renting and buy my first place.  Once that happens we can
focus on improving our place and saving up for an investment
property.

So once again, rent or buy?  When do you make the switch?

Thanks again and I look forward to your newsletters.

Sincerely;
Ryan

Here’s my response to Ryan:

Hi Ryan,

Thanks for your email, and thank you for joining our Rev N You with
Real Estate readers!! We’re happy to have you in the group.

As for the Buy or Rent question you have… I think you’ve just
given me a new topic for our blog! I don’t think we’ve ever really
written about this subject.

The answer really is – it depends! It depends on your objectives,
it depends on how long you think you will be living in the city
you’re in right now, and of course, how much it costs to rent vs.
own in the city you’re in (lots of good tools online to help with
this: https://www.vancity.com/MyMoney/Tools/Calculators/RentvsBuy/ ).

Have you read Rich Dad Poor Dad? We credit Rich Dad Poor Dad with getting us started in real estate. (http://revnyou.com/March_22_2007_The_book_that_got_us_started.html)

Read the book. I think it will help you figure things out a bit.

Also, think about your objectives.

Our first purchase together was not a home… it was an investment. We both continued to rent our separate places at the time. The next place we purchased was for us to live in, but we bought the place
with the intentions of renting it out after a few years (and that
is what we did).

However, because it was to be our home first, we spent more money
on it than we would have if it was to be an investment property
from the beginning. There’s an emotional aspect involved in the
decision when you are going to live somewhere. Because we spent
more on the property than we had planned it didn’t quite cashflow
when we turned it into a rental.

That said – (in Canada) there are first time home buyers programs
that are worth taking advantage of. Talk to a mortgage broker or an
accountant about this. You may even find that you want to put your
name or your girlfriend’s name on your home purchase and then use
the other person’s name to buy the investment.You’ll have to think
about your objectives and then discuss your situation with a
professional to get the best advice though.

At the end of the day, I believe that a home is not an investment.
You can do the math on whether it’s better to rent or buy in the
area where you live, but really, buying a home is an emotional
decision you will make to achieve a desired lifestyle. It’s not a
bad thing, but just know that you will ALWAYS spend more money on a
home (whether it be the initial price or just the money you spend
on paint, furniture, finishings) than you would on an investment.

You’ll have to crunch some numbers and do some thinking to make the
decision about when and what to buy.

Hopefully this helps at least a little bit! All the best in 2009!

Regards,

Julie
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Search for Foreclosures Nationwide.

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“I Have a Dream” to Become a Real Estate Investor

Dear Julie,
I read your article on “five ways to protect yourself from a bad property manager“. I have a dream to invest into Real Estate as I believe this is the best vehicle to get me out of the rat race. As I am still a dreamer, I read a lot of articles on the subject before I take the plunge.
This is how I intend to go about it:

  1. Set up a company (Real Estate) even before I buy a property;
  2. Recruit a long experienced manager(poached from existing reputable management company);
  3. Buy property in the name of my company(as opposed to in my own name);
  4. Engage a reputable firm of Accountants to foresee the financial management of my company.They will do this through quarterly interim audit reports.

So what do you think of my dream?
A. Juma

Julie Wrote:
Hi A,

Thank you for your e-mail! I think your dream is fantastic and I wish you all the best of success with it. Without knowing your experience level, I am going to assume that you are a relatively new real estate investor. If that is not the case much of what I have to say may not be necessary feedback. But assuming you’re fairly new to investing I’d like to say: ..

1) Set your goals. This is a great vision for what you want to achieve, but quantify things. For example, in the next five years I want to be making $1000/month from my real estate investments. This year, I want to buy one property that will generate $100/month in cashflow. This month, I will begin researching the market that I plan to buy in, and will meet 3 potential real estate agents to work with. Basically take your longer term goal and start breaking it up into smaller goals.

2) Put first things first – and to me the first thing is not a company, it’s goal setting and then finding a property to buy that meets your goals. (We live in Canada so I speak from a Canadian perspective. I am not sure where you live?). Dave set up two corporations when we began to get serious about investing and we have not yet been able to buy any real estate inside of those companies. Banks really make this difficult for investors to start this way. And even if you do convince a bank to provide you with financing on your property that your company owns they will probably still make you sign a personal guarantee so you now have the extra costs and work of a corporation and still have the liability. It can be done – but I would worry about it later. Get the property first.

3) Property managers won’t need to be poached – they will often just take on your properties in addition to the ones they have. Just make sure you’ve taken the time to research the one you are looking to hire.

4) A good accountant is absolutely essential for annual tax returns and advice on the best way to structure deals to minimize your taxes, but when you first begin, you will not need quarterly reports. That would be expensive and really isn’t going to tell you much more than you can figure out for yourself using a few simple Excel spreadsheets. Once you have dozens of properties you will probably have someone that will run these reports for you quarterly and you will need them.

Keep things simple so you get started. Once you get started and have bought a property or two – then you can start worrying about the details.

I wish you all the best with your investments.

Regards,

Julie

Have you got a question about real estate investing? Please let us know!

We publish a newsletter to help new real estate investors make money in real estate. When you sign up for that newsletter you’ll also get our Real Estate Investing Starter Tips Guide Free. Please check it out at our website Rev N You with Real Estate.

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