A Beginner’s Guide To Buying An Investment Property

Author: Paula Carrascalao | | Categories: Buying A Home , Buying Home , Property Listing , Property Listings , Real Estate Market Updates , Selling A Home , Selling Home

Buying A Home in Toronto ON

Real estate investing is conceptually simple, however, that doesn’t mean it is “easy.” The goal of investing in real estate is to increase your investment over a period of time. During this time, even a minor error could have broad consequences that range from having a few inconveniences to finding yourself on the verge of bankruptcy.

If you’re looking to put money to work today by investing in real estate, but don’t know how to go about it, Sam Valentini & Paula Carrascalao are here to help more people become investors. We have formulated a Beginner’s Guide to buying an investment property that will educate first-time investors about how real estate investors make money.

Getting Started

Understand the process: The four ways real estate investors make money are:

1 Real Estate Appreciation.

2 Cash Flow Income.

3 Real Estate Related Income.

4 Ancillary Real Estate Investment Income.

What are the options available: There are different types of real estate investments you can make. The five types of investment are:

1. Residential real estate investments.

2. Commercial real estate investments.

3. Industrial real estate investments.

4. Retail real estate investments.

5. Mixed-use real estate investments.

Have a goal: When investing in real estate, the goal is to put money to work today and allow it to increase so that you have more money in the future. The profit, you make on your real estate investments must be enough to cover, taxes you pay and the costs of owning the real estate investments such as utilities, regular maintenance, and insurance. Have a clear goal in mind before setting out on your investment journey.

Next Steps

Buying property: There are several ways to buy your first real estate investment. If you are purchasing a property, you can use debt by taking a mortgage out against a property, for example, your current home. The use of the leverage is what attracts many real estate investors because it lets them acquire properties they otherwise could not afford.

How to invest: When purchasing an investment property consider holding the investment through special types of legal entities such as Limited Liability companies or Limited Partnerships. Consult with a qualified attorney for his or her opinion as to which ownership method is best for your circumstances.

Advice From The Pros

Work with professionals: To avoid costly mistakes when purchasing an investment property always consult and hire the right professionals who have the knowledge and experience in this field. We can’t stress this point enough - Always consult a real estate professional. Let the experts guide you through what they do every day and experience the benefits they can offer.

Sam Valentini & Paula Carrascalao are Canada’s best real estate brokers, and we serve clients in Toronto, North York, Vaughan, Etobicoke, Richmond Hill. Our goal is to exceed your expectations and ensure that you get the best possible price whether you are buying or selling. We are dedicated and treat our clients with the utmost respect and integrity. Visit our website to learn more or contact Sam Valentini & Paula Carrascalao today.