SPECIALIZED IN LUXURY REAL ESTATE FLIP AND REAL ESTATE OPTIMIZATION, THE DEVELOPER EXCELLENCE CONSTRUCTION RÉNOVATION SHARES WITH YOU THE BASICS FOR ACHIEVING SUCCESS IN REAL ESTATE INVESTMENT!
In real estate investment, there are many techniques and types of buildings to make your money grow. Renovating a property to increase its value, commonly called a “real estate flip” or buying and optimizing a rental or income property are the two most common real estate investments.
In order to succeed in a real estate flip or the optimization of a residence or a rental building, several aspects must be considered well before grabbing a hammer and knocking down walls! Here are our tips and tricks to ensure the success of your real estate investment, right from the start.
HOW TO GET STARTED IN REAL ESTATE INVESMENT?
ONE OF THE BASIC RULES FOR SUCCESSFUL REAL ESTATE INVESTMENT IS TO HAVE THE RIGHT PROFESSIONALS TO GUIDE YOU!
Before you even start buying income properties or looking for a single-family home to invest in, we recommend that you focus your research on building your “team” for successful real estate investment.
When doing a real estate flip or optimizing a property, knowing how to surround yourself with the right people is the key to success, and this is even more true if you are new to real estate investing. Start by looking around: do you have a cousin who excels as a real estate broker and could offer you deals before they are even posted on the market? Or a neighbor for whom pre-purchase inspections are no secret?
One thing is certain and essential, before buying a building or a property, in this type of investment, do not limit yourself to your knowledge, but rather prioritize professionals in the real estate field!
After having scoured your entire address book, you are still looking for the perfect team to launch your first real estate project? Obviously, the Quebec real estate market is big and many investors and entrepreneurs have been there, long before you!
So why not take advantage of these resources? Ask for references from other successful real estate investors in Quebec; chances are they can guide you or better yet, they might be interested in your project. Having the right professionals to guide you will make a big difference and can save you a lot of time and money.
IN REAL ESTATE INVESTMENT, PROFIT IS MADE UPON PURCHASE!
Have you ever heard this sentence from an experienced investor: “Profit is made upon buying”? You may not have understood exactly what it means, but here is how it applies to your flip or real estate investment project.
When you think you’ve found a bargain, it’s important to consider many factors to determine what price you should pay for your next investment property or rental building. First, what is the average price of comparable homes or rental properties that have sold in the same area in the last year? This is approximately what you can expect to resell your property (or building) for once renovations are complete.
By taking the average price of comparables and subtracting the cost of renovations (and potential contingencies), you will get a price from which you must not forget to subtract the acquisition, ownership and resale costs and interest rate, which are not insignificant. The price you pay for the residence or building will determine the profit you will make in the end.
IN REAL ESTATE INVESTMENT: PLANNING IS THE KEY!
Before thinking about buying a property or a rental building, it is very important to have a good plan. It is important to evaluate the costs and the duration of renovations. It is recommended to make a list of what should be done with the associated cost and also to foresee an additional 10% for unforeseen events which are common in this type of project.
It is also important not to neglect the time required to complete renovations, as this will have an impact on the cost of ownership. When we talk about holding costs, we refer to the mortgage payment (bank or, most of the time, private), insurance, electricity, heating, lawn maintenance or snow removal, etc.
In conclusion, when investing in real estate, your efforts to surround yourself with the right people and to plan well before buying will greatly increase your chances of success in your renovation project.