There is no sure fire way in any business to make money, except for maybe having 100% luck. However!!! There is always a smart approach to everything you do in life, and so there is in business. This is what your mom and dad did not teach you, and what you wanted your bosses to tell you. So how to make money in real estate?
How to make money in real estate – realize that life exists AFTER what ever age you are now.
Why is this the most important thing. Most young people these days devote their spare time and money on self indulgence. Be it at the bar partying it up with their friends, at the store shopping for the newest cellphone, or taking trips around the world, the common thought in every young person’s mind (except for few exceptions), is “LIFE IS TOO SHORT”. It seems that when we are young we do everything with a thought in the back of our mind that we will not be around tomorrow.
Ever heard of REGRETS. Look back and see how many you have had so far. It does not matter what they were and how many you had. The point is that looking back there is at least one thing you wish you have done differently but you did not because you thought that life is to short, or simply you wanted it now.
In the same way, in a few years you will regret wasting time and money when you were younger, especially if few years from now you are working two or three jobs and trying to make ends meet.
Lets do some math.
If you spent 100 dollars a week on the indulgences (for demonstration purposes, I know of young people who spend a lot less and who spend a lot more).
That is $5200 a year. In two years you would have had around $10,000
Lets say you were at least smart enough to maintain good credit score.
With $10,000 in your pocket you could have walked over to a lender and gotten your first mortgage on an income producing rental property. There are rental properties within an hour of Greater Toronto Area that are selling for as low as $50,000 and bringing a $800-1000 in rent to service your debt. Within next two years you would have enough equity saved up for a second one. By 23, 24 years of age you could have owned 2-3 real estate investment properties with equity and producing a steady income of $5000 + every month. At this point you are probably out of school successfully since you limited your indulgence habits and invested in real estate instead. You now look back and see that you are just as happy to go traveling now, and just as happy to spend, but with the difference that you now have an income and don’t have to work very hard for it, and better yet you have money in the bank in form of equity. What a sweet way to start a life. Guess what, next time you go out to a bar or a restaurant with friends, they will be telling you they can’t afford it because they have no money!!! The point I am really trying to make is that tomorrow is going to be just as much fun as today. If you leave fun for tomorrow and save and invest now it will be MUCH MORE FUN tomorrow.
So here are the steps.
1. Save every dollar you can. If you are in school, avoid partying, spending etc. Put it all in the bank. Be patient for a year or two. Guess what, you may not have any friends and no social life but let me tell you, once you are loaded with cash you can have a social life as much as you can. Just think of a quiet nerd Bill Gates. Who gets a last laugh.
2. As soon as you can afford with your down payment the cheapest rental property out there, buy right away. Do not wait for a nicer one. Buy a cheapest one because time is your friend. The sooner the rent is going towards paying your mortgage the sooner you are on your way to equity and next property. Granted, you will now have headaches with tenants from time to time, issues with vacancies, renovations etc, but remember, EVERY business has something to be taken care of. It sure beats having no money at all. With some clever thinking and some friendly advice from experienced investors you will soon find your way. JUST DON’T GIVE UP when the going gets tough. At the end of the day it is your potential money tree.
3. As soon as you have enough equity in the first property, plus what ever you have saved, buy a second one.
4. And then third.
5. And then fourth…
I met a young man in his 20’s that had 6 investment properties while still in college.
You Think it is Not Possible for You with Your Circumstances. How to make money in real estate is not about the “secret” as much as it is about tenacity and persistence. In fact that is the secret of success in any business.
Contact me today at 647-892-5007 and I will show you how you CAN start too. Regardless of your situation or age.