photo credit: ErnestDuffoo
Here is are some simple steps that work to become a landlord. (If that’s what you want) It’s not pie in sky trickery, it’s the truth and following these steps won’t get you awards, but it will help you to become a successful real estate investor.
- Get A Job – Banks love to lend money to people who have money already and guaranteed money coming in. They don’t like self employed people very much until they’re rich already.
- Save Your Money – You’ll need money, for down payments, for renovations and tons of other stuff.
- Convince Your Spouse – You’ll need them on board when trouble comes, so it needs to be a joint project.
- Protect Your Credit – You need great credit. If someone tells you differently, they are full of shit and likely want to sell you some expensive and useless course about complicated and possible illegal assignments, bird dogging, and assumable mortgages.
- Learn About Trades – You should know a lot about trades, this is because places will need fixing and contractors are expensive and occasionally unreliable. Even the basics will save you money, painting, plunging a toilet, hanging a shelf. It will also keep the real trades from being able to pull the wool over your eyes.
- Learn About Property Management – The act of buying the property is the least of your problems, that takes a few months, you’ll be managing the damn thing for 25 years. Which takes longer? Which means more?
- Learn About The Law In Your Area – Every province and tenancy board has different laws, learn what they are and follow them or you’ll be sorry. The government is a pain in the ass. Be legal, it’s easier and it’s sustainable!
- Buy A Property In Your Neighborhood – You’ll be going there a lot, so buy close to home. You also already know a lot about your neighborhood and the people in it.
- Don’t Buy A House With A Basement Apartment – This sounds like a great plan from a cash flow perspective, but basements have the lowest quality tenants, the most problems and are frequently in violation of city bylaws.
- Now Wait 15 years – You are now officially rich on paper, with all these real estate holdings. Rents have gone up a little and your mortgage has gone down. You can’t spend the money unless you refinance so you’re not exactly living high on the hog.
That’s it folks! Happy Turkey Day!