Put your money to work. Invest in real estate!
20 Jun 2019
Do you want to diversify your sources of income and build a comfortable retirement fund? Do not hesitate, invest in real estate. But before you embark on this adventure, make sure you understand the pros and cons of each investment strategies. Buy to rent? Or buy, renovate and sell for a profit? Here are more details about these strategies. The decision is yours to make:
Buy to rent
If you have money to invest, real estate is, without a doubt, one of the safest investments to make. If your plan is to enjoy the benefits of a long-term investment, buy a property and rent it. I believe that investing in a building you can rent is a sensible choice.
Obviously, buying to rent means that you will have new responsibilities: as the owner, you will have to take good care of your tenants. My recommendation: before you buy a multi-unit property, buy a condo and rent it. You will be able to know if you have the skillset to have tenants ... or not. Afterwards, you will be able to assess if you have all it takes to rent a property you own and feel you can take the plunge and decide to buy a multi-unit building.
If the investment in real estate interests you but suspect you are not made to manage tenants, you can always get the assistance of a property management company that will take care of all the administration of your multiplex and its tenants. This way, you will be able to see your value grow without having to invest your valuable time in the day-to-day operations of your property.
Buy, renovate and sell for a profit
For those who have an entrepreneurial profile and who aim to make a quick profit, buy and flip is an option to consider. To make a good flip, you first have to find a bargain on a property that offers good potential. Then, it will be necessary to renovate it and give it a look that will seduce the buyers. You don’t think it’s so complicated? Think again.
In order for you to make an acceptable profit, you must tag along with professionals who will be able to perform quality work at a reasonable price, within a reasonable timeframe. Before buying a property you wish to flip, make sure you have made your calculations… and haven’t forgotten anything. Remember, buyers have never been better informed. With all TV shows available on HGTV or on YouTube, people are well aware that this type of strategy exists.
Avoid at all costs that the property you have renovated looks staged or just cosmetically enhanced. Even if your intention is flipping, I would recommend making quality renovations to avoid problems with the buyer… or even worse, a lawsuit. No matter if you choose to buy to rent or buy to resell, do not hesitate to request the assistance of your real estate broker. They will help you to choose the right strategy and put your money to work.
