If you are searching through the local market and are thinking about investing in Calgary real estate you should follow some basic guidelines to success. Having information that is easily accessible and having the knowledge as well as the tools of the trade are the keys to a successful real estate investment.
How to Succeed When Investing In Calgary Real Estate
Here are a few things you’ll need in order to invest in real estate.
- You’ll need a reliable information source with detailed data regarding the Calgary real estate market and its trend.
- You’ll also need a responsible and dependable agent that can assist you and answer any questions that may arise.
- You will need to be prepared for an adequate down payment and obtain a sufficient mortgage loans.
Looking out for low priced real estate is something an important part of investing. This is can be a lot of work. It may very well end up costing you a lot more money than initially expected. Buying a low priced property and then flipping it is a great way to make money and a great way to end up losing money. You should not always focus on the low price as much as on current or potential developments in the neighbourhood and other factors, which can help predict a rise in value.
In order to find out more about neighbourhoods and properties on the listings you’ll need to find a reliable source that will provide you with the answers to your questions. Your Calgary agent will have detailed information on his website about investing or can provide it to you at his office or by email.
Going over the Basics for First Time Property Investors
When you're first starting out with real estate investment, you may not know how to get started. Here's a brief overall guide that you can use if you're interested in adding property investment to your financial portfolio.
Figure Out The Finances First
Talk to your bank or your mortgage broker to find out how much you can responsibly and comfortably borrow for your investment. This is your first starting point. Forget about shopping around until you have a certain price in mind. Then you will be able to easily determine what types of properties you can afford.
Learn About Positive Cash Flow
This is going to be the bread and butter basic data that you need to make your investment successful. Read everything you can about real estate investment cash flows. There are a lot of books available in the library and on the Internet that will guide you in the right direction. They will help you look at the ins and outs of money flows that are associated with owning and managing a property.
Talk To A Real Estate Lawyer
Before making a purchase you should schedule an appointment with a real estate lawyer or a financial advisor. In some cases you'll want to put the property in your own personal name and in other cases it's best to register it in a company name. As well, if you're teaming up with somebody else to buy a property, you'll need to have a joint venture or partnership agreement in place. This will ensure that both of you are protected should one partner decide to make some changes down the road.
Team Up With A Successful Real Estate Agent
Use a local agent that has a lot of experience working with commercial and investment properties. Let him know what you are looking for and your price range. He'll be able to contact you as soon as a property comes on the market that fits your criteria.
Learn About Record Keeping
Before purchasing a property you should find out how to maintain proper records of your income and expenses. This should be kept separated from your personal finances. It will make things much easier when tax time rolls around. Keeping proper records is a necessity when you're a landlord.
Understanding the Different Types of Real Estate Investing
The timing is right to start thinking about investing in Calgary real estate. Now, more than ever, the demand is high for all types of commercial properties across the city. If you have money to invest, real estate can earn you a passive living for years on end. Here are the different types of real estate investments available and a brief description of each.
- Commercial real estate: This consists of mainly office buildings that are owned by the landlord with separate units, or the entire building, being rented out to one or more companies.
- Residential real estate: These are properties used for residential living such as apartment buildings, single-family homes, vacation houses, townhouses etc. where you earn an income by renting out the property to a family or an individual. There will either be a leasing or a rental agreement put into place.
- Industrial real estate: With this type of real estate investment you'll earn money by renting out the facility for a special purpose to generate sales. A car wash or a building renting out storage lockers would be two examples of this type of real estate investment.
- Retail real estate: Think of strip and shopping malls and individual retail stores that are leased out to retail businesses.
- Real estate for mixed-use: This type of real estate can be a mixed bag of any of the investments listed above. For example, you may purchase a strip mall that also has apartment units on top of the stores. This would be a combination of retail and residential real estate.
This is basically as simple as it gets. Some investors concentrate on one of these areas only while others diversify their portfolio with a selection of different real estate investments. All of the opportunities listed above can provide a long-lasting passive income for an investor and many have been able to make a lucrative career out of it.
Set Your Own Commercial Real Estate Goals
Just like any business that you're planning to run, you'll need to have some goals in mind before starting out on the venture. Big goals, little goals, it doesn't matter. It's just putting some type of end place in sight that you can aim for that’s important.
When it comes to commercial real estate here in Calgary your focus should be on what you want and your goals. Success to one person means something completely different to another. If buying one home to use as a rental property is all that you can handle that's fine. If you see yourself managing a set of strip malls that's alright too. Some people want to make millions through commercial real estate investments while others just want to acquire a nest egg for their retirement.
Your goals can change over time too. You'll need to be flexible with them because as you start your investment journey there will be some roadblocks as well as some wild successes along the way. If you think of it as a journey and are willing to grow with your business there's no telling how far you can go.