First Rental Property

Hi Friend,

I hope you are keeping well.

One of the biggest mistakes that new real estate investors make when they buy their first rental property is:

Failure to communicate with their tenants.

Failure to communicate with your tenants ALWAYS results in a poor relationship with them and potentially future Landlord and Tenant issues.

If you are a regular reader at First Rental Property you know that I always talk about some of the fears that hold people back from purchasing their first rental property.

A couple of the major fears that people experience include:

• The fear regarding managing tenants, and
• The fear regarding the repairs and maintenance of a rental property

Far too often I see new real estate investors purchase a rental property, and then outsource the management of their rental property to a property manager.

There is a constant debate regarding whether or not new investors should hire a property manager or not for the management of their first rental property.

After you finish reading this article, click here to learn how to overcome your fears about purchasing rental property.

I personally am an advocate for new investors to manage their first rental property themselves.

The implications that arise when an investors does not manage their rental property themselves is severe.

When a new investor outsources that management of a rental property to a third party, a property management company, the investor becomes removed from the management of the property.

When you are removed from the management of the property itself, you are no longer communicating directly with your tenants.

Ideally, the property management company that you have hired is communicating with your tenants on a regular and ongoing basis.

Unfortunately, this is not the case in many scenarios.

Due to the nature of property management companies, their time is limited as they are managing hundreds of properties.

When a company is managing hundreds of properties, they often have no time to make warm and fuzzy calls to tenants.

The warm and fuzzy calls is what builds relationships with your tenants.  

As a new real estate investor, you need to be making contact with your new tenants once a month.

I recommend that on the first of each month, you call your tenant in order to touch base.

Do not hide behind email or text.  Actually call your tenant.

Email and text messaging is not as good of a tool when you are trying to build a relationship with your tenant.

Calling them is the way to go.

So there you have it!

As a new investor, you need to be calling your new tenants once a month, on the first of the month.  Touch base, say hello, and see how they are doing.

You will be amazed at how beneficial these telephone calls are in the long run.

This is because very, very few landlords actually do this…

Don’t be afraid.  Call your tenants every month.

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: If you are serious about buying your first rental property, sign up for The First Rental Property Newsletter.  In the newsletter you will read about tips and tricks from experienced real estate investors on how to buy your first rental property!

Hi Friend,

I hope you are doing well.

If you are just starting out in the real estate investing game, you are probably learning about the concept of Leverage.  You are also probably trying to figure out if leverage is good or bad.

The power of leverage in real estate is a great thing, and leverage should be used in order to buy rental property.

A common question that I get asked by new real estate investors is:

Am I able to use the equity in my home in order to buy a rental property?

A follow up question that I get asked after this initial question is:

“How do I do this?”

For starters, it all depends on where you live.  The rules imposed by Lenders differ depending upon which Country, Province, State, or Territory you live in.

If you reside in Canada, then you should know that most Lenders (Banks) will allow you to Leverage your principal residence (property you live in) up to 65%, 80% or sometimes even higher.

The percentage in which the Lender will allow you to Leverage your property depends upon the lending product that they are providing you with.

For instance, the percentage in which your principal residence can be leveraged will vary if you are requesting from your lender a ‘secure line of credit’ or if you are requesting a ‘re-finance’.

A question that experienced real estate investors begin to ask is:

Can I refinance one rental property in order to buy more?

The answer to this is YES.

Refinancing existing rental properties is a great way in order to purchase more rental properties.  This strategy is used by many successful real estate investors.

Bringing it back to basics, as a new real estate investor you need to determine if you have enough equity in your principal residence in order to leverage it so that you can buy your first rental property.

Don’t delay. The Power of Leverage is an amazing thing.  It can help make your dreams of buying a rental property reality faster than you ever thought possible!

Happy Investing!

Neil Uttamsingh

ps: I am an experienced Real Estate Investor and  licensed Realtor.  I help people like you everyday purchase their first rental property.  If you have any questions or are looking to buy a rental property, feel free to get in touch with me.  Send me a note at NEIL@FIRSTRENTALPROPERTY.COM and I will help guide you through the process!

Hi Friend,

I hope you are doing well.

The expert marketers at Nike once coined the slogan, Just Do It

What a great slogan this has become.

It is such a great slogan that it can literally apply to any aspect of your life.

What were the experts at Nike thinking when they came up with such a slogan?

Just do what?

Just buy Nike shoes?

I have no clue what they meant to be honest, and probably most people had no clue either.  What I do know is that this slogan is a perfect slogan for new real estate investors to  live by.

When a new real estate investor is on the fence and deliberating whether or not they should buy a rental property, I say…

Just Do It.

If you are a new real estate investor looking to buy your first rental property, you need to Just Do It  because:

• Most people don’t ‘Do It’
• Be different, and make things happen
• If you don’t ‘Do It’ and buy a rental property you will not benefit financially
• There will always be fear associated with buying a rental property
• Real Estate education is good, but over thinking and second guessing yourself is not
• You could be able to fund part of all of your retirement if you invest wisely in rental properties
• You will become an entrepreneur and will be able to share your experiences of owning rental property with others
• You will learn with time, that owning a rental property is not hard.  You just have to stay committed to it

I think that one of the reasons why Nike was so successful with their slogan is because it resonated with people on many levels.

People like action takers.  People gravitate toward others who say they are going to do something, and they do it.

Keep this all in mind as you navigate your way towards purchasing your first rental property.

Happy Investing!

Neil Uttamsingh

ps: I am an experienced real estate investor and Licensed Realtor.  I help people like you every day purchase their first rental property.  If you are interested in buying your first rental property, send me a message at NEIL@FIRSTRENTALPROPERTY.COM and I will help guide you through the process!

Hi Friend,

I hope you are doing well.

Surviving long term as a real estate investor is not an easy task.  Experienced real estate investors know how much hard work and effort it takes in order to stay in the game.

New real estate investors for the most part have absolutely no idea how much commitment is involved once a rental property has been purchased.

The title of this post, “Real Estate Investing Is A Game Of Endurance” sums up very accurately the journey of purchasing rental property, owning rental property and managing rental property.

Throughout this game of ‘endurance’, you are tempted to give up when the going gets tough.  When you encounter difficulties with your rental property, the solution that presents itself seems to be to ‘sell the property’ and move on.

This solution that easily pops up, ‘selling’ is the wrong choice.  The urge to unload your investment during hard times should be resisted at all costs.

It is only through experience that a real estate investor is able to finally realize that real estate investing is indeed a game of endurance.

During the early stages of investing, it does not seem at all like a game of endurance.  Rather, the initial excitement of owning a rental property is usually the emotion that last for some time long after your purchase.

Most experienced real estate investors need a support group in order to win the game of endurance.

The support group can be fellow successful real estate investors, a wise business partner, or a fellow entrepreneur.

The support, encouragement and guidance offered by these individuals during rough times is paramount.

To last in the real estate investing game long term, and to endure all of the obstacles that lie ahead of you, draw on the support and encouragement of a select few.

Happy Investing!

Neil Uttamsingh

ps: I am an experienced real estate investor and Licensed Realtor.  I help people like you purchase rental properties every day.  If you are looking to buy your first rental property, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started…

pps: For a step by step process on how to do things the right way, check out my most popular blog post as decided upon by readers, How To Buy Your First Rental Property

Hi Friend,

I hope you are doing well.

The bottom line is that I want to help you purchase your first rental property.

The reality is that most people who ‘want’ to buy real estate as an investment, never end up doing so.

Yesterday I wrote about New Year’s resolutions for Real Estate Investors.  If you missed the post, check it out here:

Article Number 1

Top New Year’s Resolutions For Real Estate Investors

I was not the only one who was writing about New Year’s resolutions for real estate investors.  When I ‘Googled’, “new years resolutions for real estate investors” this is what I found…

5 Real Estate New Year’s Resolutions You Should Make

This article was straight forward and well written.  In the article, the author talks about resolving to think of a property as a ‘product’.  An interesting point.  The article is worth checking out.

Article Number 2

7 New Year’s Resolutions For Successful Real Estate Investors

The first point addressed in this article by author Paul Esajian was bang on.  Paul said that real estate investors need to “keep eyes on the big picture”.  Far too often experienced real estate investors lose sight of why they are investing.  This is a dangerous thing because when you are not focused on the end goal, it can cause you to make short term decisions that do not benefit you.  (i.e.: sell a property)

Other Articles

There were a LOT more articles that came up when I ‘Googled’ the topic, “new years resolutions for real estate investors“, however, the above 2 were the most relevant to share.

So What Now?

Everyone talks about new years resolutions, but the vast majority of people never follow through on them.  If you are a new real estate investor and you are interested in purchasing your first rental property, and you have not done so yet, you need to get to work.

I suggested this in a previous article and I will suggest it again.  If you are new to investing and you live in the Toronto Area, consider attending one of my FREE real estate workshops.  The workshops are called, “Landlord Bootcamp For Beginners“, and they are designed to help educate the new real estate investor.  Click HERE to register for an upcoming workshop.

In Summary

Lots of people make new years resolutions.  Most people break them.  Don’t be someone who makes a resolution to buy a rental property in 2013 and does not follow through.  Use all of the resources at your disposal to help educate yourself further so that you can take action and buy your first rental property!

Happy Investing!

Neil Uttamsingh

ps: I am an experienced real estate investor and Licensed Realtor.  I help people like you everyday purchase their first rental property.  If you need help with purchasing your first rental property, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started…

Hi Friend,

I hope you are doing well.

With the start of a New Year upon us, many people have no doubt made some New Year’s resolutions.

I have never really put much thought into what some of the Top New Years Resolutions are, however, I am wondering if you have…

In my mind there is only one New Years resolution that new real estate investors should have.

If you are a new real estate investor, and you want to purchase your first rental property, then your singular new year’s resolution should be to:

Purchase A Rental Property

 Will You Pass or Fail?

Why do New Year’s Resolutions Fail?  Depending upon who you ask, there are a variety of reasons as to why New Year’s resolutions fail.  One of the biggest reasons as to why I believe New Year’s resolutions fail is because people do not have a clear and specific plan as to how they are going to fulfill their resolution.

Failure Is Not An Option

Since most people fail with fulfilling their new year’s resolution, you have to ensure that you do not fall into this category.  The best way to guarantee that you will be successful in achieving your New Year’s resolution is by creating a plan of action.

As a new real estate investor, if you are not currently doing the following things, you must start immediately.  You need to:

1) Attend Real Estate Workshops or Meetings where you can learn from experienced real estate investors

You are only going to learn about real estate investing from people who have done it already. As such, you need to start hanging out with real estate investors if you are not already.  There is so much that you can learn from them.  Most important:  Stop taking advice from people who do not own any rental properties.

2) Obtain a referral for a Mortgage Specialist or Mortgage Broker

You need to work with someone who can obtain financing for your rental properties.  Mortgage Brokers, Mortgage Specialists and Lenders who work with real estate investors are the best people to obtain your financing from.  They understand how to finance a rental property.  The advice and knowledge that you will get from them will be invaluable.

3) Obtain a referral for a Realtor who understands rental properties and how to work with real estate investors.

Working with a Realtor who understand rental properties and who understands how real estate investors operate is key.  You need to work with someone who knows how to find a good deal and you need to work with someone who knows how to analyze a property.  You can obtain this referral from any current real estate investor that you meet at one of the real estate workshops that you are attending.

4) Set Deadlines

Nothing gets done if there are no deadlines.  Make sure that you set deadlines for all of the above mentioned activities.  If you do not, the weeks and months will drag on, and you will not end up taking any action.  Deadlines are important.  Without them, you will not move forward.

5) Be Accountable To Someone

Share your goals, ideas and dreams of buying a rental property with someone that is close to you.  Tell them all about your plans of owning and managing a rental property.  By sharing this with them, it will hold you accountable to doing it.  You will not want to let them down, by not following through on your word.  It is also a smart idea to have them check in on you.  Ask them to periodically check on your progress.  Ask them to help hold you accountable.  This will be a huge help in pushing you into action.

Happy Investing!

Neil Uttamsingh

ps: I am an experienced real estate investor and licensed Realtor.  I help people like you everyday purchase their first rental property.  If you are interested in purchasing your first rental property, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started.

pps: If you live in the Toronto Area, consider attending my FREE monthly real estate workshop called, Landlord Bootcamp For Beginners.

To read what new real estate investors are saying about the workshop, click HERE.

Hi Friend,

I hope you are doing well.

Investing in real estate is a long term strategy.  Most new real estate investors who are just starting out think that they are going to become rich by investing in real estate.  They feel that they will become wealthy the moment they purchase their first rental property.

The reality is that you can become wealthy by investing in real estate, however, becoming ‘rich’ does not happen overnight.

To become wealthy through investing in real estate takes a life time of  focus and commitment.

When I bought my first rental property in Oakville, Ontario, Canada, I did not know much about real estate investing.  All I knew was that I wanted to make money by investing in real estate.

I first thought that I would only own the property for between 3 to 5 years.  As time went on, and the more I discovered about real estate investing, the more I realized that I should own my first rental property for as long as I possibly could.

By speaking to and studying the habits of many veteran real estate investors, I discovered that wealth is created through real estate investing over the long run.

Further, buying and selling rental properties without a clear action plan does not help you to become wealthy.

What I Did Last Year…

This past year I was attending a real estate event in Toronto called The Property Show.

A prominent real estate broker and developer was speaking at the event.  The individual was Brad J Lamb, aka, Brad Lamb.

Brad was addressing a question from an audience member on the topic of real estate investing.

Brad said something to the audience member that has stuck in my mind ever since.

Brad was explaining the to audience member that real estate investing was a long term strategy and that you:

“Don’t count your money every six months”

These were very wise words. Experienced real estate investors know that  a trap that you can fall into is to closely reevaluate your real estate investments over and over again.

The point that Brad was making was that if your investments are performing well, don’t constantly monitor them.  The action of over monitoring them is not a productive one.  Just let the be, and just let them to continue to grow through mortgage pay down, appreciation and cash flow.

This was a short post today, but real estate investing in NOT a short term game.  For a detailed breakdown of how to do things properly, visit my most popular blog post to date:

How To Buy Your First Rental Property

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember, I am an experienced real estate investor and Licensed Realtor.  I help people like you everyday purchase their first rental property.  If you are looking to purchase Toronto real estate, Ottawa real estate, Brampton real estate, Hamilton real estate, Richmond Hill real estate, Oakville real estate, Mississauga real estate, North York real estate, Kitchener real estate, or Brantford real estate, please send me a message at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started !!!

Hi Friend,

I hope you are doing well.

There is one big similarity between new real estate investors and babies that I have observed and which I am going to share with you in today’s blog post.

Before doing that, I am going to tell you a little bit about how I got started in real estate investing.

My Story

I purchased my first rental property in 2005.  The property that I purchased was a townhouse and was located in Oakville, Ontario.  I purchased the property for $250,990.  The property was new construction, meaning that the property was in the process of being built.  When I purchased the property from the builder, the deposit requirements from the builder at the time was $15,000.  I obtained a First Mortgage from Royal Bank of Canada, which is one of Canada’s and North America’s leading banks.  The interest rate on the mortgage at the time was 4.25%.

When I bought my first rental property, I was not a member of an awesome real estate investment group, nor did I know anyone very well that was an experienced real estate investor.  As such, I had no one that I could ask questions of.  If I had a real estate specific question, I had to figure out the answer on my own.  Due to the fact that I had to learn everything on my own, it took me approximately one year from the time in which I began researching potential rental properties to the time in which I bought my first rental property.  When I purchased my first rental property, I had no one to hold my hand and help guide me through the process.  I was on my own.

Why New Real Estate Investors Are Just Like Babies

You as the new real estate investor need to have your hand held, just like you had your hand held when you were a a baby.   When you were a baby, you had your hand held by older people who simply knew better than you.  Your hand was held in order to provide you with some guidance and with comfort.

For example, if you were crossing a very busy and dangerous street, your hand should have been held by an older person who was able to keep you by their side until there was a break in traffic and until the street was safe to cross…

Further, when you were a baby, if something startled you and you became scared, an older person would hold your hand in order to provide you with some comfort.

The Same Applies In The Real Estate Investing Game…

…If you are a new real estate investor, you need to have your hand held.

You need to have experienced real estate investors lead you through the path of least resistance.

You need to have someone there who can answer your questions and help eliminate your fears.

Most importantly, you need someone to hold your hand and lead you to the right real estate investment opportunities.

When you are a new real estate investor (or baby for that matter) you have no idea about right from wrong.  You have no idea about what real estate investment is right for you.  As a result, you need someone there, who is experienced and trustworthy who can hold your hand, and help guide you in the right direction and toward the right real estate investment opportunity.

If you never have anyone there who is guiding you towards the appropriate investment opportunities, chances are is that you could be spinning your wheels and never end up buying your first rental property.

The reason why I say this is because I encounter hundreds of new real estate investors who do this. They don’t have the right guidance, they spin their wheels and they never take action, and never buy their first rental property.

If you want to do it right, get someone who you can trust who can hold your hand and lead you to the right investment!

Happy Investing!

Neil Uttamsingh

ps: Remember, I am an experienced Real Estate Investor and Licensed Realtor.  I help people like you buy your first rental property.  If you are interested in buying Toronto real estate, Ottawa real estate, Brampton real estate, Hamilton real estate, Richmond Hill real estate, Oakville real estate, Mississauga real estate, North York real estate, Kitchener real estate, or Brantford real estate, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started in the right direction !!

Hi Friend,

I hope you are doing well.

I always enjoying meeting with experienced real estate investors, because I always learn a lot from them.

During a meeting I had recently with a very experienced real estate investor (40+ years of investing in real estate) , one quote stuck out in my mind from our conversation more than any other.

The quote he said to me was…

“Conservatism never hurt anybody”

Here is the context of the conversation I was having with the experienced real estate investor, when he said this quote…

Context

We were discussing the real estate market in the Greater Toronto Area, and it’s performance over the past 12 years.  The experienced real estate investor was confirming that over the past 12 years, the market has performed exceptionally well.  Further to the market performing exceptionally well, he envisioned that the market would continue to do well, however, at a much more reasonable and historical rate of return, and no where near the record highs of the past 12 years.

The expert investor went on to conclude that if your given real estate market is performing at or above the cost of inflation, this is a very good thing in the long run, as this is all you need.

Many, many people, especially young real estate investors living in the Greater Toronto Area have become used to a real estate market in which prices rise at a rapid rate.  According to the experienced real estate investor, this is not reality, and a more balanced market where prices rise at a lower rate is much more sustainable.

We then spoke about markets in and around the Greater Toronto Area that have been performing at a much more balanced level.  These have been levels that have been equal to or just slightly above the cost of inflation.  He concluded that these types of real estate markets can be very beneficial to the long term real estate investor, as you are able to make money in these markets if you invest for the long term.

In Summary

“Conservatism never hurt anybody”

In my mind, this quote means, that you do not have to hit it rich when you buy your first rental property.  Take calculated risks that will benefit you.  Don’t take on too much risk.  If you do, you could lose everything.  After all, slow and steady wins the race…

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember, I am an experienced Real Estate Investor and Licensed Realtor.  I help new real estate investors like yourself purchase your first rental property.  If you are buying Oakville real estate, Hamilton real estate, or Toronto real estate, send me an email at NEIL@FIRSTRENTALPROPERTY.COM and I will help you get started!!

Hi Friend,

I hope you are doing well.

If you are interested in buying your first rental property, and have not done so already, you will benefit by reading this post.

There may be many factors that are holding you back from buying your first rental property.

When I first started out as a real estate investor, it took me about one year of doing research and asking questions before I took the leap and bought my first rental property in Oakville, Ontario, Canada.

I have since gone to purchase Oakville real estate, Hamilton real estate and Toronto real estate.

In an effort to help shed some light on why you have not bought your first rental property yet, here are 5 reasons that are holding you back:

1) A Lack of Education

You may know a little about real estate investing, however you don’t know enough.  You read some blogs here and there, but that is where your education ends.  For most new real estate investors this is not enough.  You need to start to talk to people who own rental properties and learn about their experiences.  This action will push you over the edge, so that you feel comfortable enough to buy your first rental property.

2) You Are Not A Member Of Real Estate Investment Groups

Real Estate Investment Groups are the perfect place to meet people who own rental properties.  At these groups, you will find experienced real estate investors as well as real estate investors who have *just* purchased their first rental property.  It has been my observation that real estate investors attend these groups for support.  If you are to become a real estate investor, having support is essential.  You need to have people that you can go to, to ask advice on real estate matters.

If you are not a member of a real estate group, you need to join one.  If you live in the Greater Toronto Area, consider attending my monthly Real Estate Workshop called, Landlord Bootcamp For Beginners.

 3) You Do Not Know A Good Mortgage Broker or Mortgage Specialist

Financing is one of the most important topics that you need to understand when you are buying a rental property.  Everyone’s personal financial situations is different.  Depending on your situation, you may need to consult either a Mortgage Broker or a Mortgage Specialist. If you are in the Greater Toronto Area, the mortgage broker you should contact is Kevin Boughen and the Mortgage Specialist you should contact is Chester Yu.

 4) You Are Not Associating Yourself With the Right People

People are either positive or negative.  Which are you?  This is an important question to ask.  An equally important question to ask is, what about the people that you hang around with the most?  Are they positive or negative?  So, so, so many times I remember hearing advice from people who did NOT own any rental properties.  They would be giving me unsolicited advice on whether or not I should be buying a rental property.  Since you are a new real estate investor, it is important for you to associate yourself with positive people who have experience owning rental property.  Never take advice from someone who has NOT accomplished something that you are trying to achieve.

 5) You Are Not Working With An Investment Focussed Real Estate Agent

A very common questions that new real estate investors ask is, “How do I find a rental property?”  The best answer for this is, “Work with someone who knows where to find rental properties”.  Lots of new real estate investors struggle at the beginning trying to find properties that they think would be a ‘good rental property’.  The truth is that, most new real estate investors have no idea where to begin their search for rental properties.  It is always best to work with a real estate agent that understand rental properties, as well as the market that you are looking to purchase a property in.  Working with someone like this will help you in the long run as it will make the process less frustrating.  The process will be less frustrating because real estate agents with knowledge of rental properties know which types of properties are suitable investments.  Most importantly, they will know where EXACTLY you will be able to find these properties in your market that you have chosen to invest in.

In Summary

If you are a new real estate investor and you have not purchased your first rental property, these 5 factors may be holding you back.  If you put in some effort and work towards overcoming these factors, you will be able to buy your first rental property.

Stay focused and committed!  You can do it!

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: Remember, I am an experienced real estate investor and Licensed Realtor. I help new real estate investors like yourself purchase your first rental property.  If you are interested in buying Oakville real estate, Hamilton real estate, or Toronto real estate, send me an email at, NEIL@FIRSTRENTALPROPERTY.COM, and I will help you get stated!