First Rental Property

Hi Friend,

I hope you are doing well.

One night can change your life or be a complete waste of time.  Whether you experience the change or you misuse your time is entirely up to you and no one else.

When I was first starting out as a real estate investor, I was obviously looking for advice on how to buy a rental property.  Initially, I was never a part of any real estate investment monthly workshop like the Landlord Bootcamp For Beginners.

I was able to navigate things on my own at the beginning and ended up purchasing Oakville real estate, Hamilton real estate and Toronto real estate.

Today things could not be easier for the new real estate investor.  There are lots of quality real estate investment groups that exist that provide support and guidance to the new real estate investor.

If you reside in the Greater Toronto Area, the following real estate groups are ones you should consider joining if you are looking to purchase your first rental property.

Thornhill Wealth Forum

Real Estate Investment Network

Landlord Bootcamp For Beginners  ( I run this group, along with a few key Team Members)

A word of caution to you.  These groups are for serious action takers.  If you are looking for a social night out, you are better served by attending  a local pub in your area.

 I have a Beef To Pick

My beef to pick is as follows…

I have noticed over the course of the past 7 years as a real estate investor that the majority of people that attend Real Estate Investment Workshops do so as if they were on a ‘social night out’!

Most people attending these workshops don’t take them seriously.  They don’t soak up all the information there is to offer at these events.  They attend meeting after meeting after meeting, but never end up taking any action and buying a rental property.

Even better, I have observed people who become members of several real estate investment groups.  Each of these groups could have a meeting once a month.  Therefore, there are people who are ‘new real estate investors’ who are attending several meetings each month, month after month and year after year, without taking any action…

A word of caution if you fit the profile of the ‘new real estate investor’ I described above…

Stop joining real estate investment groups!

Pick ONE group that you find is very valuable and stick to it.

One valuable real estate investment group is all that you need.

When you do attend these monthly sessions, take on a proactive role and not a reactive role.

Meaning, come prepared with questions that you would like to have answered.

Make it your goal to speak to experienced real estate investors during the session and get your questions answered!

If you are serious about getting started, don’t delay!

Join a quality real estate investment group and attend the meetings with your OWN agenda.  Get your questions answered and gain the support you need in order to help you take action and 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 buy their first rental property.  If you are interested in purchasing 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.

The biggest thing that new real estate investors need when they are first starting out is help.

Buying a rental property can be a daunting task.  You need to be able to ask questions and find the right answers to your questions.

Since the majority of the general population does not own a rental property, that means that there are select locations in which you can obtain the answers to your questions.

Some aspiring real estate investors want to take action and buy a rental property fast.  If you are someone that fits this profile, good for you!

A recent realization I have made is that new real estate investors can speed up their decision making process with regards to purchasing a rental property by attending real estate workshops.

How will Real Estate Worshops Help You?

It is very possible that if you attend real estate workshops, there will be people in attendance that have experience with real estate investing.

The people with the experience will sometimes be the organizers of the workshop, or sometimes the participants in the workshop will have experience with real estate investing.

A real estate workshop is a very good place to learn information in a small and comfortable setting.

If the organizers of the workshop have a lot of knowledge with regards to real estate investing, you will be able to learn a lot by attending.

I have seen from my own personal experience that when new real estate investors are able to ask questions in a face to face session, they are able to speed up the process and buy a rental property faster.

This is of course, given that they are able to get all of their questions answered!

So, where do you go from here?

So if you are a new real estate investor wanting to buy your first rental property, this is what you need to do…

• You need to jump start things, and start attending real estate workshops.
• By doing this, you will be able to get the answers to some of your questions.
• If you attend enough workshops, hopefully you will be able to get all of the questions answered in a face to face setting, by people with lots of experience with real estate investing.

What First Rental Property Is Up To…

First Rental Property has started to run workshops in the Toronto area for new real estate investors.  If you are in the area and are interested in coming to an upcoming workshop, send me a note at neil@firstrentalproperty.com

For all of my readers all over the world, especially in the US, if you need any help in buying your first rental property, send me a note at neil@firstrentalproperty.com and we will get you started in the right direction.

Happy Investing!

-Neil Uttamsingh

ps: First Rental Property is now a Realtor and is helping people worldwide with the purchase and sale of real estate.  If you have any questions, or need help getting started, email me today at neil@firstrentalproperty.com

pps: here is a short video of a Real Estate Workshop that First Rental Property ran this week…

[youtube]http://www.youtube.com/watch?v=9eRGfL__GNA&list=UUAQKmDw-TSCMWJrDF-pRs3g&index=1&feature=plcp[/youtube]

Hi Everyone,

There is a secret to investing in real estate that you need to know.

Chances are, if you have been investing in real estate successfully, you have figured this out.

If you are new to the world of real estate investing, you probably don’t know this by now.

The advice that I am going to offer in this article is straight forward and seems like common sense.

However, you must know that this is not common sense.

This realization has taken me 7 years to fully understand.

It has been close to 7 years since I bought my first rental property.  Luckily, my first rental property purchase was a  great success.  So much so, that I still own that property today despite temptation to sell due to the increase in value that it has experienced.

If you can follow the advice presented in this article, you will be a successful real estate investor, no problem.  All you need to do is focus on the follow 3 principles when you are buying your first rental property.

Here are the principals in no particular order:

1)   Buy in an area experiencing above average appreciation.

When I bought my first rental property, I understood this concept completely.  I purchased a  property in a town with above average appreciation compared to surrounding towns.  This was the smartest move I have made in my real estate investing career as this property will double it’s value within the next 5 years from the time I purchased the property. (property was purchased for $250,990 in 2005.  The estimated value of the property in another five years will be approximately $500,000)

For the most part when people buy a rental property, they are motivated to do this due to two reasons.  The first reason is to build wealth through property appreciation, and the second reason is to generate an income stream.  Speaking of income streams…

2) Your property should cash flow

Notice that I use the word, ‘should’ and not ‘must’.  Here is the reason why…

My first rental property did not cash flow when I first bought it.  In fact, it was a negative cash flow property by about $200/month.  I bought the property because I knew that it was going to appreciate.  I knew that the appreciation of the property would cancel out any small loss I was incurring on a monthly basis.

This was back in the year 2005.  Clearly things have changed since then with our world economy.  As such, we are not experiencing the same levels of property appreciation year over year in many real estate markets.

I say that the property ‘should’ cash flow because it does not ‘have’ to cash flow.  I think it ‘should’ cash flow because you need that cash flow to pay for any operational costs associated with  running the property.

Here is the reality…

If you own a rental property for any given period of time, there will be some repairs and maintenance that you will have to take care of.  Whether it is replacing the furnace, air conditioner, or updating to new wood flooring, there will be some additional cost that you will incur down the road that you have to take care of.

The money required for your repairs and maintenance will either be coming from your own personal funds, from borrowed funds such as a line of credit, or from the cash flow being generated from the property.

A rental property that you purchase ‘should’ cash flow because you will need this cash flow in order to pay for expenses related to the property.

I have used cash flow from my properties to pay for Christmas gifts for my tenants, as well as Welcome Baskets for tenants when they first move in.  The money required to pay for these gifts has to come from somewhere.  If it is not coming from out of your own personal funds, the second best place it can come from is the cash flow generated from the property.

3) You need tenants making an above average income that are low maintenance

This last point is going to spark some controversy no doubt.  But here is the reality.  The controversy that will result from this statement, will be generated from people who own or who have some sort of interest in properites in low income areas.

The plain truth is that, if you have a tenant profile that is making an above average income, chances are is that they will be low maintenance.

Low maintenance meaning that you will not be faced with tenant and landlord issues such as evictions.

I have experienced owning properties with tenants earning below average incomes as well as above average incomes.

If I had the choice (and I do) I would chose to have tenants making an above average income.  Knowing this, in return I would be rewarded with an easy property to manage.

Generally speaking, I believe this to be true because tenants earning an above average income for the most part experience less social problems.

On the flip side, tenants earning below average incomes are peppered with social problems.  (this is not everyone of course.  However, if you stick around as a landlord long enough, you will see what I am talking about)…How is that for a controversial statement?

So in summary, when you are buying a rental property, and especially when it is your first rental property, stay focused on the following:

Buy for appreciation

Remember, you need ‘cash flow’

and…

Get above average income earning tenants!

Until next time.

Regards,

Neil

ps: sign up the First Rental Property Newsletter by entering your email address on the top right hand corner of the blog.  In the First Rental Property Newsletter you will get advice from experienced real estate investors on how to purchase your first rental property!