First Rental Property

Hi Friend,

New real estate investors are just like experienced real estate investors.  The similarity between these two groups is that they are both afraid of the same things when it comes to real estate investing.

The experienced real estate investors have learned how to deal with the fears that they experience.  Whereas, the new real estate investors have not yet learned how to handle or cope with the fear that they experience surrounding real estate investing.

When I first started investing in real estate back in 2005, there were many things that I did not know and there were many things that I was afraid of.  I was able to fight past these fears and I have since gone on to purchase Oakville real estate, Hamilton real estate, and Toronto real estate.

Here is a complete list of the:

Top 10 Things That All Experienced Real Estate Investors Dread…

1)  CALLING TENANTS

When a real estate investor has to call their tenant, they become nervous because at that time there may be something that needs to be fixed.  At this time the item that needs to be fixed could be big or small.  The investor may have no idea how to fix the item, and may not know anyone that they can call in order to have the item fixed.  As  a result of this, the investor delays calling their tenant, because they are avoiding the problem.

What can you do about it?

You must set up a time and call your tenant every “first of the month.”

•  Force yourself to do it.
•  Make it a routine.
•  Put it in your calendar.

There should be at the very least, communication via telephone with your tenant once a month.  Email and text is not as effective communication versus over the phone.  Face to face is the best.

2)  REPAIRS AND MAINTENANCE

All real estate investors are  afraid of the potential repairs and maintenance that arise with their rental properties.  They are afraid of this because they always want to remain profitable, and they don’t want to lose money on their investment.  When people lose money on an investment it causes them to begin to question their investment..

What can you do about it?

Have a reliable person you can always call upon for repairs and maintenance.  Deal with repairs and maintenance issues as they arise.  Don’t put them off.  If you put them off they can become worse with time.  As such, a repair that may have cost $200 may end up costing you $2000 due to increased damage to the property.

3)  RENT COLLECTION

Experienced real estate investors worry about rent collection and if a tenant will pay rent on time.

What can you do about it?

Be firm.  Do not bend the rules.  If the rent is late, you submit the proper notice.  Make sure that the tenant keeps their word.  If the rent is late and the tenant says that they will provide it by a certain date, if the rent is not provided by the date, don’t’ keep on giving them grace.  Call them on it, and enforce the non payment of rent through the proper means.

4)  OPERATING LINE

Some experienced real estate investor worry about their operating lines going “too high”, and their revenues not being sufficient enough in order to bring it down.  More eloquently put, they worry about drawing too much of their operating line, and  fear that the revenue (rent collected) will not be sufficient in order to pay down the operating line.

What can you do about it?

Think like a bank..  Some Canadian Banks like BMO Bank of Montreal  lend 10 to 15 percent of a company’s gross annual sales in the form of an operating line.  Consider only borrowing that amount, and thus drawing your operating line to that amount.  This will give you peace of mind and will ensure that yhou are not over extending yourself.

5)  WATER LEAKS

Experienced real estate investors worry about leaks in the bathrooms and the damage it will cause to the house, overall if not looked after.

What can you do about it?

Inspect regularly for water damage.  Make sure you do caulking on a regular basis. If you notice water seepage early, make sure that you do the work to repair the damage before the damage becomes more severe.  Have someone inspect the property who has an eye for detecting water damage.

Interested in learning about the NEXT 5 Things That All Experienced Real Estate Investors Dread?

Check back into First Rental Property for the conclusion of this blog post…

Happy Investing!

Best Regards,

Neil Uttamsingh

ps: I am an experienced real estate investor and licensed Realtor.  I help people like you everyday buy their first rental property.  If you are interested in purchasing  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.

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 !!