Real Estate Investing In Ontario
The Art & Science Of Real Estate Investing In Ontario
Below is a brief and very general outline of some of the essential steps to begin making money with privately listed real estate.Real Estate Investing in Ontario
Create A Plan
Your real estate investment plan should be constructed based upon your financial situation, personal circumstances, age, your risk tolerance as well as your financial goals. Contact us for insights on your financial objectives, risk considerations and possible exit strategies.
Build Your Power Team
Prudent investors have their experienced real estate power team members in place before starting to invest. REICO can assist you to find suitable real estate professionals for your team.Real Estate Investing in Ontario
Determine The City, Neighborhood, Or Geographical Areas Where You Want To Find Properties
Do research then consult with our team who are knowledgeable in the areas where you want to buy real estate. Also, keep up to date on the key factors that affect real estate (i.e. job growth, migration, economy, infrastructure improvements, etc.).
There are many ways to find these privately listed commercial properties, but some techniques work better than others. Our strength is in finding quality commercial properties, so register to gain access to commercial real estate investment opportunities that may be suitable for your portfolio and investment objectives.Real Estate Investing in Ontario
Do Quick Calculations
These real estate investment analysis calculations will save you time because they quickly allow you to determine if a property worth pursuing. Calculations to consider include Gross Rent Multiplier, CAP rate, Cash Flow, Return On Equity and Cash on Cash Return. (If the actual expenses are not available, use 35% of the total revenue. For properly managed properties, the expenses should not exceed this amount).
Determine The Seller's Motivation (if possible)
The seller’s motivation will help you to determine how willing the seller is to negotiate. Find out why they want to sell and how soon. Also, determine the amount of equity in the property, if the mortgage is assumable, and whether or not they will accept a VTB. Our partners will assist in this aspect of the process to ensure that your best interests are protected.
Collect More Financial Information For Due Diligence
Ensure you collect all expenses including utilities, insurance, tax, etc. Even if the property has a low ‘reported’ vacancy rate, use 5% and 7% for property management.
Determine Your Maximum Purchase Price
You can accomplish this by using purchased software, excel spreadsheets or with a reliable calculator. We can assist in this important step to ensure that your offer is accepted and your cash flow is maximized.
Submit Your Offer (s)
Submit an average of 5-10 offers per week to ensure that you keep on track with your real estate plan. You can skip this step if you are on our income property VIP list. Contact us for more details.Real Estate Investing in Ontario
Do Your Due Diligence
A few things you can do are to peruse the sold comparables, check the zoning, collect bills, order an appraisal, order an inspection, talk to tenants, visit the property virtually on ‘Google Earth,’ and visit the property in person. We can assist in this aspect of the process. Contact us for more information.Real Estate Investing in Ontario