I have worked with two types of investor clients, the first-time investor and an investor looking to grow their real estate portfolio, I am proud to say that I have advised these clients well & with great success. Understanding your goals and affordability is one of the most critical things before we can start considering investments.
I often have knowledge of some of the most lucrative projects coming in the regions that I am active in. So I have an insight and can help my clients better plan their roadmap to invest in projects before most general realtors in that market know.
As a first-time investor, I understand that it can be a gut wrenching feeling and I will help you through the entire process to ensure you are confident about where you invest your money. My fundamental principal is, “If I wouldn’t buy it with my money, I will not buy it with yours”.
Let me help answer some questions that you may have as an investor.
First Time Investors
Budgeting 80k-100k or is generally a healthy amount of money to work with for your first investment property in a healthy or desirable market. In most cases, the money does not have to be spent all at once. Pre-construction investment opportunities, one of my favourite & those that are highly sought after, have a structured payment plan that allow you to deposit funds over time with the possibility to save more while your investment is being constructed. If you choose to buy something that is turn key ready, you will need anywhere between 20-30% down depending on what you are considering and your current situation.
CALL ME! Please. The best way to start is to get in touch with me so we can have a conversation. This conversation will help me understand your investment goals and in return, it will allow you to have a better understanding of how we identify the perfect investment opportunity while familiarizing you with the process.
Where, What and Why? These powerful three w’s determine where you should be investing, what you should be investing in and why. Once we answer these three w’s, we are now ready to begin your investment journey.
Respectable lift in pricing generally happens during the pre-construction phase. Most projects are completed within 24-36 months. During this time, you may have the option to assign a contract, or you may choose to become a landlord. Below, I have included some pros and cons for both decisions.
- Free up your cash faster having realized a healthy lift in return
- You do not have to pay land transfer tax, closing costs or wait for the project to be completed.
- Allows you redeploy your money into other investment opportunities
- You must pay HST.
- You are at the builder’s desecration when you can carry on an assignment sale.
- Some lawyers don’t know how to structure an assignment sale, so it can be stressful if you don’t know what you are doing or have the right help.
- There are builder and legal fees associated with assignment sales.
- You receive your HST rebate.
- Tenant pays towards your mortgage which allows you to gain more equity.
- You can write-off certain costs while owning investment real estate and the interest on your mortgage unlike your principal residence.
- Enables you to buffer cost of land transfer, real estate commissions and legal fees.
- Committed to the process.
- Capital is tied up unless you have more money to invest.
- Bad tenant.
Investors Looking to
For investors looking to grow their real estate portfolios, I understand you have already had success in the market and might be interested in growing further.
You might be asking, why I should consider investing with Raj?
Are You Looking To Invest Or Are You Speculating The Market?
There is a big difference between speculating and investing. Investing comes with an educated understanding of the market, the region, and the area you are buying in. Investments don’t always have to be the most attractive properties, but they should always have the highest growth potential.
Speculating generally leads to following market news and persona or following recent trends. Speculation is higher risk investing and is generally based on hope and chance.
Understanding the difference between investing and speculating in addition to understanding the varying needs of the different types of investors, enables me to invest smarter for you.
Raj Pathak
Having run my own business, my strong sales experience, and having a successful & proven track record enable me to provide better results, negotiate the highest possible value for your home and ultimately sell higher.
