Hello Everyone Investing in Hamilton Real Estate!!!
Congratulations to my client and friend Gillian Irving for the massive amount of action she took in the last two years to acquire five investment properties and for being featured in this month’s Canadian Real Estate Wealth magazine in recognition of her accomplishment while holding down full time employment and being a wife and mom to FOUR young kids. UNBELIEVABLE!! I’m a new dad myself and life has been a handful with just one let alone FOUR!! What?!?! Here’s the article in case you missed it:
Gillian will be speaking about her experience at the upcoming Investor’s Forum in late March and as a special treat for you all, Gillian will be our guest for our Veteran Investors Panel on March 14th for our monthly Mr. Hamilton’s Inner Circle. Gillian will be sharing her secrets to becoming a successful investor in real estate, 2nd mortgages, etc. in such a short amount of time. You don’t want to miss this! Email Meaghan(at)mrhamilton.ca to get yourself registered!
Speaking of successful investors, being that I’m always trying to learn about how to be successful, I look to several of my investors who have taken massive action to buy numerous investment properties in only a couple of years and they have several things in common. We called them key success factors (KSF) back in Business School and some of them may surprise you.
Credit – the ability to obtain mortgage financing. At the beginning, almost every investor buys in their own name or at least personally guarantee the mortgage for property held in a corporation.
Capital – the vast majority of investors are using Home Equity Lines of Credit (HELOC) on their personal residence to qualify, for down payments and renovations. I have done this several times including buying property with HELOC monies, renovating, the obtaining traditional, cheap financing. A small number of investors have cash or cash equivalent assets to fund their investments. Typically these investors are high net-worth or they are lucky enough to have received gifts from family (our Robin may fall in the category of lucky as we’re working our tails off to build our legacy). However capital always run outs, usually well before credit does as most quality mortgage agents will tell you. With necessity being the mother of invention, sophisticated investors start to raise capital via other peoples’ money to form joint venture partnerships to acquire future investment properties.
Really nice people – Not all successful, rich people are jerks. Would you ever allow a jerk to manage your mutual funds or partner with one for a start up business? No, you wouldn’t, and my successful clients are no different. Their kindness and care for their JV partners instantly creates trust as successful investors are more cautious with JV money than with their own. Imagine that, prioritizing other peoples success over personal gain. Would you act any differently with your mother’s money than your own?
Making investing a priority – Too busy? We’ve all been there but guess what happens when you do not make the time to educate yourself, build a team, get pre-approved for financing, travel to Hamilton to view potential investment properties? Someone else will eat your lunch. If a good opportunity slips through you hands there will be someone else ready to capitalize. From my experience with successful investors, they figure out a way to make it work. But you have a full time job and kids? You’re in the same boat as almost every investor we work with including Cherry and I yet we get it DONE. If you can not, then investing is not that important to you. My client Ryan Hindmarsh needs only 10 hours to buy a house. He did so by building a team he could trust and delegate to.
Delegate the search for your ideal investment property to your real estate professional. In this case. Why delegate? The Realtor you used to buy your home, they assisted you in purchasing a home that was in a neighbourhood you preferred for its schools and distance to your work, etc… Investment properties follow a system to limit risk and optimize returns from rental income and price appreciation. Do you care what colour the kitchen counter top is or if the master bedroom has a huge walk-in closet? No you don’t, you care about how much you have to invest, what the property will cash flow and will the property appreciate in value. That’s where investment specialists like James and I come in. We both follow systems to own several investment properties, want the same for you and have your best interests at heart. Why not delegate is the question.
Take Action – Taking action is the missing ingredient as my friend Julie Broad, author of “More Than Cash Flow” always says. Several of my most successful investors purchased their first investment property within a month of making the decision to invest. Even if real estate is not the investment vehicle or your choice, make the decision that it is not and pursue what works for you whether it’s starting a business or trading options. Do something because even if you make mistakes, you are steps closer to figuring out what does work for you.
Till next time – Happy Hamilton Investing Everyone!
Erwin | MrHamilton.ca
PS: If you are just starting out investing, start by spending more time with like minded people and take guided tour of Hamilton by joining us for the next Mr. Hamilton Inner Circle by clicking here!!!
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