There’s no way around it – real estate investing can seem overwhelming when you first learn about it. You need to study the market, network with lenders, contractors and lawyers and have a constant ear to the ground to stay with trends and get the best return on investment.
The time it takes to excel at this is something most people don’t have to spare. Many people want to be involved in real estate and they know how beneficial it can be for their long term financial plan but they lack the time, knowledge and resources to get started. This is where an opportunity to become a real estate investor may fit your needs.
When you invest in real estate as a hands-off investor, you don’t perform any of the “grunt work” that goes into finding the right property, negotiating the deal, hiring for the renovations, screening tenants, property management, bookkeeping and managing the final sale and proceeds distribution.
What you may want to consider is a company with a main investment strategy of buying, renovating, refinancing, renting and repeating (BRRRR). This strategy often looks like this: buying undervalued single-family homes and renovating them to add a legal secondary unit. Next comes a refinance to pull money out of the home to find the next one. The first home is rented and held for 5 to 10 years to pay down the mortgage and build appreciation value. This is a long term strategy that offers monthly cash flow and a payout at the end.
The best partnerships for these investment strategies are one of a symbiotic relationship. The company typically collaborates with individual investors who put up the initial capital for the down payment and renovation cost. In turn, the company takes 50% of the monthly cash flow and 50% of the final sale – less the investors’ initial investment which also gets paid back to them at time of sale if it hasn’t been paid back sooner.
Partnering in this manner allows the hands-off investor to be able to invest in real estate and enjoy the tax advantages that go along with it without spending hours doing research, keeping up with tenants and keeping up with market trends. Quarterly reports from the company to the investor ensure everyone is on the same page with the portfolio and what’s going on with the property.
Purchasing a home is no small task and purchasing one with the intent of it being an investment property can be even more daunting. From spotting a good deal to ensuring you’re not dealing with nightmare tenants, it’s not something certain investors have the time for, even as a ‘side hustle’ because of all the time, energy, active management and education involved. This is why investment deals like these exist – to allow people to experience the financial freedom of real estate investment without all of the headaches that typically keep people away.
From the time the initial investment is made by the partner investor, all of the team management is taken care of. This includes realtors, lawyers, contractors, property managers – these are all people important to the deal, and you never have to worry about any of them. Your name goes on the title and you begin receiving 50% of the cash flow that comes in every month. It’s as hands-off as you can get.
This is an incredibly powerful partnership for anyone who is serious about creating cash flow and building long term wealth through real estate but is overwhelmed at the idea of having to do it themselves without any previous experience.
In order to be successful in real estate, you need to be continuously learning and taking action. Partnering in these deals is a realistic and sound opportunity to get into the market.
Part of being successful is knowing where your strengths lie. If real estate is something that has always intrigued you because you know how lucrative the long term gains can be, this is an excellent, hands-free option that allows you to get involved without doing any of the heavy lifting with an experienced Canadian partner who is extremely passionate and whose mission is to bring the best return possible.