Cottages Are Great Investments… Or Are They?

Buying a cottageLast year, my friend bought a cottage for $180K. His down payment was 25%, or $45K. This year he boasted to me that he had made $18K in a year off the cottage. It was recently appraised at $195K (+$15K equity) and he rented it out a few times this summer to earn $3K in additional cashflow. Not a bad return right? $18K total. If only it was true…

Here’s the reality…

Continue reading

Advertisements

Preparing Your Net Worth Statement to Buy Investment Real Estate

checklist-628x363[1]In a previous blog (Get Organized Before Buying Investment Real Estate), I outlined a list of documents that anyone should have prepared before they seek financing for their real estate investment acquisitions.

One of the most important documents is your “Net Worth Statement”. In the last year I’ve had the pleasure of reviewing dozens of these and, as a result, it’s clear to me that many newbie investors have a challenging time filling it out properly. As a result they have reported having a challenging time obtaining financing approval within the time constraints of their deadlines.

Continue reading

Real estate investing is based on facts, not emotions!

All of our investments go through a vigorous multi-step process including ensuring that our properties meet all of our crtieria, including the following main ones:

  • Cashflow positive even after contingencies (vacancy and repair allowance)
  • Can deal with mortgage rate fluctuation and a degree of risk
  • Attracts and maintains lower risk, lower maintenance tenants