3 successful real estate investors

How did they grow their investment?

Quebeckers sometimes choose to invest their savings in real estate rather than in the financial markets. If few of them make a fortune with their properties, many can generate sufficient income to live well and secure their old age.

Who are these investors who, by dint of perseverance, have managed to grow their investment in brick and mortar? Speaker and real estate coach Gillian LA Rochelle presents some of them in his book Building Wealth: 30 Inspiring Stories from Real Estate Investors.

1: TIME TO ENJOY LIFE

The actor entered the world of real estate in 2003, when he decided, on a whim, to buy the triplex where he lives. Soon, he wrote an offer to buy, gets the guarantee of his father and becomes, at 26, the proud owner of a triplex in the lower city of Quebec. And without any down payment.

This improvised transaction will be the first in a long series. Three years later, he refinanced his mortgage to buy a duplex, this time with a down payment of $ 30,000. He will use this same technique to acquire another duplex.

Today, Eric Morasses has ten homes. Not enough to roll on gold, but that is enough to offer him a good quality of life while giving him time to do what he likes. "I do not need much; I favor voluntary simplicity. I work a little fifteen hours a week, sometimes as a waiter, or I teach acro yoga and Pilates, "he says.

2: THE KING OF FLIPS

In 2010 and 2011, Karl Goupil made no less than 50 real estate flips in 14 months. His secret? "I evaluate the situation without wasting time: I consult the land register, I study the history of the property, I assess the debt of the owner. Then, I calculate the renovation costs according to the dimensions, with one of my Excel files. Finally, I set the amount of my offer accordingly, "he explains in the book.

A former professional hockey player with 17 years in Europe, Karl never thought he would spend much of his life in real estate. Back in Quebec as a real estate broker, he quickly left this profession to start full time in flips. His professional experience allows him to find homes that can be resold quickly and at a good price.

Despite his modus operandi set to a quarter turn, all his transactions have not been successful. "There is when I lost money," he says. It does not matter, he told himself, he can always get back next time.

3: A NEW STYLE OF LIFE

Next, to being laid off from a telecommunications company, Sylvie Beauchamp decided to turn to real estate to achieve financial independence. Diane, an accountant, and the self-employed worker are quick to follow her, for fear of never being able to retire.

The two women, who have undergone basic training in real estate investment, are buying their first property, an eight-unit building in Saint-Jérôme. Sylvie takes care of the tenant management, while Diane manages the accounting and the administrative aspects.

A little later, both partners move to the next level and acquire a 20-unit building. "Because we wanted to live quickly, we had to find buildings that had cash surpluses from the start," she says.

5 tips to get started in real estate rental

Entering real estate leasing is an ambitious project in which one must not move forward with closed eyes. Whatever your purpose in choosing to invest in the rental, you surely seek to optimize and make your investment profitable. Here are 5 tips for success in real estate rental.

Real estate rental and location

Real estate rental is primarily a real estate investment. If you want to succeed, near are some requirements to respect including choosing the area where you want to invest. Before you start, make sure that the city or region you choose is in full development with a constant increase in population.

Also, select a geographic area where life is good, that is to say with all the necessary infrastructure such as shops, green spaces ... nearby. Put yourself in the place of the future tenant and ask what he could look for. Check that the accommodation is close to schools, universities or public transport. These are significant assets for your property that will allow you to find a tenant quickly.

Depending on the type of housing you rent, also do an analysis. If your property is a studio, make sure there are universities nearby, because that's the type of property that is rented to students. If you have a 4-room or 3-room apartment, make sure there are schools and parks nearby. Indeed, this type of property is often sought by families.

Study the local market

Finding an interesting sector is not enough to ensure the profitability of your real estate rental project. You must also understand the local real estate market. Find out about the characteristics of all neighborhoods and the rate of vacancies in each neighborhood. Check the real estate listings for prices.

The area in which you want to invest should present a strong rental demand. This is the only way to guarantee a safe real estate investment and added value if you decide to resell your property later. You can find out about specialized sites such as advertising sites or from a real estateagency. If the supply is greater than the demand, your chances of finding a tenant will be lower.

Also, remember that the real estate market is a malleable market. It can change at any time. Without a good knowledge of it, you will miss opportunities to invest in real estate in the best conditions and to make good returns.

Find a good home

An essential question to ask yourself before embarking on the real estate rental is: would you like to live in the house given its general condition and the convenience of the neighborhood? Before you rent a property, so make sure that you like it. The more an apartment seduces you, the more likely it is to interest others and the higher the chances of finding a buyer quickly.

Check the condition of the property. Is the brightness sufficient? Is the housing accessible and functional? Is security in the neighborhood good? If the answers to these questions satisfy your requirements, then this is the good you need.

Regarding the size of housing, the choice depends primarily on your finances, but this is not the only criterion to take into account. Also, choose according to your goals. By choosing a studio, for example, the rental period is from 12 to 30 months. Most often, it is the students who are looking for this type of accommodation. There is therefore what is called the rental turnaround which causes non-renting periods of 2 to 3 months each cycle.

Supermarkets have a longer lease term (more than three years). They are most sought after by families who move less frequently. The disadvantage is that it is less profitable than small areas.

Real estate profitability

Of course, who says investment, says profitability. However, it is always prudent to go slowly. Are you saying that a return of 3% -4% is already enough. Do not try to over-perform. When setting your rent, always find the right compromise between a favorable rate for your portfolio and that will not run away from your future tenants.

Find a good tenant

A good tenant is one who will regularly pay his rent and who will maintain your property properly. Here, the saying "first come, first served" is not appropriate. To secure and make your investment profitable, you must choose your tenant.

To ensure the solvency and stability of a candidate, ask for supporting documents such as pay slips, tax notices or the employment contract. Take advantage of your meetings to examine it thoroughly, whether through words or gestures. Good tenants will show signs of dedication to the property. They will request you a lot of questions.

By the way, think about asking for guarantees. If the rent you set is less than a third of his income, you can ask for a joint surety. In case of a roommate, you can ask each roommate a deposit which is the equivalent of a full rent.

In addition to word of mouth, various solutions are also available today to find a tenant, such as classified ads, rental sites, and personal sites.

Getting into real estate rentals is an interesting investment that allows you to make money or leave something for your children. If current conditions are more and more attractive, take the time to analyze your project (market, housing, tenant...) to increase your chances of success.

Buying real estate: 5 steps to know before launching

Like many French people, do you want to take advantage of exceptionally low mortgage rates to buy your new home? It's a good idea!

To accompany you in your approach, I propose a summary in 5 steps of what you need to know before you start.

Step 1: What does the property that I want to buy look like?

The 1^st object to do is to define the criteria of the property you are looking for. This will save you time for the future.

To help you, here are some of the questions to ask yourself:

• House, building plot or apartment?

• Old or new?

• Works or not?

• Geographical area?

If you buy as a couple, it is important to agree well from the start. Otherwise, your research may waltz the plates

Step 2: What is my budget?

Once you have defined exactly what you are looking for, will ask the question of the budget.

In reality, this question is twofold:

What budget can you afford?

Good to know: having an agreement in principle from your bank for a mortgage loan will be a real asset to your file. Indeed :

• it will reassure the seller of the seriousness of your offer (if you are competing with other buyers)

• and this will allow you, if you wish, to make an offer of purchase immediately, since you will know precisely your financial capacities.

Step 3: Find the good of your dreams!

Multiply your chances of finding your future home by getting help from experts near you!

• If you are considering a purchase in the old building or are looking for a building plot, create alerts in the "Square Habitat" app.

• If you prefer to buy a new home, contact the experts of Credit Agricola Immobilizer.

Step 4: That's it, you found? It's time to sign a compromise!

Have you initiated the accommodation of your dreams and you have agreed on a purchase price with the seller? So it's time to sign a promise or a sales agreement!

At this point, you agree to buy the good, but once the seller has also signed the compromise, you have a period of 7 days to reconsider your decision.

Use this time to finalize your file:

• Make an appointment with your bank advisor to complete your application for financing: can you benefit from assisted loans ( zero-interest loan, home savings, etc.)? Is it possible to have a mortgage that offers flexibility in repayments?

• Also be aware of any additional information that the seller would not have had time to provide you before the signing of the sales agreement (ex: mandatory diagnoses, minutes of the last general meetings of co-ownership).

Good to know: the final sale at the notary will take place a few weeks later.

Step 5: Choose the right loan and make sure!

To choose your mortgage, discover our advice in pictures.

Once your loan agreement is signed, do not forget to ensure your housing. Home insurance is essential for you to get the keys to your new home the day of appointment at the notary!

How to select the right insurance for your future home?

Good to know: we also offer remote monitoring solutions to protect your new home against burglaries

5 ERRORS TO AVOID AS A REAL ESTATE INVESTOR

Investing in real estate can be very profitable, as long as you avoid these 5 mistakes that can turn a promising scheme into a money pit. Here are a few :

1) Do not do enough research

In the real estate sector, poor knowledge of the market is a major risk. Thus, the research process is essential for a successful investment. Once purchasing a property, it is imperative to gather as much information as possible about the property itself, the neighborhood in which it is located and the state of the market at the time of purchase.

2) Planning poorly

Whether with banks or private lenders, many new investors make the mistake of accepting an overly expensive financing plan, which affects the profitability of the property. Also, several financing plans also require significant down payments, which in turn limits the remaining liquidity for other aspects of the project (maintenance, taxes, services, etc.). To be able to make good property management, it is important to keep funds available at all times. Having liquidity simplifies the maintenance of the premises, offers more flexibility and eases the financial pressure, making it possible to make more rational decisions.

3) Try to do everything yourself

For the sake of profitability, several real estateinvestors try to minimize all expenses by taking responsibility for their investment project, in all its aspects. While it is wise to be informed and to know how each step works, wanting to do everything yourself sometimes prevents you from getting valuable help. In most cases, hiring a professional to manage certain aspects of the project will pay off in the long run, even if commissions or fees are required. In trying to do everything themselves, many investors make serious mistakes where there are no good opportunities because they do not have the time to go bargain hunting, they spend their time painting homes. So, call a professional for building management is a smart choice to maximize the return on investment.

4) Paying a building too expensive

In real estate, the profit is made on the purchase and not on the sale. Paying too much property is one of the most common reasons why an investor does not pay for it. In the case of a residential building, a purchase price that is too high will create enormous pressure on the owner. He will feel obliged to occupy all his dwellings at all times and to ask very high rents to his tenants to make profitable his investment. The problem is that it is frequently difficult to do because of the market, the Régie du Logement, etc. In the case of a property intended for resale, a high purchase price limits the profit and greatly reduces the flexibility during the negotiation during the resale.

5) Underestimating expenses

Investing in real estate differs considerably from buying a personal home. While a home is normally chosen according to personal preferences, the purchase of a property for an investment must be based solely on numbers. A real estate project always involves expenses not to be underestimated: purchase price, taxes, insurance, maintenance, renovations or repairs. To make such an investment successful, emotions must be kept out of the way and the profitability of the project coldly assessed by realistically calculating expenses.