We celebrate the fact that you have taken responsibility for your life, and are providing much-needed housing to our communities.
Assuming that you have learned how to find and buy profitable investment properties and that you understand the real estate cycle so you can adjust for any market condition. Starting out as a landlord can be rather eye-opening. Often new landlords get lulled into the business by its apparent simplicity. At first glance, it's just collecting rent and reaping profits. Trust me, it's not that easy!
To call us landlords conjures an image of a callous and wealthy man collecting cheques each month and doing little else. Real estate builds wealth more consistently than other asset classes but it is a lot of work and greed has little to do with our intentions.
The title "Landlord" is very antiquated. It doesn't convey that you are responsible for much more than simply owning a property. It is your responsibility to ensure that the property is kept in safe operating conditions and you will need to market it effectively and do the accounting for it, among many other management functions. To say you are becoming a residential housing provider is more accurate and treating your tenants as customers is vital to your success.
There are 3 ways to learn how to Manage Your Property:
Let your Tenants Teach you How to be a Landlord (this is painful and expensive)
Do It Yourself (get an Education in Real Estate Investment, Property Management, and Contracting)
Or Hire a Property Manager to safely coach you through all the challenges so you can protect your time and your investment
If you haven't had problems with tenants you haven't been investing long enough or don't manage very many properties.
The people that say real estate investing doesn't work are usually the ones who jumped in with zero education and expected that it would take no more effort than their RRSP's
Here are Tony's top resources curated just for Alberta Investors
- The Real Estate Intelligence Network offers an excellent home study course on property management called Landlording Secrets. It is about $897 Click here for more information
- The Edmonton Landlord and Tenant Advisory Board offers a good course click here for more information
- The Alberta Residential Landlords Association offers a course called Suite Smarts click here for more information
For Online Communities Click the Following Links
- Face book has some great groups such as Real Estate Millionaires by Keyspire
- Over the years I have found the Real Estate Intelligence Network forums to be ideal for strictly Canadian investing. Click here for more info
- For a more international perspective, Bigger Pockets is your best bet.
- This one is a must-read Secrets of the Canadian Real Estate Cycle: by Don R. Campbell all the proceeds from the sale of this book go to Habitat for Humanity so buy 2 or 3 for your investors
- A lot of the following have a great deal of American content but some real management gems await your discovery in these pages. Landlording on Autopilot by Mike Butler
- And HOLD by Steve Chader,
- A property management specific podcast is hard to find. This isn't riveting and exciting information. but Bigger Pockets has a huge library of podcasts and many are to do with Attracting the right tenant, Screening them, Keeping them and Dispute resolution
- The Real Estate Investor Dad Podcast has very practical in the trenches information you can use. This particular episode features Me! yours truly
- One of my personal favorites for investing success stories is The Everyday Millionaire podcast. It is hosted by one of my mentors Patrick Fransey. This particular episode has an excellent Edmonton realtor that specializes in Investment Real Estate. James Knull of Mogul Real Estate. My favorite quote from James is "The difference between a good professional and an absolutely exceptional professional is the best of the best not only know how to fix problems when they arise but they understand how to proactively set the stage to avoid heading in a direction to have a problem in the first place."
Real Estate has many advantages over investing in stocks, bonds or mutual funds. It offers predictable cash flow; it appreciates in value, thus keeping up with inflation; it provides a higher return because of positive leverage, and it offers equity growth through debt reduction.
You can waste a lot of time and money becoming a seminar grad. We hope these resources save you a ton of heartache, time, and money.
As a Real Estate Investment Advisor, I can help guide you or provide done for you services from advertising for tenants to full management and renovation services.
Tony (The Rhino) Sera