Edmonton Real Estate Investor: how to invest in real estate

I was reading the Globe and Mail online today when a link on the side caught my eye. The title "Could investment in a second property go sideways?" I chuckled. If you have to ask then you shouldn't be buying a second property...

However, there are so many "Real Estate Riches" seminars that tell you how great real estate is (which it is) showing the insane returns possible (which there are) because of the leverage a mortgage allows. The allure is strong but the hours, days and years of WORK after the thrill of buying your investment is almost never covered.

I want to tell you, as a seasoned investor, that the most important thing you should think about when you buy a second property is it going sideways - and what your Plan A, B, C to X will be.

When you can handle any situation that your property throws at you, you are a real estate investor.

Bad Things that have happened in my rentals:
Floods
Mould
Death ( Natural and Unnatural)
Evictions
Destruction
No rent
Huge Renovations
Tenant Bankruptcy
Midnight Moves

Good things that have happened in my rentals:
Exponential ROI
Excellent tenants that improved the property
Insurance Funds coming through
Helping tenants become homeowners
Getting my initial investment out and still having the property
Mortgage free ownership
Cashflow every month
Repairs on or under budget
Increase in flexibility/time/freedom

It's ying and yang! No investment is all up and no down. That's just a life fact and yes - it even applies to investments.

We've been really busy over the last few months from contributions to Real Estate How To books to magazines in Canada, Japan and the UK.

I've finally put up some of the articles, links and pdfs on our media page. Take a look some are interesting and hopefully you can find at least one golden nugget of information among them.

In part one of the Fear and the Investor series we looked at the different types of fear. It's important to remember: F.E.A.R. - False Evidence Appearing Real

So how do you battle FEAR?

#1 Distinct Advantage - Get Educated

The best thing to do in today's market is to learn how to take advantage of it. Not everyone around you is losing money and if they are - run far away from them. Get online and search for an investment book that focuses on the fundamentals of investing. You don't need to buy an expensive kit or attend a $10,000 seminar. You must surround yourself with a knowledgeable team and follow a proven system.

The most important key to investing in real estate now is to target your area and invest where the economic fundamentals are strong. Buy for cash flow in a city with a strong future and hold for the long term. Find someone who has a proven track record of investing in real estate and ask them how they do it. Listen, write it down and do it.

Other options include investing with Joint Venture Partners and investing in REITs. Often teaming up with a company or individual who knows the market can leverage your time and knowledge further, faster. Always do your due diligence on the person and the properties.

For detailed strategies of how to find the right property and choose the right area read these How To Articles.

There is now one convenient location to get news and videos from Don R. Campbell, REIN and other real estate experts. We've updated our Alberta News section and posted crucial videos to help you get all the facts you need to invest with confidence. It's all laid out in an easy to use format.