Shopping for real estate in areas like Montreal’s Plateau Mont-Royal, or the GTA. Markets in many desirable areas present a challenge for first-timers and more experienced investors alike.
Missed Our Last Workshop?
A Sneak Peek At What Happened…
Networking is one of the keys to success in the real estate industry. But it’s a struggle for so many of us!
Networking can be a struggle because we don’t have a good understanding of the science of effective networking building. We go to random events, wasting time and effort and often enduring social awkwardness because we don’t know how to network effectively.
Without giving away everything that happened at the workshop (including networking), here are a few do’s and don’ts:
– Do attend activities that allow you to have regular contact with people (recurring meet-ups, BNI breakfasts, etc). Networking is more like farming than hunting. You’re building a network, so the more you see the people in your network, the more you’ll be top-of-mind, and the deeper your relationships will become.
– Do attend events with an objective in mind. Who do you want to talk to? How many people would you like to connect to? Who do you want to meet? Otherwise, it’s too easy to spend the evening talking to the same 3 people.
– Do think of other people. When you meet someone new, keep in mind how you can be of use. Ask yourself: how can I add value for this person? Who can I connect them with? How can we help each other? This prevents you from being in sales-pitch mode.
– Do attend smaller, focused events. It’s better to be in a room with ten useful connections, than in a room with one hundred tourists.
– Don’t be afraid to ask potential mentors or peers for a 15-minute Skype call, a lunch or coffee with the phrase: “I admire what you’ve done. Would you have a few minutes to tell me how you did it?” You’ll be surprised how far a little flattery will get you!
– Don’t assume that once you’ve made a connection it will “stay warm”. There is a science to maintaining your network with scheduled phone calls, newsletters, emails and so on. There are some great podcasts on this topic. Schedule time to maintain your network so you remain top of mind.
– Don’t be afraid to use social media. LinkedIn and Facebook are obvious ways of connecting with people, whether peers, clients or potential mentors. There is also a new Tinder-like app called Shapr that will connect you with people who have similar interests and want to grow their network.
In Real Estate and in life, your social capital (or network) has a direct impact on your financial outcomes. Whatever the current state of your personal- and professional networks, there is always room to improve.
Did I leave anything out? Got any favourite networking tips or techniques?
Leave your comments below.
Looking to grow your network? Hope to see you at our next networking event!
Those sexy numbers might be hiding something
Want to invest in rental property in Montreal in 2018? Don’t miss this Meet-Up!
This workshop will show basic financial guidelines for identifying profitable investments. Terrie will share her insider’s market analysis of which areas are profitable, as well as price-points for making profitable investments (condos, small plexes).
Join us! Don’t forget to bring business cards and your notebook.
Dear Fledgling Real Estate Investor,
If you want to make positive cash flow buying rental property: please, please, please don’t shop for yourself!
The Agent Who’ll Be Stuck Renting Your Overpriced Units
Let me describe one of the biggest acts of self-sabotage I witness when I work with beginner investors.
“Terrie, I want to buy an investment property.”
“Okay. Tell me.”
“I was thinking of a condo in ***insert over-priced, high-end neighborhood here***”
Watch as I hold my head. Housing, maybe more than any other business, is an emotional industry. I get it.
But, if you’re purchasing an investment property, it’s got to have positive cash flow, right? If you’re renovating a rental unit, it’s to maximize your return on investment or to protect it, no? Aesthetics has its place. Providing good, reliable services to your tenants are important. But be mindful of what makes economic sense and what is a matter of personal taste. You’d be surprised how many beginner investors struggle with this concept.
Let me give you my take on where this issue comes from. If you drive a Mercedes or let’s say, one of the old Volkswagen beetles, it might be difficult for you to imagine that anyone would want to drive a Toyota Camry. I get it. BUT which manufacturer sells more cars? Which car is easier and cheaper to maintain? Which producer will do better in a recession? Which car brand is more vulnerable when people start cutting back on luxury items?
You see where I’m going with this. When economic cycles take their toll on local economies, the one-bedroom for seven- or eight-hundred dollars stays rented. In fact, if this type of unit takes a price hit in a bad market, it’ll be a fifty-dollar hit. No so for the luxury two-thousand dollar a month loft in your oh-so-trendy neighbourhood.
The bread and butter of the residential tenancy markets are in middle-and-lower income areas. It stands to reason that higher-end rentals are in direct competition with the condo market. Whoops! The promoter decided to throw up another tower just as interest rates went up? You’ll have to keep your rent below what his prices are now. Lower end units don’t face this type of competition.
Also, your cash flow is directly related to the cost you pay per unit. What’s the cheapest condo you’d personally consider living in? Don’t like the ground floor? The busy street? That not-so-awesome graffitied neighbourhood. That’s fine! You don’t have to live there! The only thing that should interest you is how much someone else is willing to pay to live there.
For all we know, the owners of McDonald’s don’t like the Big Mac. The point is, enough people do, and the cost of manufacturing the sandwich leaves enough margin for the business to make money. You don’t have to want to live in your rental units. Your tenants do! That’s how you make an investment make cents.
Investment property is a business. Our success as investors depends on selling the right product to the right market. We need to be in the business of providing what the market wants, not in the business of creating something we personally would like, and then desperately trying to sell it to cover our overhead costs.
Think of that as you evaluate what type of investment property to buy.
Yours in investment,