By Trevor. H – November, 23, 2021
For some, purchasing real estate can be a liability, a risk. For others, real estate investing has been the most lucrative business decision made in their lifetimes. For myself, there has been no other lucrative venture that has compared to the money I have made in real estate investing.
There it is, my first house. When purchased, it was said to be over 100 years old. It sat on a 50 by 100 foot lot and it was a duplex. This was ideal because money was tight at the time and having an extra apartment to rent assisted my monthly budget.
At the time, the house was purchased for about 120k, which was a great deal. However I was not ready for all the heachaches that would come with buying a house that was older than the Queen Elizabeth.
Upon moving into the house, I knew many areas needed to be upgraded, but upgrading meant spending money. Money that I did not have after using it for the down payment and closing costs.
It was time to roll up my sleeves and create some sweat equity. I decided that putting my time into painting the walls would be a great way to begin. And it was because I got the paint for free at the local dump and I did the work myself.
Buying a house for cheap in the City of Niagara Falls around 15 years ago didn’t look pretty. The houses were old, decaying, but charming, nonetheless.
Reading the national statistics on immigration led me to believe that in time, property values would increase in the city, and about 8 years after purchasing, they did just that.
After 8 years of dealing with tenants, maintaining an old house, replacing the roof, fixing the broken sewer pipes underground, having a limited social life, etc, I sold. It was the correct time. The profit was healthy at about 100k.
One year before I sold, I had already purchased another property which was closer to the city.
Instead of a single family, I now own a townhouse, and it is a lot less maintenance.
With the profits of the 1st house, I used 80 percent and put that into the mortgage loan of the 2nd house. I knew I wouldn’t be purchasing more properties for a while so I was comfortable knowing that the money was in a better place and locked away.
After about 9 years of investing in real estate, I had the feeling of success and accomplishment.
Immigration continued to rise, and skilled workers continued pouring into the country.
At the time of sale of my 2nd house, the house was purchased at 249k. An exceptional value.
Fun Fact – The early bird gets the worm.
I remember the day the house entered the market. I was searching through the online housing classifieds relentlessly, waiting for a deal. As soon as the house hit the market, I booked a showing, made an offer and it was accepted. I didn’t over negotiate. I respected the closing date preference of the seller and the rest was history.
After a couple of years of owning the 2nd house, property values started to skyrocket. The house was situated about a 30 minute drive from a major city. And that major city was experiencing housing values that were going to the moon. Meaning they were becoming unaffordable for many potential home buyers and that was forcing them to move into other towns, like the town I owned my property.
Three years into living at my second property, I decided to rent it out to new immigrants of the country and move to South America. Colombia to be exact. The property continues to rise in value.
At times, I think about selling it, but I am only 40. Not exactly old, but not young either. It is tempting to sell because in my opinion, the entire reason for real investing is to at one point, cash out and see the profit in your bank account.
Looking at life, I would have never had the ability to make solid earnings and increase my net worth if not for real estate investing. It also seems like a forced way of savings. If you’re an idiot with spending money, owning property can make you act more responsibly.
Travelling through many different countries, I look at houses in different ways. Not only for their beauty but for their potential to make income.
In the country where I presently reside, I notice many 2 story houses that can be purchased at a fair price. Whether they go up in value or not, turning these properties into duplexes would entail creating a 2nd kitchen and a separate entrance into the property. A large initial investment to some, but a small investment to others.
For instance if you purchase a house for 100k and you put 10k into turning it into a duplex, you are all set for business. You can begin advertising your real estate investment and start receiving monthly income. And the best part is, you can request cash for the payments.
I prefer to invest in duplexes because you can make monthly profits on renting out both units. If you purchase a condo with the minimum deposit, your loan to monthly rent ratio may entail 0 monthly profits. However, buying and renting out a condo is a lot less work and it may be a better fit for some people.
Thoughts
After over a decade of investing in property, I have financial freedom. I am not rich due to property investments, but I am definitely far away from being broke.
Many people who are 30 or 40 or 50 years old may think it’s too late to begin property investing. Don’t make excuses. People are living to be over 100 years old. Look at my first house and Queen Elizabeth, they are both really old, but still standing tall to this day.
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