Monday, April 07, 2008

Real Estate Investing - is it something for you?

Is Real Estate Investing Right for You?

Investing in property is simply another form of investment. Buyers can invest directly by purchasing property individually, or indirectly by investing in a managed fund or timeshare. Although real estate agents may understand the property market, prospective buyers should still seek independent advice, because property investment may not be right for everyone.

What to Know Before You Buy

Don't fall for pressure-selling techniques and high-pressure seminars

Some sales people can be extremely persuasive and persistent. They often use gimmicks like offering you a "once in a lifetime opportunity".

Determine your overall financial plans

Think about what you want to achieve financially and how soon you want to achieve it.

Understand the risks involved

All investments carry risks. Make sure you are comfortable with the risks associated with a particular investment.

Get advice

Decide whether or not you need professional advice. If you're dealing with a financial advisor make sure they're licensed.

Investing directly or indirectly

You can invest directly or indirectly in many assets, including real estate, through a managed fund. Time- shares are a type of managed investment.

Do your homework

Find out as much as possible about any investment you are making. Make sure you really understand the pros and cons of choosing a particular investment asset. Weigh the advantages and disadvan- tages against your financial goals.

Consult with your accountant

There may be tax issues to consider that you may not be aware of. Once you've decided to take the leap and purchase investment property, be sure to read and keep all documents you receive about your investment. If your asset is being managed by someone else, make sure they keep you updated on all pertinent information. Reputable investment managers will be happy to answer your questions and will expect you to take an interest in your investments.

6 Investment Tips You Can Use!

Hire and pay for skilled workers to do your renovations.
Location. Location. Location. Invest in the best location you can afford.
Be affordable for tenants by buying small and staying small.
Look at a property for what it can be, not for what it is.
Focus on the money coming in and going out - not the cap rate.
Don't go unique - choose rental properties that will appeal to anyone.
One More Thing...

Real Estate Investment Trusts

Real estate investment trusts, known as REITs, are entities that invest in different kinds of real estate or real estate related assets, including shopping centers, office buildings, hotels, and mortgages secured by real estate.

There are basically three types of REITS:

Equity REITS, the most common type of REIT, invest in or own real estate and make money for investors from the rents they collect.

Mortgage REITS lend money to owners and develop- ers or invest in financial instruments secured by mortgages on real estate.

Hybrid REITS are a combination of equity and mort- gage REITS.

The Internal Revenue Code lists the conditions a company must meet to qualify as a REIT. For example, the company must pay 90% of its taxable income to sharehold- ers every year. It must also invest at least 75% of its total assets in real estate and generate 75% or more of its gross income from investments in or mortgages on real property.

Many REITs trade on national exchanges or in the over- -the-counter market. REITs that are publicly traded must file reports with the SEC, such as quarterly and annual filings.

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
8 Website :

Homes for Sale


  1. Mark,

    Just want to say that you run a great blog and although we may disagree with our perception of where the market is heading, I appreciate that you present all sides of the story to your readers.

    Here's hoping that your viewership and the comments section pick up a little bit. There are a tonne of fantastic RE blogs in Calgary/Edmonton/Vancouver, but very few well-run sites in the GTA.

    keep up the good work.

  2. Thank you for your kind comments. The beauty of life is that we all can have our own opinions and disagree on the future and still respect each other! :-))

    One thing for sure, it's going to be a very interesting to see what happens to the real estate market and economy over the next 8 to 12 months.

    Hind sight will always be 20/20, just wish we knew a little about what is to come.

    All the best and let's touch base in 6 to 12 months from now.


  3. Yes, great blog and nice stories on subprime in US mark...I didn't quite understand it.

  4. Looking back, this post was written right before the economic and housing bubble burst. Presently, and looking at the brighter side of things, your tips are more applicable to use now than ever. The prices of properties are down, and it has nowhere else to go but up. now's the time to invest in real estate so keep up the good work!