WHAT DID YOU EXPECT?
In summer we all expect to have a few moments, days, or weeks to be able to relax! In the world of real estate investing our expectations have a lot more variety. For example, in Calgary and Alberta in general, we are familiar with the boom-bust economic cycle.
But wait—that cycle is currently a little off the typical time frame. Some would argue it’s wayyyy off the usual turnaround time. So is this causing investor stress?
It depends (like so many things in life)! Ultimately, when we invest in real estate, what we really want is a better quality of life. We are expecting financial freedom—but that might take 5 to 10 years, or more, for our investment to mature. In the meantime, who we partner with matters.
As an investor, who are you partnered with? Remember you don’t have to be an expert in everything, but you’ll need access to experts. Do you have a Joint Venture partner, prepared with solid deals and experienced with investing strategies? Do you have a property manager dealing with showings and tenant turnover? Did you buy in an area with good economic fundamentals? Are your properties close to transit and potential jobs—giving you lots of customers, even in an economic downturn. Did you buy that property(ies) with a reserve fund, and positive cashflow? Do you have multiple possible exit strategies (rent, rent-to-own, renovate, …). While we don’t expect to be able to anticipate every possible challenge, good partners make a big difference to an investor’s stress levels.
Very few of us expected such a lengthy Alberta recession. Missed expectations can be a huge cause of stress for anyone. However, the stronger our partners are, the more real estate investors can relax, ride out the latest storm, and persevere towards financial freedom.
Connect with us at any time to start your conversation about #realestateinvestingcalgary. @MtnEdgeDevelops. Or follow our renovations page @MtnEdgeRenovate.
