DIFFERENT STROKES FOR DIFFERENT FOLKS
Today I had the immense privilege of spending time with a group of real estate investors. Fascinating, inspiring and just a little geeky! But here’s the really interesting thing: each of us has a different approach for our real estate investments.
Some invest in cities, some in smaller towns. Some have a higher end clientele (tenants), some prefer blue collar workers. Vacation, short-term rental, rent-to-own, long-term buy and hold, flip, build, and develop: all of these strategies are being used by at least one person in the room. Single family, multi-family and purpose-built properties are all represented by our investor friends.
And who do we partner with? Each investor has an ideal financing strategy too. They might use Registered funds, Joint Ventures, Promissory notes, or a more sophisticated business strategy. Their partners might receive an equity stake, or a pre-planned interest rate, or both.
Why share that on our weekly blog?
If you know one or two stories, one or two investors — and you think you understand real estate investing – well, there’s probably a lot more to the story. Or if your investing goals don’t fit right with the first real estate investor you connect with, then it is simply time to chat with another investor.
For example, people who prefer to know their rate of return, might lend out their capital at a fixed interest rate. People who are comfortable with a little more risk, for possibly more returns, will often prefer a joint venture structure where they share in profits after expenses. Some investors might prefer a short-term project: this could be a 3 or 4 year Rent to Own, or maybe private lending for a short term (like a year or less for a flip).
My point is that there is no one box that real estate investing fits into. This is similar to how stocks can be bought in a number of ways: mutual funds, through a broker, EFT’s, call and put options, etc…. Many investors learn about the bigger picture, then choose what works best for their goals, risk tolerance and timeline.
This is a fabulous time in Alberta to paint a beautiful picture of your financial future, using your colours, and your brush-stroke of choice. Connect with us at any time to learn more: @mtnedgedevelops.
