3 Tips For Successful Real Estate Investing

It’s safe to say 2020 was a year like no other, many industries struggled to survive, but oddly the housing market and real estate investment seemed to be boosted by all this new stay in your home time. The American and Canadian housing market is booming and some say there is no better time to get into the real estate industry. We asked Ali Gamrini -a real estate investor and entrepeneur, to share his top 3 tips for investing.

Tip 1. It's All In The Numbers

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When just starting out, it is very important to understand the market. “In business, it’s all in the margins,” says Gamrini. Within the real estate industry, everything comes down to the cost per square foot. Once you understand the cost of product and labor you can better understand and plan for profit margins. This comes with time and practice. Recalling his first flip and the hours he spent calling around to ensure he was getting the best price for materials and labor. “Although this is a learning curve in the beginning, by taking the time to learn the industry, you’ll be better prepared in the future, more equipped to negotiate, and will see a greater profit on your next flip,” explains Gamrini.

Tip 2. If You Have No Capital- Try Being A Realtor

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Gamrini was fortunate to have capital from his other business ventures to be able to invest in real estate, but he realizes that not everyone is in the same situation. “It takes money to make money,” says Gamrini, “But if you have no money, there are ways to make it work.” By becoming a real estate agent you can begin to learn the industry while simultaneously bringing in commission on your sales, you also will have insider knowledge into the best properties. After you’ve begun to see a return, you can either seek out additional investors or invest your own capital into building your portfolio. Even if you are starting from the ground up, there are always creative ways to leverage your skills to begin building an empire.

Tip 3. Private Deals Can Be The Best Deals.

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Private deals, i.e. deals that are not listed on popular public sites are ideal because there is no competition. Through a bit of door-knocking and research, you may be able to uncover a great property and pay a lot less for it.

Tip 4. Understand Your Local Market.

Understanding the area in which you want to invest in real estate is vital to your success. For example, the Ontario market is hot right now. There is a major shortage of inventory and homes are going for 30-40K over the asking price with at least 20 people showing interest in some homes. Smart sellers can utilize this to their advantage and potential investors would be wise to get in now. However, this may not be true for every city. Do your research.