Across the country, people often look to property as a key investment opportunity. Alberta residents who are new to this unique kind of investing should first establish their strategy and understand the laws involved in real estate transactions. Some of the most popular ways people go about purchasing real estate for the purpose of a financial return include "flipping" homes, running rental properties, and "wholesaling."
The strategy an investor should use depends on where in Alberta he or she lives, how much money he or she has for the initial investment, and the investor's skill set or network. For example, an investor who enjoys doing renovations may find flipping houses to be a rewarding and enjoyable investment opportunity. Those who have a high tolerance for managing people could benefit from a rental property.
Wholesaling is popular with financially savvy, sales-oriented people who have a close ear to the market. This is when an investor finds a buyer willing to pay more for under-priced properties and takes a percentage of the sale. Experienced investors may also try the following formula: buy, renovate, rent, and refinance, repeat. While these real estate transactions can be a bit more complex than others, there are long and short term benefits worth considering.
New real estate investors will likely have lots of questions as they enter this new world. Once a strategy has been established and a property has been selected, it is important to know what is needed for real estate transactions under Alberta law. A lawyer who is familiar with provincial real estate legislation is a great resource for anyone looking into these types of opportunities.
Source: visualcapitalist.com, "Real Estate Investing: Here are 4 Timeless Strategies to Use", Jeff Desjardins, Sept. 7, 2017