- Joined
- Jul 21, 2013
- Messages
- 7
First property purchased! After researching areas, gathering team members, and performing due diligence I finally closed on my first investment property. A townhome in southeast Edmonton. Here's the quick story.
So I'm in my late 20's, I live in Vancouver, I have some capital and I'm thinking what a lot of people my age are probably thinking, how in the world am I ever going to be able to afford to buy a home in Vancouver? Getting the downpayment together to buy a home here is one thing, but then being able to afford the mortgage once I get that capital together is a whole different story.
With that said, I read a few books on real estate including the ACRE system and decided that the best way to put myself in a realistic position to buy a home in the next couple years would be to start putting my money to work. I want to accumulate assets on my own initially, and once I can prove myself to potential partners start looking for JV's, all with the central goal (though only a small part of my personal belize) of growing my asset base, and eventually pulling enough equity out to buy a home and afford a mortgage here.
My education background is in Economics, so I used that to start the search for my first investment property. I looked at areas where there were economic fundatmentals that could substantiate potential equity growth. Once I decided on an area that convinced me capital appreciation was both possible and probable I started assembling a team in that area, which is tough to do when you live out of town. Trust is key!
5 months later, with a lot of work I have now made my first purchase. I take possesion in mid-March (a condition of my financing) of a 3 bedroom townhome in a cozy little area of Edmonton. I am excited to work with my property management company in the next few months to find a tenant, but even with all conservative estimates (I'm an accountant, so conservative estimates tend to be overly conservative for me) this place should still cash flow nicely, which I feel is a direct result of the hard work the great professionals in my team have done.
I have learned an amazing amount from the members of my team and this forum, and I am sure I will learn a lot more in the months and years ahead, but I feel the biggest hurdle for me was getting past the analysis paralysis and taking action on this first purchase. Thanks to everyone involved to date.
So I'm in my late 20's, I live in Vancouver, I have some capital and I'm thinking what a lot of people my age are probably thinking, how in the world am I ever going to be able to afford to buy a home in Vancouver? Getting the downpayment together to buy a home here is one thing, but then being able to afford the mortgage once I get that capital together is a whole different story.
With that said, I read a few books on real estate including the ACRE system and decided that the best way to put myself in a realistic position to buy a home in the next couple years would be to start putting my money to work. I want to accumulate assets on my own initially, and once I can prove myself to potential partners start looking for JV's, all with the central goal (though only a small part of my personal belize) of growing my asset base, and eventually pulling enough equity out to buy a home and afford a mortgage here.
My education background is in Economics, so I used that to start the search for my first investment property. I looked at areas where there were economic fundatmentals that could substantiate potential equity growth. Once I decided on an area that convinced me capital appreciation was both possible and probable I started assembling a team in that area, which is tough to do when you live out of town. Trust is key!
5 months later, with a lot of work I have now made my first purchase. I take possesion in mid-March (a condition of my financing) of a 3 bedroom townhome in a cozy little area of Edmonton. I am excited to work with my property management company in the next few months to find a tenant, but even with all conservative estimates (I'm an accountant, so conservative estimates tend to be overly conservative for me) this place should still cash flow nicely, which I feel is a direct result of the hard work the great professionals in my team have done.
I have learned an amazing amount from the members of my team and this forum, and I am sure I will learn a lot more in the months and years ahead, but I feel the biggest hurdle for me was getting past the analysis paralysis and taking action on this first purchase. Thanks to everyone involved to date.