It’s no secret that real estate is an exciting and lucrative way to build wealth. Many people in the GTA, after seeing their homes rapidly increase in value, decided to diversify their portfolio to include real property investments. Between multi-unit dwellings, rental condos, and commercial spaces, there is no shortage of options available. So what makes someone a great investor? There is no secret formula. However, there are some common attributes among successful investors:
1. They take risks.
Even in the most stable real estate market, there are elements of risk involved in purchasing a property for profit. Smart investors do their research and dive in when the forecast looks promising. Taking chances isn’t easy for everyone, but that’s what separates the top investors from those on the side lines wishing they had bought into the market sooner.
2. They practice patience.
Over all, we have had quite a few consecutive years of positive growth in the Toronto real estate market. Steady year-over-year gains have created a unique opportunity for buyers who purchased new construction properties and quickly put them back on the market. However, time and patience are the most valuable contribution to a real estate portfolio. Buying and holding isn’t very exciting, but it IS profitable, especially when someone else has paid off your mortgage.
3. They stick to the plan.
Smart investors know what they want and stick to it. It can take years to build a successful portfolio, and it can be tempting to cash out when the market is hot. That’s not to say you shouldn’t capitalize on an opportunity when it comes your way, but don’t let distractions keep you from achieving your long-term real estate objectives.
4. They know when to delegate.
Doing it all yourself is great, until you begin to limit your own potential for growth. Savvy investors know when to take a step back and let someone else get their hands dirty. Managing one or two rental properties doesn’t require a lot, but as the portfolio expands, it can quickly become a full-time job. Smart real estate investors know when to let someone else handle the market research, qualify potential tenants, and deal with the Landlord Tenant Tribunal if necessary.
James Benson and his team have assisted dozens of investors in achieving their short- and long-term real estate goals. They understand the importance of a customized strategy and have the industry insight to present their clients with the right opportunities for success.