As the real estate market begins showing signs of a potential downturn the number of listings has sky rocketed. A lot of these listings are from people who bought their properties over the past three years. They bought when it was obvious the market was on its way up. Does this make them brilliant real estate investors? Not in my books. It makes them a real estate speculator.

Although it appears anyone could have got it right in the past few years we are seeing that actually getting it right when it comes to real estate investing takes far more than taking up a seat on the band wagon. You could have bought just about anything and looked like a genius, careful you don’t believe your own success. If you are now trying to unload those properties for whatever profit they may have earned you, you are not an investor. If you fear the properties not being worth next month what they were worried about last month, you are not an investor. If you bought your property with the intent of selling it at the soonest market peak, you are not an investor. You are a speculator.

An investor does significant research into the cities or towns looking for job creation, average incomes increasing, taxes going down, transportation improvements all economic fundamentals that drive a real estate market. Secondly an investor finds a property that is cash flow positive. A property that earns an income that pays the mortgage, taxes, maintenance, property management costs and provides a small amount of additional revenue directly to you.  

The real difference...speculators buy on the way up (buy high, sell higher) and try to get out before it goes down and hope to make a profit so they can then beat their chest and say look how much money I made. Investors buy when it makes sense regardless of the market; they know how to choose a property to buy, hold and exit while enjoying the cash flow which benefits from inflation. Most importantly they know how to make enormous amounts of money by investing in real estate.

There are numerous readings and organizations out there that will guide you in becoming a real estate investor. Here is one that I believe is worth exploring https://www.reincanada.com.

I have allowed some of my thoughts trickle out...if you ever want to hear more drop me a note, give me a call or meet me face to face for a chat and beverage. Or better yet let me hear your thoughts, I love dialogue with anyone.