Does The Headache Match The Return?

We often have conversations with people that inevitably lead into investments. The conversation turns into the exchange of war stories about investing. Stories begin with bad stock choices, loosing money, risky selections, or the do it yourself-er investments. Everyone has a story. Everyone has done some form of what I have just listed, but you have to in order to figure out what is the best investment fit for you, it is all a part of the journey.  

Lots of people love to say, “I own Real Estate”. Which is great! But does it really provide ease for you? Are the returns what you had hoped for? Or are you “waiting” for the market and length of ownership to really see a solid return on it? How long are you willing to wait?

Owning individual real estate properties can be a complete headache. You as the owner take on so much of the burden, for what feels like very little return. So in the end is being able to say you own individual properties worth it? Below is a list of things you may want to consider when purchasing a property for investment:

  1. Capital to put down on the property for purchase
  2. Repairs to the property to bring it in working and living order before renting
  3. Posting the property for rent
  4. Finding a reliable tenant
  5. Following up with missed rent payments
  6. Sending notices when rent has been missed too many times
  7. Potentially having to evict a tenant
  8. Fixing up the property when the tenant moves out
  9. Having to pay the monthly fees when the property is vacant in between tenants
  10. Repair of appliances, HVAC, fences, or property during occupancy

The list could go on….

So, would it not be nice to still be invested in real estate without having to deal with any of those headaches and get a similar experience in potentially a shorter period of time? Owning property/real estate is difficult when done on an individual basis, but when you participate in pooled multi-family investing, you remove the stress and burden of all the items listed above.

Let us know your thoughts…

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New Associate

Two Sevens Capital would like to welcome Ryan Malenfant to the team. Ryan joins us from a boutique consulting firm in Toronto where he specialized

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