Tara Williams, the founder of Canada’s #1 real estate crowdfunding platform, Canfi, knew exactly what she was doing when she decided to create her own landing page for the launch of her brand new book, The Everything Guide to Real Estate Investing (a book she wrote with Chris Guillebeau). The page allowed her to highlight the important steps to succeed in real estate investing, as well as provide prospective investors with more information about the project.
The page contains an overview of the book, key takeaways, upcoming speaking events, testimonials, videos, and a Q&A section. It’s a great place to get a sense of the entire business, and importantly, what to expect if you decide to invest. Even if you aren’t looking to invest, it’s still a worthwhile read.
When creating a website to promote your book, it’s important to keep your audience in mind. In this case, Tara wanted to target real estate investors, whose interests are typically represented by digital currency, bitcoin.
“I didn’t want to create a boring website about real estate,” says Tara. “I wanted to create an interesting, engaging site to draw people into learning more about investing in real estate.”
Real vs. Apparent Value
When it comes to real estate investing, the phrase “pricing strategy” might as well be three words. Apparent value is everything, and it’s an approach that savvy real estate investors use to their advantage. Essentially, the goal is to find a property that will appreciate in value and sell for higher than what you paid for it. But how does one go about doing this?
If you’ve ever shopped for an investment property, you’ll know that prices vary widely, even within the same region. To get an idea of what prices are like, all you need to do is enter your desired location and date into Google’s real estate search bar. You’ll get a global list of property sales that are currently active, with historical sales data that goes back years.
Depending on the time of day and the weather in your location, you’ll see whether buying or renting is a better option. When it comes to renting, you usually get what you pay for, and sometimes even more. But the flip side is that you also have to pay more in maintenance fees, which vary from location to location. So while it’s evident that renting is more economical in the short term, it’s also imperative to consider the long-term costs in order to determine if this is a sound financial decision.
How to Value a Property
When it comes to valuing a property, there’s more than one approach that real estate investors use. One way is to look at comparable sales in your desired location, which if done properly, can give you a good idea of what you’re paying for. When doing your research, be sure to look at recent sales, not just prices, as this will give you a better understanding of whether or not the property is actually worth what you think it is. Another method is to use an app, such as RE/MAX Intl’s Zooprase©, that can value any property within a few minutes of entering the data on your phone. It then presents you with a comparative market analysis, showing you the current market condition of the property you are considering investing in, along with graphs that break down the property’s apparent value, based on the current market conditions.
The Appreciating Property
Once you’ve determined that a property valuation is reasonable, the next step is to look for a suitable purchase, which we’ll discuss in the next section.
Where to Buy?
When it comes to choosing a location for your investment properties, you want to look for a desirable area that’s got the potential to increase in value. Even if you plan on living in the property, you want to find something that’s close to a major metropolis, preferably with good connections to public transportation. Major cities usually have a buying bounce that lets property prices rise in the afternoon, so it’s important to visit the city at that time, to ensure that you buy at a good price.
When to Buy?
When deciding when to buy a property, you want to look for a location that’s easy to get to from your current location, but still has the potential to appreciate in value. After you’ve found that perfect location, you can proceed to price it appropriately and be sure that you don’t buy a property that is overpriced. If you find a property that you like but think is overpriced in your local area, you can look at places further afield, that still have the potential to appreciate in value, but at a lower price. This can be a good option for those that wanted to move to a new town but didn’t want to disrupt their career plans.
The Perfect Property
Once you’ve found that perfect property, the final step is to make sure that it’s in fact perfect. While it’s not uncommon for real estate shops to blow up the typical real estate formula (fluff and fancy for show, bricks and mortar behind the scene), it’s important to make sure that this is in fact the case. Do your homework and get to know the neighbors and community before deciding to make a purchase. If there are any red flags that come to mind, such as a lack of information or an overabundance of fluff and fancy for show, the perfect property could be a potential bog ostea.
So what is a bog ostea? Bog ostea is Polish for “bear vodka”, and it refers to the fruit of a bog (i.e. a Polish wild berry) that when harvested in October, turns into a superb drink that can take the edge off the nippy Canadian winter. Bog ostea is a bit stronger than normal vodka and has a more bear-like flavor. If you’re not yet into drink that strong, it’s a good advance preparation for the winter months. It’s also a great vehicle for skis and snowboards, as it glides down easily.