It’s no secret that a lot of people are enticed to become real estate investors as it seems like the easiest way to make money. Some people believe that it can pave the way for them to earn a six figure passive income annually that will let them live the life they’ve always dreamed of. While this can be achieved, it takes a lot of hardwork and smart thinking to make it happen.
If you’re thinking of venturing into real estate in Canada, there are a few things that you should consider before taking a leap. Here are a few of the realities of being a full-time real estate investor that you need to keep in mind:
It’s a high-risk industry.
The first thing that you have to know about doing anything remotely connected to the real estate industry is the fact that it’s very volatile. Things can turn quite easily in this area. And despite the promising numbers that it can generate over a couple of years, it doesn’t necessarily mean that you’ll get that without any additional investment. It’s a risky place to put your money in that even some experts consider it more of a service than an investment.
It doesn’t mean, however, that the risks won’t pay off, though. Because there are lots of cases where it did. It’s just that it won’t come without the right techniques. And this is where the second point comes in.
It’s an actual full-time job.
As mentioned above, a lot of people seem to think that investing full time in real estate means that you don’t have to work as much as you would with a day job. This isn’t true at all. Opting to invest on real estate should even make you work harder as you’ll be putting your money on the line.
Sure, you can be more flexible with your time and do other things on the side but it doesn’t mean that you won’t make an effort to make money from this investment.
The income isn’t steady, especially at the beginning.
Why should you make an effort when you already have a solid investment? For one, the income is not exactly steady in this kind of business, especially in the beginning. If you only have a property or two that you haven’t really put in the market yet, you can’t expect to earn from them right away, right?
It comes with a steep learning curve.
Another important point that experts want people to know about full-time investing in real estate is that it has a very steep learning curve. In fact, a lot of them don’t even think most folks who are interested in investing are actually interested in real estate at all. They say that the most successful investors are the ones who enjoy being in the industry because they’re more than willing to learn. So if you’re serious about getting in this line of work, you should be ready to learn and continue learning along the way.
Simply put, being a full-time investor in real estate isn’t all roses. It might be a very promising area to put your money in, but it will still require the same amount of or even more hard work to achieve success. So if you really want to give it a try, make sure that you know what you’re getting into as it’s not something that you should engage half-heartedly in.