Best type of Real estate investment for a young person

[Daniel Casaca]

Hi There,

I am 27 years old and I want to continue in investing in real estate. I started investing in the stock market when I was about 17 and have done well. I made enough money to buy my first house one year ago.
I still don't trust where the market is going so I wanted to try out some more real estate investing. I have a lot of questions and some may seem general but I have to start somewhere. My stock investing "strategy" was buy and hold. I feel at my age it would the make the most sence for me in real estate. The single family houses in my area (which is victoria canada) are expensive compared to the rest of country and the U.S.
Ave. house price would be around $550,000. As of this moment it is a buyers market. I don't have enough money (I may not also want to put much down) to buy another house so I would have to finance it.

What is the best strategy for me?
Buy and hold, flip, commercial. Also to get into a deal with a partner.

Thanks,

[Greg Sharp]

OK - Here is the real progression for investing in real estate and you can jump in at any level:
1. Find great deals, tie them up adn wholesale them to investors. Go to the courthouse steps and watch the auctions, attend real estate clubs where you are not being sold product all the time.
2. Use your own money to flip a house. Show your cash to a Realtor or Auction buyer and say you want to start. Find a reliable contractor through referrals
3. Every 10th house (or more frequently) keep your BEST purchase as a rental. Interview 10 property management companies but hire none. Property management is a FULL CONTACT SPORT! Divert all profits to principal reduction. Repeat this strategy to build your income to the level you want.
4. Look at multifamily purchases and small commercial properties where you feel you have or can develop expertise to be profitable. Pick a niche and stick with it.
5. With adequate income and money in the bank, work with a hard money broker (Like me!) to lend out your money and make 8% - 12% in hard money or JV partner with investors (Like me!)to continue building wealth.
6. Retire? Never! Start teaching and giving back.

This is the general wealth building strategy and you have to be relatively conservative, otherwise in a market turn you can press the restart button. Make sure you know what you are doing and understand what is driving your success. Don't confuse brilliance with a rising market.