Hi, from Calgary, Alberta

[Aaron Lamb]

My name is Aaron, I am 18 years old and would like to get into real estate as a means of side income. I currently am a broke college student, in my first year of business, and am not sure where I can start. Ideally, I would like to invest money I will be making at the end of this school year (summmer 2016), and turn it into profit. Any tips appreciated, thanks!

[Chris Scott]

Hi Aaron,

Great work on getting started early, that really gives you an advantage in the investment game.  In my experience to get started, using the residence you live in as an investment really works well.  The process many people refer to as "house hacking" can have many of the upsides of real estate investment while reducing many of the risks.

I got started that way and it is a very comfortable way to start investing while still being able to sleep at night.  When you get a little bit of money together look at even a small condo that needs some work and fix it up while you live in it.  You can do the reno's on your schedule, when you have the money.  Once your done with it, rent it, or sell it, or refinance it.  Reinvest as you feel comfortable and repeat.   In doing this process you will learn all the same steps required to do the big flips.  If it is your first residence in Alberta you can of course get in with very little down and with current low interest rates its very affordable.  Of course it is always better to pay 20% down and save the CMHC fees but hey that's up to you.  Most people believe Calgary is now entering a buyers market so you may be able to pick something up at a discount when your ready.

Others often suggest getting others peoples money and using it to invest.  That works too.  I like to stick with what I can add value to.  Ask yourself the question what can I do to add value to this property.  Am I good at renovation? Am I good at wholesaling/finding a deal? Am I good at the property management side?  What can I add and what do I like to do? 

I picked up my real estate license to do my own trades and would highly recommend it once you start looking for multiple properties.  It saves you on the flip commission twice and who is better to do the research on where to invest your money than yourself.  I love watching the market every morning and seeing what new is out there.  If you enjoy doing it, its not a job.

All the best,

Chris Scott