New real estate investors often think of repossessions as a way to get started in the business. A repossession happens when property owners can’t pay their mortgage. The bank takes over the property and sells it to recoup its money.
The idea that an investor can make big money buying and selling repossessed properties makes sense from the outside looking in. A lot of people think they will get a steal.
Price Might Not Justify the Risks
There are so many people who want to make it rich in real estate. They've either read books like Rich Dad, Poor Dad or they’ve taken an inspiring course on making it rich quick. In the midst of all this excitement, people often don't realize the amount of work, time, and the resources involved in being a successful real estate investor.
A lot of these courses are targeted to the U.S. and parts of Canada where the market and laws are different.
Quebec has a rent control system in place and is governed by the Civil Code. This makes it more challenging to find great deals. Landlords can only raise rents by a certain percentage annually so rents tend to not keep up with market prices.
It’s important to know the local laws and market before you start.
Can you be successful?
You need to know how to recognize a good deal when you see one. The key is to focus on one or two investing strategies so you can build experience and knowledge.
Good deals sell fast so you need to be able to make decisions fast.