Step 1
Get 50 cents.
Step 2
Buy the local newspaper.
OR
If you have a computer (Pun intended), go to thestar.com
(Click on that link it will take you directly to the classifieds section)
Step 4
Take out the classifieds section.
If you're looking on thestar.com, simply look in the classifieds section.
Step 5
Scan the classifieds section thoroughly for properties that appeal to you and highlight them.
If you're looking on thestar.com, take a pen and piece of paper and jot down the properties that interest you.
Step 6
Call up the phone numbers listed in the advertisements for the properties that interested you.
Step 7
Based on the advertisement, write down appropriate questions you would ask the seller. Ask them why they're selling, the condition of the property etc.
Step 8
Use the phone number listed in the advertisement to contact the seller. Ask him or her these various questions.
Step 9
Based upon your answers find which property best suits you. E.g. location, price etc.
Step 10
Do some math. Based on a 20-25 year mortgage at about 4% (as of this writing), calculate if renting the property would be profitable (Rents minus expenses and payments). Make sure you have a positive cashflow.
Step 11
Now that you have decided on a property, call the seller back or better yet meet them in person. Negotiate a reasonable price. Offer a ridiculously low price as to what they are offering, say 1/3rd the price. The reason why is because psychologically the seller will always compare the first price to your second offering. This way what you offer after will always sound better. Also you want to geta cheaper price, and the seller usually jacks up his/her price because he knows this.
Step 12
Close the deal; finalize the offer.
Step 13
Call up your local bank and tell them you would like to take out a mortgage on a house.
Step 14
Once you have confirmed a meeting with the manager or whomever, go to the bank to discuss details and sign papers for the loan.
Step 15
Now that you have a loan you must find tenants to occupy your residency. So, find a tenant/tenants.
Step 16
Write up a contract for your tenants; use a lawyer if you must. Make sure they sign it and agree to it.
Step 17
Now you may collect the rent. Use the rent money to pay for the mortgage. Keep the excess, that is your profit.
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