property-investment-planning-ontarioBuilding Wealth with Property Investment:

Designing an Action Plan


Regardless of whether you’re new to real estate investing, or have done your share of deals, one of the most important things you can do to generate maximum wealth is to create a properly designed investment plan. Taking the time to analyze and assess your resources, build up your investment strategies and reflect on your goals, and seek out expert advice are key elements of this planning process.

Step 1: Articulate Your Goals

The first step is to define your goals with involved parties. This will establish the basis of your plan.

When articulating your goals, the most important thing is to just get down your ideas. Why do you want to invest in property to begin with? What do you want to achieve in 6 months? One year? 5 years? 15 years?

Try a process called back casting: This involves starting with your goal for the distant future, whether it be 15 or 30 years, or retirement. Then, start asking how you can build towards that goal starting right now and incrementally moving towards your ultimate goal.

Think Big, but Keep It Reasonable
Cultural conditioning often limits what we think we can achieve. Don’t limit yourself too much, but be sure to stay in reality. Sure, it’s possible that you could make millions in the first few years, but if your assets don’t align with that goal, you will only dishearten yourself by shooting too high. In setting your goals, make sure they are realistic, specific, and attainable. If your goal is to retire in 30 years, find out what that would entail in your chosen investment areas. How many rental properties will you need to own? How many houses will you need to buy and sell each year?

Capital Growth or Rental Income?
There are a few basic ways you can make money off of real estate: long term gains based on your property’s value and reselling, short-term gains from fixing up a house and more immediately reselling (flipping), and rental income from rental properties. Of course, it is possible to have a rental property that you later sell.

Which of these investment strategies you choose or which one you focus on depends partly on your financial situation, and partly on what you are willing to do.

Are you willing or able to fix up houses and increase property value by landscaping? Are you willing to manage properties yourself or do you need a property manager? The answer to these questions will determine if you need to hire anyone, and help you get a better sense of your budget.

All that being said, here are some example starting points for goals:

  • 30 year goal: Retire with $10,000 in passive income per month (adjusted for inflation), with $x amount of free and clear rental property.
  • 15 year goal: have $5000 in passive income per month. Sell properties purchased 10 years ago. Decrease fixer-upper purchases and focus on rental properties. Acquire 4 more long term rental properties.
  • 5 year goal: Acquire $1 million in real estate in appreciating neighborhoods. Begin to flip 3 properties per year with an average of $25,000 in profit. Acquire 2 long term rental properties.
  • 1 year goal: buy and flip 2 properties and acquire 2 long term rental properties.
  • Six month goal: acquire one long term rental property, and buy and flip one property.

Step 2: Analysis and Assessment

The Second step is to get together with the involved parties (your life partner, investment partners, etc.), and decide how much money you can initially use for investment. This will of course set up the projections for future income and investment.

Determine the worth of your tangible assets, including: your primary residence, other property, vehicles, furnishings, jewelry and other valuables, etc., along with your savings and investments.
Determine your long term and current liabilities (loans, credit cards).

Now look at your income, as well as any income you may acquire through selling any of your assets. Go to your preferred bank and find out how large of a mortgage you can be approved for. You will be using a lot of information from your assessment to fill out the bank’s application forms, so make sure to keep your tax documents and proof of income handy once you’ve used it in your assessment, as the bank will want to see proof of your assets and income.

Surround Yourself with Experts
Part of your assessment and analysis must be assessing what kind of professional resources you have access to along with your financial assets. Investing in property is a complex process, especially if you are doing it for the first time. Luckily, there are many professionals who can help you, and although their help will obviously come at an up-front cost, it will be well worth it.

Professionals to seek out help from include:

  • A residential or commercial property investment adviser like myself
  • Property managers
  • Eventually, other professionals like home inspectors

Step 3: Design and Implement the Plan

In order to flesh out your plan, you will need to take your goals and create a more specific timeline. Crunch the numbers to find out whether your goals are truly realistic, and adjust as needed.

Some things you want to look at include the current property prices in the areas you want to invest, and short-term to long-term trends for median prices (to get a sense of capital gains), and the average rental amount for the neighborhoods or cities you will invest.

Will you be managing property? If you pay a manager, how will that affect your bottom line? This part of your process might involve consulting with your property investment advisor.

Evaluating Investment Properties
As part of your plan, it is important to have a methodology by which you can assess your potential investments:

  • Looking at my current assets, is this investment affordable? What are the immediate and ongoing costs?
  • How likely is the investment to increase in value? Look at past history of the property, as well as properties in the neighborhood.
  • How much income will be generated from the property, either ongoing rental, eventual sale profit, or both.
  • What effect will it have on your taxes? How much are taxes on the property?

Don’t get caught up in a desire to become an instant millionaire. Take the long view and work towards your goals one deal at a time. Above all, don’t make the mistake of trying to cut costs by figuring out everything yourself. The more mistakes you can avoid by consulting with experts, the faster you will reach your goals.

But remember, it is also important to continually evolve your plan and to reassess your goals based on your life’s evolution and what you learn along the way. If you continually evaluate your efforts and make improvements based on your own observations and the advice of your adviser, your financial dreams will be much more likely to come true. As the saying goes, “Plans are useless, but planning is indispensable.”







步驟 1: 確立你的目標









  • 30年目標:以每月$10,000的被動收入(按通貨膨脹調整)退休,並有$x的明確出租物業淨值收入。
  • 15年目標:每月有$5000的被動收入,出售購買了10年的物業,減少購買殘舊待修的物業並專注於出租物業,獲多4個長期出租的物業。
  • 5年目標:投資鄰近升值的房地產市場並賺取$100萬,開始每年翻新3間物業,並平均獲得$25,000的利潤,獲得2間長期出租物業。
  • 1年目標:購買和翻新2間物業,並獲得2間長期出租物業。
  • 6個月目標:獲得一間長期出租物業,以及購買翻新一間物業。

步驟 2: 分析和評估








  • 像我一樣的住宅或商業物業投資顧問
  • 物業經理
  • 其他專業人士如家居檢查員

步驟 3: 設計和實施計劃





  • 看看我的流動資產,我能負擔這項投資嗎?即時及持續的成本是什麼?
  • 這項投資是怎樣增加價值?看看物業過往的歷史記錄,以及附近的物業情況。
  • 這項物業可以產生多少收入,無論是持續租金收入、最終出售獲利,或是兩者兼有。
  • 這對你的稅務情況有什麼影響?這項物業的房產稅是多少?










步骤 1: 确立你的目标










  • 30年目标:以每月$10,000的被动收入(按通货膨胀调整)退休,并有$x的明确出租物业净值收入。
  • 15年目标:每月有$5000的被动收入,出售购买了10年的物业,减少购买残旧待修的物业并专注于出租物业,获多4个长期出租的物业。
  • 5年目标:投资邻近升值的房地产市场并赚取$100万,开始每年翻新3间物业,并平均获得$25,000的利润,获得2间长期出租物业。
  • 1年目标:购买和翻新2间物业,并获得2间长期出租物业。
  • 6个月目标:获得一间长期出租物业,以及购买翻新一间物业。

步骤 2: 分析和评估








  • 像我一样的住宅或商业物业投资顾问
  • 物业经理
  • 其他专业人士如家居检查员

步骤 3: 设计和实施计划





  • 看看我的流动资产,我能负担这项投资吗?实时和持续的成本是什么?
  • 这项投资是怎样增加价值?看看物业过往的历史记录,以及附近的物业情况。
  • 这项物业可以产生多少收入,无论是持续租金收入、最终出售获利,或是两者兼有。
  • 这对你的税务情况有什么影响?这项物业的房产税是多少?