I think there's a good opportunity in St. I know some good student rental opportunities and there's a lot of what I call up-and-coming opportunities, like where you're on the edge of a good neighborhood and a bad neighborhood. I like to hold those kind of properties several years to be part of the resurgence rather than buy later.
Trial and error does not work in real estate. It's way too expensive to learn from your own mistakes, you need to learn from others' mistakes. I tell folks there are three things you absolutely must do when buying. One, understand how the financing works because it can make or break you. Two, work with a home professional, someone who knows how to renovate or a home inspector or contractor who can give you the details of a home; and No.
If you think the cost of a professional is expensive, wait 'til you get the bill for making a mistake. Want more of our free, weekly newsletters in your inbox? How important is location to an income property? As you mentioned, it seems it would be good to be near a university with thousands of students who need places to live. Student rental is definitely a very profitable form; it is also a very time intensive type of investment. There's a lot of working involved with student rentals.
It's very different. Technology has really created new markets. For instance, Airbnb has created a high demand for executive short-term and vacation properties. Even 10 years ago, it was hard to find tenants without newspaper ads.
When I got started, I used to go around to all the campuses and post rental signs on and off campus and now I just go online and list. Same thing with using agents for renting or selling some of our flips.
Now I can get my properties sold online. We can't afford to pay 6 percent commission in some cases — that's a lot of our profit gone. And when I purchase through these portals you get back some of the money. It's a fairly new concept.
It was an idea that captured the zeitgeist but was also based in reality: Expanding on research done for a college project, McGillivray turned the concept of purchasing income properties into a successful business model by the time he was So it seems like the years are treating Scott McGillivray just fine. Follow House Beautiful on Instagram. Design Inspiration.
Room Ideas. How to Renovate. A year after that purchase, he was able to buy his own home, renovating the basement as an apartment he could live in while renting out the rest of the home. According to an interview with the National Post , he lived there for eight years, ultimately moving to a larger home when he got married and Income Property had started to take off.
During that time, he amassed more properties to renovate and rent; by , McGillivray told the Post , he estimated that he owned approximately properties and had about tenants. While he admitted that being a landlord isn't always easy, it can definitely be lucrative — for the right type of person, that is.
It takes the right type of person and the right type of attitude. Purchasing a home with plans of renovating and renting in the way that Scott McGillivray does it on Income Property requires a meticulous strategy, and there's not much margin for error.
McGillivray outlined the three things anyone following in his footsteps "absolutely" needs to do. His third piece of advice is to hire a local agent who's very familiar with the community and knows the lay of the land, someone who "understands what the local schools are like, whether or not there's a water backup problem, things you don't see online.
While prospective buyers may balk at the cost, McGillivray contended that hiring a professional is money well spent, warning, "Wait 'til you get the bill for making a mistake.
Considering that Income Property 's Scott McGillivray has been investing in income-generating properties since he was a university student, he's had to evolve his strategy to adapt to everything from changing market forces to technological innovations. The advent of Airbnb and similar online home-rental platforms, he told the Tampa Bay Times , has made it easier to rent out short-term accommodations and vacation properties, a far cry from when he used to take out ads in newspapers in order to find tenants.
One thing that hasn't changed over the years is the constant need for student accommodation, and he told the Times that buying an income property near a university could be a solid investment. However, he also cautioned that, while renting to students can be lucrative, "it is also a very time-intensive type of investment," noting, "There's a lot of working involved with student rentals.
Since starting Income Property in , Scott McGillivray has renovated a lot of properties on the show. One particular home that stuck out to him was from the show's seventh season, which he pointed out was "one of the first dedicated investment properties we ever renovated on the show.
Another home he recalled as a favorite was one that he and the Income Property crew nicknamed the "rat house," so named for the infestation of rodents discovered in the basement.
The extensive renovation, however, resulted in "something beautiful" and brought the homeowners "a really good return on their investment.
McGillivray also highlighted a renovation from the show's tenth season, which represented "a unique opportunity to work on a heritage building. However, he shared that "the end result was a really unique space unlike any other I've done. As the owner of numerous income-generating properties in both the United States and his native Canada — and let's not forget his multiple HGTV series and associated media projects — Income Property 's Scott McGillivray has been building up his bank account.
As McGillivray told Canadian Business , his strategy for generating wealth has always been keeping his eye on the horizon and not resting on his laurels. It also helps, he explained, to be enthusiastic and engaged about whatever project is being undertaken while remaining "authentic" to one's core beliefs, and that's definitely the case for him. Authenticity [paired with] passion really is the winning combo.
Most people have a shameful secret from the past, so what's Income Property host Scott McGillivray's secret? Well, it's the fact he was once in a boy band.
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