If you are looking for high capital appreciation, a high-income stream, and the best tax advantages, there is nothing better than a real estate investment. It can be “The moment” of your life that can bring financial security – for a long time. Not only will you be able to enjoy your financial liberation, but also you can have more-than-enough tax savings. Because when it comes to the tax implication laws on real estate, Canadian laws are much lenient. With that in mind, we can say that real estate investment is the safest way of making more money in Canada.
You have a big playground to experiment with your money. You want to bet on the best player of the game. That player should be associated with the field for more than five years (minimum). What else should be there in an excellent real estate agent? Read on to find how to look for a good real estate agent – the one that you can trust your money with.
There are some questions that you need to ask to select the best candidate for this job. The job that may be just everyday routine work for a realtor is a BIG decision of your life. So, make sure you ask the right questions and make the best judgment when investing in real estate. Here are some questions and tips that may come in handy for you.
1. Don’t Go On A Friend’s Recommendation Directly
If you discuss your plans for your investment in real estate with your friends or family, you may get any number of recommendations. Maybe someone in your immediate circle doesn’t know a realtor directly. They must have some other friends that will be in contact with a good realtor. You need to be sure that you are not making any decisions just because your friend recommended them to you. Of course, their recommended person can also turn out to be a trustworthy realtor, but it’s not always necessary. Do your proper research before hiring any realtor, even if your close friend has recommended them to you.
2. Do Check Their References
Once you come across a couple of realtors, you will know the mechanics of the whole deal. Any realtor you interact with will begin with providing their references (contact details of their previous clients). The surprising fact is most people trust their realtor based on the number of references they provide. Most people don’t bother cross-checking those references. But you will not make this mistake now. A realtor will not provide you with references where they did not do a good job. But you can find it out after some research.
3. Ask About Their Experience In The Field
This sounds like an obvious question to ask a realtor. But many people don’t consider it that important. Assisting people with their real estate transactions is not an easy job. Real estate is a job that requires lots of experience to thrive in the challenging market competition. So, it would be best to look for someone with at least five years of experience buying and selling properties for people.
4. Some Additional Questions
Since this is a significant transaction, you cannot settle with just the average. You need to interview at least two to three realtors before finalizing them. Here are six additional questions that you can ask the realtor to understand their working mechanics better.
- How many deals do you close annually?
- How long have you been working in the field locally?
- Who should I contact, and what will the mode of communication in case of an urgent meeting?
- How will you assist me throughout the process?
- What qualifications or skills enable you to be unique in the market?
- How can I know more about your past clients?
Of course, you can skip some of the questions depending on the visible facts. But make sure you are well aware of the basics of your agent’s portfolio.
Now that you have a good idea about looking for a real estate agent, you can make an informed decision. To make the most of your real estate investment, you should also consider looking for some tax specialists for real estate investors. And when looking for a tax specialist, you can also go for a professional accounting firm in the business for a long time. This way, you can ensure maximum security for your entire real estate deal.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.