Patrick Bieleny on How to Make Money in Real Estate

Patrick Bieleny
Sep 18, 2020 · 3 min read

Flipping houses is a great way to profit off the Real Estate market. It is one of the more popular methods and well-known for dramatic transformations as shown on various reality television shows. The idea is to purchase a run-down property under market value, renovate or flip it to make it more valuable and attractive to buyers, then sell it for a profit. This is one of four ways to make money in the real estate industry and Patrick Bieleny’s personal favourite. But, as a business professional, he recognizes there are other ways to make a pretty penny in the industry.

Patrick Bieleny is the proud owner of PB & Co. Houses, a company focusing on finding, flipping, and selling choice properties in the Calgary area. Bieleny’s interest in Real Estate investment began at university, where he pursued a degree in business management. Originally from Eastern Europe, Bieleny immigrated to Canada in 2010 to attend the University of Toronto. Since then, Canada has become his home and the prime market for his investment aspirations. He takes the time to discuss how individuals can grow their wealth by investing in real estate.

Rent Out a Property

A simple way to make extra cash from a real estate property is to rent out a portion of your own home (if you own it). You can opt for roommates, sharing the main living space of a house or condo. Or, as many homeowners choose to do, create an additional self-contained living space on the property. For example, basement and attic apartments offer homeowners the opportunity to make rental income and pay down their mortgages faster. Some owners will even opt for complete renovations, sometimes splitting a two-storey single-family home into apartments on each level. Depending on your interests, both options are great ways to mitigate your monthly living and mortgage costs.

Purchase an Investment Property

If sharing your property isn’t right for you, Bieleny also recommends purchasing investment properties. This can be as simple as purchasing a condo to rent out in the same city where you live or as big as purchasing an entire apartment building. If you do opt for a larger investment like an apartment building with anything from a handful to a few hundred rental units, there is even the opportunity for ancillary income, Bieleny explains. That income would come from things like laundry facilities or vending machines. As an added bonus, if being a landlord isn’t right for you, you can even hire professional management companies to handle the day to day business for a fee.

REITs

If the world of Real Estate seems like an interesting opportunity for you, but you aren’t ready to take the plunge, you can still participate in the market. Consider investing in Real Estate Investment Trusts (REITs), says Bieleny. There are three categories of REIT: equity, mortgage, and hybrid. An equity-based REIT focuses on purchasing actual properties and reaping the rewards of ownership. A mortgage REIT funds mortgage loans and profits off the interest. Just as it sounds, a hybrid REIT is a blend of both equity and mortgage investments. REITs are fantastic investment vehicles for those who prefer a hands-off approach or just too busy to worry about a property, says Bieleny.

No matter which way you choose to engage with the world of real estate, there is money to be made. Flipping houses is an entrepreneur’s game, renting a portion of your home helps manage budgets, investing in rental properties generates income, and REITs are great (though more passive) investments in a fascinating market. When it comes to real estate, there’s a niche for everyone.

Real Estate 101 with Patrick Bieleny

Calgary, Alberta, Canada.