Bricks and Mortar in 2009
January 9, 2009
Why Invest in Real Estate: Taking Action is what we do as real estate investors, we take action when others think about it but do not act. Why invest in real estate? Taking care of your future also requires thinking with the end in mind. 90% of all wealthy people invest in real estate. Trump, and Kioysaki, are a couple that come to my mind. Canada is still at the present moment one of the strongest countries during this economic time.
Leverage- we use leverage to maximize the return on investment (called ROI) For example most people think that buying an investment home requires lots of money. Let’s use an example; the way most people have been shown how to buy property is this….they take 1 dollar lets say and use that dollar to buy the property.
Now… what if you took that dollar and split it into 4 quarters…. Then you could take those 4 quarters and put each of them on a property as a downpayment and use the banks money to leverage the rest. This would be smart especially if you have tenants which are your most important asset taking care of that mortgage and carrying costs for you.
-So the reality is that if you know what is out there for you, you can actually have multiple properties all with that $1. That is the power of leverage.
What’s best for you. Simply put. Real estate investing is something everyone can considered by everyone as an a way to expand your portfolio for investments. If you approach it with a system or using a professional who understands what is necessary. Many people today are not thinking ahead about tomorrow. Your future is in your hands, and taking care of it financially is the best way to take care of your family and loved ones in your life. When looking at real estate as an investment make sure that you know your credit score which you can get off the web for around $21 dollars, and keep track of it every 6 months. It does not cost you points to look at your own score. When looking for financing remember that every time you go to a different bank there is a 3 point hit on your credit. This is why going to a mortgage broker can work well. If you invest on your own, make sure to do a lot of due dilligence on the property, area, tenants if already there. You do not want to take on someone else’s problems. It can be overwhelming but with help or advice, you too can work towards your financial freedom through real estate as another form of income, and equity building.
Check out www.hemlockinvestments.ca/events for our fundraising informational seminar on investing. 80% of Profits go to Habitat for Humanity.
Cheers to a successful investing year!
