How much money is enough?

First things first – I love Canada. After being fortunate enough to travel to a large part of this world, I am still grateful and excited every time I come back to the Canadian borders.

Yes, this is completely legal, secure AND tax free. Using RRSP funds for private mortgages is a relatively unknown option in Canada, but believe me, those who are doing it (like me) are reaping the benefits.

Understanding real estate market fluctuations and risk analysis

I’m sure you have heard the expression location, location, location! However, I prefer to focus on timing, timing, timing!

One of my biggest pet peeves is when people, who don’t invest in real estate, speak negatively about investing in real estate and attempt to sway others from doing the same. This happens too often if you ask me and is sadly pathetic to be honest.

What type of investor are you?

There are basically 4 investor profiles that I can think of. Observers, Owners, Speculators and Investors – and each have their very own distinct characteristics.

I often tell my clients that building wealth in real estate is relatively easy if you follow some of the proven models and systems. In fact, one has to go out of their way and try very hard not to become very financially well-off.

One of the benefits of owning investment properties is that it allows investors to build substantial wealth over time through build-up equity (appreciation and debt pay down). Investors, who naturally see equity and cash as opportunities to invest more, often debate whether or not to liquidate parts of their portfolio to fund further ventures.

Value is a word that should never stray too far away from an investor’s vocabulary. As previously discussed, investors must always be aware of their financial net worth, which directly relates to the value of their real estate portfolio.

Speculation is one of the riskiest forms of real estate investing. Speculation occurs when an investor makes a financial decision based on hypotheticals and guesses, not facts.

If I had a nickel for every time an investor rented a property without a lease, I would have about $2.85!! It simply happens too often. A solid lease agreement is the basic foundation to protecting and securing an investor landlord against possible financial shortfalls from bad tenants.

A vendor-take-back mortgage is just one of the many creative ways in which investors can acquire multiple investment properties. With a VTB, the seller basically lends the buyer a percentage of the purchase price and registers a secured mortgage against the property in the name of the seller. The seller, in essence, becomes the lender.

A rent-to-own agreement is essentially a 2-in-1 agreement which includes a standard residential tenancy agreement with a purchase option addendum. Typically the agreement includes a clause wherein the landlord/investor saves a portion of each monthly rent payment to be used by the tenant if and when they purchase the property.