With real estate, people often donâ€™t understand how Canadian real estate investors make money. Professional real estate investors with proper training, coaching and education tend to do it better than speculators and gamblers. Booms happen in the real estate market from time to time, but on average Canadian real estate appreciates 4.73% annually. These are the top 10 ways how Canadian real estate investors make money, but they require proper education, proper training and coaching from Professional Real Estate Investors Group (PREIG) Canada.
These are the top 10 ways how Canadian real estate Investors make money:
Canadian Real Estate Investors find deep discounted Canadian real estate for quick flips. These properties owners are facing seizure, pre-foreclosure, pre-power of sale, liens, judgments, and/or circumstances where they must sell the property for cash within days. These panic home sellers are seeking a quick exit and fast solution to sell their home, they do not mind selling the property at a discount Canadian real estate investors put these properties under contract and re-sell that contract before closing which is also known as assignments. You may think that flipping requires cash or credit, but a quick flip only needs proper training by attending the Canadian real estate investment strategy apprenticeship as well as the Eye-witness Canadian real estate investment training.
Here is the second way of top 10 ways how Canadian real estate investors make money.
Acquiring deep discounted Canadian real estate deals:
To acquire deep discounted Canadian real estate deals, Canadian real estate investors need coaching and eye-witness training to properly use the top 10 sources of finding deep discounted real estate deals. You may be skeptical, but all of the real estate giants who make millions and billions of dollars built their empires on these strategies.
To invest in Canadian real estate, leverage is a must. Most of the Canadian real estate investors borrow 100% of the money. That includes the down payment the main source of the down payment can be equity of the house, line of credit, joint ventures, and/or owner financing. This is the only investment that can be leveraged at its maximum, and the rate of return is amazing.
100% financing (investment property):
Itâ€™s much easier to finance investment properties up to 100% because youâ€™re able to write off all the interest expenses, majority of the time the down payment, closing cost, renovation cost, and emergency funds are supplied by cash money partners, joint venture partners, or your personal line of credit.
Canadian properties tend to appreciate at average rate of 4.73% annually. Since you are only investing 5-20% of your own capital, the other 95-80% of the capital usually comes from a Canadian banker or lender. The current appreciation is from 10-17% annually because the mortgage rates are so low and the market is booming. This appreciation can make you extremely rich overnight. Toronto has some properties that appreciate over $100,000 a year.
Positive Cash Flow:
Positive cash flow is the only way to invest in Canadian real estate. Your income from rent should be higher than any carrying costs of that property, including mortgage payments, taxes, maintenance and property management. Single family homes have a much smaller cash flow than multi-unit and commercial properties.
One of the biggest mistakes Canadian real estate investors make is to rent out unfurnished rental units. Unfurnished units typically have rent 3-5 times lower than a furnished unit, and with the cost of furnishing being cheap it is always worth it to furnish the unit. To make some extra money in the summer, you can rent out part of your house during the summer time through Air Bed and Breakfast (AirBNB). Over 50,000 Canadians are using this strategy to get extra money from their principle homes.
Mortgage pay down:
One of the most important parts about renting out a unit is the tenant, every time your tenant pays you, you can pay off your mortgage, so in the end the principle amount owing to the bank is being lowered every month. Generally speaking an average Canadian will take 25 years to pay off their mortgage on their own home. This way, your tenant is paying off your mortgage for you, and lowering the amount owed every month.
Tax Write off:
As a Canadian Real Estate investor, you can write off all business operating expenses against the rental income. A few common expenses are property management, home office, phones, office staff and your car. Your tax accountant can tell you about a lot more as well.
Forgivable Canadian real estate grants:
Investors and first time home buyers are given a lot of opportunities by the Canadian government Sometimes the Canadian government will provide forgivable down payment assistance. If you are a professional Canadian real estate Investor you are also eligible to get several different forgivable grants to upgrade your property. In the in-law basement apartment suite, there are grants available to furnish it.
Forced appreciation is only for very mature and practical real estate investors. There are several techniques and tactics that a Canadian real estate investor can use to increase the value of their home. You can learn more by attending Canadian real estate investment strategy apprenticeship live.
To utilize these top 10 strategies on how to make money in Canadian real estate, you require a lot of patience and training from fellow Canadian real estate investment experts.
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