Top 10 Strategies for Canadian Real Estate Investors to Make Money
Canadian real estate investors make money, but people don't understand how they do. Speculators and gamblers usually do a lot worse than Professional real estate investors with proper training, coaching and education. 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 tips for Canadian real estate investors to make money, but to utilize these tips we recommend getting proper education, training and coaching from the Professional Real Estate Investors Group (PREIG) Canada.
These are the top 10 ways how Canadian real estate Investors make money:
Quick flips require deep discounted Canadian Real Estate, and Canadian Real Estate Investors find these properties and quick flip them. 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. Even with a lack of credit or cash, quick flips only require proper training by attending the Eye-witness Canadian real estate investment training as well as the Canadian real estate investment strategy apprenticeship.
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.
Leverage is the most important component of investing in Canadian real estate. Most of the Canadian real estate investors borrow 100% of the money. The down payment is included in this, and owner financing, joint ventures, line of credit or equity of the house is usually used as the main source of the down payment. This is the only investment that can be leveraged at its maximum, and the rate of return is amazing.
100% financing (investment property):
Financing a property 100% makes your life a lot easier because it provides so many more options because of the emergency funds you have from a cash money partner, joint venture partner or your personal line of credit, you can write off interest expenses on the down payment, closing cost and renovation cost.
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. Since the market is booming and mortgage rates are extremely low, the current annual appreciation on a Canadian property is 10-17%. This appreciation on properties can make anyone very rich in a short period of time. Appreciation of over $100,000 a year sounds impossible, but some properties in Toronto are appreciating that much annually.
Positive Cash Flow:
Positive cash flow is the only way to invest in Canadian real estate. Positive cash flow means that your income from rent is higher than your cost of mortgage payments, taxes, maintenance and property management. The cash flow is much lower in single family homes, but it is pretty substantial in multi-units and commercial real estate.
Renting out unfurnished rental units is one of the biggest mistakes a Canadian real estate investor can make. 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. If you want to rent out part of your apartment in the summertime, Air bed and breakfast (AirBNB) is a great way to accomplish it. Over 50,000 families in Canada are using this strategy to create extra income in their own principle homes.
Mortgage pay down:
One of the best kept secrets in Canadian real estate investments are your tenants, every time your tenant pays you money, and you pay your mortgage payment to the bank, the principal payment owing to the bank is being reduced every month. To pay off a mortgage it takes an average Canadian 25 years to do it. When the tenant provides you with a steady income, the tenant is retiring your mortgage for you.
Tax Write off:
Canadian real estate investors can use the rental income to write off all business operating expenses. A few common expenses are property management, home office, phones, office staff and your car. If you want to know more, your tax accountant can educate you.
Forgivable Canadian real estate grants:
Investors and first time home buyers are given a lot of opportunities by the Canadian government From time to time Canadian government offers 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. If you want to furnish your basement in-law apartment suite, there are also grants available for that!.
This strategy is for very experienced and knowledgeable Canadian real estate investors. To increase the value of a home at no cost sounds like a dream, but Canadian real estate investors can do it with several strategies and techniques. If you want to learn more, you can by attending the 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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