Your Local Real Estate Expert

Why Invest in a Real Estate Investment Property?

 Every person who invest in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.

- Theodore Roosevelt

You simply adapt your strategy and techniques to whatever new market conditions are emerging. Savvy real estate investors ignore the media chatter about bubbles and peaks, hard times, and depressed markets. Instead, they work the available opportunities--no matter what type of market they face.

- Gary W. Eldred

An Asset is something that puts money in my pocket. A liability is something that takes money out of my pocket. this is all you really need to know. If you want to be rich, simply spend your life buying assets. If you want to be poor of middle class, spend your life buying liabilities.

- Robert Kiyosaki

It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate.......Well, real estate is always good, as far as I'm concerned.

-Donald Trump

I believe that there is no better time to invest in real estate than the present. With the stock markets unpredictable returns and interest rates at an all time low........real estate investments are a solid long term investment strategy solution for many clients. The right real estate investment plan and execution are key factors to your success or failure. Determining your goals and understanding your risk tolerance level is very important when deciding which type of  property. Are you looking to generate short-term capital gains or do you have cash to invest and wish to create long-term passive income streams? In the Toronto area property prices have increased by almost 300% in the last 25 years and many people who took advantage of real estate investments have positively impacted their financial futures.

-Lori Bennett

Investing Strategies

There are essentially four principal methods in investing in real estate. Each have their positives and negatives as they relate to your own personal comfort level.

Buy and Hold

The concept is to buy a property with the intent of holding it for the medium to long term, while tenting it out to tenants. The tenants pay your mortgage and property expenses, while you see an increase in equity over time through mortgage pay down and property appreciation. Should you still own the property once the mortgage is paid off, the property becomes a considerable source of cash flow for you. Many investors use this strategy for their retirement plan and buy 5 - 10 properties ove the long-term. This particular strategy is about investing in a long-term investment and will likely produce a solid return over time. The regular cash-flow is one of the main advantages of a buy and hold property strategy.

Flipping

The concept is to buy a property and add value to it by renovating it and then quickly reselling it for a profit. Within the "flipping" strategy there are two areas one can profit:

1. You can buy a property and add value to it by renovating the property and then resell the property at a profit.

2. You can buy a property and change its use where it allows you to ask a higher value for the property. An example would be to purchase a single family home in an area zoned for three dwellings and convert the property into a legal triplex and renting the 3 units out to tenants.

Cash Flow

Commonly known as the "rent to own" strategy. The idea is that you rent out your property to a tenant-buyer for a term of 1-3 years, while agreeing to sell the property to them at the end of the lease term. With this strategy you receive positive cash flow from the property, but since you have sold the property and locked in your sale price the tenant buyer is responsible for any maintenance and repair on the property.

Developing

This strategy might involve buying land and developing it with a new building structure. Another option would be to buy acres of raw land, and finance the utilities and services of the land, then sub-divide it and sell the land as individual residential lots. There are other development strategies you could use however, this type of investing is generally best suited for experienced investors as the risks are generally higher with this compared to the other 3 options above.