Turn Real Estate Into A Business And Retire Sooner
By now you have realized the power of Real Estate Investing and you now have an opportunity to be part of the Millionaires Club! There are so many ways to make a great business with Real Estate both passively and actively.
The fastest way to become a millionaire.
Do you want to be wealthier? To be able to help who you want? Or leave a legacy?…
Have you dreamed of living your life how you want and on your terms?…
Did you know, 90% of millionaires in North America made their money in real estate? That’s no coincidence. Real estate is the best way of not just getting rich, but building actual wealth.
Real Estate Investment Is The Fastest Way To Multiply Your Money.
Let’s take a look…
Real Estate vs Savings
For anyone that thinks you can get rich with savings alone, you couldn’t be more wrong!
Do you know how much you would need to put away today to have $2 million in 20 years?
The answer is $100,000 a year. And that’s after tax. Do you have $100,000 a year to put away? Do you know what life will cost in 20 years from now? Or what will the cost of living be?
Chances are, the answer is no. Saving isn’t a great way to build wealth. Luckily, however, there is an alternative.
Owning real estate means owning something that increases in value faster than the rate of inflation. Real estate is something you can touch, sell, rent – and it’s tangible.That is why i love it. No matter what the market does, I can still rent it out.
If you acquired a property using the bank’s money and then got a tenant to pay it off for 20 years, how much would you make? Let’s say the property cost $400,000 today and would be worth double in 20 years. That would be $800,000!
You could then take 50% of that money right back out – and it would be tax free to spend on what you want while still generating an income!
What if you did this 3 times? That is 2.4 million and all you did was get a mortgage and a tenant!
How many hours a week do you go to work to bring home $1000 – $3000 a week? 40? 50? And the government takes 35% right off you! Then, after bills, how much can you save?
It’s impossible to get rich by saving!
You need to make your money work for you so you can watch it multiply!
The secret to wealth
What’s the secret to wealth? The answer is, there are no real secrets – just a lack of information!
Education doesn’t mean people know what they are doing. Most millionaires don’t become millionaires through scholastic education and jobs. They become millionaires because they understand how money works.
Real estate has made far more millionaires than education. And it’s made more than any business start-up. By a landslide.
We work with so many lawyers, doctors, business owners and professionals that do not understand money. Whatever they learned in school was all about their field. They never took courses on money and finance.
Now, to be an investor you need to get some education in this area.
It is a business and you need to manage it. You must work for free in the beginning, like any business owner or entrepreneur. And, once you have mastered it, created a business plan and executed it with the help of mentors, you can start to invest – not just save!
Investing uses the power of compounding and multiplying.
Wealthy people don’t trade time for money. They just make money work. These strategies are the easiest way to make money. When you get a job, you have to work so hard!
You don’t need to spend more time working for other people’s dreams and building their wealth for them. We don’t want you to work harder, just work smarter.
How to Win at Real Estate
There are lots of strategies available to help you win at real estate.
Here are some of my favourites.
Interest rates have ranged from 2.5 – 6% throughout the last decade. This means a minimum of 25% of your payment is paying off your debt. This could be as high as 60%.
Regardless of what the rate is, it’s a full blown tax deduction!
You need to stop focusing on just getting the best rate and start adopting an investor mindset. If the bank lends you money and a tenant pays it off, you’re basically using their net dollar to hold the asset for you.
The idea is that if the value of the home goes up and the mortgage goes down. You could then multiply this all over again by pulling the equity out and making the new money you borrowed tax deductible again!
So, if you pay down the mortgage by 30k and the value goes up 50k, and you want to access more funds 30k, you can write the interest off while buying another property! There is no end to what you can do with debt pay down. All debt pay down is tax free money.
Any charts or models we show our investors only show 2-3% inflation rates. However, many markets are moving at 6-20% in Canada. This is a huge gain!
It’s important to be conservative with the numbers when calculating returns. However, because it’s such a large investment, even a gain of 2% is a huge gain compared to $100 a month in a savings account. It would take you 20 years to get $200,000 that way.
OPM (Other People’s Money)
People need shelter. So, why not use your tenant’s net dollars to invest? There’s no better way to leverage.
Imagine 3 properties all making $2500 a month rent, which is $7500 a month in income! That is more than many people make a month! Now, imagine how much that will be in 20 years!
Plus you still have your own home and the rentals may be fully paid off!
Grant Cardone is one of the best examples of this strategy in action. He uses OPM as leverage to propel his business. He gets other people to invest and then he buys real estate. That is his model. And, there is no reason you can’t adopt the same strategies!
Any costs associated with real estate investments are tax deductible. This includes mortgage interest, taxes, maintenance, repairs, condo fees, mileage, property management fees, advertising and anything else.
Plus, when you sell a property you can take advantage of one of the most favorable taxes – capital gains. You can basically borrow all the money right back and invest it again, then write it off again.
It’s truly a well oiled machine of infinite returns!
Taxes are the largest liability. Therefore, we recommend seeking expert advice and getting a great accountant to make sure you’re using all the possible tax benefits.
The Benefits of Investing in Real Estate
Most people know that investing in real estate has benefits. But, most don’t believe they have the knowledge or skills required to do so.
Whether you want to quit your 9-5 job, save for retirement, pay off debt, or reach other financial goals, a property investment can give you a reliable source of income.
And, in the long-term, it can help you build more wealth and even live your dream life.
Have you heard of Grant Cardone? He started with nothing, and, using real estate strategies, managed to reach the top of the ladder. He’s now one of the most successful people in the field, with a real estate empire worth and estimated $900 million.
Even if your goals aren’t as extravagant, you can still make massive improvements in your life using real estate investment.
Keep reading for some of the benefits of investing in real estate.
Better Work-Life Balance
For a lot of us, work takes up a huge proportion of our time. It can feel like we’re spending so much time at work. Meetings, travel, late nights at the office – it all adds up, and it often leads to us feeling stressed.
Over time, this takes its toll. It can have a major impact on our family life and health.
One of the biggest benefits of investing in real estate is that it can help you achieve a better work-life balance.
Having a regular monthly income through real estate gives you a steady, predictable monthly income that gives you much more freedom.
Even if you love your job, having a real estate investment is an amazing backup. It can give you the freedom to take time off, work less hours, or even leave if you want!
Or, it can just give you some extra income. Becoming less reliant on your salary gives you more flexibility. And, having more money allows you to do things you enjoy in your free time.
Everyone has a different plan and different goals. So we will give you everything you need to know exactly where you need to be to reach the goals and what it takes.
More Time To Pursue Other Interests
Working long hours can be stressful. But, it can also stop us pursuing other interests and doing the things we love.
Time is precious. And spending all your time in the office means you could be missing out.
Investing in real estate gives you the extra income you need to do other things. Maybe you want to learn a new skill or get a new hobby? Or start a business? Or volunteer for a cause you feel passionately about?
Having more money in your pocket each month gives you the freedom to do this!
As Grant Cardone says, “In order to get to the next level of whatever you’re doing, you must think and act in a wildly different way than you previously have been. You cannot get to the next phase of a project without a grander mind-set, more acceleration, and extra horsepower.”
Early Retirement Becomes Possible
The average retirement age in Canada is 65. However, most are short of cash in retirement and are working part time. They are down sizing instead of being able to stay put.
With real estate, early retirement becomes very possible. This is a key goal for many people and it’s something that drives them.
After all, why would you want to spend your whole life working?
It’s a goal that lots of people feel is out of their reach. But, with careful planning, it can easily become a reality. Real estate is a solid investment that can become your actual nest egg
It can give you more time in retirement, as well as more money. This means you can fully enjoy your retirement, rather than not being able to afford anything.
It’s a Stable Long-Term Investment
The stock markets are known for their volatility, especially since the global recession.
As stocks can be bought and sold easily and quickly, their value can fluctuate a lot – sometimes by as much as 5% in a single day!
It’s almost impossible now to get significant returns without taking big risks.
If you’re looking for something more stable, property is a reliable investment with much lower risks. Because it’s a much longer-term investment, it’s much easier to withstand market crashes.
By using real estate as part of your investment strategy, you can benefit financially in the long-term. You can then use this money to pay for your kids’ education, spend it on your family, or retire early.
It Has Tax Benefits
Another benefit of real estate is that it can have some tax benefits. This is something many people are unaware of, and if they are, they often don’t realise how lucrative property investment can be in this area.
For example, in Canada, you can deduct certain expenses including property taxes, maintenance, insurance payments, property management, and even mortgage interest!
Plus, any losses you make from a rental property can be claimed back as tax relief and subtracted from any other income sources you have. And, as you can probably imagine, this can be a substantial figure if you’re an investor.
Maximize Profits and Build Wealth
Your cash flow is the net income from your real estate investment. This is a key benefit of investing in a property – it gives you the ability to generate more income.
You can make healthy profits through rental income and other investments in real estate. And, as real estate is an appreciating asset – values tend to increase over time – this maximizes your profits.
Real estate is an asset that becomes part of your net worth. And this gives you the ability to create more wealth in the long term by adding to your portfolio or investing elsewhere.
It’s important to remember that real estate is one of the best investments you can make. Because you can use leverage to increase your returns, it’s easy to build wealth for the future.