Top 10 Tips for Canadian Real Estate Investors to Make Money
In real estate, Canadian investors make money, but people don't know how they do. Professional real estate investors with proper training, coaching and education tend to do it better than speculators and gamblers. Canadian real estate has 4.73% annual appreciation, but during the boom it is lot higher. The Professional Real Estate Investors Group (PRIEG) Canada provides proper training, coaching and real estate education, and to utilize the top 10 tips for Canadian real estate investors to make money, we recommend an education from PREIG.
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. The property owners are usually in a situation where they must sell the property for cash immediately and some of these circumstances include: seizure, pre-foreclosure, pre-power of sale, leins or judgements. These sellers are usually in a panic to sell their home and are willing to sell it at a deep discount to a Canadian Real Estate investor, who then proceeds to assign the property by putting the property under contract, and then selling the contract. 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. All of the Canadian real estate millionaires and billionaires built an entire empire off of these unconventional tactics.
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. To have a large rate of return and leverage a property at its maximum, this is the only investment in this universe that is worth it.
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.
The average rate of appreciation for Canadian Properties is 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. 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. What does it mean is the renter income is higher than your carrying cost including: mortgage payments, taxes, maintenance, and property management. Single family homes have a much smaller cash flow than multi-unit and commercial properties.
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. 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). Many Canadians are using AirBNB to create extra income for themselves through their principle residence.
Mortgage pay down:
To lower the amount owing to the bank every month because of your mortgage, make the tenant pay it for you, every time the tenant pays you, you can pay off part of your mortgage. 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. To list a few expenses, your car, office staff, phones, home office and property management. Your tax accountant can tell you about a lot more as well.
Forgivable Canadian real estate grants:
The Canadian Government is very generous to first time Canadian home buyers as well as investors. From time to time Canadian government offers forgivable down payment assistance. If you want to upgrade your property and are a professional Canadian real estate investor you are eligible for multiple grants. 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. By attending the Canadian real estate investment strategy apprenticeship live, you can learn more about these techniques.
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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