There are so many possibilities to consider when you’re contemplating investing your money. Stocks and bonds, mutual funds and gold- the choices seem practically endless. You have to consider the risks you take and the rewards you reap with each of them. At the end of the day, you want to maximize the profit you’re making from your investments. With that in mind, it just makes sense to invest in the most lucrative option.
Most investment options have one, maybe two potential sources of profit. You can cross your fingers that the value of your investment increases so you can then sell it at a profit, but that’s about it. Isn’t it preferable to have an investment that will give you a profit through multiple avenues?
Let’s talk real estate. Real estate investments provide not one, not two, but eight profit centers. These are:
- Instant Equity
- Cash Flow
- Forced Equity
- Principal Pay-Down
We’re not going to get into each of these in detail today, but right off the bat, you can see from that list alone how real estate can become a gainful investment.
From the day you invest in a property, you can already find yourself better off than you were previously. That’s due to “Instant Equity”, which is what happens when you buy a property for less than its market value. You might be asking why someone would choose to sell a property for under what it’s worth.
There are a few reasons for that: the owner might have inherited the property and decided it’s not worth dealing with, or they might be in a situation where they need to liquidate their assets quickly more than they need to maximize their gains from it. Whatever the case, they need to make a quick sale, and that’s where you come in.
After that, once you own the property, you start getting into all the other profit centers real estate has to offer. Property can naturally gain value over the course of time: that’s the “Appreciation” from the list. You can also expand your profit by renting out the property for an amount greater than the expenses associated with your property: that one is “Cash Flow”. And once you’ve begun making a profit with a property, you can reinvest in even more properties, granting you the ability to increase your net worth exponentially.
You want to make smart investments that are going to pay off over time, right? So why not put your money behind the option that will bring in cash from all sides? Real estate could very well be right for you- with the right investments, you could end this year with a greater net worth than you’ve got. The trick is, you’ve got to start.
investwithcaroline.com has been actively involved in the Ontario area real estate market investing for a number of years. Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Caroline offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact Caroline.