What is the investment vehicle of real estate? A simple way of thinking about it is like this. You could invest $20,000 into real estate, and then you could put another $20,000 into the stock market. In one day, the stock market could drop 10% just from a speculation of “possible” bad earnings in a company, in this case you would loose $2,000 in a snap! The likelihood of you loosing $2,000 in a snap of the value of your real estate investment in the matter of one minute is pretty slim.
There are some popular books about real estate investing. I read “Rich Dad Poor Dad”. Another is “The ABC’s of Real Estate Investing”. Both of these books shed light on how the real estate industry works. Investing in real estate is not traditional real estate. You’re searching for “value” and treating real estate as a commodity, not a home.
However, with real estate investing, the main point is not to focus 100% on the “value” of the property. Instead, you focus on cash flow. You might invest $5,000 into a property, but when that property is rented, it could create $500 in cash flow per month. You repeat the investing process until you have enough cash flow to supply your everyday needs. If you need $100,000 per year in order to live, then you would need to invest in 17 houses that bring in $500 in profits every month! That is not a lot if you think about it. That means you need to make 17 good deals in order to work for yourself and make a healthy amount of money!
That’s overly simplistic, but the idea is sound. Make your money work for you in a safe investment vehicle.
If you’re interested in finding good investment real estate in Kitchener Waterloo, please call or email. We’d love to help.