Most people know only 2 profit centres in Real Estate, however once you have viewed this short video of the 7 profit centres, you will realize why 90% of all millionaires make or keep their money in Real Estate.
We will add more videos explaining each of the 7 profit centres in more detail shortly.
7 PROFIT CENTRES TO REAL ESTATE RICHES
For many years I followed my father’s advice to study hard, get a degree and work for a large corporation, so they can take care of you for the rest of your life. Perhaps you have heard it too, and perhaps you now realize that there is no guarantee of job security. After becoming a professional accountant in a large organization, it looked like I had it made until my job security was threatened on a daily basis. That motivated me to look at my life differently, and in 2004 I began my journey into real estate investing. At that time I was living in Vancouver, BC. The first place I looked to study was Edmonton because of the strong oilsand industry and because there will be strong demand for oil and it’s by-products for the next 100 years regardless of electric cars. The best way to learn how to invest in real estate is to model people who are already successful in this field, for example my mentor July Ono (multi-millionaire in BC) taught me the 7 profit centres. It’s easy to remember these 7 profit centres by using the acronym REALTOR:
R– Rental Income – covers expenses and anything above is positive cash flow
E– Equity Day One – buying below market price, or negotiate to the lowest purchase price.
A– Appreciation – in general, property will double in value every 25 years according to CMHC
L– Leverage – the bank gives you a mortgage to help you buy – and you get the appreciation on the bank’s money
T– Tax Benefit – investing in real estate is a business and you can deduct direct expenses such as property tax, insurance, property management and repairs.
O– Off-setting the Mortgage – your tenants are paying down the principal every month so after 25 – 30 years you will own this property clear title.
R– Re-investing – instead of selling the property, you may refinance and pull out the equity to buy more properties
Since 2004, I became a sophisticated Real Estate investor, I have personally bought and sold over 100 properties, and Real Estate investing gives me financial freedom which allows me to choose to work or not. In 2008, my husband and I decided to move to Edmonton, and I got my Alberta Real Estate license in the same year. I have helped hundreds of clients to buy, sell and invest in Real Estate and the majority of our clients create wealth by using Real Estate as a vehicle.
I believe that everyone has the right to be rich, to be happy and to enjoy life with their loved ones. Let’s talk about your investment plan today, call me at 780-893-7129 to obtain more information before you consider starting your investment journey.
You can use this online cash flow analyzer to help evaluate a property for investment potential.