Investment Strategies
Choose Your Path
When getting started in investment real estate, it’s important to ask yourself, “What are my end goals?” There are many strategies that we can use to help you achieve the goals you’ve set for yourself, and the most important one is understanding what strategy will work BEST FOR YOU!
Long Term Wealth: Buy & Holds
The Buy & Hold strategy is one of the most popular strategies for long term WEALTH in real estate.
It can increase your monthly income, help you plan for early retirement, diversify your income with greater stability, creating more freedom and more generational wealth.
If these goals sound familiar... Then increasing your passive income would be a great solution
You have the ability to get yourself a property for the purpose of generating passive income much easier than you think!
Whether you live in part of the property and rent out the rest, known as the house hack method or have it solely as a rental property that gives you the greatest amount of cash-flow.
Your goals
Your time commitment
Capital available
From there we create a plan that makes sense for you as there are 4 ways to generate income from a buy & hold. We are experts of the Edmonton & area, we get to know what matters to you most as an investor and best advise which area’s fit you as an investor.
Each area will offer different cashflow opportunities, vacancy numbers, tenant profile and natural appreciation.
First, We Need to Understand:
Four Ways to Generate Income From a Buy & Hold
1. Cash Flow
Cash in your pocket that is paid out to you monthly.
2. Mortgage Paydown
Your tenants will be paying off the mortgage which will eventually leave you with a property that is fully paid off!
3. Appreciation
The ability to increase the property’s value by improving the property which is known as the “BRRRR method” and/or purchasing near infrastructure with increasing demand in order to accelerate the value of your home!
4. Tax Benefits
Consider this property “a business” that allows you to write off multiple expenses which will in turn benefit you as the owner.
Short Term Wealth: Fix & Flip
If your goal is to be more active in real estate and to turn larger profits in shorter periods of time, then fix and flip is right for you.
We can FIX & FLIP any property type, whether it is a small condo apartment that you purchase for less than $100,000, a single-family home you purchase for $300,000, or a multi-family property you purchase for $1M. We need to ensure the numbers make sense at the end of the day and that means YOU making a PROFIT!
Fix & Flip Success
We use a simple equation to calculate Fix & Flip success. Once this equation is complete, if the profit makes sense to you, that means the deals makes sense as well, and we should put in an offer without ever exceeding our maximum purchase price.
Four Variables That Can Be Strategically Controlled to Yield Profit
1. Purchase Price
Equity in the purchase matters. If you can secure an aggressively low list price, this directly translates into more profit.
2. Labour & Materials
There is wide variation in costs of labour and materials when doing construction. Get a good deal and control costs to maximize profit.
3. Holding/Borrowing Costs
Borrowing money can get expensive and the more you borrow the more interest you pay. Control costs of borrowing to increase profit.
4. Selling Costs
Selling a property involves transaction costs. Build a strong relationship with your professionals to get preferred pricing on fees.
Multi-Family
Buying an apartment complex or entire condominium sounds daunting for most people. Many people can see themselves buying a house or even an investment property or two, but not many can ever see themselves buying a multi-family property.
If your goal is to make a smart investment that can generate long-term financial stability, consider purchasing multi-family real estate.
We simplify the process for you to invest in multi-family.
We will simplify and educate you on the whole investment process from start to finish, and you’ll see just how possible it really is to purchase multi-family real estate.