karma candy building

Now You Can Enter the Real Estate Market With Just $500, Thanks to BuyProperly

“BuyProperly provides you with the benefits of investing in cities with huge capital appreciation — without bearing the brunt of high real estate costs,” says BuyProperly CEO Khushboo Jha. “Our mission is to enable investors like you to grow your wealth through alternate asset classes.”

With BuyProperly, you can enter the real estate market for just $500. Use the promo code BEGIN@500 at BuyProperly.ca to get started.

What is BuyProperly?

Founded in Toronto in 2019, BuyProperly is a fractional real estate investing platform that lets you enter the real estate market through a quick and easy online transaction.

Through BuyProperly.ca, you can go online and complete a fractional real estate investment with expected returns of 20 to 40% in less than 7 minutes.

“There’s only one objective: to give the customer’s options to invest in good deals. That’s it,” Khushboo told Bay Street Bull.

“There’s only one objective: to give the customer’s options to invest in good deals.”

— Khushboo Jha
BuyProperly CEO

BuyProperly grows your wealth by identifying high yield properties with a cutting-edge proprietary AI model.

You’ll earn passive rental income alongside your long-term investments. When a property is sold, your investment principal is paid back to you, plus appreciation.

How does it work?

BuyProperly’s selection process has three stages:

  1. First, using an AI model that looks at 20 years of MLS data, BuyProperly finds assets listed for less than their fair market value. This is determined through 500 million data points, including information on nearby schools, banks, neighbourhood shops, local demographics and economic data.
  2. Next, BuyProperly’s investment committee reviews actual, up-to-date numbers and data to detect red flags not captured in the initial evaluation.
  3. Then, BuyProperly undertakes an in-person inspection. Only 1% of properties reviewed pass BuyProperly’s rigorous evaluation and appear on the BuyProplerly website for you to invest in.

BuyProperly rents the fractionally-owned properties to high-quality, AAA tenants, earning you passive income alongside your long-term investments. In a few simple steps, you can open up a free account and start investing!

emerald street drone
Properties like the Karma Candy Building at 356 Emerald St. N. in Hamilton — which you can invest in on BuyProperly — offer tremendous upside potential.

What Are BuyProperly’s Main Benefits?

    • No need to qualify for a mortgage
    • No downpayment required
    • None of the pain of managing a property or being a landlord
    • No closing costs
    • No need to find tenants or maintain the property
    • You’ll get a share of rent and gains on the property when it’s sold

Properties like the Karma Candy Building at 356 Emerald St. N. in Hamilton  — which you can invest in on BuyProperly — offer tremendous upside potential.

The complex is 280,000 sq. ft and comprises industrial and office units. The property also includes 118 and 65 Shaw St. Karma Candy is set to lease back the entire property. 

What are the experts saying?

“I’ve had the fortunate opportunity to be a part of BuyProperly and Khushboo’s journey since the beginning,” Saurabh Dutta, Partner at Nurture Ventures, said in a statement. “The market need for fractional real estate investing is clear through the customer growth BuyProperly has seen in only a short amount of time.”

“Khushboo and her team created the new hidden gem of real estate investing,” Margaux Perrin said on Bay Street Estate Bull.

“Khushboo and her team created the new hidden gem of real estate investing.”

Margaux Perrin, Bay Street Bull

Here’s How to Join BuyProperly and Enter the Real Estate Market for $500

It’s quick and easy for you to create an account at BuyProperly.ca. Then, use the promo code Begin@500 at BuyProperly.ca to get started with an investment of just $500.

Are you interested but have a few more questions? The folks at BuyProperly are happy to chat! It’s quick and easy to schedule a call with them. Just book a meeting and choose a time that suits you best!

Investing in a Volatile Market: Strategies to Succeed

It’s no secret that the current market is incredibly volatile. Prices are bouncing all over the place, and it can be hard to know what’s the right thing to do when it comes to investing in your future. 

In this blog post, we’ll go over some of the strategies you can use when investing in a volatile market, as well as some common mistakes people make during times like these.

So whether you’re a seasoned investor or just starting out, read on for some valuable insights!

what happens during periods of market volatility?

During periods of market volatility, prices tend to go up and down rapidly, making it hard to predict which way the market will move next. This can be a scary time for investors, as there is always the possibility of losing money. However, it’s important to remember that market volatility is normal and happens every few years.

When the stock market is volatile and inflation is on the rise, it can be difficult to know how to protect your investments. But there are some strategies you can use to help safeguard your portfolio.

Remember, there’s no “right” approach for everyone!  The best strategy for you will depend on your individual circumstances and goals. Be sure to speak with a financial advisor so you can figure out a plan that works for you.

the top 6 strategies investors can use during a period of market instability

Diversify your Portfolio

One of the best ways to protect your investments during a volatile market is to diversify your portfolio.

It means investing in a variety of different asset types, including stocks, bonds, and cash. This will help to mitigate your risk if one particular asset class starts to decline. It also means investing in a variety of geographies and investing in products.

As an example, your portfolio may include a combination of stocks from different sectors, such as healthcare, tech, and finance, bonds with different maturity dates, or different countries, like Canada, the US, and Europe.

Consider Alternative Investments 

Alternative investments can be a good way to diversify your portfolio and protect against inflation. Some examples include real estate trusts, commodities, and hedge funds.

Stay disciplined with your investing

It can be tempting to try to time the market during periods of volatility. Often, investors will veer off course in search of a great deal. However, this can be a recipe for disaster. The best way to approach investing during a volatile market is to stick to your investment plan and refrain from making impulsive decisions.  Investing longer periods of time, years rather than months helps even out the ups and downs of the market, and realize market growth over the longer term.

Review your investment mix

As market conditions change, so should your investment mix. Regularly reviewing and rebalancing your portfolio will help ensure that your investments are properly diversified and aligned with your goals. This means selling off assets that have increased in value and buying more of the assets that have lost value.

By doing this, you ensure that your portfolio stays diversified and aligned with your investment.

For example, if you’re close to retirement, you may want to adjust your portfolio to be more conservative. On the other hand, if you have a longer time horizon, you may be able to weather the ups and downs of the market and take on a bit more risk.

Be prepared for market corrections

A market correction is when the stock market experiences a sharp decline. These declines are often seen as a normal part of the market cycle. However, they can be difficult to stomach if you’re not prepared for them. Learning how to ride out a market correction will help you stay the course when your investments start to decline.

Try dollar-cost averaging

This involves investing a fixed amount of money into security or securities at regular intervals. By buying these securities over time, you’ll be able to average out the price and reduce your overall risk. This technique can help smooth out the ups and downs of the market.

With these tips, you (and your investment portfolio) will be better prepared to handle any periods of economic instability!

here are the 10 mistakes to avoid when investing during a period of market VOLATILITY

don't try to time the market

People often do this when they think the market is about to crash and they want to sell before it does. But no one can predict the future, so this strategy is often unsuccessful. If your timing is wrong, you could lose a lot of money or miss out on a rebound.

Don't invest everything at once

When the market is volatile, it’s often best to invest gradually over time. This way, you’ll be able to average out the price and reduce your overall risk.

Don't put all your eggs in one basket

As we mentioned above, diversification is key when the market is volatile. By investing in a variety of asset types and classes, you’ll be able to reduce your risk.

don't panic

It can be tempting to sell everything when the market is crashing, but this is often the worst thing you can do. If you sell too quickly, you’ll likely miss out on the rebound. Through diversification and smart portfolio management, you’ll be better prepared to avoid the dreaded “panic sell” mentality.

don't try to guess the bottom

A lot of people think they can predict when the market will hit rock bottom and start to rebound. But again, this is often unsuccessful. If you wait too long to buy, you could miss out on a lot of gains.

Don't get emotional about your investments

It’s important to remember that investments are just that – investments. They go up and down, and you need to be prepared for both. Getting too attached to your investments can cloud your judgement and lead to bad decisions.

don't forget about the fees

When the market is volatile, every penny counts. Be sure to check how much you’re paying in fees and expenses. These can eat into your returns and add up over time.

factor in your taxes

When you sell investments for a profit, you’ll likely owe capital gains taxes. Be sure to factor this in when making decisions about when to sell.

always stick to comfortable levels of risk

Just because the market is volatile doesn’t mean you should take on more risk than you’re comfortable with. Be sure to stay within your risk tolerance levels and don’t make impulsive decisions based on market fluctuations.

don't forget about your goals

When making investment decisions, it’s important to keep your long-term goals in mind. Don’t let the market dictate your decisions. Stick to your plan and stay the course.

The more you hold onto your long-term investment vision, the less likely you’ll be swayed by short-term market fluctuations.

Although it seems simple, keeping these strategies in mind will help you feel more secure as you invest and grow wealth for your future (especially when the market becomes unpredictable)!

Investing during periods of market volatility can be difficult, but there are some strategies you can use to help reduce your risk. By diversifying your investments, using dollar-cost averaging, and avoiding common mistakes, you’ll be in a better position to weather the storm.

By staying diversified, investing gradually, and focusing on your long-term goals, you’ll be well on your way to success.

Looking to add to your real estate investment strategy? Learn more about our latest opportunity with BuyProperly.

Alternative Investments: 10 New Ways to Grow Your Wealth

Are you looking to grow your wealth in new and innovative ways? If so, alternative investments may be the solution for you.

Alternative investments can include a wide range of options, such as fractional investing, venture capital, cryptocurrencies, and more. By diversifying your portfolio with alternative investments, you can help reduce your risk while also increasing your potential for earnings.

So, if you’re ready to explore some new investment opportunities, read on for more details. Not only are these investments rising in popularity and becoming part of the average investor’s portfolio, but you may be surprised at just how beneficial they can be!

10 ALTERNATIVE INVESTMENTS

fractional investing

Fractional investing is a relatively new investment opportunity that allows you to invest in assets such as real estate, art, and wine. With fractional investing, you don’t have to purchase an entire asset – you can buy a small slice of it instead.

This makes it a more affordable option for investors, and it also allows you to diversify your portfolio more easily.

Fractional investing is a great way to get started in the alternative investment market because it allows you to invest in assets that you wouldn’t normally be able to afford.

This can be a great option for people who are new to investing and want to get their feet wet.

Remember, several different platforms offer fractional investing, so be sure to do your research before choosing one.

venture capital

Venture capital is an alternative investment that involves investing in early-stage companies. This can be high-risk, but it also has the potential for high returns. This investment is great for people who are willing to take on a little more risk to potentially earn a higher return, and for anyone that loves being a part of new and innovative ideas.

If you’re interested in venture capital, you’ll need to research the companies you’re considering investing in and be comfortable with the risks involved.

private equity

Private equity is the purchase of ownership in a company that is not publicly traded. This investment is typically made by a group of investors, and the goal is to improve the company’s performance and then sell it or take it public.

Private equity investing is a great option for people who want to be more hands-on with their investments and who are comfortable with a higher level of risk. Although private equity can be high-risk, it can also offer high returns.

art

Investing in art can be a great way to add some diversity to your portfolio. Art can be a good investment for both short-term and long-term goals, and it can appreciate in value over time. Art is a great investment for people who have an eye for aesthetics and who enjoy collecting.

When investing in art, it’s important to do your research and purchase pieces that you believe will hold or increase in value.

wine

Now we come to a fun (yet often overlooked!) investment opportunity.

Like art, wine is another asset that can appreciate in value over time. Wine is a popular alternative investment because it can be enjoyed both now and in the future. Some bottles can generate returns of 10-12% per year.

However, it’s important to remember that wine is a volatile investment, so you should only invest what you’re comfortable with losing.

It’s important to do your research before investing in wine, as some types of wine are more likely to appreciate in value than others.

crypto

Cryptocurrencies are a new and exciting alternative investment. These digital currencies have seen a huge increase in value in recent years, and there is potential for even more growth in the future.

Cryptoassets, such as Bitcoin and Ethereum, have gained popularity in recent years as alternative investments. Cryptocurrencies are digital assets that use cryptography to secure their transactions and they can be bought and sold on exchanges and can also be used to purchase goods and services.

One of the biggest benefits of crypto is that there is no barrier to entry. You can get started with as little (or as much!) as you want.

Cryptocurrencies can be risky and extremely volatile, so it’s important to do your research before investing.

nfts

NFTs are a type of digital asset that is stored on a blockchain. They are unique and cannot be duplicated, which makes them valuable. NFTs can be used to represent a wide range of assets, such as digital art, land, or even cryptocurrencies.

Some well-known examples include CryptoKitties and Decentraland.

Wondering how profitable NFTs can be? In December 2021, a piece called “The Merge” sold for a whopping 91.8 million dollars!

NFTs have the potential to be incredibly lucrative, but they can also be a volatile and risky investment. It’s important to do your research before investing.

peer-to-peer lending

Peer-to-peer lending is a form of alternative lending that allows investors to lend money to borrowers without going through a traditional bank. This can be a good option for people who are looking for lower interest rates and don’t want to go through the hassle of applying for a loan.

Peer-to-peer lending also offers the potential for high returns, but it’s important to remember that it can be a risky investment.

reits

Real estate investment trusts, or REITs, are a type of alternative investment that allows you to invest in real estate without actually buying property. REITs are an excellent option for people who want to invest in real estate but don’t have the time or resources to do it themselves.

REITs are a diverse investment, and there are many different types to choose from yielding a wide variety of returns. To get started investing in REITs, you can purchase shares on a stock exchange.

private placements

Private placements are alternative investments that are not available to the general public. They are typically only offered to accredited investors, which means they come with a higher level of risk. Private placements can be a good way to get access to alternative investments that you might not otherwise have access to.

You can find private placements through a variety of sources, such as angel investors, venture capitalists, and private equity firms.

When it comes to alternative investments, there are many options to choose from. New and innovative companies, technologies, and ideas make it easier than ever to get involved in lucrative projects!

It’s important to do your research and understand the risks involved before investing. These alternative investments can be a great way to add diversity to your portfolio and grow your wealth.

If you’re interested in getting started with real estate investing for only $2500, learn more about our latest opportunity with BuyProperly for the Karma Candy Building here.

How to Invest in Real Estate with Little Money

options are still available

It’s true, you can absolutely purchase property with little or no money available. How? By using some of the following creative financing techniques.

Before we dive in, have you considered fractional real estate investing? This is a new, but very attainable way to invest in real estate.

Why alternative forms of real estate investing are becoming more popular

In recent years, alternative forms of real estate investing have become more popular with investors who are looking to buy a property with little or no money down. This is because traditional forms of financing, such as bank loans, are becoming harder to obtain.

With house prices rising across Canada and the United States, it’s becoming increasingly more difficult for people to “buy in” to the real estate market.

To purchase an investment property, most lenders require a 20-30% down payment. This could be anywhere from $20,000 up to $200,000 or more just for a single-family, residential property!

On top of land transfer taxes, surveys, inspections, and lawyer’s fees, these expenses are enough to push many investors out of the market.

Ongoing real estate expenses
Aside from your down payment and closing costs, investing in real estate also comes with monthly expenses. These include:
  • Insurance
  • Property taxes
  • Maintenance and repairs
  • Condo and management fees
  • Mortgage payments + interest
  • Rental and vacancy expenses
  • Ongoing property management

This means that investors need to set aside even more money to handle monthly expenses that come up. Is it possible to invest in real estate without having a large amount of capital available? AbsolutelyLet’s explore some of the most common ways to invest in real estate with little money.

Fractional investing

 

Fractional investing is a newer concept that’s gained popularity in recent years. It allows investors to pool their money together to purchase a share of an investment property.

This type of investment is often made through a real estate crowdfunding platform, which connects investors with developers who are looking to finance their projects.

With fractional investing, you can spread your investment amount over multiple properties, which also helps to mitigate risk and increase your diversification.

It’s also a great way to get started in real estate investing with little money as you can typically invest as little as $2500.

Seller financing

 

Another option for investors looking to buy a property with little money down is seller financing.

With this type of financing, the seller agrees to act as the bank and provide you with a mortgage. This could be in the form of an interest-only loan or a balloon payment loan.

Seller financing can be a great option for both buyers and sellers. The buyer gets to purchase the property with little money down and the seller gets their asking price for the property.

REITs

 

REITs, or real estate investment trusts, are another way to invest in real estate without having to put down a large amount of money. REITs are companies that own and manage income-producing properties, such as office buildings, shopping malls, apartments, and warehouses.

REITs are traded on stock exchanges and can be bought and sold just like any other stock. This makes them a liquid investment, which is ideal for investors who want to cash out quickly if needed.

Since REITs are traded on stock exchanges, they also offer the potential for growth through capital appreciation.

The downside of investing in REITs is that they’re subject to the ups and downs of the stock market. This means that your investment could lose value if the stock market declines. In addition, there are fees associated with owning a REIT and you often don’t have any transparency about the properties that you are investing in.

Lease-options

 

A lease option is another creative way to invest in real estate with little money down. With a lease option, you agree to lease a property from the owner for a set period.

The length of the lease will depend on the agreement between the buyer and seller, but it’s typically 1-5 years.
During the lease period, the buyer has the option to purchase the property, but they’re not obligated to do so.

Lease options are a great way to get into a property without having to put down a large amount of money. The downside is that you’re not guaranteed to purchase the property at the end of the lease period.

Wraparound mortgages

 

A wraparound mortgage is another financing option for investors looking to buy a property with little money down. With a wraparound mortgage, the buyer agrees to make payments on the existing loan and takes over responsibility for the property.

The buyer then charges their own tenant a higher rent amount and uses that money to make the monthly payments on the mortgage.

Wraparound mortgages can be a great way to get into a property with little money down, but they’re not without risk. If the tenant doesn’t pay their rent on time, the investor could be responsible for making the mortgage payments.

House hacking

 

House hacking is a strategy that allows investors to live in the property they’re purchasing while renting out the other rooms to tenants.

This is a great way to get started in real estate investing as it allows you to live in the property while someone else helps to pay the mortgage.

House hacking can be done with any type of property, but it’s most commonly done with multifamily properties, such as duplexes and triplexes.

The downside of house hacking is that it can be a lot of work. The investor is responsible for finding tenants, collecting rent, and maintaining the property.

Subject-to properties

 

A subject-to-property is a property that’s purchased with the existing mortgage in place.

With this type of purchase, the buyer takes over responsibility for making the monthly mortgage payments, but the seller remains on the hook for the loan.

Subject-to properties can be a great way to get into a property with little money down, but they’re not without risk. If the buyer stops making the mortgage payments, the property will go into foreclosure and the seller will be responsible for any deficiency.

Contract for deed

 

A contract for deed is an agreement between a buyer and seller that allows the buyer to purchase a property while making payments over time.

The buyer doesn’t take ownership of the property until the contract is paid in full.

Contracts for deeds are a great opportunity for buyers, but they’re not without risk. If the buyer stops making the payments, the seller can cancel the contract and evict the buyer from the property.

Joint ventures

 

A joint venture is an agreement between two or more people to work together on a specific project.

In the context of real estate investing, a joint venture is an agreement between two or more people to purchase a property and share in the profits.

Joint ventures are a great way to get into a property with little money down as they allow you to pool your resources with another person or group of people.

The downside of joint ventures is that they can be complex and there’s always the risk that one party will default on the agreement.

Crowdfunding

 

Crowdfunding is a way of raising money from a large group of people.

In the context of real estate investing, crowdfunding allows investors to pool their resources and invest in a property together. Although similar to a fractional model, crowdfunding focuses more on raising capital as opposed to investing in fractional shares of a property.

Crowdfunding platforms such as RealtyMogul and Fundrise make it easy for investors to get started in real estate with little money down.

The downside of crowdfunding is that it’s often a hands-off investment and you’re relying on the platform to manage the property.

Sweat equity

 

Sweat equity is the value of the work that you put into a property.

For example, if you purchase a fixer-upper and put in the time and effort to renovate it, your sweat equity would be the value of the renovations that you did.

Sweat equity can be a great way to get into a property with little money down since it opens up opportunities to get lower-priced properties with huge potential for appreciation. Keep in mind, if the property doesn’t appreciate in value or if the renovations take longer than expected, you could end up losing money on the deal.

Options

An option is a contract that gives the buyer the right, but not the obligation, to purchase a property at a set price within a certain period.

Options are a great way to get into a property with little money down as they allow you to control the property without having to put up all the cash for the purchase price.

The downside of options is that they can be complex and there’s always the risk that the property will decrease in value, leaving the buyer with an option that’s worth less than the purchase price.

There are several ways to get into real estate with little money down. 

The best option for you will depend on your individual circumstances. If you’re looking for a hands-off investment, crowdfunding may be the way to go. If you’re willing to put in the work, a subject-to-property or a fixer-upper may be the best option. Fractional investing is a great option for people who want to own a piece of real estate without the headaches that come along with maintenance and management.

Whatever route you decide to take, do your research and understand the risks involved.
Ready to get started? Take a look at our newest opportunity here and learn how you can get started for only $2,500.

What Is Collateral?

what is collateral?

Collateral is a term used to describe an asset that a lender accepts as security for a loan. Depending on the purpose of the loan, collateral can be real estate or other types of assets. For the lender, the collateral serves as a type of insurance. If the borrower defaults on their loan payments, the lender can seize and sell the collateral to recoup some or all of their losses.

how collateral works

A lender wants to ensure that you’ll be able to repay the loan before giving it to you. As a result, many of them require some level of protection. Collateral is a type of security that reduces the risk for lenders and ensures that the borrower fulfills their financial obligations. If the borrower defaults, then the lender has the option to seize the collateral and sell it, with the proceeds going toward the unpaid amount of the loan. To reclaim any leftover balance, the lender can take legal action against the borrower. 

As previously stated, collateral can take many forms. It usually refers to the type of loan; for example, a mortgage is secured by the residence, but a car loan is secured by the vehicle in issue. Other assets can be used to secure non-specific personal loans. For example, a secured credit card can require a cash deposit equal to the credit limit, such as $500 for a $500 credit limit.

Collateral-backed loans often have lower interest rates than unsecured loans. A lien is a legal right or claim on an asset to satisfy a debt that a lender has on the collateral of a borrower. The borrower has a powerful incentive to repay the loan on time because, if they don’t, they risk losing their home or other collateralized assets.

types of collateral

The type of loan frequently determines the nature of the collateral. Your home becomes the collateral when you take out a mortgage. If you take out a car loan, the car becomes the loan’s collateral. Cars, bank savings deposits, and investment accounts are all frequent forms of collateral that lenders accept. In most cases, retirement accounts are not accepted as collateral.

Future paychecks can also be used as security for very short-term loans, not just payday loans. Traditional banks provide such loans, which are typically for a few weeks. Even if you have a true emergency, you should read the fine print and compare rates before taking out one of these short-term loans.

COLLATERALIZED PERSONAL LOANS

A collateralized personal loan is a type of borrowing in which the borrower pledges an object of value as security for the loan. The collateral must be worth at least as much as the loan amount. If you’re looking for a secured personal loan, your best bet is to go with a financial institution with which you already do business, especially if your collateral is your savings account. If you already have a relationship with the bank, it will be more likely to approve the loan and provide you with a reasonable interest rate.

Examples of collateral loans

RESIDENTIAL MORTGAGES
A mortgage is a loan that uses your home as collateral. If a homeowner fails to pay their mortgage for more than 120 days, the loan company can initiate legal action, which could result in the lender taking possession of the home through foreclosure. The property might be sold to satisfy the remaining principal on the loan once it has been transferred to the lender.
HOME EQUITY LOANS
A home can also be used to secure a second mortgage or a home equity line of credit (HELOC). The loan amount will not exceed the available equity in this scenario. For example, if a home is worth $200,000 and the primary mortgage balance is $125,000, a second mortgage or HELOC will only be available for up to $75,000.
MARGIN TRADING
Margin trading also considers securitized loans. An investor uses the balance in his or her brokerage account as collateral to borrow money from a broker to gain shares. The loan increases the number of shares an investor can purchase, hence boosting the potential gains if the value of the shares rises. However, the risks are amplified as well. If the value of the shares drops, the broker will demand payment of the difference. If the borrower fails to cover the loss, the account acts as collateral.

While stock market trading may be dangerous, and real estate investing can be time-consuming, Buy Properly combines the best of both worlds. Buy Properly, a fractional real estate company, lets anyone with just $2,500 participate in real estate. This novel idea is similar to stock investment but without the hassles of real estate ownership. Interested? We knew you would be. Check out our latest opportunity – the Karma Candy Building – on Buy Properly (limited availability, don’t wait to invest!).

The Top 50 Real Estate Investment Books

If you’re a real estate investor (or thinking about becoming one) you know how important it is to equip yourself with knowledge- from webinars and courses to seminars and mentors, the options are endless!

But what you may not realize is that books can also be a powerful investment tool. In fact, there are plenty of great books out there on investing that can help you make smart choices with your money. To help you get started, here are the top 50 best real estate investment books, based on our experts’ recommendations. 

Whether you’re a seasoned investor or just starting to learn the ropes, these books will provide you with all the information you need to make smart decisions about where to put your money. 

So if you’re looking to boost your financial knowledge and invest smarter, be sure to check out this list of the best real estate investment books!

the top 50 best real estate investment books

 

1. “The Intelligent Investor” by Benjamin Graham: This book is considered the “bible” of value investing and is a must-read for anyone looking to get into this strategy.

2. “The Warren Buffett Way” by Robert G. Hagstrom: This book outlines Buffett’s unique investing philosophy and approach to building a successful portfolio.

3. “The Millionaire Real Estate Investor” by Gary Keller: This book is a comprehensive guide to real estate investing, covering everything from finding properties to financing and managing them.

4. “The Book on Rental Property Investing” by Brandon Turner: This book is a step-by-step guide to successful rental property investing, from finding the right property to screening tenants and managing your investment.

5. “The Real Estate Investor’s Guide to Flipping Houses” by J. Scott: This book provides a detailed, step-by-step guide to flipping houses for profit, from finding the right property to repairing and selling it.

6. “Build a Rental Property Empire” by Mark Ferguson: This book is a comprehensive guide to building a profitable rental property business, from finding the right properties to managing and scaling your business.

7. “The ABCs of Real Estate Investing” by Ken McElroy: This book is a great introduction to real estate investing, covering everything from the basics of property ownership to financing and taxation.

8. “The Real Estate Investor’s Bible” by William Bronchick: This book breaks down real estate investing, covering everything from finding properties to financing and closing deals.

9. “The Complete Guide to Flipping Properties” by Steve Chaderjian: This book is a step-by-step guide to flipping properties for profit, from finding the right property to repairing and selling it.

10. “The Real Estate Investor’s Guide to Financing” by Robert Shemin: This book is a comprehensive guide to financing real estate investments, from traditional loans to creative financing techniques.

11. “Investing in Real Estate” by Gary Eldred: This book is a great introduction to real estate investing, covering everything from the basics of property ownership to financing and taxation.

12. “The Real Estate Investor’s Guide to Tax Deeds and Foreclosures” by Jackie Beckham: This book is a great intoduction to investing in tax deeds and foreclosure properties, from finding the best deals to bidding at auction.

13. “The ABCs of Property Management” by Ken McElroy: This book is a great introduction to property management, covering everything from the basics of rentals and leases to marketing and maintaining your properties.

14. “The Real Estate Investor’s Guide to Leasing” by Joel Singer: This book is a comprehensive guide to leasing real estate properties, from Negotiating the best terms to managing the tenancy.

15. “The Real Estate Investor’s Guide to Business Plans” by Michael E. Gerber: This book covers everything you need to know about creating a business plan for your real estate investing business, from setting goals and objectives to outlining your marketing strategy.

16. “The Real Estate Investor’s Guide to Residential Properties” by John T. Reed: This book is a comprehensive guide to investing in residential properties, from finding the best deals to financing and managing your investment.

17. “The Real Estate Investor’s Guide to Commercial Properties” by John T. Reed: This book is all about investing in commercial properties, from office buildings to shopping centers.

18. “The Real Estate Investor’s Guide to Economic Indicators” by Sam Khater: This book is a comprehensive guide to understanding and using economic indicators to make better real estate investment decisions.

19. “The Real Estate Investor’s Guide to Market Research” by Steve cook: This book is a great guide to market research for real estate investors, from finding the best markets to invest in and analyzing demographic trends.

20. “The Real Estate Investor’s Guide to Property Management” by William Pivar: This book is an introduction to property management for real estate investors, from finding the best tenants to maintaining your properties.

21. “The Real Estate Investor’s Guide to Financing Options” by James A. Banks: This book is a guide to financing options for real estate investors including both traditional loans and private lenders.

22. “The Real Estate Investor’s Guide to Flipping Houses” by Suzanne Krauss: This book is a step-by-step guide to flipping houses for profit, from finding the right property to repairing and selling it.

23. “The Real Estate Investor’s Guide to Negotiating” by Dean Graziosi: This book is a comprehensive guide to negotiating real estate deals including buying properties at a discount to getting the best terms on financing.

24. “The Book on Rental Property Investing” by Brandon Turner: This book is a great introduction to the ins and outs of rental property investing, from finding the best deals to managing your properties.

25. “The Real Estate Investor’s Guide to Foreclosures” by Martin Welch: This book is a guide to investing in foreclosed properties including finding the best deals for repairing and selling them.

26. “The Real Estate Investor’s Guide to Short Sales” by Suzanne Krauss: This book is a great introduction to short-selling real estate properties, from finding the best deals to negotiating with lenders.

27. “The Real Estate Investor’s Guide to Fix and Flips” by Suzanne Krauss: This book is a step-by-step guide to fixing and flipping houses for profit and covers everything from finding the right property to repairing and selling it.

28. “The Real Estate Investor’s Guide to Rent-to-Own Properties” by Michael R. Lewis: This book is a great introduction to rent-to-own investing, from finding the best deals to negotiating with sellers.

29. “The Real Estate Investor’s Guide to Wholesaling” by Than Merrill: This book is a guide to wholesaling real estate properties including finding the best deals to negotiating with sellers.

30. “Long-Distance Real Estate Investing” by David Greene: This book is a wonderful introduction to investing in real estate from a distance, from finding the best deals to working with local property managers.

31. “The Real Estate Investor’s Guide to Incomplete Construction Projects” by James A. Banks: This book is a comprehensive guide to investing in incomplete construction projects, from finding the best deals to financing and managing your investment.

32. “The Real Estate Investor’s Guide to Bank-Owned Properties” by Jackie Beckham: This book is a great introduction to investing in bank-owned properties, from finding the best deals to negotiating with lenders.

54. “Build a Rental Property Empire” by Mark Ferguson: All about building a rental property empire including finding the best deals to managing your portfolio.

34. “The Real Estate Investor’s Guide to Pre-foreclosures” by Jackie Beckham: This book is an introduction to investing in pre-foreclosure properties, from finding the best deals to negotiating with sellers.

35. “The Real Estate Investor’s Guide to Online Marketing” by Than Merrill: This book is a comprehensive guide to online marketing for real estate investors, from creating a website to driving traffic and generating leads.

36. “Real Estate Riches” by Dolf de Roos: This book covers how to build wealth through real estate investing, from finding the best deals to creating a portfolio that will generate income.

37. “How to Be a Real Estate Investor” by Neil Weinberg:  This book is a great introduction to real estate investing for those who are new to the field. It includes information on finding the best deals and making your first investment.

38. “Investing in Real Estate” by Gary Wiltbank: A straightforward book about real estate investing, from finding the best deals to choosing the right properties.

39. “The Real Estate Investor’s Guide to Cold Calling” by Dean Graziosi: This book is a great introduction to good, old-fashioned cold calling for real estate investors.

40. “How to Be a Real Estate Investor” by Neil Weinberg:  This book is a great introduction to real estate investing for those who are new to the field, from finding the best deals to making your first investment.

41. “The Real Estate Investor’s Guide to FSBOs” by Jackie Beckham: This book is a guide to investing in for-sale-by-owner properties.

42. “Real Estate: The Ultimate Wealth Builder?” by John Trew:  This book covers the pros and cons of real estate investing, from finding the best deals to deciding if it’s the right investment for you.

43. “The Real Estate Investor’s Guide to Probates” by Jackie Beckham: This book is a great introduction to investing in probate properties including finding the best deals to negotiating with sellers.

44. “The Real Estate Investor’s Guide to Tax Deeds” by Suzanne Krauss: This book is a great introduction to investing in tax deed properties, from finding the best deals to bidding at auction.

45. “Making Money in Real Estate” by Matthew Puttock: This book is a great introduction to real estate investing, from finding the best deals to making money through different investment strategies.

46. “The Millionaire Real Estate Investor” by Gary Keller: This book is a journey into the mindset of a successful real estate investor outlining Keller’s own journey to becoming a millionaire through real estate investing.

47. “The Real Estate Investor’s Guide to Rent-to-Own Properties” by Jackie Beckham: This book is a great introduction to investing in rent-to-own properties, from finding the best deals to negotiating with sellers.

48. “The Real Estate Investor’s Guide to Lease Options” by Suzanne Krauss: This book is a great introduction to investing in lease option properties, from finding the best deals to negotiating with sellers.

49. “The Real Estate Investor’s Guide to Private Lenders” by Than Merrill: This book is a great introduction to raising private money for real estate investing, from finding the best deals to negotiating with lenders.

50. “The Real Estate Investor’s Guide to Business Plans” by Michael R. Lewis: This book is a guide to creating a business plan for your real estate investing business, from finding the best deals to negotiating with lenders.

These are just some of the best real estate investment books out there. If you’re looking to get started in real estate investing, or if you’re already an experienced investor, these books can help you learn everything you need to know about building a profitable portfolio.

So what are you waiting for? Start reading and get started on your real estate investing journey today!

Looking for a low-cost, high-return option to start your real estate journey? Check out our latest campaign with BuyProperly, the Karma Candy Building, where you can invest with as low as $2,500 today.

What is an Accredited Investor?

FIRST THINGS FIRST, WHY ACCREDITED INVESTING?

Accredited investing opens up a whole shiny new world of investing made available to you. These include private equity, venture capital, angel investing, and hedge funding.  

WHAT IS AN ACCREDITED INVESTOR?

The accredited investor is someone who has a special status so that they can have investments that are typically more high-risk. While this definition varies from country to country, it also varies from province to province. While there’s no formal process in Ontario, legislation requires that you meet specific criteria to participate in certain investments. This simply means you’ll need to be prepared to provide documentation proving you meet the criteria.

THE CRITERIA

 According to the Ontario Securities Commission (OSC), an accredited investor means you have a:

  • Net income before taxes of more than $200,000 in each of the two most recent calendar years and expected net income of more than $200,000 in the current calendar year.
  • Net income before taxes combined with a spouse of more than $300,000 in each of the two most recent calendar years and expected combined net income of more than $300,000 in the current calendar year.
  • Financial assets, alone or with a spouse, of at least $1 million before taxes but net of related liabilities
  • Financial assets include cash and bank deposits but not the value of a house.
  • Net assets, alone or with a spouse of at least $5 million. Net assets generally include all of your assets after subtracting your debt.

Contact the OSC’s Inquiries & Contact Centre to learn more about these rules.

Are you an accredited investor?

Plage Saint-Pierre Beach & Campground

Now you can invest in oceanfront real estate with as little as $1,000

Co-own a Nova Scotia beach destination through FrontFundr with Forge & Foster

Soaring real estate prices have locked many Canadians out of the market — and the wealth gains that come with ownership.

“For too long, real estate has been behind closed doors and not accessible to everyone,” says Joe Accardi, Partner & CEO of Forge & Foster. “We want to bring real estate to all Canadians, and FrontFundr is something that we’re really excited about.”

 

WHAT IS FRONTFUNDR?

FrontFundr is Canada’s leading online private markets investing platform and an exempt market dealer. 

Founded in Vancouver in 2013, the startup’s mission is to democratize the private sector investment model by offering companies an alternative to venture and private equity investing.

FrontFundr provides investors with the opportunity to invest in startups and growth companies. Their online platform allows all Canadians — from professionals to first-time investors —to support the ideas and initiatives they want to see succeed. 

 

 

The company has built up a community of over 34,000 users, run over 100 successful funding campaigns, and helped businesses raise more than $120 million so far.

“You might think you can only invest in Wealthsimple and public stocks, but you can also invest in early stage companies from the very beginning.”

“We’re missionaries to spread the word around equity crowdfunding, in general,” says Peter-Paul Van Hoeken, the founder and CEO of Silver Maple Ventures, FrontFundr’s parent company. “Creating awareness has been a huge job for our company in the last five years. You might think you can only invest in Wealthsimple and public stocks, but you can also invest in early stage companies from the very beginning.”

 

TELL ME ABOUT THE PROPERTY

The Plage Saint-Pierre Beach and Campground in Cheticamp, Nova Scotia, sits on 2,500 feet of private beach along one of the province’s warmest bays.

The nearby Cabot Cape Breton Golf Club is a popular destination. Visitors also enjoy hiking, whale watching, berry picking, stargazing, kayaking, cycling, dining on fresh seafood and more.

The popular destination boasts quaint cabins, RV rentals, and sites for tents and RVs. However, there is plenty of opportunity for improvement and expansion.

Situated at the gateway of the world-famous Cape Breton Highlands National Park and just off the Cabot Trail, this real estate investment property is packed with potential. And Forge & Foster is ready to unlock that potential through its unparalleled expertise in real estate management. 

“Never before have people had the opportunity to invest in spectacular real estate like this, starting at just $1,000.”

Joe Accardi, Partner and CEO at Forge & Foster Investment Management, said, “This is a very special opportunity for investors and we’re excited to offer it through our trusted partner, FrontFundr. Never before have people had the opportunity to invest in spectacular real estate like this, starting at just $1,000.”

WHY FRONTFUNDR? 

Here are the main benefits of investing in real estate through FrontFundr:

  • No fees
  • Pride of ownership
  • No need to qualify for a mortgage
  • No down payment required
  • None of the pain of managing a property
  • No closing costs
  • No need to find tenants or maintain the property
  • You’ll get a share of rent and gains on the property when it’s sold
  • You’ll receive ongoing oversight and support
  • Every investment project undergoes a detailed due diligence process

“Join FrontFundr. Take a look at their projects. You can invest in a project that you’re excited about,” says Accardi.

⭐⭐⭐⭐⭐
Great platform to invest in early stage enterprise
The investment process was straightforward and well explained.
Jean-Philippe Deblois, Trust Pilot

⭐⭐⭐⭐⭐
Great platform that is intuitive and easy to use!
Good access to detailed prospectus and pitch info. The digital signing process is simple and efficient. Private company investing has never been this easy or accessible.
Ken Smith, Trust Pilot

⭐⭐⭐⭐⭐
I feel fully confident that I am making sound investment decisions for myself. FrontFundr is an essential platform to democratize investing into early stage companies that have huge potential to add value.
— Leon Lie, Trust Pilot

 

WHAT ARE THE EXPERTS SAYING?

“Small investments in multiple projects add up over time. That makes it appealing for young people who want to get in the habit of investing.”

“I feel that real estate crowdfunding can be a viable tool for those who want to invest in real estate but are restricted due to a lack of money or credit,” says Mark Ting, CBC’s finance columnist. “Small investments in multiple projects add up over time. That makes it appealing for young people who want to get in the habit of investing.”

“A crowdfunded model comes with transparency and tangibility,” Tina Tehranchian, an Assante Capital Management Ltd. senior wealth adviser told the Globe and Mail. “You can drive by the property and boast to your friends that you have a share of ownership of this property.”

HOW DO I JOIN?

Sign up for FrontFundr now — there’s no fee to join!

Plage Saint-Pierre Beach & Campground is currently raising $595,000. Details of the offering can be found at frontfundr.com/forgeandfoster


Screen shot of FrontFundr website


To book a stay at Plage Saint-Pierre Beach & Campground, visit plagestpierre.com or contact plagesaintpierre@gmail.com or (902) 224-2112.

 

How to Build Wealth in Your 30s: Simple Steps to Become Financially Free

How to Build Wealth in Your 30s: Simple Steps to Become Financially Free

“Financial freedom” is becoming a buzzword nowadays, but what does it actually mean? When it comes to learning how to build wealth in your 30s, patience, persistence, and a solid plan are at the root of this new financial freedom movement.

Here are 6 simple tips to get you started on the road to wealth-building and financial independence.

Let’s dive in!

1. Make a budget (and live within your means)

The first step to building wealth in your 30s (or at any age for that matter!) is to make a budget and stick to it.

Many people never realize how much money they’re actually spending each month and how much could be saved by simply creating a budget and learning to consciously live within their means.

How should you create a budget? Here’s a simple guide to follow:

  • Calculate your total net income for both you and your partner: make sure to build your budget based on your take-home pay each month.
  • Calculate all your fixed expenses: this includes all the expenses that are predictable and stay consistent each month like your mortgage, rent, insurance, car payments, etc.
  • Calculate all your variable expenses: variable expenses include all of your discretionary spending and bills that change from month to month like groceries, dining out, utilities, and leisure activities.
  • Set aside money for debt repayment and wealth-building: Ideally, you should be able to set aside between 10-20% of your net income for debt repayment, savings, and investing.

If you don’t have any wiggle room in your budget, start looking for fixed and variable expenses you can cut back on. Here are some ideas to keep in mind:

– Are there any subscriptions you’re not using? Netflix, Amazon, and that old gym membership may seem like nothing, but those monthly subscriptions can really add up! Take a look at where you can cut back to save some extra money.

– Are you paying high interest rates on any loans? Credit card debt can cost thousands in interest charges, so it’s always best to prioritize those high-interest loans when repaying debt. If you’re struggling to make a dent in your loan, call the bank and ask what your options are for lowering the interest rate.

– Have you shopped around for new insurance rates lately? Car, home, and life insurance premiums can creep up without us ever noticing. If it’s been a while since you’ve looked into those payments, it may be worth shopping around to see if you can find a better deal.

– Is dining out eating up all your extra cash? After work, it can be tempting to grab a ready-made meal or takeout from a local restaurant. If you’re spending a lot of your monthly income at restaurants, look into cost-effective options like batch-cooking and meal prepping.

Learning how to build wealth in your 30s isn’t always about making more money. Sometimes the quickest and easiest way to find extra money is to take a good hard look at what you’re spending and find creative ways to save!

How much money should 30-year-olds have saved?

There’s no right or wrong answer for how much you should have saved by the time you turn 30 since it depends on your income, lifestyle, and the wealth-building opportunities available to you.

Most experts suggest saving 10-20% of your pre-tax income each month for retirement. According to Statistics Canada, as of 2020, the average salary for Canadians was $54,630. This means $455-$910 would be an ideal amount to put towards savings each month.

If you’re just getting started at 30 and you’re able to invest $900 each month in accounts or investments that yield a 5% annual return, you would have just over $980,000 by the time you’re ready to retire at 65!

2. Pay off debt as quickly as possible

Debt can rack up some serious interest payments that eat into your potential wealth-building opportunities. According to BNN Bloomberg, as of December 2020, Canadians now owe $1.71 for every dollar of disposable income they have to spend.

What’s the hidden cost of high-interest debt? Let’s say you have credit card debt totalling $10,000 at an 18% interest rate. If you decide to pay $200 towards this debt, it will take 94 months to pay off AND cost you $8,622 in interest.

If you decide to increase that payment to $400 per month, your credit card will be paid off in 32 months and you’ll pay only $2627 in interest.

That means you’d be saving $5,995 which could be put towards savings, retirement, or investments that will help grow your wealth over time.

If you’re battling with high-interest loans and credit card debt, one of the fastest ways to pay it off is by focusing on the highest-interest loan first (a.k.a. “The Avalanche Method”). This method for debt repayment frees up more cash month-over-month as you continue paying down those debts.

3. Work on your money mindset

So many have us have been conditioned to believe we can’t be wealthy or that only a select few people are lucky enough to be financially secure.

Although it’s important to acknowledge the privilege of being able to work full time, earn an income, and invest in various financial markets, it’s also important to realize that it’s never too late to start investing and growing your wealth.

The first thing you can do to get comfortable with money is to start talking about it. Open up a dialogue with family and friends about savings and retirement. Talk with coworkers about financial resources available through your employer. Find financial advisors and professionals who can teach you how to build wealth in your 30s and deconstruct some of the money myths you believe.

The quickest way to change your mindset about money is to surround yourself with people, conversations, and thoughts that are different from your own.

If you’re willing to challenge some of the long-held beliefs you have about money, you’ll find new and amazing opportunities to start building wealth and take steps towards becoming financially free.

4. Learn as much as you can about investing

Everyone knows the power of smart investing, but many people are too intimidated to take the first step to get started. After all, where should you put your money? Stocks? Bonds? Real estate?

The fastest way to grow your wealth is to get educated about investing so you can make informed financial decisions.

What can you do to learn?

  • Read books

One of the simplest ways to learn about investing is to go to the local library or book store to find some books on budgeting, saving, and investing. Here are some great books to start with:
– The Intelligent Investor: The Definitive Book on Value Investing
The Book on Rental Property Investing
– Investing in Your 20s & 30s For Dummies

  • Join supportive communities

Eager to dive in and talk about investing? Find local or online communities you can join to learn all about investing. If you don’t have any business clubs in your area, look online on Reddit or Facebook for supportive communities to join. Here at Forge & Foster Investment Management, you can engage with us on Twitter, Facebook, Instagram and LinkedIn.

  • Speak with financial professionals

Take advantage of all the professional wealth-building advice you can. Book an appointment with a financial advisor at your bank. Talk to your employer to ask about RRSP opportunities. Meet with an accountant to discuss ways you can find more money in your budget to invest.

  • Attend seminars and/or events

Going to local events is a fantastic way to learn valuable financial skills and network with like-minded investors. Not sure where to find events in your area? Simply head to Google and look for investment conferences, business groups, and meetups in your local area.

The more you educate yourself about money, the more opportunities you’ll find to build your wealth.

5. Diversify your portfolio

Many of us have heard of the saying “don’t put all your eggs in one basket” and this is absolutely true when it comes to building long-term wealth. Diversifying is one of the best ways to ensure you’re protecting your money.

What does diversification look like? Simply put, diversifying your portfolio means investing in a variety of different industries, sectors, and asset classes. This could include stocks, bonds, real estate, currencies, and more.

Diversification is a key component to building wealth because it allows you to spread your money around to mitigate risk and better predict expected growth.

While investing in something like Bitcoin may bring some temporary gains, it can also be extremely volatile. Balancing out those volatile investments with the long-term appreciation from rental properties, for example, would create a more stable portfolio.

BuyProperly helps new investors get started in real estate investing for as little as a $2,500 initial investment. Learn more at www.buyproperly.ca.

Speak with your financial advisor about different ways you can diversify your investments for maximum growth.

6. Remember to be patient

Building wealth doesn’t happen overnight: it takes time, dedication, and patience to see the best results.

One of the biggest secrets to wealth-building is the compounding effect that comes from reinvesting your money over time. The more returns you’re able to reinvest in the market, the higher your earnings will be! This snowball effect is what creates stable, long-term opportunities.

Don’t get discouraged if you can only invest a small amount of cash at the beginning, or if your investments don’t make you a millionaire overnight. The key is to make smart financial decisions that will set you up for long-term wealth and success.

If you follow these simple wealth-building tips, you’ll be one step closer to financial freedom.

Want to learn more about how to build wealth in your 30s?  BuyProperly is on a mission to make real estate investing accessible for everyone.

Why Invest in Real Estate: 7 Key Benefits to Know

Why Invest in Real Estate: 7 Key Benefits to Know

Investing in real estate can be an incredibly rewarding and lucrative endeavour, but if you’re like a lot of new investors, you may be wondering why you should be investing in real estate and what benefits it brings over other investment opportunities.

In addition to all the amazing benefits that come along with investing in real estate, there are some drawbacks you need to consider as well.

We’re going to cover the 7 top reasons why you should be investing in real estate (and a few reasons you may not want to jump in right away!)

Opportunity for Cash Flow 

Purchasing real estate to rent out for additional cash flow is becoming a very popular investment strategy, and it’s easy to see why.

Not only do rental properties give you the opportunity to generate additional cash flow month-over-month, but they allow you to build up a portfolio of long-term, stable assets and benefit from all that appreciation over the life of your investments.

There’s another big advantage to cash flow: it provides an opportunity for new real estate investors to “house hack”.

It’s no secret that real estate prices are going up and pushing a lot of new investors out of the market. When you decide to purchase a rental property, you can use the cash flow to fund your living expenses and pay your mortgage down faster to continue investing in more real estate!

Many newbie investors buy duplexes or houses with additional dwellings to make extra cash to fund their real estate business.

If you’re looking for a way to buy into the real estate market without having to spend hundreds of thousands of dollars, check out the properties at BuyProperly. They use a fractional ownership model that allows investors to start with as little as $2,500.

High Return on Investment

Another major benefit of real estate investing is the ability to make a high return from buying, renovating, and reselling (a.k.a. house flipping).

Although this requires significantly more upfront cash than rental properties, there’s huge potential for profit if you buy the right property.

Most flippers look for undervalued buildings in great neighbourhoods. These properties need work (and money!) to get them up to average market value, but, once renovated, the returns from these resales can happen relatively quickly.

Appreciation 

The wonderful thing about investing in real estate is that the value of the property is expected to appreciate. The principal amount that you invested in the property will grow over time and should be worth more than what you paid for it when you purchased it.

Real estate is a fantastic long-term investment because it’s almost always guaranteed to appreciate in value.

Investors patient enough to buy and hold their properties will benefit from predictable appreciation year-over-year. Depending on where you buy, you can expect annual appreciation rates anywhere from 2-8%.

In Canada, there’s been an average of 6.11% annual appreciation over the last 15 years.

Tax Benefits

Another major advantage of investing in real estate is all the tax benefits you’re eligible to take advantage of!

Many investors can write off costs associated with depreciation, mortgage interest, operating costs, repairs, and property tax. These incredible tax benefits are a fantastic way for investors to save and build wealth.

For example, if you are charging $2,000 rent per month and you incurred $1,500 in tax-deductible expenses per month, you will only be paying tax on that $500 profit per month.  That’s a large difference from paying taxes on $2,000 per month.

The profit that you make on your rental unit for the year is considered rental income and will be taxed accordingly.

It is vital that you keep good accounting records on your investment property. If you are claiming maintenance and repairs, for example, be sure to keep those receipts as proof. If you are to be audited by the government and can’t supply the proof of expenses in form of official receipts, chances are you will be disqualified from claiming those tax deductions.

The appreciation of the property will be assessed when you dispose of the property and capital tax will come into play.

You will be taxed on the capital gains that you earned on the property from when you invested and purchased the property to the day you sold it.  The difference between the sale price and the price you paid to purchase will be the capital gain, which will be taxed, but only in the year that you dispose of the property.

Low Volatility

Real estate isn’t subject to the same volatility as other kinds of investments. Unlike stock trading, the real estate market isn’t like to have the same massive overnight shifts.

For this reason, it’s an option for people who want something more stable and predictable. It’s a great addition to a more risk-averse portfolio, making it an all-around fantastic investment.

It’s important to note that real estate investment doesn’t come without risk. The US housing market crash of 2008 showed investors the importance of not over-leveraging and making smart investment decisions when growing their portfolios.

Leverage Your Investment

One of the most appealing aspects of real estate investment is the ability to leverage your assets. In a nutshell, leverage refers to “the use of debt (borrowed funds) to amplify returns from an investment or project”.

This means you can put 20%, 10%, or even 5% down and control an asset worth significantly more than that.

It also means you have the ability to borrow against your assets to continue investing. This creates a snowball effect and, when done effectively, can skyrocket the value of your investment portfolio.

Passive Income

This last point ties into the other benefits we’ve mentioned above. Rental income aside, real estate accumulates passive wealth through its inherent tax benefits and long-term appreciation.

In addition, the rental income you collect can be done with minimal involvement and effort. With the right property managers and rental team, the ROI on your investment becomes relatively passive.

At BuyProperly, they help investors start with as little as $2,500 and see projected annual (passive) returns of 10-40%! Find out how.

What are the cons of investing in real estate?

Real estate is a fantastic investment to add to your portfolio, but it doesn’t come without risk. Here are a few things all new investors should consider before jumping in.

Upfront costs

It’s no secret that investing in real estate the traditional way takes a substantial amount of money. If you’re buying a property to live in, expect a minimum of 5% down plus closing costs. Most investment properties and second homes may even require a 20% down payment to buy.

Real estate isn’t cheap, and it’s important for new investors to be prepared for the costs.

At BuyProperly, they leverage a fractional ownership model to allow investors to buy real estate for as little as $500. This means they can get started quickly without having to wait and save up huge lump sum deposits for investment properties.

Sourcing deals

In addition to financial costs, investing in real estate comes with a significant time cost when you take into account sourcing property deals

Unlike buying and trading stocks which can be done with the click of a mouse, property investment often requires more time, research, and preparation.

Not only do you need to find great deals, but you need to analyze them and gather the necessary paperwork to get the deal done. On top of this, if you don’t have a good team in place, managing your repairs, maintenance, and tenants can turn into an overwhelming process.

Fortunately, sourcing great deals doesn’t have to be complicated. At BuyProperly, for example, they’ve created an AI-powered platform that allows investors to view, buy, and sell real estate digitally (much like they would trade stocks).

Difficult to unload

As much as we love real estate for its security and predictable returns, it’s not the type of investment that can be bought and sold quickly. In fact, the highest returns are earned when investors are willing to buy and hold.

If you think you may need to free up cash quickly, or if you’re looking for an exceptionally quick profit, real estate may not be your main investment vehicle.

Conclusion

Investing in real estate has several major advantages. In addition to cash flow potential, you can also take advantage of steady appreciation, reduced volatility, and investor tax benefits.

It’s important to remember that real estate is a fantastic long-term investment, and not well suited to people who want instant returns. It’s a reliable, predictable asset with great cash flow and ROI potential.

Real estate is a great addition to any investor’s portfolio.

Interested in learning how you can get started in real estate investing for as little as $500? Learn more at www.buyproperly.ca

Are you an accredited investor?