(3 Minute read) Let me ask the question again. Do you really and truly believe you are on the right path to wealth in retirement? Its important to be honest here and now. Most people want to bury their head in the sand and hope for the best. Believe me lots will, but not you right?
In Part 1 we discussed how unless you have a fat pension you are pretty much screwed at retirement. The government may be able to provide basic needs but thats about it. Your RRSP’s and mutual funds may give a little top up IF some jack wagon on Wall or Bay Street didn’t decide to bend the rules and cause a market crash months before you’re set to retire.
In Part 2 we’er going to look at a few action steps you can take today to start you on the path of retiring with passive income from cash flowing residential real estate.
Okay where do we start;
#1 If you are at the very beginning of the process or a first time home buyer, the best place to start is to buy a house with a basement suite or perhaps a duplex where you live in one side and rent the other. This will allow you to learn the ins and outs of home ownership while learning how to manage a tenant. The rental income will likely cover your mortgage payments so you can save for the next house or pay down the mortgage faster. From there you would graduate to buying a second house with a basement suite and keeping house #1 as a full time rental. Repeat until you have many rentals or until you can afford to buy a rental house”stock” off the shelf or market while never living in it.
#2 If you already own a house and are looking to buy your first rental then a good place to start would be using equity in your home to fund a rental. Another option would be to straight up save for the downpayment as well.
#3 For the more seasoned investor, using the equity in 1 or more revenue properties to come up with more down payments on even more properties is a great way to build a portfolio
#4 Fix and (flip to yourself). I recently found a rental property that was in need or repair. Instead of putting the standard 20% down, I rehabbed the property, had it re appraised and then re mortgaged for a higher amount. So in essence I bought it, fixed it and flipped it to myself by pulling the sweat equity out. By the time I was finished I only had 10% of my own money into the house vs the standard 20%. This would allow me to buy 2 properties for the same standard downpayment of 1. This is my favourite option. Combine this with option #3 and you’ll see your revenue portfolio double very quickly.
Obviously there are certain nuances to these sorts of transactions. You’ll want a full time Realtor who also owns and manages his own revenue portfolio to advise you. There is no lack of agents available today, but very few who can advice from experience to ensure all the various bases are covered.
So do you want to get started? Absolutely!! Contact info below.