4 WAYS TO PROFIT WITH RENTAL PROPERTIES. Why I invest in REAL ESTATE VS THE STOCK MARKET.

Why should I choose real estate investing over the stock market (or any other form of investing)? In this video I'll break down the 4 ways my best rental properties make money in the Canadian Real Estate market and in other markets as well. Through POSITIVE CASH FLOW, MORTGAGE PAY DOWN, APPRECIATION AND FORCED APPRECIATION, my rental portfolio helps me get closer to my financial goals and towards financial freedom.
If you can make profit in 4 different ways, you have multiple revenue streams in your real estate investing business and the most profitable businesses in the world have multiple revenue streams. This strategy will take you from a beginner real estate investor to the next level.

DISCLAIMER:
WITH ANY AND ALL INVESTING YOU SHOULD ALWAYS OBTAIN INDEPENDENT LEGAL, TAXATION AND FINANCIAL ADVICE FROM A LICENSED PROFESSIONAL BEFORE INVESTING ANY OF YOUR OWN MONEY.

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The best properties in my portfolio make profit in 4 different ways. They are:

POSITIVE CASH FLOW
Positive cash flow is super simple. We just add up our monthly expenses and we subtract that from the revenue we bring in. There's a reason positive cash flow is number 1 because it's so important to the equation. I see a lot of people in NEGATIVE CASH FLOW which concerns me. Positive cash flow acts a a buffer and protects against rising interest rates, vacancies and various other things.
If we have positive cash flow in our equation we can survive when the real estate market goes down and we're not forced to sell at the bottom of the market.

MORTGAGE PAYDOWN
I'm not a big fan of owning properties outright and paying cash for them. I like to mortgage properties because I'd rather use the banks money instead of my own. Your mortgage payment is always broken down into two categories. Principal and Interest. Interest is the cost to the service the loan. In the case of a rental property, the tenants are paying down my mortgage for me. They're building equity for me and putting money in my pocket by paying down principal on my mortgage every month.

APPRECIATION
Appreciation is the change in the market value. What you buy a property for and what you sell it for later on. This is what gets most people excited about being in real estate because they think they can "get rich quick" by buying low and selling high. That's an incredibly difficult thing to do in real estate because even the most savvy investors don't know exactly when the market is going to change. Novice investors who are banking on the market always going up are called "speculators" and as an investor I don't speculate because the real estate market always goes up and down. Novice investors are always trying to time the market but the secret to being a real estate investor is not timing the market, it's time in the market. If you look at the most savvy investors out there, they are generally in real estate for the long term. The good news about real estate investing is that if you're willing to put in hard work and stay in the market for an extended period of time, there's a tremendous amount of money that can be made in real estate but we generally do it over the long term.

FORCED APPRECIATION/BUYING UNDER MARKET VALUE
The 4th way my best properties make profit is through forcing the appreciation through rehabbing or renovating a property. The other option is buying under market value properties. Under market value properties would be properties that you are able to buy under the appraised value of the property.
Forcing the value of a property through renovation is the most common way to force appreciation. By improving the property you can increase the value of the property. The most important thing to remember when it comes to rehabbing or renovating a property is that you only put money into the property that you know you're going to get out. You don't want to "overspend" on a renovation.

Real estate investing in Canada can be simple if you use these 4 strategies when looking for properties.

Видео 4 WAYS TO PROFIT WITH RENTAL PROPERTIES. Why I invest in REAL ESTATE VS THE STOCK MARKET. канала Darren Voros