BUYING TIME AS A REAL ESTATE INVESTOR
Wait, I thought we were buying properties as real estate investors?!?
In reality, when you buy an investment property, you are “spending” money, credit, time and energy. The strategy you use to buy and manage your properties determines how much of these 4 elements you “spend.”
Let’s say you’re 30 years old. You buy one investment property and pay it off over 25 years—while working at your day job. By the age of 55, you could have a pension AND a mortgage-free house that might cashflow $1500 after expenses. If you add that $1500 to your pension or retirement savings, do you have more than enough to retire early? Could you effectively “buy” fewer years doing your job. Remember, you have all that equity in the house: to sell, to re-finance, to provide legacy wealth to your kids—you decide.
Now let’s say that strategy seems a little boring to you. What if you only make one simple change: switch the mortgage payments to bi-weekly instead of monthly. Now, you will pay off the mortgage=bank approximately 2 years earlier. You might not be ready to retire at age 53, but now you have $1500 a month extra in income=that’s $18,000 a year! You could invest, you could travel, you could pay for university for one of your kids, …. That one simple change “bought you” 2 years where you’re not paying the bank! Once you have a few more properties, there are additional strategies you can use to pay down that mortgage faster and/or refinance for more properties.
Let’s switch gears now and think of time a little differently. Maybe you love the idea of investing in real estate, but you don’t love the idea of dealing with tenants. You have 2 main strategy options here. The first is to hire a property manager. They will take care of verifying new tenants, managing tenant issues, and managing property issues. And yes, they will charge you. However, spending approximately 10% of your rental income on a property manager could save you dozens of hours of time and energy each year. Your job then is to manage the property manager. What is your time worth?
The second strategy here involves a “working partner.” Who does this work for? Busy, hard-working people who want to invest in real estate BUT:
- Don’t want to spend hours educating themselves in this investment
- Don’t want to spend time learning the real estate market, and neighbourhoods and THEN travelling around with a real estate agent to find the “right” doors for their portfolio
- Don’t want to manage tenants
- Don’t want to answer the phone at all hours to manage the property(ies)
A “working partner” will do all of these things for you! You are “buying your time” by splitting the profits at the end of the deal. If you LOVE real estate investing, especially at this low point in the market cycle, don’t let your TIME (and energy) stop you. Planning for your financial future doesn’t need to compromise the quality of your life today–when you partner with dedicated real estate investors like us.
Connect with us at any time to learn more: FB@mtnedgedevelops FB@mtnedgerenovate or view our websites: mountainsedgedevelopments.com; mountainsedgerenovations.com
