GET RICH QUICK???
Got ya! Really, how many of us would click on the turtle picture and a title that says “slow and steady wins the race?” We are naturally drawn to the dream of the fast buck, the lottery win, 50% ROI in a year!
Today, one of my favourite mentors sent a video of Simon Sinek explaining relationships and leadership. You may have seen it (https://www.facebook.com/iamfearlesssoul/videos/2365639027093177/). He talks about how the little things, applied consistently, yield amazing results. Mr. Sinek also talks about going to the gym, working out hard, then coming home: no difference in that mirror. But if you do that for a month, a year, a decade: wow! Real estate investing is a long-game like that too.
Occasionally, we hear stories about people who make a quick buck in real estate: that’s called speculating. Those folks buy a property and bank mainly on appreciation over the short term. It’s a sugar rush, and it might even work for a while (talk to some of the Vancouverites that were able to do this). But eventually, the short term gains run out. We have recently heard stories of investors losing hundreds of thousands of dollars, on just one property!
Rather than a get rich quick plan, we love the time IN the market. We are super-excited about buying at this phase of Calgary’s market cycle; we currently receive about a dozen calls a week from people selling their homes below even today’s market values! We adore the concept of leverage with real estate: for every $1 we invest, we have access to $5 of real estate (using 20% down). Having our tenants pay off our mortgages over time is absolutely worth the effort of being property managers. And monthly cashflow might not look impressive at $300/month; however, over a year that is $3600, and over 10 years that is $36000. Now imagine if you had 10 properties with $300/month cashflow! Appreciation of our properties is never a guarantee: but when it happens, we get a sweet dessert! In summary, strategic investors in Calgary are buying below market value, using leverage, receiving the benefits of mortgage paydown and positive cashflow, and possibly setting themselves up for property appreciation in 5-10 years. It’s not as sexy as the “get rich quick” hook, but it sure does the job of creating financial freedom!
Simon Sinek’s idea is that great leadership, fitness/health and true love are about the little things that are applied consistently. We think the same concept applies to wealth building, especially through real estate. Will you have the courage, determination, and self-discipline to join us on our wealth-building journey?
