One of the great things about choosing to invest in rental properties over other forms of investments is that other people are going to be paying the bills for you! This is part of the real estate profit center we call “Cash Flow”.
It usually goes a little like this: An investor buys a property. They do this by providing a down payment from their own pocket, and securing the rest of the funds in the form of a mortgage from a bank. The investor is then able to rent out the property to renters, who will use it to live in, to work in, etc. The renters, by renting from the investor, actually give money to that investor. Thus, the investor is able to use the money they get from charging rent to pay back the mortgage they owe to the bank.
Think about how beautifully that’s set up! When you invest in rental properties, your bills can be covered by someone else. You don’t have to pull all the money out of your own pockets to cover your debts- you get paid for the public service you provide by renting out your properties to others who need them.
This is one investment where you shouldn’t have to worry about where your next payment is coming from. The rent payments cover the mortgage, and tenants also cover most utilities. This is the “Flow” in cash flow. The money moves around, and everyone gets something out of the deal.
The magic of rental properties doesn’t stop at simply helping investors break even, though! Properties often appreciate value as time goes on. The mortgage that’s owed to the bank, however, remains unchanged. Because of this, property investors can actually see their net worth increase over the course of time. Investors are able to increase rent prices to match the increased value of the property, and in this way can secure a good financial future for themselves and for their families.
Investing in rental properties is a smart choice for so many reasons. Wouldn’t it be nice to have an investment that other people are going to help you cover? Doesn’t it sound great to make an investment you don’t even have to pay for yourself? With real estate, that can be a reality.
Liezel Layacan is a real estate investment company. We have been actively involved in the GTA area real estate investing for a number of years. Our mission is to provide quality housing for quality tenants, while at the same time providing an above-average return on investment (R.O.I) for our investor partners and ourselves. It is truly a win-win-win way of investing!
Liezel offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without a hassle of being a landlord, please contact Liezel.