Other People's Money
Well here is the good news, do not let the lack of money stop you from taking the first steps to create and build your wealth in Real Estate. Real estate is the only investment that has produced most millionaires in Canada, and is the only investment where you can use other people’s money (OPM) to earn profit. The bank is willing to lend investors up to 80%-95% of the value of the property. The bank will not do that for the stock market or any other similar investment. A home loan is the easiest and cheapest loan to get compared to getting a car loan or a credit card.
If you have no money or if you have credit challenges, money is always available. If you do not qualify with the 8 major Canadian banks, you can try a B lender ,or a C lender,Other People's Money and even a hard money lender.They may charge you higher interest rate but the money is always available, not so for personal or car loans.
Other than simply using other people’s money, you can also use other people’s knowledge (OPK) to benefit yourself. You may have some money, but not the necessary information to invest it on your own. If this is the case, you can partner up with someone who has the knowledge to make the deal and split the profits with them. This is a win-win scenario, without each other that deal would not have happened. The opposite is also true, you may have invested in your real estate education but do not have the money or the credit to pursue investing. If you are in this situation, you can look for and find someone who has the money but not the knowledge. These people can be your family and friends, without whom the deal would not have happened.
You can also utilize other people’s experience and other people’s connections. For this reason, World Wealth Builders stresses on the fact that it is very important to network with like minded people. One method we suggest is to join a real estate investment networking club to meet new people, connect and build a relationship with them. You never know who you may meet through them and what possible deals could come up from those connections.
Now that you own the property, after 5-10 years, once you have paid off your mortgage, you will have built enough equity in the property so that you can borrow money from the bank against the property. The loan you receive in return can be used to acquire other properties and start building your wealth. Most people are afraid to try these methods due to the lack of the necessary education and general know-how. Once you know what you are doing, it is fun and gratifying. There are also a lot of tax loopholes, advantages and benefits.
World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeship which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. You can attend Real Estate Millionaire Apprenticeship online or in person. To find out more, please go to www.WorldWealthBuilders.com/live.html
The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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