Financing is one of the fastest ways to grow your real estate portfolio.
Let's keep the numbers simple, for math sake and to really have an impact. You have 1 million dollars cash to spend on real estate investments. Take a look at the following 2 options - which would you choose?
Option 1 – You buy $1 million house in cash which brings in $72k in gross rent/year.
Or
Option 2 – Divide your million into 5 separate $200k down payments, use financing for the rest, and buy 5 multiplexes bringing in $72k EACH.
Not everyone has a million dollars laying around. That’s not the point. Whether you have funds sitting as equity in your house, a HELOC on your property, or have savings sitting in the bank waiting for “the right moment” to get into the market – use your cash wisely!
This is not just for investment properties. Why pour all your cash into buying a house? If you have extra funds, put the smallest down payment possible (speak to a great mortgage broker), and keep your cash for improvements, other investments or that next down payment!
Let go of dated theories regarding mortgages + financing and use these tools to accelerate your growth. For more real estate tips, follow our instagram @buysellinvesttoronto
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