Many of you know me that one of my passions is developing residual income.
Sure it is great to work at a job, or have your own business but I know that both of these require your time and your presence, in order to ‘earn your paycheque’.
But earning income passively, to me, was the way to go.
A few years ago, I got very interested in Real Estate Investing, thanks to one of my mentors, Robert Kiyosaki. He taught me about being an entrepreneur, the benefits of being in business for myself and how to use business and real estate as a means to create residual or passive income.
We only have so much time, whether it is in a day, a week, a month or even a year, and as our responsibilities and circumstances change (family, work, health, life), then so do our activities.
As a mother with two young children, I knew I wanted to be with them as much as possible when they were growing up, and having passive income through my home based residual business model and my real estate investments were two ways of ensuring that. I also knew that building assets for legacy purposes was part of my big vision.
I’ll also never forget what my parents used to say, “you can never go wrong with buying land/real estate” and that sure stuck with me.
So, how did I get started?
First of all, I have to say I was very strategic. Since we didn’t have any extra money to invest, I took my home based business profits and put part of them into down payments for income properties (single family units for tenants to rent them).
After 2 years, 3 properties were purchased and rented, that’s when I decided to take it to the next level by learning from Robert Kiyosaki, His Cashflow Quadrant totally resonated for me and very soon after I had 10 properties in 5 years.
Going from the E (employee) and S (self-employed) quadrant over to the B (business owner) and I (investor) quadrant was where I wanted to be. This would mean more time freedom and that is exactly what I strived for.
So, why do I love real estate investing, apart from the obvious one of developing a passive income stream?
Well, there are 4 main reasons.
A real estate investment can create cashflow for you. If you have purchased a property that can be rented out, for say farming, accommodation, business operation, or even parking, you should be able to develop income from it. And this income comes in on a monthly basis!
Once you rent the property, then the income you are receiving will address the mortgage and go towards paying it down. This means that you are in for the long haul if you want to be.
As the mortgage is being paid down by the tenant, then you start to build more equity in the property. As you build more equity, then this can be used to finance more real estate properties. And your real estate empire continues to grow!
Now you own an asset and this asset will appreciate in time, depending on the market in the area. Real estate is generally a much safer investment in the long run, and your asset will continue to grow in value.
There are many other reasons for being in real estate investing. If you are renting properties then you have your own business, you are taxed at a different rate, you can claim certain expenses, and so on.
Today, I have a real estate portfolio that has exceeded my wildest expectations, with properties all across Canada. And it all started with one rental property. I built equity in my properties that allowed me to purchase additional units and expand my overall net worth.
And I did it from home, while I was there with my kids!
So I have never regretted the decision to start investing in real estate. It has allowed me to meet the one thing that I really wanted – the time to spend with my children – by generating residual income.
I found that real estate investing creates cashflow assets which increase in value over time.
And I guess my legacy is working, even my kids who are in their 20s now, have started their own real estate investing.
What about you?
If you want to know more about developing your own portfolio, send me a message here.