Have you heard of leverage before? It's the ability to do more with less, and it's not just for changing a tire. In fact, leverage is key to creating wealth and success in many areas of our lives, including real estate.
Now, I know the word "leverage" can be scary for some people, but don't worry - we use leverage in our everyday lives without even realizing it. For example, when you use your cell phone to work on the go, you're leveraging technology. When you hire a cleaning person or a mechanic to save your time, you're leveraging other people's time. And when you hire a professional to handle your finances or legal matters, you're leveraging their knowledge.
The same principle applies to real estate. If you own a home, you've already leveraged someone else's money, and you've probably done well off that investment. But why stop there? With real estate, for every dollar you have, someone is willing to give you four. That means you can buy a property worth five times more than what you could afford on your own.
Let's look at an example. John invests $100k in Stocks/RRSP/Mutual Funds, while Holly uses $100k as a down payment to buy a $500k investment property. Fifteen years later, assuming an annual rate of return of 5%, John's investment is worth $207k, while Holly's property is worth $1M. After paying off the $400k mortgage and the original $100k down payment, Holly has a profit of $700k.
It's clear that Holly is the winner here when it comes to leveraging her money. And you can be like Holly too, with the right strategy and guidance.
If you're interested in learning more about how to leverage real estate to create wealth, let's talk. As a mortgage broker, I can help you explore your options and find the best mortgage solution for your needs. Don't wait - apply for pre-approval today and take the first step towards building your wealth through real estate. www.portcreditmortgages.com and hit apply to start your leverage project today!
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