Is your money working as hard as it should be?
Every year, Canadians are bombarded with ads during “RRSP season” as financial institutions vie for their share of annual RRSP contributions.
The idea for these institutions is usually the same… get as much money as possible under “management” and charge fees to the investor. This is great for the financial institution, but not so great for you as the investor.
There are 2 key problems with this approach:
- The fees eat into your investment returns, and when compounded until retirement age all of the fees leave you with far less than you would have otherwise
- Most professional “managers” aren’t even beating the general stock market index, so the value you get for these fees is questionable
If you want your money to be working hard for you, then you can’t leave it with people who charge you fees to underperform the general stock market index (or blindfolded monkeys throwing darts at a list of stocks).
Better investment options
Let’s be honest… stocks, bonds, mutual funds, and other securities are easy to invest in. You can put that sort of investing on autopilot with automatic payroll contributions. Most people are too busy to worry much about investing so the easy option is appealing.
Unfortunately, the path of least resistance rarely yields the best results. If you take the road less travelled you will learn that there are better investment options out there.
Hard assets work harder
Looking for better investments for myself, I found that hard assets keep my money working hardest. Real estate as an asset class has many benefits that are tough to beat and I’ve never come across anything else that can create wealth in such a consistent and predictable manner.
3 Ways to Start Investing in Real Estate
Getting started in real estate investing may seem like a daunting task for a new investor, but even if you partner with an experienced investor your returns can still outperform traditional investments. 3 easy ways to get started include:
- Buy & Hold Investing
Buying solid income producing rental properties in the right areas and holding onto them while tenants pay off your mortgage is a simple “bread and butter” type of real estate investing. - Rent to Own Investing
Buying a rental property and providing the tenant with an option to purchase that property is a slightly more advanced strategy that can do wonders for your cash flow and make real estate investing more passive. - Private Lending
Lending your funds out as 1st or 2nd mortgages can generate investment income from interest and lender fees. With some basic education on how this works you can earn great returns with relatively little risk.
Want a hand getting started?
If you’re interested in learning more about real estate investing, let’s chat. As a real estate investor since 2010 who has worked with dozens of investor, I am happy to share my experience to help you get started. I’m also a licensed mortgage broker and can help you determine your best course of action based on your current financial situation.