Real Estate Investment Blueprint – Part #1
“IF AN INVESTOR BOUGHT A HOUSE IN TORONTO IN 1985 FOR THE AVERAGE PRICE OF $109,094, WITH 20% DOWN, THEIR RETURN TODAY WOULD BE 2787%, OR AN 11.86% COMPOUNDED ANNUAL RATE OF RETURN. THAT IS WHY IT IS NO SURPRISE THAT MOST OF THE WEALTHIEST PEOPLE WE KNOW, MADE THEIR FORTUNES IN REAL ESTATE.” – Ryan Coyle, Co-founder of CONNECT Asset Management
I clearly remember sitting in the backseat of my mom’s car as a child, while she drove around picking up rent cheques from her tenants. It struck me even at a very young age how easy it is to own a house and have a complete stranger pay for it. I knew that one day I would do the same.
With the help of my uncle, I purchased my first property in 2002 at the age of 22. As I write this article at the age of 38, I am now the owner or co-owner of 31 properties. Collectively with my partner, we have invested tens of millions of dollars in real estate over the years and we have been very successful. Looking back, we have had our share of failures and disappointments, but it is in these failures that we have gained the most wisdom and have learned what pitfalls to avoid in the future. One of the mistakes that has stung us the most, is selling some of our real estate properties prematurely. There is no better way to build wealth in real estate than buying and holding it for the long-term.
In order to help our clients, build the kind of wealth and success that we have had in real estate, we have taken everything that we’ve learned in over 30 years of combined experience, to develop the CONNECT Investment Blueprint. None of this is rocket science; with discipline, focus and guidance, we can help you build serious wealth in real estate so that you can RETIRE RICH!
“ONE OF THE GREAT THINGS ABOUT INVESTING IN CONDOS WITH CONNECT ASSET MANAGEMENT, IS HAVING A HANDS-OFF INVESTMENT. WE MANAGE THE ENTIRE PROCESS FOR YOU AND WILL CONTINUE TO DO SO FOR THE LONG-TERM. INVESTING WITH CONNECT IS LIKE INVESTING IN AN INVESTMENT OFFERED BY YOUR BANK, BUT WITH MUCH BETTER RETURNS!” – Ryan Coyle, Co-founder of CONNECT Asset Management
ONLY BUY PRE-CONSTRUCTION CONDOS – HERE’S WHY
1. DEPOSIT – you only need 10-20% down and that is spread out over multiple payments over a period of 365 to 540 days. Your deposits are safe in an interest-bearing trust account.
2. LEVERAGE – you don’t need to take out a mortgage until final close, so for the 3 to 5 years before completion of the condo, you are leveraging the developer’s money. In theory, prices will rise significantly during that period, but when it is time to take out a mortgage and close on the property, you are still buying at the original price from 3-5 years ago. Therefore, you are purchasing the property at a BIG discount. In reality your deposit has grown into significant equity because of the price appreciation and leverage you received from the developer on the full value of the property.
3. RENTS – HAVE YOUR TENANT PAY YOUR MORTGAGE FOR YOU- by the time your condo is ready in 3 to 5 years, rents have gone up considerably. This puts you in a much better positive cash flow position, ensuring that you WILL have positive cash flow on day 1. Young professionals who make up most of the rental pool, want the convenience of condo living, while being within close proximity to work and amenities. By renting to the right tenant, in the right location, your tenant will pay off your entire mortgage for you.
“Mortgages are typically paid off over 25 to 30 years, but with the right property this can be as quick as 15 to 20 years with only 20% down. Let us help you find the right property and tenant”. Ryan Coyle, Co-founder of CONNECT Asset Management
4. INSTANT EQUITY – on account of the price appreciation and leverage from the developer over the 3 to 5 years, you will have SERIOUS EQUITY built into your property when you close. This gives you the opportunity to refinance your condo and take out the new equity to invest it into more property. Refinancing allows you to take equity out of your property tax free. You won’t have to pay taxes on this money until the property is sold, whether that is in 1 year or 100 years.
“Ask any real estate tycoon how they made their fortune in real estate and they will tell you that they used leverage and refinancing.” Ryan Coyle, Co-founder of CONNECT Asset Management
We developed the CONNECT Investment Blueprint in part because we are self-employed individuals. We knew that we would need to make smart investments now so that we wouldn’t have to worry about retirement and could ultimately RETIRE RICH! In the beginning we just wanted to accumulate a portfolio of 5 properties within 10-12 years and to have them be fully paid off within 20 to 25 years. Fortunately, we have had a lot of success in real estate investing over the years and we have been able to accumulate a much larger portfolio. Purchased with common sense and the help of the right professionals, real estate is one of the best investments a person can make.
Schedule an appointment with us today, so that we can help get you started on the path to RETIRING RICH. Connectassetmanagement.com
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