REAL ESTATE: I Have No Money to Invest!
What you need to know about building equity

By Asif Khan

You're single and the thought of Real Estate Investing likely scares you, right? Well, you're not alone. Many seem to think that you need hefty bank balances. Wrong. All you need is to know how to play the game of Monopoly!

We've all played the game, purchased property, charged rent, and even sold property. So why do we think we need loads of cash to invest in real life? Well, in the board game, we needed the cash. In real life, all we need is equity to leverage and the banks throw money at us.

In today's day and age of reliance on credit, equity is what we lack. How do we build equity quickly? We can utilize many strategies to pay down your mortgage quicker and increase equity. It's not about paying more against your property, it's about paying smarter.

Take a quick peak at your mortgage amortization table. Your bank will provide you with this. The key to building equity faster is to try and decrease the number of payments required to pay off your mortgage. This in turn can save you thousands of dollars in interest, thereby putting money in your pocket while you build your equity.

Once you jump on the equity bandwagon, there will be no stopping you. The equity can then be leveraged to secure investment properties, just like in Monopoly. These investment properties will then generate income, providing you with the cash flow you need to fund your retirement.

It all starts with creating a plan to build your equity. I wish I knew this when I was playing the game Monopoly. I could have won a few more games and gained bragging rights over my lil' sister.

For more information on creating a real estate investment plan, email me at asif@asifkhan.ca.

Until next month...
Asif

Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

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