welcome to another financially fabulous
episode I'm Limor and I've got to tell you
you do not have to be a financial
planner to be crushing it with your
finances
I'm not in today's episode i'll be
talking about the ways you can make
money in real estate
come on this will be fabulous
if you are looking into investing in
real estate which I am a huge fan of and
you know by now I invest in real estate
you should probably know that there's
four different ways that you can make
money for real estate
the first one is through that monthly
passive income
the second one is through appreciation
the third one is forced appreciation and
the fourth one is through equity
accumulation so let me talk about each of
these four so you understand exactly
what I mean
the first one is passive income or your
monthly income and when you're
considering investing in real estate
especially if this is your first
investment property but actually
important in all your investments not
just your first is the monthly income
because that's really the point if you
want to have money coming into your
account every single month while you've
got to make sure that you have enough
positive income so when you're taking a
look at investment property opportunity
what you're going to look at is how much
rent you can get and then take into
consideration all of your expenses so
elements of your mortgage, your taxes
your insurance your maintenance your
vacancy consideration and property
management etc etc etc and then you're
going to take a look and see how much
money you have left over the money
that's left over
it's called to passive income or your
cash flow or your monthly income
who cares what you call it as long as
the money arrives in your account every
single month but if when you're looking
at an investment property for the first
time and you take all the expensive into
consideration and there's not enough
money left over it does not make it a
good investment , i think having money left over
every month cash flow passive income
whatever you may call it is the most
important part when you're looking at
any potential investment the second type of
money that you can make is through appreciation
or market appreciation basically it's
when the market goes up for the value or
real estate goes up and as a result of
property is worth more today than it was
your go, two years ago 10 years ago
and hopefully in the future it will go up
as well now i want to be totally totally
clear that i do not have a crystal ball
and that markets do not always go up i'm
sure you are well aware of many
instances and all parts of the world
particularly we're familiar with what
happened down in the US is that
markets can actually go down so that's
why I think when you're looking to
invest in property the number one thing
you need to always have is money
every single month so that cash flow but
you can have appreciation so I don't
want you to discount it so way number
two that you can make money is through
appreciation way number three for the
third way that you can make money is
through forced appreciation now this is
one that people don't think of it as
much but if you have property, a
piece of real estate and you make some
improvements then the value of it goes up
and hopefully if you're smart about it
the amount of money that you spend on
improving the property is less than the
value that is increased by and so then
you actually create a that extra value so that if
you spent twenty thousand dollars on a
renovation and the value goes up by
20,000 you made no money right but if
you're smart about it and you focus on
elements that are maybe a bit more
cosmetic rather than a fixing the crack
in the foundation
although you should fix one if you got
well really if you are looking at a
property
and there's a crack in the foundation
don't buy it but the point being if you focus on
elements that are a bit more cosmetic
and add more value then you'll be able
to get the benefit from forced
appreciation the fourth way that you're
going to make money through real estate
is by just paying your mortgage every
month or let me say having your tenants
pay the rent and then pay the mortgage
every single month because then you've
got equity that's building up in the
property that you can either when you
sell the property take and use or
potentially refinance or put on a home
equity line of credit now I'm not trying
to throw a bunch of jargon at you but
essentially just by the very fact that
you're renting it out and that
the tenants are paying the rent every
single month and you're paying the
mortgage every single month then you
have additional equity that's
accumulated inside of
property you know real estate is a
really great avenue to get some passive
income as well as other forms of income
you only have 24 hours in a day and
you're probably already busting your
butt working a ton of hours i know i've
been in that situation and so with real
estate it's one way that you can start
to make a little bit more money without
having to take on another full-time or
part-time job that brings me to my
tweetable today the best way to build
real wealth is through real estate even
if you're just thinking about real
estate or if you haven't even purchased
your own first home
well especially if you haven't purchased
your first home it's actually something i
recommend potentially buy your first
investment property instead of your
first home here's the video they I did on this before
make sure you check it out but
regardless of where you are real estate
is something I think you should
seriously be considering even if your goal in your lifetime is just to have
one investment property it can make a
significant contribution and a
significant difference to your finances
both in the short term and in the long
term
so here is my challenge to you if you
don't have an investment property
why don't you start doing a little bit
of research doing a little bit of work
start in your fuzzy slippers in your
pajamas on one of the sites for finding a
real estate property even start on
kijiji or craigslist and see what
properties are out there that people are
looking to sell and then you can access
the free downloadable below with the
steps to purchase your first investment
property and I'd also love it if you could
leave a comment below letting me know
how your journey is going and what
you've discovered along the way you like
this video
did you learn something subscribe to my
channel it's free and then share it with
your friends if you want even more tips
n tricks to make your finances fun
exciting
come on over to www.Limor.Money
I've got all kinds of resources for you to
download remember i'm not here to change
who you are or how you live your life i've just got
strategies to make you even more
financially fabulous!
thank you so much for watching and I'll
catch you next time till then stay fabulous!
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