Is your debt mindset holding you back?

Rethinking your debt

Most of us tend to think of debt as a looming cloud that is meant to make us fail. But shifting that mindset to approach debt as a tool could be your ticket to the growth you crave.

There are as many unique ways to make money in real estate as there are investors. But for most regular, everyday investors, there are 3 levels of growth.

Good. Better. Best.

GOOD: Owning your home

Owning your own home in this economy is a huge win! Just with this single purchase, you’ll be building stability and equity over time through mortgage paydown and appreciation.

  • You build foundational wealth through forced savings mechanics as you pay down principal over time.

  • When home values around you rise, you benefit from market appreciation gains without actively having to invest funds elsewhere.

  • But, your capacity to utilize leverage for further investing remains limited unless you tap into creative financing strategies to access more equity.

 

BETTER: Owning your home & a rental property

Expanding into rentals lets you compound returns by harnessing reliable passive income and magnified appreciation.

  • Owning a single rental property allows you to generate relatively passive cash flow by collecting rental income

  • You compound potential total returns because any equity gains from appreciation are magnified across a larger asset base when owning multiple properties.

  • But, carrying the costs of a negatively cash flowing rental property can really strain personal budgets if you don’t intentionally structure for efficiency.

 

BEST: Owning 2 properties & optimizing your financing

Restructuring your cash flow efficiently when you own your home and a rental unlocks exponential growth wealth while easing the burden of immediate profitability requirements.

  • Optimizing your financing through cash damming converts non-deductible mortgage interest into tax-deductible, good debt, easing your tax burden and increasing refunds.

  • You can accelerate available equity to buy additional properties faster as your primary mortgage disappears quicker thanks to applying tax and cost savings back in.

  • Creative leverage optimization strategies like this enable everyday, middle-class Canadians to build lasting rental property investment portfolios.

 

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Overcoming your analysis paralysis

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THE REAL ESTATE EXPLAINER: Geothermal Heating 101