#110, 9780 Cambie Road, Richmond, V6X 1K4 Ph. 604-618-2128 Em. teresa@pointbinvestment.ca, Multiple Realty Richmond

Real Estate Investing = Tenants Finances your Future

by | Jun 20, 2014 | Blog, Real Estate Investing Tips

photo-2-3-150x150I came across a blog post from REIN (Real Estate Investment Network) a few months ago that I thought would help my readers understand why real estate investing is one of the most powerful investment vehicles in the market. Here is what REIN Property Analyst, Ray Reuter saids about investment real estate.

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Here’s some super simple math showing exactly why residential real estate is so cool.

Let’s say you go out and buy a single property TODAY for $300,000 (call it a suited house) and based on your conservative numbers, this property does nothing more than break even every month (and we’re buying in a stable, well-performing market based on the fundamentals).

No cash flow, just break even.

Then we’re going to assume that the market will stay flat forever. We both know the market will go up, it will go down, but assume that over the next 20 years those ups and downs equate to a FLAT market…it’s still worth $300,000 in 2033.

Still with me?

Good.

Now over that 20 years the property just breaks even, nothing more, nothing less. Sure we’ve been up some months, but we’ve had some repairs & maintenance, some vacancy…so, over those 20 years we just break even.

Some would call this a boring piece of real estate…even a ‘non-performing’ piece of real estate.

Call me crazy, but guess what, I call that a $900 a month savings plan that someone else (called my tenants) paid for .

That’s right, after 20 years of holding this ‘non-performing’ piece of real estate I’m left with the equivalent of someone giving me $900 every single month for 20 years…I call that one heck of a savings plan.

Tell me, do you put $900 away every month right now? Maybe…but that’s still YOUR money, money you had to work hard for!

I’m talking about $900/month that someone gave me for the last 20 years, and it’s mine…all from an unexciting, ‘non-performing’, piece of residential real estate.

Want the math?

OK. So I bought for $300,000, I put 20% down plus closing costs, so roughly $65,000.

In 2033, 20 years from now, I sell it for the exact same price…$300,000.

I get my $65,000 investment back.

I pay the Realtor and closing costs and I’m left with roughly $215,000.

That’s no cash flow, that’s no appreciation, that’s simply my tenants paying down my mortgage (both principle and interest) for the last 20 years and leaving me with a free and clear property.

So $215,000 divided by 20 years = $10,750 per year

Divide that by 12 months = $896/month…that someone else gave me.

Sure we can calculate opportunity cost for your $65,000 investment, but tell me, would you be even mildly happy if someone, some stranger, was contributing even $500 a month into a savings plan for YOU & YOUR FAMILY for the next 20 years????

That’s like someone else contributing to your RSP fund every month. You OK with that??

Of course!

Go ahead, poke holes in it if you want…

“Ray, no one gets a 20 year mortgage!” OK, do you think with some strategic planning you can have this property paid off after 20 years…especially if you bank on no cash flow? I say of course!

“Ray, what about a the roof, the furnace, etc???”

You’re absolutely right.

But let’s be serious, over the next 20 years do you think my rent is going to go up or down? Do you think my property will be worth more or less in 20 years buying in a fundamentally strong area?

Heck, even WHEN interest rates go up, guess what? So will my rent!

This is a no-brainer.

You can spend the next hour tearing this apart, telling people this Reuter guy is full of #$%…

OR maybe…just maybe, this makes sense.

Bottom line – real estate is simple…it’s just not easy!

And we’re not talking get rich quick, we’re not talking some ‘sexy’ investment strategy that 0.1% of investors ever pull off, just a simple old piece of real estate that you rent out and maintain for 20 years that YOU have 100% control over!

IT’S SIMPLE – I invest $65,000 to make $215,000 (before tax)…I’ll take that all day long, and that’s ONE PROPERTY.

Now imagine if you bought 10 properties just like that over the next few years (which isn’t rocket surgery).

It’s the power of leverage, the power of having control of your investments, and the power of being in the business of putting a roof over someone’s head (a business that ain’t going anywhere any time soon!!!)

Think about it, read this note a few times, this stuff works.

– Ray Reutor, Real Estate Investment Network

My Recommendation:  It’s never too late to start investing in real estate.  Start small with a condo and build up to a townhouse and then a single family home with multiple suites.  Real estate investing is the ONLY investment that can utilize tenants to finance your monthly income and your future retirement.  Start investing today.  You will be happy you started, and your family will thank you for it.

– Teresa Leung

I am a licensed realtor dedicated to securing you wealth through strategic real estate investment.  My mission is to help you achieve financial freedom by creating enough passive income to eventually replace your working income, so that you can spend more time doing what you love with the people you care about.  For more information, go to www.pointbinvestment.ca.

Want Real Estate Investing Success? Know Your WHY’s.

by | Jun 1, 2014 | Blog, Real Estate Investing Tips

Why-Image-236x300In my first blog post, “Journey to Liberty”, I expressed that my goal is to own real estate investment of 20 doors by year 2017. But WHY do I want to do this? Why does anyone want to do this?

As real estate investors or business owners, before we start anything, it’s always good to know our why. For most people, their why may be their children & family, for others it could be because they want to change their life circumstance for the better. When you know what your why is, it will propel you to work harder, faster, and smarter. When you feel uncomfortable trying new things to reach your goals, it’s this very WHY that pushes you through.

So what are my WHY’s?

Why #2: My 2 Young Daughters

I’ve been a single Mom for almost a decade. I’m not going to kid you and say that it’s easy. It’s not. Mentally and physically, it’s draining sometimes. But these are my favorite people in the world who have loved me from Day 1, and will continue to love me till the sweet end. What I would like is to have some money set aside to 1) go on vacation with my daughters every year which is a win for all of us, 2) help them purchase their car, and 3) contribute to the purchase of their first home to kick-start their adult lives. After that girls, don’t call me unless it’s Mother’s Day, my birthday or Christmas ok?

Why #1: Me, myself and I

Four years ago, during the Vancouver Olympics, I was in a much different place emotionally and financially than I am today.  Due to life’s circumstances, I ended up living in a Woman’s shelter for almost a month.  I did have a job that I liked, but I was living paycheque to paycheque.   It was in 2010 that I decided that I no longer wanted to live this way and  I knew that I was the only person who has the power to change my life.  I made the decisions to create wealth, to ensure I have balance in my life, to give back to my community, and to be happy.  I learned everything I could about real estate investment and passive income from successful investors, and I took action to acquire income properties in high growth areas.  I am thankful that I had such a low period in my life, as without it, I wouldn’t have such a huge WHY.

My recommendation. In order for you to achieve your real estate investing goals easier (or any goals), you must know WHY you have these goals and really give it some thought. Knowing your WHY’s makes it that much more meaningful, deserving, and fulfilling when you achieve it. Sure, it can be for your family, your dog, for mankind… but the Number One reason you want to achieve your goals should be for YOU. Who do you think the common denominator of your life is?  When on an airplane, they always instruct you in an event of an emergency to put the oxygen mask on yourself first before helping others. How would you be able to help your loved ones and to give back to the world if you don’t have the emotional and financial capacity to do so?

I am a licensed realtor dedicated to securing you wealth through strategic real estate investment.  My mission is to help you achieve financial freedom by creating enough passive income to eventually replace your working income, so that you can spend more time doing what you love with the people you care about.  For more information, go to www.pointbinvestment.ca.

Journey to Liberty

by | May 6, 2014 | Blog, For Inspiration, Success Principles

Vision-Board-300x172Let me introduce myself. My name is Teresa Leung and I am a Real Estate Investor and REALTOR®.  My job is to help people’s money work harder for them through investing in strategic income-producing properties in Western Canada.

Prior to doing this full-time, my real estate investing dream was well… just a dream. I am a single mom and my goal was to have the liberty to work less AND spend quality time with my young daughters.

I started my journey to liberty by creating a vision board of everything that I wanted in my life within five years time. Along with many other desires like getting better sleep and finding the right balance between work and play, I envision myself owning 20 doors. At that time, I only owned my principal residence and didn’t know how or where to start.

Napoleon Hill, best-selling Author of “Think and Grow Rich”, once said, “Desire is the starting point of all achievement, not a hope, not a wish, but a keen pulsating desire which transcends everything.”

With that in mind, I looked at my vision board every morning when I woke and every evening before retiring to bed. By undertaking this simple step, I have created in my mind the intention to attain the things I wanted. I then took action. I got out of my comfort zone, and started to surround myself with people who were already successfully doing what I wanted to do.

Two years later, I’ve acquired 8 doors, all producing a positive passive income. In addition to that, many of my other goals on my board started to materialize and I am almost halfway to my goal of 20 doors!

What did I learn from this experience?  It’s important to dream big, but know that a dream is just a dream without actions.

–          Teresa Leung

I am a licensed realtor dedicated to securing you wealth through strategic real estate investment.  My mission is to help you achieve financial freedom by creating enough passive income to eventually replace your working income, so that you can spend more time doing what you love with the people you care about.