Things cost you what they cost, right? That much seems obvious. If you want to buy 1000 dollars worth of stock, you’re putting 1000 of your own dollars out of your pocket into that investment. There’s no getting around it- stocks, bonds, mutual funds, gold… whatever your investment is, you’re going to have to pay what the market asks of you.

Except, that’s not the case with real estate. When you purchase a property, a bank will typically finance between 75 to 85 percent of the cost. Your responsibility is only for the remaining percentage, which you put in as a down payment. And yet, 100 percent of the investment (the property) is under your control. 

A bank would laugh in your face if you asked them to cover 85 percent of the cost of a few ounces of gold. But if your investment is in real estate, they’re singing a different tune. If you have good credit and are able to make that 15 to 25 percent down payment, the bank will cover it. Why? Because banks rely on the underlying equity value of the real estate to cover the loan.

Banks love helping people invest in real estate, and that’s a fantastic thing for investors. With the bank financing the vast majority of the cost of the investment, investors can minimize the amount of money they have to put into the deal. From there on out, they see all the profits from the property. And remember, real estate has many profit centers! 

There are so many possibilities at every step of the way: from leverage and instant equity when you initially purchase the property, to the profits you make from renting out units, to the value the property gains, all the way out to the potential for reinvesting the money you’ve made from that property. That’s the great versatility of real estate, and it all begins with making that initial investment. 

The simple fact that a bank is willing to finance an enormous part of the cost of a real estate investment, while still allowing the investor to reap all the rewards, is part of the reason real estate is such a great choice. With the help of a bank, investors can minimize how much of their own money they have to spend while maximizing what they’re able to make in profit. You don’t have to dump all of your own money into the transaction- the bank can help make it happen. What’s not to love about that?

ABOUT July Ono.

JulyOno.com is a real estate investment company. We have been actively involved in the Lower Mainland area real estate investing for a number of years.  Our mission is to provide local housing and commercial workspace to quality tenants while at the same time providing an above average return on investment (R.O.I.) for our investor partners and for ourselves. It is truly a win-win-win way of investing!

July offers her investor partners hands-free investment opportunities. If you are interested to learn how to earn an above-average return on your investment, backed by a solid asset, and without the hassle of being a landlord, please contact July Ono.

For more information about July and her investment program, please call (604) 830-2438 and email her at july@julyono.com or visit https://julyono.com/

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