Financial freedom is available to absolutely every one. Yes, even you. Why then do the majority of Canadians struggle with their finances? It seems that the more money we make, the more debt we are in. Society has taught us to work for our money. We work long and hard for money when we should be working smart and have our money work for us. We must first understand what financial freedom is before we can attempt to achieve it. Financial freedom is having the income necessary to cover all of your personal expenses without having to physically work for it. We call that passive income.
Believe it or not, to get from working for your money to having money work for you can be achieved with four easy steps. We have devised a simple proven system called 4 steps to financial peace that we would love to share with you. Learn more by attending our free, no obligation, no pressure workshops.
Here are two examples of how we have been able to help clients achieve their income properties:
Kevin and Rachel were referred to us 9 months ago and we met to discuss the possibility of them purchasing an income property. They already owned one that they had purchased 5 years prior. During our discussion, we realized that Kevin and Rachel had over $50,000 in credit card, car, student loan and other debts. These debts were in addition to the mortgage on their current property. That, along with the fact that they had no down payment saved for their next property, made it seem hopeless for them to buy another property. However, the value of their current property was $480,000, originally purchased for $320,000.
We had their property appraised by their financial institution for $465,000 (financial institutions almost always appraise properties at less than their true market value). We then helped Kevin and Rachel to increase the mortgage amount on their property by $100,000 and we used half of that money to pay off their existing debts and the other half as a down payment for the income property they then purchased. This new income property is now giving Rachel and Kevin an income of $410 per month, over and above all expenses, and they have a nice nest egg for when they choose to retire.
Also, about 3 years ago, we helped Maria to purchase a single family home in North Toronto and three months ago, Maria called us and expressed an interest to sell her current home and purchase an income property in downtown Toronto. She also mentioned that she had explained her desire to do this to a few different banks and they told her that, as a result of her being unemployed, it would not be possible for her to get a mortgage. We recommended a mortgage broker to Maria, whom she called and was offered an equity mortgage (meaning that the financial institution would give her a mortgage on her newly acquired property if she had a large enough down payment, regardless of whether or not she was employed).
As a result of some work Maria had done to her current home and after completing some additional small repairs we had recommended, we sold her North Toronto house for $120,000 more that what she paid for it and she was able to use that money for the down payment on the 4 unit income property we found for her downtown Toronto. The best part is that, since 3 of the 4 units are rented out, Maria is now only paying $430.00 per month after all of her expenses are paid on the new property.
For more information, please contact us at freedom@hipcityspace.com
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