News From Victoria Newstead

Investing in Real Estate
Every week I speak with people interested in investing in real estate. And, while every conversation is unique and tailored to the goals and aspirations of the person, there are some common themes that I think you will find interesting.
 
Why choose real estate to invest in?
 
Real estate is the original form of investment and has served as a primary means of attaining affluence. It comes second only to being born into wealth, and it’s by far the most popular investment option of the wealthy when it comes to wealth building and preservation. I’ll be sharing more about why I invest in real estate in future vlogs and articles.
 
How does it work?
 
It often starts with that first property. You need to buy-in. But before you do, you need to define your goals. Are you interested in investments backed by a tangible asset, real property? Are you looking for a consistent revenue stream? Do you want the opportunity to invest without the demands of being a landlord? Are you currently living in a rental property because the community you love to live in is beyond your price range but you don’t want to pass up the opportunity to buy-into a market you can afford and build a nest egg?

Ways to turn a profit with real estate

See if one or more of these strategies appeals to you. I could write a book on the subject, so I’ll limit it to the top tried and true ways to generate a lucrative return on your real estate investment:
Buy & Hold – This is a long term investment that is appealing to households and pure investors alike. As a household, it allows you to take up residence while building your equity as the property appreciates in value. You can borrow against this equity to capitalize on other investment opportunities and diversity your portfolio, or you may watch the property value appreciate until you are ready to sell, earn a profit, and upgrade to another home. Pure investors do the same, but they can also earn a monthly revenue stream by renting the property (see below) until the time comes to sell the property at a profit.
 
Single-Family Home Rentals – Next to flipping property, this is probably the most recognized strategy of real estate investing because it’s so simple and easy to understand. With this strategy, you buy a house and rent it out to a tenant. There are many pros to this kind of real estate investing. The biggest one is the sheer number of single-family homes on the market. Savvy investors have been through the various real estate cycles and take measured steps to develop growth focussed strategies, while also mitigating the effects of downturns in market cycle and fluctuations in rental supply and demand. For residential rental investments, long term wealth is created through appreciation of the property, with tenants paying down the mortgage, and through tax advantages.
 
Multi-Family Rentals – Traditionally, multi-family properties are two units or more. If you have a single-family home with a basement suite, it would be a multi-family property. The banks consider anything more than four units as a commercial residential property. The financing rules and regulations change for that class of investment.
 
The advantages of multi-family homes are many. First of all, you have a much better efficiency of scale. So instead of having one rental unit with its own roof, furnace, hot water system, etc., you have multiple rental units under one roof all sharing the same heating system, water system etc.  Due to greater efficiencies, your revenues and cashflow per unit tend to be higher, and your cost per unit is much lower than with single-family properties.
 
Passive Investment – If you are interested in investing and seeing lucrative returns, but don’t have the time or desire to invest in managing a property, you are what we call a passive investor. As a passive investor, your involvement includes providing the funds and / or credit, as well as doing your own due diligence to make sure that you are comfortable with the deal and the person with whom you are investing.
 
The real estate investor and their team of professionals are responsible for acquiring and managing the asset(s), including; finding the property, making the offer, engaging the power team to manage the transaction, increase the value, maintaining the property and communicating with investors.
 
Now you know there’s more than one way to invest in real estate with options that suit your unique needs and resources (budget and time). There’s only one catch. You need to take the first step! The great news, is that you’re halfway there. Simply click here to begin your no-obligation conversation with Victoria Newstead and the SIMPACT Real Estate Investment team.

All the best,

Victoria Newstead


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Quote of the Month 


– Grant Cardone


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A Laugh or Two For Good Measure!


Watch the Wash, Dad…

I decided to make myself useful and do a load of the family laundry.
When I took the clothes out of the machine, I discovered
to my dismay that I had also washed the watch my wife had given me while we were dating. “Don’t expect me to replace it,” she said later with an obvious lack of sympathy. By the time Father’s Day rolled around, however, she had relented and gave me a beautiful new watch. Attached was a note with this stipulation: “DRY CLEAN ONLY!”

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MSW?!

(Mom say what?!)
Daughter: I got an A in Chemistry.
Mom: WTF!
Daughter: Mom, what do you think WTF means?
Mom: Well That’s Fantastic.


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Hush, Little Actuary

An accountant is having a hard time sleeping and goes to see his doctor.
“Doctor, I just can’t get to sleep at night,” he says.
“Have you tried counting sheep?” asks the doctor.
“That’s the problem. I make a mistake and then spend
three hours trying to find it.”


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Helpful Life Hacks & Cartoon of The Month


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Leverage

One of the reasons I like real estate as an investment (as opposed to mutual funds, stocks, bonds, GIC’s, etc.) is because we can take advantage of LEVERAGE.  Let me give you an example.  Let’s say you wanted to buy $500,000 worth of gold.  How much would that cost you?  If you said $500K, you’re absolutely right! 

Now let’s say we want to buy a $500,000 duplex – how much will that cost us?  $500K?   Nope. We can buy that property with just a 20% downpayment ($100K) and the bank will finance the other 80% ($400K).  We use a little bit of money in order to own a LOT of real estate

Now here’s where it gets really exciting… Let’s say the property increases in value by 4%.  That would be a $20,000 increase in value.   $20K on a $500K investment is pretty good… However, because we LEVERAGED our money, we are actually making a $20,000 return on our $100,000 downpayment.  That’s a 20% return on our cash invested! 

That’s the POWER of LEVERAGE, and that’s one of the BIG benefits of investing in real estate vs. most other options out there.









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About Victoria Newstead

Victoria Newstead is a professional real estate entrepreneur and consultant.
Victoria’s current focus is long term multi-family properties.

If you would like to find out more about how to get an above average return on your money,
backed by a solid asset (real property), and without the hassle
of being a contractor and/or landlord – contact Victoria.

You can email her at Victoria@VictoriaNewstead.com
Visit her website www.VictoriaNewstead.com
Call or text 778-888-5412